Liverpool Property Growth: Leading Regional Price Increase

Liverpool property growth continues to outpace other regions in the North West of England, making it the frontrunner. Recent data from Zoopla reveals that property values in the city have risen by 3.5% over the past year, placing it at the top of the leaderboard for price appreciation in England.

Liverpool Takes the Lead in the North West: Liverpool Property Growth

Manchester, which has dominated the rankings in recent months, follows closely behind with a 3.4% annual price increase. These figures highlight the strength of the North West property market. However, they are outpaced by Belfast. Belfast has experienced the highest growth rate in the UK, with a 6.9% surge in house prices.

Across the UK as a whole, property prices have risen by an average of 1.9% in the year leading to January. However, Northern Ireland stands out with an impressive 7.2% increase, making it the top-performing region. In England, the North West remains the leader, with an overall growth rate of 3%, reinforcing Liverpool and Manchester’s position above the regional average.

London’s Property Market Showing Signs of Recovery

While property values in the North West are on an upward trajectory, house prices in London and the South of England have seen only modest increases of between 1% and 1.2% over the past year. Despite this slow growth, there are indications that London’s property market is beginning to recover, with price appreciation improving compared to the previous year.

The capital has long struggled with affordability constraints, which have led many buyers and investors to look elsewhere for better value. More people are seeking properties outside London due to flexible working arrangements. As a result, cities like Liverpool and Manchester are becoming more attractive.

Liverpool: A Prime Location for Property Investment

Liverpool has firmly established itself as a hotspot for property investment, thanks to its combination of affordability and strong capital growth potential. Homebuyers and landlords find the city attractive, as rental yields exceed the national average in several key areas.

Recent research from Zoopla highlights Liverpool as the most affordable city in England. It is ideal for first-time buyers and single professionals.

Affordability and Rental Yields Driving Demand

The median price for a one or two-bedroom property in Liverpool is £130,800. This is just above the new stamp duty threshold of £125,000. The new threshold takes effect from 1st April. In comparison, the city’s median gross monthly salary is £2,980, with average mortgage repayments of £540 per month. This results in an annual price-to-earnings ratio of 3.7, further cementing Liverpool’s reputation as an affordable place to buy property.

Housing affordability remains a pressing issue across the UK. Locations like Liverpool offer low entry costs and strong growth potential. Therefore, experts expect Liverpool to continue attracting buyers. Investors seeking stable, long-term returns are likely to favour such cities, where demand for rental properties remains high.

A Shift Towards More Affordable Areas

The disparity between house prices in London and more affordable regions is likely to persist. Experts predict stronger price growth in lower-cost areas in the coming years.

Tom Bill, head of UK residential research at Knight Frank, remarked:

“The rest of the country is closing the gap with London as demand spreads beyond the capital due to affordability pressures. The gap will narrow rather than close, but we expect stronger house price growth in less expensive areas of the UK during the next several years. The push into more affordable areas will be reinforced by the flexibility more commuters have about how and where they live following the pandemic.”

This shift in demand is further supported by changing work patterns, with remote and hybrid working allowing buyers greater flexibility in their choice of location. As a result, cities such as Liverpool, Manchester, and Birmingham are benefiting from increased demand, driving house prices upward.

Improving Market Confidence and Economic Stability: Liverpool Property Growth

Several economic factors, including declining mortgage rates and sustained earnings growth, underpin the housing market’s resilience. These conditions are expect

Richard Donnell, executive director of research at Zoopla, commented:

“The housing market is resilient, supported by faster growth in average earnings. There are the most homes for sale in seven years, which will keep price inflation in check.”

His remarks align with recent trends. Property sales activity in the UK has gained momentum. All key market indicators are up by 10-11% compared to the previous year.

Rising Consumer Confidence Boosts Housing Market Activity

Increased housing market activity mirrors broader economic trends, including robust wage growth, higher retail sales, and improving consumer confidence. As the cost-of-living crisis eases and interest rates stabilise, more prospective buyers are likely to re-enter the market, further strengthening demand.

Additionally, the availability of properties on the market has reached its highest level in seven years. Experts expect this increase in supply to help moderate price inflation, ensuring a more balanced and sustainable housing market.

What Lies Ahead for the UK Property Market?

Looking ahead, industry experts anticipate continued growth in the housing market, particularly in regions where affordability remains a key advantage. While London may gradually improve, investors and homebuyers are expected to focus on areas offering lower house prices and strong rental yields.

Liverpool’s emergence as a leading city for property price growth is likely to persist, driven by its affordability, high rental demand, and strong economic fundamentals. Similarly, Manchester and other cities in the North West are well-positioned for further price appreciation, as buyers continue to seek better value beyond the capital.

As economic conditions stabilise, mortgage rates are becoming more favourable. The UK property market will experience steady growth. Affordability will play a crucial role in shaping future trends.