Commonwealth_ Liverpool has emerged as the leader in house price growth across England, recording a 3.5% increase over the past year, according to the latest monthly index from Zoopla. The increase puts the city at the top of the chart for price growth, surpassing Manchester, which followed closely with a 3.4% rise. Although Manchester had previously held the top spot for several months, Liverpool’s recent surge highlights the city’s growing appeal for both homebuyers and property investors.
Belfast experienced the highest property price growth in the UK, with an annual increase of 6.9%. The overall UK average house price growth stood at 1.9% in the year leading up to January. Northern Ireland, in particular, experienced an impressive 7.2% rise over the past year, reinforcing its position as a strong performer in the property market.
The North West of England continues to be a standout region, recording a 3% increase in house prices. Both Liverpool and Manchester have exceeded this regional average, and experts widely predict that these cities will maintain strong growth trajectories. In contrast, house prices in London and the South of England showed more modest increases, ranging from 1% to 1.2% over the past year. However, there are signs that London is gradually regaining momentum, with stronger growth levels compared to the previous year.
Liverpool: A Prime Destination for Property Investment
Liverpool has increasingly become a hotspot for property investment, offering a unique combination of affordable house prices and strong growth potential. For landlords, the city’s rental yields are well above the national average, further solidifying Liverpool as an attractive destination for those seeking long-term returns.
Recent research from Zoopla also identified Liverpool as the most affordable city in England for one- and two-bedroom properties, making it an appealing choice for single buyers and first-time homeowners. According to Zoopla’s data, the median value of a one- or two-bedroom home in Liverpool stands at £130,800. While this figure is slightly above the new stamp duty threshold of £125,000, set to take effect from April 1st, it remains considerably lower than property prices in many other parts of the UK.
With median gross monthly pay in Liverpool at £2,980 and average mortgage repayments around £540 per month, the annual value-to-earnings ratio sits at a reasonable 3.7. This affordability, combined with rising house prices, makes Liverpool an enticing prospect for property investors aiming to maximize their returns.
Market Trends and Expert Insights
As affordability challenges persist across the UK property market, it is anticipated that more affordable regions like Liverpool will continue to experience the strongest house price growth. This trend reflects a broader shift, as buyers increasingly look beyond London and the South East in search of better value for money.
Tom Bill, head of UK residential research at estate agency Knight Frank, highlighted this ongoing shift, stating, “The rest of the country is closing the gap with London as demand spreads beyond the capital due to affordability pressures. The gap will narrow rather than close, but we expect stronger house price growth in less expensive areas of the UK during the next several years. The push into more affordable areas will be reinforced by the flexibility more commuters have about how and where they live following the pandemic.”
Growing Confidence in the Housing Market
The UK housing market is showing signs of resilience, buoyed by robust earnings growth and an increase in sales activity. As mortgage rates are expected to decrease this year gradually, confidence among buyers is likely to grow, further stimulating the market. Richard Donnell, executive director of research at Zoopla, echoed this sentiment, stating, “The housing market is resilient, supported by faster growth in average earnings. There are the most homes for sale in seven years, which will keep price inflation in check.”
According to Zoopla’s latest report, sales activity across the UK housing market has picked up pace, with key indicators of market activity running 10–11% higher than the previous year. This uptick in housing activity mirrors broader economic trends, such as stronger retail sales and a noticeable rise in consumer confidence.
As Liverpool and Manchester continue to outperform regional and national averages, these cities remain prime destinations for property investment. With a combination of affordability, rising house prices, and strong rental yields, Liverpool, in particular, stands out as a city with exceptional growth potential.
If you’re interested in exploring property investment opportunities in Liverpool, Manchester, or other high-growth areas across the UK, now is the perfect time to get in touch and discover the exciting possibilities these dynamic cities have to offer.
