31 Aug

Supply and Demand Issues mean Liverpool Property Values Rise by 3.5% in the Last 12 Months

The most recent set of data from the Land Registry has stated that property values in Liverpool and the surrounding area were 3.55% higher than 12 months ago and 10.06% higher than January 2015.

Despite the uncertainty over Brexit as Liverpool (and most of the UK’s) property values continue their medium and long-term upward trajectory. As economics is about supply and demand, the story behind the Liverpool property market can also be seen from those two sides of the story.

Looking at the supply issues of the Liverpool property market, putting aside the short-term dearth of property on the market, one of the main reasons of this sustained house price growth has been down to of the lack of building new homes.

The draconian planning laws, that over the last 70 years (starting with The Town and Country Planning Act 1947) has meant the amount of land built on in the UK today, only stands at 1.8% (no, that’s not a typo – its one point eight percent) and that is made up of 1.1% with residential property and 0.7% for commercial property. Now I am not advocating building modern ugly carbuncles and high-rise flats in the Cotswolds, nor blot the landscape with the building of massive out of place ugly 1,000 home housing estates around the beautiful countryside of such villages.

The facts are, with the restrictions on building homes for people to live in, because of these 70-year-old restrictive planning regulations, homes that the youngsters of Liverpool badly need, aren’t being built. Adding fuel to that fire, there has been a large dose of nimby-ism and landowners deliberately sitting on land, which has kept land values high and from that keeps house prices high.

Looking at the demand side of the equation, one might have thought property values would drop because of Brexit and buyers uncertainty. However, certain commenters now believe property values might rise because of Brexit. Many people are risk adverse, especially with their hard-earned savings. The stock market is at an all-time high (ready to pop again?) and many people don’t trust the money markets. The thing about property is its tangible, bricks and mortar, you can touch it and you can easily understand it.

The Brits have historically put their faith in bricks and mortar, which they expect to rise in value, in numerical terms, at least. Nationally, the value of property has risen by 635.4% since 1984 whilst the stock market has risen by a very similar 593.1%. However, the stock market has had a roller coaster of a ride to get to those figures. For example, in the dot com bubble of the early 2000’s, the FTSE100 dropped 126.3% in two years and it dropped again by 44.6% in 9 months in 2007… the worst drop Liverpool saw in property values was just 17.99% in the 2008/9 credit crunch.

Despite the slowdown in the rate of annual property value growth in Liverpool to the current 3.55%, from the heady days of 6.55% annual increases seen in late 2014, it can be argued the headline rate of Liverpool property price inflation is holding up well, especially with the squeeze on real incomes, new taxation rules for landlords and the slight ambiguity around Brexit. With mortgage rates at an all-time low and tumbling unemployment, all these factors are largely continuing to help support property values in Liverpool (and the UK).

For more thoughts on the Liverpool Property Market, please visit the Liverpool Property Market Blog www.liverpoolpropertyblog.com

30 Aug

National Bank Building, Fenwick Street, L2 7NE – One Bedroom Apartment – 11.9% Gross Yield!

A one bedroom property on the 5th floor of the National Bank Building has just made its way into my property search! The property has a fantastic asking price of £60,000, which is an unbelievable price for a property in this prime location in the heart of the business district in Liverpool.

Not only is this a great asking price, I also feel the potential for capital growth in this property will be excellent as the City continues to grow with new business opening constantly!

The apartment is currently let at £7,140 per annum. This is bringing back a very high gross yield of 11.9%!! Who could resist these figures?!

From the look of the pictures, it appears to be in fair condition, however I feel with a bit of freshening up there could be an increase in value for both the sale and the rental income of this property.

In my experience, properties in the business district always proves popular with tenants, as it allows City living, convenience of local amenities and ease of transport, without the noise and rush of Liverpool One. This particular development is just set back from Water Street and just a stone throw away from Castle Street where you will find plenty of bars and restaurants. Liverpool One is within walking distance, and Liverpool’s picturesque waterfront is just minutes away. Click Here to see this property on the map.

I also notice this property has a very long lease length of 982 years remaining, and all heating bills are included in the service charges, which is excellent for a hassle free investment!

I have had a look at previous sold prices in Fenwick Street, and compared to other 1 bed, this one appears very low.

Click Here to view the previous sold prices.

Click Here to view the property

If you would like any further advice on this property, development or any other properties, then please do not hesitate to contact me on adamr@liverpoolpropertyblog.com

24 Aug

Bingley Road, L4 2TB – Three Bedroom House With Tenant in Situ – 7% Yield!

I have stumbled across this immaculate three bedroom house, located in the popular L4 area. This property is located just off Priory Road, and minutes away from Breck Road where you will find local amenities including supermarkets, restaurants and bars.

The property is on the market for £87,500, which is an excellent price considering the size, location and current condition of the property.

This property is offered for sale only for investors, with a long standing tenant in situ who has maintained and decorated the property to a very high standard. It has a bright lounge, through diner and a nice clean kitchen, 3 large bedrooms and a shower room.


It is currently let to a lovely and reliable tenant who is paying £5,940 per annum. This is bringing back a gross yield of 7% based on an offer of asking price, which is an excellent return for a property in Anfield.

Although there is a tenant in situ who intends on staying long term, should she ever move out I do

 not feel this property would ever be empty for long! I would expect this property to attract families due to the ease of the local amenities nearby, the generously proportioned living space and the high volume of nearby schools, or it could even be used for Air B&B due to its close proximity to Anfield Stadium!

Click Here to see sold prices in the area

Click Here to view the property


If you would like any further advice on this property, development or any other properties, then please do not hesitate to contact me on adamr@liverpoolpropertyblog.com

24 Aug

Liverpool Homeowners and their £3.79 billion Debt

Over the last 12 months, the UK has decided to leave the EU, have a General Election with a result that didn’t go to plan for Mrs May and to add insult to injury, our American cousins elected Donald Trump as the 45th President of the United States. It could be said this should have caused some unnecessary unpredictability into the UK property market.

The reality is that the housing and mortgage market (for the time being) has shown a noteworthy resilience. Indeed on the back of the Monetary Policy pursued by the Bank of England there has been a notable improvement of macro-economic conditions! In July for example it was announced that we are witness to the lowest levels of unemployment for nearly 50 years. Furthermore, despite the UK construction industry building 21% more properties than same time the previous year, there has still been a disproportionate increase in demand for housing, particularly in the most thriving areas of the Country. Repossessions too are also at an all-time low at 3,985 for the last Quarter (Q1 2017) from a high of 29,145 in Q1 2009. All these things have resulted in…

Property values in Liverpool according to the Land Registry are 3.55% higher than a year ago

So, what does all this mean for the homeowners and landlords of Liverpool, especially in relation to property prices moving forward?

One vital bellwether of the property market (and property values) is the mortgage market. The UK mortgage market is worth £961,653,701,493 (that’s £961bn) and it representative of 13,314,512 mortgages (interestingly, the UK’s mortgage market is the largest in Europe in terms of amount lent per year and the total value of outstanding loans). Uncertainty causes banks to stop lending – look what happened in the credit crunch and that seriously affects property prices.

Roll the clock back to 2007, and nobody had heard of the term ‘credit crunch’, but now the expression has entered our everyday language.  It took a few months throughout the autumn of 2007, before the crunch started to hit the Liverpool property market, but in late 2007, and for the following year and half, Liverpool property values dropped each month like the notorious heavy lead balloon, meaning …

The credit crunch caused Liverpool property values to drop by 17.9%

Under the sustained pressure of the Credit Crunch, the Bank of England realised that the UK economy was stalling in the early autumn of 2008. Loan book lending (sub-prime phenomenon) in the US and across the world was the trigger for this pressure. In a bid to stimulate the British economy there were six successive interest rates drops between October 2008 and March 2009; this resulted in interest rates falling from 5% to 0.5%!

Thankfully, after a period of stagnation, the Liverpool property market started to recover slowly in 2011 as certainty returned to the economy as a whole and Liverpool property values really took off in 2013 as the economy sped upwards. Thankfully, the ‘fire’ was taken out of the property market in Spring 2015 (otherwise we could have had another boom and bust scenario like we had in the 1960’s, 70’s and 80’s), with new mortgage lending rules. Throughout 2016, we saw a return to more realistic and stable medium term property price growth. Interestingly, property prices recovered in Liverpool from the post Credit Crunch 2009 dip and are now 15.2% higher than they were in 2009.

Now, as we enter the summer of 2017, with the Conservatives having been re-elected on their slender majority, the Liverpool property market has recouped its composure and in fact, there has been some aggressive competition among mortgage lenders, which has driven mortgage rates down to record lows. This is good news for Liverpool homeowners and landlords, over the last few months a mortgage price war has broken out between lenders, with many slashing the rates on their deals to the lowest they have ever offered.  For example, last month, HSBC launched a 1.69% five-year fixed mortgage!

Interestingly, according to the Council of Mortgage Lenders, the level of mortgage lending had soared to an all-time high in the UK.

In the Liverpool postcodes of L1 to L19 if you added up everyone’s mortgage, it would total £3,791,726,135!

Since 1977, the average Bank of England interest rate has been 6.65%, making the current 323 year all time low rate of 0.25% very low indeed. Thankfully, the proportion of borrowers fixing their mortgage rate has gone from 31.52% in the autumn of 2012 to the current 59.3%. If you haven’t fixed – maybe you should follow the majority?

In my modest opinion, especially if things do get a little rocky and uncertainty seeps back in the coming years (and nobody knows what will happen on that front), one thing I know is for certain, interest rates can only go one way from their 300 year ultra 0.25% low level … and that is why I consider it important to highlight this to all the homeowners and landlords of Liverpool. Maybe, just maybe, you might want to consider taking some advice from a qualified mortgage adviser? There are plenty of them in Liverpool.

If you are interested in the Liverpool Property Market, you might learn something by visiting the blog. www.liverpoolpropertyblog.com