Liverpool property in two-speed market as house prices outpace units by £40,000

The gap between Liverpool house prices and unit prices has blown out to more than £40,000 over the past year, according to City Residential, a local agency that tracks sales across the L1-to-L8 postcodes. The divergence is the widest recorded since the firm began its quarterly index in 2019, and it is forcing a rethink among first-time buyers and landlords alike.

It matters now because rising interest rates and a stubborn cost-of-living squeeze are pushing buyers toward smaller, cheaper properties while supply constraints on family homes keep pushing those prices higher. The trend is most visible in neighbourhoods such as Wavertree and Woolton, where semi-detached houses routinely sell within 14 days of listing, according to Rightmove data cited by City Residential. Meanwhile, apartment stock in the city centre is sitting on the market for an average of 67 days, leaving investors anxious about yields.

A Tale of Two Markets

Take the Baltic Triangle. Since 2024, new unit developments along Parliament Street have added nearly 300 flats to the market, yet prices for one-bedroom apartments have risen only 2.3% annually, said James Cliffe, head of research at City Residential. By contrast, a three-bedroom Victorian terrace on Holmefield Road in Wavertree fetched £295,000 in June, up 8.1% from a year earlier, according to Land Registry filings reviewed by the firm.

The numbers are stark. City Residential’s most recent index shows the average house price in Liverpool now sits at roughly £212,000, while the average unit-a flat or apartment-stands at £171,000. That is a £41,000 gap, up from £28,000 in Q2 2025. The Liverpool Echo first reported the data on July 8, noting that the price gap had widened consistently over five consecutive quarters.

Buyers are adjusting. Natalie Byrne, a broker at The Mortgage Shop on Bold Street, said inquiries for house purchases have jumped 40% over the past six months, while unit-related searches have flatlined. “People are stretching their budgets to get a house because they see land as a safer bet,” she told the Echo. “But not everyone can afford the leap, and those buyers are getting stuck.”

What It Means for Liverpool’s Future

The divergence is also reshaping the rental market. Landlords who bought city-centre units during the 2021-2023 boom are now facing longer vacancy periods. At the same time, rental demand for houses in areas such as Aigburth and Allerton has pushed yields above 6%, compared with 4.8% on city-centre units, according to a separate report from Liverpool Letting Agents Association published this week.

What happens next likely hinges on interest rates and new building. Liverpool City Council’s local plan, adopted in March, earmarks 4,500 new homes across the city by 2031, with a heavy emphasis on brownfield sites in the Knowledge Quarter and along the waterfront. But developers are already pivoting: Neptune Developments, one of the largest in the region, told Place North West that it is designing fewer apartment towers and more low-rise townhouses for the next phase of its Liverpool Waters project.

For buyers, the advice from brokers is to act quickly on houses but negotiate hard on units. For investors, the message is clearer still: follow the family-sized demand. The two-speed market shows no sign of converging soon.

This article is general information only and is not personal financial or investment advice. Consider your own circumstances and seek licensed professional advice before making financial decisions.