28 Apr

Liverpool Property Values rise by 0.1% month on month

Liverpool Property Values rise by 0.1% month on month

Liverpool Property Values rise by 0.1% month on month

I do like to have a coffee at Pranzo on Bridge Road in Crosby. Whilst in there, a gentleman approached me and asked if I was the person who wrote the newsletters about the Liverpool property market. We ended up having an interesting chat about the local property market, as he was concerned his daughter would never be able to buy her own property, a place in Liverpool she herself can call home.

My latest analysis, using the Land Registry and Office of National Statistics, shows that overall, month on month, Liverpool property values increased by 0.1% in February (the latest figures available). The year on year figures showed the value of residential property in Liverpool has increased by 4.7% in the year to the end February 2016, taking the average value of a property in the council area to £94,200.

It gets even more interesting when we look at the last few months’ figures and see the patterns that seem to be emerging (or lack of pattern)

  • January 2016 – a drop of 1.9%
  • December 2015 – a drop of 1.6%
  • November 2015 – a rise of 0.8%

We have talked in many recent articles about the lack of properties being built in Liverpool over the last 30 years. This lack of new building has been the biggest factor that has contributed to Liverpool property values still being 103.06% higher than in 1995. At the risk of repeating myself, until the Government addresses this issue, and allows more properties to be built, things will continue to get worse as the UK population grows at just under 500,000 people a year (which is a combination of around 226,000 people because of higher birth rates/people living longer and 259,000 net migration) whilst the country is only building 152,400 properties a year – no wonder demand is outstripping supply.

Another reason intensifying the current level of property values in Liverpool, is the fact that people aren’t moving home as much as they used to, meaning fewer properties are coming onto the market for sale, so in consequence, there is a lack of choice of property to buy, meaning people thinking of moving are discouraged from putting their property on the market … thus perpetuating the problem, as the scarcity of possible properties to buy in order to move also deters people from offering their home for sale. This unevenness between demand from would-be purchasers and the number of properties coming on to the market for sale is causing pressures in Liverpool (and the rest of the UK).

So what of the future of the Liverpool property market and this man’s daughter? I firmly believe the property market in Liverpool and the country as a whole is changing its attitude about homeownership. Back in the 1960’s, 70’s, 80’s and 90’s, getting on the property ladder was everything. Since the late 1990’s, we as a country (in particular, the young) have slowly started to change our attitude to homeownership. We are moving to a more European model, where people choose to rent in their 20’s and 30’s (meaning they can move freely and not be tied to a property), then inherit money in their 50’s when their property owning parents pass away, allowing them to buy property themselves … just like they do in Germany and other sophisticated and mature European counties, meaning his daughter will end up owning property, just later in life than we did. So, whatever the vote on the 23rd of June, if you think about it, we might be more European than we think!

If you want to read more articles on the Liverpool property market, whether you are Liverpool landlord, Liverpool homeowner, first time landlord or a first time buyer – then visit the Liverpool Property Market Blog… www.liverpoolpropertyblog.com

27 Apr

£74, 950 in Liverpool City Centre

I’ve spotted a potential gem in an up and coming part of Liverpool City Centre. It’s a tidy one bedroom apartment on Berry Street, facing St Luke’s Church, commonly known as ‘The Bombed Out Church’ to locals and tourists. This is a very exciting part of the city, it’s central to the Ropewalks, Georgian Quarter and Baltic Triangle which are all very dis arable locations among tenants. It’s also minutes away from Liverpool’s famous China Town where there are amazing plans for regeneration, (see here for development plans) and the thriving Bold Street.

This apartment looks to be in good condition and would expect a rental income of £550 per calendar month offering almost 9% yield. The full sales particulars can be seen here. Developers are investing a lot of money in this area which makes me anticipate great things for the future.

 

26 Apr

Southgate Road, Old Swan, L13 – 8% Gross Rental Yield

Southgate Road, Old Swan, Liverpool Property Blog

I’ve come across this great two bedroom end terrace house in Southgate Road that looks ready for immediate occupation for tenants. The property is available via Concentric for £69,995 and you would achieve a rental income of between £460 and £475 per month making this a 8% gross rental yield.

The property is located in the heart of Old Swan so benefits from being close to supermarkets, shops and banks as well as having great links to the City Centre and the M62 Motorway.

Old Swan is my favourite area for rental properties as properties can be purchased for good prices as well as attracting quality tenants.

The property is new on the market so the owner may not be willing to listen to offers but I would always do my best to try to negotiate a better price as prices have varied from as high as £94,000 at it’s peak to as little as £50,000. Click here to view historical prices on Southgate Road

Here are the property details for you to take a look at CLICK HERE

As always, I appreciate your comments regarding the properties I post or the articles that I write

21 Apr

44% of Liverpool people Rent – Is that Healthy?

44% of Liverpool people Rent - Is that Healthy

Renting used to be a dirty word in the 60’s and 70’s. You either lived in a ‘Rigsby Rising Damp’ style bedsit with wood chip on the wall and a coin operated electric meter (that buzzed in the night) or you lived in a council house. In the latter part of the 20th Century, the British were persuaded that rent payments were ‘wasted money’. However, owning often makes less financial sense than renting and as the rate of homeownership is starting to drop substantially, as we roll the clock forward to today, there is no stigma at all to renting .. everyone is doing it. In fact, of the 535,279 residents of Liverpool, 237,909 of you rent your house from either the local authority/social provider (ie council house or housing association) or private landlords – meaning 44.44% of Liverpool people are tenants.

The idea of homeownership is deeply embedded in the British soul, in fact 289,480 Liverpool people live in an owner occupied property (or 54.08%). Housing is at the heart of Government policy, as George Osborne has promised 200,000 new properties a year so first time buyers can buy their first home whilst recently changing the tax laws for buy to let landlords. To get votes, Thatcher (and everyone since) ran election campaigns promising everybody their own home, and as a country, we seem to equate homeownership the goal of British life.

So as more and more people are renting nowadays, are we turning to a more European way of living? Well, I believe, as a country, we are. In fact, homeownership could be affecting your health! The UK, according to Bloomberg, is only the 21st most healthy country in the world. Germany is at No.10 and Switzerland at No.4 and homeownership is at 52.5% and 44% respectively in those countries (in the UK it is 64.8%).

In the Liverpool City Council area, 65.05% of homeowners who own their house outright said they were in ‘very good’ or ‘good’ health whilst, at the other end of the scale, 11.97% said their health was ‘bad’ or ‘very bad’. Looking at renting, the census splits tenants into two types – 64.61% of Liverpool local authority/social tenants said they were in ‘very good’ or ‘good’ health and 15.93% were in ‘bad’ or ‘very bad’ health …

… whilst ‘private rented tenants’ in Liverpool, were the healthiest, as 84.88% of them described themselves in ‘very good’ or ‘good’ health and only 5.55% were in ‘bad’ or ‘very bad’ health

I am not suggesting that low homeownership rates in Switzerland and Germany are directly linked to health, nor, do I expect Brits to all go to Berlin, Interlaken or Düsseldorf and realise how happy people are when they don’t need to worry about all the stresses which accompany homeownership. The numbers for Liverpool do go some way to back up the argument (and they are the same across the whole of the UK). Nonetheless I do think that substantially all of the upside to homeownership in recent years has been a function of monumental rising house prices. Now that’s come to an end, it’s hard to see why anybody would want to buy?

Renting is here to stay in Liverpool and it’s growing incrementally each year. Even with the new tax rules for landlords, buy to let is still a viable investment option for most people in the City. There has never been a better time to buy buy to let property in Liverpool, but buy wisely. Gone are the days that you would make profit on anything with four walls and a roof. Take advice, take opinion, do your homework. One place to do more homework, to read more articles on the Liverpool Property market like this, is the Liverpool Property Blog www.liverpoolpropertyblog.com