Latest quarterly update from City Residential says investors were not deterred by the fallout from the stalled project and remain keen to purchase ‘high end’ properties in the city. Tony McDonough reports
Outside investors are not being deterred by the collapse of Liverpool’s New Chinatown development, a new report claims.
A number of Chinese investors have lost millions of pounds after ploughing money into the stalled city centre project and there were fears the fallout would damage Liverpool’s reputation.
However, the latest residential market update, published quarterly by leading local agency City Residential, says: “The ‘fallout’ from the issues over New Chinatown (and other stalled schemes) does not appear to have damaged the reputation of the city as a place to invest at the present time although this may change should any more issues arise.”
The report says Liverpool is continuing to attract wealthier investors or owner-occupiers who are looking to purchases homes at the upper end of the market – but at the moment the market is not delivering.
It added: “(There is an) increase in supply of investor stock being delivered across the city but predominately at the lower/cheaper end of the market and not impacting on supply/demand as yet.
“City is continuing to attract wealthier investors/buyers who are looking for ‘better quality’ schemes/apartments that are in short supply/not being delivered at present.
“Local investors continuing to focus on the lower priced/affordable end of the market where the yields are higher and the £/sq ft prices are lower/more affordable.”
City Residential also says new rules regarding the finance of landlord portfolio lending (whereby the lender has to take into account the whole portfolio rather than just an individual property) is expected to impact some landlords but “we are yet to see this become an issue”.
And it adds that the announcement just before Christmas that the Government proposes to ban ground rents on new leasehold properties “may have huge significance on the market once this legislation is passed”.