Steep Liverpool house price rise being ‘driven by property developers’
House prices in Liverpool have risen sharply in just a single year.
Research from the Property Buying Company, a property consultant based near Leeds, has shown that the average price of a property in Liverpool has risen from around £160,000 to £175,000 in a single year. The figures, taken from the government’s house price index, represent a 10.4% rise in house prices.
This news comes to light as first time buyers across the whole of the North West, including Merseyside, are shelling out over £40,000 more for their first homes than they would’ve five years ago. Common first homes – which are often considered more financially viable and therefore perfect for a first home – such as terraced houses now cost over 35% more on average than they did half a decade ago, according to research by the Direct line group.
READ MORE:Demand for rents doubles in town as people ‘pushed out’ of Liverpool
Inflation has been touted as one of the reasons behind the rising house prices and the increasing difficulty of first time buyers getting their foot on the property ladder. But the story doesn’t end there.
A spokesperson for Acorn Liverpool, a union which specialises in housing disputes and community issues, told the ECHO that property developers in Liverpool are driving the price-rise by buying up property, such as these cheaper ‘first time’ homes, to develop and then rent out.
They said: “What we find is that [the rise is] largely being driven by property developers.
“The properties that people would’ve expected to get on the ladder with, like terraced houses around areas like Picton, Wavertree, or even Anfield, which were between £70,000 and £130,000 pre-pandemic, are being largely bought-up by property developers, with many being turned into HMOs [houses with multiple occupants]
“For us, one of the things we’ve seen is that the cost of living is rising so much that even the thought of being able to get on the property ladder is so far away for most people. It’s not going to be attainable so people are often just treading water and deciding to rent.
“You see that compromise with people looking to buy houses too. People who are looking to get a three bed are having to downsize to a two bed when they’re looking to buy because the prices have gone up so much, particularly in the areas in the north of the city and the more condensed peripheral areas around the city centre.
“It affects people in every way possible. Your house is the centre of your entire world.
“Without a secure and stable home [it’s harder to] hold down a job, and your mental and physical health is affected.”