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What will happen in Liverpool’s real estate market? Will prices go up or down? Is Liverpool still a hotspot for foreign investors? How is the UK government impacting real estate policies and taxes in 2025?
We’re constantly asked these questions because we’re deeply involved in this market. Through our work with local estate agents, property developers, and clients who buy properties in Liverpool, we’ve gained firsthand insights.
That’s why we created this article: to provide clear answers, insightful analysis, and a well-rounded perspective on market predictions and forecasts.
Our goal is simple: to ensure you feel informed and confident about the market without needing to look elsewhere. If you think we missed the mark or could do better, we’d love to hear your thoughts. Feel free to message us with your feedback or comments, and we’ll work hard to improve this content for you.
1) Foreign investment in Liverpool's student housing will increase
Liverpool is becoming a hotspot for international students, with over 11,000 currently studying there.
This influx is growing at a remarkable pace, 19% annually, outpacing the UK's average growth rate of 13%. As a result, there's a booming demand for purpose-built student accommodation (PBSA) in the city. Areas like the Georgian Quarter and the Knowledge Quarter are particularly sought after, thanks to their stable rental yields and high occupancy rates.
The UK government is sweetening the deal for foreign investors by offering incentives and maintaining a stable tax policy. This stability, coupled with Liverpool's reputation as a top student city with high-quality universities, makes it a magnet for foreign investment.
Historically, the UK student accommodation sector has seen a rise in foreign investment, driven by the promise of attractive returns and consistent demand. In Liverpool, the involvement of international investors like Cain International in student housing projects underscores this growing interest.
For those considering investing in Liverpool's student accommodation, the city's vibrant student population and supportive government policies create a promising landscape. The combination of rising student numbers and investor-friendly policies is hard to ignore.
With Liverpool's student numbers climbing and the city's appeal to investors growing, the future looks bright for those eyeing opportunities in the student accommodation sector. Foreign investment is set to rise, driven by these compelling factors.
Sources: Amber Student, The Guide Liverpool, Magnate Assets, The Luxury Playbook
2) Rental yields in Liverpool will rise slightly as more professionals relocate to the city
Liverpool's rental market is on the rise as more professionals flock to the city.
Thanks to a boost in job opportunities, employment levels jumped by 1.7% in late 2023 compared to the previous year. This means more people are moving to Liverpool for work, driving up the demand for rental properties. The city added 5,800 new jobs by the end of 2023, making it a hotspot for career seekers.
Liverpool is becoming a magnet for the digital and creative industries, with places like Sci-Tech Daresbury and Baltic Creative leading the charge. These hubs are attracting tech-savvy professionals, which in turn is pushing up rental demand. As these sectors grow, so does the need for housing, benefiting landlords with better yields.
The city center is particularly buzzing, with rental rates for apartments climbing between 10% and 12% annually. This is above the national average, thanks to young professionals who love the urban vibe and convenience Liverpool offers. It's a win-win for landlords who are seeing their investments pay off.
With its vibrant lifestyle and growing job market, Liverpool is becoming a top choice for professionals. This influx is not just boosting the local economy but also making the rental market more lucrative. As more people choose to live and work in the city, landlords are enjoying the benefits of higher yields.
Sources: Invest Liverpool, LCR Connect, Place North West
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 property prices will grow steadily due to regeneration projects driving demand
The property market in Liverpool is on the rise, with steady growth in prices expected to continue.
By November 2024, the average house price in Liverpool hit around £185,000, reflecting a 5.2% increase from the previous year. This isn't just a recent trend; between 2016 and 2021, house prices in the city jumped by 14.1%. Such growth is largely fueled by significant investments in regeneration projects.
Take the Liverpool Waters project, for instance. Valued at £5.5 billion, it's transforming the city's waterfront with new homes, office spaces, and amenities, which in turn boosts property values. Another major initiative, the £2 billion Knowledge Quarter, is driving innovation and increasing both employment and housing demand.
These regeneration efforts are further supported by major infrastructure projects. The Liverpool Waters Development is a prime example, aiming to create a sustainable, high-quality, multi-use waterfront. This includes developing a public park and essential infrastructure to accommodate over 2,300 new homes, breathing new life into the historic docks.
Such projects are not just about buildings; they're about creating vibrant communities. The focus on sustainability and quality of life is attracting more people to the area, which naturally drives up property demand and prices.
Sources: Liverpool Housing Market Analysis & Forecast (2024 - 2025), Plans for new North Liverpool development unveiled, Updated Plans for Liverpool Waterfront Regeneration, Why Liverpool's Real Estate Market Should Be on Your Radar in 2024
4) Student accommodation rental yields will stay stable because demand remains steady
Rental yields in Liverpool's student accommodation sector are holding steady thanks to a consistent demand.
Universities like the University of Liverpool and Liverpool John Moores University are key players here, with strong enrollment numbers keeping the demand for student housing robust. This means if you're considering investing in student accommodation, Liverpool is a solid bet.
Backing this up, Paragon Bank's research highlights that student postcodes in Liverpool achieved a yield of 8.93% in July 2024, outpacing the national average. This shows that rental yields have been either stable or on the rise recently. Even with a slight dip in pre-leasing for Fall 2024, occupancy rates are still high, and a nearly 10% rent growth is expected for the 2024-2025 academic year.
International students are flocking to Liverpool, adding to the demand. They often prefer purpose-built student accommodation (PBSA), which is in limited supply. This scarcity means existing student housing remains in high demand, ensuring rental yields stay stable.
With fewer new student housing developments on the horizon, the current properties are likely to continue seeing strong interest. This limited availability is a boon for investors, as it keeps the rental market competitive and yields stable.
So, if you're eyeing a property investment in Liverpool, the student accommodation sector offers a promising opportunity with its consistent demand and stable yields.
Sources: Landlord Today, CrowdStreet, Casita
5) City center property values in Liverpool will rise as the cultural scene thrives
Properties in Liverpool's city center are on the rise as the city's cultural scene continues to thrive.
In 2023 and 2024, property prices in Liverpool's city center have shown resilience, with a 2% increase over the last year, even after a dip from the 2022 peak. This bounce-back reflects a strong market that's regaining momentum.
Significant investments in the city's cultural infrastructure, like the £2 million for music education and £663,000 for new musical instruments, are transforming Liverpool into a cultural hotspot. These enhancements not only enrich the local scene but also draw more visitors and residents, boosting the economy.
Events such as the Eurovision Song Contest in 2023 brought in an extra 500,000 visitors, leading to a 23% spending surge at Liverpool ONE compared to 2022. Such events underscore Liverpool's status as a lively cultural hub, increasing the demand for city center living.
The Eurovision Village alone attracted 250,000 visitors, highlighting the economic benefits of cultural events. Local restaurants saw an 87% sales boost during the Eurovision Final, illustrating the positive impact on businesses.
There's a growing demand for city center living, fueled by the area's proximity to cultural amenities. Young professionals and creatives are flocking to Liverpool, making it a prime spot for both living and investment, which supports the ongoing rise in property values.
Sources: Rightmove, Liverpool City Region Combined Authority, Tripplo.co.uk
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6) Liverpool’s home prices will keep rising as the city’s economy grows
Liverpool's property prices have been on the rise, and this trend shows no signs of slowing down.
By October 2024, the average house price in Liverpool had climbed by 4% to £188,000 compared to the previous year. Experts predict that by 2026, prices will soar by 24.3%, outpacing the national average. This surge is largely due to the city's growing population, which is increasing at a steady rate of 1.7% annually. With a vibrant influx of students and young professionals, the demand for housing is only getting stronger.
Adding to the appeal, Liverpool is seeing major investments in infrastructure. Projects like the Liverpool Waters development and various Build-to-Rent schemes are not just meeting current housing needs but are also pushing property values higher. These developments are making the city more attractive, drawing in more people and driving up prices.
The city's economy is another factor fueling this property boom. Liverpool's economy is thriving, with an annual GDP growth rate of around 2.3%. Key sectors such as digital technology, creative industries, tourism, and education are flourishing, attracting more residents and investors. This economic vitality is a magnet for those looking to invest in property.
With all these elements in play, Liverpool is becoming a hotspot for property investment. The combination of population growth, infrastructure development, and economic strength is creating a perfect storm for rising property prices. As more people flock to the city, the demand for housing continues to climb, making it a promising market for potential buyers.
Sources: Benoit Properties, Track Capital, The Luxury Playbook
7) Liverpool's rental prices will rise steadily as the population increases
Liverpool's rental market is booming thanks to a growing population.
Over the past decade, Liverpool has seen a 5.2% population increase, driven by professionals and students flocking to the city. This influx naturally boosts the demand for rental properties, making it a hot spot for potential buyers.
In the heart of Liverpool, waterfront apartments boast occupancy rates over 95%. This high demand shows just how eager people are to live in these prime locations. Investors are taking note, as Liverpool offers some of the highest rental yields in the UK, ranging from 5.5% to 6.5%.
Looking at the numbers, the average monthly rent for a private property in Liverpool jumped 9.0% from £721 in July 2023 to £785 in July 2024. This steady rise in rental prices highlights the increasing demand and limited supply of available properties.
For those considering investing, Liverpool's rental market presents a promising opportunity. The city's vibrant culture, combined with its economic growth, makes it an attractive place for both renters and investors alike.
With such a dynamic market, Liverpool is a city where property investment can truly pay off. The combination of high demand, limited supply, and attractive yields creates a perfect storm for potential buyers.
Sources: ONS, LBN Daily, Pitchbook Property
8) Property values in Anfield will rise unexpectedly because of ongoing regeneration projects
The Anfield area is buzzing with change thanks to ongoing regeneration projects.
With a hefty £300 million investment from Liverpool City Council, Anfield is seeing a transformation like never before. This cash injection has led to the creation of over 600 new homes and the refurbishment of 500 existing ones. The local environment and the stadium have also received much-needed upgrades, making the area more appealing to potential buyers.
Property prices in Anfield are on the rise, mirroring trends in nearby regenerated areas. In the past year, the median property price in Anfield jumped by 6.5%, now sitting at around £120,000. This is part of a larger trend across Liverpool, where property values are expected to continue climbing, with predictions that the average house price will reach £200,000 by the end of 2025.
New infrastructure projects are also making waves in Anfield. Developments near Gilman Street, including fresh commercial, retail, and leisure spaces, are set to breathe new life into Walton Breck Road. These enhancements not only make the area more attractive but also draw in more residents and businesses, which in turn boosts property values even further.
Locals are noticing the buzz, and it's not just about the homes. The improvements are creating a vibrant community atmosphere, making Anfield a desirable place to live. With more amenities and better infrastructure, the area is becoming a hotspot for new buyers looking for a promising investment.
As these projects continue, Anfield is poised for a bright future. The combination of new homes, improved infrastructure, and rising property values is creating a perfect storm for potential buyers. Investing in Anfield now could be a smart move as the area continues to evolve and grow.
Sources: This is Anfield, The Luxury Playbook, Liverpool Express
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) Interest from foreign buyers in Liverpool's regeneration areas will grow due to potential high returns
Foreign buyers are eyeing Liverpool's regeneration areas for their promising returns.
Once known for its capital growth, Liverpool saw property prices soar, with March 2022 marking a 10.3% rise, outpacing the UK's average of 7.8%. The city's transformation is fueled by major projects like the £5.5 billion Liverpool Waters, reshaping the waterfront and creating jobs. Developments such as the Liverpool2 terminal and Paddington Village are also key players in this growth.
Investors are drawn to Liverpool's high rental yields, especially in areas like Anfield and the Baltic Triangle, where yields average 7.2% and 6.1% respectively. These neighborhoods are hotspots for those seeking solid rental returns.
Liverpool's rental market is thriving, thanks to a growing population of students and young professionals. With four reputable universities, the city attracts international students and professionals, boosting demand for rental properties.
As Liverpool continues to evolve, its regeneration areas offer a unique opportunity for foreign investors. The combination of infrastructure development, high rental yields, and a vibrant population makes it a compelling choice.
Sources: The Luxury Playbook, Advantage Investment, Liverpool Noise, Residential Estates
10) Waterfront properties in Liverpool will become a luxury investment hotspot, attracting premium prices
Liverpool's waterfront property prices have been climbing steadily, making it a prime spot for potential buyers.
From 2016 to 2021, these prices jumped by 14.1%, and experts predict they'll keep rising. This growth is fueled by ongoing regeneration projects and cultural investments, with an expected increase of another 4% by 2025.
The demand for luxury apartments in these areas is also heating up. Liverpool's rental market is thriving, offering rental yields between 5.5% and 6.5%, which are among the highest in the UK. This surge is driven by a wave of professionals and students, leading to over 95% occupancy rates in places like Liverpool Waters.
Developers are pouring significant investments into transforming Liverpool's waterfront. The massive £880m Liverpool Waters project is a standout, with major investments in residential, commercial, and leisure spaces. New ventures like the £50m Patagonia Place and the Aquintania and Mauretania developments are adding hundreds of luxury apartments, highlighting the area's ongoing appeal.
These waterfront developments are becoming a hotspot for luxury investments, attracting a premium due to their prime location and modern amenities. The combination of high rental yields and strong demand makes them an attractive option for investors looking for lucrative opportunities.
Sources: Peel Waters, Pitchbook Property, LBN Daily, Portico Invest
11) City center rental yields will rise as more people want to live in urban areas
Rental yields in the city center are on the rise as more people flock to urban living.
Take Liverpool, for instance. The rental market here is buzzing, with some areas offering yields as high as 8-10% for buy-to-let investors. This is among the best in the UK, making it a hot spot for property buyers. The city's population has been on the up, with a 4.2% increase between the last two censuses. This growth is a clear sign that more people are drawn to Liverpool's vibrant city life and opportunities.
What's driving this demand? Well, Liverpool is booming with new job opportunities, especially in sectors like healthcare and construction. This business growth is fueling the need for more housing, particularly in the city center. Plus, ongoing regeneration projects like Liverpool Waters and the Knowledge Quarter are transforming the city into a more attractive place to live and work.
These projects are not just about new buildings; they're about making the city more livable. Improved public transport and connectivity are part of the package, making it easier for residents to get around. This enhanced livability is drawing in more residents and investors, creating a competitive market. The limited supply of properties means higher occupancy rates in city center rentals.
For those considering a property investment, Liverpool's city center is a promising option. The combination of high demand, limited supply, and ongoing development projects is a recipe for strong rental yields. As more people choose urban living, the demand for city center properties is only set to grow.
So, if you're thinking about buying property in the country, keep an eye on Liverpool. It's a city on the rise, with plenty of opportunities for savvy investors. The urban living trend is here to stay, and Liverpool is right at the heart of it.
Sources: Advantage Investment, Liverpool Express, The Luxury Playbook
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12) City center rents will increase as urban living becomes more popular
Rents in Liverpool's city center have been climbing steadily as more people flock to urban living.
Over the past decade, the population in Liverpool's city center has doubled, reflecting a strong attraction to the vibrant lifestyle and convenience of city life. This surge in residents naturally boosts the demand for housing, which in turn pushes rents higher.
One of the key drivers of this trend is the booming tech sector, particularly around the Baltic Triangle. Startups in this area are thriving, securing significant funding and creating high-paying jobs, which draws more professionals to the city center.
As these tech professionals move in, the demand for housing in the city center intensifies, further contributing to the rise in rental prices. The appeal of living close to work and enjoying the urban amenities is undeniable.
With more people choosing to live in the heart of the city, the need for diverse housing options grows, leading to annual rent increases of about 10% to 12%. This trend underscores the strong preference for urban living among tenants.
As Liverpool continues to evolve, the city center remains a hotspot for both living and working, making it a prime location for property investment.
Sources: RW Invest, RW Invest, Tech Behemoths
13) Interest in sustainable and energy-efficient homes will grow in Liverpool's real estate market
In Liverpool, there's a noticeable buzz around sustainable and energy-efficient homes.
Across the UK, 69% of adults are keen on properties with solar panels, and this interest jumps to 74% among Gen Z and Millennials. This shift shows a clear move towards eco-friendly living, especially among younger buyers who are more conscious of their environmental impact.
The Labour government, elected in 2023, is pushing this trend further by pledging to build 300,000 eco-friendly homes each year. They're offering tax breaks and grants for projects that meet high sustainability standards, making it more appealing for developers to focus on green building practices.
In Liverpool, local efforts like the Future Homes LCR plan are making waves. This initiative aims to make the city a leader in zero-carbon, low-energy-cost homes. By promoting innovative construction methods and offsite building, Liverpool is setting the stage for a sustainable future.
The media is also playing its part by highlighting the perks of energy-efficient homes. For example, homes with solar panels can see a value increase of up to £2,722 and save £669 annually on energy bills. This kind of coverage is making sustainable homes more attractive to buyers.
With all these factors in play, it's no wonder that Liverpool's real estate market is seeing a growing interest in homes that are both eco-friendly and cost-effective.
Sources: JJ Smith, Renewable Energy Magazine, One Click LCA
14) Demand for co-living spaces in Liverpool will grow as people look for affordable, community-focused living options
Liverpool's property prices have been climbing steadily, making it tough for many to buy a home.
By November 2024, the average house price hit around £185,000, up 5.2% from the previous year. This surge is squeezing budgets and pushing people to look for alternatives.
Rentals aren't any easier on the wallet. Average monthly rent jumped to about £785, marking a 9% increase. These rising costs are nudging folks towards co-living spaces, which are easier on the budget.
Young professionals and students are flocking to Liverpool, drawn by its vibrant community and job opportunities. With over 70,000 students in the city, many stick around after graduation, adding to the demand for affordable living.
Co-living spaces are becoming a popular choice, offering a sense of community and shared amenities. These spaces cater to those seeking flexibility and affordability, making them an attractive option in a pricey market.
As more people look for budget-friendly and community-focused living, the demand for co-living spaces in Liverpool is set to rise.
Sources: Liverpool Housing Market Analysis & Forecast (2024 - 2025), Liverpool Property Investment (2023-2024), The rise of the UK co-living sector - Knight Frank
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) Property demand will rise in the Baltic Triangle as it becomes popular with young professionals
The Baltic Triangle is quickly becoming a favorite spot for young professionals.
In recent years, property prices in the area have jumped to an average of £230,000, marking a 6.3% increase from the previous year. This rise shows that more people are interested in buying and investing here, making it a hot market.
New residential projects like the Central Park Development and One Baltic Square are popping up, offering modern living spaces that young professionals love. One Baltic Square, a £50m project, sold out completely, highlighting just how much demand there is for homes in this vibrant area.
The Baltic Triangle is also part of a massive £128m regeneration effort, which includes a new Merseyrail train station set to open in 2027. This new station will make commuting a breeze, adding to the area's appeal for those who value easy access to transport.
Young professionals are drawn to the Baltic Triangle not just for its housing but for its lively atmosphere. The area is known for its trendy bars, creative spaces, and cultural events, making it a perfect fit for those seeking an exciting urban lifestyle.
With all these developments, it's no wonder the Baltic Triangle is on the radar for many looking to buy property. The combination of modern amenities and improved infrastructure is setting the stage for this area to become even more desirable.
Sources: The Luxury Playbook, Central Park Liverpool, The Business Desk
16) More foreign buyers will focus on Liverpool's luxury waterfront homes
Foreign buyers are eyeing Liverpool's luxury waterfront properties more than ever.
Why? Well, for starters, property prices in these areas have jumped by 5.9% in just a year. And experts predict a further 20% rise over the next three years, thanks to ongoing regeneration projects and increasing demand.
Compared to the rest of the UK, Liverpool offers a sweet deal with its affordable property prices. The city is buzzing with economic growth, and the massive £5 billion Liverpool Waters project is a game-changer. This project is set to transform the waterfront, drawing in global investors and creating around 17,000 jobs in the next decade.
But it's not just about the numbers. Liverpool is becoming a cultural and economic hotspot. With improved transport links, like the upgrades to the Merseyrail network and the new station at Liverpool Baltic Triangle, getting around is a breeze. This makes the city even more appealing to both locals and international visitors.
Imagine living in a city that's not only rich in culture but also offers easy access to other parts of the UK. That's Liverpool for you. The ongoing infrastructure projects are making it a top choice for those looking to invest in property.
Sources: The Luxury Playbook, Pitchbook Property, Track Capital
17) Demand for accessible and single-story homes in Liverpool will grow as the population ages
Liverpool's population is getting older, with a big jump in the number of retirees expected by 2031.
As folks age, they often find stairs a hassle, making single-story homes a hot commodity. These homes are not just easier to navigate but also simpler to keep up with, which is a win for those who might not have the energy for bigger places.
People in the UK are living longer, and this trend is set to continue, meaning more years spent in homes that need to be age-friendly. This longevity is pushing the demand for homes that cater to older adults.
In Liverpool, the growing number of retirees means more buyers will be on the hunt for accessible living spaces. This shift is reshaping the housing market, with a clear tilt towards properties that offer ease and comfort for the aging population.
With life expectancy on the rise, the need for suitable housing is more pressing than ever. This is not just about comfort but also about ensuring that homes can adapt to the changing needs of their residents over time.
For those considering a property investment in Liverpool, focusing on accessible and single-story homes could be a smart move. The demand is there, driven by a demographic shift that shows no signs of slowing down.
Sources: Forecast ID, Macrotrends, Knight Frank
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.