How Liverpool’s Rental Prices Stack Up Against London and Manchester: New Affordability Gap Widens

Liverpool renters are facing monthly costs nearly 37% lower than their London counterparts, according to a June report from Hamptons International, as the gulf in affordability between regional cities and the capital continues to grow. On Merseyside, average asking rents for a two-bed flat now stand at £1,080 per month-compared to a staggering £1,686 across Greater London.

This widening gap is back in focus as local incomes struggle to keep pace with property prices and tenants weigh up whether it makes more sense to aim for the housing ladder or keep renting. As the UK’s cost of living crisis drags into its third year, affordability is centre stage for the more than 130,000 private renters in Liverpool City Region and for many young professionals and families making tough choices about where and how to live.

North West Numbers: Liverpool, Manchester, and Beyond

Walk down Baltic Triangle’s Jamaica Street or the leafy rows of Lark Lane near Sefton Park, and the evidence is everywhere: Liverpool’s rental market remains dynamic, but not immune to pressures seen nationally. Agents at City Residential on North John Street report multiple applications on flats the moment they hit Rightmove. Yet prices are still within reach for many, compared to other northern cities-though the difference is narrowing. For example, average rent for a new-build flat in Manchester’s Ancoats has reached £1,220, and in Salford’s MediaCityUK, tenants regularly pay upwards of £1,300 a month.

First-time buyers aren’t faring much better. The latest data from Nationwide Building Society shows the average cost of a Liverpool home exceeded £204,000 in June 2026, up 2.1% year-on-year. Even so, this is less than half the London average, where buyers must now find over £485,000 for a typical property. The deposit required for a modest Edge Hill terrace-around £21,000 for a 10% deposit-remains out of reach for many renters juggling bills and childcare.

Rent vs Buy: Tracking Affordability Across Cities

Industry analysts at Zoopla estimate that, across England, renters now spend over 32% of their gross income on rent, but the proportion in London can top 40%. In Liverpool, that figure averages 27%, aided by the city’s relatively stable wages in public sector hubs like the Royal Liverpool University Hospital and universities. National rental inflation is highest in capitals-forcing many London renters to look further afield or consider shared spaces, co-living arrangements, or flexible leasing schemes like those trialled by Urban Splash in Liverpool’s Ten Streets district.

For those staying local, Help to Buy ISAs and council-backed shared ownership schemes offer some relief, though waiting lists at Onward Homes and Regenda Group remain long. Liverpool City Council is currently reviewing its Fair Rent Charter, with a consultation session scheduled at Toxteth Town Hall on 11 July, in response to increased calls for rent caps and stricter HMO enforcement in Wavertree, Kensington, and Allerton.

Property professionals expect only modest rent increases in Liverpool over the coming year, largely due to steady supply and incremental wage growth. But if London prices and mortgage rates stay high, demand could once again spill north, raising the cost of both renting and buying. Would-be movers are being urged to do their homework: check average rents in their preferred postcode (L1, L17, L18); use online affordability calculators; and keep an eye on the city council’s upcoming policy updates for any measures that could tip the scale further for the region’s tenants and first-time buyers.