House prices in Liverpool have rocketed, according to the latest figures reports the Liverpool Echo.

The average house price in Liverpool has shot up by a whopping 12.5% in just one year, going from £119,282 in March 2017 to £134,245 this year.

New figures released by the Office for National Statistics show house prices in Liverpool went up by nearly three times the national average of 4.2% over the course of a year.

According to property experts, the figures reveal Liverpool currently has one of the strongest property markets in the country.

So, why have house prices in Liverpool seen such a dramatic increase, compared with the rest of the UK?

Sam Mitchell, CEO at online estate agents Housesimple.com, told the ECHO: “First time buyers and buy-to-let investors are being drawn to Liverpool like a moth to a flame – and local property markets are booming.

Investor money is pouring into Liverpool, attracted by a strong rental market and healthy capital growth.

Buy-to-let investors have deserted London, as they’ve seen their profit margins eroded by the 3% additional stamp duty charge on second homes and mortgage interest tax relief being cut.

“They are seeking high yields and strong house price growth to counteract these tax changes, which is making the North West very appealing.”

Mr Mitchell added: “First-time buyers are taking advantage of the stamp duty freeze and are snapping up good quality affordable housing – not just existing stock, but also new build homes, as developers are piling in to meet strong demand.

“The local economy is thriving, boosted by the Government’s Northern Powerhouse strategy, and that is also attracting people into Liverpool for work.”

Lawrence Hall, a spokesperson for property website Zoopla, said: “For a number of years now, Liverpool has been widely regarded as a hotbed of property and infrastructure investment. Therefore, it comes as no surprise that the city has seen a considerable rise in average prices.

“With major projects currently underway, along with 84% of homeowners in the North West believing an average 6% price rise will happen over the next six months, it is possible that Liverpool will remain a city to watch when it comes to property values.”

The traditional ‘north-south divide’ in property prices seems to turning on its head, with house prices in London seeing negative growth compared with Liverpool’s booming property market.

Sam Mitchell, from Housesimple.com, said: “Where affordability has been a major problem in the south of England, the north offers value, particularly for families looking for larger homes.

“And, with an improving transport network to the north of England and thriving regional business hubs in large cities such as Manchester and Liverpool, we can expect to see far more people heading north.”

For the full story on the Liverpool echo website please click here