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Buying frenzy highlights Liverpool as the UK’s favourite residential investment hotspot
April 25, 2016Article by Charlotte Ashton
The buying frenzy brought on by the April 2016 stamp duty changes has highlighted Liverpool as the country’s most sought-after destination. Prices in March 2016 rose faster in Liverpool than anywhere else in the UK, as buy-to-let landlords sought to snap up properties before the stamp duty changes came into effect.
The national picture
Across the UK, residential real estate sales rocketed during March. HMRC data showed that property sales were up 77% on March 2015, with 161,990 sales of £40,000 or more during the month: the highest monthly sales number since June 2006. Buyers were rushing to beat the 1 April 2016 increase of 3% on stamp duty for additional homes. The distortion to the market resulted in the highest quarterly rise in prices in UK cities in 12 years.
Figures from the Council of Mortgage Lenders backed up the sharp increase in sales, showing that gross lending was up by 43% in March 2016 compared with the month before, and up 59% compared with March 2015.
Liverpool comes out on top
Prices in Liverpool rose faster than in any other UK city, according to figures from Hometrack, which put the increase at 4.1% for Q1 2016. Ray Withers, CEO of specialist property investment company Property Frontiers, comments,
“The figures from Hometrack and HMRC certainly reflect our local experience of the local market in Liverpool so far this year. There are now only five units left at our city centre Parker Street Residences property – demand has been huge.”
Parker Street Residences offers studio and one bedroom apartments in the iconic former Reeces Ballroom in Liverpool city centre. The urban grandeur of the exterior is matched by luxurious interiors, with stylish, open plan layouts that are perfect for attracting professional tenants. Investment is from £69,950 (cash only studio price) with yields of 8% NET and the option of assurance for five years.
The pull of the city
Professionals and their families are increasingly feeling the pull of the city when it comes to Liverpool, hence buy-to-let investors flocking to meet demand for premium rental apartments. Rental prices have risen by 3.46% over the past year, according to City Residential. At the same time, private investment in Liverpool developments such as Parker Street Residences has surged – so much so that the city is vying for position with Manchester as head of the Northern Powerhouse initiative.
“Liverpool is definitely the place to be when it comes to real estate investment right now,” concludes Property Frontiers’ Ray Withers. “The dynamism and drive in the city are fantastic – there’s a real feeling that this is where the future’s at.”