Liverpool has experienced significant growth in the number of annual visitors since the COVID-19 pandemic wound down in 2022. The burgeoning tourism industry has directly influenced the city’s property market, leading to higher demand for short-term rentals and increased property prices.
If you’re interested in investing in Liverpool, read our breakdown of the link between tourism and the property market below.
Liverpool’s Tourism Boom: An Overview
Statistics released by Liverpool City Region paint an encouraging picture of tourism in recent years. The tourism sector in the Liverpool City Region contributed more than £6 billion to the local economy in 2023 and grew 21% from 2022 to 2023.
Over 60 million people visited the Liverpool region in 2023, with over six million staying at least one night. These increased tourist figures have positively impacted Liverpool’s jobs market, with over 58,000 employed in the sector.
Rising Demand for Short-Term Rentals
The boost in tourism has been reflected in the demand for short-term rental accommodation. Hotel occupancy rates from 2022 rose 2.2% to 76.5% in 2023, almost the same as the pre-pandemic 2019 figure of 78.4%.
Those in the short-letting sector and others interested in serviced accommodation likewise benefit as demand and price increase with the area’s popularity. The Liverpool city region has seen the number of visitors staying in non-serviced accommodation rise by 4.4%, and the city is the third highest in the UK in terms of the number of nights reserved in short-term rental properties.
Impact on Property Values and Rental Yields
Liverpool’s housing market has experienced notable increases in property values in the past couple of years. The average house price in the city reached £176,000 in June 2024, marking a 3.4% rise from £170,000 in June 2023.
These figures from Zoopla’s monthly index put the city at the top of the chart for England’s price growth, ahead of Manchester, which experienced a 3.4% rise and had held the top spot for several months.
Liverpool’s average property price is notably lower than the UK average of £287,000, making it an attractive investment choice. Investors can also benefit from heightened rental yields thanks to the 8.5% rise in average monthly rent from 2023 to 2024.
Development of Tourism Infrastructure
Robust visitor numbers have provided an overall economic boost to Liverpool. Investment has improved infrastructure and transport, creating more job opportunities for locals. This will lead to a greater need for rental properties and continued property price growth.
In the tourist sector, the Casbah Coffee Club, famous for hosting some of The Beatles’ earliest gigs, has been redeveloped into an Airbnb. The Grade II-listed building features five apartments complete with unique Beatles themes for music enthusiasts to enjoy.
Influence of Major Events on Property Demand
Notable recent events, including the Eurovision Song Contest and The Open Golf Championship, have led to viral spikes in demand for accommodations. An Airbnb property infamously grabbed the headlines during Eurovision after charging £17,600 a night. Still, the impact of the international song competition caused the baseline in the short-term rental market to move, creating sizeable gains for investors.
Liverpool FC’s success, bolstered by star players like Mohamed Salah, has attracted hundreds of thousands of football fans to Anfield in recent years. Many were tourists travelling from the UK and beyond, increasing the demand for short-term rentals during match seasons.
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