Why investors should set their sights on Liv…

Liverpool has become a hotspot for property investors and homebuyers, with house price growth over the past year higher in Merseyside than any other major city.


With the real estate market described as currently “on fire”, Leaders Romans Group takes a closer look at the North West town and its advantages for investors.


The growth of the Liverpool property market



Liverpool is proving particularly popular due to the amount of investment going into the city and the fact that the average property price in Liverpool remains within the affordable range, offering substantial long-term gains for homeowners and landlords .


According to Zoopla, property price growth in the year to February 2022 was higher in Liverpool than in any other major Roman city. While the average UK house price rose 8.1%, their data shows Liverpool City rose 10.3%.


Meanwhile, government land register data shows an even higher 11% year-on-year increase for properties in Liverpool. The data is also broken down by property type, with terraces up 10%, apartments up 11%, semi-finished up 12% and single-family homes up 14%.


But despite these relatively large price increases, compared to national average property prices, Liverpool remains an affordable area to invest in:









Property type

Average price in Liverpool

UK average price

Apartments & maisonettes

£129,872

£224,186

Terraced houses

£146,299

£221,680

Semi-detached houses

£208,023

£263,812

Individual houses

£339,121

£431,680


(Source: Land Registry House Price StatisticsJanuary 2022)

What’s Happening to the Liverpool Rental Market?


Romans’ analysis of official government statistics found that rents in England had risen by an average of 3.2% year-on-year (February 2021-22). On a more local level, Zoopla shows that rents in Liverpool are rising at nearly double that rate.


Their report estimates that average rents are currently £652 per month, meaning they are up 6% year-on-year. This makes Liverpool one of the few places in the country where landlords manage to keep rents down before the general rise in inflation from 5.5%.


Moreover, recent JLL predictions suggest that rental prices will increase by 3% until 2022, then by 2.6% on average each year until 2026.


Selling prices will increase again by 5%, followed by average annual increases of just under 4% until 2026.


With so much in Liverpool, the city is expected to grow significantly over time, both in terms of population and economy.