Is Liverpool a good property investment? A beginner’s guide
Liverpool is rapidly evolving from its industrial, maritime roots into one of the UK’s most dynamic buy-to-let property hotspots. Driven by multi-billion-pound regeneration initiatives like the £5.5bn Liverpool Waters project and major developments across Pumpfields, the city’s footprint is actively expanding. Paired with a massive student population of over 60,000 and strong local spending power, housing demand continues to significantly outpace available supply. For investors, Liverpool offers an unbeatable combination: lower entry prices compared to regional rivals like Manchester, superior net yields, and strong projected capital appreciation across the North West over the coming decade.
Insight highlights
Major schemes like the £5.5bn Liverpool Waters project and Everton’s new Bramley-Moore Dock stadium are rapidly revitalizing the waterfront
A 60,000-strong student and young professional population drives constant rental demand that continues to outpace housing supply
Low entry costs and high yield potential make Liverpool a prime buy-to-let alternative to London and Manchester
Liverpool was a city heavily defined by its maritime past, whereas now the city's ambition puts it at the forefront of the UK property investment market.
Even with major regeneration happening across the city, there is still a severe imbalance between supply and demand, which makes it one of the best buy-to-let markets.
Regeneration reshaping the city
Liverpool Waters is one of the most ambitious regeneration projects in the UK, a massive £5.5bn 30-year plan spanning 2.3km of the city's waterfront, to create a sustainable, world-class mixed-use waterfront.
Projects are well underway, and some have been completed, including the impressive £800m Hill Dickinson Stadium. Now, the new home of Everton FC, the 52,000-seater stadium, shows how the city is attracting huge investment and is revitalising underused areas.
With the need for new homes, major projects such as the £2bn Pumpfields scheme highlight the city's productivity and advancements. Spanning 75 acres, the area is mainly a historic industrial zone, found on the northern edge of the city centre.
Pumpfields will become a highly sustainable extension of the city centre, accommodating substantial housing growth and optimising strategic economic benefits.
A new demographic shift
Liverpool boasts one of the youngest populations in the UK, hugely driven by its world-class universities attracting over 60,000 students each year. This highly educated young demographic is shifting the property and rental market and fueling economic growth.
With an outstanding lifestyle on offer, more and more people want to call Liverpool home. Liverpool City Council anticipates there will be an extra 45,000 people by the end of 2034. However, there are not enough homes to go round.
Liverpool is becoming increasingly popular with businesses and is home to an economy worth more than £18.4bn per year. The people of Liverpool also have above-average spending power, £40,392 per head compared to the national average of £35,847. That points to a vibrant, growing economy and city.
Liverpool as an investment
A large pool of young people wanting to work and live in the city, but a huge shortfall in available housing has made house prices rise. With more to come in the coming years, Savills' most recent price forecast showed the north west will see a rise of 27.6% by 2030.
Liverpool offers a much lower barrier to entry compared to hotspots such as London or neighbouring Manchester. This lower purchase price, combined with soaring tenant demand, results in superior net yields.
