Liverpool property market outlook 2017: Experts’ view
2016 was a surprising year by any standard and the region’s property market is expected to feel the repercussions of such an eventful 12 months as it moves forward. So what does 2017 have in store? Your Move brings together a panel of experts from Liverpool’s residential property sector to reflect on the start of the year and finds out their expectations for the months ahead based on these early indications.
Curated by Matthew Smith
managing director – City Residential
2017 has started off relatively strongly across most of the residential sectors we deal with and is currently slightly ahead of last year on a like for like basis.
The city continues to grow its leisure, culture and retail offerings, thereby attracting an increasing number of potential future buyers.
We would therefore expect the market to continue to perform well, although there must be an element of caution given the potential political issues that may lie ahead such as Brexit, European elections, Trump economics and subsequent volatile currency swings.
On the flip side, many of these political headwinds could well result in unexpected positive effects on the market such as a continual fall in sterling making Liverpool (and indeed all UK property) more financially attractive than pre Brexit.
area lettings manager – Abode
2016 was most definitely an eventful year and the significant influences on the housing market have been noticeably bolder.
In April when a higher rate of duty on second homes was introduced, many investors thought twice about whether it was a good time to buy, prompting some landlords to review their portfolio and/or their future in property.
However, the changes have brought more business from landlords out of the area and new investors who see our city as affordable for buy-to-let investments looking to build more profitable portfolios in the city. Their appetite has far from diminished and they continue to eagerly invest in Liverpool’s property market potential.
Brexit has definitely generated uncertainty but it has also boosted the rental market.
regional sales and marketing director – Countryside
It’s certainly been an interesting year for housing in Liverpool, with the EU referendum feeding heavily into the uncertainty that has been linked with the UK’s property market.
What’s interesting is that the number of new houses being built across the UK has actually increased over the last 12 months and there is confidence amongst property developers that the North West will continue to outperform as a region.
In Liverpool countless young buyers were eager to secure new homes and schemes such as Help to Buy have gone a long way in encouraging affordability. This is expected to lead to a thriving market for new-build homes in the city during 2017.
sales manager – Riverside Home Ownership
We expect 2017 will see the focus on home ownership continue following the recent government announcements on a range of housing initiatives.
People’s changing households, working patterns and a growing older generation all mean house hunters are increasingly looking at different types of property and tenure.
Home ownership is certainly on the social housing agenda. The sector is awaiting news of a further regional pilot of the Voluntary Right to Buy for housing association tenants, as announced in the Chancellor’s Autumn Statement.
Likely to run over 2017/2018, housing providers will be taking a keen interest in the details and criteria when they become available. The pilot will test the parameters of the scheme which is an extension of the Right to Buy held by tenants of local authorities.
partner – MSB Solicitors
There is no shortage of mortgage availability for applicants with good credit history and we see a big increase in gifted deposits from parents to allow first-time buyers to get on the ladder.
Despite a predicted rise in house prices in the first half of the year, falling interest rates could certainly help ease pressures for those looking to get onto the property ladder this year.
What’s more, there are some heartening messages from the government in terms of the supply of affordable homes and Liverpool seems set to benefit from planned initiatives.
Additionally, the city’s developing service industry means we can hope to see some benefit from the growing global links that Peel’s developments will bring.
We still don’t know exactly what the implications of Brexit will be, but history shows that housing as a sector is incredibly resilient and has already recovered and moved on from the biggest banking crisis for 100 years.
We can therefore say with a degree of certainty that Liverpool’s property market will remain vibrant.
partner – John Kerr Chartered Accountants
I think that buy-to-let landlords are in for a bumpy ride this year.
The stamp duty changes last April, much tougher affordability checks by lenders and withdrawal of wear and tear relief and mortgage interest relief will have a significant dampening effect on the market and we are already starting to see highly geared landlords, whose portfolios may well become cash negative, start to look for an exit route.
This could be an opportunity for well capitalised landlords to pick up bargains.
Overall though, demand for property continues to exceed supply so I think we will continue to see increases in residential property values overall, albeit not at particularly exciting rates of growth.