Liverpool’s property market update
Liverpool is an exciting, intriguing alternative to London. Its heritage is rich and diverse, from its fascinating maritime history and the mythical liver birds to The Beatles and a strong cultural identity. The city uniquely boasts two cathedrals, as well as two fierce football rivals in the shape of Liverpool and Everton.
In July 2004 Liverpool received the UNESCO World Heritage accolade and in 2008, the city was picked as a European Capital of Culture – acknowledging the city’s legacy and importance on the global stage. What Liverpool has done exceptionally well is to reinvent itself and these two major awards provided a springboard for further enrichment.
Like many cities where the industrial age shaped its landscape and fortunes, Liverpool has had to adapt. It is now a beacon for investment and innovation, with many new ‘quarters’ developed in order to welcome businesses, academia and new residents in equal measure.
Millions in investment has helped create Ropewalks, the Baltic Triangle, Rumford Place, Paradise Street and Bold Street – areas that home movers gravitate to for an eclectic mix of accommodation and thriving social scenes. Despite high levels of desirability, living in Liverpool city centre remains surprisingly affordable, especially when compared to London. Rightmove’s latest figures show that Liverpool City Centre has an overall average house price of £134,772 – very similar to values seen in 2018 but 23% down on 2008, when the average house price was £175,555.
Waterside living is always an option in Liverpool, with the River Mersey providing a spectacular backdrop and the much-loved Albert Dock always a popular choice. Stanley Dock in the Vauxhall area of the city is another property hotspot, with the Tobacco Warehouse yielding some of the most sumptuous apartments and penthouses Liverpool has ever seen. Mersey views are also enjoyed from Herculaneum Quays – one of Liverpool’s many new developments that offer a concierge, wellness centre and gym.
Liverpool, however, isn’t all about shiny and new. There are a number of magnificent Grade II listed Georgian townhouses found in Falkner Street and Catharine Street, as well as the period houses that line Gambier Terrace, Rodney Street and Hope Street - together forming an attractive conservation area.
The rental market in Liverpool is booming with a number of new build and conversion developments offering attractive deals to investors. For example, the apartments at New Eldon Grove – a revamped Grade II listed building – are being offered to landlords and cash buyers with a 7% net rental return for two years. A similar arrangement can be found at Manolis Yard, where penthouses are being sold with an assured 6% yield/return for three years.
In terms of tenants, there is no shortage of takers. From professionals keen for a city centre base to students studying at either the University of Liverpool or Liverpool John Moores University, Liverpool enjoys a steady influx of home movers. Home.co.uk’s latest figures show the average property rent in Liverpool is £871 per calendar month.
Growth and opportunity, however, haven’t been reserved exclusively for the residential sector. Confidence has spilled over into employment, commercial, leisure and education with the 2000s seeing the addition of the Echo Arena and Liverpool ONE. Liverpool’s Science Park and Knowledge Quarter have blossomed to such a degree that they are being joined by Paddington Village - a £1bn flagship expansion site that will house 1.8m square feet of science, technology, education and health space.
Other mixed-use projects in development include Pall Mall, Pumpfields, Ten Streets and Upper Central - just a handful of projects on Liverpool City Council’s regeneration list that will provide across-the-board opportunities for decades to come.