Despite the shift on the property market this year, homes in Liverpool are still fetching up to £50,000 more than the listing price.
Sutton Kersh has held one of its final auctions of the year and found that its event defies the wider market trend of buyers tightening their belts. The penultimate auction saw more than £7,000,000 worth of property sold, despite soaring interest rates.
Various other property and landlord regulation and legislation changes are also causing a shift in the market but it seems in Merseyside, the demand for housing is still high. Sutton Kersh explained that the property industry has seen a huge shift away from the recent fast pace over the last year.
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Throughout the pandemic and lockdowns, houses were selling as soon as they were listed and vendors were receiving multiple offers, but now vendors are much more nervous about going to market with their property.
Even with the current uncertainty, however, the auction saw some properties selling for tens of thousands over the guide price.
Sutton Kersh said an example of this is a property in Beaconsfield Street in Liverpool L8, which had a guide of £65,000 but ended up selling for £122,000 – a huge 88% above the guide price. The three storey dormer style terrace house already has double glazing and central heating.
However it is in need of some upgrades and refurbishment works. After they have been carried out, estate agents say the property would be suitable for occupation, resale or investment purposes. Once refurbished the potential rental income is approximately £10,200 per annum.
Another highlight included 39 Garmoyle Road in the popular area of Wavertree L15, which had a guide price of £175,000 and after an intense bidding war sold for £230,000. The six bedroom end of terrace property is another one that requires some investment but would then be perfect for someone to move into or rent out.
The property has previously been let to 6 tenants and the HMO Licence expired in August 2023. The potential rental income when let to 6 tenants is approximately £30,000 per annum.
Another residential home in the ever-desirable Woolton area of Liverpool, on North Linkside Road, sold for £51,000 over its guide price of £150,000. The three bedroom semi detached house benefits from double glazing, front garden with driveway and large rear garden.
With this home there is also potential to extend the property to the side and rear subject to any consents, and to also provide a loft conversion. It’s described as a “blank canvas” which the buyer can put their own stamp on and make a family home.
Sutton Kersh's next auction will take place on December 7, 2023. Cathy Holt, Association Director of Sutton Kersh Auctions, said: “The interest in the market is certainly still there but there is without a doubt a lot more caution, especially around pricing with increased focus on perceived value and return on investment.
“There is also an issue around financing which is frustrating buyers and putting them off, as the process itself is taking twice as long as it should do with more stipulations now in place. With that being said, certain types of properties, like vacant residential properties in rental or desirable residential areas, are still in extremely high demand.”
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