The North of the UK is often regarded as a top choice for property investment, with Liverpool standing out as one of its most attractive cities. Understanding the unique characteristics of each northern city, along with their rental yields, capital growth projections, property prices, and demographic trends, is essential to making an informed investment decision. Each area offers distinct advantages, and it’s important to weigh these factors when choosing where to invest. In many cases, after examining the different northern cities, you will likely find that Liverpool emerges as a prime location for property investment. This article will compare Liverpool to other major cities in the North, highlighting key differences to help you develop an effective investment strategy.
Property investment in the North of the UK
How Does The North Differ From The South For Property?
The North-South divide in the UK has long been a significant socio-economic distinction. Traditionally, the South has been associated with higher wages, affluence, and abundant job opportunities, while the North was known for its industrial economy, including manufacturing and mining, which faced more economic challenges.
However, in recent years, the divide has narrowed. The North has seen significant economic improvements, with more job opportunities and a growing sense of prosperity. As a result, many people are now seeking opportunities in the North, drawn by its improving economy and affordability compared to the South.
To explore the North-South divide and how this is reflected in the UK property market, click here to read our article Should I Invest In A Buy-To-Let Property In The North Or South?
Why Does Liverpool Stand Out As Property Investment Location
Liverpool is one of the UK’s best property investment locations for the affordability and high returns available in the city. Liverpool buy-to-let investors are attracted to the city’s potential for strong rental yields and capital growth.
- Average rental yield: 7.44%
- Average property price: £176,000
- Capital growth projection: 20% by 2026
- Tenant demographics: Students, tourists, working professionals, families
Liverpool’s strong regeneration projects, which bring new jobs and housing to the city, are a major driver of this growth. The city’s diverse population—comprising students, working professionals, families, and tourists—also makes it a vibrant hub for property investment, offering a range of investment opportunities throughout the year.
Additionally, Liverpool’s unique cultural appeal further boosts its attractiveness to investors, particularly those interested in short-term lets. Liverpool’s tourist attractions are a key driver for the city’s economic growth also, with projects like the £500m Bramley Moore Everton Stadium set to bring in over £1 billion to the local Liverpool economy. The North West’s property prices are forecast to grow 28.8%, with key projects such as these enhancing the value of the area.
How Liverpool Compares To Manchester
- Average rental yield: 6.53%
- Average property price: £245,000
- Capital growth prediction: 19.3% by 2028
- Demographics: Students, working professionals, tourists, families
While both Liverpool and Manchester share historical rivalry and are central to the UK’s industrial past, they differ in their property markets. Property prices in Manchester are approximately £69,000 higher than in Liverpool, with the average price closer to the national average. Property prices in Manchester have steadily increased, rising 4.2% over 2024, and are expected to continue growing by 19.3% by 2028.
Though Manchester’s average rental yield is lower at 6.53%, certain areas, such as M14, can achieve yields as high as 12%. This is higher than Liverpool’s highest yielding postcode, L2, with yields ranging between 7% and 12%. For investors targeting specific areas, Manchester offers attractive returns in areas like the Northern Quarter and Salford, especially for student properties and short-term lets.
How Liverpool Compares To Leeds
- Average rental yield: 6.67%
- Average property price: 245,000
- Capital growth prediction: 18.8% by 2028
- Tenant demographics: Students, working professionals, families
Leeds, like Manchester, has higher property prices than Liverpool, with an average difference of £69,000. Though property prices have risen steadily in Leeds, with a forecasted 18.8% growth by 2028, Liverpool still offers more affordable entry points. The rental yield in Leeds stands at 6.67%, but areas like LS3 can reach as high as 12%. This area in particular is on the outskirts of the city centre. In Liverpool, however, it is easier to find properties with higher rental yields in the city centre (L2) due to its more affordable prices.
Leeds has a strong student and professional presence, similar to Liverpool, making both cities appealing to investors targeting these demographics.
How Liverpool Compares To Newcastle
- Average rental yield: 7.45%
- Average property price: £201,000
- Capital growth prediction: 28.2% in the North East over next five years
- Tenant demographics: working professionals, students, families
Newcastle is an affordable property investment location in the North, similar to Liverpool. However, property prices in Newcastle are approximately £25,000 higher than those in Liverpool. Despite this, Newcastle has experienced solid price growth, with a 6.7% increase in 2024, and is projected to see a 28.2% rise over the next five years, making it an attractive investment option. The average rental yield in Newcastle stands at 7.45%, which is higher than Liverpool’s, with prime areas like NE1 reaching yields of up to 8.4%. While Newcastle offers higher rental yields and strong capital growth, Liverpool’s lower property prices and higher capital appreciation potential give it a competitive advantage for buy-to-let investors.
How Liverpool Compares To Sheffield
- Average rental yield: 6.38%
- Average property price: £217,000
- Capital growth prediction: 28.2% in the North East over next five years
- Tenant demographics: working professionals, students, families
Sheffield’s average property price is £41,000 higher than Liverpool’s, with an average rental yield that is lower at 6.38%. While some areas, such as the city centre, offer yields as high as 7.5%, Liverpool generally outperforms Sheffield in terms of higher yields across the city. Sheffield is expected to see 28.2% capital growth in the next few years, but Liverpool still stands out for its more attractive combination of price, rental yield, and capital growth potential.
Key Liverpool Properties You Should Consider
As an entry point, here are some key Liverpool properties that you should consider investing in.
The Aquitania
- Prices From: £153,000
- Rental Yield: 7.5%
Located in the £5 billion Central Docks regeneration area, The Aquitania is part of a vibrant new community forming on Liverpool’s waterfront. These 135 high-specification new build apartments and duplexes offer stunning views of the River Mersey while creating modern luxury living. Secure parking options are available for purchase, enhancing the convenience for residents. Only a short walk away from the city, The Aquitania offers exceptional access to Liverpool’s finest amenities, making it the ideal choice for those seeking both comfort and convenience.
Premium Liverpool Lofts
- Prices From: £135,000
- Rental Yield AST: 8%
- Rental Yield STL: 12%
A modern, eco-friendly development offering 24 one and two-bedroom apartments, as well as six three-bedroom terraced houses. Located in the emerging L4 neighbourhood, this property offers flexibility for both long-term and short-term lets. Spread across two stories, the Liverpool apartments include 19 parking spaces, some of which are equipped with EV charging points. The thoughtful design and range of options make it an attractive proposition for young professionals, families, and anyone seeking contemporary urban living.
Dockside Residencies
- Prices From: £244,125
- AST Rental Yield: 7%
- STL Rental Yield: 10%
Situated in the historic Royal Albert Dock, this fully completed development offers modern, eco-efficient apartments in a prime location with high potential for both short-term and long-term rental income. This development is turnkey ready, allowing investors to generate income immediately upon purchase.
Why Liverpool Should Be Your Property Investment Destination Of Choice
While other northern cities like Manchester, Leeds, Newcastle, and Sheffield offer strong investment potential, Liverpool’s combination of affordable property prices, high rental yields, and impressive capital growth projections makes it a standout destination for property investors. With diverse demographics, vibrant culture, and ongoing regeneration, Liverpool offers opportunities that are difficult to match elsewhere in the North.
When considering where to invest in property, Liverpool’s balanced offering of affordability and high returns makes it a smart choice for long-term success. If you would like to explore the range of property investment options available in Liverpool, contact us today. We will connect you with one of our award-winning property investment consultants and help you find the perfect property investment for you.
