Five Reasons the North-West Property Market is Thriving
Some areas of the UK are performing better than others in 2023 when it comes to the property market, but there is one region that stands head and shoulders above the rest – the North West.
With major cities like Liverpool and Manchester, as well as thriving towns such as Crosby, Wigan and Chorley, there are many property markets in the North-West that have benefited immensely from the favourable economic climates of recent years.
Property experts Savills have predicted that the North-West will see the highest price growth of any region in the UK, with prices set to rise by an eye-watering 11.7% by 2027.
There are numerous reasons why this is the case, from affordable house prices giving room for substantial growth, to massive regeneration efforts across the entire region.
Let’s get into it.
Affordable House Prices
The North-West has some of the most affordable house prices in the entire nation, making it an ideal landing spot for those seeking to jump onto the property ladder or for those looking for a cheaper property.
For example, London has a current average property price of £726,839 according to Zoopla. Compare this with Liverpool’s average price of £196,181, and you see a difference in price of over 370%!
Even when you compare London to Manchester, a larger city in the North-West with higher house prices than Liverpool, the North-West city is still over 286% cheaper than the UK’s capital.
This is a big reason why the North-West’s property market is thriving in 2023, as it is much more affordable to buy property than in other areas of the UK.
Incredible Price Growth
Combined with the affordable prices the area has to offer, the North-West has seen house prices grow considerably over recent years, while expert projections predict that future growth will similarly lead the UK.
Land Registry data indicates that the North-West has seen price growth of nearly 35% in the five years since 2018. Taking into account we’ve seen a global pandemic and a cost of living crisis during this time, that is an impressive feat.
Taking a closer look and some cities in the North-West performed better than the already outstanding regional average. Liverpool, for instance, has a five-year growth of over 43%. In real money terms, this is a jump of over £50,000!
Given the already affordable house prices in the region, there has been more room for growth in the North-West compared to other areas of the UK. When combined with other factors mentioned in this blog, it is easy to see why the North-West has lived up to its potential.
In terms of future growth, the North-West is at the top of Savills’ predictions for the UK, with a predicted five-year price growth of 11.7%. Whilst this isn’t as high as the last five years have been, this is because the UK property market is facing reduced growth across the board rather than any difficulties within the region.
Major regeneration schemes and funding all over the North-West have helped to draw newcomers to the region whilst raising property prices in previously run-down areas.
In Liverpool alone, there have been several major regeneration schemes that have put billions into the city’s economy. Between the Baltic Triangle, Liverpool Waters, the Knowledge Quarter and LiverpoolONE, there have been many major efforts that have transformed Liverpool’s landscape and skyline completely.
Manchester is not one to lag behind in this regard, as there has been plenty of Manchester city-centre regeneration. MediaCityUK has become a thriving hub of startups and big businesses, while Spinningfields is injecting £1.5 billion to the city’s economy.
Other areas of the North-West are also benefiting from regeneration efforts. Wigan’s town centre is being redesigned in a major £135 million project, while the Bootle Strand district is seeing a £20m investment from Sefton Council.
Anywhere you look in the North-West, you’ll see regeneration projects and the positive effects they bring.
Thanks in part to the aforementioned regeneration schemes, the economy of the North-West is thriving, making it a fruitful ground for new businesses and homeowners alike.
Both Manchester and Liverpool were placed in the global top 10 locations for startups by Startup Genome thanks to the high concentration of STEM graduates, successful research hubs and funding. Estimates place the North-West’s startup economy as being worth around $9.2 billion.
Outside of startups, the North-West accounts for 10% of the UK’s GBP, making it a valuable region. Technology, media and telecoms are some of the area’s largest sectors, with major employers like Sony, the BBC and BT employing thousands across the North-West.
This makes the North-West one of the most thriving economies in the UK, which is a big reason why the property market is doing so well. Professionals are moving to the region to make the most of the incredible career opportunities, while businesses are choosing the North-West thanks to the incredible benefits of operating in the area.
The student housing sector is an important aspect of any property market. There are approximately 2.2 million full-time students in the UK, the majority of whom need term-time accommodation that is close to their universities and affordable.
This number is growing as well, with the 2020/21 academic year seeing the UK’s student population rise by 8%. Therefore the need for a strong student property market is also rising, and the North-West is more than up to the task.
There are several prestigious universities in the North-West region. The Times Higher Education top 100 universities in the UK has 8 North-West universities in the rankings, with the University of Manchester in the top 10 and Lancaster University and the University of Liverpool in the top 25.
Thanks to the range of popular and respected institutions in the North-West, the student market is thriving, with thousands moving to areas such as Liverpool, Manchester and Ormskirk to study.