Assetz® News - Liverpool in culture capital boost

Liverpool in culture capital boost

8th September 2008 |

Those who wonder how much a city or area that has been down-at-heel for some time can gain from hosting a major event may have seen all the evidence they need in new figures produced in a study of Liverpool.

Since the city was awarded the title of 2008 European Capital of Culture, there have of course been the usual parochial critics from Manchester or the south, questioning what Liverpool had to offer or what it could achieve. But whatever the aesthetic or cultural verdicts on the years' festivities may be, what appears clear is that the city has gained significantly from the status it has had this year.

A study by Halifax has shown that since the decision to award the Capital of Culture title to Liverpool in June 2003 the average house price has risen by 76 per cent from £ 79,886 to £140,842. This compares with 69 per cent for the north-west region and 50 per cent for England as a whole in the same period.

Moreover, this is not a phenomenon driven by just a few areas being improved for the occasion with shiny new apartments costing eye-watering prices. Sixty six per cent of L postcode districts saw higher growth than the regional average and 86 per cent outstripped the English figure.

Furthermore, the greatest increase in prices came in L5, comprising Anfield, Everton and Kirkdale, which saw a 216 per cent rise from £24,142 to £76,403. This area, as the names indicate, is the district in the north of the city where the city's two football clubs are based and where the dominant landscape is one of back-to-back terraces.

So the evidence suggests that Liverpool as a whole has benefited from the development and attention it has received. Discussing the findings, Halifax chief economist Martin Ellis said: "Prices have been boosted by the regeneration in Liverpool's infrastructure in preparation for this year's festivities. Additionally, the demand for good quality, affordable housing has remained high due to Liverpool's close proximity to key towns and cities."

The situation is not necessarily constant or ongoing. Land Registry figures obtained by the BBC show that this year Merseyside has not been performing particularly well. It has recorded a 2.1 per cent drop in prices (albeit with a second quarter rise of 0.5 per cent). Instead, the north-west's best performer in the year to June 2008 was Blackpool with a 1.5 per cent rise, while the second quarter's top area was Blackburn with Darwen, which enjoyed a 9.1 per cent surge in prices.

Yet whatever these shorter-term findings, the success Liverpool has had suggest there is ample evidence that even areas with negative images can revive themselves and make good places to invest. For this reason many investors will already be looking at east London as the Olympics approaches. With many of the competitors in 2012 gathering again in Scotland in 2014 for the Commonwealth Games, Glasgow may also be worth looking at. The big event can, it appears, be the big catalyst for growth.