Liverpool Property Market Report
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The following guide was written and produced by Julian Ramsden, director at RWinvest with over two decades worth of property knowledge in the UK buy to let market.
When it comes to UK house prices and buy to let investments, the property market in Liverpool is one of the most talked-about markets in the UK.
For property prices, Liverpool has built a reputation as one of the most affordable places to buy property in the UK.
Because of this, the city is frequented by both first-time buyers looking to get their foot on the property ladder and buy to let investors keen to maximise returns.
While things certainly looked rocky for the Liverpool property market in 2020, last year turned out to be an amazing year for the city.
The average house price in Liverpool hit new levels in 2020 with record-breaking growth, and as of 2021, Liverpool has one of the fastest-growing property markets.
If you’re interested in learning more about the property market in Liverpool with clear and straightforward information, take a look at our Liverpool property market report.
Within our Liverpool residential property market report, we look at Liverpool property price trends over the last 10 years, predictions for the Liverpool property market, and more. If this sounds useful to you, keep reading to learn all about the Liverpool property market.
1. Average Liverpool property price growth
2. Liverpool property prices: how they compare
3. Liverpool property prices by postcode
4. Liverpool rental yields
5. The Liverpool residential property market
6. The Liverpool student property market
7. Liverpool regeneration
8. Liverpool property market predictions
9. Latest property news Liverpool
10. Liverpool investment opportunities
1. Liverpool Property Price Growth
Like property prices in other UK cities, Liverpool house prices have grown gradually over the last ten years, with more significant jumps seen throughout certain periods.
Between 2010 and 2020, property prices in Liverpool have grown by 29.8% according to the Land Registry’s house prices index for Liverpool.
Average Liverpool Property Prices: 2010 – 2015
At the beginning of 2010, property prices in Liverpool were in a good place, standing at £114,246 as of January 2010.
As the year went on, the average house price in Liverpool fluctuated slightly, hitting highs of £115,450 in September, until falling to £112,532 by December 2010.
It was then onwards that Liverpool property prices experienced a decrease throughout 2011, 2012, and 2013. It wasn’t until October 2014 that property prices in Liverpool reached a level comparable to that of 2010, with a new average house price of £115,553.
By December 2015, the average property prices Liverpool offered had reached £117,761 – revealing growth of 3.07% between January 2010 and December 2015.
Average Liverpool Property Prices: 2015 – 2020
Over the next five-year period between 2015 and 2020, the average house price in Liverpool saw a steady and significant increase, with the most impressive property price growth seen in the last half of 2020.
Between January 2015 and January 2016, the average house price in Liverpool increased from £111,868 to £117,072. This equates to a growth of 4.65%, which shows that Liverpool property prices had exceeded their past five-year growth rate in just one year.
As further evidence of ongoing growth for Liverpool property prices after 2015, data from Land Registry’s house prices index for Liverpool has shown that average property prices in Liverpool increased at an even more impressive rate between 2016 and 2017.
In January 2016, the average Liverpool house price stood at £117,072. Fast forward to January 2017, and property prices averaged out at £120,122 – hitting the £120,000 mark for the very first time.
After this, property prices in Liverpool continued to grow further. Between January 2017 and January 2018, house prices increased by 6.2% on average.
From January 2018 onwards, average house prices in Liverpool increased rapidly before reaching record-breaking highs in 2020.
By December 2020, the average house price stood at £148,324. This is the highest Liverpool property prices have ever been and highlights the strength of the Liverpool property market in 2020.
Overall, between January 2015 and December 2020, property prices in Liverpool experienced a huge 32.5% five-year growth.
Are House Prices Rising in Liverpool?
Over the last 10 years, property prices in Liverpool have risen by a huge 29.8%. With average house prices standing at £114,246 as of January 2010 and reaching a record-breaking £148,324 by December 2020, it’s clear that house prices in Liverpool are rising.
What About Liverpool House Price Growth in 2021?
So, we know that the property market in Liverpool saw some amazing property price growth in 2020, with an increase of 14.2% between December 2019 and December 2020. But are house prices rising in Liverpool in 2021?
While there’s currently no data for 2021 in Land Registry’s House Price Index, the latest index from Zoopla suggests that Liverpool property prices have seen significant growth between January 2020 and January 2021.
Many experts have predicted a temporary drop in UK house prices throughout 2021 compared to the unprecedented highs of 2020. Therefore, a brief period of negative growth could be expected. This should in no way deter people from purchasing a property in Liverpool, however, with predictions for huge growth underway for the city.
2. Liverpool Property Price Growth: How it Compares
To understand property price growth in Liverpool a little better, let’s compare the average house price Liverpool offers with the average property price in other UK areas.
Property Prices Liverpool vs Average UK House Prices
As analysed in section one, between January 2010 and December 2015, five-year Liverpool property price growth averaged out at 3.07%.
While still positive growth, this increase was smaller than that seen throughout the property market in Liverpool over more recent years.
So, how does this five-year growth between 2010 and 2015 compare to average house price growth for the UK as a whole?
Between January 2010 and December 2015, UK average property prices grew by 22.3%. Evidently, this was a higher increase than that of Liverpool’s 3.07% growth during the same period.
Between January 2015 and December 2020, UK average property prices then increased by 31.9%. Interestingly, Liverpool’s average house price growth rate between the same period exceeded the UK average, with an increase of 32.5%.
Over a 10-year period between January 2010 to December 2020, UK property prices increased by an average of 50.1%. While this is higher than Liverpool’s 29.8% growth, it’s clear that Liverpool house price growth has played a big part in the UK’s overall property price growth.
Property Prices Liverpool vs Average London House Prices
The North vs South divide has been a huge topic amongst the property industry for some time, mostly due to the affordability of northern cities like Liverpool being compared to the expensive house prices of London.
To get a better idea of how different property prices are in London vs Liverpool, let’s compare average property price growth in each area over the last 10 years.
Between January 2010 and December 2015, average house price growth for London stood at 60.8%. This figure well exceeded the average growth within the Liverpool property market of 3.07%.
Over the next five years, however, Liverpool’s average growth of 29.8% exceeded London’s. Between January 2015 and December 2020, London experienced house price growth of 23.1% on average.
This meant that from 2015 to 2020, Liverpool property price growth was 6.7% higher than London house price growth.
Throughout 2020, a year in which the UK saw some record-breaking growth rates, London property prices also increased by just 3.5% from December 2019 to December 2020.
In contrast, Land Registry data records a 14.2% increase in the average property price in Liverpool during the same period.
Property Prices Liverpool vs Average Manchester House Prices
Liverpool and Manchester are, in many ways, very similar cities. Both are based in the North West region and prove to be a popular place to live for students, families, and young professionals.
One area that Liverpool and Manchester slightly differ, however, is with their property markets. While both cities have high-performing property markets, average house prices in Manchester are slightly higher than those in Liverpool.
There have also been some key differences between Manchester property price growth and the growth of property prices Liverpool has recorded over the last 10 years.
From January 2010 to December 2015, the average property price in Manchester increased by 21.1%, exceeding Liverpool’s 3.07% growth.
Over the last few years, more people have been moving outside of London and relocating to more suburban cities and towns, many of which have been in the North.Julian Ramsden, RWinvest Director
Then, from January 2015 to December 2020, 49.0% average growth was recorded for house prices in Manchester.
This means that house price growth for Manchester during this period was 19.2% higher than the rise in value for property prices seen in Liverpool.
Overall, Manchester’s average property price increased by 67.3% from January 2010 to December 2020.
While Liverpool also experienced an attractive 10-year growth rate of 29.8%, Manchester comes out on top for past long-term property price growth.
However, between December 2019 and December 2020, Manchester’s growth rate of 7.9% fell below Liverpool’s 14.2% property price growth rate. This suggests that the Liverpool property market could be quickly exceeding its North West counterpart.
3. Liverpool Property Prices by Postcode
As with any other city, the average property price in Liverpool can differ massively depending on the area you’re looking at.
Based on the current data available for properties on the market right now, Zoopla estimates that property prices in Liverpool stand at £179,599 on average.
In some postcodes, however, house prices are a lot more affordable, while in others, average property prices exceed the city’s average.
As discovered by researching current average asking prices in Liverpool, the most affordable house prices in Liverpool can be found in inner-city areas.
The lowest average property price in Liverpool is currently L5’s £111,297. Spanning Anfield, Kirkdale, Vauxhall, and Everton, L5 is a Liverpool postcode area with a low cost of living, making it popular with first-time buyers and property investors.
Liverpool city centre property prices are also lower than the average house price that Liverpool’s suburban areas might offer. Postcodes within the city centre, including L1, L6, and L7, all have average property prices of below £130,000.
This is partly because apartments are a lot more predominant in Liverpool city centre, which are typically lower priced than semi-detached or detached houses.
When you venture further into the more suburban parts of the Liverpool property market, average asking prices become higher. In L18 and L25, two of Liverpool’s most affluent postcodes, average property prices exceed £300,000.
More mid-range property prices can be found in postcodes like L15, which is home to the Wavertree area, popular with young families, young professionals, and students. Prices here average out at £155,902, which is just below the current Liverpool average asking price.
Average Asking Prices in Popular Liverpool Postcodes
Anfield, Kirkdale, Vauxhall, and Everton
Anfield, City Centre, Everton, Fairfield, Kensington, Tuebrook
City Centre, Edge Hill, Fairfield, Kensington
Allerton, Mossley Hill
Belle Vale, Gateacre, Hunts Cross, Woolton, Halewood
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4. Liverpool Rental Yields
While average property prices and Liverpool property price growth interest a wide range of people, there is an element of the Liverpool property market that appeals more closely to buy to let investors.
Rental yields are a percentage figure that investors look to as an indicator of how much money they can expect to make from their buy to let investment. Higher rental yields are preferred as they mean more significant rental returns.
One of the most attractive things about the Liverpool property market in the eyes of an investor is the rental yields available. Those questioning ‘why invest in Liverpool property‘ are often yet to learn about the lucrative yields available.
Liverpool has some of the highest rental yields in the country, having topped Totally Money’s latest rental yield postcode map thanks to yields as high as 10% in the L1 postcode.
So what is Liverpool’s average rental yield, how does it compare to rental yields in other cities, and where can you find the highest rental yields in Liverpool?
What Is the Average Return on Property Investment in Liverpool?
The average return on property investment in rental yields currently stands at 5.53% based on the latest Zoopla house price data for Liverpool. This is calculated by taking the current average asking rent of £829 a month, multiplying this by 12, and dividing by Liverpool’s average property price of £179,761.
When using the same Zoopla data to look at the average rental cost and property price for London, the average rental yield comes to just 3.43%. When looking at this data for the UK overall, the average rental yield comes to 4.73%, meaning that Liverpool’s average rental yield exceeds the UK average.
Where Can You Find the Best Rental Yields in the Liverpool Property Market UK?
To find out which Liverpool areas offer the best rental yields, we analysed average rental costs and property prices for 15 of Liverpool’s postcodes.
According to the latest Zoopla data, there are currently seven Liverpool postcodes that offer average rental yields of over 6%.
Out of the 15 postcodes analysed, the best postcodes in the Liverpool property market for rental yields are currently L7, with an average yield of 9.7%, L15, with an average 8.38% yield, L6, with an average rental yield of 7.8%, and L1 with a 7.3% rental yield on average.
5. The Liverpool Residential Property Market
If you’re a buy to let investor that doesn’t wish to purchase student accommodation, or you’re a homeowner or first-time buyer looking to purchase property to live in, the residential Liverpool property market is what you’ll focus on.
The residential housing market in Liverpool is currently thriving, with high demand fuelling growth for the average property price in Liverpool.
In fact, due to such high demand for property, many buyers have been willing to pay thousands of pounds over the asking price of homes on the market.
So what exactly is driving this demand within the Liverpool property market?
Over the last few years, more people have been moving outside of London and relocating to more suburban cities and towns, many of which have been in the North.
According to a report published in the Guardian in February 2020, 13% of people leaving London moved to the North of England in 2019. Back in 2009, only 1% of people did the same, which indicates a rising demand to live in Northern cities.
During the Covid-19 pandemic, one of the biggest property market trends has been the focus on finding homes that best suit people’s new way of life.
With national lockdowns causing bars, restaurants, and leisure attractions to temporarily shut, and many people working from home to limit the spread of the virus, a lot of people chose to buy property outside of London and instead look to more rural locations.
According to estate agents Hamptons, the Covid-19 pandemic led Londoners to buy £27.6 billion worth of homes outside of the capital – the largest amount spent since 2007.
What’s So Good About Liverpool?
So, what is it about Liverpool that makes it such a great city to live in? Not only does Liverpool offer some of the most affordable property prices in the UK, but it’s also a city with a lot to offer in terms of culture, music, business, and things to do and see.
Hailed European Capital of Culture back in 2008, Liverpool is a great city to live in for those with a passion for art, design, architecture, and more.
The city is littered with fantastic art galleries and museums such as Tate Liverpool and the Walker Art Gallery, and there are frequent events held in the city encouraging creatives to come together and network.
The Beatles, Cilla Black, and the Wombats are just a few of the big music names that have hailed from this Northern city.
For music lovers or budding musicians, Liverpool is a great place to be. Regular music events like Liverpool Sound City allow residents to enjoy the local music scene, with BBC Radio 6 music festival recently choosing Liverpool to host their 2019 event.
So many great businesses are based in Liverpool. Whether you’re interested in working with a renowned business name like Matalan, or you’re keen to work with a smaller start-up business, Liverpool has it all.
The business scene in Liverpool is one of the reasons the Liverpool property market is so strong, with high numbers of professionals looking to buy and rent in the city to take advantage of the opportunities available.
Those who are tired of paying the high living costs of cities like London are taking notice of the Liverpool residential property market for a more affordable but equally attractive way of life.Julian Ramsden, RWinvest Director
How Does the Cost of Living in Liverpool Compare to the Rest of the UK?
The cost of living in Liverpool is a huge factor that has caused more people to purchase property in the city’s residential market.
But how does the cost of living in Liverpool compare to the living costs for other UK cities? On the right-hand side is a table outlining the cost of living in Liverpool and seven other major UK cities, looking at average property asking prices, rental costs, food and drink, and transport.
As you can see, property prices and rental costs are the lowest in Liverpool. The cost of a meal in an inexpensive restaurant and a one-way public transport ticket is also cheaper in Liverpool than in many other cities.
Those who are tired of paying the high living costs of cities like London are taking notice of the Liverpool residential property market for a more affordable but equally attractive way of life.
6. The Liverpool Student Property Market
Along with boasting a buzzing residential market, another big part of the Liverpool property market is its student property appeal.
Liverpool is a major student city in the UK. The city is home to top universities, including the University of Liverpool and Liverpool John Moores, and is known for offering a lively nightlife scene. All in all, Liverpool has a reputation as a fantastic city to live in, whatever your demographic.
The student population in Liverpool stands at over 70,000. With 2020 marking a record-breaking year for UK university applications, there’s a lot of demand for high-quality accommodation for students in the area.
This has caused Liverpool to become one of the best cities for student buy to let. The Liverpool property market attracts investors from around the globe who are all keen to take advantage of high rental yields and soaring demand within the buzzing student market.
Where Do Most Students Live in Liverpool?
In Liverpool, the most popular areas to live are Liverpool city centre, inner-city areas like Kensington and Toxteth, or parts of South Liverpool such as Wavertree, Aigburth, and Mossley Hill.
In inner-city areas, including the city centre, students may look to pay a little bit more in rental costs than they would when living in a place like Wavertree, which is home to the popular student hotspot, Smithdown Road.
This is because students can live right in the hustle and bustle of Liverpool in the city centre, benefitting from being within walking distance to their university campus and local bars, shops, and attractions.
However, those studying at Liverpool Hope University or LJMU’s IM Marsh campus will benefit more from living in Mossley Hill, Wavertree, or Aigburth to be closer to their university campus.
7. Liverpool Regeneration
One of the things that can really shape the strength of an area’s property market is regeneration.
In Liverpool, ongoing regeneration schemes have given the city’s housing market a huge boost over the years, which has undoubtedly helped fuel Liverpool property price growth and encourage investment in the area.
Here is some information on both past and future regeneration schemes in Liverpool.
Without LiverpoolONE, one of the city’s most famous regeneration projects, Liverpool city centre as we know it would be unrecognisable.
LiverpoolONE is a shopping and leisure centre in the heart of the city. Having launched back in 2008, this regeneration scheme cost £960 million and has become a major attraction for the city.
The Liverpool Knowledge Quarter
The Liverpool Knowledge Quarter is located in Liverpool city centre and spans across many of the city’s most prominent university campuses. As such, the Knowledge Quarter is seen as a place for learning and innovation.
The scheme first began back in 2000 and has seen £1 billion worth of investment. Further regeneration is still ongoing, with more money yet to be spent on zones within the district, such as Paddington Village.
Project Jennifer is a regeneration scheme that focuses on the renovation and redevelopment of Liverpool’s Great Homer Street. This has involved new housing, improved transport links, new neighbourhood facilities, and enhanced public spaces.
This £150 scheme has done a lot to transform a key part of Liverpool and increased the appeal of the area as a great place to buy or rent property in Liverpool.
A future regeneration scheme set to transform the Liverpool waterfront, Liverpool Waters is a highly anticipated redevelopment project costing around £5.5 billion.
The scheme will see areas of Liverpool’s docklands, such as Clarence Dock, completely renovated with the introduction of new homes, office spaces, leisure attractions, and more. Led by the Peel Group, this scheme is set to encourage further investment and overall interest in the Liverpool property market.
8. Liverpool Property Market Predictions
Now that we’ve covered the average house price Liverpool currently offers, looked at Liverpool property price trends, and compared the property market of Liverpool with other UK cities, the next section of our Liverpool property market report will look at future growth predictions.
So, is Liverpool property price growth set to continue over the coming years? Let’s take a look at what the experts predict.
Prediction for Liverpool Property Market: Property Price Growth of Up To 27.3% By 2024
According to the latest residential property market forecast from Savills, the North West region is set to lead UK property price growth over the next four years.
By 2024, house prices in the North West are expected to have risen by 27.3%. This is higher than the growth expected for any other UK region, including London, Scotland, and Wales.
It also exceeds the UK average growth prediction of 20.4% during the same period.
Prediction for Liverpool Property Market: Liverpool Property Sales and Rental Values Set to Rise
In their latest property market forecast, JLL has predicted that by 2024, Liverpool will see numbers of property sales grow by 13.1%. The city is also expected to experience rental market growth of 14.8%.
Is 2021 a Good Year to Buy a House in Liverpool?
If you’re interested in buying a home or investing in buy to let property in Liverpool, 2021 is a great time to do so. With some amazing Liverpool property price growth in store over the coming years, those who act fast can purchase Liverpool property before prices rise.
9. Latest Property News Liverpool
If you’re interested in the property market in Liverpool, you’ll want to stay up to date with the latest property-related news and press.
Here are three of the most recent pieces of property news for Liverpool, complete with our own insight and analysis. Check this space for updates on the latest Liverpool property market news.
Should We Buy Now or Wait for House Prices to Fall? – The Guardian, 1st March 2021
The Guardian has recently published a Q and A style article regarding a question from a reader. The reader and their fiancée ask whether they should buy property in Liverpool now or wait until prices fall.
They’ve received mixed messages on whether or not Liverpool property prices will actually drop later this year, which is where their predicament lies.
In response, the Guardian suggests that the couple purchase a house as soon as possible, citing predictions for Liverpool property price growth over the coming years.
Those contemplating buying property in Liverpool in 2021 should do so without hesitation if they want to avoid paying more for their property once prices rise.
Liverpool and Manchester Continue to Lead UK House Price Growth – Buy Association, 2nd March 2021
Buy Association published a piece of property news for Liverpool that stated that Liverpool and Manchester have continued to lead UK house price growth.
The article praises the property market in Liverpool due to the most impressive rise in average property values between January 2020 and January 2021, with an increase of 6.8%.
Manchester and Leeds follow closely behind Liverpool with 6.3% and 5.5% growth.
This piece of property news for Liverpool supports the idea of Liverpool offering the fastest growing property market in the UK. It serves as further encouragement to buy property in this city before prices increase even further.
New Liverpool Property Hotspots Emerging as Agents Say 2021 is City’s ‘Time to Shine’
This article published by the Liverpool Echo explores the rise in demand for properties based in Liverpool’s Everton, Anfield, and City Dockside areas.
A representative from Entwistle Green Estate Agents mentions how the regeneration of Anfield Football Club has helped fuel investment interest in these Liverpool areas, with one Anfield terrace house selling for £15,000 over the asking price.
The article explains that other parts of the city, including Kensington and Old Swan, are also seeing a growth in property prices.
This is an informative and helpful piece of property news on Liverpool’s housing market and further enforces the Liverpool property price trend of ongoing growth and buyer demand across the city.
Liverpool is a popular spot for buy to let investment thanks to the fantastic rental yields, affordable prices, and excellent growth available.Julian Ramsden, RWinvest Director
10. Investing in the Liverpool Property Market With RWinvest
As we touched on earlier in our Liverpool property market report, Liverpool is a popular spot for buy to let investment thanks to the fantastic rental yields, affordable prices, and excellent growth available.
If you’re ready to make a buy to let purchase, the Liverpool property market for UK investors offer an unmissable opportunity.
Here are some reasons to start your Liverpool property investment journey with RWinvest.
We Offer Below-Market Property Prices Liverpool
At RWinvest, we offer some of the best Liverpool city centre property prices on the market. Thanks to below-market rates, we have units available to buy for less than £100,000, which is well below the current average property price in Liverpool.
We Offer Rental Yields of up to 8%
On properties like our new eco-friendly development, ELEMENT – The Quarter, we allow investors to generate rental yields as high as 8%. Contact us today to explore our latest opportunities and find out how you can maximise your rental income with RWinvest.
Our Properties Are Based in High-Growth Areas
All of our properties are located in high-growth areas within the property market Liverpool. ELEMENT – The Quarter, for instance, is based within Liverpool’s Knowledge Quarter, a prime city-centre regeneration zone. For optimum capital growth, don’t miss out on our current Liverpool properties.
Contact us today to speak to one of our experienced property consultants who can help make your investment dreams a reality.
DISCLAIMER: This Liverpool residential property market report was created in March 2021. Property prices regularly change, so figures for the Liverpool property market UK may be outdated when you read. Keep up to date with any information by checking out the latest property news Liverpool.