The latest Hometrack Cities UK Cities House Price Index has shown that Liverpool saw a property price increase and a boost in rental yields over the last 12 months. The city is rapidly becoming a favourite with property investors and seems to be a profitable option for buy-to-let landlords.
Hometrack UK Cities House Price Index reveals that Liverpool, along with Edinburgh, saw property price increases of 5.8% which is higher than any other city in The UK. As for rental yields, Portico Host has reported that some landlords are pulling in short-term letting yields of around 27%, with longer-term ones achieving in excess of 13%.
Liverpool’s economy appears to be growing stronger by the day, with a new stadium for Everton Football Club on the horizon, along with a £250 million road infrastructure investment and a £14billion regeneration, the city is looking more and more attractive. An ever-expanding population of students and graduates combined with low property prices, make Fairfield, Walton, Kensington ideal areas for investors.
| Area | Short-let Yield (%) | Short-let Gross Income | Rental Yield (%) | Rental Gross Income | Avg. House Price | Postcode |
| Fairfield, Liverpool | 27.2% | £32,883 | 13.6% | £16,716 | £126,779 | L6 |
| Walton, Liverpool | 25.5% | £18,493 | 7.9% | £5,700 | £72,317 | L4 |
| Kensington, Liverpool | 24.2% | £27,405 | 9.8% | £12,260 | £119,150 | L7 |
| Kirkdale, Liverpool | 23.9% | £15,930 | 8.5% | £5,786 | £73,564 | L4 |
| Anfield, Liverpool | 22.7% | £23,766 | 9.6% | £10,457 | £102,772 | L6, L4 |
| Toxteth, Liverpool | 20.9% | £13,779 | 9.0% | £5,775 | £74,250 | L8 |
| Orrell Park, Liverpool | 17.5% | £13,779 | 7.5% | £6,360 | £91,500 | L9 |
| Vauxhall, Liverpool | 15.5% | £20,885 | 6.8% | £ 20,885 | £ 139,061 | L2, L3, L |
Liverpool landlords can benefit from more than just high yields. Despite the darling of property investment, London increasingly showing signs of a plateau, forecasts predict that the north-west region and its cities will benefit from the UK’s highest levels of capital appreciation over the next five years.
On analysing Land Registry data, Portico has found that average property prices in Liverpool have jumped by 19.34 percent over the past five years, expanding from £108,267 in June of 2013, to £129,562 in June of 2018.