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Everything you need to know before buying real estate is included in our United Kingdom Property Pack
Liverpool consistently ranks among the UK's top cities for rental yields, and understanding where your money goes is essential if you're considering investing there.
We track the Liverpool property market closely and update this article regularly to reflect current prices, yields, and neighborhood trends.
Below, you'll find detailed data on gross and net rental yields, the best-performing areas, and the costs that affect your bottom line in Liverpool.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Liverpool.
Insights
- Liverpool's gross rental yields in 2026 range from 5.5% to 9%, with the city average sitting around 6.5% to 7%, significantly above the UK national average of roughly 5.9%.
- The L4 postcode (Anfield and Walton) delivers the highest yields in Liverpool at around 8% to 9%, driven by property prices averaging just £79,000 to £120,000 while rents remain solid.
- Liverpool's property prices average around £180,000 in early 2026, which is roughly 35% below the UK average of £273,000, creating favorable rent-to-price ratios for investors.
- The £5.5 billion Liverpool Waters regeneration project and Everton's new stadium at Bramley-Moore Dock are expected to boost property values and rents in L3 and surrounding postcodes by 5% to 15% over the next few years.
- Net yields in Liverpool typically run 1.5 to 2.5 percentage points below gross yields, landing most investors in the 4% to 6% range after accounting for management fees, vacancy, and taxes.
- Liverpool's student population of over 70,000 creates year-round rental demand in areas like L7 (Edge Hill) and L6 (Kensington), where vacancy rates often stay below 4% for well-priced units.
- Property management fees in the North West of England typically range from 8% to 12% of monthly rent for full-service management, which is lower than London's 12% to 15% range.
- Council tax in Liverpool rose by 5% for 2025/26, with Band A properties paying around £1,700 per year and Band C properties paying approximately £2,260 per year.
What are the rental yields in Liverpool as of 2026?
What's the average gross rental yield in Liverpool as of 2026?
As of early 2026, the average gross rental yield in Liverpool sits around 6.5% to 7%, making it one of the strongest-performing cities in the UK for buy-to-let returns.
Most typical residential properties in Liverpool deliver gross yields between 5.5% and 8%, with the exact figure depending heavily on the postcode and property type you choose.
Liverpool's average gross yield significantly outperforms the UK national average of approximately 5.9%, and it consistently ranks in the top five UK cities for rental returns alongside places like Sunderland and Bradford.
The single most important factor driving Liverpool's strong gross yields is the combination of affordable property prices (averaging around £180,000) and solid rental demand from a large student population, healthcare workers, and young professionals working in the growing tech and logistics sectors.
What's the average net rental yield in Liverpool as of 2026?
As of early 2026, the average net rental yield in Liverpool falls between 4% and 5.5%, which remains attractive compared to most UK cities where net yields often struggle to exceed 3.5%.
The typical gap between gross and net rental yields in Liverpool is around 1.5 to 2.5 percentage points, depending on how many costs you incur and whether you self-manage or use a letting agent.
The expense category that most significantly reduces gross yield in Liverpool is property management and letting agent fees, which typically consume 8% to 12% of monthly rent for full-service management in the North West region.
The realistic range of net rental yields for standard investment properties in Liverpool spans roughly 3.5% to 6%, with the higher end achievable in affordable high-yield postcodes like L4 (Anfield) or L7 (Edge Hill) where purchase prices are low and vacancy is minimal.
By the way, you will find much more detailed rent ranges in our property pack covering the real estate market in Liverpool.
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.
What yield is considered "good" in Liverpool in 2026?
Local investors in Liverpool generally consider a gross rental yield of 7% or higher to be "good," as this level meaningfully exceeds the city average and provides a comfortable buffer against unexpected costs.
The threshold that typically separates average-performing properties from high-performing ones in Liverpool is around 6.5% gross yield, with anything above 8% considered excellent and usually found only in regeneration areas or postcodes with lower entry prices like L4, L5, or L20.
How much do yields vary by neighborhood in Liverpool as of 2026?
As of early 2026, the spread in gross rental yields between Liverpool's highest-yield and lowest-yield neighborhoods is substantial, ranging from roughly 4.5% in premium waterfront areas to over 9% in affordable inner-city postcodes.
The neighborhoods that typically deliver the highest rental yields in Liverpool are found in postcodes like L4 (Anfield and Walton), L7 (Edge Hill and Kensington), L5 (Everton and Vauxhall), and L20 (Bootle), where property prices remain affordable and tenant demand is steady.
The neighborhoods with the lowest rental yields in Liverpool include L1 waterfront developments, premium parts of L3 (Baltic Triangle), and southern suburbs like Mossley Hill and Calderstones, where high property values compress the yield percentage despite strong rents.
The main reason yields vary so much across Liverpool neighborhoods is the gap between purchase prices and achievable rents: affordable areas with strong tenant demand (students, young professionals, hospital workers) generate higher percentage returns than expensive areas where prices have outpaced rental growth.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Liverpool.
How much do yields vary by property type in Liverpool as of 2026?
As of early 2026, gross rental yields across different property types in Liverpool range from approximately 5% for larger family homes and premium apartments to 8% or more for studios, one-bedroom flats, and terraced houses in high-demand areas.
The property type that currently delivers the highest average gross rental yield in Liverpool is the studio or one-bedroom apartment in renter-heavy postcodes, often achieving 7% to 8% due to strong rent-per-square-meter and lower total purchase prices.
The property type with the lowest average gross rental yield in Liverpool is the larger detached house or premium waterfront apartment, where purchase prices above £300,000 compress yields to around 4.5% to 5.5% even when monthly rents are strong.
The key reason yields differ between property types in Liverpool is that smaller, more affordable units attract a larger tenant pool (students, young professionals, single renters), which supports higher rent relative to purchase price, while larger or luxury properties face narrower demand and higher vacancy risk.
By the way, you might want to read the following:
What's the typical vacancy rate in Liverpool as of 2026?
As of early 2026, the typical residential vacancy rate in Liverpool for well-priced rental properties in strong locations is around 3% to 5%, which translates to roughly two to three weeks empty per year.
Vacancy rates across different Liverpool neighborhoods range from under 3% in high-demand student and professional areas like L7 (Edge Hill) and L6 (Kensington) to 8% or higher in less accessible suburbs or for overpriced properties.
The main factor driving vacancy rates in Liverpool is tenant demand concentration: areas near universities, hospitals, the city centre, and regeneration zones fill quickly, while properties in peripheral locations or those priced above market can sit empty longer.
Liverpool's vacancy rate compares favorably to the UK average, which has risen in some regions due to affordability pressures; Liverpool benefits from its relatively low rents and strong demand from students, healthcare workers, and young professionals relocating from higher-cost cities.
Finally please note that you will have all the indicators you need in our property pack covering the real estate market in Liverpool.
What's the rent-to-price ratio in Liverpool as of 2026?
As of early 2026, the average rent-to-price ratio in Liverpool is approximately 0.47% to 0.55% per month, meaning a property worth £200,000 would typically rent for around £940 to £1,100 per month.
A rent-to-price ratio above 0.5% per month (or 6% annually) is generally considered favorable for buy-to-let investors in Liverpool, and this threshold directly corresponds to the gross rental yield: a higher monthly ratio means a higher annual yield on your capital.
Liverpool's rent-to-price ratio compares very favorably to cities like London (where ratios often fall below 0.35%) and even Manchester (around 0.45%), making Liverpool one of the most attractive UK cities for income-focused property investors seeking strong cash flow from day one.
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.
Which neighborhoods and micro-areas in Liverpool give the best yields as of 2026?
Where are the highest-yield areas in Liverpool as of 2026?
As of early 2026, the top three highest-yield neighborhoods in Liverpool are L4 (Anfield and Walton), L7 (Edge Hill and Kensington), and L5 (Everton and Vauxhall), all offering gross yields that frequently exceed 7% and sometimes reach 9%.
The estimated average gross rental yield range in these top-performing areas is typically 7% to 9%, with L4 (Anfield) often leading due to property prices averaging around £80,000 to £120,000 while monthly rents hold steady at £550 to £700.
The main characteristic these high-yield areas share is affordability: properties in L4, L7, and L5 have lower entry prices than the city average, but they benefit from strong tenant demand driven by proximity to universities, hospitals, stadiums, and ongoing regeneration projects.
You'll find a much more detailed analysis of the areas with high profitability potential in our property pack covering the real estate market in Liverpool.
Where are the lowest-yield areas in Liverpool as of 2026?
As of early 2026, the top three lowest-yield neighborhoods in Liverpool are the L1 waterfront developments, premium parts of L17 (Aigburth and Sefton Park), and L18 (Mossley Hill and Allerton), where high property prices compress yield percentages.
The estimated average gross rental yield range in these low-yield areas is typically 4.5% to 5.5%, which is still respectable by national standards but below what income-focused investors can achieve elsewhere in Liverpool.
The main reason yields are compressed in these areas of Liverpool is that property prices have risen faster than rents, often driven by owner-occupier demand, lifestyle appeal, and premium specifications that don't translate proportionally into higher rental income.
Buying a property in a low-yield area is one of the mistakes we cover in our list of risks and pitfalls people face when buying property in Liverpool.
Which areas have the lowest vacancy in Liverpool as of 2026?
As of early 2026, the top three neighborhoods with the lowest residential vacancy rates in Liverpool are L7 (Edge Hill and Kensington), L6 (Fairfield and parts of Kensington), and L15 (Wavertree), where well-priced rentals typically let within days.
The estimated vacancy rate range in these low-vacancy areas is typically 2% to 4%, meaning landlords can expect properties to sit empty for only one to two weeks per year on average when priced correctly.
The main demand driver that keeps vacancy low in these areas is proximity to the University of Liverpool, Liverpool John Moores University, and the Royal Liverpool University Hospital, which creates a year-round tenant pool of students, medical staff, and young professionals.
The trade-off investors typically face when targeting these low-vacancy areas is that competition from other landlords can be high, and some properties may require compliance with Liverpool's Selective Licensing Scheme, which adds £500 to £800 in annual administrative costs.
Which areas have the most renter demand in Liverpool right now?
The top three neighborhoods currently experiencing the strongest renter demand in Liverpool are L7 (Edge Hill and Kensington), L1 and L3 (City Centre and Baltic Triangle), and L4 (Anfield), where inquiries per listing often exceed the city average by 30% to 50%.
The type of renter profile driving most of the demand in these areas includes university students, NHS and hospital workers, young professionals in tech and creative industries, and increasingly, remote workers attracted by Liverpool's affordability and cultural scene.
Rental listings in these high-demand neighborhoods typically get filled within one to two weeks, and in peak seasons (September for students, spring for professionals), well-priced properties can receive multiple applications within days of going live.
If you want to optimize your cashflow, you can read our complete guide on how to buy and rent out in Liverpool.
Which upcoming projects could boost rents and rental yields in Liverpool as of 2026?
As of early 2026, the top three upcoming infrastructure and development projects expected to boost rents in Liverpool are the £5.5 billion Liverpool Waters regeneration scheme, the new Everton Stadium at Bramley-Moore Dock, and the continued expansion of the Knowledge Quarter near the city centre.
The neighborhoods most likely to benefit from these projects include L3 (Vauxhall and parts of the city centre), L5 (Everton), L4 (Anfield for spillover demand), and L20 (Bootle), as improved transport links, new amenities, and job creation increase the area's appeal to renters.
Investors might realistically expect rent increases of 5% to 15% over the next three to five years in areas directly adjacent to these developments, based on historical patterns seen in other UK regeneration zones and the scale of investment flowing into North Liverpool.
You'll find our latest property market analysis about Liverpool here.
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What property type should I buy for renting in Liverpool as of 2026?
Between studios and larger units in Liverpool, which performs best in 2026?
As of early 2026, studios and one-bedroom apartments generally outperform larger units in Liverpool in terms of rental yield and occupancy, thanks to their lower purchase prices and strong demand from the city's large population of students and young professionals.
The typical gross rental yield range for studios in Liverpool is around 7% to 8% (earning roughly £500 to £650 per month on a £90,000 to £110,000 purchase, or approximately $115,000 to $140,000 / €105,000 to €128,000), while larger two-bedroom-plus units typically yield 5.5% to 6.5%.
The main factor explaining why smaller units outperform in Liverpool is the tenant pool composition: over 70,000 university students plus a growing young professional workforce creates intense demand for affordable, compact housing, while families seeking larger homes are more likely to buy than rent.
One scenario where larger units might actually be the better investment in Liverpool is when targeting the HMO (House in Multiple Occupation) market, where a four-bedroom terraced house in L7 or L6 can achieve gross yields of 10% or more by renting rooms individually to students or young professionals.
What property types are in most demand in Liverpool as of 2026?
As of early 2026, the most in-demand property type in Liverpool is the one-bedroom or two-bedroom apartment in city centre or university-adjacent locations, which attracts the widest range of tenants and lets fastest.
The top three property types ranked by current tenant demand in Liverpool are: first, one-bedroom apartments in L1, L3, and L7; second, two-bedroom terraced houses in L4, L6, and L15; and third, studio apartments near the city centre or university campuses.
The primary demographic trend driving this demand pattern is the combination of Liverpool's student population, graduate retention (many choose to stay after university), and an influx of young professionals attracted by lower living costs compared to Manchester and London.
One property type currently underperforming in demand and likely to remain so is the large detached house in suburban postcodes like L18 or L25, where the tenant pool is narrow and families with budgets for such properties often prefer to buy rather than rent.
What unit size has the best yield per m² in Liverpool as of 2026?
As of early 2026, the unit size range that delivers the best gross rental yield per m² in Liverpool is typically 25 to 45 square meters, which corresponds to studios and compact one-bedroom apartments that maximize rent relative to floor area.
The typical gross rental yield per m² for these optimal-sized units in Liverpool is around £12 to £16 per m² per month (approximately $15 to $20 / €14 to €18), compared to £8 to £11 per m² for larger units where the rent-per-meter drops due to diminishing returns on space.
The main reason smaller units deliver higher yield per m² in Liverpool is that tenants pay a premium for location and convenience over space, so compact flats near universities, hospitals, or the city centre command rents that don't scale linearly with size.
By the way, we also have a blog article detailing whether owning an Airbnb rental is profitable in Liverpool.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in the UK versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you’re planning to invest there.
What costs cut my net yield in Liverpool as of 2026?
What are typical property taxes and recurring local fees in Liverpool as of 2026?
As of early 2026, the estimated annual council tax for a typical rental apartment in Liverpool ranges from approximately £1,700 (Band A) to £2,260 (Band C) per year, which is around $2,170 to $2,890 or €1,980 to €2,630 at current exchange rates.
Other recurring local fees landlords must budget for in Liverpool include potential Selective Licensing fees of £500 to £800 per property (required in certain postcodes like L6, L7, and L8), plus any service charges for leasehold apartments, which can range from £1,000 to £3,000 per year depending on the building.
These taxes and fees typically represent around 8% to 15% of gross rental income in Liverpool, though the proportion varies based on property value, location, and whether the landlord or tenant is responsible for council tax under the tenancy agreement.
By the way, we cover all the hidden fees and taxes in our property pack covering the real estate market in Liverpool.
What insurance, maintenance, and annual repair costs should landlords budget in Liverpool right now?
The estimated annual landlord insurance cost for a typical rental property in Liverpool is around £200 to £400 per year, which is approximately $255 to $510 or €230 to €465, covering buildings insurance, liability, and optional rent guarantee cover.
The recommended annual maintenance and repair budget for Liverpool rental properties is typically 1% to 1.5% of property value, or roughly 8% to 12% of annual rental income, which translates to around £1,500 to £2,500 per year ($1,915 to $3,190 / €1,745 to €2,910) for a £180,000 property.
The type of repair expense that most commonly catches landlords off guard in Liverpool is boiler replacement or central heating repairs, which can cost £2,000 to £4,000 unexpectedly, particularly in older terraced houses that dominate the city's housing stock.
The total combined annual cost landlords should realistically budget for insurance, maintenance, and repairs in Liverpool is approximately £2,000 to £3,500 per property ($2,550 to $4,470 / €2,325 to €4,070), though older properties may require higher reserves.
Which utilities do landlords typically pay, and what do they cost in Liverpool right now?
In Liverpool, as in most of the UK, tenants are typically responsible for paying gas, electricity, water, and broadband, while landlords usually cover utility costs only during void periods between tenancies or for communal areas in multi-unit buildings.
The estimated monthly cost for landlord-paid utilities during vacancy in a typical Liverpool rental unit is around £100 to £200 per month ($128 to $255 / €116 to €233), covering minimum energy usage to prevent damp, maintain heating, and keep essential services active.
What does full-service property management cost, including leasing, in Liverpool as of 2026?
As of early 2026, the estimated monthly property management fee for full-service management in Liverpool is typically 10% to 12% of the monthly rent, which for an average rent of £850 means around £85 to £102 per month ($108 to $130 / €99 to €119).
The typical leasing or tenant-placement fee charged on top of ongoing management in Liverpool is around 50% to 100% of one month's rent (£425 to £850 / $540 to $1,085 / €495 to €990), though some agents bundle this into their management percentage or charge a flat fee of £300 to £500.
What's a realistic vacancy buffer in Liverpool as of 2026?
As of early 2026, landlords in Liverpool should set aside approximately 4% to 6% of annual rental income as a vacancy buffer, which accounts for the typical turnover time between tenancies and occasional marketing periods for new tenants.
The typical number of vacant weeks per year Liverpool landlords experience is around two to four weeks for well-located and correctly priced properties, though this can extend to six weeks or more in less desirable areas or for overpriced listings.
Buying real estate in Liverpool can be risky
An increasing number of foreign investors are showing interest. However, 90% of them will make mistakes. Avoid the pitfalls with our comprehensive guide.
What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about Liverpool, we always rely on the strongest methodology we can … and we don't throw out numbers at random.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source | Why it's authoritative | How we used it |
|---|---|---|
| Office for National Statistics (ONS) | The ONS is the UK's official statistics agency and provides the definitive House Price Index for England and Wales. | We used ONS data to anchor Liverpool's average property prices and track year-on-year price changes. We also used their regional breakdowns to compare Liverpool against UK averages. |
| HM Land Registry | HM Land Registry records every property transaction in England and Wales, making it the most comprehensive source for actual sale prices. | We used Land Registry data to verify postcode-level price points and identify transaction patterns. We also cross-checked reported yields against actual sale prices. |
| Zoopla | Zoopla is one of the UK's largest property portals with extensive rental listing data and market analysis tools. | We used Zoopla's rental data to calculate average rents by postcode and property type. We also referenced their rental yield estimates as a benchmark for our calculations. |
| Rightmove | Rightmove is the UK's largest property portal with comprehensive listings for both sales and rentals. | We used Rightmove to analyze asking prices, rental listings, and days-on-market data. We also used their quarterly rental reports for trend analysis. |
| HomeLet Rental Index | HomeLet processes millions of tenant references annually and publishes monthly rental data based on actual tenancy agreements. | We used HomeLet's rental index to track Liverpool rent growth and compare against regional trends. We also used their void period data to estimate vacancy rates. |
| Liverpool City Council | The official source for Liverpool-specific policies, council tax rates, and licensing requirements that directly affect landlords. | We used Council data for 2025/26 council tax bands and Selective Licensing area maps. We also referenced their regeneration plans and planning documents. |
| National Residential Landlords Association (NRLA) | The NRLA is the UK's largest landlord membership organization and conducts regular surveys on landlord costs and sentiment. | We used NRLA surveys to understand typical landlord expenses and management approaches. We also referenced their data on void periods and tenant arrears rates. |
| Propertymark | Propertymark is the professional body for letting agents and provides industry data on fees and market conditions. | We used Propertymark data to establish typical letting agent fee ranges in the North West. We also referenced their market reports for regional comparisons. |
| PropertyData | PropertyData provides postcode-level analytics combining sale prices, rents, and yields for UK investors. | We used PropertyData to identify high-yield and low-yield postcodes within Liverpool. We also used their yield calculations as a cross-check for our estimates. |
| UK Government (gov.uk) | The official source for UK government policy announcements, including housing funding and regeneration investments. | We used gov.uk announcements to verify Liverpool Waters funding and Homes England investments. We also referenced stamp duty and tax guidance for landlords. |
| Savills | Savills is a leading property consultancy that publishes authoritative forecasts and regional market analysis. | We used Savills forecasts for Liverpool price growth projections and rental market outlook. We also referenced their regional yield comparisons. |
| Ofgem | Ofgem is the UK's energy regulator and sets the price cap that determines typical household energy costs. | We used Ofgem price cap data to estimate landlord utility costs during void periods. We also referenced their energy cost projections for budgeting guidance. |
| United Utilities | United Utilities is the water provider for the North West of England, including Liverpool. | We used United Utilities tariff data to estimate water and sewerage costs for Liverpool properties. We also referenced their billing structures for landlord accounts. |
| Global Property Guide | Global Property Guide provides standardized rental yield data across countries, enabling international comparisons. | We used Global Property Guide's UK yield data to benchmark Liverpool against national averages. We also used their methodology as a reference for consistent yield calculations. |
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