Liverpool Property Prices

The Hometrack index suggests property prices in Liverpool grew at 7.5 per cent y-o-y to August. The other cities where the rates were higher are Glasgow, 7.2 per cent and Nottingham, 6.9 per cent. These were the most affordable regions where the average price of homes reached 2007. 

The growth in oil prices, sterling volatility, and Brexit impact led to volatility in home prices. In addition, increasing borrowing costs and higher mortgage and interest rates made it difficult for buyers to pay for housing. The reports by Hometrack claim people need to earn 24 per cent more than they did three years ago to pay for higher home prices in cities such as Manchester and Bristol.

In London, first-time purchasers must save £84,250 to get home. The calculation was based on repayment mortgage for the 30-year term and borrowing less than four times the income, where about 30 per cent is spent on the mortgage.

Gateway Cities

Some regional cities are popular with foreign investors. For example, Dubai investor Select Group acquired property at Reach in Liverpool, the Echo building, for an undisclosed sum. They made the deal via Savills and Paradigm Property Management. 

The group said the city is expected to deliver long-term growth. Barings Real Estate acquired 240 unit properties at Queens Dock in Liverpool for approx. $60 million. The company's MD, Darren Hutchinson, said the transaction provides a well-located riverside asset. 

The company plans to expand in multi-family sections in other global cities. It plans to increase logistics, student accommodation and mixed-use projects. The Chief Investment Officer Moorfield said they invested in two properties in Manchester and one in Newcastle.

Scope for First-Time Buyers

In the UK, millennials are looking for a buy-to-rent option in cities where they do not need to spend longer commuting. For example, a two-bedroom flat in Hong Kong can cost up to £1,280,000 (according to research on 91 cities by the website Finder listing).  

London was the second typically costly after Hong Kong, with an expected cost of £788,000 per unit. The UK was placed in 16th place where the median cost of a 2-bedroom flat was £227,000. Manchester's average price is £144,000, and as per data, buyers can purchase five apartments in Manchester at the price of one flat in London.  

It makes Manchester appropriate for first-time buyers seeking low-cost investment in the UK property market. Similarly, the average price of a two-bedroom flat in Liverpool was £294,000.

The Midlands and Yorkshire are rated some of the best, in terms of value, per Manning Stainton data research. In addition, cities such as Bradford, Leeds, York, Nottingham, and Leicester are well priced. 

For first-time buyers, the northern city of Bradford offers an average price of £133 per square foot, Belfast's average rate is £140 per square foot and Liverpool's £162 square foot. As a result, many first-time buyers are relocating to other cities as the house prices are six times higher in the capital city compared to regional cities.

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