Market Analysis, Rental Yields and Due Diligence
Key takeaways
- Prices and rents are rising, but returns depend on the purchase price. ONS figures to mid-2026 show Liverpool house prices growing faster than the North West average, with private rents rising too. The latest figures are on the ONS website.
- Supply is uneven. Over nine in ten of the homes delivered in 2023/24 were flats, while the council's own evidence points to a need for two and three-bedroom homes.
- Gross yield is only a starting point. Published postcode yields disagree, costs reduce them, and a landlord licensing decision is due. Test every property after costs.
Liverpool has one of the most closely watched property markets in the North of England. House prices have been rising faster than the regional average, private rents are climbing, and the city is building at pace. Investors also know it for postcode yields that published guides put well above the city average.
The headline story is more nuanced than “high yield, strong growth”. The city is building plenty of homes, but most of them are flats, and the council’s own evidence points to a need for family-sized homes. Yield figures for individual postcodes vary widely between sources. And a licensing decision due after October 2026 could change the cost of letting across much of the city.
This outlook sets out what the official and published evidence says about Liverpool today: the demand, the supply, the postcodes and the rules, and what to check before you buy.
Liverpool in Numbers
The table shows the main official figures at the time of writing. Each one is dated, and the sources publish new figures regularly, so use the links to see the latest.
Liverpool at a glance
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| Measure | Figure | Context |
|---|---|---|
| Average house price, July 2026 | £189,000, up 8.1% on a year earlier | The North West rose 4.4%. Provisional figure |
| Average private rent, August 2026 | £913 a month, up 5.6% from £864 | The North West rose 5.8% |
| Households, 2022 to 2041 | From 207,840 to 246,173, up 18.4% | ONS 2022-based projection. It reaches 253,918 by 2047, up 22.2% |
| Net new homes, 2023/24 | 1,990, against a requirement of 1,739 | 91% were flats, and 56% were in the city centre |
| Draft Local Plan requirement | At least 1,864 homes a year to 2041 | A consultation draft, so the figure may change before adoption |
Sources: ONS, Housing prices in Liverpool, ONS household projections, and Liverpool City Council's housing monitoring report 2024 and draft Local Plan. Local figures rest on smaller samples than national ones, so month-to-month movements can be volatile.
Prices are rising faster than rents.
- In the year to July 2026 the Office for National Statistics (ONS) recorded Liverpool house prices up 8.1%, against 4.4% for the North West.
- In the year to August 2026 average private rent rose 5.6%, close to the North West’s 5.8%.
When prices rise faster than rents, gross yields on new purchases tend to fall unless the buyer finds a discount, which is one more reason to test each property on its own numbers. For the national picture, see our UK house prices analysis.
These figures describe a market with rising prices, rising rents and continuing housing need. They do not show that every postcode or property is a good investment. The ONS also warns that local figures rest on fewer transactions than national ones, so they can be volatile and prices may be revised.
Demand: Who needs Housing in Liverpool
The ONS 2022-based household projections show Liverpool’s households rising from about 207,800 in 2022 to about 246,200 in 2041 and 253,900 in 2047.
That is growth of 18.4% to 2041 and 22.2% to 2047, which works out at roughly 1,800 to 2,000 additional households a year.
The age mix points to rental demand. Over the same 25 years, households headed by someone:
- Aged 35 to 44 are projected to grow by 32.6%, and those
- Aged 25 to 34 by 14.2%,
While households headed by someone:
- Under 25 grow by 10.2%.
These are the age groups most likely to rent.
Liverpool also has a large student population across the following institutions:
- University of Liverpool
- Liverpool John Moores University (LJMU)
- Liverpool Hope University
- Liverpool Institute of Performing Arts (LIPA)
- Liverpool School of Tropical Medicine
- The City of Liverpool College
- Hugh Baird College
And other institutions; healthcare, retail, local government, financial and legal services which supports demand for rented homes near the campuses or employers.
Students want a different kind of home from a young family or a professional, which is why the postcode matters more than the city average. Demand across the country is strong too, and our guide to the Renters’ Rights Act and The Landlord’s Market Playbook explain how landlords are responding.
Household projections give context, but they do not guarantee demand for a particular property. The ONS rent figures in this article are average rents paid, which is stronger evidence than advertised rents. They do not show:
- How quickly similar properties let,
- How long they stand empty, or
- What local tenants can afford.
Ask local letting agents for that evidence on any property you consider.
Supply: Liverpool is Building, mostly Flats
The council’s housing monitoring report for 2023/24 records 1,990 net new homes, against an annual requirement of 1,739 in the current Local Plan.
Over the eleven years from 2013/14 to 2023/24, Liverpool delivered 23,411 net homes against a requirement of 19,129, so it has built more than the plan asked for.
Delivery is uneven, though. It reached 3,485 in 2016/17 and fell to 1,149 in 2022/23.
The mix is the important point.
Of the 1,990 homes, 1,816 (91%) were flats and 174 were houses. 1,227 were studios or one-bedroom homes, 168 had three bedrooms and 22 had four or more. The city centre accounted for 1,112 homes, 56% of the total.
The need ahead is rising. The council’s draft Local Plan, published for consultation, calculates a minimum of 29,824 net new homes by 2041, at least 1,864 a year, and says the council’s housing needs assessment points to a particular need for two and three-bedroom homes. The plan is still a draft, so the numbers may change before adoption.
The council’s 2026 housing land assessment, with a base date of 1 April 2026, identifies 509 sites with potential for housing. Identifying a site does not mean it will get planning permission or be built.
For an investor, the pattern matters more than any single total. Liverpool is not short of flats, and a city-centre flat competes directly with new schemes. Family houses are the smallest part of what was built: 174 of the 1,990 homes delivered in 2023/24, which is less than one in ten. The council publishes the report every year, so you can check how supply is changing on its monitoring reports page.
Price, rent and yield by property type
Citywide averages hide large differences between types of property. The table shows what the ONS recorded for Liverpool, with a rough gross yield worked out from each pair of averages.
Average price, rent and implied yield by property type
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| Property type | Average price, July 2026 | Average rent, August 2026 | Implied gross yield |
|---|---|---|---|
| Flats and maisonettes | £130,000 | £786 a month | 7.3% |
| Terraced | £179,000 | £917 a month | 6.1% |
| Semi-detached | £240,000 | £1,008 a month | 5.0% |
| Detached | £398,000 | £1,225 a month | 3.7% |
| All types | £189,000 | £913 a month | 5.8% |
Average rent by number of bedrooms, August 2026
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| Bedrooms | Average rent |
|---|---|
| One | £686 a month |
| Two | £837 a month |
| Three | £963 a month |
| Four or more | £1,293 a month |
Source: ONS, Housing prices in Liverpool. The yield column divides the average annual rent by the average price for each type. The two averages come from different samples, so it is a rough cross-check and not a measure of any property's return. These are citywide averages, so check comparable lets and sales for any individual property.
The yield column is a crude cross-check.
It divides the average annual rent by the average sale price for each type, and the two averages come from different samples. It does show a clear pattern:
- smaller homes carry higher gross yields, and
- larger homes carry lower ones.
It also gives a city-wide anchor of about 5.8%, which is a useful test for any postcode yield you read. A published yield well above that is only believable for the cheapest streets, and needs checking against what a comparable property really rents for.
What happens after costs?
A gross yield ignores everything it costs to run a property. The worked example below uses a flat bought for £130,000 and let for £800 a month, close to the ONS flat averages above. The costs are illustrative assumptions for the example and are not Liverpool data, so replace them with quotes and your own figures.
Illustrative example: a flat bought for £130,000 and let for £800 a month
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| Item | Amount | Basis |
|---|---|---|
| Annual rent | £9,600 | £800 a month for 12 months |
| Gross yield | 7.38% | £9,600 divided by £130,000 |
| Management | £960 | Assumed at 10% of the rent |
| Maintenance | £900 | An assumed allowance |
| Voids | £480 | An assumed allowance of about 2.6 weeks of rent |
| Insurance and compliance | £600 | An assumed allowance |
| Total running costs | £2,940 | The four lines above added together |
| Operating income | £6,660 | £9,600 less £2,940 |
| Operating yield | 5.12% | £6,660 divided by £130,000 |
The price and rent are close to the ONS averages for flats in Liverpool. The costs are illustrative assumptions for the example and are not Liverpool data. The example leaves out purchase costs, any works, mortgage interest and tax.
Costs take about 2.3 percentage points off the headline yield, and this example still leaves out the
- Purchase costs,
- Any refurbishment,
- Mortgage interest and
- Tax.
A mortgage-funded purchase needs a further check of:
- interest,
- the cash you put in and
- what happens if rates rise.
Our guides to Yield vs Void and Yield vs Growth cover the trade-offs in more detail.
Liverpool Micro-Markets
Liverpool works best as a set of separate markets. The two tables compare the main postcodes. They use HM Land Registry sale prices and two independent published yield sources, because no single yield figure for a Liverpool postcode is reliable.
Higher-yield postcodes: income first
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| Postcode | Areas | Median price, and change on previous year | Gross yield, source 1 | Gross yield, source 2 | What to check |
|---|---|---|---|---|---|
| L4 | Walton and Kirkdale | £130,000, up 4.0% | 7.6% | Not given | Street-level demand, property condition and licensing |
| L5 | Everton and Vauxhall | £125,000, not compared (small sample) | 7.2% | Not given | Small number of sales, condition, and regeneration timing |
| L6 | Anfield and Fairfield | £141,500, up 7.2% | 5.7% | Not given | HMO concentration and Article 4 in parts, and licensing |
| L7 | Edge Hill and Kensington | £157,000, up 12.1% | 5.1% | 7.1% to 8.1% | HMO concentration (Kensington Fields was 42% in April 2024), Article 4 and licensing |
| L13 | Old Swan and Tuebrook | £160,000, up 8.5% | 6.7% | Not given | Rent for a comparable house, and condition |
Median prices are for standard sales in Liverpool from 1 August 2025 to 31 July 2026, calculated from HM Land Registry Price Paid Data, with the change measured against the previous twelve months. Sample sizes are small in some postcodes, and the change can reflect the mix of properties sold. Source 1 is Property Investments UK (asking prices and rents, updated July 2026). Source 2 is Northwood, a Liverpool letting agent (January 2026). Yields are indicative, gross and not like-for-like. The "What to check" column is general guidance, not advice for any individual investor.
City centre and longer-term postcodes
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| Postcode | Areas | Median price, and change on previous year | Gross yield, source 1 | Gross yield, source 2 | What to check |
|---|---|---|---|---|---|
| L1 | City centre and Ropewalks | £142,025, down 7.6% | 6.4% | 5.8% to 6.4% | Service charges, ground rent and competing new schemes |
| L3 | City centre and Vauxhall | £171,896, down 0.9% | 6.4% | Not given | Service charges, ground rent and competing new schemes |
| L15 | Wavertree | £207,500, up 8.1% | 3.6% | 6.5% to 7.5% | The two yield sources disagree, so check the rent a comparable house achieves |
| L17 | Aigburth and Sefton Park | £246,125, down 4.5% | 4.1% | Not given | Entry price against rent, and HMO rules near Sefton Park |
| L18 | Mossley Hill and Allerton | £325,000, down 4.4% | 4.1% | Not given | Entry price against rent, and the depth of family demand |
| L25 | Woolton and Gateacre | £285,000, up 4.7% | 4.8% | Not given | Entry price against rent, and the depth of family demand |
Sources and method as in the table above. In L1 and L3, 98% and 93% of sales over the period were flats, so the median price is a flat price. The tenant and strategy descriptions are general guidance, not market data.
The tables show the key point: the right postcode depends on the investor’s objective.
- An investor seeking income may look at the first table.
- An investor seeking stability and family demand may look at the second.
The two yield sources often disagree.
- For L7, one gives 5.1% and the other 7.1% to 8.1%.
- For L15, one gives 3.6% and the other 6.5% to 7.5%.
The sources use different samples and methods, and neither shows its full workings, so treat both as indicative.
To work out a yield yourself, divide the annual rent a comparable property achieves by the price you would pay, then deduct the real costs.
The sale prices come from HM Land Registry Price Paid Data. The change in median price can move because of the mix of properties sold, not only because values moved, and the latest months are still being registered, so use it as a signal to investigate and not as a growth rate. The ONS figure of 8.1% is the better guide to the city as a whole.
Important: These are broad profiles and guidance, not guarantees. Postcode averages can hide big differences between streets and between individual properties.
Student Lets and HMOs
Liverpool controls houses in multiple occupation (HMOs) through planning. The council’s draft Local Plan records that an Article 4 direction was adopted in June 2021, so planning permission is needed to turn a family home into a small HMO in the areas it covers. The council also publishes HMO concentration figures for its designated neighbourhoods. In April 2024 these included:
- 42% in Kensington Fields and
- 37% in The Dales.
The draft plan proposes refusing a conversion where HMOs already make up 10% or more of dwellings within 100 metres.
Purpose-built student accommodation adds competition. The council counted 1,111 student bedspaces delivered in 2023/24, all in the city centre.
HMO licensing is a separate requirement. Under the GOV.UK rules, a large HMO needs a licence when it is rented to five or more people who form more than one household, and the council can require licences for smaller properties in some areas. Check planning and licensing for the specific property.
Landlord Licensing: A Decision is Due
Liverpool runs a selective licensing scheme, which the council calls Landlord Licensing. It applies to privately rented homes in designated wards, and a landlord generally needs a licence for each let property.
According to the council’s own news service, the current scheme began in April 2022 and ends in March 2027. A consultation on the next scheme closed on 5 October 2026, with three options covering 64, 29 or 26 wards. The council decides after the consultation, and no decision date has been published at the time of writing.
If you are buying a let property in Liverpool, check whether it falls inside the current scheme and what the next one may cover. The council’s landlord licensing page is the place to look, and the council’s announcement sets out the options. Licence fees and any gap between schemes affect your costs, so build them into the numbers.
Regeneration and Jobs
Regeneration supports demand in parts of the city, though timing is long. The draft Local Plan describes the Liverpool Waters scheme in the north docks, with outline planning permission since 2013 and a delivery period of 30 to 40 years.
It identifies the city centre’s northern fringes, including Liverpool Waters and Ten Streets, as a focus for around 17,700 homes up to 2041, most of them already committed.
It also says the Knowledge Quarter has already seen £1 billion of development, with a further £1 billion proposed for Paddington Village.
A property near a regeneration area can have a very different demand profile from another in the same postcode, but the benefit depends on the schemes actually being built, so check what has planning permission and has started.
Which Route Matches your Priority?
Start with what you want from the investment, then see where in Liverpool the published evidence points you to look first.
Match the route to your priority
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| Your priority | Look first at | The trade-off | Check before buying |
|---|---|---|---|
| Monthly income | Houses and smaller properties in L4, L5, L6, L7 and L13 | Published yields are higher here, but the two sources disagree and condition and demand vary by street | The rent a comparable property really achieves, and whether the street is licensed |
| Long-term family demand | Family houses in L15 and L25, and L17 and L18 at higher prices | Higher entry prices and lower published yields | Whether the rent supports the price, and how deep the family demand is |
| Hands-off letting | City-centre flats in L1 and L3 | Service charges and ground rent, and new schemes competing for the same tenant | Lease terms, service charge history and nearby supply |
| Refurbishment | Lower-priced houses where the median price is below the rest of the city | The works cost, the contingency and the end value all have to be proved | Total cost against comparable sold prices, the rent after works, and licensing |
| Student or HMO | Neighbourhoods on the council's HMO list, such as Kensington Fields, The Dales and Smithdown Road | High HMO concentrations in places, and purpose-built student blocks as competition | Article 4 planning, HMO concentration, and licensing |
This table is general guidance based on the evidence in this article, not advice for any individual investor. Our guide to Yield vs Growth covers the income and growth trade-off.
A higher yield does not mean lower risk. The useful question is
- Why the yield is high, and
- Whether the extra return is enough for the extra risk.
How to Test a Liverpool Investment
Before you commit to a property:
- Verify the price. Compare recent sold prices for similar properties, not asking prices alone.
- Test the rent. Use comparable lets, and separate advertised rents from rents achieved.
- Count every cost. Include purchase costs, works, finance, management, repairs, voids, insurance and compliance.
- Check the rules. Confirm planning use, HMO and selective licensing, lease terms and any other obligations for the specific property.
- Stress-test the figures. Model a lower rent, a longer void, higher repair costs and a higher mortgage rate.
- Think about the exit. Ask who will buy the property later, and how its condition, lease or licensing will look to them.
- Recheck the evidence. Make sure the data and rules are still current before you offer or exchange.
Competing flats, licensing costs and headline yields that overstate the return are the risks this article’s evidence points to in Liverpool, and each is easier to manage before you buy than after.
How to Check the Latest Liverpool Figures
This article gives a dated snapshot. For the latest, use the sources themselves:
- ONS, Housing prices in Liverpool: average price and rent, updated monthly.
- Liverpool City Council monitoring reports: annual housing delivery.
- Liverpool Local Plan stages: where the new plan has got to.
- ONS household projections: projected households by area.
- Liverpool housing land assessment: the council’s latest list of potential housing sites.
- HM Land Registry Price Paid Data: what properties sold for.
- Liverpool City Council landlord licensing: the current scheme and the decision on the next.
Property portals, investment sites and local agents may publish newer asking prices, rents and yield estimates than this article. They are useful for spotting change, but an asking price or an advertised yield is not proof of an achieved rent or a net return. Sources for this article were checked on 13 October 2026, so look at the date, the source and the method before you rely on any figure.
The Bottom Line
Liverpool offers a range of opportunities, with rising prices and rents, growing household numbers and a city investing in regeneration, but none of that makes every property a good buy. The building programme creates competition in the city-centre flat market, and family houses are a small share of what is built. Postcode yields are harder to pin down than the headlines suggest, and the licensing decision will shape landlords’ costs. The strongest investment is the one where the numbers still work after realistic costs, for a tenant group you can name, at a price supported by comparable evidence.
Not investing in Liverpool?
We source in the city you choose, and our outlooks for Manchester, Leeds and Oxford are already published.
How Coresworth can Help You Invest in Liverpool
Understanding Liverpool’s property market is the first step. Finding the right property requires a closer assessment of:
- Your budget,
- Investment strategy,
- Target tenant and
- Acceptable level of risk.
Coresworth works with investors who know what they want to buy and need help finding suitable opportunities that match their written criteria.
This article is general information and is not investment advice. Property values, rents, yields and demand can change. Investors should carry out their own due diligence, verify current market data and obtain appropriate legal, tax, mortgage, planning and licensing advice before committing to a purchase.
Coresworth Research writes the Propertyology series for Coresworth Properties. Figures are drawn from published sources, which are linked at the end of each article.
Sources
- Office for National Statistics: Housing prices in Liverpool (average price £189,000 in July 2026, up 8.1%; average rent £913 in August 2026, up 5.6%; price and rent by type and bedrooms)
- Office for National Statistics: Household projections for England, 2022-based (migration category variant: households by year and by age of household reference person)
- Liverpool City Council: Five Year Housing Land Supply and Housing Monitoring Report 2024 (completions, mix, student bedspaces, HMO concentrations; latest published on the council’s monitoring page when checked)
- Liverpool City Council: Strategic Housing Land Availability Assessment 2026 (509 sites with housing potential, base date 1 April 2026)
- Liverpool City Council: Draft Local Plan 2025 to 2041 (housing requirement, Article 4 direction, Liverpool Waters, Knowledge Quarter)
- Liverpool City Council: Residents invited to have their say on the future of the private rented sector, 27 July 2026
- HM Land Registry: Price Paid Data (postcode median prices and flat shares for standard sales in Liverpool from 1 August 2025 to 31 July 2026, with the previous twelve months for comparison, calculated from the data)
- Property Investments UK: Liverpool buy to let (postcode gross yields from asking prices and rents, updated July 2026)
- Northwood: Yields vs growth: why Liverpool is the UK’s leading income-first choice for 2026 investors (postcode yield ranges, a letting agent’s guide, published 23 January 2026)
- GOV.UK: House in multiple occupation licence
Sources checked October 2026. Property figures, rental yields and market conditions can change. Investors should carry out their own due diligence before making investment decisions.