Over the past five years, property values in Liverpool have shot up by 25.20%. Apartments have fared particularly well, increasing in value by 25.66% over the past five years, according to Zoopla.
Hometrack’s UK Cities House Price Index listed Liverpool as the ninth fastest growing city for house price growth in the UK in 2016. The northern city achieved year on year growth of 7.0% during 2016, with growth of 3.0% in Q4 alone. The latest update (September 2017) shows respectable year-on-year growth of 3.2%.
One of the reasons for Liverpool’s sustained property price growth is the pace at which demand for properties in the city has outstripped supply. Liverpool’s population fell steadily from the 1930s until the early 2000s, when a resurgence of city living saw it increase from 435,500 in 2001 to 466,400 in 2011, according to Census data.
The 5.5% increase in Liverpool’s population in the decade to 2011 marked a turning point not just for the city itself, but for the UK as a whole. Across the nation, city living has become more sought after, with key urban areas experiencing a sudden yet sustained turnaround in their declining populations after the millennium.
The pull of the UK’s cities on young professionals seeking economic opportunities has put pressure on housing stock. At the same time, homebuilding in Liverpool is below the level required in order to meet demand. The Home Builders Federation puts that number at 3,000 homes per year, but only 1,700 new homes were started in Merseyside in 2014/15, down 27.7% from the year before. The situation worsened in 2016, with new housebuilding falling by 32.4% in the year to September.
“Over 3000 homes need to be built every year across Merseyside to meet projected housing need, a level that has been consistently missed.”
Steve Turner, Home Builders Federation
As Liverpool’s population to continues to increase, construction needs to pick up the pace in order to ensure that the city’s housing needs can be met. And while supply continues to lag behind demand, prices look set to continue rising.