The property market is showing no sign of slowing down with yet another house price growth in January 2022.
According to the Office for National Statistics, the average UK house price in January was £24,000 higher than a year earlier, at £274,000. There has been a 10% increase on average across the country, however in the North West the growth is even higher at 11.1%.
In the North West average is now at £212,920, according to Halifax. While Rightmove’s sales data puts Liverpool’s property average at £201,680 over the last year.
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In response to the latest hike in house prices, local property experts have shared their insights on what you can expect if you’re searching for a home in Merseyside, particularly if you’re a first time buyer.
Demand has increased but supply is down
Craig Thompson, managing director at North Wall, in Maghull, told the ECHO his estate agency covers Maghull, Lydiate, Kirkby areas, as well as Formby and Speke. He said that demand is high in these areas with supply almost 50% down on this time last year in Maghull specifically.
However, Craig said that there are other areas in Merseyside where ‘savvy buyers’ can still buy at a good price. He said: "This supply and demand issue is part of what pushes prices up, but it’s not the whole picture.
"Low interest rates and easy access to borrowing have encouraged buyers into the market, but these conditions can’t last forever - especially with inflation increasing the way it is - interest rates will go up, and likely as the cost of living increases kicks in. This will be part of what causes this current bubble to burst, but I still think there’s a bit of growth left yet."
‘On the face of it, rising prices are bad news for first time buyers’
Craig said that while rising prices are bad news for first time buyers, lower interest rates have meant it may be cheaper to buy due to the cost of borrowing. He said all these impacts have been brought on by the coronavirus pandemic, he added: “It’s not just demand that has increased - buyers requirements have changed with it - increased living and outdoor space is higher up the list than transport links in the post-lockdown world.
"Increased demand means that sometimes buyers are blinded by the risk of losing out and get into bidding wars - this makes it difficult for first time buyers with small deposits, as those with larger deposits are in a better position and can even overpay, choosing to ’top-up' the deposit if their lender doesn’t agree with the price they’ve agreed to pay."
Impact of investors and landlords
In some of the more affordable areas of Liverpool, buyers are also having to compete with investors and landlords who are looking to make income. According to Craig, some Liverpool postcodes are amongst the slowest in the country to recover from the 2008 crash, making them perfect ‘investment’ areas.
He said: "The other thing to factor in with the Liverpool market is the hangover from 2008 and the impact of investors and landlords. They’re among some of the poorest wards in the city, and growth has been partly stimulated by increased activity from investors looking to cash in on low cost of entry, strong rental income and potential for capital growth."
This is something that Liam Watts, marketing advisor from Kuavo estate agency in Maghull, echoed, he said: "In 2022, we are firmly within a ‘seller’s market’ meaning property prices are being driven by the high volume of buyers in comparison to homes available. You are not only in competition with people in your same position, you are also in competition with the influx of investors we have seen in recent years from both within the city as well as the growing number of London-centric investors that are looking for more favourable returns."
Houses are sold within 24 hours of reaching market
Liverpool estate agent Adam Sutton said that in his ten years of working in property he has "never seen the housing market in such high demand". He previously told the ECHO: “Currently it’s completely a seller's market with houses selling before they even reach the open market.”
A number of homes listed with Adam Sutton have sold within 24 hours of reaching the market. Adam said: "I think when the first lockdown hit I was really worried thinking nobody is going to want to move and have people coming into other people's homes while a pandemic is going on but it’s been the complete opposite which as a business owner has been a positive for us especially as we only launched just before the first lockdown."
He added: "The market is bound to level off and I know I have said this before but if moving is on your agenda there is no time like the present, the amount of buyers looking now since before the pandemic has risen by 113%.
"While the amount of houses being listed now is down 40% so as you can imagine in these situations anybody who does wish to sell it's very likely you will have up to 10 people fighting to buy. Which as a seller is fantastic but my heart does go out to the buyers that keep missing out. I need to come up with a new phrase. I keep finding myself repeating ‘what will be will be’ to disappointed buyers."
First time buyers will have difficulty making offers in certain areas
Donna Lewis, senior property partner at Purplebricks told the ECHO that the first couple of months in 2022 has seen continued high levels of offers on the limited properties available. Multiple people putting offers in on the same house has led to inflated prices and the selling price often being more than the asking price.
Donna said: "The average house price across Liverpool is approximately £198,000. Like most towns and cities, some areas will be more desirable than others with a higher percentage of buyers wanting to secure these properties.
"These areas would include Crosby, Maghull, Aigburth, West Derby, Mossley Hill, and Childwall. The average house prices in these particular postcodes will be a lot higher than the average house price calculated across Liverpool as a whole, meaning that it can be more difficult for first time buyers to offer on these properties."
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