Property Market Intel

The Best Buy-to-Let Areas in Liverpool in 2023

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Written by Lewis Ridley

Updated over a week ago

Looking for buy-to-lets in Liverpool but don’t know where to start? After all, for new investors, it can be a challenge picking an area in Liverpool for their first investment property.

To help you out, we’ve listed the best buy-to-let areas in Liverpool. They include:

1. L7 – Edgehill, Kensington, and Fairfield
2. L20 – Bootle
3. L4 – Anfield and Walton
4. L1 – Liverpool City Centre
5. L5 – Everton and Vauxhall
6. L15 – Wavertree
7. L6 – Elm Park
8. L13 - Clubmoor, Tuebrook, Old Swan, Stoneycroft, and Stanley
9. L3 – City Centre, Baltic Triangle, Knowledge Quarter, and Vauxhall
10. L8 - Toxteth, Princes Park, and Dingle

This article will dive into each area and explain what makes them such a good investment. Let’s jump straight in.

How to Get a Mortgage for an Auction Property

L7 – Edgehill, Kensington, and Fairfield

Postcode area L7 is the best place to find buy-to-let properties in Liverpool. This location holds Edgehill, Kensington, and Fairfield.

L7 is a great spot if you’re looking to invest as properties here have a great rental yield . You’re looking at yields around 8%. Which is great when you consider the average is around 3%.

The house prices in Liverpool are also very good. You can pick up properties in L7 for an average of £143,000. An incredible price when you consider the average UK property is priced at £281,000 (at the time of writing this).

Growth is also good in the area, with prices increasing by 13% over the past 5 years. If you’re after a good investment property, investigate properties around L7.

L20 – Bootle

L20 is another great area in Liverpool for buy-to-let properties. The location has a very good rental yields of around 7% and the yearly growth has been fantastic.

Over a 3-year period, Bootle has experienced a 43% increase in house price. So, if you’re hunting for capital appreciation and yield, this is an option for you.

Additionally, the properties in Bootle are also very cheap, even when compared against L7. At the time of writing this, the average house price in L20 is £128,000. That’s a bargain when compared against the UK average.

If you’re looking for a cheap deal, check out L20.

L4 – Anfield and Walton

L4 is third on this list and another great buy-to-let location in Liverpool. With great yields and cheap properties, this is definitely somewhere you need to check out.

Yields in the Anfield and Walton areas average around 9%! That’s one of the highest yields in the country. Although some areas do go up to double digital.

In terms of house prices, we’re currently seeing averages of £115,000. Even cheaper than the areas above. The growth rate is good as well, as price has increased by 24% over the past 5 years.

L1 – City Centre

If you are looking for a decent investment area, the centre isn’t a bad shout. Not only will your property be close to shops and transport links, but it’ll also be a profitable asset.

Despite being the city centre, yields are still very high. You can expect to get a yield in L1 for around 7%. Be warned, however, that the asking price is a little higher than the surrounding areas, sitting at £165,000 (at the time of writing this).

However, unlike the other areas, growth in the centre is starting to slide. Over the last 3 years, the area has decreased by -4.4%. So, if you’re after capital appreciation, you might have better luck elsewhere in Liverpool.

L5 – Everton and Vauxhall

L5 is another good area to purchase a buy-to-lets in Liverpool. With good yields and low prices, it is a beginner investor’s dreams.

L5 includes Everton and Vauxhall, and currently has a rental yield around 7%. Not at large as some of the other areas, but still decent enough to investigate further.

House prices are good as well, with average prices sitting at £130,000. Again, there are cheaper areas in Liverpool, but you’re still grabbing a bargain with L5.

The only thing to watch out for is the falling growth rate. In the past 3 years, L5 has lost -7% in value. If you’re after monthly cashflow, this area is for you. If you’re a long-term investor hunting for appreciation, we suggest you look elsewhere.

L15 – Wavertree

L15 is a good area for investment properties. However, it is a little more expensive when compared to the other areas in Liverpool. As a result, the yields are lower, making the area less of a find for investors looking for steady cashflow.

The average property price in L15 is around £202,000, which is closer to the UK average then most of these locations. This puts the rental yield for this area in the 5% range. Not bad, but not great compared to other areas.

Saying this, the capital appreciation percentages look good. In the past 5 years, the area has experienced over 24% in growth. Not bad.

L6 – Elm Park

L6 makes it on to this list as well as a great area to purchase a buy-to-let. The area has a good rental yield, cheap properties, and good annual growth.

For the rental yields, you can expect to receive an average of 6%, with obvious variations depending on the type of property you go for. Average prices are still affordable as well, sitting at £151,000 at the time of writing.

Capital growth has been impressive as well in this area. Over the last 5 years, the area has experienced 29% in growth. Making this area perfect for long-term investors, as well as beginners.

L13 - Clubmoor, Tuebrook, Old Swan, Stoneycroft, and Stanley

L13 is a great choice for investors after buy-to-lets in Liverpool. The area includes many different suburbs, including Clubmoor, Tuebrook, Old Swan, Stoneycroft, and Stanley. This gives landlords plenty of choice when it comes to choosing an area to purchase a property.

L13 is currently returning a 7% yield, which is much higher than the national average. The average house price is manageable as well, sitting at £151,000 – similar to that of L6. Therefore, if you’re a beginner investor with a less money to invest, this area is ideal.

Growth here isn’t as good as it is with other areas, however. Over the last 3 years, the area has grown by 16%.

L3 - City Centre, Baltic Triangle, Knowledge Quarter, and Vauxhall

Moving back towards the centre, we have L3. This is home to areas of the City Centre, Baltic Triangle, Knowledge Quarter, and Vauxhall. This postcode area is a great investment for individuals for buy-to-lets in Liverpool. Particularly if you’re after new builds.

Lots of work has been put into this area of Liverpool, including a ton of new apartments. Investors who are looking for a rental strategy should be keeping a keen eye on this postcode.

L3 has a rental yield of around 7%, despite including the city centre. Asking prices are a little higher than the other options though, sitting at £177,000. So, this might not be open to beginner investors who have little start-up cash.

L8 - Toxteth, Princes Park, and Dingle

Finally, we have L8, the last good area to invest in buy-to-let properties in Liverpool. This area includes Toxteth, Princes Park, and Dingle. This area code holds high yields but is priced higher than the above areas and doesn’t appear to be growing.

The rental yields in this area are solid, hitting an average of 7%. However, average house price sits at £167,000 – slightly higher than other areas in Liverpool.

It’s also worth noting the area hasn’t been growing. Over the last 3 years, L8 has dipped, reducing in value by -14.9%. Not a great thing to see.

Still, the rental yields are still good enough if you’re looking for steady rental cash flow.

Summing it up

Liverpool is a great area to invest if you’re either a seasoned veteran or a complete beginner. The rental yields are solid, and the prices are cheap.

With the list of the best areas for buy-to-lets in Liverpool, you now have a cheat sheet for what area to look at first.

If you need any further help identifying properties, see our knowledge centre for more.

Related Reading

Best areas for buy-to-let in the UK Best areas for buy-to-let in London

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