Authored by the expert who managed and guided the team behind the United Kingdom Property Pack
Everything you need to know before buying real estate is included in our United Kingdom Property Pack
Liverpool is one of the most attractive cities in England for foreign property investors looking to generate rental income, thanks to its affordable house prices and strong tenant demand from students and young professionals.
This guide covers everything you need to know about renting out a property in Liverpool as a foreigner, from legal requirements to realistic yield expectations.
We constantly update this blog post to reflect the latest data, regulations, and market conditions in Liverpool's rental market.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Liverpool.
Insights
- Liverpool's average gross rental yield sits around 5.7% in early 2026, which is notably higher than London's typical 3 to 4% and makes the city attractive for income-focused foreign investors.
- The Non-Resident Landlord Scheme means your letting agent will withhold 20% tax from your Liverpool rent unless you apply to HMRC to receive it gross.
- Liverpool's selective licensing scheme covers many wards, adding roughly £500 to £750 in licence fees over five years that remote landlords often forget to budget for.
- Student corridors like Smithdown Road and Wavertree consistently show some of Liverpool's highest yields, but also require more hands-on management due to annual tenant turnover.
- Short-term rentals in Liverpool average around 47% occupancy with nightly rates near £145, which can beat long-term rents only if you run it like a hospitality business.
- The Renters' Rights Act 2025 kicks in from May 2026, ending fixed-term tenancies and changing how rent increases work for Liverpool landlords.
- Liverpool's Baltic Triangle has seen heavy regeneration investment, making it a strong pick for young professional tenants willing to pay premium rents for modern, lifestyle-led apartments.
- A realistic net yield in Liverpool after management fees, licensing, and voids is closer to 3.5% to 4.5%, not the headline gross figure.
Can I legally rent out a property in Liverpool as a foreigner right now?
Can a foreigner own-and-rent a residential property in Liverpool in 2026?
As of early 2026, foreign individuals can legally buy and rent out residential property in Liverpool without any blanket restrictions on ownership, which makes England one of the more accessible markets for overseas landlords.
Most foreign investors in Liverpool hold property either in their personal name or through a UK limited company, with the company route becoming increasingly popular for tax planning purposes.
The main limitation foreigners face is not on ownership itself but on tax treatment, since non-resident landlords are subject to income tax on UK rental profits and must navigate the Non-Resident Landlord Scheme administered by HMRC.
If you're not a local, you might want to read our guide to foreign property ownership in Liverpool.
Do I need residency to rent out in Liverpool right now?
You do not need UK residency to rent out a Liverpool property, and many foreign investors successfully manage rentals remotely through a local letting agent.
While a UK tax identification number is not strictly required upfront, your letting agent or tenant will withhold basic rate tax (currently 20%) from your rent under the Non-Resident Landlord Scheme unless you apply to HMRC to receive rent gross.
A UK bank account is not legally required to collect rent in Liverpool, but most letting agents prefer paying into a UK account for smoother transactions and to avoid international transfer fees.
Managing a Liverpool rental entirely remotely is practically feasible when you use a full-management letting agent, though you will need to stay on top of Liverpool's selective licensing requirements in certain wards.
Thinking of buying real estate in Liverpool?
Acquiring property in a different country is a complex task. Don't fall into common traps – grab our guide and make better decisions.
What rental strategy makes the most money in Liverpool in 2026?
Is long-term renting more profitable than short-term in Liverpool in 2026?
As of early 2026, long-term renting in Liverpool typically offers more predictable and stable returns, while short-term rentals can generate higher gross income but come with significantly more effort and operating costs.
A well-managed long-term rental in Liverpool might bring in around £10,500 per year (roughly $13,200 or €12,300), whereas a well-managed short-term rental in a prime location could gross £15,000 to £20,000 ($18,900 to $25,200 or €17,600 to €23,500) before the higher costs eat into profits.
Short-term renting tends to outperform financially in Liverpool's city centre, waterfront areas, and near major event venues like Anfield, where weekend and event-driven demand creates pricing power.
What's the average gross rental yield in Liverpool in 2026?
As of early 2026, the average gross rental yield for residential property in Liverpool is approximately 5.7%, calculated using the city's average monthly rent of £873 and average house price of £185,000.
Across Liverpool's different neighborhoods, gross yields realistically range from around 4.5% in premium waterfront areas to 7% or higher in student-heavy corridors like Wavertree and Smithdown Road.
Studios and small one-bedroom apartments in Liverpool typically achieve the highest gross yields because their lower purchase prices relative to rent create a more favorable ratio.
By the way, we have much more granular data about rental yields in our property pack about Liverpool.
What's the realistic net rental yield after costs in Liverpool in 2026?
As of early 2026, the realistic net rental yield for a typical Liverpool residential property falls between 3.5% and 4.5% after accounting for all normal running costs.
Most Liverpool landlords experience net yields in the 3% to 5% range depending on their management approach, property condition, and whether the property sits in a selective licensing area.
The three main cost categories that reduce gross to net yield specifically in Liverpool are letting agent and management fees (typically 10% to 15% of rent), selective licensing compliance costs in designated wards, and the void periods between student tenancies that are common in areas like Smithdown Road.
You might want to check our latest analysis about gross and net rental yields in Liverpool.
What monthly rent can I get in Liverpool in 2026?
As of early 2026, typical monthly rents in Liverpool are approximately £700 ($880 or €820) for a studio, £875 ($1,100 or €1,025) for a one-bedroom, and £1,100 ($1,385 or €1,290) for a two-bedroom apartment.
A realistic entry-level monthly rent for a decent studio in Liverpool ranges from £600 to £750 ($755 to $945 or €700 to €880), depending on location and condition.
For a typical one-bedroom apartment in Liverpool, expect mid-range monthly rents between £800 and £950 ($1,010 to $1,195 or €940 to €1,115).
A standard two-bedroom apartment in Liverpool commands mid-to-high rents of £1,000 to £1,250 ($1,260 to $1,575 or €1,175 to €1,465), with city centre and waterfront locations at the top of that range.
If you want to know more about this topic, you can read our guide about rents and rental incomes in Liverpool.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in the UK versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you’re planning to invest there.
What are the real numbers I should budget for renting out in Liverpool in 2026?
What's the total "all-in" monthly cost to hold a rental in Liverpool in 2026?
As of early 2026, the total all-in monthly cost to hold a typical Liverpool rental property (excluding mortgage) runs approximately £220 to £305 ($275 to $385 or €260 to €360) for a house and £260 to £390 ($325 to $490 or €305 to €455) for a flat with service charges.
A realistic low-to-high monthly cost range for most standard Liverpool rentals is £200 to £400 ($250 to $500 or €235 to €470), representing roughly 25% to 40% of gross monthly rent.
The single largest cost contributor for Liverpool landlords specifically is often the combination of letting agent fees and selective licensing compliance, which together can account for 15% to 20% of rent in designated licensing wards.
You want to go into more details? Check our list of property taxes and fees you have to pay when buying a property in Liverpool.
What's the typical vacancy rate in Liverpool in 2026?
As of early 2026, the typical vacancy rate for rental properties in Liverpool is around 8%, which translates to roughly three to five weeks of vacancy per year for a well-priced property.
Liverpool landlords should realistically budget for about one month of vacancy per year because tenant turnover, reference checks, and minor repairs between tenancies inevitably create gaps.
The main factor causing vacancy rates to vary across Liverpool neighborhoods is tenant type: student areas like Smithdown Road see predictable summer voids, while city centre professional rentals tend to have more year-round demand.
The highest tenant turnover and vacancy in Liverpool typically occurs between June and September, driven by the academic calendar when student tenants move out and new ones have not yet arrived.
We have a whole part covering the best rental strategies in our pack about buying a property in Liverpool.
Get fresh and reliable information about the market in Liverpool
Don't base significant investment decisions on outdated data. Get updated and accurate information with our guide.
Where do rentals perform best in Liverpool in 2026?
Which neighborhoods have the highest long-term demand in Liverpool in 2026?
As of early 2026, the three Liverpool neighborhoods with the highest overall long-term rental demand are Liverpool City Centre (L1/L2), the Baltic Triangle, and Smithdown Road, each driven by distinct tenant groups.
Families seeking long-term rentals in Liverpool concentrate in Allerton, Mossley Hill, and Woolton, where good schools, green spaces, and larger properties create stable, low-turnover tenancies.
Student rental demand in Liverpool is strongest along the Smithdown Road corridor, in Wavertree, and in parts of Allerton and Mossley Hill near the University of Liverpool's student village.
Expats and international professionals in Liverpool gravitate toward the City Centre, Waterfront, and Baltic Triangle, plus the Knowledge Quarter area near the hospitals and university innovation district.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Liverpool.
Which neighborhoods have the best yield in Liverpool in 2026?
As of early 2026, the three Liverpool neighborhoods offering the best rental yields are Wavertree, the Smithdown Road corridor, and edge-of-centre areas like Kensington, where lower purchase prices meet strong tenant demand.
Gross rental yields in these top-yielding Liverpool neighborhoods typically range from 6% to 8%, compared to the citywide average of around 5.7%.
The main characteristic allowing these neighborhoods to achieve higher yields is their proximity to universities and city centre jobs combined with relatively affordable housing stock that has not yet seen the price inflation of waterfront or Baltic Triangle properties.
We cover a lot of neighborhoods and provide a lot of updated data in our pack about real estate in Liverpool.
Where do tenants pay the highest rents in Liverpool in 2026?
As of early 2026, the three Liverpool neighborhoods where tenants pay the highest rents are Liverpool City Centre (L1/L2), the Waterfront and Albert Dock area, and the Baltic Triangle.
In these premium Liverpool neighborhoods, typical monthly rents for a standard one or two-bedroom apartment range from £1,100 to £1,500 ($1,385 to $1,890 or €1,290 to €1,760).
The main characteristic driving these premium rents is not just location but the combination of modern, high-specification finishes with lifestyle amenities like concierge services, rooftop terraces, and walkable access to restaurants and nightlife.
The tenant profile in these highest-rent Liverpool neighborhoods typically consists of young professionals aged 25 to 40 working in the city's growing digital, creative, and financial services sectors, plus corporate relocations and medical professionals at nearby hospitals.
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of the UK. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
What do tenants actually want in Liverpool in 2026?
What features increase rent the most in Liverpool in 2026?
As of early 2026, the three property features that increase monthly rent the most in Liverpool are a central walkable location within 15 minutes of the city centre, a modern kitchen and bathroom, and reliable high-speed internet with dedicated workspace.
A central, walkable location in Liverpool can add a rent premium of 15% to 25% compared to similar properties in outer suburbs, making it the single most valuable feature for maximizing rental income.
One commonly overrated feature that Liverpool landlords invest in but tenants do not pay much extra for is premium garden landscaping, since many Liverpool renters (especially students and young professionals) prioritize indoor living space over outdoor areas.
An affordable upgrade that provides strong return on investment for Liverpool landlords is installing a modern, efficient boiler and improving insulation, which attracts tenants concerned about energy bills and can justify a modest rent increase.
Do furnished rentals rent faster in Liverpool in 2026?
As of early 2026, furnished apartments in Liverpool typically rent one to two weeks faster than unfurnished ones, particularly in student areas like Smithdown Road and in the city centre where tenants want a ready-to-move-in solution.
Furnished rentals in Liverpool command a rent premium of roughly 5% to 15% over unfurnished equivalents, though this premium only holds when the furniture is modern and coordinated rather than mismatched or worn.
Get to know the market before you buy a property in Liverpool
Better information leads to better decisions. Get all the data you need before investing a large amount of money. Download our guide.
How regulated is long-term renting in Liverpool right now?
Can I freely set rent prices in Liverpool right now?
In Liverpool and across England, landlords currently have full freedom to set the initial rent at whatever level the market will bear when signing a new tenancy agreement.
Rent increases during an existing tenancy are regulated through the Section 13 notice process, which limits increases to once per year with proper notice, though the Renters' Rights Act 2025 (taking effect from May 2026) will further restrict how and when landlords can raise rents.
What's the standard lease length in Liverpool right now?
The standard lease length for residential rentals in Liverpool is typically a 6 or 12-month fixed term that then converts to a rolling periodic tenancy, though the Renters' Rights Act 2025 will reshape this from May 2026 by moving all tenancies to periodic arrangements.
Liverpool landlords can legally require a security deposit of up to five weeks' rent if the annual rent is under £50,000 (roughly £840 or $1,060 or €985 for a typical Liverpool property), or up to six weeks' rent if annual rent exceeds £50,000.
Deposits in England must be protected in a government-approved tenancy deposit scheme within 30 days, and landlords must return the deposit within 10 days of agreeing how much the tenant gets back, minus any legitimate deductions for damage or unpaid rent.
We made this infographic to show you how property prices in the UK compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
How does short-term renting really work in Liverpool in 2026?
Is Airbnb legal in Liverpool right now?
Airbnb-style short-term rentals are legal in Liverpool, but legality depends on your specific property's planning use, any lease or freeholder restrictions, and whether your property falls within a selective licensing area.
Liverpool does not currently require a specific short-term rental licence, but properties in selective licensing wards may still need a landlord licence, and you should check with Liverpool City Council whether your intended use triggers any requirements.
England does not currently impose a national annual night limit on short-term rentals outside London, so Liverpool hosts can technically rent year-round, though building rules and lease covenants may impose their own restrictions.
The most common consequence for operating a non-compliant short-term rental in Liverpool includes fines from the council for licensing breaches, potential legal action from freeholders or management companies, and loss of insurance coverage if you have not disclosed the rental use.
By the way, we also have a blog article detailing whether owning an Airbnb rental is profitable in Liverpool.
What's the average short-term occupancy in Liverpool in 2026?
As of early 2026, the average annual occupancy rate for short-term rentals in Liverpool is approximately 47%, meaning properties are booked roughly half the available nights.
Most Liverpool short-term rentals experience occupancy rates ranging from 35% for poorly optimized listings to 65% or higher for well-located, professionally managed properties with strong reviews.
The highest occupancy rates for Liverpool short-term rentals occur during football match weekends (especially Liverpool FC home games), summer months (June to August), and around major events like music festivals and the Grand National at Aintree.
The lowest occupancy rates in Liverpool typically fall in January and February, when tourism slows, students are away, and there are fewer major events to drive demand.
Finally, please note that you can find much more granular data about this topic in our property pack about Liverpool.
What's the average nightly rate in Liverpool in 2026?
As of early 2026, the average nightly rate for short-term rentals in Liverpool is approximately £145 ($183 or €170), though this varies significantly by property type, location, and time of year.
Realistic nightly rates in Liverpool range from about £70 ($88 or €82) for basic studios in outer areas to £250 or more ($315 or €293) for premium city centre or waterfront apartments that sleep four or more guests.
The typical nightly rate difference between peak season (football weekends, summer, major events) and off-season (January, February) in Liverpool can be £50 to £100 ($63 to $126 or €59 to €117), with savvy hosts using dynamic pricing to capture this variation.
Is short-term rental supply saturated in Liverpool in 2026?
As of early 2026, Liverpool's short-term rental market is competitive but not fully saturated, with the 47% average occupancy rate suggesting demand exists but is not overwhelming the current supply.
The number of active short-term rental listings in Liverpool has grown significantly over the past few years, with AirDNA tracking over 7,000 listings in the greater Liverpool area.
The most oversaturated neighborhoods for short-term rentals in Liverpool are the immediate city centre (L1) and waterfront areas around Albert Dock, where competition for tourist bookings is fiercest.
Neighborhoods with room for new short-term rental supply in Liverpool include the Baltic Triangle (still growing), areas near Anfield stadium for match-day stays, and emerging regeneration zones around Liverpool Waters where demand is building ahead of supply.
Don't lose money on your property in Liverpool
100% of people who have lost money there have spent less than 1 hour researching the market. We have reviewed everything there is to know. Grab our guide now.
What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about Liverpool, we always rely on the strongest methodology we can, and we don't throw out numbers at random.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source | Why it's authoritative | How we used it |
|---|---|---|
| HMRC Non-Resident Landlord Scheme | Official HMRC guidance on how non-resident landlords' UK rent is taxed. | We used it to explain tax withholding rules for foreign landlords. We referenced it to clarify when letting agents must deduct tax from rent payments. |
| ONS Liverpool Housing Prices Local Tool | Official UK statistics agency publishing local rent and price data. | We used it for Liverpool's average rent (£873) and house price (£185,000). We calculated gross yield directly from these official figures. |
| Liverpool City Council Selective Licensing | The city's official page on landlord licensing requirements. | We used it to explain Liverpool-specific compliance costs. We highlighted that licensing is mandatory in designated wards. |
| AirDNA Liverpool Market Overview | Industry-standard short-term rental data used by professional hosts. | We used it for Liverpool's 47% STR occupancy rate. We sourced average nightly rates and listing counts from this platform. |
| UK Gov Renters' Rights Act 2025 Roadmap | Official government rollout plan for England's rental law changes. | We used it to explain what changes in May 2026. We ensured regulatory information reflects upcoming reforms. |
| UK Gov Tenant Fees Act Guidance | Official document stating deposit caps and permitted fees. | We used it to confirm the 5-week deposit cap rule. We ensured deposit information is legally accurate. |
| University of Liverpool Accommodation Page | Primary source naming where students actually live in Liverpool. | We used it to identify student demand corridors like Smithdown Road. We validated neighborhood recommendations with this official university data. |
| Invest Liverpool Baltic Triangle | Public sector investment portal with regeneration facts and figures. | We used it to explain why Baltic Triangle attracts premium renters. We sourced regeneration context for neighborhood analysis. |
| English Private Landlord Survey 2024 | Official survey describing how landlords operate across England. | We used it to ground cost and management assumptions. We ensured Liverpool estimates align with national landlord patterns. |
| Shelter England Legal Guidance | Widely referenced legal resource maintained with citations to statute. | We used it to explain Section 13 rent increase rules. We cross-checked government summaries against this independent source. |
We have made this infographic to give you a quick and clear snapshot of the property market in the UK. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
Related blog posts