Are Investment Properties Worth It in 2025?
- Pat Harper
- Apr 30
- 7 min read
As 2025 unfolds, many investors are asking: Is property a good investment this year? At Total Property Group, we believe the answer remains a resounding yes, particularly when it comes to property investment in Liverpool. With strong rental demand, impressive yields, and ongoing regeneration, Liverpool stands out as one of the best cities in the UK for property investors today.
Table of Contents
Is Investing in Property a Good Option?
In an economic environment of inflation, market volatility, and geopolitical uncertainty, property investment stands out as a solid, lower-risk asset class. As of 2025, investing in property, particularly in growing regional hubs like Liverpool, remains one of the most effective ways to build and preserve wealth.
Advantages of Property Investment in 2025:
1. Inflation-Resistant Asset:
Historically, property values and rental income have outpaced inflation. As the cost of living rises, so too do rental prices, meaning property investors can maintain and often increase their real returns.
2. Tangible and Secure:
Unlike stocks or bonds, property is a physical asset. Even during market downturns, it retains intrinsic value, providing greater security and peace of mind compared to purely financial assets.
3. Recurring Income:
Buy-to-let properties offer investors a predictable income stream through monthly rental payments. In Liverpool, strong tenant demand means void periods are minimal, making it easier to plan finances with confidence.
4. Capital Growth Potential:
Liverpool’s house prices are expected to rise significantly over the next five years, driven by government-backed regeneration schemes and private sector investment. According to recent forecasts from Savills, property values in the North West could increase by up to 17% between 2025 and 2029, making it an ideal time to invest.
5. Portfolio Diversification:
Adding property to an investment portfolio can reduce overall risk, as property values are typically less volatile compared to equities or commodities. Learn more about other ways of investing £100K or some of the best ways to invest £50K in 2025 with our guide.
Potential Risks to Consider:
1. Changes in government policy (e.g., rent controls, stamp duty changes).
2. Rising interest rates can impact mortgage repayments.
3. Maintenance and management costs may cut into profits.
Verdict:
For property investors willing to take a long-term view, conduct proper due diligence, and focus on high-growth areas like Liverpool, property remains one of the best investments you can make in 2025. When combined with expert advice and professional property management, it offers an outstanding combination of income, growth, and financial security.
Why Liverpool Property Investment is Thriving
Liverpool continues to outperform other major cities in terms of affordability and returns. Key reasons to consider Liverpool for your next investment include:
High Rental Yields: Certain Liverpool postcodes consistently offer net yields of 6–8%, outperforming national averages.
Affordable Prices: Property prices in Liverpool are considerably lower than in cities like Manchester and London, offering a more accessible entry point for investors.
Strong Growth Potential: With major regeneration projects like Liverpool Waters and the Knowledge Quarter underway, capital growth prospects are excellent.
Tenant Demand: Liverpool’s large student population, young professionals, and expanding economy keep rental demand high and vacancies low.
Choosing the correct location is essential, and Liverpool continues to tick all the boxes for savvy property investors.
Is Buy-to-Let Worth It in 2025?
Yes, the buy-to-let market in 2025 remains an attractive avenue for investors.
Particularly when targeting thriving cities like Liverpool. While the sector has evolved due to tighter regulations and changing taxation rules, strategic buy-to-let investment continues to deliver excellent returns.
Key Factors Driving Buy-to-Let Success in 2025:
Rising Rental Demand - In Liverpool, the demand for rental properties remains exceptionally strong. A growing population of students, graduates, and young professionals are choosing to rent, rather than buy, ensuring a steady tenant base. According to the latest market reports, Liverpool's rental market grew by over 9% year-on-year, outpacing the UK average.
Affordability vs Yield Balance - Liverpool remains one of the few UK cities where rental yields can realistically hit 6%–8%, while the property entry costs are still manageable. This balance creates a favourable environment for both cash buyers and those using buy-to-let mortgages.
Regeneration Projects Boosting Value - Major developments like the £5 billion Liverpool Waters project, the Knowledge Quarter expansion, and the Anfield regeneration scheme are rapidly transforming the city. These large-scale initiatives not only create jobs but also drive up rental values and property prices in surrounding areas.
Tax Efficiency Options - Savvy investors in 2025 are increasingly setting up Special Purpose Vehicles (SPV's), which are limited companies for property investment to optimise tax liabilities, allowing them to deduct mortgage interest and other expenses more effectively. Learn more about buying property through a limited company today with our guidebook.
Challenges to Be Aware Of:
Stricter lending criteria.
Increased energy efficiency requirements (EPC minimum C rating now mandated for new rentals).
Higher upfront investment (e.g., bigger deposits for buy-to-let mortgages).
Our Verdict:
When approached strategically, targeting the right locations, tenant types, and finance structures, buy-to-let is still very much worth it in 2025. Liverpool, with its booming rental market and future growth potential, is one of the best places to start or expand your portfolio.
How to Buy a Rental Property to Maximise Your Returns
Choosing the right rental property can significantly impact your investment success. Here’s how you can maximise your returns when investing in Liverpool:
Identify High-Yield Areas
Focus on Liverpool postcodes with proven rental demand and strong yields. Areas such as:
L1 and L3 (City Centre): Popular with students and young professionals.
L7 and L15 (Kensington, Wavertree): Ideal for student lets and young families.
L5 and L6 (Vauxhall, Everton): Affordable entry points with strong growth potential.
Choose the Right Property Type
Different tenant types favour different property styles:
Apartments: Best for young professionals and city workers.
HMO's (Houses in Multiple Occupation): Can generate higher rental income if managed correctly.
Family Homes: Stable, long-term tenants who typically stay longer.
Tailoring your property to the local tenant demographic ensures higher occupancy and consistent income.
Prioritise Quality and Amenities
Properties close to amenities such as transport links, universities, and business districts command higher rents. Newly built or recently refurbished properties also tend to attract better-quality tenants and reduce maintenance costs.
Factor in All Costs
Beyond the purchase price, investors should budget for:
Mortgage fees
Stamp Duty Land Tax (SDLT) - (Read reports such as the BBC news detailing legislation changes)
Legal fees
Management and maintenance costs
Understanding your true costs allows for accurate yield and ROI calculations.
Work With Trusted Partners
Partnering with experienced professionals like Total Property Group ensures you have access to the best investment properties, market insights, and ongoing management support to maximise returns.
Final Thoughts: Are Investment Properties Really Worth It in 2025?
With the UK economy navigating high inflation, fluctuating interest rates, and a competitive rental market, many investors are re-evaluating their strategies. The evidence in 2025 remains clear: investment properties are still very much worth it, particularly when approached with careful planning and a long-term outlook.
Liverpool continues to be one of the most compelling cities for property investors. Affordable property prices, robust tenant demand, high rental yields, and ongoing regeneration make it an ideal environment for both first-time and experienced investors looking to build sustainable wealth.
Buy-to-let remains profitable, provided you adapt to the evolving market conditions, ensuring properties meet energy standards, carefully selecting growth areas, and structuring purchases efficiently.
Meanwhile, property as a broader asset class offers unmatched advantages: stable monthly income, inflation resistance, and real-world, tangible security.
At Total Property Group, we specialise in helping investors capitalise on the best opportunities in property investment in Liverpool. Whether you are asking Is buy-to-let worth it? or is property a good investment?, our team is ready to guide you with trusted advice, exclusive investment opportunities, and full end-to-end support.
Start Your Property Investment Journey with Total Property Group
Are you ready to unlock the full potential of property investment in Liverpool, one of the UK's most exciting and high-performing markets?
Whether you are a first-time investor looking to take your first confident steps or an experienced landlord seeking to expand and diversify your property portfolio, Total Property Group is your trusted partner in 2025 and beyond.
At Total Property Group, we understand that every investor’s journey is different. That’s why we offer a fully tailored service designed to support you at every stage:
Expert Property Sourcing
Our local Liverpool property specialists constantly monitor the market to identify high-yield opportunities, upcoming hotspots, and off-market deals. We focus on sourcing properties that deliver the right balance of rental income and capital growth potential, ensuring your investment meets your personal financial goals.
Property investment is not just about buying the right property, it’s about structuring your investment smartly. There are enhanced real estate professional courses available, one such example is the BSc (Hons) in Real Estate at Liverpool John Moores University.
Prefer a hands-free approach?
We offer access to fully managed properties, where everything from tenant sourcing to maintenance and compliance is professionally handled, freeing you up to enjoy passive income without day-to-day stress. The Liverpool property market moves fast, and so do we. Learn more about where to invest money to get monthly income in our dedicated passive income resource materials.
As a Total Property Group client, you will receive regular market updates, investment insights, and property performance reviews, ensuring you are always positioned ahead of emerging trends and opportunities.
Your next step toward a profitable property portfolio begins today. Contact Total Property Group to discover the smartest ways to invest in Liverpool's thriving property market.
About the Author
Pat Harper
Pat Harper is a respected buy-to-let property investment writer and market analyst based in Liverpool. As founder of Total Property Group and a regular industry commentator, he brings real-world expertise and data-driven insights to property investors.
Disclaimer
This article is for informational purposes only and does not constitute professional advice. The content is based on our opinions and experiences, but we make no representations or warranties regarding its accuracy or completeness. Readers should not act upon this information without seeking advice from qualified professionals. Investments carry risks, and past performance does not guarantee future results. The author and publisher are not liable for any losses or damages resulting from the use of this information. Always conduct your own research before making any decisions.
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