Liverpool resi market remains sluggish

LIVERPOOL’S residential market continued to witness low levels of activity during the first quarter of 2011, keeping average prices lower.

A new survey by estate agents City Residential showed that the average velue of properties sold in Liverpool city centre fell by almost 1.4% during the quarter, and were down by more than 7.6% over the 12-month period, with the average city centre property selling for £146,840.

Prices in the Docklands area also dipped slightly but have held up much more and a down by just 0.8% over the 12-month period to an average of £170,000.

City Residential managing director Alan Bevan said that viewings also remained low and that there had been some aggressive bidding by potential purchasers.

“Whilst many buyers are wasting their own time (and that of agents/vendors) trying to ‘steal’ properties at bargain basement prices, there are some good deals to be had,” said Bevan.

“In the investment end of the market we are achieving sales once we can show a gross yield around the 8% mark. Whilst buyers can achieve better yields than this at auction we may look back at some of the deals done in a few years time and ask why we did not act?”

The lettings market also remained relatively subdued, with rentals remaining flat in the city centre and only slightly edging up in the Docklands area.

However, Bevan said that stock in the city is set to increase as properties are completed at schemes such as Kings Dock Mill and at Mann Island.

“With further releases from all of these schemes and new schemes such as Kings Waterfront there will be a steady and increasing supply.

“We do expect the market to take this in its stride, however, accepting that maybe one or two of the older, less attractive blocks may suffer as a consequence of the better quality, newer schemes.”