Is a rental property in Liverpool a good buy right now?

If you’re looking to become a landlord in the UK at the moment, it's easy to be put off by the current flat and slow-paced market

Interest rates are higher than they were a few years ago, costs have increased and there’s been plenty of uncertainty around the rental market's continued growth.

But the North West, and Liverpool in particular, provide an interesting opportunity...

There are plenty of areas you could buy in for a significant discount, as a result of the poor market sentiment.

Of course, not every property is a good deal. But if you get the location, price and tenant right, there are a lot of opportunities here.

1. Liverpool is still relatively affordable

One of the biggest attractions is price.

The provisional average house price in Liverpool was around £189,000 in July 2026, according to the latest ONS figures.

More importantly, Liverpool properties remain relatively affordable compared with many parts of the UK, and may offer potential for longer-term capital growth.

That matters for landlords because the purchase price has a big impact on the numbers.

A property bought for £180,000 and rented for £1,000 a month is a very different proposition to a £400,000 property achieving the same rent. In short the first property offers a much higher yield than the second

So while everyone talks about rental income, what you pay for the property matters just as much.

2. Rents are still increasing

The other side of the equation is rental demand.

Average private rent in Liverpool reached around £913 per month in August 2026, up 5.6% compared with the previous year.

And obviously, the actual rent you can achieve can be much greater, depending heavily on the property.

A one-bedroom flat is going to have a very different rental market to a three-bedroom house.

This is why landlords shouldn't simply look for the property with the highest advertised yield.

The better question is:

Who actually wants to live there, and what are they willing to pay?

3. The highest yield isn't always the best investment

A property advertised with a 7% or 8% yield can look very attractive.

But there's a lot more to consider.

Mortgage costs, maintenance, insurance, management fees, service charges, void periods and compliance costs can all make a difference.

And then there's the tenant.

A property that attracts lots of tenant interest but has constant turnover and management problems might be very different from one that attracts a reliable tenant who stays for several years.

The headline yield doesn't tell you everything.

4. Location. Location. Location

Something nice about Liverpool as a property market is how different its neighbourhoods are.

A property in the Georgian Quarter is going to attract someone very different to one in Mossley Hill.

A city-centre apartment is different from a family house in Woolton.

A property near the universities is different from one close to major employment areas.

Moreover, properties within neighbourhoods can vary a lot.

In the Georgian Quarter, for example, a house by the park on Faulkner Street is going to be significantly more desirable than one three streets away.

5. Think about the tenancy before you buy

As always, this is probably the biggest thing I'd encourage you to think about. Because today more than ever choosing the right tenant can mean the difference between a profitable asset and a time and financial headache.

Instead of:

"What property should I buy?"

Try:

"Who do I want living in my property?"

Then work backwards.

For example if you're targeting professionals, you might prioritise different locations, property types and features than if you're targeting students.

And if you're looking for longer-term tenants, the way you market and manage the property can again be different.

This is part of the thinking behind Fairlylet

We're interested in making this process easier by being more personal.

Rather than simply taking a property and trying to fill it with whoever comes along, the idea is to understand what the landlord actually wants from their tenant and then look for the right match.

Because letting shouldn't simply be about "How quickly can we fill this property?"

It should be about:

"Who is the right person for this property?"

For landlords, that could mean an easy tenant, a better experience and potentially a longer-term relationship.

And for tenants, it means finding properties that actually suit what they're looking for.

So, why is Liverpool a good place to buy a rental?

There are certainly some interesting opportunities.

Property prices are still relatively accessible, rents are growing and Liverpool has a large and varied tenant population.

But I wouldn't say "buy any property in Liverpool and you'll do well."

The property, the price, the area and the tenant all matter.

For me, that's what makes the Liverpool market interesting.

It's not just about finding a property with a big headline yield.

It's about finding the right property, in the right location, for the right tenant.

Figures are based on the latest available data at the time of publication. Property investment carries risks and individual returns will vary.