After years of sharp rises UK house prices are showing signs of cooling but, according to law firm GAD, the Liverpool market remains ‘bouyant’ thanks to relative affordability. Tony McDonough reports

In the last few years UK house prices have grown aggressively out of proportion to the inflation rate creating a barrier for many people wanting to get on the property ladder.

However, while Liverpool has not been immune to these rises, homes in the region remain relatively affordable compared to the rest of the country. This, says Liverpool law firm GAD, means the market in the city is still buoyant while the national market cools.

Average cost of a home in England, according to the Office for National Statistics (ONS), is £293,000. However, the annual rise is just 1.8%. This, according to some experts, indicates we are at the top or close to the top of the price cycle.

In contrast Liverpool has seen a 4.8% rise year-on-year with the figure standing at a much more affordable £185,000. The figure for the Liverpool city region as a whole – including Liverpool, Wirral, Sefton, Knowsley, St Helens and Halton – is up 3.4% to almost £220,000.

First-time buyers in the city are paying an average of £170,000, keeping starter homes accessible, the ONS says. Average monthly rents, partly driven by strong demand for city centre living, are up 5.9% to £905.

“At the moment Liverpool is really bucking the trend,” Lucy Wilde , senior solicitor in GADs residential property team told LBN. “That’s reflected in what we are seeing through our workflow. There remains a strong demand among buyers in Liverpool.

“Of course that is not to say Liverpool is immune to the housing affordability crisis across the country. Buying a house is certainly a lot more expensive than it was a few years ago. But, at the moment, Liverpool is staying just on the right side of affordability.

“There are also big plans to build thousands of more homes in Liverpool. The proposed Mayoral Development Corporation is looking to build more than 17,000 new homes around the waterfront alone. We could even be at the start of a boom cycle in the city.

“Beyond Liverpool, in places such as Wirral for example, there also remains a strong appetite even though prices are higher. In locations such as Bebington houses are being snapped up almost as soon as they come onto the market.”

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Breaking down the ONS Liverpool figures to property type, detached home prices average £389,000 while that figure falls to £234,000 for semi-detached and £175,000 for terraced homes. Average for flats or maisonettes is £127,000.

Lucy added: “It will be interesting to keep an eye on the rental market. That is also seeing annual rises in rents but the Renters Rights Act, which we have also spoken about recently, could alter the dynamic over the coming months and years.”