Liverpool’s property market has continuously increased in popularity amongst domestic and foreign investors in recent months and is speculated to continue to rise over the upcoming years. But why this recent attraction to Liverpool? Here are the top reasons why Liverpool has seen a rise in property investment.
According to Homes and Property, Liverpool has been undergoing extensive regeneration since 2004, when Grosvenor Estates offered the sum of £1 billion to redevelop the centre of the city of Liverpool into a shopping, residential and leisure complex. It was during 2008 that most of this development, the Liverpool One project, was opened, plus it was the year that Liverpool was recognised as the European Capital of Culture. Today, Liverpool One is one of the most popular shopping centres within the United Kingdom.
There have also been other regeneration projects, including the redevelopment of the docks area, plus the new Chinatown regeneration. As stated by the Financial Times, over the past thirty decades, the Peel Group has overseen the most ambitious development project in Liverpool, the Liverpool Waters, a £5 billion multi-use development which will incorporate offices, retail and residential spaces, visitor attractions, and various other entertainment and leisure spaces.
Liverpool City Council published a Liverpool development update with their plans to continue to grow over the upcoming years. Liverpool currently has £13 billion worth of regeneration projects on-site or seeking planning approval and in 2019 over £1 billion worth of schemes will be completed for a record fifth consecutive year.
Increasing number of businesses.
According to an article on Opulent Invest, a property investment company, outside of London, Liverpool has the largest economy in the UK worth around £166bn and is now home to over 266,000 VAT registered businesses. And this figure is constantly growing, with the Mayor of Liverpool mentioning on the Liverpool development update that there will be potential for over 30,000 new jobs with the future developments.
The Liverpool Council has also provided immense support to small to medium-sized enterprises (SMEs) via the Business Growth Programme, which provides advice and information regarding sales, marketing, finance, among other key areas of each business to guide them to their sustainability and growth.
Liverpool has seen an increase of 5.5% in the population over the past decade, standing now at around 1.4m people, a figure that is expected to continue to rise. The largest driver of this increase has been immigration with around 259,695 people relocating to Liverpool. In addition to this, Liverpool has also been ranked as one of the best cities for young adults to live in, driving further population growth.
Rising number of students.
Liverpool is home to more than 70,000 students across five universities, thus has a strong demand for student accommodation. With this figure set to continue to increase, student accommodation is highly necessary. There is also an increase of graduates who choose to stay in the city after completing their course, being the perfect candidates for modern apartment buildings.
Climbing property prices.
As reported by Home Track in March 2019, the UK Cities House Price Index showed that Liverpool had the highest house price growth out of all the recorded cities, at 5.7% over the last 12 months. At the same time, the UK’s average house price growth was at 2.5%, less than half of Liverpool’s house price growth rate.
In recent years, Liverpool and other northern areas have been the beneficiaries of government funding through the Northern Powerhouse Investment Fund (NPIF), an initiative launched by the British Business Bank. This initiative aims to create a more balanced economy among the North and South areas by providing investment and support for SMEs based in the North of England. With both local and national funding, Liverpool with continue to further develop and grow, thus continuing to attract more investors, businesses and students.