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London Vs Liverpool: The ultimate real estate debate

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Whether you’re a first-time investor looking for your first property or a veteran investor looking to expand your portfolio - one of the most important things you need to consider is location. In the UK, two of the most talked-about locations for investment at the moment are London and Liverpool for more reasons than one.

Take a look at this guide to help you establish the best location to invest in order to succeed in the property sector.

Affordability

London was once known as the most prominent place for investment, but due to inflation and the surge in house prices, London’s property market has started to decline. Of course, there is still a market for investors, as over eight million people are living in London, and the majority can only afford to rent, so if you're going to invest in London buy-to-let would be your best option.

Compared to London, Liverpool is actually one of the most affordable places to live in the UK, which is why many homeowners and investors have shifted towards the north. The clear divide between the south and north of England is inherent in real estate, with the north leading the way in terms of affordability. This stark contrast is evident in the areas known as Kensington, in both Liverpool and London. In the latter, you will find a parking space for £130,000, which is equivalent to the cost of the four-bedroom house in Liverpool’s Kensington.

Prime locations

For a long time, London has been known as one of the most attractive cities in the UK for visitors, residents and investors. This is because London has a lot to offer from high-paying job opportunities to unlimited activities - there is no wonder it is such a fast-paced city. This was once an investment hotspot; however, over time, investors have shifted away from the capital to avoid the cost of expensive properties, excessive stamp duty and lack of demand. 

If you’re serious about investing in Liverpool, you should speak to experts like RW Invest, who can help you seek out the best locations in this northern city. They also have several developments available in property hotspots such as the Baltic Triangle, Fabric District, and the Knowledge Quarter. These locations are in high demand due to their proximity to universities and creative business, which are popular with students and young professionals.

Rental yields

When choosing a location, it is important to research the best rental yields to determine your estimated returns, and whether the investment is worthwhile. If you're undecided between London and Liverpool, the UK's rental yield statistics will definitely help you with your decision. In London, the average rental yield is 3.7%, which is extremely low in comparison to the rest of the country. However, if you have your heart set on London, you should look at areas like East Ham or Plaistow, which have slightly higher rental yields which may offer you better returns.

Liverpool is actually one of the top-ranked cities for rental yields, with L6 and L7 coming out on top with yields of more than 11%. This includes regeneration areas such as Kensington, Everton, Anfield and the city centre, where plenty of developments are being built and awaiting investment. These are extremely popular locations for investors who are looking to capitalise on Liverpool’s property market and receive the best possible returns.

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