Liverpool Property Market Forecast 2023

According to the HM Land Registry UK House Price Index, the average Liverpool property price stands at £177,224.

Let’s look at different property types in greater detail:

Source: HM Land Registry (July 2023)

It’s important to remember that the average house price changes according to the index. For instance, Liverpool properties on Rightmove see prices at a higher average – totalling £212,528.

Source: Rightmove (October 2023)

As you can see, flats and terraced properties sit at a similar average. However, Rightmove suggests semi-detached property prices are around £18,000 more expensive than Land Registry figures.

In 2023, new properties for sale in Liverpool saw significant price growth deceleration. Currently, price growth sits at 0.80%. However, 12 months ago, yearly price growth was a much higher 8.30% per HM Land Registry.

Interestingly, Rightmove states that the average detached price is £321,844 – roughly £45,000 cheaper than Land Registry stats.

Overall, demand for apartments for sale in Liverpool remains high, with buyers drawn into the city’s thriving culture, reasonable living costs, and transport links to cities such as Manchester, Birmingham, and London.

Property prices and rental yields have grown consistently over the last two decades. In addition, rental yields have remained above the norm as well.

But will this growth continue through the rest of 2023 and beyond?

Let’s take a deep dive into what the experts predict for the Liverpool property market.

According to Statista, the rental growth rate in the UK is expected to increase by 18%.

Interestingly, the growth is expected to be stronger throughout the rest of 2023 and 2024.

ONS data from September 2023 showed that rental prices increased by 5.5% on average over the last year.

Statista expects a 4% rental rise in 2024 alone due to the current cost-of-living crisis.

Typically, in these cases, as interest rates decrease, more people can climb the housing ladder, slowing rental growth.

Savills predicts a 6.5% rise in rental growth in 2024 before slowing in 2025. They expect renters will return to committing the same proportion of their wages on property costs as they did in the mid-2010s. They also predict a compounded rental rise of 18.3% across the UK, excluding the London property market.

Like the rest of the United Kingdom, the Liverpool rental market is expected to remain resilient for the foreseeable future.

Liverpool is a city on the rise. With the North West expecting serious growth by 2027, property investors today rightly look to Liverpool and Manchester for exciting buy-to-let opportunities.

Many areas are on the cusp of enormous growth. These locations may be an excellent place to start if you are a first-time buyer in the city or looking to expand your portfolio further.

These areas include:

Baltic Triangle

Since 2012, the Baltic Triangle has undergone many regenerative changes. According to The Times, substantial investment has transformed the area into one of the “coolest places to live”.

Roughly £128 million worth of investment has gone into the Baltic Triangle regen, with more capital expected for the district in the future.

Investment has created 500 new jobs, with another 800 on the way. Major regeneration in Liverpool includes re-opening St James station, making the area more accessible to visitors and commuters.

In 2020, a master plan detailed the Baltic Triangle’s regeneration pathway. This included the train station, a public park, and green corridors. These changes ensure the area will continue to thrive for years to come.

Notable development projects include One Baltic Square and Parliament Square. These apartment blocks offer stunning amenities and proximity to the waterfront and the trendy bars that make the Baltic Triangle popular with young professionals.

For more on this area, take a look at our recent RWinvest Baltic Triangle Guide.

Knowledge Quarter

Liverpool has four top universities – three of which have city centre campuses. This area is known as the Knowledge Quarter – a health, technology, and science innovation hub.

The Knowledge Quarter has enjoyed significant investment since 2000. More than £1 billion has been injected into the area, promoting business investment that targets the 70,000 students calling Liverpool their home.

In collaboration with the Liverpool City Council, the area aims to close the divide between North and South England’s economies.

One of the top residential developments in the area is Element The Quarter, the first eco-development in Liverpool.

This complex utilises sustainable technology and is well situated in the heart of the Knowledge Quarter, only minutes from the University of Liverpool campus, Royal Liverpool Hospital, and the exciting student village.