With house prices growing by 14%, Liverpool has been hailed as a property hotspot. This comes after comparing the 14% growth increase with other large cities such as Manchester, Leeds, Birmingham, and London, which Liverpool is currently outperforming.
When compared to cities such as London, it has been recorded that apartment prices are 60% cheaper per sq ft than in the British capital. A great example for easy understanding is the following: £1.5 million would, on average, purchase one apartment in London, compared to a potential 5 or 6within the Liverpool City Region.
This 14% increase is not unfamiliar territory, though. Price growth has steadily grown over the last 10 years and have reached a 50%increase.
But what is causing the price increase?
Over the last couple of years, £14 bn has been injected into the local region, bringing forward a 30-year project, overhauling the northern dock territory. The project is named Liverpool Waters and is staged to create a mixed-use area that will implement homes, hotels (with the likes of the Titanic Hotel) and the ever-important Everton’s Bramley Moore Dock Stadium, that will house over 60,000 seats.
Paul Finch, Head of New Homes at Beauchamp Estates, has commented "Waterside activity is creating a highly desirable residential and leisure destination. Our latest report reveals the momentum that the residential property market is gaining and the city’s top performance, particularly in prime waterside.”
The price increases have also led to greater yields, and they are, again, better than its southern counterparts. For example, yields for one-bedroom apartments sit at 6% and 6.5% for two-bed apartments, this is a stark contrast to London, where the yields fall to 4.5% and 6.3% respectively.
Paul Finch continued to confirm the importance of location, and support why yields in Liverpool in certain areas reach these highs, "The success of Tobacco Warehouse, which is more than 50% sold in phase one, shows clearly the appetite for and appeal of premium homes in a waterside location, both within the local and wider market. Projects like that at Bramley Moore Dock and the Ten Streets move forward and further phases of Stanley Dock complete interest and demand will rise further."
Projects based around regeneration areas create the perfect opportunity for investors to reach into regions and communities before they expand into significant attractions for national and international businesses.