“Opportunities for Build to Rent?”
LIVERPOOL RESIDENTIAL UPDATE QUARTER 2 2019
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City Residential
City Residential is Liverpool’s award winning, premier residential agent specialising in city living in Liverpool and across the Northwest. In addition to having one of the largest residential teams in Liverpool we are also recognised as one of the leading northwest residential specialists with our consultancy services respected throughout the industry. Operating from Liverpool’s most prominent and modern showroom we offer a full range of residential services across the Merseyside and Greater Manchester regions: • Sales • New Build Sales/advice/consultancy • Lettings/Management • BTR (Build to Rent) advice/consultancy and management • Bulk Deals & Investment Properties • Land/Development sales and acquisitions
For further information contact Alan Bevan on 0151 231 6100 or 07970 498187 [email protected] www.cityresidential.co.uk
Park Central - Liverpool Waters Luxury Apartments for Sale
City Residential are delighted to offer for sale a range of apartments in the only residential development at Liverpool Waters currently available for sale. With Phase 1 now sold and complete this second phase comprises a total of 129 apartments
· Selection of 2 bedroom apartments · Close to Liverpool Business District and Princes Dock · Car parking available · Views across the proposed 16 acre Prospect Park at Central Waters · For sale from only £205,045
For further information 0151 231 6100 [email protected] ADVERTISEMENT RESIDENTIAL SALES Prices • HALIFAX – 2.4% increase over the quarter for the UK as a whole. • NATIONWIDE – 0.1% increase over the quarter for UK as a whole. • CITY RES – prices reasonably level during the quarter with studios again dragging down some growth elsewhere.
Market Activity • Market activity remained resilient despite the issues facing the market. Slightly weaker activity compared with the same period last year (see note below on Brexit). • Investment market (selling to local investors) remains subdued due to increased tax burden (the third reduction in tax relief has now been implemented with the passing of the new tax year on April 6 th 2019). • The lower end of the market (excluding studios which continue to struggle to sell) has seen increased activity levels this quarter as FTB’s/investors look for value. • Difficulties in progressing sales to completion with some down valuing continuing to occur in the city together with delays in leasehold legal issues.
Supply/demand • Increase in supply of investor stock being delivered across the city (predominately at the lower/cheaper end of the market) is continuing to have an effect on pricing/demand. • Definite and noticeable increase (over the same period last year) in supply of investor stock as properties become vacant (seasonal) and some landlords deciding to sell. • 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.
Tax/legislation/politics/finance • Continued uncertainty over the economy and more particularly Brexit appears to be convincing the Bank of England/Monetary Policy Committee to retain rates at 0.75% however recent speculation (July 3 rd 2019) hinting at a possible reduction by Dec 19. • Somewhat surprisingly Brexit/new Tory leadership election does not appear to have the pronounced negative affect on the market that some commentators had suggested it would have done. It appears that the type of buyer who is buying in the city centre is doing so irrespective of the likely outcome of Brexit/election. We are not convinced that a general election would also have such a subdued reaction!!
Sales Prices - Liverpool City Centre (AVERAGES) Built Price Changes Off Plan Off Plan (guaranteed yield) Apartment Type Sq Ft Price £/sq ft Quarter Annual Average £/sq ft Average £/sq ft Studio 275 £61,500 £224 -1.25% -3.25% £64,575 £235 £66,420 £242 Studio 325 £68,000 £209 -2.00% -3.85% £71,400 £220 £73,440 £226 1 bed 450 £108,000 £240 0.75% 2.35% £113,400 £252 £116,640 £259 1 bed 525 £123,500 £235 0.85% 2.35% £129,675 £247 £133,380 £254 2 bed 550 £140,000 £255 0.50% 2.45% £147,000 £267 £151,200 £275 2 bed 610 £146,500 £240 0.75% 3.00% £153,825 £252 £158,220 £259 2 bed 685 £168,000 £245 0.00% 2.65% £176,400 £258 £181,440 £265 2 bed 2 bath 775 £191,500 £247 0.00% 2.75% £201,075 £259 £206,820 £267 2 bed 2 bath 875 £221,500 £253 0.00% 2.65% £232,575 £266 £239,220 £273 2 bed penthouse 1000 £244,000 £244 0.00% 2.75% £256,200 £256 £263,520 £264 3 bed 1 bath 850 £212,000 £249 0.35% 2.50% £222,600 £262 £228,960 £269 3 bed 2 bath 975 £236,500 £243 0.00% 2.50% £248,325 £255 £255,420 £262 AVERAGES £172,583 £240 0.00% 1.57% £180,588 £252 £185,390 £260 The figures detailed above are based upon a sample of apartments (from 10 developments) in the city/docklands and the prices that would be achieved in today’s market conditions. They are not necessarily based on actual achieved prices (but use market evidence) as the sample size could be too low resulting in extreme variations in price. . . 27 Bridgewater Street, Baltic
Luxury Townhouses for Sale City Residential are delighted to offer for sale this stunning and unique development of just five townhouses located at the heart of Liverpool’s booming Baltic District.
· Selection of 3 and 4 bedroom townhouses · Located in the heart of Baltic close to Higson’s Brewery and Baltic Bakehouse, · Garages included on most units and extra car parking available · For sale from only £464,950
For further information 0151 231 6100 [email protected]
RESIDENTIAL SCHEMES for SALE 0151 231 6100 ------
PARK CENTRAL – LIVERPOOL WATERS
No of Apartments/houses: 129 Apartments
Type: 1 and 2 bed apartments
Address: Central Dock, Liverpool Waters, Liverpool
Prices From/To: From £205,045
Showhome/apartment: To be announced shortly
------
27 BRIDGEWATER STREET - BALTIC
No of Apartments/houses: 5 Houses
Type: 3 and 4 bed townhouses
Address: 27 Bridgewater Street, Baltic, L1 0AR
Prices From/To: From £464,950
Showhome: To be announced shortly ------
CHANCERY HOUSE
No of Apartments/houses: 37 apartments
Type: 2 and 3 bed apartments – conversion/new build
Address: Paradise Street, Liverpool, L1 3HE
Prices From: £0
Showhome/apartment: ALL NOW SOLD
NEW DEVELOPMENTS COMING SOON Register for details 0151 231 6100 [email protected]
ADVERTISEMENT Completions
City Centre Prices and Completions from ZOOPLA
Current average value £150,784 L1 Sales Price Paid Change 3 months 8 £98,768 £2,357 1.59% 6 months 44 £122,984 £724 0.48% 12 months 94 £136,257 £897 0.60%
Current average value £161,326 L2 Sales Price Paid Change 3 months 3 £135,908 £2,185 1.37%
6 months 14 £150,460 £111 0.07% 12 months 49 £165,534 -£456 -0.28% Current average value £189,430 L3 Sales Price Paid Change 3 months 15 £162,763 £3,254 1.75% 6 months 73 £170,339 £1,835 0.98% 12 months 200 £172,361 £2,201 1.18% Current average value £174,824 CITY CENTRE Sales Price Paid Change 3 months 26 £139,974 £2,599 1.57% 6 months 131 £152,309 £890 0.51% 12 months 343 £161,491 £881 0.50% The information above is taken from Zoopla sold house prices and whilst is accurately recorded may not actually represent all of the properties that have been registered during the quarter. The actual figure may be higher/lower than that shown as some sales are not always shown on Land Registry. The average pricing achieved may also be affected by low transaction levels
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RESIDENTIAL DEVELOPMENTS
FOR SALE/UNDER CONSTRUCTION
Kings Dock Mill Phase 2, Hurst Street, Baltic, L1 8DN Developer Yu Property Group Number of Apartments 204 Apartment Types 1,2 & 3 bed and townhouses Type of Sale Investor New Build/Conversion New Build Build Complete 2019 Comments/Updates Second phase of Kings Dock Mill scheme adjoining The Hilton in Baltic
The Residence, 8 Water Street, L2 0RD Developer Prospect Capital Number of Apartments 118 Apartment Types 1 and 2 bed Type of Sale Investor New Build/Conversion Conversion (and new build ext) Build Complete 2019 Comments/Updates Conversion of former office building close to Town Hall/Castle St
ART Apartments, Tabley St, Baltic L1 2HB Developer Baltic Cool/LAGP Number of Apartments 55 Apartment Types 1 and 2 bed Type of Sale TBC New Build/Conversion New Build Build Complete 2019 Comments/Updates 11 Storey scheme on vacant land adjoining Kings Dock Mill phase 2.
Ropemaker Place, 89-99 Renshaw Street, L1 2SP Developer Legacie Developments Number of Apartments 74 Apartment Types Studio, 1 and 2 bed Type of Sale Investor New Build/Conversion New Build Build Complete Summer 2019 Comments/Updates Adjacent to Unite student scheme and opposite St Luke’s Church.
FOR SALE/UNDER CONSTRUCTION
60 Old Hall Street. Liverpool, L3 9PP Developer Signature Living Number of Apartments 115 Apartment Types 1 and 2 bed Type of Sale Investor New Build/Conversion Conversion Build Complete Part complete/Summer 2019 Comments/Updates Refurbishment of the “ugly duckling” into residential scheme
Princes Suites, Dale Street, L2 2HT Developer Goodman Wells Number of Apartments 35 Apartment Types Studio, 1 and 2 bed Type of Sale Investor New Build/Conversion Conversion Build Complete Part complete/await news? Comments/Updates Refurbishment of former Princes Building on Dale Street.
27 Bridgewater Street , Baltic, Liverpool, L1 0AR Developer Hughes & Jones (Baltic) Ltd Number of Houses 5 House Types 3 and 4 bed houses Type of Sale Owner occupier/Investor New Build/Conversion New Build Build Complete Summer 2019 Comments/Updates Unique development of new townhouses in the heart of Baltic Triangle
Silkhouse Court, Tithebarn St, L2 2QW Developer Fortis/Signature Number of Apartments 193 Apartment Types Studio, 1, 2 and 3 bed Type of Sale Investor New Build/Conversion Conversion Build Complete Summer 2019 Comments/Updates Conversion of Silkhouse Court with good views from upper floors.
FOR SALE/UNDER CONSTRUCTION
Stanley Dock, Regent Road, Liverpool, L3 0AN Developer Harcourt Developments Number of Apartments 538 Apartment Types Studio, 1 and 2 bed Type of Sale TBC New Build/Conversion Conversion Build Complete 2019 onwards Comments/Updates Redevelopment of former Tobacco Warehouse at Stanley Dock.
Strand Plaza/Mersey House, The Strand, L2 7PX Developer Primesite Number of Apartments 122 Apartment Types 1, 2 and 3 bed Type of Sale Investor New Build/Conversion Conversion Build Complete Part complete/2019 Comments/Updates Conversion of former Mersey House overlooking The Strand/3 Graces.
The Eight Building, Glenville St, Baltic, L1 5JR Developer Iliad Number of Apartments 120 Apartment Types 1, 2 and 3 bed Type of Sale TBC New Build/Conversion New Build Build Complete 2020 Comments/Updates Follow up residential scheme to student scheme already built.
Aura, Low Hill, Liverpool L6 1AU Developer Elliot Group Number of Apartments 142 (residential units) Apartment Types Studio, 1 and 2 bed Type of Sale Investor New Build/Conversion New Build Build Complete 2020 Comments/Updates Part of large student scheme on site of former Erskine Industrial Estate
FOR SALE/UNDER CONSTRUCTION
Baltic House, Norfolk Street, Baltic Triangle, L1 0BL Developer Crossfield Exclusive Dev Ltd Number of Apartments 126 Apartment Types 1, 2 and 3 bed Type of Sale Investor New Build/Conversion New Build/restart scheme
Build Complete 2020/TBC Comments/Updates Stalled scheme bought by Crossfield Exclusive and back on site.
Parliament Residences (Phase 2), Baltic, L1 0AJ Developer AC Parl St 2 (Assetcorp) Number of Apartments 145 Apartment Types 1, 2 and 3 bed Type of Sale TBC New Build/Conversion New Build Build Complete Summer 2019 Comments/Updates Residential scheme completing the block of residential in this location
Fabric District Residences , Liverpool, L3 8HA Developer YPG No of Apartments 208 Apartment Types Studio apartments Type of Sale Investor New Build/Conversion New Build Build Complete 2020 Comments/Updates Located on Devon Street and spread over 9 floors
The Address, Ropewalks, L1 4JJ Developer Elliot Group Number of Apartments 200 Apartment Types Studio 1 and 2 beds Type of Sale Investor New Build/Conversion New Build Build Complete 2020 Comments/Updates Final piece of the Wolstenholme Square residential development
FOR SALE/UNDER CONSTRUCTION
Infinity, Lanyork Rd/Leeds Street, Liverpool, L3 6JB Developer Elliot Group Number of Apartments 1015 Apartment Types Studio, 1, 2 and 3 bed Type of Sale Investor/owner occupier New Build/Conversion New Build Build Complete TBC Comments/Updates Striking and ambitious new scheme with anticipated £250million GDV.
Park Central (Phase 2), Waterloo Rd, Liverpool Waters Developer Romal Capital Number of Apartments 129 Apartment Types 1 and 2 bed Type of Sale Investor/Owner Occupiers New Build/Conversion New Build Build Complete Autumn 2020 Comments/Updates 2nd Phase of this groundbreaking Liverpool Waters scheme
Herculaneum Quay, Riverside Drive, L3 4ED Developer Primesite Developments Number of Apartments 123 Apartment Types 1,2 and 3 bedroom Type of Sale Predominately Investor New Build/Conversion New Build Build Complete Back onsite post administration Comments/Updates Striking scheme in south Liverpool docks with views across the river
Fabric Residence , Fabric District, Liverpool, L3 8HA Developer YPG No of Rooms 449 Apartment Types Studio, 1 and 2 bed Type of Sale Investor New Build/Conversion New Build Build Complete TBC Comments/Updates Previously consented student scheme now proposed residential
RESIDENTIAL DEVELOPMENTS POTENTIAL/FUTURE SCHEMES
Heaps Mill, 1 Park Lane, Liverpool, L1 5EX Developer Elliot Group/Valorem IP Number of Apartments 800 Apartment Types Studio, 1, 2 and 3 bed Type of Sale TBC New Build/Conversion New Build & Conversion Build Complete TBC Comments/Updates Will probably be a mixed residential scheme including BTR blocks
The Tannery, Gardeners Row, Liverpool, L3 6JH Developer Niveda Realty/Vinco Number of Apartments 381 Apartment Types Studio, 1 and 2 bed Type of Sale Investor New Build/Conversion New Build Build Complete TBC Comments/Updates Trio of buildings comprising 7, 9 and 15 storey towers.
Brewery Village (Cains), Baltic, L8 5XJ Developer Cains Brewery Village Number of Apartments 1400/1500 Apartment Types Studio, 1, 2 and 3 bed Type of Sale PRS or investors New Build/Conversion Predominately new build Build Complete TBC Comments/Updates £150/£200 million mixed use redevelopment of former Cain’s Brewery.
Hughes House, Liverpool, L3 8JE Developer Town Square Developments Number of Apartments 252 Apartment Types Studio, 1 and 2 bed Type of Sale TBC/Investor New Build/Conversion New Build Build Complete TBC Comments/Updates Proposals to demolish the TJ Hughes store and new build replacement
POTENTIAL/FUTURE SCHEMES
VIA VERDE, Leeds St/Vauxhall, Pumpfields, L3 6BA Developer Mees Demolition/Eldonian Number of Apartments 1308 Apartment Types Studio, 1, 2 and 3 bed Type of Sale Investor or PRS New Build/Conversion New Build Build Complete TBC Comments/Updates Large mixed-use scheme with 55,000 sq ft commercial space.
Eclipse, Baltic Triangle, L1 5HA Developer Ridgemere Construction Number of Apartments 217 Apartment Types Studio, 1 and 2 bed Type of Sale Investor New Build/Conversion New Build Build Complete TBC Comments/Updates Redesign of a previously consented residential scheme in Baltic
Former Bogans, Baltic Triangle, L1 5HA Developer Miami Ltd/Iliad Number of Apartments 156 Apartment Types Studio, 1 and 2 bed Type of Sale TBC New Build/Conversion New Build Build Complete TBC Comments/Updates New Baltic residential scheme with 4 commercial units to ground floor.
One Baltic Square Grafton St, Liverpool, L8 4QX Developer YPG Number of Apartments 301 Apartment Types 1 and 2 bed Type of Sale Investor New Build/Conversion New Build Build Complete TBC Comments/Updates Adjoining Cains Brewery site ranging in height from 4 to 9 storeys.
POTENTIAL/FUTURE SCHEMES
St Anne Street, Liverpool, L3 3DY Developer Citipads Number of Apartments 319 Apartment Types 1, 2 and 3 bed Type of Sale Investor New Build/Conversion New Build Build Complete TBC Comments/Updates Large scheme adjacent to ongoing Fox Street Village development.
Azure/Rose Place, off St Anne St, Liverpool, L3 3BN Developer Legacie Developments Number of Apartments 127 Apartment Types Studio 1 and 2 bed Type of Sale Investor New Build/Conversion New Build Build Complete TBC Comments/Updates New scheme close to Phoenix Place/Fox Halls student developments
Queens Dock, Chaloner Street, L3 4BE Developer TBC Number of Apartments 192 Apartment Types Studio, 1 and 2 bed Type of Sale PRS or Investor New Build/Conversion New Build Build Complete TBC Comments/Updates Overlooking Queens Dock adjacent to Leo’s Casino. Site for sale
Ovatus 1, Old Hall Street/Leeds St Developer Prospect Capital/Wilcocks Number of Apartments 168 (phase 1) Apartment Types Studio, 1, 2 and 3 bed Type of Sale Investor New Build/Conversion New Build Build Complete TBC Comments/Updates Phase 1 of double tower scheme at junction of Old Hall St/Leeds St
POTENTIAL/FUTURE SCHEMES
Ovatus 2, Old Hall Street/Leeds St Developer Prospect Capital/Wilcocks Number of Apartments 530 (phase 2) Apartment Types Studio, 1, 2 and 3 bed Type of Sale Investor New Build/Conversion New Build Build Complete TBC Comments/Updates Will be Liverpool’s tallest scheme at 48 storeys high when/if built
Great Homer St/Virgil St , Liverpool L5 5BY Developer The Soller Group Number of Apartments 277 Apartment Types Studio, 1 and 2 bed Type of Sale Investor New Build/Conversion New Build Build Complete TBC Comments/Updates Large residential scheme close to Project Jennifer regeneration
Freemasons Row, Leeds St, Liverpool, L3 2DJ Developer Vinco Number of Apartments 656 Apartment Types Studio, 1,2 3 bed apartments Type of Sale Investor New Build/Conversion New Build Build Complete TBC/Unlikely to happen
Comments/Updates Large residential scheme in Pumpfields fronting onto Leeds Street.
Norfolk House PH 3/EPIC, Baltic, L1 0AR Developer Elliot Group/EPIC Hotel Number of Apartments 306 bed hotel and apartments Apartment Types Hotel and apartments Type of Sale Investor New Build/Conversion New Build Build Complete TBC Comments/Updates Final phase of a three phased scheme in the heart of Baltic Triangle.
POTENTIAL/FUTURE SCHEMES
Norton’s, Flint Street, Baltic, L1 0DH Developer Citipads Number of Apartments 650 Apartment Types 1, 2 and 3 bed Type of Sale TBC New Build/Conversion New Build Build Complete TBC Comments/Updates Large prominent site being brought forward on corner of Baltic Triangle
35 Bridgewater Street, Baltic, L1 0AJ Developer Eloquent Global/For sale Number of Apartments 43 Apartment Types 1, 2 and 3 bed apartments Type of Sale Private Sale New Build/Conversion Conversion & New Build Build Complete 2020/TBC Comments/Updates Nice conversion in heart of Baltic Triangle opposite Higson’s Brewery
Brunswick Way, Docklands , L3 4BL Developer NWIA Number of Apartments 240 Apartment Types 1 and 2 bed Type of Sale TBC New Build/Conversion New Build Build Complete 2021/TBC Comments/Updates Stunning new docklands scheme in Liverpool Marina. Site for sale
Baltic Place, Brassey St , Liverpool, L8 5XP Developer Eloquent Global Number of Apartments 246 Apartment Types 1 and 2 bed Type of Sale Investor New Build/Conversion New Build Build Complete 2020/TBC Comments/Updates On the edge of the expanding Baltic Triangle close to Cain’s Brewery
POTENTIAL/FUTURE SCHEMES
Riverside, Sefton Street , Liverpool, L8 6UD Developer Eloquent Global Number of Apartments 198 Apartment Types 1 and 2 bed Type of Sale Investor New Build/Conversion New Build Build Complete 2020/TBC Comments/Updates Replacing a former car garage with rear of site fronting Caryl Street
Bevington Bush Scotland Road L3 6JH Developer Bevington Developments Ltd No of Apartments 614 Apartment Types Studio, 1, 2 and 3 bed Type of Sale Investor/BTR New Build/Conversion New Build Build Complete TBC Comments/Updates Formerly a proposed STUDENT scheme now with residential planning
The Metalworks, Pumpfields, L3 6DL Developer Acentus RE/Respect-Hipkiss Number of Apartments 312 Apartment Types Studio, 1 and 2 bed Type of Sale Investor Sale New Build/Conversion New Build Build Complete TBC Comments/Updates Large residential scheme comprising 11/13 storey blocks.
VAUXHALL, Oriel St/Paul St, Liverpool, L3 6DU Developer Smith Young No of Apartments 447 Apartment Types Studios, 1 and 2 bed Type of Sale TBC New Build/Conversion New Build Build Complete TBC Comments/Updates Large mixed-use scheme proposed for Vauxhall/Pumpfields area
POTENTIAL/FUTURE SCHEMES
Clegg Street, Liverpool, L5 3LU Developer Caro No of Apartments 97 Apartment Types Investor Type of Sale TBC New Build/Conversion New Build Build Complete TBC Comments/Updates Adjoining Caro’s City Point student scheme just off St Anne’s Street
Parliament Square , Great George St, L1 0BS Developer Legacie No of Apartments 505 Apartment Types Studios, 1, 2 and 3 bed Type of Sale TBC New Build/Conversion New Build Build Complete TBC Comments/Updates Large 12/18 storey mixed use scheme on corner of Baltic Triangle
St James St, Baltic, L2 2HT Developer LPS Real Estate Number of Apartments 44 Apartment Types 1, 2 and 3 bed Type of Sale Investor/TBC New Build/Conversion New Build Build Complete TBC Comments/Updates New building (inc new build pub) on former Liver Works site in Baltic
Plot C02 Central Docks, Liverpool Waters Developer Romal Capital Number of Apartments 646 Apartment Types 1 and 2 bed Type of Sale Investor/Owner Occupiers New Build/Conversion New Build Build Complete TBC Comments/Updates Next phase of this groundbreaking Liverpool Waters scheme
POTENTIAL/FUTURE SCHEMES
Aspire, Waterloo Road/Paisley St, L3 7BA Developer Living Brick Ltd Number of Apartments TBC Apartment Types 1, 2 and 3 bed Type of Sale Investor New Build/Conversion New Build Build Complete TBC Comments/Updates 16 Storey development close to Liverpool Waters/new link road
Highpoint, 24 Highfield St, L3 6AA Developer TBC Number of Apartments TBC Apartment Types TBC Type of Sale TBC New Build/Conversion New Build Build Complete TBC Comments/Updates Potential new tower scheme on site of existing offices
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STALLED/NOT PROGRESSING
North Point, 70-90 Pall Mall, Liverpool, L3 6AE Developer North Point Global Number of Apartments 366 (507 proposed) Apartment Types Studio, 1,2 and 3 bedroom Type of Sale Investor New Build/Conversion New Build Build Complete STALLED/restart shortly Comments/Updates Site purchased by ELLIOT Group demolition under way of work done
New Chinatown, Great George Street, L1 7AG Developer Great George St Developments Number of Apartments 117 (phase 1) 503 (P2 & P3) Apartment Types Studio, 1,2 and 3 bedroom Type of Sale Investor New Build/Conversion New Build Build Complete STALLED Comments/Updates New proposals announced to kick start this former stalled site
Victoria House, James Street, Liverpool, L1 6BD Developer AR & V Investments Number of Apartments 63 Apartment Types Studios and 1 bed Type of Sale Investor New Build/Conversion Conversion Build Complete STALLED/restart shortly Comments/Updates Site purchased progress soon/new proposals submitted for planning
ALEXANDRA TOWER Princes Dock, Liverpool, L3 1BF
Alexandra Tower is one of Liverpool’s most iconic residential buildings literally “perched” on the River Mersey at Princes Dock. The apartments in the scheme benefit from stunning views, either across the river towards the Welsh Hills or back towards the famous Liverpool City skyline.
Having been improved by the previous owner to include refurbished entrance/concierge, upgraded communal areas and the reinstatement of car parking Alexandra Tower now offers some of the best apartments in the city.
TO LET (all prices are from) - 1 beds £700, 2 beds £850, 3 beds £1200 Unfurnished and furnished apartments available
FOR SALE (all prices are from) 2 beds £179,950
0151 231 6100
RESIDENTIAL LETTINGS
Prices • Rents fairly static during the quarter overall although we have seen renewed strength in activity at the lower end of the market particularly affordable 1 beds. • Most landlords happy to see continuity of tenancy/small increase on renewal rather than trying to substantially raise rents.
Market Activity • Market reasonably active during the quarter but slightly below last year activity levels. • Continued strong interest in larger/more expensive properties. • The introduction of the fee ban on 1 st June did not appear to cause too much upheaval in the market. Some tenants did delay their move during May until after the fee ban introduction but not in substantial numbers.
Supply/demand • The completion of several new schemes with more affordable stock increased supply with a definite and noticeable effect on supply/demand. • City is continuing to attract wealthier tenants who are looking for “better quality schemes/apartments” that are in short supply/not being delivered at present. • The slowing pipeline and likelihood that a substantial portion of this will not get built may well lessen the pressure on rents that would occur if this pipeline was delivered.
Tax/legislation/politics/finance • Due to increasingly onerous tax/legislative changes (increased stamp duty and loss of tax relief) landlords being more particular and are less willing to pay asking prices and offering below market value • The “tightening” of required rental interest cover by mortgage lenders is having an impact especially those landlords with high levels of gearing although the continued availability of extremely low 2, 3, 5 and 10 year fixed rates continues to offset this. • Recent announcement of the potential banning of Section 21 notices may well lead to longer, open ended tenancies something the government appears very keen to introduce
Market Rents - Liverpool City Centre (AVERAGES) City Centre (L1 & L2) Docklands (L3) Price Changes PRS/BTR (projected) Apartment Type Sq Ft Rent £/sq ft pcm £/sq ft pa Rent £/sq ft pcm £/sq ft pa Quarter Annual Rent £/sq ft pcm £/sq ft pa Studio 275 £495 £1.80 £21.60 £495 £1.80 £21.60 0.00% 0.00% £600 £2.18 £26.18 Studio 325 £540 £1.66 £19.94 £540 £1.66 £19.94 0.00% 0.00% £650 £2.00 £24.00 1 bed 450 £610 £1.36 £16.27 £610 £1.36 £16.27 1.50% 3.00% £700 £1.56 £18.67 1 bed 525 £650 £1.24 £14.86 £660 £1.26 £15.09 1.40% 3.00% £725 £1.38 £16.57 2 bed 550 £710 £1.29 £15.49 £720 £1.31 £15.71 1.20% 2.90% £900 £1.64 £19.64 2 bed 610 £765 £1.25 £15.05 £770 £1.26 £15.15 0.00% 2.20% £935 £1.53 £18.39 2 bed 685 £790 £1.15 £13.84 £800 £1.17 £14.01 0.00% 2.75% £965 £1.41 £16.91 2 bed 2 bath 775 £830 £1.07 £12.85 £840 £1.08 £13.01 0.00% 2.75% £1,000 £1.29 £15.48 2 bed 2 bath 875 £930 £1.06 £12.75 £940 £1.07 £12.89 -0.50% 2.25% £1,050 £1.20 £14.40 2 bed penthouse 1000 £1,040 £1.04 £12.48 £1,050 £1.05 £12.60 -1.25% 1.75% £1,150 £1.15 £13.80 3 bed 1 bath 850 £1,130 £1.33 £15.95 £1,165 £1.37 £16.45 0.00% 2.85% £1,300 £1.53 £18.35 3 bed 2 bath 975 £1,250 £1.28 £15.38 £1,275 £1.31 £15.69 0.00% 2.85% £1,400 £1.44 £17.23 AVERAGES £812 £1.29 £15.54 £822 £1.31 £15.70 0.20% 2.19% £948 £1.53 £18.30 The figures detailed above are based upon a sample of apartments (from 10 developments) in the city/docklands and the prices that would be achieved in today’s market conditions. They are not necessarily based on actual achieved prices (but use market evidence) as the sample size could be too low resulting in extreme variations in price. . .
RESIDENTIAL SCHEMES to LET ------ALEXANDRA TOWER
No of Apartments:70 Type: 1, 2 and 3 Bed Address: Princes Dock, Liverpool, L3 1BD Prices From: 1 bed: £700 2 bed: £900 3 bed: £1,200 Furnished/Unfurnished : Selection of both Car Parking: Yes
------SHAFTESBURY APARTMENTS
No of Apartments:39 Type:1 and 2 Bed Address: Mount Pleasant, Liverpool, L3 5SA
Prices From: 1 bed: £650 2 bed: £800
Furnished/Unfurnished : Furnished Car Parking: No
------2 MOORFIELDS
No of Apartments: 68 Type: Range of studio apartments Address: 2 Moorfields, Liverpool, L2 2BS
Prices From/To: Studios £575-£650 all inclusive rents
Furnished/Unfurnished : Furnished Car Parking: No
------HADWENS APARTMENTS
No of Apartments: 8 Type: 1 and 2 bed Address: Tithebarn St, Liverpool L2 2SB Prices From/To: 1 bed: ALL LET 2 bed: £950 Furnished/Unfurnished : Furnished Car Parking: No
------0151 231 6100
BUILD TO RENT (BTR) During the last quarter we have seen the following announcements which continue to highlight Liverpool as being one of the more active BTR cities outside of London.
• Brickland/Heitman deal – Construction progressing extremely well • Construction now well underway on The Lexington (Moda/BCEGI) and Strand House (Panacea/Invesco/Graham’s). • Construction progress on Plaza 1821 (Peel/Regenda/Forest) has restarted after the administration of the previous contractor with topping out achieved on the 1 st July • Heaps Mill/One Park Lane bought back by Elliott Group in JV with Valorem from Infinity having previously sold the scheme to them. Probably BTR elements of the scheme. • We await news on the proposed third Princes Dock tower “The Hive” by Your Housing.
BUILT
Cargo Building, Baltic Triangle, L1 8JH Developer Promenade Estates Ltd Number of Apartments 324 Fund Hermes/Vista Apartment Types 1, 2 and 3 bed New Build/Conversion New Build Build Complete NOW LETTING Comments/Updates £50 million forward funded deal overlooking The Strand/Docks
UNDER CONSTRUCTION
Plaza 1821, Princes Dock, Liverpool Waters, L3 1DZ Developer Peel Number of Apartments 105 Fund Regenda Apartment Types 1 and 2 bed New Build/Conversion New Build Build Complete Spring 2020 Comments/Updates £21 million scheme being built by Peel for Regenda/Redwing
Strand House, 21 Strand St, Liverpool, L2 0PP Developer Panacea Property Number of Apartments 391 Fund Invesco Apartment Types 1, 2 and 3 bed New Build/Conversion New Build Build Complete Autumn 2020 Comments/Updates Located fronting The Strand with views across Albert Dock/Mann Island
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UNDER CONSTRUCTION
The Lexington, Princes Dock, Liverpool Waters, L3 1DZ Developer Moda Living Number of Apartments 304 Fund Apache Apartment Types Studio, 1, 2 and 3 bed New Build/Conversion New Build Build Complete 2021 Comments/Updates 34 storey £82 million GDV scheme in Princes Dock/Liverpool Waters
Blundell Street, Baltic, L1 0AJ Developer Brickland/Heitman Number of Apartments 200 Apartment Types 1, 2 and 3 bed Fund Heitman New Build/Conversion New Build Build Complete TBC Comments/Updates Large new Baltic scheme including commercial & 116 car park spaces.
PROPOSED
The Keel (PHASE 2), Queens Dock, Liverpool, L3 4GE Developer Glenbrook Number of Apartments 257 Fund Barings Real Estate Apartment Types 1, 2 and 3 bed New Build/Conversion New Build Build Complete TBC Comments/Updates 2nd phase of The Keel with two buildings overlooking Queens Dock
Aspire, 30-36 Pall Mall, L3 6AE Developer Anwyl Construction Number of Apartments 336 Fund TBC Apartment Types Studio, 1, 2 and 3 bed New Build/Conversion New Build Build Complete 2020 Comments/Updates Stunning 22 storey scheme opposite proposed Pall Mall Exchange
The Hive Princes Dock, Liverpool Waters, L3 1DZ Developer Your Housing Number of Apartments 276 Fund Self funded Apartment Types 1, 2 and 3 bed New Build/Conversion New Build Build Complete 2020 Comments/Updates Proposed £48 million scheme designed by Brock Carmichael
POPULATION Residential CITY CENTRE CORE Number of built PROPERTIES (city centre core) 14,314 Number of OWNER OCCUPIED properties 4,187 Number of TENANTED properties 8,911 Number of VACANT Properties 848 VACANCY Rate 7% Number STUDENTS (living in non PURPOSE BUILT units) 3,625 Number STUDENTS (living in PURPOSE BUILT units) 19,474 Number of Units let to SERVICED APARTMENT operators 368 Total Number of City Centre Residents 45,213
Expanded City Centre Core
Expanded City Centre Core City Centre Core
Expanded City Centre Core
EXPANDED CITY CORE Number of Properties Built (all areas) 17,547 Number of OWNER OCCUPIED Properties 5,569 Number of TENANTED Properties 10,412 Number of VACANT Properties 1,198 VACANCY Rate 7% Number of STUDENTS (living in non PURPOSE BUILT units) 4,443 Number of STUDENTS (living in PURPOSE BUILT units) 22,278 Number of Units let to SERVICED APARTMENT operators 368 Total Number of City Centre Residents 52,197
Student STUDENT POPULATION 2016/2017 Post Grad Under Grad Full Time Part Time Total The University of Liverpool 6,725 22,070 25,370 3,425 28,795 Liverpool John Moores University 4,350 18,875 19,780 3,450 23,230 Liverpool Hope University 1,290 3,910 4,570 625 5,195 The Liverpool Institute for Performing Arts 0 795 795 0 795 Liverpool School of Tropical Medicine 435 0 150 285 435 TOTAL STUDENTS 12,800 45,650 50,665 7,785 58,450
STUDENT POPULATION 2011/2018 UNIVERSITY/YEAR 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 Movement % The University of Liverpool 20,590 20,875 21,345 22,715 24,775 27,070 28,795 6.37% Liverpool John Moores University 25,855 22,585 21,315 20,635 21,880 22,445 23,225 3.48% Liverpool Hope University 7,400 6,540 6,240 5,550 4,940 5,240 5,200 -0.76% The Liverpool Institute for Performing Arts 720 730 720 715 720 745 795 6.71% Liverpool School of Tropical Medicine 425 430 435 1.16% TOTAL STUDENTS 54,565 50,730 49,620 49,615 52,740 55,930 58,450 4.51%
• Another decent increase in undergraduate students from all universities has helped the overall student numbers increase over 4.5% year on year. • LSTM numbers now shown separately from UoL figures.
Student Market – Latest Development/Planning Updates
• MCR Property group are now back on site with the previously stalled Pinnacle scheme “The Quadrant” located on Shaw Street. • The stalled Baltic House student scheme in Baltic has now been bought by Crossfield Exclusive Developments Ltd who are now on site with their newly proposed scheme. • Former Copperas Hill Police Station that was brought to the market by Eddisons has been agreed to be bought by Carpenter Investments. • Far East Orchard a Singapore based company purchased the 323 bed Glassworks development in Liverpool as part of a three development investment deal. • Mount Property Group announced that they had agreed a forward funding investment deal on their Innovo House scheme in Devon Street, Fabric Quarter with Singapore based Soilbuild Group. • Elliot Group announced the acquisition of the stalled, former North Point Global Paramount scheme on London Road with a view to completing the development in 2020.
STUDENT SCHEMES to LET 0151 231 6100 ------
SHAFTESBURY APARTMENTS
No of Apartments/Rooms: 39 Apartments
Type: 1 and 2 bed apartments
Address: Mount Pleasant, Liverpool, L3 5SA
Bills included: No
Rents from : £650 per month (18/19) ------
2 MOORFIELDS
No of Apartments/Rooms: 68 studios
Type: Self contained studios across three floors
Address: 2 Moorfields, Liverpool, L2 2BS
Bills included: Yes
Rents from : £575-£650 per month all inclusive rents
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STUDENT DEVELOPMENTS
UNDER CONSTRUCTION/PROGRESSING
KAPLAN, Paddington Village, Knowledge Quarter, L7 Developer Kaplan/LIC No of Rooms 259 Studios or Cluster Studio Type of Sale Self fund New Build/Conversion New Build Build Complete Sep 2019
Comments/Updates £35million development in the emerging Paddington Village/KQ district
Horizon Heights, Skelhorne St , Liverpool, L3 5LX Developer Unite No of Rooms 1085 Studios or Cluster Predominately cluster Type of Sale Self fund New Build/Conversion New Build Build Complete Sep 2019 Comments/Updates £70 million scheme adjoining Grand Central student scheme (Unite)
One Islington Plaza Islington, Liverpool, L3 8HA Developer New Regen/RW Invest No of Rooms 317 Studios or Cluster Mixed student/cluster Type of Sale Investor New Build/Conversion New Build Build Complete Summer 2019 Comments/Updates New scheme proposed on site originally owned by Islington Regen
The Weavers, Norton St/Islington, Liverpool, L3 8LR Developer Niveda Realty No of Rooms 738 Studios or Cluster Studios and clusters Type of Sale Fund New Build/Conversion New Build
Build Complete Aug 2019
Comments/Updates Large prominent scheme on the corner of Islington /Norton St
UNDER CONSTRUCTION/PROGRESSING
Hardman House/Haigh Building , Liverpool, L1 9AS Developer Carpenter Investments No of Rooms 355 Studios or Cluster Mixed student/cluster Type of Sale TBC New Build/Conversion New Build Build Complete Sep 2019 Comments/Updates Located fronting onto Hardman Street incorporating Haigh Building
Aura, Low Hill, Liverpool L6 1AU Developer Elliot Group Number of Rooms 1007 (student units) Studios or Cluster Predominantly cluster Type of Sale Investor New Build/Conversion New Build Build Complete 2020 Comments/Updates Mixed Use scheme on site of former Erskine Industrial Estate
33 Devon Street, Islington, Liverpool, L3 8HA Developer Yu Property Group No of Rooms 218 Studios or Cluster Predominantly cluster Type of Sale Investor New Build/Conversion New Build Build Complete Autumn 2020 Comments/Updates Previously consented scheme has been resubmitted for planning.
Baltic 56, Norfolk Street, Baltic Triangle, L1 0BE Developer Borden Properties Number of Apartments 126 Studios or Cluster Student studios Type of Sale TBC/Investor New Build/Conversion New Build Build Complete August 2019 Comments/Updates New scheme in the Baltic located adjacent to the new WO Building.
UNDER CONSTRUCTION/PROGRESSING
The Rise, Low Hill, Liverpool L6 1BP Developer Primesite Developments No of Rooms 136 Studios or Cluster Predominantly cluster Type of Sale Investor New Build/Conversion New Build Build Complete Sep 2020 Comments/Updates Located in a high-profile location close to new Royal Hospital
The Quadrant, Shaw Street, L6 1HS Developer Pinnacle Alliance No of Rooms 240 Studios or Cluster 204 cluster/36 studios Type of Sale Investor New Build/Conversion New Build Build Complete Sep 2019 Comments/Updates Previously stalled scheme bought by Manchester MCR Group
STUDENT DEVELOPMENTS PROPOSED/POSSIBLE
Fraser Street/Norton St, Liverpool, L3 8LR Developer Mount Property Group No of Rooms 566 Studios or Cluster Predominately cluster Type of Sale Fund New Build/Conversion New Build Build Complete TBC Comments/Updates Proposed redevelopment of former National Express bus centre
Mount Pleasant Car Park, Knowledge Q, L3 5TB Developer Liverpool City Council/TBC No of Rooms TBC Studios or Cluster TBC Type of Sale TBC New Build/Conversion New Build Build Complete TBC Comments/Updates Proposed large student/mixed use scheme opposite LJMU Copperas PROPOSED/POSSIBLE
3 Oldham Place, Liverpool, L1 2TD Developer Oldham Place Ltd No of Rooms 117 Studios or Cluster Studios Type of Sale TBC New Build/Conversion New Build Build Complete TBC Comments/Updates Small site tucked away on Oldham Place opposite Unite’s St Luke’s
Mulberry Street, Canning, Liverpool, L7 7EE Developer Property Capital Development No of Rooms 366 Studios or Cluster Studios Type of Sale TBC New Build/Conversion New Build Build Complete TBC Comments/Updates Controversial scheme heavily objected to due to conservation area
Renshaw Hall, Benson Street , Liverpool, L1 2SS Developer Niveda Realty No of Rooms 404 Studios or Cluster Studios and clusters Type of Sale Fund New Build/Conversion New Build Build Complete Aug 2020 Comments/Updates New application in for hotel and 404 room student block
Former Copperas Hill Police Station, L3 5LD Developer TBC/Carpenter Investments No of Rooms 206 Studios or Cluster Mixed student/cluster Type of Sale Retain New Build/Conversion New Build Build Complete TBC Comments/Updates Scheme now being sold with the benefit of planning permission
PROPOSED/POSSIBLE
Innovo House, Devon St Fabric District, L3 Developer Mount Property Group No of Rooms 124 Studios or Cluster Mixed student/cluster Type of Sale Forward funded investor New Build/Conversion New Build Build Complete Sep 2020 Comments/Updates Forward funding deal announced in Mar 2019 with Soilbuild Group
STALLED/NOT PROGRESSING
The Paramount, London Road, L3 5NF Developer Pinnacle Alliance/Elliot Group No of Rooms 477 Studios or Cluster 430 cluster/47 studio Type of Sale Investor New Build/Conversion New Build Build Complete STALLED/BOUGHT Comments/Updates Scheme bought by Elliot Group in July 2019
PIPELINES Listed below are the current pipelines for the relevant asset class in the city centre and our estimated delivery dates/numbers based upon our market knowledge, schemes, funding etc.
Residential RESIDENTIAL PIPELINE LIVERPOOL CITY CENTRE Stage PIPELINE Under Construction (ex stalled) 4,847 Stalled 628 Planning Approved 7,641 Proposed/Awaiting planning 6,263 Total Pipeline 19,379 DELIVERY Guaranteed Anticipated Delivery Dates (Under Construction) (City Res view) Delivery for 2019 857 857 Delivery for 2020 1,899 2,193 Delivery for 2021 304 1,666 Delivery for 2022 0 1,905 Total Delivery 3,060 4,716
BTR (Build to Rent) BTR PIPELINE LIVERPOOL CITY CENTRE Stage NUMBER GDV Built 661 £108,500,000 Under Construction 1,002 £231,000,000 Planning Approved 1,645 £279,000,000 Proposed/Awaiting planning 650 £52,500,000 Total Pipeline 3,958 £671,000,000 DELIVERY Guaranteed Anticipated Delivery Dates (Under Construction) (City Res view) Delivery by 2018 661 661 Delivery for 2019 0 0 Delivery for 2020 698 698 Delivery for 2021 304 1,173 Delivery for 2022 0 1,426 Total Delivery 1,663 3,958
Student
STUDENT PIPELINE LIVERPOOL CITY CENTRE Stage PIPELINE Under Construction (ex stalled) 4,589 Stalled 488 Planning Approved 1,634 Proposed/Awaiting planning 1,607 Total Pipeline 8,318 DELIVERY Guaranteed Anticipated Delivery Dates (Under Construction) (City Res view) Delivery for 2019 2,495 2,495 Delivery for 2020 2,094 3,148 Delivery for 2021 0 1,161 Delivery for 2022 0 1,314 Total Delivery 4,589 8,118 Finance & Mortgage (As at 5th July 2019) In association with
0151 548 4448 www.jpfinancialadvice.co.uk
GENERAL • Although the Bank of England continued to maintain the base rate at 0.75% throughout the second 3 months of the year there has been a marked shift downwards in overall mortgage rates. This has been caused by lenders continuing to lower rates to be more competitive as well as lowering of expectations on the future direction of base rates overall.
BUY to LET • Buy to let rates mirrored the movement in general mortgage rates with both shorter- longer-term rates falling as lenders chased business from both new and existing landlords.
Normal Mortgages (Buying and remortgaging)
Type Rate Period Fee Max LTV Lender Variable 1.99% Term £999 60% Hanley Fixed 1.38% 2 Year £995 60% Natwest Fixed 1.59% 3 Year £1132 75% Coventry Fixed 1.77% 5 Year £1575 75% Virgin Fixed 2.29% 10 Year £995 60% TSB
Buy to Let Mortgages
Type Rate Period Fee Max LTV Lender Variable 1.39% Tracker/2year £2385 65% Mortgage Works Fixed 1.48% 2 Year £1495 60% Post Office Fixed 2.09% 3 Year £2213 75% Virgin Fixed 2.04% 5 Year £1495 60% Halifax Fixed 2.74% 10 year £1995 65% Mortgage Works
The list of available mortgage offers detailed below is purely intended as a guide and is sourced from Moneyfacts and GoDirect. It is not intended to be a “best buy” table or offer advice it simply highlights some of the mortgage deals that were available on the date shown above which have been recommended by a team of independent experts as their best buys .
Source: Moneyfacts (www.moneyfacts.co.uk ) and GoDirect (http://www.godirect.co.uk ) YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE. Written quotations are available from individual lenders. Loans are subject to status and valuation and are not available to persons under the age of 18. All rates are subject to change without notice. Please check all rates and terms with your lender or financial adviser before undertaking any borrowing.
AUCTION RESULTS Sponsored by Venmore Auctions 0151 329 2676 Next Auction: 18 th July 2019 Town Hall Liverpool
Listed below are the auction results for properties (apartments) sold in the quarter in the main city centre postcodes (L1, L2 and L3) or close periphery – city centre side of (L5, L6, L7 and L8)
Address Auctioneer Date GUIDE £ SOLD £ FLOOR Beds Baths Parking Rent* Yield Apt 65, L1 Building, 21 Jamaica St, L1 0AF Sutton Kersh 15/05/2019 £55,000 £58,500 6th Studio 1 No £580 11.90% Apt 7, Tobacco Wharf, 51 Commercial Rd, L5 9XS Pugh 04/06/2019 £50,000 £55,000 2nd 2 1 Yes £550 12.00% *The rent shown is either the actual current rent where the property is let or the anticipated rent if let in the market.
Tobacco Wharf L1 Building
If you wish to buy properties at this level of pricing City Residential Ltd offer a buying service which will enable you to purchase at levels normally only available to seasoned investors and landlords – ring us for more details. Headline Blog
“Opportunities for Build to Rent?””
What’s going on? In our Q1 2019 issue we highlighted the difficulties individual landlords were having given the substantial taxation and legislation issues that have been introduced into the sector over the last few years. This has resulted in an increasing number of landlords looking to exit the sector. At the same time it appears that the government (and indeed all of the political parties) are keen on improving the standards of the private rental sector which provides an ideal opening for institutionally backed build to rent (BTR) development.
Are there any other issues/advantages that will support BTR? With BTR delivering new, well managed, highly amenitised schemes it is not surprising that the sector appears to have the political support it has and appears to be performing well in many of the early schemes built so far. Apart from the obvious differential in quality one of the issues that we are experiencing with the existing PRS market is that many of the developments/apartments are now 10/15 years old (built during 2005/2007) and are beginning to require upgrading/improvement works to satisfy the very growing demands of generation rent. Given the other financial/legislative demands on landlords many are struggling/unwilling to carry out these required works and are therefore suffering with static rents/losing tenants. Coming at a time when new BTR schemes are entering the market it is not surprising that some tenants are choosing to pay a premium over their existing rent to ensure that their rental property matches their expectations.
Does this mean that most rental properties will be in BTR schemes in the future? No not necessarily as there will always be a market for PRS properties in addition to BTR. As the BTR sector is still relatively new in the UK it is too soon to categorically say that these schemes will dominate the rental market as they appear to have done in the USA for example. Whilst there is no doubt they will play a major part in the market going forward we strongly believe that there will always be a demand for the existing PRS market especially as this will provide a more affordable rental product.
How will the slowdown in fractional sales support BTR developer/investors? We’ve reported in previous issues that fractional sales in both Liverpool and the UK as a whole has become a more difficult exit for developers than in previous years. This has logically discouraged some developers from pursuing/purchasing more development/land opportunities than they have previously. With a reduced demand from these developers some sites have become more affordable/available to purchase by BTR developers thereby allowing an increased ratio of BTR schemes relative to PRS/fractional schemes.
What factors may inhibit the BTR market going forward? As the BTR market matures and more schemes are built we will begin to see how the performance of the sector plays out. At present the sector appears to be only enjoying positive commentary and strong performance but at some stage this will be tested most likely by factors out of their control. In some cities (Manchester for example) we are already starting to see demand and performance slightly below expectations due to the massive number of units being delivered in this calendar year. It doesn’t matter how good the product/service is if we are building too many too soon. Another risk is that in some cities the BTR developers appear to be focusing heavily on a high level of amenities/service something which logically pushes up rental prices. Whilst there is no doubt there is room in all of the UK cities for top end, expensive BTR schemes we can’t help but feel the sector may be better concentrating on mid market product with affordable rents and lower levels of amenity. Finally how will the market cope in the event of a recession/downturn? Renters are customers and they have a tendency to tighten their wallets in tougher times and this may well extend to their choice of rental home if they need to reduce their outgoings.
Summary
Whist the media continues to be focused on Brexit the residential market in the city continues to perform reasonably well. As we highlighted previously whilst we may not have seen the price surges that the likes of Manchester and Birmingham have experienced, we are extremely confident that the city will “outperform” their UK cities in the event of tougher times ahead. Brexit has become a political football rather than a genuine issue that will stop people getting on with their lives whether that be renting or buying/selling.
Our focus on the Built to Rent sector this quarter is a logical one given the influence it is likely to have on the rental market in the city over the coming years. Whilst some other UK cities have seen a greater take up of BTR development than Liverpool, the continued strength/steady growth of the Liverpool’s rental market is exactly the type of performance that many BTR investors are looking for. Whilst any investor would love to experience a 10% rise on rents in any given year, they will be similarly displeased to see a 4% reduction the following year!
Although the ongoing strength of the rental market in the city has been pleasing, financial viability for BTR schemes in the city continues to prove challenging. With build costs not dissimilar to that of other cities such as Manchester, Leeds and Birmingham the lower rental prices in Liverpool prove extremely challenging in making potential developments “stack up”! The positive that comes out of this issue however is that we are highly unlikely not to see a surge in BTR developments in the city which in the medium/long term will result in a more stable, better performing sector that the institutions backing BTR schemes are wanting to deliver/invest in.
Alan Bevan Managing Director City Residential July 2019 0151 231 6100 07970 498187 [email protected] www.cityresidential.co.uk
NEXT ISSUE: October 2019
OUR CHOSEN CHARITY
City Residential, Liverpool’s leading city centre residential agent have reinforced their long term support for Claire House Children’s Hospice by agreeing to a once a year donation based upon their annual operating profit. Their commitment, that will last indefinitely, sees the firm donate 1% of their pre- tax profits to the Wirral based charity every year. Their first donation saw them presenting a cheque in early 2015 for £3,812.50 to Helen Carlson at Claire House with subsequent donations in 2016, 2017, 2018, 2019 totalling well over £15,000
The ongoing donation from City Residential comes at an important time for Claire House with them having just launched a Liverpool base at a former monastery on Honey’s Green Lane in West Debry. Whilst initially the site – a former will offer day-care services, counselling and complementary therapies, as well as hosting the mums, tots and babies groups. The new hospice is in addition to the current Claire House Children’s Hospice adjacent to Clatterbridge Hospital, which is already at capacity and difficult to reach for many parents. More than half of the children who use it come from the Liverpool side of the Mersey.
“We have supported Claire House for over 10 years and this long term commitment is the least that we can offer a charity that does such wonderful work in looking after children from all areas of The Northwest” commented Kerry Rogerson-Bevan director of City Residential “Although there are other children’s hospice’s across the UK Claire House is our local children’s hospice and their passion and long term commitment in providing care to children with life limiting life threatening illnesses is second to none and deserves all of our support”