When it comes to property investment hotspots in 2025, Liverpool stands out with a rare and compelling mix: affordability, growing demand, bold regeneration, and lucrative yields. If you’re eyeing a renovation project to flip, rent, or expand your portfolio, here’s why Liverpool deserves your attention, and how a stylish interior revamp can elevate your returns.
Beyond the numbers, Liverpool also offers something less tangible but equally powerful: lifestyle appeal. The city’s thriving cultural scene, world-class universities, and rich architectural heritage make it a place where people genuinely want to live.
For investors, that mean more than just steady rental demand, it creates opportunities to renovate properties in a way that blends modern comfort with Liverpool’s historic character. A well-designed home that feels both stylish and authentic can command premium rents, attract long-term tenants, and ultimately boost resale value in an increasingly competitive market
1. Striking Property Value Growth & Affordability
Liverpool is among the most accessible UK cities for buyers. As of May 2025, the average property price stood at £180,000, up 11.6% year-on-year, well below the UK average, offering compelling entry points for investors.
With a lower entry price, investors have more flexibility to allocate budget toward upgrades. Adding statement kitchens, modern flooring, and feature lighting transforms affordable properties into stylish, desirable homes, maximising both rental appeal and resale value.
Pat Harper, Founder of Total Property Group, adds:
“Liverpool’s affordability is a game-changer for investors. Not only can you secure property at a lower price point, but you also have the budget to make meaningful design-led improvements. Those thoughtful upgrades, like modern interiors and energy-efficient features, are what really elevate both rental income and long-term capital growth.”
2. Outstanding Rental Yields in a High-Demand Market
With average monthly rents reaching £854 in June 2025, Liverpool delivers gross yields in the 6–8% range. This is buoyed by steady demand from students, professionals, and families alike.
To capture this demand, investors can tailor interiors to their target audience. For students, think durable finishes and modular furniture. For professionals, sleek bathrooms and neutral palettes create an urban-chic feel. For families, warm tones, child-friendly flooring, and open-plan dining areas make a home more practical and appealing.
3. Mega-Regeneration Projects Fuel Future Value
Liverpool is in the midst of one of the most ambitious urban transformations in the UK, with regeneration projects reshaping entire districts and creating long-term opportunities for property investors.
At the forefront is Liverpool Waters, a £5.5 billion redevelopment of the city’s northern docks, which is set to deliver thousands of new homes, state-of-the-art office spaces, and cultural attractions along the waterfront. Once complete, this project will extend the city centre by over 2km, adding a vibrant new district that blends residential, commercial, and leisure spaces. For investors, properties in and around this zone are already seeing heightened demand and strong appreciation forecasts.
Adding to the momentum, Everton Football Club’s new stadium at Bramley-Moore Dock is transforming a once-derelict area into a destination hotspot. Beyond football, the stadium is expected to host concerts and events, drawing global attention and injecting millions into the local economy. The “stadium effect” has historically boosted property values in nearby districts, and Liverpool looks set to replicate that success.
For property investors, regeneration projects don’t just mean prettier skylines, they drive job creation, infrastructure improvements, and rising rental demand. Whether you’re targeting short-term lets for professionals, long-term family homes, or student-focused rentals, these developments provide a solid foundation for growth and resilience in 2025 and beyond.
4. Dynamic Innovation Hub: Knowledge Quarter & Creative Fabric District
The Knowledge Quarter, backed by over £2 bn in investment, is fast becoming a national centre for science, tech, and health innovation. At the same time, the Fabric District is flourishing as a creative and residential hub.
Investors targeting these knowledge-driven tenants should embrace minimalist yet practical design, think smart home tech, built-in storage, and clean-lined furnishings. Incorporating smart workspaces and adaptable rooms makes properties more appealing to postgraduates and professionals who work from home.
5. Affordable Renovation Potential for Strong Returns
Liverpool’s affordable property prices make it one of the best UK cities for renovation-led investment strategies. While markets like London or Manchester may already be saturated, Liverpool still offers a wealth of Victorian terraces, waterfront apartments, and under-loved family homes that can be purchased at competitive entry points.
The true opportunity lies in value-adding refurbishments. Investors who combine modern functionality with preserved character features, such as original fireplaces, decorative cornices, or exposed brick walls, can unlock premium rental rates. Renovating with a keen eye for design not only raises property value but also appeals to the city’s growing pool of professionals, students, and young families seeking stylish yet practical homes. More can be learnt with useful guides on urban regeneration in the UK.
Another unique advantage is the sheer variety of renovation projects available in Liverpool. From quick kitchen and bathroom upgrades to full-scale transformations of heritage homes, investors can tailor projects to budget and target audience. For example:
Student & Professional Lets: Durable, low-maintenance finishes with open-plan layouts and clever storage.
Family Rentals: Warm interiors with child-friendly flooring, multipurpose dining spaces, and energy-efficient upgrades.
Boutique Apartments: Industrial chic themes in former warehouses or docks with statement lighting and minimalist design.
What makes Liverpool especially attractive is the lower renovation-to-value ratio: the cost of upgrading a property is often far outweighed by the increase in rental yields and resale price. A £15,000 interior refresh can elevate rental income by hundreds per month, and staged interiors often secure tenants faster, reducing costly void periods.
In 2025, with sustainability and smart living at the forefront, forward-thinking investors are also introducing eco-friendly upgrades, like energy-efficient lighting, recycled materials, and green spaces that resonate with today’s renters. This isn’t just about aesthetics; it’s about creating homes that reflect modern lifestyle needs, ensuring long-term demand and resilience in the market.
Shaun McSorley, Senior Advisor at The Property Association notes:
“Tenants are increasingly prioritising sustainability, and properties that showcase eco-conscious features consistently stand out in the market. In cities like Liverpool, where affordability meets innovation, integrating green design isn’t just a trend, it’s becoming a fundamental expectation that drives both tenant retention and property value.”
Smart Interior Design Tips for Renovation Projects
Bragging Mommy readers love spaces that showcase personality, warmth, and style. Elevate your investment property with these renovation ideas:
1. Embrace Character with a Modern Twist
If your building boasts architectural charm, turrets, ornate trims, or exposed brick, retain these features and pair them with modern lighting or clean-lined fixtures to create a balanced, fashion-forward aesthetic.
2. Neutral Base + Bold Accent Pieces
Use a neutral palette—think whites, soft greys, or warm beiges, as a backdrop. Add instantly Instagrammable pops of colour with statement throws, cushions, or a piece of art for a modern, welcoming vibe.
3. Create Multi-Use, Inviting Spaces
Design open-plan living areas that flow seamlessly into functional zones like a study nook or dining corner. Well-planned interiors make properties more desirable to renters, professionals working from home, and growing families.
4. User-Friendly Textures & Materials
Choose finishes that are both stylish and practical. Practical choices like vinyl floors, washable paints, and timeless hardware ensure both longevity and character.
5. Stylish Staging That Sells
Even for rentals, minimal staging with simple décor, such as a flat-lay of cushions, a small coffee tray, or a potted plant, can help renters and potential buyers visualize living in the space.
