In Liverpool, yields have been soaring in recent times—particularly if you have property by the waterfront.
According to recent research entitled, “Liverpool: A Northern Powerhouse, Dockside Regeneration Property Report”, house prices have risen 14% over the past year. That’s impressive at any time but it comes against a backdrop in which house prices around the country have been experiencing their first falls for years. Halifax expects them to fall by a further 8% next year.
So what’s behind the success of the Liverpool property market?
First of all, Liverpool remains much more affordable than elsewhere in the country. The price of apartments is 60% of that in the capital. A budget of £1.5 million could get you one flat in a prime area of London, two in Docklands but five or six in Liverpool.
That, combined with the fact that prices have been rising steadily for the last ten years, makes the birthplace of the Beatles one of the most lucrative targets for any buyers looking for a decent return.
With prices still low compared to the rest of the country and demand high, there is no reason why the Liverpool property market won’t continue to outdo the rest of the UK for the foreseeable future.
Around £14bn has been pumped into Liverpool’s regeneration, including a 30-year project to overhaul the northern docks with the development of mixed-use homes. Areas that had fallen into disrepair are now up-and-coming, with businesses and local amenities flooding into the area.
The Northern Docklands will also be home to Everton’s new multi-million Bramley Moore Stadium. Meanwhile, the Titanic Hotel, built as part of the old derelict Northern Warehouse redevelopment in Stanley Docks, is seeing economic activity flood into the area.
The report also highlights property developments such as the Tobacco Warehouse at Stanley Docks, which will comprise 550 loft-style apartments when completed. Demand here is already strong, demonstrating the appetite for property in this area.
As a result of this redevelopment, yields of waterfront property are outperforming the rest of the city. A one-bed apartment will yield 6% while a two-bed apartment will yield 6.5%.
Alongside regeneration has been Liverpool’s recent economic renaissance. As the economy grows, the profile of Liverpool’s residents is also changing. Over the past five years, there has been a 44% increase in people aged 19 to 30. In comparison, there has been a 7% decline in London.
While young professionals are looking away from the capital, places such as Liverpool are reaping the dividends. Regeneration and the arrival of new, desirable property developments are attracting demand. Whatever the struggles of other property markets over the next few years, then, Liverpool looks set to stay strong.
Contact us today to discover available properties in Liverpool.