Over the past decade, Liverpool has undergone a significant transformation, positioning itself as a prime location for property investment. With its rich history, vibrant culture, and strategic economic initiatives, Liverpool has attracted investors from around the globe. This article delves into the changes in Liverpool’s property market figures over the last ten years, highlighting the key trends, factors driving growth, and the future outlook for investors considering this dynamic city.

A Decade of Growth: Liverpool’s Property Market

Liverpool’s property market has experienced substantial growth over the past ten years. In 2013, the average property price in Liverpool was approximately £113,000. Fast forward to 2023, and the average price has surged to around £195,000, representing a remarkable increase of over 72%. This growth has outpaced the national average, reflecting the city’s unique appeal and investment potential.

Key Drivers of Property Market Growth

1. Economic Regeneration

Liverpool’s economic regeneration has been a major driver of property market growth. The city has successfully transitioned from its industrial past to a more diverse economy, with significant investments in the knowledge, creative, and digital sectors. This economic diversification has attracted a new wave of professionals and businesses, increasing demand for both commercial and residential properties.

The Liverpool City Region Combined Authority has played a pivotal role in this transformation, investing heavily in infrastructure projects, such as the Liverpool2 deep-water container terminal and improvements to the city’s transport network. These initiatives have not only boosted the local economy but also enhanced Liverpool’s connectivity, making it an attractive destination for investors.

2. Cultural and Educational Hub

Liverpool’s rich cultural heritage and world-class educational institutions have also contributed to the city’s property market growth. The University of Liverpool, Liverpool John Moores University, and Liverpool Hope University collectively attract tens of thousands of students each year. This influx of students creates a steady demand for rental properties, particularly in areas close to the universities.

Moreover, Liverpool’s vibrant cultural scene, including its music, arts, and sports, makes it an appealing place to live. The city’s status as a UNESCO City of Music and its numerous festivals and events draw tourists and new residents alike, further fuelling property demand.

3. Regeneration Projects

Major regeneration projects have been instrumental in transforming Liverpool’s property landscape. The Liverpool Waters project, one of the largest regeneration schemes in the UK, aims to create a new waterfront district, featuring residential, commercial, and leisure spaces. This project alone is expected to deliver thousands of new homes and create substantial employment opportunities, attracting further investment to the area.

Similarly, the revitalisation of the Baltic Triangle has turned a once derelict area into a vibrant creative and digital hub. The transformation of historic buildings into trendy apartments, offices, and entertainment venues has significantly boosted property values in this area.

Rental Market Dynamics

Liverpool’s rental market has also seen notable changes over the past decade. The average rental yield in Liverpool is currently around 5.5%, higher than the national average. This is particularly attractive to investors seeking strong returns on their investments.

The demand for rental properties has been driven by several factors. Firstly, the city’s large student population creates a consistent demand for rental accommodation. Additionally, the increasing number of young professionals moving to Liverpool for job opportunities has further boosted the rental market. Areas such as the city centre, Baltic Triangle, and the Knowledge Quarter are particularly popular among renters, offering modern amenities and proximity to employment hubs.