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Why is Liverpool emerging as a prime location for property investment in 2025? Is it the impressive rental yields, the city's vibrant cultural scene, or the affordability compared to other UK markets? What are the key advantages for investors?
We get asked these questions all the time because we’re on the ground, working closely with developers, real estate agents, and investors like you. With so much interest in this market, we’ve decided to turn our individual answers into a comprehensive article for everyone to benefit from.
Our goal is to provide a clear case for investing in Liverpool's property market, backed by our firsthand experience and market knowledge.
If you think we missed an important point in our content or want to know more, don’t hesitate to reach out (we answer super fast). Your feedback makes our content even stronger.
Finally, please note that this is not financial or investment advice. Investing in real estate carries inherent risks, and market conditions can change unexpectedly. We strongly encourage you to conduct thorough research and consult with a qualified financial advisor before making any investment decisions.
1) Liverpool's diverse economy lowers the risk of property market fluctuations
Liverpool's economy is a melting pot of various sectors, which helps keep the property market steady.
In Liverpool, you'll find a balanced job market with 9,000 people working in digital technology, a significant chunk in healthcare, and a solid presence in manufacturing. This spread across industries means the city isn't reliant on just one sector, which is a good sign for potential property buyers.
What's more, Liverpool's economy is on the up and up. The city's GDP growth has been clocking in at 2.3%, which is better than the UK's average. This growth is fueled by a mix of digital tech, creative industries, tourism, and education, showing just how diverse the economy is.
When it comes to property, Liverpool offers a bit of everything—residential, commercial, and industrial spaces. This variety helps keep the market balanced and stable. Even when times are tough, property prices in Liverpool have shown resilience, which is reassuring if you're thinking about investing here.
So, if you're considering buying property in Liverpool, know that the city's diverse economy and stable property market make it a solid choice. The mix of sectors and types of properties available means there's something for everyone, and the city's economic health is a good sign for future growth.
Sources: The Luxury Playbook, Liverpool City Council
2) Liverpool’s waterfront projects are turning the city into a lively hub, boosting property values
Liverpool's waterfront regeneration projects are transforming the city into a vibrant hub.
In 2023, the average house price in Liverpool climbed by four percent, reaching £188,000. Some areas, like the St James and Georgian Quarter’s Chinatown, saw a nearly 40 percent increase from mid-2023 to mid-2024. This upward trend is expected to continue, with analysts predicting a further three percent rise in 2025.
The Liverpool Waters project is a major part of this transformation, backed by a £55 million investment from Homes England. Over the next decade, this project will deliver thousands of new homes, commercial spaces, and leisure facilities. A key highlight is the construction of Everton FC’s new 52,000-seat riverside stadium, set to be completed in 2025.
Tourism in Liverpool is booming, with the value of the city region's tourism rising 21% in 2023, surpassing the £6 billion mark for the first time. Visitor numbers jumped by 4.4 million to 60.29 million in 2023, and hotel occupancy rates increased to 76.5%, nearing pre-pandemic levels.
These developments have made Liverpool an increasingly popular destination for both tourists and investors. The city's transformation is not just about new buildings; it's about creating a lively atmosphere that attracts people from all over.
Sources: FM Industry, Click Liverpool, LBN Daily
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.
3) Liverpool's booming tech scene is drawing young professionals, increasing demand for housing
Liverpool's digital and tech sector is booming, drawing in a wave of young professionals.
In the past couple of years, tech jobs in Liverpool have surged by 14%, with over 300 new positions on the horizon. This growth is largely fueled by the success of local startups, which are thriving thanks to initiatives like Baltic Ventures.
Every startup involved with Baltic Ventures last year managed to secure seed funding, making Liverpool a hotspot for tech-savvy individuals looking for new opportunities. This influx of talent is reshaping the city's landscape, especially in tech-centric areas.
As these young professionals flock to Liverpool, the demand for housing is climbing. Rents are rising by 6-8% annually, particularly in neighborhoods like the Baltic Triangle, where tech activity is concentrated.
The rental market is tight, with limited inventory pushing prices up. High demand is a constant in these tech-driven areas, making it a competitive market for newcomers.
Sources: LBNDaily, The Luxury Playbook, Growth Platform
4) Liverpool’s urban renewal is transforming neglected areas, offering fresh investment opportunities
Liverpool's urban renewal projects are transforming neglected areas, creating exciting new opportunities for property buyers.
One of the standout projects is Liverpool Waters, which is revamping the waterfront with new homes, offices, and cultural venues. This development is expected to boost property values by 20% between 2023 and 2026, making it a hot spot for investment.
Government funding has been a key driver in this transformation. Take the Birkenhead Regeneration Project, for example, which received a hefty £51 million from the Liverpool City Region Combined Authority and Homes England. This project is turning derelict land into a lively community with homes, parks, and better transport links.
Past successes like the £5 billion Liverpool Waters and the £2 billion Knowledge Quarter have set the stage for this boom. These projects have not only breathed new life into large parts of the city but have also caught the eye of international investors.
Investors are now more interested in Liverpool's potential, thanks to these successful initiatives. The city's ongoing urban renewal is making it a prime location for those looking to invest in property.
With these developments, Liverpool is not just revitalizing its neglected areas but is also creating a vibrant, modern cityscape that promises a bright future for property buyers.
Sources: Liverpool City Region Combined Authority and Homes England invest £51 million in Birkenhead regeneration project, Why Liverpool's Real Estate Market Should Be on Your Radar in 2024, Liverpool Strategic Futures Advisory Panel: Final report
5) In Liverpool, you’ll find diverse property options to match any investor’s taste
Liverpool's housing market is a treasure trove of diverse property types, perfect for any investor's taste.
Thanks to ongoing regeneration projects like Liverpool Waters and the Baltic Triangle, the city has seen a transformation that has sparked a demand for modern homes. These projects have breathed new life into the city, making it a hotspot for those seeking contemporary living spaces.
Neighborhoods such as Anfield and Toxteth are now more appealing than ever, thanks to upgraded infrastructure and amenities. Here, you can find a charming mix of historic homes alongside sleek, modern apartments, catering to a wide range of preferences and investment strategies.
For buy-to-let investors, Liverpool is a goldmine with rental yields between 5.5% and 6.5%. This is largely due to the influx of professionals and students, drawn by the city's vibrant student community and robust economic growth.
With its rich history and modern appeal, Liverpool offers a unique blend of old and new, making it a prime location for property investment. The city's ongoing development ensures that there are always fresh opportunities for those looking to invest.
Whether you're interested in a quaint historic home or a cutting-edge apartment, Liverpool's property market has something for everyone. The city's dynamic growth and diverse offerings make it a compelling choice for any investor.
Sources: Romal Capital, Pitchbook Property, Business ClickDo
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6) The local government provides incentives, making it easier for developers to start new housing projects
Liverpool is buzzing with new housing projects thanks to local government incentives for developers.
These efforts are part of a grand plan to boost the city's housing by 2030, aiming for 2,000 new homes each year. With over £1 billion earmarked for this housing program, the city is serious about its growth. This initiative has been open for public discussion since 2023, showing the community's involvement in shaping Liverpool's future.
Why all the fuss? Well, Liverpool's property market has been on a roll. From 2016 to 2021, house prices jumped by 14.1%, and the trend isn't slowing down. Despite this rise, Liverpool remains one of the UK's most affordable major cities for property investment, with an average property price of £187,600. This affordability, paired with high rental yields, makes it a hotspot for developers.
Adding to the appeal, the Liverpool City Region Mayor has introduced the Future Homes LCR initiative. This program is all about sustainable and affordable housing, featuring cutting-edge projects like zero-energy-bill homes. These innovations not only draw developers but also put Liverpool at the forefront of sustainable living in the UK.
Such projects align perfectly with the global shift towards sustainability, making Liverpool a pioneer in eco-friendly housing. The city's commitment to these initiatives is a big draw for developers looking to invest in future-proof projects.
Sources: Liverpool Chamber, PitchBook Property, Liverpool City Region
7) Liverpool hosts many international events, making it easy to rent out your property temporarily
Liverpool's international events are a magnet for tourists, driving up the demand for places to stay.
Take the Eurovision Song Contest in May 2023, for example. It was a huge hit for Liverpool's hotels, bringing in a flood of visitors and showing off the city's knack for hosting big crowds. This kind of event really puts Liverpool on the map, making it a hot spot for tourists and boosting the need for more accommodations.
When these events roll around, hotel occupancy rates in Liverpool skyrocket. Over the past year, the city saw a 74.9% occupancy rate, with numbers peaking during Eurovision. Even on weekends, the rate hit 82.1%, and weekdays weren't far behind at 71.5%. Clearly, these events keep the hotels buzzing all week long.
It's not just hotels that feel the rush. Platforms like Airbnb also see a big jump in bookings, mirroring the spike in demand for temporary stays. Local property owners report more rental inquiries, highlighting the strong need for short-term housing during these major events.
For anyone thinking about buying property in Liverpool, these events are a golden opportunity. They not only boost the local economy but also create a thriving market for short-term rentals. Investing in property here could mean tapping into a lucrative rental market during these busy times.
So, if you're considering a property purchase in Liverpool, keep an eye on the event calendar. These international gatherings are more than just entertainment; they're a driving force behind the city's booming accommodation sector.
Sources: The Business Desk, The Luxury Playbook, Liverpool Express
8) Liverpool's growing population means more people need homes
Liverpool's population is on the rise, creating a buzz in the housing market.
In recent years, Liverpool has seen its population grow from 917,000 in 2023 to 929,000 in 2025. This steady increase means more people are looking for homes, and the city is bustling with new faces. A big reason for this growth is net positive migration. Since 2011, the Liverpool City Region has welcomed many newcomers, especially from Europe, Africa, the Middle East, Asia, and the Americas. This influx of people naturally boosts the demand for housing.
The local government is on it, though. They're rolling out the £11.4 billion Affordable Homes Programme to tackle the housing crunch. By 2026, they plan to build 157,000 new homes, with many set aside for social rent. This is a clear sign that they're serious about meeting the needs of Liverpool's growing population.
For those considering buying property here, it's worth noting that the city is investing heavily in infrastructure to support this growth. New transport links and community facilities are popping up, making Liverpool an even more attractive place to live. The city's vibrant culture and rich history are also big draws for new residents.
As more people move in, neighborhoods are evolving, with new shops, restaurants, and services catering to the diverse community. This transformation is making Liverpool a dynamic place to call home. If you're thinking about buying property, now might be the perfect time to get in on the action.
With all these changes, property values are expected to rise, making it a potentially lucrative investment. The city's proactive approach to housing and infrastructure is setting the stage for a bright future.
Sources: RW Invest, Wirral Intelligence Service, Parliament UK
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.
9) Liverpool’s vibrant cultural scene attracts tourists, making it easy to find short-term renters
Liverpool is buzzing with culture and tourism, attracting visitors from across the globe.
In 2023, the city experienced a tourism boom, with visitor numbers hitting 60.29 million and the tourism value reaching £6.25 billion. This surge is thanks to cultural gems like the Tate Liverpool and the Walker Art Gallery, which are must-see spots for anyone visiting.
Liverpool's music scene is a major draw, with festivals like the Liverpool International Music Festival and Liverpool Sound City adding to its charm. The 2023 Eurovision Song Contest was a standout event, pulling in 473,000 attendees and another 306,000 visitors, showcasing Liverpool's knack for hosting big international events.
Short-term rentals are thriving, with Liverpool ranking third highest in the UK for nights booked in these properties. This trend is driven by the city's appeal to tourists and young professionals, especially during major events when hotel occupancy rates hit new highs.
For those considering buying property, Liverpool's vibrant cultural scene and ability to attract tourists make it an exciting prospect. The city's rich tapestry of museums and music festivals not only draws tourists but also short-term renters, making it a lively place to invest.
Whether you're a culture enthusiast or a savvy investor, Liverpool offers a unique blend of history, art, and music that continues to captivate visitors and residents alike.
Sources: Liverpool City Region Tourism, Liverpool Express
10) Liverpool’s rich maritime history attracts tourists, making it easy to rent out your property short-term
Liverpool's rich maritime history is a magnet for tourists, boosting the short-term rental market.
In recent years, tourism in the Liverpool City Region has surged, with its value jumping by 21% from 2022 to hit £6.25 billion. Visitor numbers have climbed to 60.29 million, driving up demand for short-term rentals and fueling the city's economic growth.
The Royal Albert Dock is a must-see, where history meets modernity. It houses the Merseyside Maritime Museum, a treasure trove of Liverpool's seafaring past. This blend of old and new draws tourists eager to dive into the city's heritage, making short-term rentals a hot commodity for those wanting to stay close to the action.
Since Liverpool lost its UNESCO World Heritage status, tourism has still pumped £8.1 billion into the local economy. This boom has sparked a 13% rise in the job market since 2022, underscoring tourism's vital role in Liverpool's economy. Short-term rentals are thriving, with glowing reviews and high demand on platforms like Airbnb and Booking.com.
Visitors are not just passing through; they're immersing themselves in Liverpool's vibrant culture. The city's maritime attractions are a big draw, and the short-term rental market is reaping the benefits as tourists look for convenient places to stay.
With its unique blend of history and modern attractions, Liverpool continues to captivate tourists, ensuring a steady demand for short-term rentals. The city's economic landscape is evolving, with tourism at its heart.
Sources: Reason.com, LiverpoolCityRegion-ca.gov.uk
11) Liverpool's port expansion boosts trade, creating jobs and increasing housing demand
The city's port expansion is boosting trade opportunities, leading to more jobs and higher housing demand.
From 2023 to 2024, Liverpool's port saw a 44% jump in liquid bulk tonnage, the biggest increase among major UK ports. This boom in cargo handling is creating thousands of jobs in logistics, transport, and trade-related sectors. The port's growth is a key driver of Liverpool's economy, which is thriving with a 2.3% annual GDP growth rate, thanks to digital technology, creative industries, tourism, and education.
With the economy on the rise, business confidence is high, attracting young professionals and families to Liverpool. This influx of people is pushing up the housing market. Property prices in Liverpool have climbed, with the average house price reaching about £185,000 in November 2024, marking a 5.2% increase from the previous year.
The demand for housing is not just about buying; rental yields are strong too. The growing population and rental demand are fueled by the economic activity from the port expansion. This makes Liverpool an attractive place for property investment, as the city continues to develop and expand.
Insider knowledge suggests that the port's expansion is not just about trade; it's reshaping the city's landscape. New businesses are popping up, and existing ones are expanding, creating a vibrant community. This transformation is making Liverpool a hotspot for both living and working.
As the city evolves, the housing market is expected to keep growing, offering opportunities for both buyers and investors. The port's success is a catalyst for change, driving economic growth and housing demand in Liverpool.
Sources: UK Government Statistics, The Luxury Playbook
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12) Liverpool is part of the Northern Powerhouse, which aims to boost economic growth and infrastructure
Liverpool is a key player in the Northern Powerhouse initiative, which is all about boosting economic growth and infrastructure.
One big reason is the massive government investment in infrastructure. For instance, Liverpool City Council has poured $219 million into various projects. A standout is the $33 million makeover of Light Horse Park, turning it from an underused spot into a lively recreational area. This transformation is set to make the city even more appealing and livable.
Jobs are on the rise too, with 5,800 new positions expected by the end of 2023. This job growth is a solid sign of economic stability, aligning perfectly with the goals of the Northern Powerhouse initiative.
Technology and innovation are also booming, especially in the health-tech sector. Thanks to strategic partnerships with big corporations and universities, Liverpool is becoming a hub for tech innovation, which is a big boost for the local economy.
These developments are not just about numbers; they’re reshaping the city’s landscape and economy. The Northern Powerhouse initiative is clearly making its mark, with Liverpool at the forefront of this transformation.
Sources: Liverpool City Council, Invest Liverpool, University of Liverpool
13) With better public transport, Liverpool’s suburban properties are more appealing for commuters
Liverpool's public transport has seen major improvements, making life easier for commuters.
With a massive investment of hundreds of millions, the Liverpool City Region Combined Authority is building a transport network similar to London's. This includes new trains, stations, and even zero-emission hydrogen buses, plus a safer cycling network. These changes mean getting around is now more convenient and efficient.
One standout upgrade is the £500 million investment in Merseyrail's new train fleet. The revamped Newton-le-Willows station now acts as a transport hub, connecting Liverpool and Manchester in just 30 minutes. This has cut down commute times, making suburban living more attractive.
These transport upgrades are shaking up the property market. Homes near train stations or tram stops are seeing a price boost, a trend already visible in cities like Glasgow and Manchester. In Liverpool, improved transport links are expected to raise suburban property prices, drawing more interest to these areas.
The demand for suburban homes is rising, showing just how much these transport improvements matter. People are keen to live in areas with easy access to the city, and this demand is driving up property values.
As Liverpool continues to enhance its transport network, the appeal of suburban living grows. Commuting is now a breeze, making these areas more desirable for potential homeowners.
Sources: Liverpool City Region Combined Authority, Aspen Woolf, GOV.UK
14) Liverpool is perfect for commuters because it’s close to major cities like Manchester
Liverpool is a prime spot for commuters thanks to its close proximity to Manchester.
Getting between these two cities is a breeze with 91 daily buses making the trip, and the fastest one takes just over an hour. This makes it super convenient for anyone who needs to travel daily.
Trains are another great option, with hourly services from Liverpool Lime Street that get you to Manchester in about 50 minutes. This efficient rail network is perfect for both work and leisure trips.
Living in Liverpool while working in Manchester comes with its perks. The property market in Liverpool is on the rise, yet the cost of living remains lower than in Manchester, making it an appealing choice for many.
For those who work in Manchester but prefer a more affordable lifestyle, Liverpool offers a great balance of cost and convenience.
With such excellent transport links and economic advantages, Liverpool stands out as a strategic location for commuters looking to make the most of both cities.
Sources: CheckMyBus, Greater Manchester Local Rail Service Performance, Wikipedia
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.
15) Liverpool is adding more parks and green spaces, making it a better place to live
Liverpool is transforming its landscape with new green spaces and parks.
In 2023 and 2024, the city unveiled Southern Grasslands, a massive 24-acre green space that used to be a landfill. This eco-haven now boasts 5,700 new trees and shrubs, making it the largest green space Liverpool has introduced in the 21st century. It's a breath of fresh air for residents and a testament to the city's commitment to sustainability.
These lush areas are not just for show; they're boosting property values too. In the Baltic Triangle, for instance, property prices jumped by 6.3% year-on-year. People are eager to live near these parks, and the Georgian Quarter is a hot spot despite its higher prices, thanks to its proximity to both green spaces and the city center.
The URBAN GreenUP initiative is another feather in Liverpool's cap. It's proving that nature-based solutions can do wonders for mental health and well-being. By reducing air surface temperatures and improving water quality, these green spaces are making life in the city more pleasant and healthier.
Community engagement is thriving too, with programs and events that bring people together. Residents are thrilled with the changes, and high satisfaction levels reflect their appreciation for the increased greenery.
All these efforts are making Liverpool a more attractive place to live, with a focus on enhancing the quality of life through nature. The city's investment in green spaces is a win-win for everyone.
Sources: Invest Liverpool, The Luxury Playbook, AIPH
While this article provides thoughtful analysis and insights based on credible and carefully selected sources, it is not, and should never be considered, financial advice. We put significant effort into researching, aggregating, and analyzing data to present you with an informed perspective. However, every analysis reflects subjective choices, such as the selection of sources and methodologies, and no single piece can encompass the full complexity of the market. Always conduct your own research, seek professional advice, and make decisions based on your own judgment. Any financial risks or losses remain your responsibility. Finally, please note that we are not affiliated to any of the sources provided. Our analysis remains then 100% impartial.