Liverpool has long been a favourite among property investors, offering affordable entry prices, strong rental yields, and ongoing regeneration projects. As we move through 2025, the city’s buy-to-let market continues to evolve, shaped by house price trends, employment growth, and broader economic conditions. Investors looking to capitalise on Liverpool’s property sector must assess these key factors to make informed decisions.

This blog explores Liverpool’s house prices, job index, and economic outlook, providing insights into why the city remains a prime location for buy-to-let investments.

1. House Prices in Liverpool: Trends and Forecasts

Current Market Overview

Liverpool’s property market has shown steady growth, with house prices increasing by 8.5% year-on-year, outperforming the national average. The city’s affordability compared to other major UK cities makes it particularly attractive for investors.

Average Property Prices in 2025

  • Overall average price: £188,744 (34.8% below the UK average).
  • Premium areas: Aintree (£410,281), Formby (£377,396), Mossley Hill (£372,441).
  • Mid-range areas: West Derby (£249,663), Aigburth (£253,679).
  • High-yield areas: L20 (Bootle) offers rental yields of 7.9%, making it a hotspot for investors.

Factors Driving Price Growth

  • Regeneration projects such as Liverpool Waters and the Knowledge Quarter.
  • Strong rental demand from students, professionals, and corporate tenants.
  • Infrastructure improvements, including transport upgrades and commercial developments.

2. Job Index and Employment Growth

Liverpool’s Expanding Job Market

Liverpool’s economy is diversifying, with growth in technology, healthcare, and education sectors. The city’s port and logistics industry also remains a key driver of employment.

Key Employment Statistics

  • Job creation: Significant growth in tech, healthcare, and education, attracting a skilled workforce.
  • Average salary: £32,500, with variations across industries.
  • Unemployment rate: 4.2%, lower than the national average.

Impact on Buy-to-Let Investments

A strong job market boosts rental demand, particularly in areas close to business hubs and universities. Investors targeting high-employment districts can expect low vacancy rates and stable rental income.

3. Economic Outlook for Liverpool in 2025

Macroeconomic Factors

Liverpool’s economy is expected to grow by 2.0% in 2025, supported by stable inflation and favourable interest rates. The Bank of England’s monetary policy is expected to keep borrowing costs manageable, benefiting property investors.

Government Policies Supporting Investment

  • Stable inflation forecasts (2.5% in 2025).
  • Tax incentives for landlords maintaining energy-efficient properties.
  • Infrastructure spending to enhance transport and commercial districts.

Rental Market Performance

  • Average monthly rent: £830, following a 9.9% increase over the past year.
  • Gross rental yields: 6-8%, positioning Liverpool as a top buy-to-let location.
  • Tenant demand: High among students, professionals, and corporate renters.

Liverpool’s buy-to-let market in 2025 presents a strong investment opportunity, driven by affordable house prices, employment growth, and a stable economic outlook. Investors can benefit from high rental yields, capital appreciation, and ongoing regeneration projects, making Liverpool one of the UK’s most promising property markets.