Imagine yourself walking through Liverpool’s bustling streets, surrounded by the lively energy of a city that never rests. Liverpool is a desirable location for investors, especially those interested in the buy-to-let market, thanks to its distinctive mix of a thriving economy, a rich cultural heritage and an array of varied communities that suit everyone’s needs. Due to this, it can be challenging for many individuals to know where to start with so many various neighbourhoods to choose from. Our Liverpool letting agents are the best in the market with premium property services.
Read on to learn about some of the top buy-to-let locations in Liverpool if you’re interested in making an investment in the city’s booming real estate market.
1. L7: Kensington, Edge Hill, and Fairfield
The finest location in Liverpool for finding buy-to-let homes is postcode area L7. Edgehill, Kensington, and Fairfield are all located here. If you’re seeking to invest, L7 is a wonderful area because the houses have excellent rental yields. You should expect returns of about 8% which is fantastic given that the norm is only about 3%. Liverpool’s home rates are also excellent. Properties in L7 cost, on average, £143,000 to purchase. An astounding cost when you contemplate the typical UK home costs £281,000.
With rates rising 13% over the previous five years, growth in the region has also been strong. A property near L7 may be a decent purchase if you’re looking for one.
2. L20: Bootle
Another excellent neighbourhood in Liverpool for buy-to-let homes is L20. The area has excellent renting yields of about 7%, and annual development has been outstanding. The cost of homes has increased 43% in Bootle over the past three years. Therefore, if you’re looking for financial growth and income, this is a possibility for you.
Additionally, even when compared to L7, Bootle real estate is very affordable. The typical cost of a home in L20 at the moment of writing is $128,000. When compared to the UK norm, that represents a great deal. Check out L20 if you’re searching for a good bargain.
3. L4: Anfield and Walton
The third place on this list, L4, is yet another fantastic buy-to-let area in Liverpool. This is certainly a place you should look into because of the excellent returns and affordable properties. Around 9% on average is what the yields in Walton and Anfield are! One of the greatest outputs in the nation currently. Nevertheless, some regions are double digital.
Currently, the national average for home values is £115,000. Even more affordable than the places mentioned above. The price has grown by 24% over the last five years, which is a healthy growth rate.
4. L1: City Centre
The centre is an ideal option if you’re searching for a good business location. Your home will be a lucrative asset in addition to being near businesses and transportation options. Yields are still very good despite being in the city’s heart. In L1, you can anticipate a return of about 7%. But be advised, the asking price of £165,000 is a little greater than that of the neighbourhood.
The centre’s development is beginning to slow down, though, in contrast to the other regions. The region has shrunk by – 4.4% over the previous three years. Therefore, you might have better success elsewhere in Liverpool if you’re looking for financial growth.
5. L5: Everton and Vauxhall
Another great neighbourhood in Liverpool to acquire a buy-to-let is L5. It is a beginning investor’s fantasy with excellent yields and affordable costs. L5, which encompasses Everton and Vauxhall, presently has a leasing return of around 7%. Although not as big as a couple of the other regions, this one is still good enough to look into further.
With an average price of £130,000, house rates are also excellent. Even though there are less expensive neighbourhoods in Liverpool, L5 is still a good deal. The declining development rate is the only factor to be on the lookout for. L5 has shed -7% of its worth over the last three years. This region is for you if you’re looking for regular cash flow. We advise looking somewhere else if you’re a long-term trader looking for growth.
6. L15: Wavertree
Properties specifically for business are available in L15. However, compared to other parts of Liverpool, it is a little more costly. Because of the lesser yields, the region is less appealing to buyers seeking consistent cash flow.
L15 has an average home price of about £202,000, which is higher than most of these areas but still below the UK average. This places the area’s leasing yield in the 5% to 7% region. Not terrible, but not outstanding in comparison to other places. The capital growth rates appear to be favourable. The region has grown by more than 24% over the last 5 years which is amazing.
7. L6: Elm Park
L6 is yet another area that joins the list as an excellent place to acquire a buy-to-let. The region has affordable properties, strong yearly development, and a decent rental yield. You can anticipate receiving an average renting yield of 6%, with clear variations based on the kind of home you choose. The current average price, which is £151,000, is still within reach of most people. In this field, capital development has also been remarkable. The region has grown by 29% over the last five years and is ideal for both novice and long-term investment.
8. L13: Clubmoor, Stoneycroft, Tuebrook, Old Swan, and Stanley
L13 is emerging as great option for buyers looking to expand their portfolios. Numerous diverse neighbourhoods can be found in the region, including Clubmoor, Stoneycroft, Tuebrook, Old Swan, and Stanley, which offers landlords a lot of options when it comes to deciding where to buy a home.
L13 is presently yielding 7%, which is significantly greater than the average for the country. With an average home price of £151,000, which is comparable to L6, the area is also affordable. So, if you’re a novice trader with limited resources, this region is perfect for you. However, growth here isn’t as strong as it is in other places. Over the past three years, the area has grown by 16%.
9. L3: City Centre, Vauxhall, Knowledge Quarter, and Baltic Triangle
We have now come to L3, which is located back in the middle. Areas of the City Centre, Vauxhall, Knowledge Quarter, and Baltic Triangle are located here. For those looking to engage in buy-to-let properties in Liverpool, this postcode region is fantastic. Especially if you’re looking for fresh versions. This Liverpool neighbourhood has seen a lot of development, including numerous new flats. This postcode should be closely monitored by investors seeking a rental plan.
Despite including the city centre, L3 has a leasing return of about 7%. However, asking prices are slightly greater than the alternatives, resting at £177,000 instead. Therefore, new buyers with limited start-up funds may not be able to participate in this.
10. L8: Toxteth, Princes Park, and Dingle
Finally, L8 is a fantastic neighbourhood to invest in buy-to-let houses in Liverpool. The neighbourhood comprises Toxteth, Princes Park, and Dingle. Although this area code has greater returns than the preceding places, it is more expensive and doesn’t seem to be expanding. The average rental yield in this neighbourhood is 7%, which is quite good. However, the average house price sits at £167,000, which is slightly higher than in other areas in Liverpool.
It is also important to note that the region hasn’t grown.L8’s value has dropped during the past three years by -14.9%. Despite this, if you’re seeking for a consistent rental revenue flow, the returns on rentals are still excellent here.
In conclusion, Liverpool will continue to be a promising destination for buy-to-let property investments in 2023. It takes persistence, perseverance, and commitment to invest in buy-to-let homes. Investors can make well-informed choices that can result in long-term success by keeping up to date on the most recent trends and changes in Liverpool’s real estate market. Liverpool’s real estate market presents buyers with a unique chance to increase their wealth and achieve financial independence with the right strategy and careful preparation.