Beyond Manchester: Unlocking the Next Generation of UK Property Investment Opportunities in Liverpool, Leicester & Cleveleys
Manchester has long been lauded as a powerhouse for property investment, a benchmark for capital growth and strong rental yields. Its success story is undeniable, driven by a thriving economy, significant regeneration, and a dynamic population of students and young professionals. But for the savvy investor, the question isn’t just “where is growth happening?”, but “where is the next Manchester?”.
At Portico Invest, we’re dedicated to uncovering these emerging markets, identifying locations poised for exceptional returns. While Manchester remains a robust option, we believe Liverpool, Leicester, and Cleveleys offer unique advantages and the potential for even higher capital appreciation and rental yields, representing the exciting next chapter in UK property investment.
Liverpool: A City Reimagined, Ripe for Investment
Liverpool’s transformation is nothing short of remarkable. Once facing significant economic challenges, it has undergone a dramatic regeneration, attracting billions in public and private investment. This resurgence has not only revitalised its historic heart and forgotten docklands but has also created a vibrant, modern city with immense appeal for residents and investors alike.
Economic Revival and Regeneration Driving Demand:
Liverpool’s economic growth is palpable. Projects like Liverpool ONE, the comprehensive redevelopment of the Docklands (including the exciting Liverpool Waters project), and the flourishing Knowledge Quarter are creating thousands of new jobs and attracting a diverse demographic. The KQ Liverpool, a hub for world-class universities, hospitals, and research institutions, specifically fuels demand from students, academics, researchers, and healthcare professionals – a highly desirable tenant base.
The impact on the property market is clear. Areas like the L1 postcode (City Centre) have seen strong price growth and healthy rental yields, with some areas like the Baltic Triangle achieving robust returns in the 6.0-6.5% range for high-spec apartments. The city consistently delivers some of the highest rental yields in the UK, often ranging from 8% to 10%, well above the national average. This strong rental demand is underpinned by a growing population of students and young professionals drawn to the city’s expanding job market and dynamic urban lifestyle.
Off-Plan Opportunities in Liverpool: Capitalising on Growth:
Investing off-plan in Liverpool’s regeneration zones offers an exceptional opportunity to secure properties at today’s prices and capitalise on significant capital appreciation as developments complete and surrounding areas mature. Savills predicts average property prices in the North West to grow higher than anywhere else in the UK, with a staggering 29.4% expected growth by 2029.
Portico Invest actively seeks out pre-launch and off-plan developments in these high-potential areas. These opportunities often provide:
- Lowest Entry Prices: Secure properties at the earliest stage, maximising your potential for capital growth.
- High-Spec Units: Access to modern, energy-efficient apartments designed for contemporary tenants.
- Prime Locations: Developments strategically placed to benefit from ongoing regeneration and strong tenant demand.
- Strong Rental Yields: Targeting areas with a proven track record of high demand from students and young professionals.
Vibrant Culture: Enhancing Liverpool’s Investment Appeal:
Beyond the economic statistics, Liverpool’s vibrant culture significantly contributes to its investment allure. Its rich musical heritage, world-renowned football clubs, iconic waterfront, and diverse arts scene make it an incredibly attractive place to live. This cultural energy translates directly into tenant appeal, ensuring a steady stream of residents eager to experience Liverpool’s unique lifestyle. Ongoing investments in cultural infrastructure, such as the £20 million allocated from the Levelling Up Fund for Liverpool’s museums and galleries, further cement its long-term desirability.
Leicester: The East Midlands’ Rising Star
Leicester, strategically positioned in the heart of the East Midlands, is rapidly emerging as a compelling choice for property investors. This historic city, with its blend of Roman roots and modern innovation, boasts an impressive rental yield growth and significant potential for capital appreciation.
Strategic Location and Impressive Rental Yield Growth:
Leicester’s central UK location provides excellent transport links to major cities, enhancing its appeal for both residents and businesses. This connectivity, combined with a fast-growing population and expanding job market, is fuelling consistent rental demand. Over the past five years, Leicester’s average monthly rent has increased by 28%, from £802 in 2020 to £1,030 in 2025. This impressive growth highlights the city’s strong rental market, with listings still attracting multiple enquiries due to its affordability relative to nearby urban centres.
The city is home to over 60,000 students from the University of Leicester and De Montfort University, providing a stable and substantial tenant base, particularly for HMOs and purpose-built student accommodation.
Regeneration Projects Driving Property Values:
Like Liverpool, Leicester has a strong commitment to urban regeneration. Key projects such as the Cultural Quarter, which transformed a neglected industrial area into a thriving creative hub, and the ambitious Leicester Waterside project, are reshaping the city’s landscape. These initiatives not only enhance aesthetics and amenities but are also powerful drivers of property market growth, influencing both sales prices and rental yields. For example, a major 350-home development on Leicester’s waterways is set to be an £80 million-plus investment, transforming disused industrial buildings into desirable residential spaces.
Ongoing investments in infrastructure, including road and rail improvements, further enhance connectivity and property values. Moreover, significant investments in Leicester’s hospitals create numerous jobs for medical professionals, driving demand for rental properties close to these facilities, often attracting discerning tenants seeking modern, high-quality accommodation.
Leicester Off-Plan Investment: A Case Study in Potential:
Portico Invest’s experience in Leicester showcases the tangible benefits of off-plan investment. We identify opportunities that are strategically located near key regeneration zones or essential amenities, such as healthcare facilities or university campuses. Investing in off-plan developments in Leicester allows clients to secure units at pre-completion prices, benefiting from significant gains as the development progresses and the area appreciates. These modern developments often feature attractive amenities, commanding premium rental rates and ensuring strong, long-term returns. Developments like “The Old Ground” and “Bosworth House” highlight the potential for gross yields of up to 6% and attractive rental incomes.
Cleveleys: Coastal Charm with Surprising Returns
While Liverpool and Leicester offer urban vibrancy, Cleveleys presents a compelling, often overlooked, opportunity for investors seeking a blend of coastal lifestyle and significant capital appreciation. As an emerging market, Cleveleys is showing strong signs of growth, driven by its unique appeal and increasing demand.
Emerging Market with Significant Capital Appreciation Potential:
Cleveleys is carving out a niche as an attractive investment location in the North West. While not traditionally on the radar of major property investors, its affordability and growing popularity are leading to strong capital appreciation. As urban centres become more saturated and expensive, areas like Cleveleys offer a more accessible entry point with considerable upside potential. The broader North West region is forecasted for substantial house price growth, and Cleveleys, as a coastal town, is poised to benefit from this trend.
Coastal Lifestyle and Growing Demand:
The appeal of a coastal lifestyle is a significant draw for tenants, from families to retirees and even young professionals seeking a more relaxed pace of life without sacrificing amenities. Cleveleys offers this desirable balance, with its beautiful seafront, local shops, and community feel. This quality of life attracts a growing demographic, leading to increasing demand for rental properties. Furthermore, its proximity to larger towns and cities in the North West enhances its connectivity and broader appeal.
Off-Plan Opportunities in Cleveleys: Attractive Entry Prices:
Portico Invest identifies off-plan opportunities in Cleveleys that offer attractive entry prices, making it an ideal market for investors looking for strong returns on a relatively lower initial outlay. Developments such as “Waterside” illustrate this potential, highlighting robust expected returns and an area experiencing a shortfall in desirable properties. These new developments are designed to meet the needs of the growing population and local tourist market, ensuring solid returns from both long-term and short-term rental opportunities. By getting in early, investors can capitalise on the increasing demand and rising property values as the area continues to mature.
Manchester as the Benchmark: A Comparative Advantage
Manchester’s property market success story – characterised by robust capital growth and strong rental yields – provides a valuable benchmark. It demonstrates the potential for sustained growth in dynamic UK cities. However, for investors seeking to maximise returns, it’s crucial to look beyond established hotspots and identify the next wave of opportunities.
When comparing key metrics like rental yields and capital growth forecasts across Manchester, Liverpool, Leicester, and Cleveleys, a clear picture emerges:
- Manchester: Offers consistent performance with rental yields around 6.5% and strong capital growth. However, entry prices can be higher, potentially limiting initial yield.
- Liverpool: Provides some of the highest rental yields in the UK (up to 7.5%, and in some areas, even 8-10%) and significant capital appreciation potential due to ongoing, large-scale regeneration and lower average property prices compared to Manchester.
- Leicester: Boasts impressive rental yield growth (28% in 5 years) and benefits from a strategic location, diverse economy, and substantial regeneration projects. Its affordability offers a lower barrier to entry for investors.
- Cleveleys: Represents an emerging market with attractive entry prices and significant capital appreciation potential, driven by the increasing demand for coastal living and a growing population.
While Manchester is undoubtedly a strong market, Liverpool, Leicester, and Cleveleys offer unique advantages:
- Higher Potential Yields: In many instances, Liverpool and Leicester present opportunities for higher rental yields than Manchester, particularly for well-researched off-plan developments.
- Lower Entry Costs: The ability to enter these markets at a more competitive price point allows investors to acquire more assets or achieve a higher percentage return on their investment.
- Emerging Growth Stories: These cities are in various stages of significant growth and regeneration, meaning investors can capitalise on the earlier phases of appreciation, often leading to more substantial long-term gains.
At Portico Invest, we don’t just follow the trends; we anticipate them. By focusing on the powerful combination of strategic location, robust regeneration, and strong tenant demand, we are confident that Liverpool, Leicester, and Cleveleys represent the next generation of high-performing property investment locations in the UK, offering discerning investors the chance to achieve truly exceptional returns.
Ready to explore these exciting opportunities? Contact Portico Invest today to discuss how you can diversify your portfolio and capitalise on the future of UK property investment.