Rental yields across Liverpool’s postcodes can vary significantly, offering diverse investment opportunities depending on the area. In this guide, we’ll explore rental yields across top-performing Liverpool postcodes, comparing potential returns for property investors. Whether you’re considering a buy-to-let property in the city centre or exploring up-and-coming areas, understanding these figures is crucial for making an informed investment decision. With varying property prices and rental demands, it’s essential to know where the highest returns are available.
Rental Yield Data Across Key Liverpool Postcodes (Nov 2024)
The following table presents up-to-date long-term rental yield data for key Liverpool postcodes, providing valuable insights for property investors. While the rental yields vary across postcodes, factors such as property type and maintenance costs should be considered. We will discuss these factors in more detail later in the article.
| Postcode | Areas | Average Property Price | Average Rent (PCM) | Rental Yield |
| L1 | Liverpool City Centre | £206,674 | £1,130 | 6.56% |
| L3 | City Centre, Everton, Vauxhall | £204,773 | £1,000 | 5.86% |
| L4 | Anfield, Walton | £78,895 | £594 | 9.03% |
| L6 | Fairfield, Kensington | £156,575 | £705 | 5.41% |
| L8 | Toxteth | £201,102 | £820 | 4.89% |
A Closer Look at Key Liverpool Postcodes
L1 – Liverpool City Centre
Average property price: £206,674
Average Rent (PCM): £1,130
Rental Yield: 6.56%
L1 is the beating heart of Liverpool, home to iconic landmarks such as Liverpool ONE, the Ropewalks, and the buzzing nightlife of Concert Square. The area is known for its modern apartments, trendy bars, and a wide range of dining options. Its central location ensures easy access to key transport links, cultural attractions, and a vibrant social scene, making it highly desirable for residents and investors alike.
With property prices averaging £206,674 and rental incomes of £1,130 per month, L1 delivers a rental yield of 6.56%. Although it has a higher entry price compared to some other areas, the strong demand for rentals ensures consistent returns. Modern apartments and newly developed properties dominate the market here, offering a low-maintenance, high-demand option for landlords.
The tenant mix in L1 primarily includes young professionals, students, and corporate tenants seeking convenience and a cosmopolitan lifestyle. Its popularity among students from nearby universities also ensures a steady rental market, especially for well-located, high-spec properties.
Short-term rental yields in the city centre can exceed 10%. The location is popular amongst tourists due to its proximity to key cultural hubs and strong transport links to outer regions of the city, like Anfield. With high occupancy rates, investors in short-term lets in the city centre can expect to yield a strong ROI.
L3 – Liverpool City Centre, Everton, Vauxhall
Average property price: £204,773
Average Rent (PCM): £1,000
Rental Yield: 5.86%
L3 covers a diverse and rapidly evolving area, including parts of Liverpool city centre, Everton, and the up-and-coming Vauxhall district. Key developments such as Liverpool Waters and the Knowledge Quarter are driving regeneration in this postcode, transforming it into a modern hub for living and working. L3 benefits from proximity to major attractions like the waterfront and St. George’s Hall, along with excellent transport connections.
With property prices averaging £204,773 and rents around £1,000 per month, L3 provides a rental yield of 5.86%. While slightly lower than L1, it offers strong potential for capital growth due to ongoing regeneration. Many properties in L3 are new builds or recently refurbished, making them attractive to both investors and tenants.
The tenant mix in L3 is varied, with young professionals, students, and families drawn to the area’s affordability and convenience. Vauxhall, in particular, is gaining popularity with those seeking modern, affordable homes near the city centre.
With the introduction of the new Everton Stadium, the L3 postcode is poised for a surge in tourism. The area is expected to attract a wealth of commercial opportunities, including restaurants and bars. As a result, demand for short-term rentals in the region will likely rise. Advantage Investment’s Bastion Point property offers investors a guaranteed 12% short-term rental yield.
L4 – Anfield, Walton
Average property price: £78,895
Average Rent (PCM): £594
Rental Yield: 9.03%
L4 is best known as the home of Anfield Stadium, a major draw for football fans. The area also includes Walton, a residential neighbourhood with a strong community feel. L4 benefits from local amenities, parks, and good transport links to the city centre, making it a convenient location for tenants.
With an average property price of £78,895 and rental incomes of £594 per month, L4 boasts a rental yield of 9.03%, the highest among the areas listed. However, this is largely due to the lower entry price, with many properties being older terraced houses. Investors should consider maintenance costs, though the high yield remains favourable for those seeking affordable buy-to-let options.
The tenant mix in L4 includes families, long-term renters, and football enthusiasts. The affordable housing market attracts a wide range of tenants looking for budget-friendly accommodation near the city.
L6 – Fairfield, Kensington
Average property price: £156,575
Average Rent (PCM): £705
Rental Yield: 5.41%
L6 encompasses Fairfield and Kensington, areas known for their residential streets and close to Liverpool’s universities. Fairfield, in particular, has a more suburban feel, while Kensington is popular with students and young professionals due to its affordability and location. Local shops, parks, and good public transport connections enhance the area’s appeal.
With property prices averaging £156,575 and rental incomes around £705 per month, L6 offers a rental yield of 5.41%. This makes it an affordable option for investors looking for solid returns. The housing stock here includes a mix of terraced houses and larger properties converted into student accommodation.
The tenant mix in L6 is diverse, with students forming a significant proportion, especially in Kensington. Families and professionals also seek out properties in Fairfield for its quieter, community-oriented environment.
L8 – Toxteth
Average property price: £201,102
Average Rent (PCM): £820
Rental Yield: 4.89%
L8, covering Toxteth and surrounding areas, has seen significant regeneration in recent years. The area offers a mix of historic terraced houses and modern apartments, with increasing interest from developers and homebuyers. Toxteth’s short distance to the city centre, Sefton Park, and the waterfront makes it a desirable area.
With an average property price of £201,102 and rents of £820 per month, L8 delivers a rental yield of 4.89%. Although slightly lower than other postcodes, the area’s potential for capital appreciation makes it an attractive long-term investment. Ongoing development projects continue to enhance Toxteth’s profile.
The tenant mix in L8 includes young professionals, families, and creative individuals drawn to the area’s character and cultural vibrancy. Its improving reputation and affordable pricing are helping L8 attract a broader range of tenants.
Why L3 Stands Out for Property Investment
As shown in the table, L4 offers the highest rental yield at 9.03%, but this figure reflects the prevalence of older properties in the area, which often come with additional maintenance costs. In contrast, areas like L1 and L3 feature many modern developments, providing a balance between rental yield and long-term growth potential.
If we set L4 aside, L1 emerges as the top performer with a yield of 6.56%. However, it also has the highest average property price at £206,674. For investors seeking a slightly lower entry price but still aiming for strong returns, L3 offers a sound alternative. With an average property price of £204,773 and a rental yield of 5.86%, it remains a competitive option.
L3’s Unique Advantages
- Balanced Costs and Returns: L3’s combination of a manageable entry price and competitive rental yield makes it appealing.
- Regeneration Potential: Significant developments like Liverpool Waters and ongoing improvements in Vauxhall enhance L3’s growth prospects.
- Our Featured Projects: Advantage Investment offers short-term let properties in L3 with projected yields between 7% and 10%, surpassing the area’s average and ensuring higher returns for investors. The ongoing regeneration in L3 is due to transform the area, similar to the rejuvenation of the Baltic Triangle, a previously underutilised space, driving up property values.
While other postcodes such as L6 and L8 also show promising yields, L3’s mix of affordability, modern developments, and regeneration makes it a standout choice for investors looking to maximise returns.
Explore our featured properties in L3 and secure high yields with future growth potential. Contact us today to learn more!
