Birkenhead Buy-to-Let Guide

According to Rightmove, Birkenhead boasted an average house price of £187,165 over the previous 12 months. In addition, most property sales were for semi-detached properties, culminating in a £228,488. In contrast, terraced house property sales were far cheaper, with an average price of £130,710; moreover, flats were less expensive still, reaching £121,110.

Interestingly, prices in Birkenhead have soared by 6% over the last year and by 21% since the 2020 £154,681 peak.

The UK House Price Index states that the average house price for the UK stood at £286,000 in May 2023. As such, Birkenhead is roughly 34.5% cheaper than the rest of the country, making buy-to-let costs more affordable compared to more southern cities like London and Oxford.

Birkenhead provides a diverse selection of property types for buy-to-let investors, encompassing traditional brick terraces and an array of suburban houses with attractive garden spaces, particularly in Oxton. Additionally, many new builds are already completed or in the planning stages. For more information on new-build property investment, take a look at some of the latest off-plan properties on the market.

The property market in Birkenhead exhibits a blend of characteristics to which investors should pay attention to. While certain parts of the town are marked with significant deprivation, it is precisely in these areas that one can discover the most affordable properties. Properties like these tend to attract budget-conscious buy-to-let landlords and those focused on managing HMOs.

On the other hand, some parts of Birkenhead boast picturesque residential streets and charming outlying village areas, which appeal to families seeking rental accommodations but can result in more expensive buy-to-let houses for sale.

Let’s look at these areas in greater detail.

The CH42 area of Birkenhead includes Prenton, Rock Ferry, Tranmere and Oxton. Further out are Bebington, Eastham and Bromborough.

These are good for those who need to commute to the southern region of the Wirral, primarily catering to the employment hubs in and around Ellesmere Port and Deeside. While certain CH42 districts like Rock Ferry feature affordable properties, other locales, such as Prenton and Higher Bebington, fall into the mid-priced category. These areas are particularly favoured by families primarily due to the presence of the local Wirral Grammar School for Boys and Wirral Grammar School for Girls.

Average Property Prices in CH42

Over the past year, CH42 had an average house price of £155,660. Most sales were for terraced properties, reaching an average of £122,783. Meanwhile, semi-detached homes sold for £202,832 on average, and flats sold for an average of £96,819.

According to Rightmove, these figures are a 5% increase on the previous 12 months.

Average Rental Yields in CH42

The average rental yield in the CH42 area is 7.2%.

Situated on the Wirral peninsula, Birkenhead lies adjacent to the River Mersey, opposite Liverpool.

It’s worth noting that Birkenhead stands as an independent entity, distinct from Liverpool – a misconception often encountered among newcomers. Operating under its own jurisdiction, Birkenhead falls under the Metropolitan Borough of Wirral, overseen by the Wirral Council. It is still encompassed within the Merseyside region.

Unparalleled Transport Links

Birkenhead boasts excellent transportation links within Merseyside and across the nation. It sits conveniently along the M53 and A41 roadways, with The Kingsway and Queensway road tunnels facilitating quick access to Liverpool. Furthermore, Birkenhead seamlessly integrates with the Merseyrail train network, offering frequent services to Liverpool and various Wirral destinations, extending to Chester.

Birkenhead enjoys regular ferry services from the Woodside Ferry Terminal, catering to passengers, vehicles, and freight, connecting to Dublin, Belfast, and the Isle of Man. The iconic Mersey ferry route operates between Birkenhead and Pier Head Liverpool.

Typically, the best buy-to-let areas in the UK will be ones that maintain a steady stream of regenerative prospects. Birkenhead, for example, is on the brink of a transformative era, with extensive revitalisation initiatives and substantial investments set to take place in the coming years. Efforts such as these are poised to usher in a surge of employment opportunities and newcomers, infusing fresh vitality into the Birkenhead region and significantly boosting the local property market.

Wirral Council’s ambitious vision drives this revival with the Wirral Growth Company, a collaborative endeavour between Wirral Council and Muse Developments, orchestrating the regeneration endeavours.

The Birkenhead 2040 Framework stands at the forefront, an overarching 20-year blueprint promising profound change. Within this framework lie eight pivotal projects, working towards generating 6,000 job placements and erecting 21,000 residences.

The blueprint for Birkenhead’s revival includes a revamped town centre featuring a new Birkenhead Market and town square and the creation of 900,000 sq. m. of commercial space, including an innovative office quarter. A modern residential area is envisaged around Conway Park train station, intertwined with new foot and cycle pathways, expansive public areas, and verdant spaces, highlighted by a new linear park tracing the path of the disused Dock Branch railway.

The Wirral Waters initiative further fuels Birkenhead’s transformation, a 30-year master plan targeting the revitalisation of 500 acres of former dockland just north of the town centre. Wirral Waters anticipates the construction of approximately 13,000 residences and the establishment of 20 million sq. ft. of office space, alongside provisions for burgeoning manufacturing industries and enriching educational and cultural facilities.

Adding to these promising prospects, Birkenhead is slated to reap the advantages of Freeport status. The newly designated Liverpool City Region Freeport encompasses a portion of Birkenhead, further bolstering the region’s economic resurgence.

There are calls for more new housing developments across the UK to address the supply-demand imbalance in the private rental sector, and Birkenhead is no exception.

Through their Core Stretgy Local Plan, Wirral Council is looking at several sites for new-build housing in the Birkenhead region, with further developments promised as part of the Wirral Waters regeneration scheme.

New build properties are a popular choice for buy-to-let investment, as they are in high demand from tenants and are often more energy efficient than older housing.

But to get the best choice of new build investment opportunities, it’s’ worth widening the search to all parts of Merseyside, not just Birkenhead. This could include Crosby’s new builds for suburbs, but most buy-to-let new build projects will be concentrated in Liverpool City Centre.

The Birkenhead property market exhibits distinctive characteristics compared to the broader UK landscape. While Birkenhead offers a diverse range of property types, including traditional terraces and modern suburban houses, its overall average prices are more affordable than in many other parts of the UK. The market caters to budget-conscious buy-to-let landlords and families with varying options.

Unlike some regions, Birkenhead has witnessed notable price increases in recent years, reflecting a growing demand. However, it’s essential to acknowledge that local economic conditions and amenities significantly shape this unique property market within the more extensive UK context.

However, investors need to be aware that Birkenhead is still an area in need of profound regeneration, which makes it less appealing to tenants who may prefer Liverpool or Manchester, especially when you factor in that the Liverpool buy-to-let market typically sees lower property prices on average – standing at £156,300 – and better amenities.

In addition, Birkenhead’s crime rate is poor compared to other parts of Merseyside. In 2022, the region experienced 154 crimes per 1,000 people, 34% greater than the Merseyside average of 115 per 1,000 residents. Buy-to-let landlords may worry about protecting their investment and ensuring a tenancy in their property attracts potential renters – Birkenhead ranked as the worst town in Merseyside for burglaries.