Investment in the Northern Powerhouse has never been stronger. The key cities of the Northern Powerhouse, Manchester and Liverpool, all offer some robust rental yields and growth potential for those keen to invest in some of the best buy-to-let areas. For a long time, Northern cities had been deemed less favourable when compared to Southern cities like London. As of 2025, Liverpool and Manchester are now some of the most dynamic and prosperous cities in the country. Investors and property buyers who think carefully and diversify their portfolios in cities like these can stand to make returns a lot faster than in the stagnating capital, which in many ways is still feeling the effects of the Brexit fallout.
Liverpool and Manchester have everything an investor or tenant needs in a city. From beautiful architecture, a rich culture, renowned universities, exciting business opportunities, and brilliant attractions and local amenities, the North has come a long way since the days of economic turmoil. The Northern Powerhouse is an initiative that aims to improve the cities of the North even further by investing in transport and connectivity, skills and education, economic growth, and overall quality of life for those living and working up North. For investors who are buying property in these areas at the moment, these ongoing regeneration plans are nothing but good news.
The exciting plans in place for Northern cities like Liverpool and Manchester are part of what makes them some of the best buy-to-let areas in the UK, with an optimistic outlook for capital growth. Liverpool and Manchester offer some of the highest rental yields the UK has seen as of late, with an average of 7.44% in Liverpool and 6.53% in Manchester (according to Zoopla). The price it costs to purchase a property up North plays a big part in this outcome, with property in Liverpool, for example, costing around £208,570 on average (Rightmove). To put that into perspective, that’s around £500,000 cheaper than the London alternative, which Rightmove puts at an average of £785,962.
According to the UK House Price Index, prices in Liverpool and Manchester have grown by around 36.60% and 36.55%, respectively. This increase has likely been driven by the number of people moving up North from London in recent years. With a number of exciting business opportunities available in Manchester, a lower cost of living, and better value for money regarding rental properties, it’s not hard to see why people are being drawn to the North. With its growing digital sector in the Baltic Triangle quickly becoming a go-to destination for young entrepreneurs and tech startups across the country, Liverpool is also attracting a lot of workers away from the expensive south.