Ripple Effect in Property Market Reaches Liverpool and Leeds

Extensive regeneration projects in the northern powerhouse, Liverpool, make the city a global economic centre where the projects include the £5.6 billion worth of Liverpool waters, where the regeneration of riverside and Docklands will connect the city to other areas and provide a range of economic benefits to the leisure and commercial sectors.  

The project will provide at least 37,000 jobs to the city workers, and there are also plans to build districts in the city, such as the planned 44 stories skyscraper hosting 9,000 apartments. 

The buy-to-lets will be constructed across five purpose-built homes, and developments will make the city a hotspot for tourism. In addition, other developments, such as the construction of hotels, restaurants, bars and other retail structures, can draw visitors from abroad into the city. 

The Maritime Commercial Buildings on a 315,000 sq. m. area is already marked for development. Liverpool waters are the linchpin for regeneration, and 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. In addition, Anfield is undergoing regeneration where the Football Club and high-end luxury accommodations are being built. 

Affordability Reduces Due to The Ripple Effect

Office figures by Attic Self Storage find the number of vacant properties in the country increased in the last few years, at the same time as the percentage of homelessness increased. It found counties like Cumbria and Lancashire had the highest number of vacant homes; conversely, a high occupancy rate can be found in Scilly and Corby, having 99 per cent of occupancy.  

Affordability has been a key factor. Research finds that when a region's property becomes expensive, people who have traditionally bought in the area are priced out, so they need to look further outside. 

An affordable property can become expensive if the demand in regions grows. It is because properties continue to price out depending on the ripple effect, which can spread across regions with the growth of demand in buy-to-let in the UK.

London Ripples to South East and Other Regions

The rise in the price of London property was shored up by the inflow from overseas investors who found it a 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 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 average, the Liverpool price is at £130,677, and the rental yield is up to 5.05 per cent. With the steady student population growth, the city will soon become a student accommodation hub with a growing rental yield of up to 8 per cent. 

Leeds is also attracting foreign investment due to growth in the business scene and the inflow of young professionals who want to live close to the city centre. 

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