Liverpool vs London: How Do These Cities Compare?

Contributed by RW Invest, 24 January, 2018

Both Liverpool and London are rich in culture, stunning architecture and innovation but where should you invest?

Lord Byron referred to London as 'A mighty mass of brick, and smoke, and shipping,' and, from the River Mersey, Liverpool does not appear dissimilar. Both cities are home to two of the UK's most iconic skylines; ships come and go, decorating the historic docklands, which are now lined with modern businesses and stylish bars. But where should you make your next property investment?

When it comes to property, Liverpool and London couldn't be further apart. According to Zoopla, the average house-price paid in London in the last 3 months is a staggering £671,412. The average price paid in Liverpool on the other hand is a modest £158,299.

According to recent figures, more people than ever before are leaving the Big Smoke than are moving there. Many are now looking to the more affordable and up-and-coming cities of the Northern Powerhouse such as Manchester and Liverpool. Accordingly, investors are following.

House prices are now rising in all parts of the country except London. London's house prices have in fact fallen for the first time in eight years.

According to recent data from Nationwide Building Society, London is underperforming the rest of the UK with property prices in the capital having fallen between July and September by 0.6 percent compared with the same period last year.

This blow to London's property market is leading buy-to-let investors to set their sights further afield in favour of up-and-coming northern hotspots where property is cheap and returns are high. Now, north-west and north-east homes are set to rise at twice the London rate in the next five years.

RWinvest in Liverpool

Following the London Olympics in 2007, RWinvest sold a wealth of property in both East and South London. Between 2008 and 2014, business within the London market was flourishing – London was truly the place to invest. Throughout 2015 and 2016, however, the market came to a halt and business proved slow.

As we can now see, these years foreshadowed the all-time low the London property market is experiencing in 2018. In the face of London's decline, we are now focusing on the Liverpool property market and have even relocated our headquarters from London to Liverpool.

We can assert that Liverpool is a city that offers strong investment opportunities. The city is now proving more and more popular with investors due to its winning combination of low property prices and high rental yields.

Liverpool's Regeneration

Liverpool is experiencing phenomenal regeneration. The city has secured a significant number of regeneration projects including the: £350 million L2 Superport, £150 million Project Jennifer, £260 million Anfield Stadium Regeneration, £1 billion Liverpool ONE Shopping Centre and the £5.6 billion Liverpool Waters.

This regeneration is set to grow even further over the next 10 to 20 years. Liverpool's Knowledge Quarter for instance is currently benefitting from over £1 billion of investment. The team behind Knowledge Quarter Liverpool (KQ Liverpool) aim to reposition the city at the forefront of global innovation.

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