27 Nov 2018
Ripple effect in property market reaches Liverpool and Leeds
Extensive regeneration projects in the northern powerhouse Liverpool are some of the visible developments making the city a global economic centre. The projects include the £5.6 billion worth Liverpool waters project where the regeneration of riverside and docklands will connect the city to other areas and it will also provide a range of economic benefits to the leisure and commercial sector. The project will provide at least 37,000 jobs to the city workers and there are also plans to build residential districts in the city such as the planned 44 storey residential skyscraper hosting 9,000 apartments.
The buy-to-lets will be constructed across 5 purpose built homes and developments will make the city a hotspot for tourism. There are other developments such as constructions of hotels, restaurants, bars and other retail structures, which can draw visitors from abroad into the city.
The Maritime Commercial Buildings on 315,000 sq. m. area is already marked for development where Liverpool waters is the linchpin for regeneration and also, cruise liner terminals are expected to be constructed.
All the nearby cities are connected across Liverpool, through the extensive infrastructure, and projected developments on vehicular and pedestrian roads. Anfields is undergoing regeneration where the Football Club and high end luxury accommodations are being built.
Affordability reduces due to ripple effect
Office figures by Attic Self Storage finds the number of vacant properties in the country increased in the last few years, at the same time as, the percentage of homelessness increased. Some of the highest proportion of vacant homes can be found in counties Cumbria and Lancashire, conversely, high occupancy rate can be found in Scilly and Corby, having 99 per cent of occupancy.
Affordability has been a key factor. Research finds when the properties in a region become expensive, people who have traditionally bought in the area are priced out and they need to start looking further afield. Those accessible properties can become expensive if the demand in new regions grows. Properties continue to price out depending on ripple effect, which can spread across regions.
London ripples to South East and other regions
The rise in price of London properties was shored up by the inflow from oversea investors who found it a safe haven for investment. The ripple was visible in the South East. Liverpool and Manchester underwent the ripple effect, where prices soared in Manchester. Manchester got one of the highest overseas investments in the year 2016 and the average house price is now around £158,800 with an average yield of 5.5 per cent. Investors believe Liverpool may be the next location to see a boom due to this.
On an average, Liverpool price are at £130,677 and the rental yield is up to 5.05 per cent. With the steady growth of student population, the city will soon become a student accommodation hub with growing rental yield up to 8 per cent. Leeds is also attracting foreign investment due to growth in business scene and inflow of young professionals who want to live close to the city centre.
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