City centre apartment rents rising by up to 10%

Residential landlords in Liverpool city centre are seeking rent rises of up to 10% for tenancy renewals, according to new data. Tony McDonough reports

Liverpool waterfront
Residential rents are continuing to rise in Liverpool city centre. Picture by Tony McDonough


Liverpool city centre’s residential lettings market is showing no sign of slowing down with rents continuing to rise, a new report says.

In its latest quarterly residential market analysis, Liverpool-based independent agency City Residential says people seeking to renew their tenancies in city centre apartments are facing rent rises of between 5% and 10%.

In his last update in January City Residential managing director Alan Bevan said constrained supply and soaring demand was pushing up rents in the city centre.

This was being exacerbated, he added, by rising interest rates and a shortage of affordable mortgages that was pushing would-be buyers into the rental sector. After the disastrous mini budget in September 2022 the sales market “hit a wall”.

In the latest report Alan says the sales market is now starting to recover with mortgage rates becoming more affordable and lenders offering a better range of products. However, this has yet to have an effect on demand for rental properties.

“The strength in the rental market is continuing to encourage investors to buy more stock (especially cash buyers) whilst decreasing mortgage rates are slowly becoming more affordable,” said Alan.

“This recovery is going to be slow and steady but at least we appear to be on an upward trajectory after what has been an extremely challenging six months.

“With each quarter that passes we expect to see some slowdown in the rental market yet there continues to be no visible sign that this is likely to happen anytime soon.

“The big test is likely to come during the summer as many tenants (particularly students) vacate their apartments and an increase in supply naturally occurs.

“While we do not expect a fall off in demand or a slowdown in the continual increase in rents, we do expect to see a slightly less manic market than we are experiencing at the moment.”

Despite landlords asking for higher rents, Alan adds that tenants are so far willing to pay the extra. They are seeing it as a better option than trying to get a mortgage or risking paying even higher rents if they decide to move.

He said: “Rents continue to rise especially at the lower/middle end of the market. The higher end of the market has been more difficult although we have seen this improve with the return of overseas students.

“The effects of the mini budget may well persuade some landlords to potentially keep hold of their investment property especially if they believe there will be a fall in prices. 


Home, house, woman, laptop, living room, relaxing
Many tenants are choosing to stay put despite rent rises, says Alan Bevan


“The continued strength of the rental market would also encourage this. This should ensure a decent, continued supply of property into the market.”

Alan also identified what he described as a “disturbing and unforeseen” phenomenon is lenders who are using the current market conditions to restrict lending on what they see is problematic or risky assets. 

He explained: “We have seen a tightening of restrictions/lending on some buildings where there is commercial or restaurant usage to the ground floor. 

“As these commercial units have been in situ in many cases for over 20 years (and these lenders currently have mortgaged apartments already in the building) it seems a strange approach to take.

“Let’s just hope that this is a temporary issue rather than a long-term one.”

Click here to read the full report

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