Liverpool Property Investment: Complete 2021 Guide

Long gone are the days when London was considered the only worthwhile UK city for buy to let investment. Now, Northern cities like Liverpool and Manchester have taken the spotlight thanks to the amazing opportunities on offer.

If you’re a property investor who’s looking to make a high return on investment through rental returns and capital growth, Liverpool is a city that should be on your radar.

In our guide to Liverpool property investment, we cover some of the reasons why you should invest in Liverpool, and offer advice on how to make a lucrative buy to let investment in this brilliant UK city. Keep reading to learn more.

Why Choose Property Investment in Liverpool? 

So why is Liverpool property investment a good idea? And what makes Liverpool buy to let stand out compared to investments in other UK cities? In a nutshell, here are some key reasons to consider Liverpool investment:

• Liverpool property investment offers some of the very best rental yields in the country. In certain areas, you can expect average yields of up to 10%.
• Liverpool has one of the fastest-growing UK populations and is incredibly popular with student and young professional
• Liverpool house prices are seeing some huge growth, with predictions for even more impressive capital growth rates over the coming years!

Got your attention? Keep reading for more information on all of the things that make Liverpool property investment such a promising venture.

Rental Yields for Buy to Let in Liverpool 

Totally Money’s rental yield map offers a detailed analysis of some top buy to let hotspots across the UK. In the list of the top 25 places to invest, the number one area is Liverpool’s L1 postcode. Five other postcodes in Liverpool also make the top 25 list.

Based in the city centre, L1 offers buy to let rental yields of 10% on average, while other Liverpool postcodes like L6 and L11 can offer yields of over 8%.

When you think about the fact that a good rental yield is typically accepted at around 6%, the yields available through the Liverpool buy to let market are truly second to none!

Demand for Rental Properties in Liverpool 

Liverpool is a great city to live in and boasts one of the fastest-growing city-centre populations.

To make a successful buy to let investment, you need to generate a lot of demand for your property. Luckily, whether you’re investing in student accommodation or a stylish city-centre apartment, you can expect heaps of interest in Liverpool.

Liverpool has a large student population and is home to over 70,000 students, offering one of the UK’s best student nightlife scenes and some world-class educational institutions like the University of Liverpool, Liverpool John Moores University, and Liverpool Hope University.

Liverpool property investment is also a popular choice for those looking to attract young professional tenants. The city is filled with some fantastic business opportunities, with a mixture of big names like Matalan and Shop Direct, and a great start-up scene.

What Makes Liverpool a Great UK City? 

Ranked as the third best city in the UK by Conde Nast in 2019, Liverpool is an all-round fantastic place to live. Here are a few of the reasons that make Liverpool so great.

Liverpool Has a Rich Cultural Scene 

One of the reasons Liverpool boasts a growing population is thanks to the amazing cultural scene on offer.

Even before winning European Capital of Culture back in 2008, Liverpool has been steadily gaining a reputation as one of the best cities for art, music, theatre and more.

As the birthplace of the Beatles, Echo and the Bunnymen, and many other big names in music, Liverpool hosts regular music events such as Liverpool International Music Festival.

Famous museums and art galleries are scattered across the city centre, including the Tate Liverpool, the Liverpool World Museum, and the Walker Art Gallery.

Liverpool Biennial, an annual contemporary art festival, is the UK’s largest festival of its kind and showcases the work of a whole host of talented artists from around the world.

It comes as no surprise that Liverpool regularly attracts high numbers of tourists who are keen to take advantage of everything the city offers.

Home to Liverpool FC and Everton FC, many football fans worldwide head to Liverpool to experience the unforgettable atmosphere of the city’s iconic football stadiums.

 

Regeneration Is Encouraging More People to Invest in Liverpool 

Part of the reason why Liverpool has become the fantastic city it is today is through regeneration. Over the last few decades, Liverpool has come a long way thanks to widespread regeneration projects, which has, in turn, increased the appeal of Liverpool property investment.

One of the most notable regeneration schemes in the city was the Liverpool One redevelopment scheme. This project cost around £960 million and is now one of the city’s premium shopping and leisure attractions.

Billions have already been invested into this city over the years, particularly in key areas like the Liverpool Knowledge Quarter and the Baltic Triangle which are home to some of the most expansive regeneration schemes of recent years.

An exciting project planned for the city is Liverpool Waters, a regeneration scheme worth £5.5 billion, which will transform parts of the Liverpool waterfront and introduce new housing, workspaces, and more.

Regeneration plays a huge part in a city’s capital growth potential. With some extensive schemes still in the pipeline, be sure to check out Liverpool property investment opportunities for some strong capital appreciation.

How to Invest in Liverpool Property 

Now that you’ve learned a little more about Liverpool and why Liverpool property investment is such a popular option, you may be looking for information on how to invest in Liverpool buy to let property.

From learning about the best buy to let areas in Liverpool to thinking about the type of Liverpool investment property to purchase, here’s some key information that you should know before getting started.

 

Explore the Different Types of Buy to Let in Liverpool 

If you’re looking to invest in Liverpool, you need to think about the different types of property available to work out which one suits you best.

In buy to let, there are two main property types that investors tend to choose:

• Residential property investment – The more traditional type of buy to let property, which is usually rented out to tenants such as young professionals or young families.
• Student property investment – Like residential property investment but with student tenants as your sole target market. Student buy to let properties are most commonly found in areas close to universities such as the city-centre.

For Liverpool property investment, both student and residential buy to let make a lucrative option. As mentioned earlier, both the student scene and the young professional scene in Liverpool are booming.

Those who invest in Liverpool buy to let can expect a lot of consistent rental demand on top of high rental yields and strong growth. Aside from the target tenants, a key difference between buying a student property or a residential investment property in Liverpool is the price.

Because student properties are often presented as a studio flat rather than a one or two-bedroom apartment, they can be naturally more affordable. If you’re on a tight budget, investing in student property in one of the UK’s most affordable cities is a smart move!

Another way to keep costs low when investing in Liverpool is by buying off-plan Liverpool property. Off-plan property is a new-build property that’s not yet completed but is still available to purchase.

One of the main benefits of investing in property that’s off-plan is that developers often offer these investment opportunities at a very low price.

Take one of Liverpool’s current investment opportunities, ELEMENT – The Quarter. This property is available to let to both postgraduate students and young professionals, and comes priced from just £92,950!

The current average value for a property in Liverpool city centre stands at £164,127, so this is an unmissable Liverpool buy to let opportunity.

Explore the Best Buy to Let Areas in Liverpool 

Before investing, you need to know about the best buy to let areas in Liverpool. While Liverpool is a great all-round city for buy to let, there are certain postcode areas that attract a lot of interest from savvy property investors.

Here are some of the best areas to buy in Liverpool when it comes to rental yields, property prices, and more.

Liverpool City Centre

The most vibrant and lively part of not only Liverpool but the whole of Merseyside, Liverpool City Centre is one of the best areas to buy in Liverpool for investment purposes.

As with most cities, the city centre of Liverpool attracts the most demand from desirable renters like students and young professionals. There are lots of new developments popping up all over the city centre to catch up with the constant demand in the area.

Some of the most popular parts of Liverpool city centre for rental accommodation include the Baltic Triangle, Ropewalks, and the Knowledge Quarter.

The best postcodes in Liverpool for rental yields can be found in the city centre, including L1, L6, and L3. This means that if high rental returns are a big part of your investment goals, Liverpool property investment in the city centre should be top of your list.

Due to ongoing regeneration projects throughout the city centre, this is also one of the best areas to buy in Liverpool if you want to maximise capital growth potential.

Inner City Liverpool Areas 

Just a stone’s throw away from the city centre, you’ll find the inner-city Liverpool districts of Toxteth, Dingle, and Kensington.

These have built a reputation as some of the best buy to let areas in Liverpool due to high rental demand and affordable prices. They also offer some great rental yield potential. Kensington, for instance, spans parts of L6, one of the best postcodes in Liverpool thanks to 8.12% average yields.

An inner-city part of Liverpool like Kensington, Toxteth and Dingle can attract a lot of demand from those who want easy access to the city centre while still paying lower rental costs.

According to Zoopla, the average asking rent for Toxteth currently works out at around £760 a month, while the average rent in the city centre stands at £826 per month.

Suburban Liverpool Towns 

If you’re more interested in Liverpool property investment in more suburban parts of the city, there are some great Liverpool towns to consider.

Based in North Liverpool, Crosby is considered one of the best areas to buy in Liverpool if you’re looking to attract a wide range of tenants. Due to the coastal nature of the area, Crosby properties see a lot of demand from a mix of tenant groups.

The same goes for another popular suburban town, Aigburth. Home to trendy spots like Lark Lane, Aigburth was recently voted one of the coolest UK neighbourhoods and is viewed as a great place to live for young professionals and families.

If you want to make a Liverpool investment in these more suburban areas, you’d be looking at a higher price tag. Properties are notoriously high in areas like Aigburth, meaning that high rental yields are more unachievable.

If you’re keen on low property prices with your Liverpool property investment venture, it’s a good idea to stick to investments in and around the city centre.

Looking to Invest in Liverpool? 

If the buy to let prospects Liverpool has to offer sound good to you, and you’re looking for apartments to buy in Liverpool, explore the range of properties in Liverpool for sale with Investment Property Agent.

Invest with us for your Liverpool buy to let venture, and you can take advantage of the following:

• Impressive rental yields of up to 8%.
• Assured rental yields for up to three years.
• Properties based in the best buy to let areas in
• Below-market prices for luxury flats for sale in Liverpool.
• The most exciting new developments on the Liverpool property investment
• Predicted property price growth of up to 27.3% by 2024.