Chancellor Rachel Reeves delivered the Government’s latest spending review on Wednesday, outlining new departmental budgets and investment plans for major infrastructure projects across the UK. While funding was directed toward key areas such as the NHS, affordable housing, and national infrastructure, public transport emerged as one of the biggest beneficiaries. Liverpool, in particular, is well-positioned to benefit from this boost, with a positive impact expected for its property market. In this article, we will explore the spending outlined in the review for public transport and what this means for property investment in Liverpool.
What Was Announced in the Spending Review?
£15.6 billion has been allocated for transport infrastructure across English city regions (excluding London) between 2027 and 2031. Of that £15.6 billion, Liverpool City Region has secured a significant £1.6 billion in transport funding over the next five years.
This investment is set to drive wide-ranging improvements, including major rail upgrades, a new rapid transit system, and infrastructure developments that will modernise how people move around the city.
Additionally, the £3 cap on single bus fares has been extended until March 2027, ensuring affordable travel for everyday commuters and maintaining vital access to work and services.
Where Will the Investment Go?
Liverpool City Region Mayor Steve Rotheram has confirmed that £100 million will be spent on creating three new rapid bus transit routes, based on the successful Belfast Glider model. These routes will improve access to Liverpool John Lennon Airport, Anfield, and the Hill Dickinson Stadium, enhancing connectivity to key areas in the city.
The investment also includes funding for a new fleet of buses that will form the foundation of Liverpool’s planned franchised bus network, giving local authorities greater control over service quality and routes.
Major upgrades to Liverpool’s rail infrastructure are also planned, with three new stations to be built in St Helens, Wirral, and Halton. These will complement ongoing developments in the Baltic Triangle and a redeveloped Runcorn station. The expansion of Merseyrail is projected to create 8,000 jobs, boosting both the economy and the city’s appeal.
Further bolstering this investment is the new Manchester–Liverpool line, which will cut travel time to just 15–20 minutes and transform Liverpool Central into a northern gateway station. These changes support the city’s ambition to develop a fully integrated, London-style public transport system.
Read our May News Round-Up to find out more about Liverpool’s upcoming rail links to Manchester.
For buy-to-let investors, improved transport access makes Liverpool property investment significantly more attractive, widening the city’s tenant pool and raising demand.
How Public Transport Boosts Property Values
Transport access remains one of the most important factors influencing property value. Properties near well-connected transport links tend to command higher prices, and rail access can add as much as 14% to a property’s value.
The Elizabeth Line in London is a great case study of the impact that public transport can have property values. Between 2008 and its opening in 2022, properties along the line saw price increases of up to 80%, demonstrating the effect of transport upgrades on property values.
This also affects rental demand. Studies show that 52% of tenants live within five minutes of public transport, increasing to 71% within 10 minutes. Proximity to transit not only raises property value, it also improves rental income potential, due to the amount of people who want easy access to their location’s public transport.
Find out more about what tenants are looking for in their rental properties in our article.
With Liverpool now set to significantly expand its transport network, the city’s property values are poised to rise. Prior to these upgrades, capital growth in Liverpool was already forecast at 29.4% by 2029 by Savills. But with these recent developments, capital appreciation could be even higher.
Why This Matters for Liverpool Property Investors
For property investors, Liverpool is an increasingly attractive proposition. With this surge in public transport investment, connectivity to wider areas of the city, including to key regeneration zones like Liverpool Waters, Vauxhall, and Pumpfields, will increase, widening people’s access to these areas for their jobs, amenities, and residential offerings.
As these projects progress further, accessibility will improve and communities will grow, which will increase demand for housing across the city. These transport investments not only see Liverpool’s trends of strong capital appreciation and high rental yields continue, but help Liverpool rapidly transform into a vibrant, modern city capable of rivalling cities like Manchester and London.
To take advantage of Liverpool’s rising property market while prices remain relatively low, contact Advantage Investment today. Our expert team can provide a free consultation to help you identify the right investment opportunity to build long-term wealth.
