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Liverpool property prices are rising significantly in 2025. Average property prices increased by 14.0% to £180,000 in March 2025, making it one of the fastest-growing markets in England.
As we reach mid-2025, Liverpool's property market continues to outperform expectations with strong demand from first-time buyers, investors, and renters. The city's affordability compared to other major UK cities, combined with extensive regeneration projects and rising rental yields, makes it an attractive destination for property investment. Major developments like Liverpool Waters and the Knowledge Quarter are driving significant infrastructure improvements, while rental prices have surged 9.7% annually to £844 per month.
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Liverpool property prices rose by 14.0% in the year to March 2025, reaching an average of £180,000. Rental prices increased by 9.7% annually to £844 per month, delivering gross yields of 6-8% for investors.
The market is driven by regeneration projects, affordability compared to other UK cities, and strong demand from students and professionals.
| Metric | Current Value (2025) | Annual Change | Comparison |
|---|---|---|---|
| Average Property Price | £180,000 | +14.0% | 14th cheapest in England & Wales |
| Average Monthly Rent | £844 | +9.7% | Above North West average |
| Gross Rental Yield | 6-8% | Rising | 2% above UK average |
| First-Time Buyers Average | £166,000 | +14.6% | Highly affordable |
| Terraced Properties | £163,000 | +14.7% | Strongest growth segment |
| Sales Volume | 9,000 transactions | -19.9% | Supply constraints |
| Price per Square Meter | £2,200 | +47% since 2015 | Strong capital appreciation |
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
What are the current average property prices in Liverpool as of June 2025?
As of June 2025, Liverpool property prices continue their strong upward trajectory from earlier in the year.
The average property price in Liverpool reached £180,000 in March 2025, representing a substantial 14.0% increase from March 2024. This significant growth rate positions Liverpool among the fastest-growing property markets in England.
The broader Liverpool postcode area shows an average price of £210,000 with a median of £180,000, reflecting the diverse range of properties available. Newly built properties command a premium, averaging £227,000, while established properties are priced at approximately £209,000. First-time buyers are paying an average of £166,000, which remains highly affordable compared to other major UK cities.
Most property transactions occur in the £100,000-£150,000 range, accounting for 23% of all sales, followed by the £150,000-£200,000 bracket at 20.7% of transactions.
These prices make Liverpool the 14th cheapest postcode area out of 105 areas across England and Wales, highlighting its exceptional affordability in the current market.
How much have Liverpool property prices increased over the past 12 months?
Liverpool has experienced exceptional property price growth over the past year, significantly outpacing both regional and national averages.
Official ONS data confirms that Liverpool property prices rose by 14.0% in the year to March 2025, substantially higher than the North West regional average of 9.4%. Some market analysts report even stronger growth, with certain sources indicating increases of up to 8.5% year-on-year to Q1 2025, reaching average prices of £174,000.
Terraced properties led the growth surge with a remarkable 14.7% increase, making them the strongest-performing property type. Detached properties also performed well with an 11.1% rise, while flats and maisonettes saw more modest but still significant gains. The value of the average Liverpool home increased by approximately £25,239 over the year, translating to substantial capital gains for existing property owners.
This growth rate places Liverpool ahead of major cities like Manchester (8% growth) and significantly above the UK national average of 6.4%.
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Which areas of Liverpool have seen the fastest property price growth in 2025?
Several Liverpool neighborhoods have emerged as standout performers in terms of price appreciation during 2025.
Regeneration zones continue to drive the strongest growth, with areas like Baltic Triangle, Anfield, Wavertree, and Toxteth leading the charge. These neighborhoods benefit directly from major infrastructure investments and urban renewal projects, creating significant demand from both owner-occupiers and investors.
| Area | Postcode | 5-Year Growth | Key Drivers |
|---|---|---|---|
| Walton | L30 | 54.4% | Regeneration projects, transport links |
| Halewood | L26 | 53.7% | Family housing demand, affordability |
| Aintree | L10, L38 | 48.9%, 44.8% | Transport connectivity, development |
| Wavertree | L15 | 48.1% | Student demand, urban regeneration |
| City Centre | L1, L2, L3 | 40%+ | Commercial development, lifestyle |
| Anfield | L4, L6 | 35%+ | Stadium regeneration, investment |
| Old Swan | L13 | 35%+ | Affordable housing, transport access |
The Knowledge Quarter area, centered around the University of Liverpool, has also seen substantial appreciation due to the £2 billion regeneration initiative driving both employment and housing demand.
What types of properties are experiencing the biggest price surges?
Different property types in Liverpool are experiencing varying levels of price appreciation, with traditional housing styles leading the growth.
Terraced properties have emerged as the clear winners, recording the highest annual price increase of 14.7% in the year to March 2025. This strong performance reflects their popularity among first-time buyers and investors due to their affordability and rental potential, with average prices around £163,000.
Detached properties have also performed strongly with an 11.1% price increase, though their higher average price of £368,000 means they represent a smaller share of total transactions. Semi-detached properties continue to attract family buyers, showing solid growth in line with the broader market trends.
Flats and maisonettes, while experiencing the slowest capital appreciation at the property type level, remain attractive to investors due to their affordability (averaging £130,000) and strong rental yields. The rental market for flats has been particularly robust, with rents rising 10.1% annually.
New-build properties command a premium across all categories, averaging £227,000 compared to £209,000 for established properties, reflecting strong demand for modern specifications and energy efficiency.
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How do Liverpool rental prices compare to property price growth in 2025?
Liverpool's rental market has demonstrated exceptional strength in 2025, with rental growth closely tracking property price appreciation.
Average monthly rents in Liverpool reached £844 in April 2025, representing a robust 9.7% annual increase from £769 in April 2024. This rental growth rate exceeds the North West regional average of 8.4%, demonstrating the particular strength of Liverpool's rental market.
The rental market shows strong performance across different property types, with flats and maisonettes leading rent increases at 10.1% annually, now averaging £712 per month. Detached properties saw an 8.5% rental increase to £1,122 monthly. By bedroom count, one-bedroom properties experienced the highest rental growth at 10.6%, while four-or-more bedroom properties increased by 8.4%.
This combination of rising rents and relatively affordable purchase prices delivers gross rental yields in the 6-8% range, significantly above the UK average of 5.2%. The strong rental performance is driven by Liverpool's large student population (over 70,000 students), growing professional workforce, and limited rental supply.
These yield levels position Liverpool as one of the UK's most attractive buy-to-let investment destinations, particularly for investors seeking steady income returns alongside capital appreciation.
What are property price forecasts for Liverpool through 2026-2030?
Expert forecasts for Liverpool's property market remain overwhelmingly positive, with analysts predicting continued strong growth through the remainder of the decade.
For the immediate term, property prices in Liverpool are projected to grow by 4.5% to 6.0% through 2026, with the average home price forecast to reach approximately £182,000-£185,000 by the end of 2026. Savills, one of the UK's leading property consultancies, predicts a 7% house price increase specifically for 2026.
The medium-term outlook is even more optimistic, with the North West region (including Liverpool) forecast to achieve 11.70% cumulative growth by 2027, making it one of the best-performing regions in the UK. This significantly outpaces the national average and reflects Liverpool's strong fundamentals including affordability, regeneration, and economic growth.
Long-term projections through 2030 remain robust, supported by ongoing major regeneration projects such as Liverpool Waters (£5.5 billion investment), the Knowledge Quarter development, and Everton's new stadium. These infrastructure investments are expected to continue driving demand and supporting property values well into the next decade.
Rental forecasts suggest continued growth, with some analysts predicting cumulative rental increases of 18% by 2029, supporting the investment case for buy-to-let properties in the city.
How does Liverpool compare to other major UK cities for property investment in 2025?
Liverpool consistently ranks among the top UK cities for property investment, offering a compelling combination of affordability, growth potential, and rental yields.
In terms of affordability, Liverpool's average property price of £180,000 compares very favorably to Manchester (£245,000), Birmingham (£270,000+), and dramatically undercuts London prices. This affordability provides a lower barrier to entry for investors while still offering exposure to a major UK city with strong economic fundamentals.
| City | Avg. Price | 1-Year Growth | 5-Year Growth | Rental Yield | Forecast 2026 |
|---|---|---|---|---|---|
| Liverpool | £180,000 | 14.0% | 35-54% | 7.44% | +20% |
| Manchester | £245,000 | 8.0% | 35% | 6.53% | +19.3% |
| Birmingham | £270,000 | 2.0% | 27% | 5-6% | +16-18% |
| Leeds | £220,000 | 4.5% | 30% | 6.0% | +15% |
| London | £520,000 | 1.2% | 10% | 3.6% | +8% |
Liverpool leads in both recent price growth (14.0% vs Manchester's 8.0%) and rental yields (7.44% vs Manchester's 6.53%), while offering superior affordability. The city's five-year price growth of 35-54% in key areas outperforms most comparable cities, demonstrating its strong momentum.
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What impact are current interest rates having on Liverpool property demand?
Interest rate movements in 2025 have created a favorable environment for Liverpool property demand, supporting both price growth and investment activity.
The Bank of England has cut the base rate from 5% in January 2025 to 4.25% by April 2025, with further reductions anticipated throughout the year. These rate cuts have significantly improved mortgage affordability, stimulating demand from both first-time buyers and investors in Liverpool's accessible price range.
Lower borrowing costs have particularly benefited Liverpool's market due to the city's affordable entry points. With average first-time buyer prices at £166,000, the combination of rate cuts and competitive local pricing has attracted buyers who might otherwise be priced out of more expensive markets like Manchester or London.
For investors, the improved mortgage landscape has enhanced the attractiveness of Liverpool's buy-to-let market. With gross yields of 6-8% and reduced financing costs, the income returns after mortgage payments have become increasingly attractive compared to other investment options.
Rising inflation (currently 3.5% and forecast to peak at 3.7% in Q3 2025) has also supported the rental market, as landlords can justify rent increases in line with cost pressures, further supporting the investment case for Liverpool properties.
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 strong is rental demand in Liverpool during 2025?
Liverpool's rental market demonstrates exceptional strength in 2025, underpinned by diverse demand sources and constrained supply.
Student demand remains a cornerstone of the rental market, with over 70,000 students across Liverpool's universities creating consistent year-round demand. The University of Liverpool, Liverpool John Moores University, and Liverpool Hope University continue to attract both domestic and international students, supporting rental prices particularly in areas close to campuses.
Professional and graduate retention has increased significantly, with many choosing Liverpool for its affordability compared to London and other major cities. The Knowledge Quarter's development has created new employment opportunities in technology, research, and innovation sectors, attracting young professionals who typically rent before purchasing.
Supply constraints have intensified rental competition, with the number of properties coming to market increasing by only 22.9% compared to last year, while demand continues to grow. This supply-demand imbalance has supported the 9.7% annual rental growth and is expected to continue driving rental appreciation.
First-time buyers remaining in the rental market longer due to affordability pressures elsewhere has also supported demand. While Liverpool remains affordable, many renters are building savings or waiting for optimal buying conditions, extending their rental periods.
What major regeneration projects are driving Liverpool property prices up?
Liverpool is experiencing one of the UK's most ambitious urban transformations, with multiple major projects creating significant property market momentum.
Liverpool Waters represents the largest regeneration project, with £5.5 billion invested in waterfront development creating thousands of new homes, office spaces, and cultural venues. This massive project is transforming the Liverpool skyline and creating substantial demand in surrounding areas like Baltic Triangle, Vauxhall, and Kirkdale.
The Knowledge Quarter, a £2 billion initiative centered around the University of Liverpool, is fostering innovation and creating high-quality employment opportunities. This development is driving both residential demand and commercial investment, supporting property values in the surrounding L3 and L7 postcodes.
- Everton Stadium: The new 52,888-capacity stadium in Bramley-Moore Dock is revitalizing the northern waterfront area and creating significant regeneration opportunities
- Ten Streets Creative Quarter: This cultural and creative district is attracting young professionals and artists, driving demand for both residential and commercial properties
- Festival Gardens: Major residential and mixed-use development creating new housing supply in a strategic location
- Kings Dock: Commercial and residential development enhancing the city's southern waterfront
- Chinatown Regeneration: Urban renewal attracting both residential and commercial investment in the city center
These projects collectively represent billions in investment and are expected to continue driving property appreciation through 2030 and beyond, creating both immediate demand and long-term value appreciation opportunities.
How affordable is Liverpool compared to average UK property prices in 2025?
Liverpool maintains its position as one of the UK's most affordable major cities, despite significant recent price growth.
With an average property price of £180,000, Liverpool remains dramatically below the UK national average of £271,000, representing a discount of approximately 34%. This affordability gap has actually widened despite Liverpool's strong price growth, as national prices have also been rising, though more slowly.
For first-time buyers, Liverpool offers exceptional accessibility with average purchase prices of £166,000, compared to the national first-time buyer average of £258,000. This represents savings of over £90,000 for buyers choosing Liverpool over the national average, making homeownership significantly more achievable.
The median property price to earnings ratio in Liverpool ranges from 4.9 to 6.5 depending on the specific area, which compares favorably to national affordability metrics. A median-income resident in Liverpool needs approximately 5-6 years of gross salary to purchase a median-priced property, significantly better than London (12+ years) or the Southeast (10+ years).
This affordability advantage, combined with strong rental yields and growth prospects, explains why Liverpool continues to attract investors and buyers from across the UK and internationally.
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Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Yes, property prices in Liverpool are going up significantly. With 14.0% annual price growth, 9.7% rental increases, and continued regeneration investment, Liverpool represents one of the UK's strongest performing property markets in 2025.
The combination of affordability, high rental yields (6-8%), major infrastructure projects, and strong demand fundamentals positions Liverpool for continued price appreciation through 2030. For both investors and homebuyers, the current market conditions present compelling opportunities for capital growth and income generation.
Sources
- Office for National Statistics - Housing prices in Liverpool
- PlumPlot - Liverpool house prices in maps and graphs
- The Luxury Playbook - Liverpool Real Estate Market Overview
- Buy Association Group - Liverpool edges past Manchester for house price growth
- Flambard Williams - House Price Forecast In Liverpool 2024 and Beyond
- RWinvest - Liverpool Property Market Report for 2024
- Liverpool Homebuyer Group - The Liverpool Housing Market: What To Expect In 2025
- Pitchbook Property - Why Liverpool's Real Estate Market Should Be on Your Radar