Liverpool residential property market shows no signs of declining
Liverpool’s residential market is booming, with both sales and lettings showing strong progress, according to the latest quarterly report by Liverpool property firm City Residential.
It found that during the period April to June, the residential sales market in the city saw sales ahead by around 30% in comparison with the same quarter in 2021.
Prices in the suburbs have boomed as many buyers have looked to purchase properties away from the town/city centres. This has created a larger gap in pricing between the city and the suburbs creating even better value for buyers.
The real challenge of low availability of properties for sale will continue to underpin growth in prices and result in multiple buyers chasing those few properties that are available for sale, the report predicts.
It also suggests that the increase in sales prices may persuade some landlords to consider selling, although it adds that this is not something that is expected to happen in the short term, more the medium/long term as rental properties become vacant.
Also, the introduction of a new Liverpool Landlord Licensing scheme is ‘encouraging’ some landlords to sell up, which may result in a welcome increase of properties for sale.
The report warns that the market might be impacted by recent increases in the Bank of England’s interest rate, forcing lenders to do the same, which could hamper the ability of some buyers to fund property purchases going forward.
Another factor that could affect residential sales is that landlords might hold on to their properties due to the extremely buoyant rental market, thereby restricting the number of potential properties that will be available for sale, potentially exacerbated by the strong recovery in the short term/Airbnb and serviced apartment sector that could encourage some landlords/investors/operators to market their properties in this sector again, decreasing the supply for sale in the city.
The latest report also reveals that residential lettings in the city have performed extremely well over the past three months as strong activity levels and low levels of stock continues to favour landlords and a subsequent continual increase in rents.
The second quarter of 2022 saw a continuation of the strong activity from the first quarter with a slight increase in rental stock resulting in an increase in lettings around 15% in excess of the same quarter in 2021.
City Residential said: “We reported in the last quarter highlighting the extremely low levels of rental stock in the city but expected this to increase. Thankfully this has been the case with an increase in supply of both new and existing stock. There has been a surprisingly high number of tenants leaving their tenancies, but just as big a rise of new tenants wanting to rent the available stock.”
Rents continue to rise, especially at the lower/middle end of the market. The higher end of the market has been more difficult although this is starting to improve with the return of overseas students.
The report said that, while many landlords will be delighted to see void levels so low and rents rising, many tenants will think differently. But it is important to understand, however, that rent levels in Liverpool are some of the lowest out of any Northern city and still offer tremendous value for money in comparison with the suburbs.
