When it comes to booming house prices, more often than not the statistics will focus on what is happening in London and the South East. Much of this attention can be justified as these areas of the country have seen the most rampant growth in prices over the last few years. Hometrack recently proclaimed that selling your home in the capital took, on average, only 2.5 weeks, compared with Wales, Yorkshire and the East Midlands which stood at an average of seven weeks.
However, most other cities in the country are not too far behind when it comes to confidence in the property sector. Sheffield, Leeds and Manchester, to name but a few, have all seen extensive regeneration work which has reinvigorated the local housing market. Another city which has also experienced strong growth is Liverpool.
The city on the Mersey has many things going for it at the moment and these are helping to push the property market upwards. As well as government investment in the area, through schemes such as Pathfinder, there is plenty of private money being ploughed into the city. One factor which is also a source of pride among Liverpudlians is that 2008 will see the city share the title of European Capital of Culture with Stavanger of Norway.
Graham Hall, managing director of Real Mortgage Packaging, a GHL Group member, believes: “The award of the 2008 Capital of Culture undoubtedly exacerbated the effect of the general property boom in the early part of this decade and, consequently, Liverpool saw unusually high growth levels for a few years.”
Leap in property prices
According to figures from the Halifax, the decision to award Liverpool with the title of 2008 Capital of Culture coincided with a big leap in property prices. In 2002, the average property price in Liverpool was £80,721, having risen from £63,842 in 2000. However, after the decision was announced in 2003, prices jumped to £106,289 by the end of the year. This was followed by another year of phenomenal growth in 2004, where the average price reached £134,425.
There was then a phase of consolidation as prices in 2005 rose by an average of £2,000. Hall puts this down to ‘fears of the market overheating and supply of rental properties meeting, and possibly exceeding, demand’. But prices rose again in 2006 in a renewed period of growth; albeit less spectacularly but more steadily, as the city built towards 2008.
However, there were other factors drawing attention to the city. In 2004, the United Nations’ Educational, Scientific and Cultural Organization (UNESCO) designated Liverpool as a World Heritage site, while this year will see celebrations to mark the 800th anniversary of the establishment of Liverpool. Both, combined with the Capital of Culture label, have installed a vigour among Liverpudlians which has been reflected in the housing market.
Sharing the feel good factor
It isn’t just Liverpool which is feeling the benefits of a buoyant market. Surrounding areas are also benefiting from the feel good factor.
John Mawdsley, director at The Mortgage Partnership, comments: “In the Wirral it is very busy at the moment. There is especially a shortage at the top end of the market, with most estate agents in the area saying they have a list of potential buyers looking to spend over £1 million, but not enough houses to meet this demand.”
Hall agrees: “The robust market also seems to be replicated in the outlying areas of Liverpool, such as Formby and Wirral.” He also argues that the benefits are being felt as far away as Manchester.
“There is some symbiosis between Liverpool and Manchester. Manchester has benefited to some extent from the Capital of Culture award whereas Liverpool enjoyed some limited benefit from the Commonwealth games and now hopes to profit indirectly from the new super casino.”
However, it isn’t just titles and anniversaries which are improving Liverpool’s image as a place to live. Major infrastructure projects have given the city improved transport links, better services and more job opportunities. The Grosvenor Liverpool One development, a regeneration project aimed at supplying offices, leisure and hotel facilities, is the biggest of its kind under construction in Europe. Meanwhile, construction around the Princes Dock area continues in a similar vain, with commercial and residential construction aimed at regenerating the area.
As Mike Fry, director at Halton Insurance Services, comments: “You can tell by the amount of building work that is going on that there is a confidence in the market.”
Therefore, it seems it isn’t just the property prices which are going up on Merseyside and people will be wise not to immediately come to the conclusion there is a strict North/South divide when it comes to growing property markets.
