When investors look north for opportunities in the UK property market, two cities consistently dominate the conversation: Liverpool and Manchester. Both have transformed into economic powerhouses in their own right, driven by regeneration projects, expanding populations, and a growing demand for high-quality rental homes. But while both cities offer exceptional opportunities for buy-to-let investors, they differ in terms of entry prices, tenant demographics, yields, and long-term capital growth potential.
In this article, we’ll explore the investment case for both Liverpool and Manchester, compare their markets, and outline the key reasons investors should consider adding one or both to their portfolios.
Liverpool: Affordable Entry with High Yields
Liverpool has emerged as one of the UK’s most compelling buy-to-let markets. Known for its cultural appeal, thriving universities, and ambitious regeneration projects, the city offers investors an affordable entry point combined with market-leading yields.
Current Market Snapshot
- Average property price: ~£182,000 (ONS, mid-2025).
- Rental yields: Typically 7–10% in prime central areas.
- Capital growth forecast:2% by 2029 (Savills).
Compared to the UK average property price of £268,000, Liverpool is significantly more affordable, particularly for new investors or those looking to scale their portfolios. Despite its affordability, rental yields are consistently among the highest in the UK, driven by demand from students, young professionals, and families alike.
Regeneration Driving Growth
Liverpool is undergoing extensive regeneration that will reshape the city and strengthen its property market:
- Liverpool Waters (£5.5 billion): Transforming 60 hectares of docklands into a mixed-use hub of homes, offices, and leisure space.
- Knowledge Quarter: A £2 billion project establishing Liverpool as a leader in education, science, and health innovation.
- Baltic Triangle: Rapidly evolving into a creative and tech district, popular with professionals seeking modern city-centre living.
These projects are already boosting demand for property, while laying the groundwork for sustained capital growth over the next decade.
Liverpool has received a considerable amount of investment over recent years, with several huge projects set to regenerate and reshape the city. Read more about the new developments in Liverpool, the impact this is having on the city, and what this means for investors in our recent blog.
Investment Hotspots in Liverpool
- Baltic Triangle: Known for its vibrant lifestyle appeal, attracting young professionals and creatives.
- Waterfront: Luxury apartment developments with strong capital appreciation potential.
- Knowledge Quarter: High student and postgraduate demand for rental housing.
- City Centre: A central location close to both cultural and business hubs, shops, bars, and restaurants. An ideal location for young professionals, short-term renters, and university students.
- Vauxhall: With strong regeneration in the area thanks to the newly built Everton Football Club stadium on Bramley Moore Dock as well as the new Liverpool Waters project nearby, Vauxhall is set to be a vibrant new neighbourhood within the city.
Looking to invest in Liverpool property?
At Advantage Investment, we offer a range of investment properties for sale in Liverpool, offering higher-than-average yields for investors. While Liverpool’s average monthly yield is around 6-8%, we provide yields of 7-10%, rising to 12% on short-term lets. This is done by focusing on properties in strategic locations and prime regeneration spots.
Developments such as City Walk provide modern off-plan apartments in regeneration zones, while premium waterfront projects, and Dockside Residences offer strong yields alongside long-term capital growth. By offering high-quality properties with a premium finish, our buy-to-let properties appeal to tenants willing to pay a premium.
Manchester: The Northern Powerhouse
Manchester has long been considered the jewel of the North. Often compared with London, it is sometimes dubbed the ‘Capital of the North’. With its international reputation, thriving economy, and strong student and professional population, it represents one of the UK’s most mature property markets. But unlike London, property prices are far more affordable. Compared to London, which has an average property price of around £659,000, Manchester can offer investors a much lower entry price into the market and a stronger rental yield.
Current Market Snapshot
- Average property price: ~£249,000 (ONS, mid-2025).
- Rental yields: 6–8% in most areas, with pockets of 9%+.
- Capital growth forecast (Northwest):8% by 2028 (Savills).
While the average entry price is higher than Liverpool’s, Manchester still offers excellent value compared to London or Birmingham. Its rental demand is underpinned by one of Europe’s largest student populations, as well as a growing base of corporate tenants working in the city’s finance, media, and tech sectors.
Regeneration and Growth Drivers
Manchester’s regeneration has been ambitious and successful, cementing its global reputation:
- Northern Gateway (£4 billion): A 15-year project delivering 15,000 new homes and infrastructure improvements.
- HS2 and Rail Upgrades: Despite uncertainty around HS2, regional rail improvements continue to strengthen Manchester’s connectivity.
- Spinningfields: The city’s business and financial district, now home to major corporations and luxury apartment demand.
This combination of economic growth, infrastructure investment, and corporate relocation ensures Manchester remains a reliable long-term investment market.
Investment Hotspots in Manchester
- Northern Quarter: Trendy, creative neighbourhood popular with professionals.
- Ancoats & New Islington: Rapidly regenerating districts with modern off-plan opportunities.
- Salford Quays/MediaCityUK: Driven by the BBC, ITV, and digital industries, with sustained tenant demand.
- Trafford: Quickly emerging as one of Greater Manchester’s most promising buy-to-let hotspots. The area is set to undergo major regeneration driven by the development of the new “New Trafford” stadium.
Looking to invest in Manchester property?
Advantage Investment offers prime properties for sale in Manchester, including luxury city-centre apartments in Castlefield, modern off-market developments in Media City and exceptional residential developments in Trafford, which is currently undergoing a regeneration. These projects are designed for professional tenants seeking central locations, providing stable yields and strong rental demand.
Liverpool vs. Manchester: A Direct Comparison
When weighing up Liverpool and Manchester property investment, the key differences become clear:
| Factor | Liverpool | Manchester |
| Average price | ~£182,000 | ~£249,000 |
| Capital growth | Forecast 31.2% by 2029 | Forecast 28.8% by 2028 |
| Average yield | 7–10% | 6–8% |
| Tenant demand | Strong among students, young renters | Professionals, corporates, students |
| Market maturity | Rapidly growing, regeneration-led | Established, globally recognised |
Affordability
Liverpool clearly offers a lower entry price, making it attractive for investors with smaller budgets, or who are just entering the market, as well as those seeking higher yields.
Rental Demand
Manchester boasts a stronger professional rental demand, thanks to many major businesses and brands within the city. Liverpool excels in student housing and short-term lets due to its cultural and tourism appeal.
Capital Growth
Both cities are forecast to outperform the UK average, with Liverpool slightly ahead due to its regeneration potential and lower starting values.
Which City Should You Choose?
The answer depends on your investment goals:
- Liverpool: Best for investors seeking high yields, affordable entry points, and regeneration-led capital growth. Particularly suited to first-time investors or those targeting student and young professional markets.
- Manchester: Best for investors looking for a larger, more established market with global appeal and long-term rental stability. Ideal for investors comfortable with higher entry prices and slightly lower yields.
The Case for Diversifying Between Both
For many investors, the best approach is not choosing between Liverpool and Manchester but investing in both. These two northern cities are only 30 miles apart, yet each offers distinct strengths. By diversifying, investors can capture Liverpool’s affordability and high yields alongside Manchester’s professional rental demand and global recognition.
Advantage Investment offers opportunities in both cities, both with higher-than-average yields, allowing investors to build a balanced portfolio that delivers cash flow today and capital appreciation tomorrow.
Liverpool vs. Manchester property investment is less about which city is better and more about which strategy fits your goals. Liverpool provides affordability and high yields, while Manchester delivers scale, maturity, and long-term stability. Both are predicted to outperform the wider UK market in terms of growth over the coming years, making them top picks for buy-to-let investors in 2025.
At Advantage Investment, we specialise in offering premium properties that can gain higher than the national average yields for investors in both Liverpool and Manchester. Thanks to our local knowledge and experience, we determine areas of strong growth potential and prime regeneration spots and build premium-level developments that attract strong rental demand at a higher price point.
Whether you’re looking for regeneration-led growth in Liverpool’s waterfront districts or luxury city-centre apartments in Manchester, our team can help you source the best opportunities tailored to your strategy.
If you’re ready to explore the best investment properties in Liverpool or Manchester, contact us today to arrange your free consultation with one of our property investment experts.
