As property investors look beyond London for better returns, Manchester and Liverpool have emerged as key contenders in the North. With rising demand from businesses, students, and young professionals, both cities have proven to be popular investment hotspots. But which should you choose for your next property investment? Mark Burns, Director of Pure Investor, offers insights into the strengths of each location.
Property Prices
Despite changes in the UK housing market, both Manchester and Liverpool remain affordable compared to southern cities. Average property prices in Liverpool are around £180,700, less than half the price of homes in the South of England. Meanwhile, Manchester’s average property price is higher, at approximately £298,281, but still presents strong value. These affordable prices provide investors with a range of opportunities to enter the market.
Manchester’s property prices are expected to rise by 19.35% between 2023 and 2027, while Liverpool is also set to experience strong growth. Investors can anticipate appreciation in both cities, making them viable options for capital growth.
Rental Yields
High rental demand in both cities further strengthens their appeal to investors. Manchester offers a gross rental yield of 4-5% in most areas, with some neighbourhoods reaching as high as 9%. In Liverpool, the average yield is around 6%, climbing to 7.8% in areas such as Anfield. These figures show that both cities present strong and consistent rental returns, largely due to their popularity with young professionals and students.
Student Accommodation
Manchester is home to one of Europe’s largest student populations, with institutions like the University of Manchester and Manchester Metropolitan University drawing students from around the world. Liverpool also has a thriving student scene, hosting universities such as the University of Liverpool and Liverpool John Moores University.
With more students than available accommodation, both cities offer active rental markets. Investors have options to provide traditional student housing or invest in purpose-built, fully managed accommodation for long-term stability.
Cultural and Sporting Heritage
Both cities boast rich cultural and sporting histories, which attract residents and tourists alike. Liverpool, the 2008 European Capital of Culture, has strong roots in the arts and music, famously as the birthplace of The Beatles. Manchester, equally renowned for its music scene and nightlife, is home to two of the Premier League’s most successful football clubs.
Regeneration and Economic Growth
In recent decades, both Manchester and Liverpool have seen substantial regeneration efforts. Old industrial sites have been transformed into luxury apartments, and large businesses have set up operations to tap into the region’s skilled workforce. Notably, Media City in Salford has become a major hub, hosting both the BBC and ITV.
Transport Links
Strong transport links enhance both cities’ appeal. Manchester’s M60 and M62 motorways connect it to the rest of the North, while Piccadilly station offers direct rail links to London. Liverpool also benefits from the M62 and has access to future HS2 connections, ensuring the region remains well connected.
With steady growth, cultural appeal, and healthy returns, both Manchester and Liverpool offer strong investment potential for the future. Choosing between them will depend on your investment goals, but both cities promise long-term value for investors.
