Liverpool property market set to prosper

Liverpool is set to experience a supply shortage which will result in the rising price of its residential property market, according to a top national estate agent.

The statement has been issued by Neil Chegwidden, a partner at King Sturge in London, who is visiting the city next week (Friday 26^th March) to address a conference of North West investors.

The event, which is open to the public, has been organised by international property group Grosvenor and is taking place at its One Park West apartment scheme in Liverpool One.

Over recent years the population of Liverpool has stabilised after decades of decline and now stands at around 450,000. The city region as a whole, incorporating Wirral, Sefton, St Helens, Knowsley and Halton, is about 1.5 million.

Cautious estimates from National Statistics suggest the city's population could swell to 473,000 by 2029 with the number of over-60s predicted to soar to 91,000, making up one-fifth of the city's residents by 2017.

With few new residential developments in the pipeline, experts say that demand will very soon outstrip supply pushing up prices.

Speaking prior to the seminar, Chegwidden said: "2007 saw the height of development activity across the three Northern England regions where 44,500 residential units were built compared to 23,350 in 2009.

"With population figures increasing year on year, this basic analysis suggests that residential development will have to return to and then surpass the levels seen at the height of the recent development boom, in order to meet projected demand.

"It will be interesting to see how residential market developers, financiers, planners and local authorities rise to this challenge, because unless they do, it is likely there will be a significant upward pressure on residential prices given the anticipated and widening gap between demand and supply.

"This is a positive indicator for potential buyers who could see good capital growth from their property if they invest in Liverpool's current residential offering.

"Residential property in the UK has delivered investment returns well in excess of UK shares over the past 39 years and, despite the near-term outlook for housing, we expect strong performance from the residential sector over the medium term."

The Investors Day event takes place on Friday 26^th March 2010, 2pm-5pm and features expert speakers Guy Butler, Grosvenor, Neil Chegwidden, Steve Hogg and Martyn Green, from King Sturge and Matthew Carragher, from Savills Private Finance.