Liverpool boasts an average rental yield of over 6.1%; investors looking to diversify their property portfolio should consider the lucrative buy-to-let market in this city. Liverpool is a city undergoing rapid regeneration and experiencing a renaissance as an economic and cultural hub in the UK. For both savvy and new investors, now is the ideal time to identify areas poised for strong capital growth and solid rental yields over the coming years.
This guide highlights the best buy-to-let areas in Liverpool based on our expert research at API Global.
The 7 Best Buy-to-Let Areas in Liverpool
We’ve scoured the property market for the 7 best postcodes in Liverpool for buy-to-let and summarised our findings in the following table:
|Property Price (Average)
|Rental Yield (Average)
|L1: City Center
|L4: Anfield and Walton
Let’s delve into why we recommend these locations for property investment in Liverpool:
1. L1: City Centre
As Liverpool’s central business district, the L1 postcode offers strong capital growth potential boosted by increasing property demand. The proximity to amenities, transport links, and nightlife attract both owner-occupiers and renters. For investors seeking hands-off buy-to-let properties, the city centre provides everything tenants could want within walking distance.
Areas like Ropewalks and Baltic Triangle have become popular with young professionals and students due to independent bars, restaurants and creative hubs. New-build apartments and loft-style living are appealing options for renters seeking a stylish city base. Transport connections at Liverpool Lime Street and Liverpool Central stations mean commuters can easily travel in and out of the city centre for work.
With major regeneration projects like Liverpool Waters and Paddington Village underway, the city centre residential market looks set to strengthen over the coming years. For investors, the L1 postcode provides an opportunity to achieve both strong rental demand and significant capital appreciation on the Liverpool investment property. The city centre’s transformation into a leading business and tourism destination cements its status as a top property investment area in Liverpool.
2. L3: Everton
- Average Property Price: £116,810
- Average Rental Yield: 7%
Investors looking for up-and-coming UK property areas with potential for strong capital growth should have the Liverpool L3 postcode region on their radar. This area encompasses Everton, which has seen an influx of investment and development in recent years.
Investors should consider properties in proximity to major transport links, amenities, and Liverpool John Moores University. These areas are within walking distance of the University of Liverpool and Royal Liverpool University Hospital. Everton also provides short rental opportunities, especially for students and young professionals who wish to reside near the Everton FC football stadium.
With multiple large-scale regeneration projects planned over the next 5–10 years, including the recently completed expansion of the Royal Liverpool University Hospital and the development of the Liverpool Waters project, demand for housing in L3 postcodes is likely to rise. For investors seeking rental income and long-term property value growth, investing in Liverpool’s L3 residential projects, such as Tobacco Warehouse, is a wise decision.
3. L4: Anfield and Walton
- Average Property Price: £111,493
- Average Rental Yield: 6.6%
The L4 postcode covers Anfield and Walton and is home to Liverpool Football Club’s historic Anfield stadium. Anfield is an up-and-coming area currently undergoing major redevelopment and investment. The Anfield Project will see new housing, improved public spaces, and community facilities added over the next decade.
Property and rental prices in L4 remain affordable but are rising steadily, making it the best area to invest in Liverpool for many. The average house price is about 50% below the Liverpool average, indicating room for price growth. Strong rental demand from students, young professionals, and Liverpool football club fans provides solid rental income potential.
Transport links in L4 are excellent. Anfield is a 23-minute bus ride from Liverpool city centre and 75 minutes away from Liverpool John Lennon Airport. Also, major road and rail connections put Manchester and other North West cities within easy reach.
L4’s location, affordable property prices, transport connectivity, and redevelopment potential make investing in this Liverpool property market a great choice for investors seeking capital growth and rental income over the medium to long term. Acting now to purchase property in Anfield and Walton before further price increases is recommended to maximise investment returns — investors should contact their wealth manager for the next steps.
4. L8: Toxteth
- Average Property Price: £155,961
- Average Rental Yield: 7%
Toxteth is an inner-city area located just south of Liverpool city centre. Over the last decade, the L8 postcode of Liverpool has seen major regeneration and investment. New developments like those in Welsh Streets have transformed run-down terraced houses into contemporary homes, attracting young professionals and families.
As an up-and-coming urban neighbourhood, Toxteth offers solid opportunities for buy-to-let property investors seeking capital appreciation and competitive rental yields. House prices in L8 remain affordable compared to other central Liverpool locations, indicating room for value growth as demand increases and the area continues to gentrify. For rental income, L8 provides proximity to universities and hospitals, a demographic that values location and amenities.
Overall, Toxteth in the L8 postcode area presents a compelling option for buy-to-let in Liverpool over the next few years. With major regeneration leading to an influx of new residents and businesses, L8 is poised to emerge as one of Liverpool’s most desirable inner-city neighbourhoods. For investors, the potential rewards of early entry into this burgeoning market are substantial.
5. L7: Kensington
- Average Property Price: £144,522
- Average Rental Yield: 9.79%
The L7 postcode district of Kensington, Liverpool, is an up-and-coming area expected to see strong capital growth over the next few years. Located just 2 miles from Liverpool’s city centre, this residential suburb provides easy access to employment opportunities and amenities.
International property investors seeking where to invest in Liverpool for higher rental yields and capital gains should consider the L7 postcode district. Home to the University of Liverpool and several hospitals, demand for student housing and healthcare professional accommodation is increasing in this area. Property values here remain relatively affordable but are projected to rise steadily in the coming years as major regeneration projects take shape.
For buy-to-let investors, L7 Kensington offers an attractive combination of solid rental demand and the potential for healthy long-term returns, making it an ideal choice for Liverpool buy-to-let investment. The area is well-connected by public transit for tenant convenience. As an added benefit, the purchase of energy-conscious new build rental properties may qualify for tax incentives under the UK government’s Landlord’s Energy Saving Allowance (LESA) scheme.
In summary, the L7 postcode district exhibits many of the attributes savvy buy-to-let investors seek — a strong and growing rental market, opportunities for capital appreciation, fiscal advantages, and a strategic location. For these reasons, Kensington should rank highly on any investor’s list of Liverpool’s top areas for buy-to-let investment in the coming years.
6. L20: Bootle
- Average Property Price: £145,045
- Average Rental Yield: 6%
The L20 postcode covers Bootle, a port town just north of Liverpool city centre. Bootle is an up-and-coming area currently undergoing major regeneration. New developments like those proposed for the Strand Shopping Centre and Dock Road are projected to revitalise the local economy.
Transport links in Bootle are excellent, with 3 train stations and major roads like the A5036 for easy access to Liverpool. The area is also near the Port of Liverpool, one of the UK’s largest container ports. This solid infrastructure makes Bootle attractive for business investment and job creation.
House prices in Bootle are affordable compared to the rest of Liverpool, with the average terraced property selling for around £120,000. Rental demand is strong, especially for family homes near good schools. Average rental yields of 6% are possible, providing healthy returns to buy-to-let investors seeking capital growth over the long run.
While some parts of Bootle still require improvement, ongoing regeneration and development initiatives are transforming the area. For patient investors on a budget, Bootle offers an opportunity to get into the UK property investment market and benefit from significant future price appreciation. With its strategic location, transport links, job opportunities and affordable housing, Bootle is one of the best buy-to-let areas in Liverpool.
7. L23: Crosby
The L23 postcode area of Crosby, situated north of Liverpool city centre, is an up-and-coming neighbourhood for buy-to-let investors seeking capital growth. House prices in L23 have increased by over 300% in the last 10 years and continue to rise steadily as more young professionals and families move into the area.
Crosby is a coastal suburb with a scenic beach promenade, outdoor spaces, and good transport links to Liverpool’s city centre. The area appeals to both tenants looking to rent as well as homeowners, ensuring a consistent demand for investment properties. Capital growth is projected to remain robust in the area over the coming years.
For buy-to-let investors, the L23 postcode offers affordable entry points to the Liverpool property market with the promise of solid returns. Two and three-bedroom houses are in high demand for rentals, with average yields of around 4%. New-build properties, especially those within a 10-minute walk of Crosby village centre or train station, also present good investment opportunities with strong tenant appeal and the possibility of higher yields.
Overall, the L23 area of Crosby exhibits many attributes of an ideal buy-to-let location in Liverpool — a growing population, limited new housing supply, proximity to transport links and community amenities, and a consistent tenant base for investors seeking long-term capital growth and income. As a result, the suburbs of Crosby deserve strong property investment consideration.
Frequently Asked Questions
Is Liverpool a good place to buy investment property?
Yes, Liverpool is a great place to purchase investment property. Its growing city status translates to high demand, particularly for city centre flats and properties in affluent areas. The city’s consistent growth, coupled with high rental yields, makes it a strategic choice.
Furthermore, Liverpool property prices and ongoing development projects promise future economic growth, further enhancing its appeal for property investment. Therefore, investing in Liverpool’s real estate market, particularly in high-demand areas, could yield significant returns.
What are the up-and-coming areas in Liverpool?
Several areas in Liverpool show significant potential for growth and development, including:
- Bootle: An area experiencing regeneration, giving it the potential to attract diverse residents.
- The City Centre: A bustling hub promising both convenience and high demand.
- Anfield: An urban area noticing an upswing due to its proximity to the famous Liverpool football club stadium.
- Liverpool Waters: A vast £5.5 billion development project set to transform the city’s waterfront.
Each area offers unique opportunities, marking Liverpool as a city on the rise.
What is the yield on buy-to-let Liverpool?
Liverpool offers compelling rental yields, with an average of 6.1%, according to the Homelet Rental Index and Land Registry UK House Price Index. This surpasses the national average of 4.75%, highlighting the city’s potential for buy-to-let property investments. Moreover, certain areas in Liverpool present even higher yields, making the city an attractive choice for those seeking a return on their investment.
What is the best postcode to live in in Liverpool?
Choosing the best postcode in Liverpool depends on an investor’s preferences.
Some of the highly ranked ones include:
- L1 (Liverpool City Centre): Offers convenience and high rental demand, making it an ideal choice for city dwellers.
- L3 (Everton): Has a growing, rental property market and proximity to major universities.
- L4 (Anfield and Walton): These areas are on the rise, particularly due to their proximity to the famous Goodison Park.
- L23 (Crosby): Offers a more suburban feel yet still boasts a strong property market.
Each postcode offers unique advantages, raking Liverpool as a city with diverse living options.
What is the nicest area to live in Liverpool?
Allerton and Aigburth, located southeast of Liverpool’s city centre, are considered amongst the nicest areas to reside in. Young couples and workers love these regions for their outstanding schools and the abundance of green spaces, parks, and river walks. They’re highly sought after by those seeking a balance of urban living and natural beauty.
With several postcodes showing strong potential for capital growth and good rental yields, investing in Liverpool property remains attractive. The areas outlined in this post present some of the best opportunities to invest in Liverpool’s burgeoning property market over the coming years. Investors should conduct due diligence before making any investment decisions since property investment is a long-term commitment that must be done right. Investors seeking to buy property in the best buy-to-let areas in Liverpool should contact their wealth manager for the next steps.
Disclaimer: Any information API Global provides does not constitute financial advice and is for educational purposes only.