Real estate agent ‘blown away’ by ‘crazy’ Liverpool property market as prices skyrocket

Real estate agent 'blown away' by 'crazy' Liverpool property market as prices skyrocket

A real estate agent and real estate legal adviser said he had been ‘blown away’ by the Liverpool property market during the pandemic.
Joseph Gervin, director and founder of (LPS) Liverpool Property Solutions, said a property he bought in 2005, on Ashbourne Road, for £ 140,000 will now cost over £ 240,000.

He said the majority of that growth has happened over the past two years, he said: ‘Ashbourne Road, probably two years ago I would have looked to reach £ 180,000 so there is probably had a raise of £ 45,000 in about 12 years.

“But in the last two years it has grown again by 45% in this area.

“A friend trying to buy there by the minute I couldn’t find a property between £ 250,000 and £ 500,000 for them.

“The big problem is the supply, the demand is huge but the supply is difficult and that drives up the prices. ”

Traditionally, southern Liverpool, including Aigburth and Wavertree, have always been popular areas of Liverpool, Joseph says.

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But now there is a high demand in the city center, Bootle and Litherland due to its proximity to the city and the future EFC Bramley Moore stadium.

Joseph saw firsthand how the property market has grown massively in Liverpool over the past year alone.

He compares the current property boom to what happened between 2006 and 2008, when it was the capital of culture in Liverpool.

Joseph said: ” [Back then] Regeneration was underway in various places in Liverpool, we had the City of Culture wave, so there was great enthusiasm back then and with Liverpool ONE as well. ”

He added: “The market is very strong as the demand for properties for sale in Liverpool is huge, probably tied in 2006, when we were at the crest of a wave at the time. ”

The main reason, says Joseph, is because of mortgage interest and stamp duty.

He said: “The first thing is that mortgage interest rates are at their lowest ever.

LPS real estate in Liverpool

“Second, the stamp duty, since the government bought it last year, the hiatus has saved many first-time buyers and movers massive amounts of money. ”

Another reason is that homeowners’ living conditions have changed with working from home and the pandemic.

“The other big reason is because of the lockdown we had last year.

“I think a lot more people have watched it and have been working from home for a long time and they want a change,” he said.

Mortgage interest rates and stamp duty are the same factors across the country, but Joseph says Liverpool in particular has seen an even bigger increase in real estate interest.

The reason being that Liverpool is a great city for investors.

On average, Joseph says, there are about three homeowner investors looking to buy property in Merseyside.

The popularity of the market has both advantages and disadvantages. Home prices are higher, so it can be more difficult to get on the market.

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But on the other hand, there is more profit to be made and the houses don’t stay on the market for too long.

Joseph said: “Investors see Liverpool as one of the great cities in the UK, for every property to come we have three investors for an owner-occupier. ”

This week new figures have shown Liverpool are outperforming London.

Joseph backs this up with a few market examples from an investor perspective in the South.

He said: ‘If you are used to being an investor in Essex or Kent your average properties are £ 350,000 / £ 400,000, if you buy two properties that could earn you £ 2,000 from rent.

“You could come here with that money and actually buy eight decent properties at around £ 650 to £ 700 in rent.

“So rather than making £ 2,000 in Kent with two properties, you could get over £ 7,000 in Liverpool, so that’s the low capital outlay for the attraction. ”

As a result, those who wish to move home are “struggling” in the current climate.

Joseph said: “In essence, a first-time buyer or mover faces competition for investors, the only thing that is probably in favor of movers is that they focus on one accessory rather than three, four out of five, and a mover is usually more ready to go.

“As investors mix between cash and mortgages.

“But yes, movers find it difficult to move because investors compete with them at a fairly high level. ”

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Joseph said he was recently ‘blown away’ when a property with an indicative price of £ 450,000 between Wavertree and Sefton Park surpassed £ 500,000.

He said: “I have been blown away by how things have gone over the past twelve months because the supply is so limited and the demand is quite high. ”

Joseph started the company 15 years ago, now LPS has a real estate agency on Tithebarn Street, he said: “I started in 2005, bought my first properties in Wavertree, then started to buy properties on behalf of investors and advise them to buy in Liverpool.

“We built our agency as a result of this. ”

On why he chose Liverpool to start his business, Joseph said the rental economy was second to none.

He said: “The most important thing for me is that Liverpool have always had a strong rental economy.

“For me, I know the first couple bought there was no problem finding tenants and even then that was before Rightmove and Zoopla.

“It was just to do your traditional announcements – but there was still a strong rental demand.

“So we were doing this before a lot of agencies cared about it, so we were buying on behalf of investors and we were building a rental portfolio. ”


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