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Liverpool’s real estate market has been gaining significant attention, and 2024 is set to be an exciting year for property investors. The city offers a powerful combination of affordable property prices, high rental yields, and extensive regeneration projects, making it a prime location for those looking to maximise returns.
This blog will explore why Liverpool should be a top choice for property investors, covering property price trends, regeneration efforts, and the growing demand for housing.
Liverpool’s Rising Property Market
Liverpool's property market has shown consistent growth in recent years. Recent data reveals that house prices in Liverpool increased by 14.1% between 2016 and 2021, with this upward trend expected to continue. The city offers an average property price of £187,600, which is significantly lower than the UK average of £287,000, giving investors an affordable entry point into one of the UK's fastest-growing cities.
Key Drivers Behind Liverpool’s Property Boom:
- Regeneration Projects: Major developments like the £5.5 billion Liverpool Waters project are transforming the city, boosting property values as new homes, office spaces, and amenities are built.
- High Rental Demand: With an influx of professionals and students, Liverpool’s rental market is booming, delivering rental yields between 5.5% and 6.5%, which are among the highest in the UK.
- Population Growth: Liverpool has seen its population grow by 5.2% over the last decade, driving further demand for housing in both city-centre and suburban areas.
Regeneration Fueling Growth
Liverpool’s ongoing regeneration is a key factor behind its rising property market. Projects such as Liverpool Waters and the Knowledge Quarter are transforming large parts of the city into thriving hubs for business, education, and residential life.
- Liverpool Waters: This waterfront development is creating thousands of new homes, office spaces, and cultural venues. As the project continues, property values in the surrounding areas are expected to increase significantly.
- Knowledge Quarter: Located close to The University of Liverpool, this £2 billion regeneration initiative is fostering innovation and driving both employment and housing demand in the city.
These large-scale projects are not only revitalising the city's infrastructure but are also making Liverpool more attractive for investors seeking long-term capital growth.
Why Liverpool is Ideal for Buy-to-Let Investors
Liverpool continues to be one of the UK’s top cities for buy-to-let investments. The combination of affordable property prices and high rental yields ensures strong returns for investors.
According to JLL, Liverpool’s property prices are forecast to rise by 20% between 2023 and 2026, creating excellent opportunities for capital appreciation. Additionally, the city benefits from a steady demand for rental properties, fuelled by students attending Liverpool John Moores University, The University of Liverpool, and Liverpool Hope University.
Liverpool’s Rental Market Highlights:
- High rental yields of 5.5% to 6.5%, much higher than the UK average of 3.6%.
- Strong demand from over 70,000 students across Liverpool’s universities, creating consistent demand for rental accommodation.
- Affordable property prices make it easier for investors to enter the market with relatively low initial costs.
Affordable Property Prices for Investors
Despite its growth, Liverpool remains one of the most affordable cities for property investment in the UK. The average property price of £187,600 makes it an attractive choice compared to other major cities like London or Manchester.
For example, Portside Place, a new development by Integritas Property Group, offers high-quality apartments starting from £181,000. This development is strategically located near key transport links and city amenities, providing both lifestyle benefits and investment potential.
Strong Transport Links Enhance Investment Potential
Liverpool’s excellent transport infrastructure further boosts its appeal. The city is well-connected by road, rail, air, and ferry services, making commuting and travel convenient for both residents and visitors.
- Liverpool John Lennon Airport handles over five million passengers annually and connects the city to a wide range of European destinations.
- The Merseyrail network provides quick and easy access to the rest of the city and the wider North West region.
These transport links are critical for property investors, as they enhance the city's attractiveness to tenants, particularly professionals and students who value easy access to work and leisure.
What to Expect from Liverpool’s Property Market in 2024
Liverpool’s real estate market is expected to grow even further in 2024. With property prices forecast to rise by 20% over the next three years, early investors stand to benefit from both capital appreciation and strong rental income.
Key Takeaways:
- Affordability: Liverpool’s average property price of £187,600 makes it one of the most affordable major cities for investment in the UK.
- High rental yields: Liverpool offers net yields of 5.5% to 6.5%, making it a top choice for buy-to-let investors.
- Long-term growth: Property values are expected to rise by 20% between 2023 and 2026, driven by regeneration projects and rising demand.
- Regeneration: Major projects like Liverpool Waters and the Knowledge Quarter are boosting the city’s appeal to both investors and residents.
If you're interested in learning more about investment opportunities in Liverpool, consider looking into Portside Place, a development offering premium residences in a key part of the city.
