+44 (0)151 958 0440 enquiries@acentusrealestate.com

Investors Look At Liverpool Instead Of London For Higher Yields

Jun 18, 2018 | Property Advice, Real Estate

In many ways it is unfair to compare the rest of the UK to the London property market because to all intents and purposes London is a market in itself. Historically property investors have looked towards London because it has been the hub of the UK economy for centuries. London investment markets lead the world and London is also a vital cog in the worldwide commodities market. Capital appreciation has been central for the vast majority of property investors looking towards the City with rental yields on average significantly less than the rest of the UK.

However, trends are starting to change and while many people point towards Brexit, the seeds of change were planted some time ago.


If you look at some of the more affluent areas of London such as Kensington and Chelsea, properties are regularly changing hands at up to 38.5 times annual salaries. The situation is a little more manageable in other areas of the UK at around 7.6 times the average annual salary. The situation in Liverpool is a little different with salaries of around £24,000 and an average house price of just over £115,000. This equates to a multiple of 4.8 times average salary which would indicate good relative value.

When reviewing the London property market, rental yields are around the 3%-4.49% level although there are some areas offering rental yield of less than 1.5%. Looking towards Liverpool, there are a number of opportunities to lock in rental yields of 4.5%-5.99% with some areas offering yields in excess of 6% (HMOs and shared occupancy offer the best rental returns with some in double digits). In light of Brexit and challenges for the London business and property market, we have seen a number of London investors cashing in their “London premium” to acquire larger properties for less money outside of the capital.

Is Liverpool a good place to invest in property?

Central to any successful property market is a buoyant economy and low unemployment numbers. Historically Liverpool has suffered more than most with regards to unemployment but recently there has been a surge in the number of new businesses opening up in the area. Liverpool now offers a mix of old and new industries, has a vibrant university community and average economic growth of around 4.8% per annum between 1998 and 2016.

National government and local authorities, together with private investors, have ploughed hundreds of millions of pounds into the redevelopment and regeneration of Liverpool city centre and surrounding neighbourhoods. This has prompted unprecedented demand for private rental properties with shared occupancy the new trend. While Liverpool is often overshadowed by the likes of Manchester, Birmingham and Newcastle, the so-called “Northern powerhouses”, it is now leading the way.

Property investment in Liverpool

Phase 1 of The Metalworks apartment development just off Liverpool’s business district is proving extremely popular amongst investors looking to take advantage of the new trend in shared occupancy. On completion of phase II there will be more than 300 apartments all located within a closed development with an array of shared facilities. High occupancy rates, attractive rental yields and potential for long-term capital growth reflect the high hopes for Liverpool in the short, medium and longer term.

Contact Us

Recent Articles

How Modern Property Investment Has Adapted

The overlooked property investment sector For investors, property in the UK has proved highly resilient and traditionally offered strong returns over the long term. However, right now the opportunities for making money from property investment seem scarce - apart from...

The Most Overlooked Sector In Property Investment

What everyone has missed about property investment If you’ve not heard about property bonds, you’re missing a major investment opportunity to take advantage of the traditionally strong property market. W hile property ownership and portfolios are no longer...

Factors To Consider When Investing In Property

In today’s volatile environment, there’s one investment standing out from all others in the UK: property. Despite the worry that Brexit would have an adverse effect on property prices, the weak pound has brought an influx of interest from overseas property investors...

Immediate High ROI Opportunities For HNW Investors

If you are a High Net Worth (HNW) Investor, you need to read this… There are many reasons why investors are searching for better investment opportunities right now. But for individuals with a net worth more than £250,000, there is even more reason to check your money...

Liverpool Tops UK Cities House Price Inflation

Property prices in key cities in the UK increased by 3.9% in the 12 months to August 2018 with Liverpool topping the list with a year on year to August 2018 inflation at 7.5% After Liverpool the next biggest annual rise was in Glasgow at 7.2%, followed by Nottingham...

apartments for sale liverpool

The Rise

Low Hill, Liverpool L6 1AB

From £66,411

apartments for sale

Strand Plaza

The Strand, Liverpool (L2)

From £110,000

Gibson Park

Wallasey, Liverpool

Coming Soon

Subscribe For Property Investment Updates

Sign up today and receive updates on the latest property investment opportunities, available incentives and investor success stories. By subscribing you are consenting to receive email updates from Acentus Real Estate Ltd.