30 May

Victoria Street, Liverpool, L1 6BD – 1 bed apartment only £80,000

I’ve come across this really nice one bedroom apartment located in the heart of Liverpool City Centre with an asking price of offers over £80,000.

This property would make a great investment as I would expect it to achieve a rental income of approx £7,200 per annum giving this a gross yield of 9%. Achieving 9% in the City Centre is excellent as yields are often lower but capital growth can expect to be a lot higher.

I’m not 100% sure but I’m confident that I have been in this building and the properties are kept in a good condition with long standing tenants and the properties are sold with an original lease length of 999 years. The ground rent is approx £50 per annum and the service charge will be approx £1000 per annum.

The selling agent is Springbox Properties and I’ve never had any dealings with them but if you are interested, then I would be willing to speak with them and get further information about the property and even to arrange a viewing. Let me know via adamr@liverpoolpropertyblog.com

Click here to view the property

25 May

Hard Brexit could cause 3,300 properties to be dumped onto the Liverpool Property market

So all cards up in the air! A general election will be on the books, but one thing is for sure … whoever gets the job to deal with Brexit has a hard job on their hands (I’m just glad its not me!) As it currently stands, by not assuring the rights of EU citizens in the UK, Theresa May has squandered an opportunity to give peace of mind to our EU co-workers working and living in Liverpool (and the rest of the UK). No.10 Downing Street’s point of view is that in promising the rights of EU citizens in the UK, it will postpone the same guarantee to the 1.5 million UK citizens living in the other nations of the EU.

Putting aside the politics for one second, the simple fact is now Article 50 has been triggered, we have two years to make a deal with the EU; otherwise it will be a ‘hard Brexit’. Now you might not think a hard Brexit will affect you in your home in Liverpool … but nothing could be further from the truth.

Of the 450,085 people who are resident in the Liverpool City Council area, 407,595 were born in the UK, 6,973 were born in EU countries from West Europe and 5,589 were born in EU countries from the former Soviet States in East Europe (the rest coming from other countries around the world).

The rights of these EU citizens living in the Liverpool area are not guaranteed and will now be part of the negotiation with Europe. It is true a lot of our EU next door neighbours in Liverpool will have acquired rights relating to the right to live, to work, to own a business, to possess a property, the right to access health and education services and the right to remain in a UK after retirement… yet those acquired rights are up for negotiation in the next two years.

So, what would a hard Brexit do to the Liverpool property market?

Well a hard Brexit could mean the nuclear option when it came to the Liverpool housing market. It could mean that every EU citizen would have to leave the UK.

In the Liverpool City area, 2,704 of the 6,973 Western European EU citizens own their own home and (so they would all need to be sold) and 4,007 of the 5,589 Eastern European EU citizens rent a property, so again all those rental properties would all come on the market at the same time.

Hard Brexit and mass EU Migration would mean c. 3,300 properties being dumped onto the housing market in a short period of time, meaning there would be a massive drop in Liverpool property values and rents, causing negative equity for thousands of Liverpool homeowners and many buy-to-let landlords would be out of pocket.

While there is no certainty as to what the future will hold, both UK expats in the EU and EU citizens in the UK rights will no longer be guaranteed and will be subject to bilateral renegotiation.

All I ask is that the politicians are sensible with each other in the negotiations. A lot of the success of the Liverpool (and UK) property market has been built on high levels of homeownership and more recently in the last 10/15 years, a growth of the rental sector with lots of demand from Eastern Europeans coming to Liverpool (and the surrounding area) to get work and provide for their families. Many Liverpool people have invested their life savings into buying a buy to let property.

Much will depend on what is politically realistic. Unilateral knee-jerk reactions and measures caused by a hard Brexit would not only likely cause major disruption or suffering to the 3 million EU citizens living in the UK, but also everyone who owns property in the UK … politics aside – a hard Brexit is in no one’s interests.

18 May

16.81 Babies Born for Each New Home Built in the Liverpool area

 

As more babies are being born to Liverpool mothers, I believe this increase will continue to add pressure to the over stretched Liverpool property market and materially affect the local property market in the years to come.

On the back of eight years of ever incremental increasing birth rates, a significant 16.81 babies were born for every new home that was built in the Liverpool council area in 2016.  I believe this has and will continue to exacerbate the Liverpool housing shortage, meaning demand for housing, be it to buy or rent, has remained high.  The high birth rate has meant Liverpool rents and Liverpool property prices have remained resilient – even with the challenges the economy has felt over the last eight years, and they will continue to remain high in the years to come.

This ratio of births to new homes has reach one its highest levels since 1945 (back in the early 1970’s the average was only one and a half births for every household built).  Looking at the local birth rates, the latest figures show we in the Liverpool council area had an average of 62.9 births per 1,000 women aged 15 to 44.  Interestingly, the national average is 61.7 births per 1,000 women aged 15 to 44 and for the region its 54.4 births per 1,000 women aged 15 to 44.

The number of births from Liverpool women between the ages of 20 to 29 are significantly lower than the national average, but those between 35 and 44 were closer to the national average.  However overall, the birth rate is still increasing, and when that fact is combined with the ever-increasing life expectancy in the Liverpool area, the high levels of net migration into the area over the last 14 years (which I talked about in the previous articles) and the higher predominance of single person households … this can only mean one thing … a huge increase in the need for housing in Liverpool.

Again, in a previous article a while back, I said more and more people are having children as tenants because they feel safe in rented accommodation.  Renting is becoming a choice for Liverpool people.

The planners and Politian’s of our local authority, central Government and people as a whole need to recognise that with individuals living longer, people having more children and whilst divorce rates have dropped recently, they are still at a relatively high level (meaning one household becomes two households) … demand for property is simply outstripping supply.

The simple fact is more Liverpool properties need to be built

… be that for buying or renting.

Only 1.1% of the Country is built on by houses.  Now I am not suggesting we build tower blocks in the middle of the Cotswolds, but the obsession of not building on any green belt land should be carefully re-considered.

Yes, we need to build on brownfield sites first, but there aren’t hundreds of acres of brownfield sites in Liverpool, and what brownfield sites there are, building on them can only work with complementary public investment.  Many such sites are contaminated and aren’t financially viable to develop, so unless the Government put their hand in their pocket, they will never be built on.

I am not saying we should crudely go ‘hell for leather’ building on our Green Belt, but we need a new approach to enable some parts of the countryside to be regarded more positively by local authorities, politicians and communities and allow considered and empathetic development. Society in the UK needs to look at the green belts outside their leisure and visual appeal, and assess how they can help to shape the way we live in the most even-handed way.  Interesting times!

For more thoughts on the Liverpool Property market – visit the Liverpool Property Blog www.liverpoolpropertyblog.com

15 May

Fordlea Road, West Derby, Liverpool, L12 – 7% Gross Yield

I’ve spotted this very nice two bedroom mid town house located in West Derby offering a gross yield of 7%.

The property comes with a tenant who is currently paying £500 per month and by looking at the photos of the property, they are treating the property as if it was their own as they are keeping it to a very good standard. The property is available to buy for £87,500
I’ve had plenty of dealings with these type of houses and I’m aware that this property would have been a three bedroom house but the master and third bedroom has been merged to make one large master bedroom. In the future, this could be returned back to a three bedroom house to add some value to it.

The demand in West Derby for renting and buying remains very high due to the lack of stock, great schools, amenities and excellent communication routes.

To view the property click here