Liverpool City Centre Property Market Driving Fastest Growth in UK
Last year, Merseyside experienced some of the fastest property price growth in the UK, with Liverpool city centre at the heart of it.
The Liverpool city centre market is helping drive Liverpool’s property growth, with reports from Zoopla that the Northern hotspot has been the fastest growing city for several months.
An increase in house prices in Liverpool have largely contributed to average growth of nearly 10% across the North West.
Gráinne Gilmore, head of research at Zoopla, revealed that there has been a sharp rise as buyers return to the market, which city centres are primarily driving.
As we come to the end of the pandemic, people will return to the office and adapt to new hybrid working, meaning there should be a further boost to Liverpool’s city centre market.
Why Liverpool City Centre?
As places of work reopen, demand is flowing back into the city centre.
With flat prices being more affordable than houses, the centre is attracting many first-time buyers, especially as property price growth is set to soar in the next five years.
According to Gilmore, flats in the top 20 UK cities are up around 1.8% compared to houses which are sitting at about 8%, further boosting the city centre market.
There is also international demand to consider as borders open and student education resumes.
With a massive population of students and young professionals, Liverpool city centre is the perfect place to capture rental demand, encouraging investors to secure purpose-built student accommodation and drive market growth.
From Savills’ research, UCAS application data from 2021 showed an 8.4% annual rise in university applications, driven by a 17.1% increase in applications from foreign, non-EU countries.
The Future of Liverpool City Centre
Liverpool’s property price growth peaked at 13.7% in July 2021 but still sits at a comfortable 9%, causing it to remain one of the fastest-growing cities in the country.
Liverpool prices have soared far higher than any other UK competitor, which may continue in 2022.
The UK average house price currently is at £240,000, but in Liverpool, it sits at £180,000. Even with rising property prices, it’s still one of the most affordable places to invest.
Below average property prices make Liverpool a desirable place to live, drawing in buyers and tenants from all over the country.
Investing in an area with high prices rises, investors can acquire huge profits when they decide to sell in the future.
Property price growth is one of the most important factors for property investors.
According to a report from JLL, the city of Liverpool will see house values rise by an additional 5% in 2022.
Significant regeneration projects will also lead to Liverpool City Centre’s property price growth. One of the upcoming regeneration schemes that will positively affect Liverpool is the push for improved transport within North West cities.
Before the Autumn Budget, it was announced that the Liverpool City Region is to receive £710m funding from the government to improve its transport infrastructure.
New public transport routes will radically improve connections across the city region, which will continue to increase the centre’s growth.
Considering Investing in Liverpool’s City Centre?
RWinvest has some attractive investment opportunities in 2022, with Liverpool properties starting from just £74,950.
If you want to maximise your investment potential, the Baltic Triangle and Knowledge Quarter are forecast to see some of the highest price rises in the city.
Have a chat with an agent today to see what properties we have for your property goals and budget.
Read more about the UK property market’s recent performance with our blog post on what happened to UK property prices in January.
Disclaimer: This blog post was originally written in February 2022. The data provided may have changed depending on the date you read this article. Read our Liverpool Property Market 2023 Guide for the latest information.