New analysis from City Residential reveals residential rents in Liverpool city centre rising by up to 12% as LBN research finds almost 100% occupancy in waterfront apartments. Tony McDonough reports
Surging demand for city centre apartments in Liverpool is pushing up annual rents by between 10% and 12%, new research reveals.
In its quarterly update on the city’s residential market, City Residential says that following several years of low rental inflation in Liverpool, rates were now soaring with “no letup in demand” from tenants.
These rises are well above UK averages. According to the Office for National Statistics, average private rents in England increased by 5.1% in the 12 months to June 2023.
LBN also contacted building owners in the waterfront Liverpool Waters development. There are currently 1,158 apartments across seven buildings in Princes Dock and Central Docks. Occupancy levels are currently more than 95%.
There are three more residential buildings under construction in Liverpool Waters. The £50m Patagonia Place in Princes Dock will offer 278 apartments in a 31-storey scheme. Aquintania and Mauretania in Central Docks will add a further 263 dwellings.
In his report, City Residential managing director Alan Bevan says that once they have secured an apartment, tenants are less willing to move. And most, he said, are paying their rent on time.
He said: “While there are some areas and price ranges that are performing better than others, it is good news for landlords but less so for tenants. There appears to be no letup in demand nor the willingness (though necessary) to pay the higher rent.
“In addition to the strong demand for rental properties the majority of tenants are willing to stay in their properties for longer, thereby ensuring that the landlord enjoys minimum voids and costs during the crossover of tenancies.
“Arrears are also close to all-time lows despite the affordability challenges that are apparent in the UK.
“Tenants are fully aware of the need to ensure prompt and continual payments in a market where a move to another property would almost certainly come with a substantial increase in the monthly rent.”
However, Alan also reports the trend for landlords looking to dispose of their properties is also continuing.
He added: “Although rents have risen rapidly, they have been closely matched by the increase in mortgage payments, thereby ensuring that those landlords with finance on their properties are not that much better off.
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“With prices having stopped rising some landlords have decided that this is the ideal time to sell.
“On the flip side however, those landlords who can buy cash or have no debt can take advantage of the rise in rents on their current portfolio and look forward to the possibility/likelihood of rents outpacing general inflation.
“They are also able to take advantage to increase their portfolios after the fall in capital prices that we have seen and any landlords who are selling.”