‘Full steam ahead’ for Liverpool’s residential market

LIVERPOOL’s residential market put in a strong performance in the second quarter of the year, as the city continued to build on the progress it has made over the last three years.

The latest residential update by agents City Residential, says the strength in the residential market continued through into the second quarter of the year with the city seeing an overall quarterly price rise of 0.73%, bringing the annual increase to 6.12%

A stronger market has seen supply continuing to increase as demand booms, resulting in increased transactions, the report says.

In the lettings market, prices were up 0.26% on quarter and 5.06% on year, while there was also an increase in overall population due to new student schemes. The overall city centre population is now over 40,000.

It was a slower quarter for completions, which was unexpected given strength of the sales market, but this is expected to increase “dramatically” over the next 12 months.

A continued stream of new developments being proposed or starting on site kept the student market buoyant in the period.

Proposed developments now exceed 10,000 beds for the first time.

City Residential said that, with Watkin Jones onsite with their development opposite LJMU Byron St campus and the announcement of a 790 bed application from Unite, it signals that the more established players are still confident of the student market in Liverpool.

Empiric Student Property also acquired the freeholds of six student accommodation assets in Liverpool from Urban Sleep as part of a portfolio of 502 beds for cash and debt of £41.6m, reflecting the appetite for built and operating student investment deals in Liverpool.

In the private rented sector, Glenbrook’s/Moorfields conversion of the former HMRC building, The Keel, is progressing well and due to open in September 2015, while Moda Living’s £1bn investment from Apache may well help progress the Princes Dock scheme.

“The residential market in Liverpool continues to perform extremely well, especially in comparison to some of the other large northern city centres,” said Alan Bevan, managing director, City Residential.

“The first “true blue” budget on July 7 has thrown a couple of “curve balls” in the direction of the residential market (particularly relating to buy to let) but at this stage we do not see it unravelling any of the progress the city has made over the last two-three years.

“On a slightly different tangent many commentators appear concerned as to the lack of progress made in relation to the Northern Powerhouse discussions we continue to reiterate our thoughts that Liverpool needs to continue to focus on its own talents/assets and not get distracted by any of the “bigger picture” issues. Yes of course we want the city to be part of these discussions (and would love to see an elected metro mayor/devolution) but let’s not forget our future will be driven by what we do on our own as a city just as much as what we do as part of a Northern Powerhouse.”