Rents in Liverpool are unlikely to rise at a faster rate than house prices over the next five years, according to a local landlord.

A new report by Savills suggest rents across the UK will rise by 19% between now and 2021, while house prices will only increase by 13% – but this is not believed to be the case in Merseyside.

Luxor Estates managing director Paul Nicholson says factors including the new stamp duty surcharge, the reduction of tax reliefs and Brexit uncertainty will not have as great an impact on the market in Liverpool compared to London.

He tells Your Move: “I don’t believe this will apply to Liverpool as it’s an extremely buoyant market offering investors further afield attractive yields. With the plateau of student developments we are now seeing true PRS development which is peaking interest of institutional investors. If anything the weakening of the pound has encouraged overseas investment.

Luxor Estates managing director Paul Nicholson

“The flexibility of the pension system has also acted as a stimulus for the local market. The proposed developments in Liverpool over the next five years will generate significant investment and increased employment which will be an economic catalyst to trigger house price growth.”

Paul goes on to say Liverpool’s rental market will remain on pace with the housing supply and predicts that more investors will look to Merseyside as a result of the London market conditions.

He adds: “The rental market maintains pace with short supply of housing and increased quality in rental stock which is now more in demand. The effect of this is to improve yields which conversely will result in increased prices in the local investment market. The strong yields generated also lessen the impact of new serviceability requirements imposed by lenders as they can still meet the new rental cover requirements.

“The changes to the property market may dampen enthusiasm in areas such as London but can only be a good thing for the local market as more investors seek solace in the city. I think the Liverpool housing market will go from strength to strength making Liverpool an exciting and evolving city.”

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