Liverpool property market thrives in 2025 with double-digit growth

‍

Liverpool’s property market is showing impressive resilience and growth in 2025. Between rising house prices, strong rental demand, and significant regeneration investment, it’s one of the standout UK cities for property investors, first-time buyers, and those seeking long-term capital appreciation.

Liverpool property prices rose 14.0% in the year to March 2025, with the average property price reaching about £180,000. In parallel, other data show that in the 12-month period Aug 2024-Jul 2025, the average price in the Liverpool postcode area was £216,000, a 7% increase over the previous 12 months (plumplot.co.uk).

The rental market is rising even more sharply. In March 2025, average monthly rents were up 9.7% year-on-year to about £844 per month, while earlier figures from October 2024 showed rent growth of 8.4% YoY, with average rent in Liverpool at £801 per month (accio.com). Despite strong price rises, the city remains relatively affordable compared to many other UK locations. First-time buyers are paying on average about £166,000, while terraced properties, which are in particularly high demand, average around £163,000. Gross rental yields in many areas are reported in the 6-8% range, keeping Liverpool firmly on the radar of investors.

Regeneration and infrastructure schemes are also helping to push the market forward. Major projects such as Liverpool Waters and the Knowledge Quarter, along with transport and cultural investment, are enhancing the city’s appeal for both residents and investors. Over the period Aug 2024-Jul 2025, there were about 8,900 property sales in the Liverpool postcode area, with forecasts suggesting further capital growth through to 2029, as much as 29.4% in some reports.

Liverpool stands out because it offers excellent value for money compared to other major UK cities, coupled with consistent rental demand from students, professionals, and families. Regeneration is transforming neighbourhoods, boosting local amenities and infrastructure, and ensuring a steady pipeline of modern housing. Investors are attracted by the dual benefits of strong rental yields and the prospect of continued capital growth.

Looking ahead, the outlook for the remainder of 2025 and beyond remains positive. While the pace of growth may vary across neighbourhoods, factors such as interest rates, mortgage availability, and the delivery of new housing will play important roles. With investor sentiment still strong and regeneration projects continuing at scale, Liverpool is well-positioned to sustain its momentum.

Overall, the city’s property market in 2025 is in very good shape. Properties are gaining value at a healthy rate, rents are climbing in response to demand, yields remain appealing, and major developments continue to reinforce Liverpool’s reputation as one of the UK’s most promising investment hotspots.

‍