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Liverpool Property Market Forecast 2023

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    Everything You Need to Know About the Liverpool Property Forecast

    If you are considering Liverpool buy-to-let investments, you’ll want to keep an eye on local housing market projections.

    Whether you need to know the future of Liverpool property prices or the rental market predictions for the next few years, this information will help you make better investment decisions and facilitate healthy capital appreciation.

    There are many places to invest in Liverpool. This guide will give you an idea of prices and rental yields. Where are the best areas to buy an investment property? And which areas should be avoided?

    We’ll look at all this and more in our Liverpool property market forecast. In addition, we’ll dive into the past and see if we can learn anything about Liverpool’s housing price growth in years gone by.

    Read on for more information.

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    Liverpool Property Market at a Glance

    • Average Property Price – £177,224
    • Average Monthly Rent – £1,058
    • Average Gross Rental Yield – 7.16%

    The average property price in Liverpool is well below the overall UK average of £289,824. The average monthly rent is also cheaper than the UK average, which stands at £1,261.

    Using averages from the UK House Price Index and, the average UK gross rental yield is 5.2%, falling short of Liverpool’s yield by 2%.

    Learn more with our UK House Price Guide for an in-depth breakdown of the overall market.

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    Current Liverpool Property Prices

    According to the HM Land Registry UK House Price Index, the average Liverpool property price stands at £177,224.

    Let’s look at different property types in greater detail:

    Property TypeAverage Property Price
    Flats and maisonettes£134,455

    Source: HM Land Registry (July 2023)

    It’s important to remember that the average house price changes according to the index. For instance, Liverpool properties on Rightmove see prices at a higher average – totalling £212,528.

    Property Type (Rightmove)Average Property Price
    Flats and maisonettes£137,692

    Source: Rightmove (October 2023)

    As you can see, flats and terraced properties sit at a similar average. However, Rightmove suggests semi-detached property prices are around £18,000 more expensive than Land Registry figures.

    In 2023, new properties for sale in Liverpool saw significant price growth deceleration. Currently, price growth sits at 0.80%. However, 12 months ago, yearly price growth was a much higher 8.30% per HM Land Registry.

    Interestingly, Rightmove states that the average detached price is £321,844 – roughly £45,000 cheaper than Land Registry stats.

    Overall, demand for apartments for sale in Liverpool remains high, with buyers drawn into the city’s thriving culture, reasonable living costs, and transport links to cities such as Manchester, Birmingham, and London.


      House models with up arrow

      Current Liverpool Rental Market says the average Liverpool rental cost in October 2023 is £986 PCM.

      Interestingly, flat and maisonette rental costs more than houses per’s data, while rooms are significantly cheaper than both.

      Property TypeAverage Rent
      Room£619 pcm
      Flat£1,150 pcm
      House£1,019 pcm

      Source: (October 2023

      If we take the HM Land Registry property value and the rental market, the average rental yield in Liverpool is 7.16%.

      However, some areas will offer significantly higher yields. Read our updated guide to find the best type of property to invest in the UK.

      The table below shows some of the best-yielding areas in Liverpool:

      PostcodeAverage Rent (PCM)Average Property PriceAverage Rental Yield

      Average prices found on Rightmove. Average rent taken from Figures were accurate in October 2023. Yields are only an estimate and may vary.

      Notably, the UK average rental yield is around 5.19%. As you can see from the table, Liverpool’s top rental areas all surpass the national average.

      With rents only expected to increase further, those yields may rise over the next few years.

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        Liverpool Property Market Predictions

        Property prices and rental yields have grown consistently over the last two decades. In addition, rental yields have remained above the norm as well.

        But will this growth continue through the rest of 2023 and beyond?

        Let’s take a deep dive into what the experts predict for the Liverpool property market.

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        Future Liverpool Price Growth Predictions

        Experts predicted UK house prices would drop 5-10% at the start of the year due to the cost of living crisis and rising interest rates.

        Savills estimated that prices would fall by 10%. However, Zoopla estimated a more modest 5% fall.

        In their September House Price Index, Nationwide stats showed that house prices had fallen by 5.3%.

        However, Zoopla’s index predicted UK property sales would reach one million by the end of the year – this is roughly 20% of the 2022 sales figure.

        Experts expect property prices to stagnate in 2024. However, 2025 could see prices improve, provided interest and inflation return to less severe levels. Learn more about this with our UK interest rate forecast for the next 5 years.

        Savills estimates a house price rise of 7% in 2026. However, other experts are more pessimistic. OBR predicts a 3.5% rise in UK property prices, while Statista predicts an increase of 1.7% between 2023 and 2027.

        This would mean growth is slower than between 2008 and 2022, but the price decline is expected to decrease sooner rather than later.

        But what about Liverpool and the rest of the North West?

        The North West is predicted to enjoy the joint-best capital growth out of any region. The current prediction is 11.70% by 2027.

        Let’s look at how this compares to the overall UK region:

        20232024202520262027Five years to 2027
        North West-8.50%2.50%4.50%7.50%6.00%11.70%

        Source: Savills Regional Mainstream Forecast (November 2022)

        As you can see, the North West is predicted to enjoy 5.5% more growth than the overall UK average, making it one of the most promising buy-to-let markets in the country.

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        Future Liverpool Rental Growth Predictions

        According to Statista, the rental growth rate in the UK is expected to increase by 18%.

        Interestingly, the growth is expected to be stronger throughout the rest of 2023 and 2024.

        ONS data from September 2023 showed that rental prices increased by 5.5% on average over the last year.

        Statista expects a 4% rental rise in 2024 alone due to the current cost-of-living crisis.

        Typically, in these cases, as interest rates decrease, more people can climb the housing ladder, slowing rental growth.

        Savills predicts a 6.5% rise in rental growth in 2024 before slowing in 2025. They expect renters will return to committing the same proportion of their wages on property costs as they did in the mid-2010s. They also predict a compounded rental rise of 18.3% across the UK, excluding the London property market.

        Like the rest of the United Kingdom, the Liverpool rental market is expected to remain resilient for the foreseeable future.


          Airbnb app on a mobile phone right next to a house model

          Past Liverpool Property Market Performance

          The Liverpool property market underwent significant changes over the past few years.

          At the beginning of 2020, Boris Johnson’s landslide victory caused optimism among forecasts. However, COVID-19 ushered in a slump from March 2020, threatening a housing market crash.

          In July 2020, Savills recorded a 60% increase in UK property following the introduction of the Stamp Duty holiday.

          These figures were echoed in the Liverpool property market, which saw a 14.75% price increase by December 2020.

          A year later, property prices had risen by another 7.98%. Additionally, December 2022 saw Liverpool property prices enjoy a yearly rise of 11.90%.

          However, rising inflation due to extraneous factors caused the Bank of England to raise interest rates. As such, price growth began to slump in 2023 as fewer people could afford to purchase properties.

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            Where Are the Best Areas in Liverpool to Invest in?

            Liverpool is a city on the rise. With the North West expecting serious growth by 2027, property investors today rightly look to Liverpool and Manchester for exciting buy-to-let opportunities.

            Many areas are on the cusp of enormous growth. These locations may be an excellent place to start if you are a first-time buyer in the city or looking to expand your portfolio further.

            These areas include:

            Baltic Triangle

            Since 2012, the Baltic Triangle has undergone many regenerative changes. According to The Times, substantial investment has transformed the area into one of the “coolest places to live”.

            Roughly £128 million worth of investment has gone into the Baltic Triangle regen, with more capital expected for the district in the future.

            Investment has created 500 new jobs, with another 800 on the way. Major regeneration in Liverpool includes re-opening St James station, making the area more accessible to visitors and commuters.

            In 2020, a master plan detailed the Baltic Triangle’s regeneration pathway. This included the train station, a public park, and green corridors. These changes ensure the area will continue to thrive for years to come.

            Notable development projects include One Baltic Square and Parliament Square. These apartment blocks offer stunning amenities and proximity to the waterfront and the trendy bars that make the Baltic Triangle popular with young professionals.

            For more on this area, take a look at our recent RWinvest Baltic Triangle Guide.

            Knowledge Quarter

            Liverpool has four top universities – three of which have city centre campuses. This area is known as the Knowledge Quarter – a health, technology, and science innovation hub.

            The Knowledge Quarter has enjoyed significant investment since 2000. More than £1 billion has been injected into the area, promoting business investment that targets the 70,000 students calling Liverpool their home.

            In collaboration with the Liverpool City Council, the area aims to close the divide between North and South England’s economies.

            One of the top residential developments in the area is Element The Quarter, the first eco-development in Liverpool.

            This complex utilises sustainable technology and is well situated in the heart of the Knowledge Quarter, only minutes from the University of Liverpool campus, Royal Liverpool Hospital, and the exciting student village.


            Liverpool Property Market Forecast Summary

            The Liverpool Property Market has handled the economic crisis remarkably well. A careful examination of future predictions suggests that price growth will return to higher levels within the next few years.

            As standard, the North West continues to stand firm with strong rental yields and good value properties, making the area particularly attractive to those seeking passive income investments.

            Explore the rest of the RWinvest website for more property news and insights. Consider our London 2023 Market Forecast for another look at the UK Housing Market.


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            Dale Barham

            Dale is a property content writer at RWinvest. Keeping a close eye on the UK property market, Dale helps our readers stay informed and up to date on the latest market news and statistics.