Introduction
As we close out 2024, the UK property market continues to demonstrate resilience despite economic uncertainties. Cities like Liverpool, Leicester, and the Fylde Coast are emerging as hotspots for buy-to-let investors, offering excellent rental yields and opportunities for capital growth.
This blog reviews property price trends in Q4 2024 for these key regions and provides insights into what investors can expect in 2025. Whether you’re a seasoned property investor or exploring off-plan opportunities, understanding these market trends can help you make informed decisions.
Q4 2024 Property Market Snapshot
Liverpool
Liverpool has experienced steady property price growth in Q4 2024, driven by strong rental demand and ongoing regeneration projects.
- Average Property Prices: up 2.8% from Q3 2024.
- Rental Yields: Averaging 7.5%, with areas delivering even higher returns.
- Key Drivers: Liverpool’s Knowledge Quarter and waterfront developments continue to attract young professionals, students, and families. This demand has bolstered rental yields and supported property price growth.
Leicester
Leicester’s affordability and growing economy have solidified its position as a buy-to-let hotspot.
- Average Property Prices: up 2.5% from Q3 2024.
- Rental Yields: Averaging 6.5%, particularly strong around De Montfort University and city centre developments.
- Key Drivers: Leicester benefits from a thriving student population and ongoing urban regeneration, which enhances tenant demand and capital growth potential.
Fylde Coast
The Fylde Coast, encompassing areas like Blackpool, Lytham, and St. Annes, has continued to gain attention from investors seeking affordable properties with strong rental potential.
- Average Property Prices: up 3.1% from Q3 2024.
- Rental Yields: Averaging 6.8%, with higher yields in popular seaside and commuter-friendly areas.
- Key Drivers: Affordable property prices, coupled with increasing demand from commuters and retirees, make the Fylde Coast a compelling choice for investors.
Predictions for 2025
Looking ahead, the property market in Liverpool, Leicester, and the Fylde Coast is poised for further growth. Here’s what investors can expect:
Liverpool
- Predicted Price Growth: 4% in 2025.
- Rental Demand: Expected to remain high, fueled by ongoing regeneration projects, cultural investments, and expanding transport links, including the Northern Powerhouse Rail project.
- Key Opportunity: Off-plan developments in the Knowledge Quarter and waterfront areas offer excellent capital appreciation potential.
Leicester
- Predicted Price Growth: 3.5% in 2025.
- Rental Demand: Leicester’s expanding business sector and student population will continue to drive demand.
- Key Opportunity: Off-plan projects in the city centre and suburban areas near infrastructure improvements provide attractive options for buy-to-let investors.
Fylde Coast
- Predicted Price Growth: 3% in 2025.
- Rental Demand: Increasing as more tenants seek affordable alternatives to larger cities.
- Key Opportunity: Coastal properties and commuter-friendly developments will continue to attract renters, offering steady yields and long-term capital growth.
Why Invest Now?
1. Resilience Amid Economic Fluctuations
Despite higher interest rates in 2024, the property markets in Liverpool, Leicester, and the Fylde Coast have remained stable. The anticipated drop in the Bank of England base rate in 2025 is likely to further stimulate demand and support price growth.
2. Strong Rental Yields
These regions consistently offer rental yields well above the UK average, making them ideal for investors focused on generating steady rental income.
3. Off-Plan Advantages
Off-plan developments in these regions allow investors to secure properties at today’s prices while benefiting from capital growth during construction. Many developers also offer attractive payment plans and incentives.
Tips for Investors in 2025
- Focus on Regeneration Areas: Target properties in areas undergoing significant redevelopment to maximize capital appreciation.
- Partner with Local Experts: Work with specialists like Portico Invest to identify high-potential projects and secure exclusive deals.
- Leverage Financing Options: Take advantage of favourable financing terms as interest rates stabilize in 2025.
Conclusion
Liverpool, Leicester, and the Fylde Coast remain some of the most promising regions for buy-to-let property investment. With strong rental yields, capital growth potential, and a favourable economic outlook for 2025, these areas offer excellent opportunities for investors looking to expand their portfolios.
At Portico Invest, we specialize in connecting investors with the best off-plan opportunities in these thriving markets. Contact us today to learn more about how you can secure high-yielding investments in the UK’s most dynamic property markets.