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What is happening in Liverpool’s real estate market? Are prices on the rise or decline? Is the city still a magnet for international investors? How are local government policies and taxes shaping the real estate landscape in 2025?
These are the questions we hear every day from professionals, buyers, and sellers across Liverpool and beyond. Maybe you’re curious about the same things.
We know this because we stay closely connected with local experts and people like you, exploring the Liverpool real estate market daily. That’s why we crafted this article: to offer clear answers, insightful analysis, and a comprehensive view of market trends and dynamics.
Our aim is straightforward: to make sure you feel informed and confident about the market without needing to search elsewhere. If you think we missed the mark or could improve, we’d love to hear your thoughts. Feel free to message us with your feedback or comments, and we’ll strive to enhance this content for you.
1) Foreign buyers will target properties in regeneration zones for long-term investment opportunities
Foreign buyers are zeroing in on properties in regeneration zones for their promising long-term investment potential.
Take Liverpool, for instance. Between 2023 and 2024, the city's property market saw a boom, with property prices expected to jump by 20% by 2026. This surge is largely thanks to major projects like the £5.5 billion Liverpool Waters, which is reshaping the city and driving up property values.
Foreign investors are pouring money into UK real estate, with a net investment of £21 billion since 2022. They clearly see the potential for capital growth in these regeneration zones. Government backing sweetens the deal, with initiatives like the £31 million from the Liverpool Strategic Futures Advisory Panel and a £29 million boost for Birkenhead from Homes England.
These projects do more than just raise property values. They also enhance infrastructure, create jobs, and build stronger communities, making them a magnet for investors eyeing long-term growth. Liverpool's high rental yields, ranging from 5.5% to 6.5%, are another draw, among the highest in the UK, fueled by demand from professionals and students.
In these areas, foreign buyers are not just investing in properties; they're investing in the future of vibrant, growing communities. The combination of government support, infrastructure improvements, and high rental yields makes these zones particularly attractive.
With all these factors in play, it's no wonder that foreign buyers are focusing their attention on regeneration zones as prime spots for long-term investment.
Sources: Liverpool Strategic Futures Advisory Panel: Final Report, Is Foreign Investment in UK Real Estate Rising Despite the Downturn?, Liverpool City Region and Homes England Invest £51 Million in Birkenhead Regeneration Project, Why Liverpool's Real Estate Market Should Be on Your Radar in 2024
2) Rental yields in student-heavy areas will rise due to steady demand
Properties in student-heavy areas are seeing a boost in rental yields thanks to steady demand.
In 2024, student postcodes in Liverpool stood out, with yields hitting 8.93%, which is notably higher than the city's average of 7.04%. This is largely due to the University of Liverpool's enrollment numbers, which hover around 25,000 students, including many from overseas. Students often seek off-campus housing for its independence and cost-effectiveness.
The rental market in Liverpool is thriving, especially in areas popular with students. Vacancy rates are low, and the average monthly rent has jumped by 9% compared to last year. The Knowledge Quarter, in particular, sees higher rents due to its popularity.
For those considering investing in Liverpool, it's worth noting that student demand remains strong, ensuring a reliable rental income. The city's vibrant student community continues to drive this trend, making it a promising area for property investment.
Investors are drawn to Liverpool not just for its yields but also for the consistent demand from students seeking affordable and convenient housing options. This demand is a key factor in the area's rental market dynamics.
With the University of Liverpool's large student body, the city's rental market is expected to remain robust, offering attractive opportunities for property investors looking to capitalize on the student housing sector.
Sources: Landlord Today, Amber Student, The Luxury Playbook
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 rise moderately as investment and development continue to flow into the city
Liverpool's property prices have been steadily climbing, with a notable average increase of 5.2% year-on-year as of November 2024.
Expect this upward trend to continue, as forecasts suggest a 20% rise in property prices between 2023 and 2026. This growth is fueled by ongoing regeneration projects and a rising demand for housing. One standout project is the £5.5 billion Liverpool Waters development, which is reshaping the city with new homes, office spaces, and amenities. The Central Docks area alone is undergoing a 26-acre regeneration, attracting over £550 million in private investment.
Infrastructure investments are a key driver of this trend. The Liverpool Waters project is a game-changer, not just for property values but also for the city's appeal. It's part of a broader 20-year vision for Liverpool’s waterfront, which includes ambitious projects like the new Everton Stadium and the Isle of Man ferry terminal. These developments are drawing growing interest from international investors, eager to be part of Liverpool's transformation.
For those considering buying property in Liverpool, these projects are more than just construction sites; they're a sign of the city's vibrant future. The regeneration efforts are not only enhancing the city's skyline but also boosting its economic prospects. With such significant investments, Liverpool is becoming a hotspot for both local and international buyers.
As the city continues to evolve, the property market is expected to remain robust. The combination of infrastructure improvements and increased investor interest is setting the stage for a thriving real estate market. If you're thinking about investing in Liverpool, now might be the perfect time to get in on the action.
Sources: Pitchbook Property, Environment Energy Leader, The Luxury Playbook
4) Affordable housing projects will stabilize prices in some areas, preventing sharp rises
In Liverpool, affordable housing projects are key to stabilizing property prices.
The city council is on a mission to build 2,000 new homes each year by 2030, with a big chunk being affordable. This plan is set to double the percentage of affordable homes in new builds from 11% to 22%. By doing this, Liverpool aims to ease the pressure on the housing market, making price growth more predictable.
Looking back, Liverpool's property market has been pretty steady. Since 2014, the average property price has grown by 4.4% per year, avoiding those nasty price spikes. This stability is partly thanks to big projects like Liverpool Waters, which have not only boosted property values but also increased affordable housing options.
These affordable housing efforts are crucial because they help balance supply and demand. When there's more housing available, it meets the high demand, which is essential for keeping prices from shooting up.
For potential buyers, this means a more predictable market. You won't have to worry about sudden price hikes, making it easier to plan your investment.
So, if you're thinking about buying property in Liverpool, these affordable housing projects are something to keep an eye on. They could make a big difference in how the market behaves in the coming years.
Sources: Liverpool Express, PBC Today, Flambard Williams, PitchBook Property
5) City center rents will rise as more people seek the convenience of living near work and amenities
Rental prices in Liverpool's city center have surged in recent years.
Specifically, the annual rates for apartments have jumped by 10% to 12%, which is significantly higher than the national average rental growth of 5.1%. This increase is largely due to the growing demand for city center apartments. Many people are eager to live in these areas, and this high demand has resulted in attractive rental yields that haven't been seen in over a decade.
With strong market activity and limited available properties, tenants are more inclined to stay longer and pay higher rents. One of the key reasons for this increased demand is the preference for urban living, especially among young professionals. They are drawn to the convenience of living close to work and the various amenities that city centers offer.
Additionally, Liverpool's city center has been experiencing growth in employment opportunities, which naturally attracts more residents who want to live near their workplaces. This trend is particularly notable as more people seek the convenience of living close to work and amenities. The city's vibrant cultural scene and nightlife also add to its appeal, making it a hotspot for those looking to enjoy a dynamic lifestyle.
As more people flock to the city center, the competition for available apartments intensifies, pushing rents even higher. This is a trend that is expected to continue as Liverpool continues to develop and expand its urban offerings. The limited supply of housing in the city center further exacerbates the situation, making it a landlord's market.
Sources: Place North West, CRE Daily
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6) Liverpool will attract more foreign investors as its cultural and business reputation grows
Liverpool is becoming a hotspot for foreign investors thanks to its growing cultural and business reputation.
In 2023, Liverpool was ranked as the UK's 16th-best city for attracting Foreign Direct Investments (FDIs), showing a clear upward trend from the previous year. This means more international investors are eyeing the city, drawn by its potential and opportunities.
The local government is actively pushing this growth. The Metro Mayor has set a goal to boost FDI by 30% by 2030, with a focus on innovation and new technology. Liverpool has also been named an Investment Zone, especially in the life sciences sector, which is expected to bring in significant investment and create thousands of jobs.
Infrastructure is another key factor. The Liverpool City Region Freeport, launched in 2023, is expected to generate substantial economic benefits, including new jobs and increased investment. This makes Liverpool even more appealing to overseas investors.
Liverpool's vibrant cultural scene, with its events and festivals, along with strong sectors like life sciences and gaming, further enhances its image as a lively cultural and business hub. These elements are crucial in making Liverpool a top choice for foreign investors.
With all these developments, Liverpool is steadily rising as a desirable destination for international investment, promising growth and opportunities for those looking to invest in the UK.
7) Foreign buyer interest will temporarily decline in some areas due to Brexit-related uncertainties
Brexit uncertainties have cooled foreign interest in UK properties, especially in places like Liverpool.
In 2023, the UK real estate market experienced its second-lowest investment level in a decade, with foreign purchases plummeting by 44% compared to the previous year. This drop is largely due to the ongoing Brexit-related uncertainties that have made investors wary.
The Trade and Cooperation Agreement (TCA) has added new hurdles, like customs checks and extra paperwork, which have slowed down transactions and made the process more complicated for foreign buyers. Smaller firms have been hit hard, with some even halting exports to the EU since the TCA was implemented.
Media reports frequently highlight the economic uncertainties tied to Brexit, which have shaken buyer confidence. This has led to a temporary dip in foreign interest in areas such as Liverpool. Stories of foreign investors pulling back or delaying property deals in the UK due to these uncertainties are becoming more common.
These complexities and uncertainties are making foreign buyers think twice before investing in UK real estate. The situation is particularly challenging for smaller investors who find the new trade barriers daunting.
While some areas are feeling the pinch, others might see opportunities as the market adjusts. However, the overall sentiment remains cautious, with many waiting to see how Brexit will continue to unfold.
Sources: CBRE, LSE, Market Screener
8) City center properties will remain in high demand for the convenience of urban living
Properties in the city center will continue to be in high demand due to the convenience of urban living.
In Liverpool, the city center has become a hot spot for property investment. Property prices surged by 13.7% in 2021 and have kept a steady growth of 9% since then. This shows a strong market where buyers are eager to invest, thanks to the area's charm and potential for good returns.
Investors are particularly drawn to the city center because of its impressive rental yields. For instance, areas like L1 offer yields of 6.56%, while L3 provides 5.86%. These numbers are quite appealing compared to the suburbs, making the city center a prime choice for those seeking reliable returns.
High occupancy rates in city center apartments highlight the demand, as people love being close to cultural spots, transport links, and a lively social scene. Young professionals and first-time buyers are especially keen on urban living in Liverpool's city center, finding it both affordable and trendy.
The proximity to major employers and business districts, such as Liverpool Waters and the Knowledge Quarter, is a big draw. Residents enjoy the convenience and career opportunities that come with living near these hubs, making the city center an attractive place to settle.
Surveys reveal a growing preference for this lifestyle, supported by the area's affordability and the trend of urban living. The city center's appeal is further boosted by its vibrant atmosphere, making it a magnet for those seeking a dynamic lifestyle.
Sources: Advantage Investment, RW Invest
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) Suburban rents will stay stable as demand moves to urban areas
Rental demand in Liverpool is shifting towards urban areas, with city apartment rates climbing by 10% to 12% annually.
Projects like the Liverpool North initiative are reshaping the city by adding over 10,000 new homes, boosting both housing quality and economic growth. These developments make urban living more appealing, potentially keeping suburban rents stable as fewer people seek homes outside the city.
The remote work trend is also influencing this shift. With more flexibility, younger people are opting for urban areas that offer better amenities and a vibrant lifestyle. This preference is reinforced by improved public transport, such as the £110m investment in Liverpool's bus network, making city life more accessible.
Urban areas are becoming increasingly attractive due to these enhancements, drawing residents away from suburban living. This shift in preference helps maintain stable suburban rents, as the demand for city living continues to rise.
As urban areas develop, the appeal of city life grows stronger, with more people choosing the convenience and excitement of urban environments over suburban settings.
Sources: Place North West, The Guide Liverpool, Growth Platform, Lynas Vokes
10) Rents will increase in areas with new developments as they become more attractive
Rents are rising in areas with new developments as these locations become more attractive.
Take Liverpool Waters, for instance. This massive £5 billion project has not only transformed the skyline but also boosted property values and rental demand. With new homes, office spaces, and amenities popping up, the area has become a magnet for renters, driving up rental yields.
Then there's the Baltic Triangle, a hotspot for regeneration. It's become a favorite among young professionals and students, leading to higher rental prices as its popularity soars. These areas show how new developments can breathe life into neighborhoods, making them more desirable and pushing rents upward.
Demographic shifts are also at play here. As higher-income residents flock to places like Liverpool Waters and the Baltic Triangle, rental demand naturally increases. This trend is amplified by a growing population and the influx of young professionals and students, especially around the city center and waterfront districts.
In Liverpool, these changes are reshaping the rental landscape. The city is seeing a surge in interest, particularly in newly developed areas, which are becoming vibrant hubs of activity. New developments are not just about buildings; they're about creating communities that attract people and drive up demand.
As these areas continue to evolve, the appeal of living in such dynamic environments is undeniable. The combination of modern amenities, strategic locations, and a lively atmosphere makes them irresistible to many. Rents are likely to keep climbing as more people seek to be part of these thriving communities.
Sources: Romal Capital, The Luxury Playbook
11) Virtual reality tours will increasingly attract tech-savvy buyers in property marketing
Virtual reality tours are now a must-have in property marketing, especially for tech-savvy buyers.
Back in 2023 and 2024, there was a big change in how homes were shown, with over half of adults taking virtual tours. This shift happened because 67% of home buyers wanted listings with virtual tours, showing a clear demand for these immersive experiences.
During this time, younger millennials, known for being the most educated group, were leading the home-buying trend. These tech-savvy individuals naturally leaned towards VR technology, as they were already used to digital and immersive experiences in other parts of their lives. This change in buyer demographics was key to the rise of VR tours in real estate.
The real estate industry saw a boom in agencies offering virtual reality tours. Companies like Redfin started using VR technology to make home searches more engaging and accessible. Partnerships between real estate firms and VR tech companies made these tours more affordable and widespread.
Sources: PhotoUp, NAR Realtor, The Luxury Playbook
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12) Waterfront areas will see rising demand as new developments boost the appeal of living by the Mersey River
The waterfront areas in Liverpool are buzzing with new life thanks to major investments in infrastructure and amenities.
Projects like the massive £5.5 billion Liverpool Waters are turning the docklands into a hot spot, complete with new residential and leisure spaces. Imagine living near a cruise liner terminal or catching a game at Everton FC’s new stadium at Bramley-Moore Dock. These developments are making the area a magnet for potential residents.
Property prices in these waterfront areas are on the rise, mirroring their growing allure. Over the last ten years, Liverpool has seen a 63.4% jump in average property prices, with waterfront spots leading the charge. This surge is fueled by big investments and developments in places like Princes Dock and Central Docks, which are pushing property values up.
New residential and commercial projects are also driving up demand. Take Princes Dock, for example; it’s now a lively community blending residential and commercial spaces. Meanwhile, Central Docks is gearing up for a major facelift with plans for thousands of new homes and commercial spaces. These changes are drawing more people to the waterfront.
With all these exciting developments, the waterfront areas are becoming increasingly desirable. The appeal of living by the Mersey River is only set to grow as new projects continue to enhance the area.
Sources: Peel Waters, Invest Liverpool, IP Global
13) Toxteth will see renewed property interest as community-led initiatives enhance the neighborhood
Toxteth is buzzing with community-led projects that are breathing new life into the neighborhood.
Take the Urbanscape community garden, for instance. Once just derelict land, it's now a vibrant space that not only beautifies the area but also brings residents together. Local government funds are backing these efforts, showing a real commitment to making Toxteth a better place to live.
Infrastructure is getting a facelift too. The £4 million project to spruce up Princes Avenue and Princes Road is a game-changer. With improved cycle paths and open spaces for events, the area is becoming more attractive to both residents and businesses. The Welsh Streets are also seeing a transformation, with old terraced houses turning into modern homes, drawing in young professionals and families.
Media coverage is adding to the buzz, shining a spotlight on Toxteth's makeover. This kind of attention is a magnet for investors and new residents, which could further boost property interest. The potential for capital appreciation and competitive rental yields makes Toxteth a hot spot for property developers and investors.
With all these changes, Toxteth is on the brink of a revival. Community initiatives and infrastructure upgrades are setting the stage for a surge in property interest. It's a neighborhood on the rise, thanks to the collective efforts of its residents and supportive local government.
So, if you're thinking about buying property in the country, keep an eye on Toxteth. The area is ripe for investment, with a promising future ahead.
Sources: API Global, Liverpool City Region CA, Liverpool City Region CA
14) Property interest in the Baltic Triangle will surge as it gains a reputation as a creative and digital hub
The Baltic Triangle in Liverpool is buzzing with property interest thanks to its growing reputation as a creative and digital hub.
In recent years, property prices in the Baltic Triangle have surged, outpacing other areas in Liverpool. This boom is largely fueled by the influx of creative and digital industries that have made this area their home. The neighborhood's transformation is evident with £128 million already invested and another £62 million in the pipeline, signaling strong confidence in its future.
New projects are popping up, like Torus's £9.8 million residential development and Baltic Ventures' £4.1 million accelerator program, which are drawing in both investors and businesses. These developments are not just about buildings; they're about creating a vibrant community where innovation thrives.
The area is bustling with over 150 businesses in the creative and digital sectors, from tech start-ups to digital agencies. This concentration of talent and innovation is a magnet for entrepreneurs. In 2023, Baltic Ventures unveiled its first cohort of nine tech start-ups, chosen from over 200 applications, highlighting the area's appeal as a launchpad for new ideas.
For those considering a property investment, the Baltic Triangle offers a unique blend of opportunity and community. It's not just about the numbers; it's about being part of a dynamic and forward-thinking neighborhood. The area's reputation as a creative and digital hub is only set to grow, making it an exciting prospect for potential buyers.
Sources: Invest Liverpool, The Sharp Project, World's Best Cities, RW Invest, Baltic Creative
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) Rents in student areas will rise as universities grow and draw more students
Rents in student areas will increase as universities expand and attract more students.
In Liverpool, both the University of Liverpool and Liverpool John Moores University are on a growth spree. The University of Liverpool is involved in the Paddington South development, while LJMU is planning major campus transformations. These expansions are not just about new buildings; they’re about welcoming more students, which means more people looking for places to live.
With more students flocking to the city, the demand for student accommodation is skyrocketing. This surge is evident from the significant rise in searches for student housing in Liverpool, making it one of the hottest spots in 2024. Landlords are quick to notice this trend and see it as a golden opportunity to raise rents.
Reports and surveys have painted a clear picture: there's a shortage of available student housing in Liverpool. This means not enough beds for all the students, leading to fierce competition for the available spaces. In this scenario, landlords can charge higher rents, knowing students are eager to secure a spot.
As universities continue to grow, the local housing market feels the pressure. Students are willing to pay more to ensure they have a place to stay, which only fuels the cycle of rising rents. The expansions by these universities are a double-edged sword, offering more educational opportunities but also driving up living costs.
In the end, the student housing scene in Liverpool is a landlord's market, with demand far outstripping supply. This dynamic is set to continue as long as the universities keep expanding and attracting more students.
Sources: University of Liverpool News, LJMU News, The Tab, HEPI
16) Anfield properties will gain appeal with ongoing regeneration projects and better local amenities
Properties in Anfield are becoming increasingly attractive due to ongoing regeneration projects and improved local amenities.
The Anfield Regeneration project, which kicked off in 2013, has been a game-changer for the area. It has already delivered over 600 new homes and refurbished 500 existing ones, with a goal of creating 1,000 new homes in total. This transformation is making Anfield a hot spot for potential buyers.
With a £300 million investment in infrastructure, Anfield is seeing a significant boost in quality of life. Stanley Park has been revitalized, and environmental street works have added a fresh vibe to the neighborhood. The stadium upgrades are also a big draw, making the area more vibrant and appealing.
Transport improvements are another feather in Anfield's cap. Streets like Walton Breck Road and Oakfield Road have been upgraded, making the area more accessible and safer for both residents and visitors. This ease of access is a major plus for anyone considering a move to Anfield.
The local economy is buzzing with new businesses and retail outlets popping up as part of the regeneration program. A new public square with commercial and retail spaces, along with enhanced community facilities, is boosting Anfield's economic potential. This commercial growth is attracting more homebuyers and investors.
Positive media coverage is shining a light on Anfield's transformation, drawing even more interest from potential buyers. The buzz around the area's development is hard to ignore, making it a prime location for property investment.
Sources: Place North West, This is Anfield, Pitchbook Property, UNA City, The Guide Liverpool
17) Demand for energy-efficient properties will rise as sustainable living becomes more popular
Sustainable living is reshaping the real estate market, especially in places like Liverpool.
In Liverpool, over 40% of renters are willing to pay more for energy-efficient homes, according to Centrick. This trend shows that people are looking for homes that save on energy bills in the long run. It's not just about saving money; it's about making a smart investment for the future.
The government is also pushing for greener homes. The Liverpool City Region's Future Homes LCR plan is a big deal, aiming to create homes with zero energy bills by using solar panels, heat pumps, and batteries. This initiative is a response to climate change concerns and is making sustainable living more accessible.
Surveys show that 83% of renters prioritize energy efficiency when choosing a home. This preference is driving up the value of energy-efficient properties, making them hot commodities in the market. People see these homes as valuable assets that are worth the investment.
The media is playing its part too. By highlighting the benefits of energy-efficient homes, they are raising public awareness. These homes are seen as a way to reduce carbon footprints, which appeals to those who care about the environment.
As more people become aware of the benefits, the demand for energy-efficient homes is likely to grow. This shift towards sustainable living is not just a trend; it's becoming a standard expectation in the housing market.
Sources: Centrick, The Guide Liverpool, Liverpool Express
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.