Liverpool House Prices Rising Higher Than National Average

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John Brady

John Brady

John is a property writer here at RWinvest. With a close eye on property market news and updates, John writes detailed and informative articles on a range of topics that are helpful for anybody looking to invest in UK property.

Across the UK, the property market is seeing record growth in house prices. However, one city in the North-West is becoming a hotspot for the housing market.

Liverpool is seeing property prices rising far higher than the national average, shooting ahead of major cities like London to compete with other areas of the North-West like Manchester as one of England’s best property markets.

Even with this growth, properties in Liverpool are still extremely affordable compared to other areas of the United Kingdom.

With high rental yields, a thriving city centre and a lower cost of living than many other cities around the country, it is easy to see why Liverpool’s housing market is thriving.

Due to these favourable conditions, many property investors are flocking to Liverpool as an investment opportunity. With the perfect blend of rising prices, high rental yields and surprising affordability, the influx of investors is part of the reason behind Liverpool’s growth.

We’ll explain how Liverpool’s house prices are rising faster than the average, and what this means for you.

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How Fast Are Liverpool House Prices Rising?

In the last year, Liverpool has seen house prices rising at some of the fastest rates in the UK. Data from the House Price Index is showing that in the past 12 months, property prices in Liverpool have risen by 13.8%, higher than the national average of 12.8%.

This growth is even more notable compared to other cities in the UK. The Land Registry data shows that London only saw house prices rise by 8.2% in the same period. Other North-West powerhouses like Manchester rose by 10.5%.

To make Liverpool’s rising house prices stand out, cities with comparable housing markets like Birmingham only saw a rise of 9% in the past year. Even cities in Wales like Cardiff, which historically has a strong property market, are only seeing a growth of 10.7%.

Some areas of Liverpool are seeing more growth than others. The L25 postcode has seen some properties sell for over £1.8 million according to Rightmove. In the wider Merseyside area, Formby has also seen price increases.

Despite this unparalleled growth, Liverpool’s property market is benefiting from remarkable affordability. The average property price in the city is £195,28, far lower than the national average of £283,496.

When compared to London, where the average property price is £734,698, it’s clear to see why Liverpool’s house price growth is so exciting for investors.

This price growth differs slightly depending on what property type you are looking at. Semi-detached properties have an average house price of £218,621, whereas the average price of detached houses is £355,967.

The cheapest kind of property to buy in Liverpool is flats, with an average property price of £139,697. Most rental properties in the city are flats, and are a popular option for buy to let investors. Rental prices have also risen, by an average of 9.5% in the past year.

Why Are Liverpool’s House Prices Rising?

There are several key factors as to why Liverpool is seeing such an economic boom:

  • The nation’s recovery from the COVID-19 pandemic is seeing more people return to the office. Big cities are seeing population increases as more people move for work.
  • The stamp duty holiday implemented by the government last year made it more affordable to buy property, driving prices up.
  • The UK property market as a whole is seeing positive growth, as the demand for housing is far outstripping the supply.
  • There are many new builds in Liverpool. Many of these are new homes designed for first-time buyers or buy-to-let properties where property investors are making the most of the city’s high rental yields.
  • The city has numerous regeneration projects overhauling the city centre and other areas, pouring millions into Liverpool’s economy.

What Does Liverpool’s House Prices Rising Mean?

This rise in Liverpool property prices is good news for investors, as it solidifies the fact that Liverpool has one of the most exciting housing markets in the UK.

With the rising population, it is unlikely the demand for housing will slow down any time soon. This means prices will continue to show growth in the coming months.

With that being said, the rising cost of living is expected to have an impact on house prices. It is reasonable to expect the house price growth to calm down back into single digits by the end of the year.

However, prices are not expected to fall. North West house prices are expected to rise by 24.3% by 2026, as the housing market continues to grow.

If you would like to learn more about the Liverpool housing market, our guide on the area contains lots of useful information.

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