Liverpool, the historic English port city once known for its shipbuilding and music exports, is fast becoming one of Europe’s hottest property investment destinations. International buyers, from Singapore to the Middle East, are flocking to the city, drawn by strong rental yields, low entry costs, and a wave of ambitious regeneration projects.
In contrast, London, long considered the crown jewel of UK property, is seeing foreign investor interest wane. High prices, tighter regulations, and modest rental returns have led many to look north for better value and stronger growth prospects.
Liverpool offers what many investors are searching for: affordability paired with high performance. Rental yields in the city regularly exceed 7–8%, far outpacing London’s sub-4% averages. With new-build apartments available from as little as $210,000, investors are finding they can scale their portfolios more quickly in the North West than in the capital.
Fuelling this shift is a decade-long, multi-billion-dollar regeneration program transforming Liverpool’s waterfront, business districts, and residential neighbourhoods. Infrastructure upgrades, cultural investments, and a booming tech and life sciences sector are drawing young professionals, and creating sustained demand for quality rental housing.
Property sourcing expert Pat Harper, CEO of Total Property Group calls Liverpool a “strategic opportunity” for global property investors.
“This level of investment in housing and infrastructure gives businesses like ours the confidence to scale up, innovate, and deliver at pace,” Pat said. “For international buyers, Liverpool offers high returns with far fewer barriers than London.”
Beyond affordability and strong rental yields, Liverpool offers a lifestyle and economic ecosystem that appeal to both investors and tenants. The city boasts a thriving student population, with three major universities feeding consistent demand for rental housing.
Its growing reputation as a hub for tech, healthcare, and creative industries has attracted young professionals, driving up occupancy rates and rental prices. Excellent transport links, including planned high-speed rail connections, and proximity to Manchester further strengthen its appeal. Combined with a rich cultural heritage, vibrant nightlife, and ongoing waterfront redevelopment, Liverpool delivers a unique blend of investment security and lifestyle desirability.
Other industry experts point to Liverpool’s tenant demographics, students, young professionals, and growing families, as a major draw for landlords seeking long-term, reliable income.
London’s property market, while still a global benchmark, has become less attractive for overseas investors. Sky-high entry prices, increased stamp duties on foreign purchases, and stricter tax policies have squeezed margins. Combined with softening demand in prime central districts, many international buyers now see the capital as a less compelling option.
As the UK government pledges to deliver 1.5 million new homes and bolster regional economies, cities like Liverpool stand to benefit most. For international investors looking for stable returns, high yields, and growth potential, the city has quickly moved from an underdog to a front-runner.
“Liverpool is no longer a secondary market,” Dr Graham Wilson of the RCCIL said. “It’s a primary choice for smart global capital seeking value and vision.”
For decades, London dominated the narrative of UK property investment, but the tides are shifting. Overseas buyers are increasingly drawn to Liverpool’s blend of high yields, affordable entry points, and long-term growth potential, underpinned by transformative regeneration and a vibrant local economy.
While London remains a global city with enduring appeal, its soaring costs and tightening regulations have led many investors to rethink their strategies. Liverpool, once overlooked, now stands as a compelling alternative, a city with momentum, opportunity, and a future firmly in the spotlight of global capital.
