“Turning point for stalled developments?”
LIVERPOOL RESIDENTIAL UPDATE QUARTER 4 2018
For regular updates, news and offers follow us on:
Twitter.com/cityresidential
Facebook.com/cityresidential
@cityresidential.co.uk
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 selection of apartments in the only residential development at Liverpool Waters currently available for sale. With Phase 1 now sold and nearly complete this second phase comprises a total of 129 apartments
· Selection of 1 and 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 £136,492
For further information 0151 231 6100 [email protected] ADVERTISEMENT RESIDENTIAL SALES Prices • HALIFAX – -0.4% decrease over the quarter for the UK as a whole. • NATIONWIDE – 0.0% static prices over quarter for UK as a whole • CITY RES – Slight decrease during the quarter (-0.15%) growth mainly at upper end only partially offsetting a larger deficit at the lower end (predominately studio prices)
Market Activity • Market activity remained resilient despite the issues facing the market. • Investment market (selling to local investors) remains subdued due to increased tax burden (the second reduction in tax relief has now been implemented with the passing of the new tax year on April 6 th 2018). • Some buyers are making lower offers in the belief that the slowdown in price inflation and uncertainly over Brexit etc may allow them to buy at a cheaper level. • 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 • Increase in base rates (and subsequent small rise in mortgage rates) does not appear to have had any obvious negative effect on the market despite the raising of base rates by 0.25% in August. Further rate rises may have some influence but recent subdued inflation data/downside risks of Brexit may reduce this likelihood. • Somewhat surprisingly Brexit has not appeared to have the 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.
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 £63,000 £229 -1.50% -1.50% £66,150 £241 £68,040 £247 Studio 325 £71,000 £218 -1.00% -0.40% £74,550 £229 £76,680 £236 1 bed 450 £107,000 £238 0.00% 2.20% £112,350 £250 £115,560 £257 1 bed 525 £122,000 £232 0.00% 2.60% £128,100 £244 £131,760 £251 2 bed 550 £139,000 £253 0.10% 2.75% £145,950 £265 £150,120 £273 2 bed 610 £145,500 £239 0.00% 3.30% £152,775 £250 £157,140 £258 2 bed 685 £168,000 £245 0.00% 3.30% £176,400 £258 £181,440 £265 2 bed 2 bath 775 £191,500 £247 0.00% 3.50% £201,075 £259 £206,820 £267 2 bed 2 bath 875 £221,500 £253 0.30% 3.40% £232,575 £266 £239,220 £273 2 bed penthouse 1000 £244,000 £244 0.30% 3.40% £256,200 £256 £263,520 £264 3 bed 1 bath 850 £209,500 £246 0.25% 3.20% £219,975 £259 £226,260 £266 3 bed 2 bath 975 £236,500 £243 0.30% 3.20% £248,325 £255 £255,420 £262 AVERAGES £172,375 £241 -0.10% 2.41% £180,369 £253 £185,165 £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 £136,492
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: £195,000 LAST APARTMENT REMAINING Showhome/apartment: NOW OPEN ring for appointment
ADVERTISEMENT Completions
City Centre Prices and Completions from ZOOPLA Current average value £148,601 L1 Sales Price Paid Change 3 months 8 £195,675 -£1,242 -0.83% 6 months 37 £141,524 -£461 -0.31% 12 months 96 £134,638 £5,250 3.66% Current average value £164,593 L2 Sales Price Paid Change 3 months 1 £147,000 -£1,356 -0.81% 6 months 12 £161,106 -£317 -0.19% 12 months 67 £146,103 £5,913 3.72% Current average value £181,948 L3 Sales Price Paid Change 3 months 29 £168,912 -£1,461 -0.80% 6 months 82 £170,928 -£538 -0.29% 12 months 222 £164,265 £7,760 4.46% Current average value £170,613 CITY CENTRE Sales Price Paid Change 3 months 38 £173,970 -£1,353 -0.81% 6 months 131 £161,723 -£439 -0.26% 12 months 385 £153,717 £6,308 3.95%
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
This report is read by up to 10,000 people every quarter
Distributed to: Investors, landlords, tenants, buyers, sellers, estate agents, letting agents, planners, landowners, developers, commercial agents, facility managers, surveyors, architects, bankers, quantity surveyors, project managers, retailers, serviced apartment operators, financial advisors, wealth managers, finance companies, solicitors, accountants, developers, housebuilders, housing associations, private equity, fund managers, investment houses, insurers, politicians, councilors, managing directors, chief executives, advertising companies, PR companies, journalists, media companies, web designers and many more
For more information on advertising or sponsorship Contact
Joanne Shannon [email protected] 0151 231 6100
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 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 Spring 2019? Comments/Updates Refurbishment of the “ugly duckling” inc rooftop gym and running track
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 Spring 2019? 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
Wolstenholme Square, Ropewalks, L1 4JJ Developer Elliot Group Number of Apartments 447 Apartment Types Studio and 1 beds Type of Sale Investor New Build/Conversion New Build Build Complete Final phase 2019 Comments/Updates Redevelopment of former home of Cream and Kazimier clubs site.
FOR SALE/UNDER CONSTRUCTION
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 Spring 2019 Comments/Updates Conversion of former Silkhouse Court with views from upper floors.
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.
FOR SALE/UNDER CONSTRUCTION
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
Quay Central (Phase 1) Waterloo Rd, Liverpool Waters Developer Romal Capital Number of Apartments 237 Apartment Types 1 and 2 bed Type of Sale Investor New Build/Conversion New Build Build Complete Summer 2019 Comments/Updates First residential development onsite in Liverpool Waters scheme
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
Chavasse Building, Lydia Ann St, L1 2HB Developer Livingbrick Ltd Number of Apartments 55 Apartment Types Studio and 1 Bed Type of Sale Investor New Build/Conversion New Build Build Complete Spring 2019 Comments/Updates Small scheme in Ropewalks close to Circle 109 development
FOR SALE/UNDER CONSTRUCTION
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
RESIDENTIAL DEVELOPMENTS POTENTIAL/FUTURE SCHEMES
Heaps Mill, 1 Park Lane, Liverpool, L1 5EX Developer Inhabit 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 PRS scheme as part of £1billon/3,500 UK portfolio.
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.
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.
POTENTIAL/FUTURE SCHEMES
Hughes House, Liverpool, L3 8JE Developer Town Square Developments Number of Apartments 180 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
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
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.
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
POTENTIAL/FUTURE SCHEMES
Cathedral View, Baltic Triangle, L1 5HA Developer Citipads 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.
118-124 Duke Street, Ropewalks, L1 5AG Developer Henry Space Developments Number of Apartments 158 Apartment Types Studio and 1 bed Type of Sale Investor New Build/Conversion New build and conversion Build Complete TBC Comments/Updates Attractive scheme incorporating conversion of listed Duke St houses.
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.
48 Renshaw Street, Liverpool, L1 2SF Developer YPG Renshaw St Ltd Number of Apartments 90 Apartment Types Studio (plus 70 apart hotel) Type of Sale Investor New Build/Conversion New Build Build Complete TBC Comments/Updates 11 storey scheme adjoining Central Village with apart hotel units
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 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
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 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 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 2020 Comments/Updates Stunning new docklands scheme in Liverpool Marina. Site for sale
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 Summer 2019 Comments/Updates On the edge of the expanding Baltic Triangle close to Cain’s Brewery
POTENTIAL/FUTURE SCHEMES
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 Summer 2019 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 Pumpfields Regeneration Co 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 storey and 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, Liverpool, 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
ADVERTISEMENT
STALLED/NOT PROGRESSING
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 In ADMINISTRATION await news Comments/Updates Striking scheme in south Liverpool docks with views across the river
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 Comments/Updates Site purchased by ELLIOT Group expect progress soon
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 TBC 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 beds Type of Sale Investor New Build/Conversion Conversion Build Complete STALLED Comments/Updates Site purchased expect progress soon/new proposals
STALLED/NOT PROGRESSING
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 STALLED/2020 Comments/Updates Stalled scheme bought by Crossfield Exclusive. New application in.
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 £900, 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 with some strength in the middle/upper end of the market being offset by some slight reductions elsewhere. • 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 success of lettings at the recently completed Chancery House, Orleans House and Hadwens Apartments together with the ongoing performance of the BTR schemes at The Cargo Building/The Keel once again confirms the growing demand for quality accommodation, potentially at the expense of some of the older more “tired” existing schemes.
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 pipeline 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. • The implementation of the fee ban continues to move through parliament but very slowly with an anticipated live date in Spring/Summer 2019.
Market Rents - Liverpool City Centre (AVERAGES) City Centre Docklands 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 -1.00% 0.00% £600 £2.18 £26.18 Studio 325 £540 £1.66 £19.94 £540 £1.66 £19.94 -1.00% 0.00% £650 £2.00 £24.00 1 bed 450 £600 £1.33 £16.00 £600 £1.33 £16.00 0.00% 2.20% £700 £1.56 £18.67 1 bed 525 £640 £1.22 £14.63 £650 £1.24 £14.86 0.00% 2.20% £725 £1.38 £16.57 2 bed 550 £710 £1.29 £15.49 £710 £1.29 £15.49 0.00% 2.20% £900 £1.64 £19.64 2 bed 610 £765 £1.25 £15.05 £770 £1.26 £15.15 0.00% 2.40% £935 £1.53 £18.39 2 bed 685 £790 £1.15 £13.84 £800 £1.17 £14.01 0.00% 2.90% £965 £1.41 £16.91 2 bed 2 bath 775 £830 £1.07 £12.85 £840 £1.08 £13.01 0.30% 2.90% £1,000 £1.29 £15.48 2 bed 2 bath 875 £930 £1.06 £12.75 £945 £1.08 £12.96 0.30% 2.90% £1,050 £1.20 £14.40 2 bed penthouse 1000 £1,040 £1.04 £12.48 £1,075 £1.08 £12.90 0.40% 3.00% £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% 3.00% £1,300 £1.53 £18.35 3 bed 2 bath 975 £1,250 £1.28 £15.38 £1,275 £1.31 £15.69 0.60% 3.10% £1,400 £1.44 £17.23 AVERAGES £810 £1.29 £15.50 £822 £1.31 £15.67 -0.03% 2.23% £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 – After the announcement in September 2018 that Liverpool based developer Brickland had concluded a deal with global investor Heitman to develop build-to-rent sites in Manchester and Liverpool, the appointed contractor ISG is now on site. • Construction now well underway on The Lexington (Moda/BCEGI) and Strand House (Panacea/Invesco/Graham’s). • Construction on Plaza 1821 (Peel/Regenda/Forest) has temporary stalled due to the administration of Forrest.
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
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 Ingenious Tribe Number of Apartments 200 Apartment Types 1, 2 and 3 bed Type of Sale TBC 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
PROPOSED
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) 14,021 Number of OWNER OCCUPIED properties 4,161 Number of TENANTED properties 8,553 Number of VACANT Properties 939 VACANCY Rate 7% Number STUDENTS (living in non PURPOSE BUILT units) 3,529 Number STUDENTS (living in PURPOSE BUILT units) 19,474 Number of Units let to SERVICED APARTMENT operators 368 Total Number of City Centre Residents 44,511
Expanded City Centre Core
Expanded City Centre Core City Centre Core
Expanded City Centre Core
EXPANDED CITY CORE Number of Properties Built (all areas) 17,054 Number of OWNER OCCUPIED Properties 5,539 Number of TENANTED Properties 10,038 Number of VACANT Properties 1,109 VACANCY Rate 7% Number of STUDENTS (living in non PURPOSE BUILT units) 4,292 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 51,494
Student
STUDENT POPULATION 2016/2017 Post Grad Under Grad Full Time Part Time Total The University of Liverpool 6,135 20,940 23,870 3,200 27,070 Liverpool John Moores University 4,115 18,325 19,350 3,095 22,445 Liverpool Hope University 1,280 3,965 4,580 660 5,240 The Liverpool Institute for Performing Arts 0 745 745 0 745 Liverpool School of Tropical Medicine 435 0 120 310 430 TOTAL STUDENTS 11,965 43,975 48,665 7,265 55,930
STUDENT POPULATION 2011/2017 UNIVERSITY/YEAR 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 Movement % The University of Liverpool 20,590 20,875 21,345 22,715 24,775 27,070 9.26% Liverpool John Moores University 25,855 22,585 21,315 20,635 21,880 22,445 2.58% Liverpool Hope University 7,400 6,540 6,240 5,550 4,940 5,240 6.07% The Liverpool Institute for Performing Arts 720 730 720 715 720 745 3.47% Liverpool School of Tropical Medicine 425 430 1.18% TOTAL STUDENTS 54,565 50,730 49,620 49,615 52,740 55,930 6.05%
• Another decent increase in undergraduate students from all universities has helped the overall student numbers increase over 6% year on year. • LSTM numbers now shown separately from UoL figures.
Student Market – Development/Planning Updates
• The Quadrant the stalled Pinnacle scheme on Shaw Street has been bought by Manchester based MCR Group after being brought to the market by GVA on behalf of the administrator. • The stalled Baltic House student scheme in Baltic has now been bought by Crossfield Exclusive Developments Ltd after being brought to the market by Landwood Group. A new planning application has been submitted. • KAPLAN student development now on site at Paddington Village - an important milestone in the progress of this important Knowledge Quarter development. • Hardman House/Haigh Building development now on site after demolition of the previous buildings. • 1,000 plus unit Aura development now on site with superstructure advancing rapidly (despite contractor Forrest having gone into administration). Vermont have now taken over the construction • Former Copperas Hill Police Station brought to the market by Eddisons
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
------
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
Unite, 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 Mar 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
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
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
PROPOSED/POSSIBLE
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
The Sawmill, 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 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
Innovo House, Devon St Fabric District, L3 Developer Mount Property Group No of Rooms 124 Studios or Cluster Mixed student/cluster Type of Sale Investor New Build/Conversion New Build Build Complete Sep 2020 Comments/Updates Located in the heart of the up and coming Fabric Quarter
STALLED/NOT PROGRESSING
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 STALLED/2019 Comments/Updates Been bought by Manchester MCR Group - expect progress soon
The Paramount, London Road, L3 5NF Developer Pinnacle Alliance No of Rooms 477 Studios or Cluster 430 cluster/47 studio Type of Sale Investor New Build/Conversion New Build Build Complete STALLED Comments/Updates Contractor administration issues held back completion/part open
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) 3,504 Stalled 940 Planning Approved 18,715 Proposed/Awaiting planning 4,364 Total Pipeline 27,523 DELIVERY Guaranteed Anticipated Delivery Dates (Under Construction) (City Res view) Delivery for 2019 1,141 1,264 Delivery for 2020 1,521 2,800 Delivery for 2021 304 3,191 Total Delivery 2,966 7,255
BTR (Build to Rent) BTR PIPELINE LIVERPOOL CITY CENTRE Stage NUMBER GDV Built 648 £92,000,000 Under Construction 802 £197,000,000 Planning Approved 1,845 £314,000,000 Proposed/Awaiting planning 192 £30,000,000 Total Pipeline 3,487 £633,000,000 DELIVERY Guaranteed Anticipated Delivery Dates (Under Construction) (City Res view) Delivered for 2017 408 408 Delivery for 2018 0 0 Delivery for 2019 0 0 Delivery for 2020 498 690 Delivery for 2021 304 1,373 Total Delivery 1,210 2,471 Student STUDENT PIPELINE LIVERPOOL CITY CENTRE Stage PIPELINE Under Construction (ex stalled) 4,349 Stalled 728 Planning Approved 1,552 Proposed/Awaiting planning 1,833 Total Pipeline 8,462 DELIVERY Guaranteed Anticipated Delivery Dates (Under Construction) (City Res view) Delivery for 2019 2,463 2,703 Delivery for 2020 1,886 4,046 Delivery for 2021 0 1,443 Total Delivery 4,349 8,192
Finance & Mortgage (As at 10 th January 2019) In association with
0151 548 4448 www.jpfinancialadvice.co.uk
GENERAL • Although the BOE maintained the base rate at 0.75% in December there has been a slight edge upwards on overall mortgage rates. Brexit continues to dominate the agenda and until that is sorted we would expect rates to remain unchanged.
BUY to LET • Rates continued to edge up slightly during the quarter as expectations of slightly higher base rates continue to be discussed (despite the short term issues over Brexit). Saying that The Mortgage Works brought out a much more competitive 10 year fixed rate in November.
Normal Mortgages (Buying and remortgaging)
Type Rate Period Fee Max LTV Lender Variable 2.05% Term £999 65% Coventry Fixed 1.48% 2 Year £995 75% Leeds Fixed 1.69% 3 Year £999 60% Coventry Fixed 1.96% 5 Year £995 75% Yorkshire Fixed 2.44% 10 Year £0 60% First Direct
Buy to Let Mortgages
Type Rate Period Fee Max LTV Lender Variable 1.46% Tracker/2year £1995 60% Leeds Fixed 1.59% 2 Year £995 60% Post Office Fixed 1.83% 3 Year £1995 60% Virgin Fixed 2.09% 5 Year £1995 60% Skipton 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. ADVERTISEMENT
AUCTION RESULTS Sponsored by Venmore Auctions 0151 329 2676 Next Auction: 13 th Feb 1pm 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 Ant Rental* Yield 312 Fox Street Village, Fox Street, Liverpool Sutton Kersh 13/12/2018 £35,000 £39,000 3rd Studio 1 No £458 14.09% 152 The Reach, Leeds Street, L3 2DB Auction House 13/12/2018 £85,000 £88,000 4th 2 1 Yes £650 8.86% 123 Candia Tower, Jason Street, L5 5EB Auction House 13/12/2018 £36,000 £35,000 12th 3 1 Yes £450 15.43%
Candia Tower Fox Street Village The Reach
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 “Turning point for stalled developments ?”
What is happening? As we have reported in previous quarterly reports Liverpool has suffered (more so than any other city in the UK) from a substantial number of stalled developments. The majority of these stalled schemes have been caused using the fractional sales model whereby the developer has taken deposits from purchasers then failed to deliver the promised schemes. These stalled schemes have affected both the student and the residential market. Whilst some of the developments have been linked to the same developer others have had their own individual issues. Some of the stalled schemes are close to completion (Paramount, Quadrant, and Herculaneum Quay) whilst some are very much in their early days of construction (Pall Mall, Baltic House).
Why have so many stalled developments just been bought? Many of these stalled schemes have had a substantial amount of money spent to get them to the stage of construction they are at. As they are then being sold on the open market by the administrators/liquidates (and their agents) the sites very often offer good value for money with the incoming buyer being able to buy assets at a substantial discount to what they are worth/has been spent on them. The market process allows a fully transparent sale process and convinces the incoming developer that there is a willing and able vendor wanting to do a deal.
The likes of Elliot Group, MCR and Crossfield understand the Liverpool market very well and have confidence they have the skills, resources and ultimate exit to ensure that they make their schemes a success whereby previously the development had stalled.
Does this mean the end for stalled developments? We would like to think so and getting these stalled developments started again will go some way to clearing a major issue for the city. With the majority of these stalled schemes being bought by developers with a track record and an ability to deliver we would expect to see work starting on site in the very near future. Saying that there is still some concern in the market that there may be other ongoing schemes that may well struggle to deliver/complete over the next 12/18 months. With a tougher residential market, some investors still concerned over fractional sales and continued uncertainty over Brexit it is likely to be those experienced developers with a strong track record that will deliver going forward.
What about the future? Whilst it is highly encouraging to see so many of the stalled schemes make progress during the quarter these buyers need to get back on site and show delivery for potential new buyers to begin to focus on the strengths of the Liverpool residential market rather than the negatives! There are also two remaining stalled schemes where this is still uncertainty over their future. It would be highly encouraging for the market if these were dealt with during the coming months.
Although it is satisfying to see these stalled sites restart there are still hundreds of disappointed investors who have experienced some huge losses due to the collapse of these schemes. In most cases these investors will not be reimbursed in any way so it will obviously take a decent time period for the market to be convinced that these issues are in the past and will not happen again.
Summary
There is no doubt that the residential market in the UK is slowing down with both activity levels and house price growth indicators highlighting the reduced levels compared to what we have seen over the past few years. Whilst some of this slowdown could be explained by the higher level of property prices, uncertainty over Brexit or concerns over a slowing economy it is probably a combination of all of these factors that have influenced the market during the last three months.
Although the market isn’t as buoyant as we have seen over the last few years there is a real resilience to the residential market in Liverpool City Centre that has continued throughout the last few months of 2018 and into the early days of 2019. Whilst the city is most definitely not immune from any weakness in the wider UK residential market we genuinely believe that the city will continue to outperform the wider market over the coming months and years.
Whilst Brexit is logically one of the main concerns in the market we don’t believe that this offers any more risk to prices/activity than a general economic or housing slowdown would cause on their own. Actually a positive outcome to Brexit may well cause a return of confidence/relief rally in the market, especially as many of the property purchases in the city centre are not always for owner occupation. Whilst most are concerned that a hard/no deal Brexit would be awful news for the market forget that such a scenario may well result in a collapse of sterling which would make the city’s property market more attractive for overseas buyers.
Whatever the outcome of Brexit it’s about time we know what the outcome is….!!!
Alan Bevan Managing Director City Residential January 2019 0151 231 6100 07970 498187 [email protected] www.cityresidential.co.uk
NEXT ISSUE: April 2019
You can now also download all back copies of our Liverpool City Centre reports from our website
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 and 2017 totalling nearly £7,000
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 Honeys 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”