Off-plan property is often considered one of the best ways to invest in property, but it is important to find the right locations for you to maximise these investments. Liverpool has emerged as one of the most promising property investment locations in the UK, experiencing considerable regeneration and investment in recent years. In this article, we will explore why investing in off plan property in Liverpool is an excellent choice for investors who are looking for long-term returns and high capital growth.
Why Invest in Off-Plan Property?
Off plan property presents a great opportunity for investors to purchase properties before they are fully complete. There are unique benefits to this type of investment:
1. Often priced below market value
Developers will often sell off-plan property at a discounted price to entice investment. The price will gradually increase as the development approaches completion. This allows investors with smaller budgets to purchase properties with high capital growth potential.
2. Capital appreciation
Off-plan developments often experience value increases during the construction phase and beyond, especially in high-demand areas. For properties located in central or regeneration districts, the appreciation can significantly exceed initial purchase prices, giving investors a valuable and appreciating asset.
3. Energy efficient and sustainable
Newly built properties meet current construction regulations, often including environmentally friendly materials and energy-saving features. These homes typically come with better EPC ratings, lowering tenants’ utility bills and enhancing the property’s appeal in the rental market.
4. Excellent as part of a portfolio
Off-plan investments offer a smart way to grow your portfolio gradually. You secure an asset at a lower cost, with time to plan finances before completion. This is ideal for long-term investors looking to scale cost-effectively.
To read more about off-plan property investment, download our guide to learn more.
Why Invest in Off-Plan Property in Liverpool?
Liverpool is one of the best cities in the UK for off-plan property investment, due to its thriving economy, cultural appeal, and expanding job market. Let’s explore the reasons why investing in off-plan property in Liverpool offers unique benefits to investors:
Ongoing Regeneration Schemes
Liverpool is undergoing transformative regeneration, with billions in public and private investment creating new developments across the city. Projects like Liverpool Waters, a £5.5 billion revitalisation of the historic waterfront, and the £2 billion Knowledge Quarter regeneration, focused on innovation, education, and technology, are reshaping the city.
These regeneration schemes are boosting local demand, creating new property opportunities, and increasing long-term value in the city. This will drive more people to the city creating an increased demand for rental accommodation, which investors can capitalise on early. Property prices in Liverpool are projected to rise by 20% by 2027, making now an ideal time to invest and benefit from the city’s evolution.
Affordable Property Prices
Liverpool has amongst the lowest property prices for a major city in the UK. The city’s average property value is around £180,000, well below the UK average of £268,250. This affordability, combined with strong future growth potential, makes Liverpool a perfect entry point for first-time investors or those looking to maximise returns on a lower capital outlay.
High Capital Growth
Liverpool and the broader North West region are set for substantial capital growth. According to Savills, property values in the North West are forecast to increase by 29.4% by 2029. by regeneration, population growth, and job creation, Liverpool is at the forefront of this growth. Off-plan investors can therefore expect their Liverpool properties to experience significant appreciation in asset value over the coming years.
Strong Rental Market
Liverpool’s rental market is among the most diverse in the UK, attracting students, professionals, and families. The average monthly rent in Liverpool has risen to £844, a 9.7% increase from 2024, reflecting the city’s growing demand. This tenant diversification is only expected to improve as more opportunities are created in the city, with a variety of new sectors in finance, creative, and tech industries moving into the city, drawing in a range of different people.
Additionally, Liverpool’s popularity as a cultural and sporting destination makes it ideal for short-term lets, particularly in central areas. With the Hills Dickinson Stadium opening on Bramley Moore Dock, the new home of Everton FC, more sporting, music, and cultural events will be taking place on a more regular basis in the city. This drives the need for more short-term let accommodation in Liverpool. These high-yield rental strategies can significantly boost investor returns, providing flexibility and higher income potential.
Best Areas in Liverpool for Off-Plan Property Investment
Waterfront
The Liverpool Waterfront is undergoing a significant transformation, primarily driven by the Liverpool Waters development. This £5.5 billion regeneration scheme is creating five new neighbourhoods and a new central business district, complete with residential, commercial, and leisure space. This area is quickly becoming a desirable location for off-plan property investment in Liverpool, especially with the addition of green spaces like Central Park and new transport links raising the value of the area. Investors can secure properties in this area before completion and benefit from the future demand that comes with waterfront living.
Vauxhall
Vauxhall is one of the fastest-growing districts in Liverpool, bolstered by the construction of the new Everton Stadium at Bramley-Moore Dock, the Ten Streets regeneration, and the Pumpfields regeneration. This former industrial area is transforming into a cultural and creative hub, with plans for new homes, retail outlets, and entertainment venues. The proximity to the Blackstock Market and the city centre makes Vauxhall an excellent choice for investors looking to target young professionals and sports fans alike. Off-plan developments in this area, like City Walk, are rising in popularity due to the high capital appreciation potential and strategic location.
City Centre
Liverpool city centre is always at the heart of the city’s development and regeneration efforts. As the central hub of the city, it remains one of the best locations for investing in off-plan property in Liverpool. The area is ideal for student accommodation due to its proximity to major universities like the University of Liverpool and Liverpool John Moores University. It also appeals to young professionals thanks to its proximity to the central business district, and the variety of shops, restaurants, and nightlife available. Properties in the city centre often see high tenant demand and strong rental yields between 5-8%, making it an area that any serious investor should consider.
Why Liverpool is a Prime Location for Off-Plan Property Investment
Investing in off-plan property in Liverpool is an ideal way for investors to capitalise on the city’s long-term growth. Liverpool offers a rare combination of affordability, strong capital growth potential, and a dynamic rental market, making it an exceptional city for off-plan property investment. With massive regeneration projects underway, property prices forecast to rise significantly, and a diverse population driving demand, now is the perfect time to enter this exciting property market.
Exploring Liverpool’s property market now presents an opportunity for investors to capitalise on the city’s more affordable prices and maximise their returns in the long-term. Contact us today for expert advice on property investment in Liverpool and take the first steps towards securing your future as part of this developing city.
