Liverpool has fast become the hot spot city for property investors and homebuyers alike. Property price growth over the last year is higher in Liverpool than any other UK City and rental growth is also on the up with some reports saying rents in the city are rising at double the rate of the UK average.
House price in the UK has been the highest since before the Global Financial Crisis. According to Zoopla, the average UK house price over the year to March 2022 rose by 8.1%, but this was much higher in Liverpool with an increase of 10.3%.
The Government’s Land Registry data shows an even higher year-on-year rise of 11% for properties in Liverpool. This data is also broken down by property type, with terraces having increased by 10%, flats by 11%, semis by 12% and detached homes by a staggering 14%.
One of the big reasons investors and homeowners are attracted to Liverpool is the amount of investment being poured into the city. £700m has been invested in upgrading 119 assets within Liverpool’s UNESCO World Heritage City in the past few years. And a further £800m is to be invested in a further 40 heritage assets over the next five years including Bramley Moore Dock in Liverpool Waters on the city’s North Shore. This investment and increased opportunity will help support house price and rental growth in Liverpool.
Investors are also favouring Liverpool because the average property in the city remains in the affordable bracket. The cost of an average terrace house in the UK is £221,680 but it is significantly lower in Liverpool, coming in at just £146,299. The average prices of other property types are below:
According to data from JLL, house prices in Liverpool will continue to rise over the next five years although not at the same level as shown. Growth rate this year is expected to be 5% and then there will a yearly average of 3.9% up to 2026.
The rental market in Liverpool is also on fire. According to the Government statistics, the average rental price in England grew by an average of 3.2% year on year (February 2021-22), but Zoopla shows rents in Liverpool are rising at almost double this rate. They estimate the average rent currently stands at £652 per month, which is an increase of 6% year on year.
Supply v's demand has without a doubt played a huge part in this. For the first time, we are seeing renters offering to go above the rental price or pay their six month rental costs upfront to secure the property.
With so much going on in Liverpool, it is expected that the city will grow substantially over time, both in population and economically. And the property market will continue to benefit from this.