Liverpool – What to look for in houses for sale?

by | Nov 15, 2022

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Sometimes, working out the prices of the houses for sale can be tricky business. This is why we created this article all about the price of houses for sale in Liverpool, Merseyside.

From the average asking price of houses for sale in Liverpool to the growth of the population in the area, all will be talked about regarding the city of Liverpool. So you will get better clued up on the area, and make finding a house for sale in the UK easier.

In Liverpool, what are the rental yields?

What is the growth in the housing market of Liverpool?

Growth in the area can be a good signal of a booming house market. However, too much growth could also have negative consequences on the capital appreciation of a house as time goes on.

Take a look at the table below for Liverpool that shows the growth in recent years.

1 year 3 years 5 years
Liverpool growth rate 7% 22% 35%

High growth rates can signal an appreciating housing market, nonetheless, if there are too many houses being built, this could reduce demand for housing as the supply of houses for sale starts to catch up with the demand. Leading to stagnation or a decline in house pricing so understanding the growth in Liverpool is important.

The figure of rental yield is commonly looked at by investors who wish to increase their income by investing in areas where rental yields of the houses for sale are higher. Usually, the higher the rental yield, the more attractive a house for sale is for an investor.

Nonetheless, there are also instances where an investor will go with a house with lower yields in order to benefit from the appreciation of a house too which is why it’s vital to look in to all the details of Liverpool.

The data below shows the rental yield, rent turnover and the percentage of the money made on the sale of a house. The data is broken down into the county city is in (Merseyside) as well as the broader region; North West.

Average Yield Average Asking rent Turnover (rental) Turnover (sale)
Liverpool 5.2% £760 110% 17.2%
Merseyside 4.76% £735 120.31% 21.51%
North West 4.36% £808 120.36% 20.19%

Also, you can compare other data to the table above such as the number of houses sold per month in Liverpool which is 257 and get a better understanding of the housing market.

This is great if you want to gauge if investors are actively looking for houses for sale in the area over other areas in the UK which may be an induction of how profitable Liverpool is to invest in. Both in terms of rental yield and capital appreciation.

Are there any important statistics about the population of Liverpool?

How much are those living in Liverpool earning?

You may be wondering what the amount people earn has to do with house price. Well, house prices generally go up as people earn more not just because they can afford more valuable properties but also because good areas generally attract more desirable infrastructure. For reference, the average household income is £33,910.

This may be better schools, doctors and areas with lower crime rates. This results in a snowball effect which polarises different areas further, increasing the demand for housing in richer areas by a greater amount. And increasing the proportion of people with high social grade scores. For Liverpool this figure is 17%.

What’s the crime rate in Liverpool?

The crime rate of Liverpool must be looked at sceptically. The reason for this is that the crime rate can vary within a city greatly and the type of crime committed can also vary too.

For example, the area has a crime rate of 314, but another city may have a higher crime rate but not be deemed as dangerous due to lower level crime or minor offences being committed.

Either way, high crime rates are never a good sign so consider the rate against the UK average of 79.52 for every 1000 people as a benchmark.

Lower rates could mean things like home insurance is cheaper and you have to install fewer security measures throughout your house. Saving you money in the long run. So the statistic of crime rate (314) is both useful and is recommended to be compared to the average.

Liverpool within Merseyside is notable for the type of people that live there. The statistics below show how this is the case.

As you read on, Liverpool will be looked at by comparing it to the local region, as well as comparing it to the wider region too (North West). From what the population of the city is to how it’s growing as well as factors like the overall crime rate.

This data is impacted by the history of the area and what kind of industry there is around. All of which also impact house prices which is crucial for you to understand as you look at houses for sale in Liverpool.

In the city of Liverpool, how much green space remains for residents?

In the city of Liverpool, there are 14.6 acres of green space per 1000 residents.

The charity, ‘Fields in Trusts’ recommends a minimum of 6 acres of green space per 1000 people so it is easy to see where Liverpool is when seeing if green space availability is sufficient. This green space could be parks, nature reserves, public gardens or playing fields.

Is the city of Liverpool deprived?

The number of people who are deprived can have an impact on the perception of your house in the general marketplace. Additionally, if you are looking for a house to live in for the long term, you can start to picture what your neighbours and the people in your area live like financially.

If the proportion of deprivation of Liverpool is 35% and in general for the UK this figure is somewhere around 33%, you can see if this figure is something you are happy with as you search for a house to buy.

What is the education level like in Liverpool?

In the city of Liverpool, 24% people have a degree from a university. The higher this proportion is, in general, the more likely it is that the population is able to buy a house.

Interestingly, as people who have degrees go up, the average income of the area goes up too. You can see if there is a correlation, the average household income in the UK is price34,000 and the average income in Liverpool is £33,910.

This should correspond with the average percentage of people in the UK who have degrees at 22.6%.

What is the social grade score of Liverpool?

In the city of Liverpool, the social grade score of the area is 17%. But what does this exactly mean? The figure refers to the proportion of people in the two highest categories of skilled jobs.

The categories are grouped from A to E shown in the table below. Overall, a high social grade score means there are more affluent people working in managerial and professional roles in the area.

This table shows the average breakdown of the UK in terms of where most people in the UK are working so you can compare it to the social grade score of Liverpool.

Social Score Category The proportion of the UK population (%)
A Professional, managerial or administrative 4
B Intermediate managerial or professional jobs 23
C1 Supervisory, junior managerial or professional jobs 29
C2 Skilled manual workers 21
D Semi and unskilled manual workers 15
E State pensioners, casual & lowest grade workers 8

Have the people of Liverpool grown in numbers?

Whenever there is a population change this can impact the demand for housing and hence the appreciation of properties too. The total population of Liverpool if 404,341 and in the below heading how this population has changed will be broken down.

Like most data to do with houses, all data has to be considered holistically with multiple variables to determine if the population growth actually impacts the statistics that matter to you as a landlord in Liverpool such as rental yield or house appreciation.

How has the population size of Liverpool adjusted in the last 5 years?

In the previous five years there has been a change in the number of people of Liverpool by 4%. Analysing this figure is a great way to tell if there is new demand for housing or not as a decreasing figure reduces the number of people who want to buy houses. Read more here

To compare this figure over a greater period of time, you could look at the figure for the 1 year population too and compare them. This way you can see if the population has changed recently or if this 4% change has historically occurred before. Click here to know more on the UK population trends.

Over the last 10 years, how has the population size adjusted in Liverpool?

In the last decade, the population of Liverpool has been adjusted by 8%. This growth may be as a result of factors like new industries employing people or emigration and immigration balancing out to create this population change.

A precedent that shows population change in this way over decades is the region of Greater London. The capital city has grown by 27% in the past 20 years. Population growth has caused house prices to go up to price523,666 on average.

What is the asking price on average of houses for sale in Liverpool?

Before a house gets sold, the figure it sells for always starts off as an asking price. This average asking price for the houses for sale in Liverpool determines the eventual sale price of the house so it isn’t the most important figure but is still important to take note of. This figure is currently £180,133.

Below, there is a table showing the asking price of the different sizes of houses based on the number of bedrooms of the houses in Liverpool.

Average asking prices for houses for sale in Liverpool

Average asking price (1 bed) £119,026
Average asking price (2 bed) £153,907
Average asking price (3 bed) £205,507
Average asking price (4 bed) £343,999
Average asking price (5 bed) no relevant data for this city

Based on this table, hopefully, you will be able to tell what type of house for sale is the most suitable for your budget. You can also consider the average asking price per square foot (£523) for houses for sale with this table to get a good idea as to whether Liverpool is the right area to buy a house in for you.

In general, what do houses for sale sell for in Liverpool?

In Liverpool, the average sale price of a house for sale is in fact £143,328. This is dependent on the 10 year population growth of Liverpool being 8%. Growing populations are more likely to inflate the prices of houses for sale in the city of Liverpool.

Housing category Total final sale price
Aerage sold price (detached) £244,401
Aerage sold price (semi-detached) £173,034
Aerage sold price (terraced) £132,915
Aerage sold price (flat) £97,329

The list below is able to inform you of what these prices are. Giving you an accurate estimate of whether a landlord is likely to accept your offer based on the prices of the houses for sale in Liverpool.

Housing category Sale price per square foot
Aerage sold price/sqft £1,729
Aerage sold price/sqft (new build) £2,082
Aerage sold price/sqft (old stock) £1,571

Evidently, certain types of houses for sale will have different types of demand and this will be reflected on the final price.

On average, the cost of a house for sale per square foot works out to be £1,778. This means if you are just looking out the houses sold in Liverpool in general and didn’t take into consideration the type of build. For example, a new build.