House prices in Liverpool have skyrocketed since it was confirmed the city was to be European Capital of Culture for 2008.

Research form Halifax Estate Agents shows house prices on Merseyside have risen by an average of 76 per cent – from £79,886 to £140,842 – since June 2003, when the city was designated as European Capital of Culture.

The growth in house prices in the city has outstripped both the average house price growth across the north-west (69 per cent) and England (50 per cent).

European Capital of Culture events have seen Sir Paul McCartney take to the stage at Anfield, Sir Simon Rattle present his Berlin Philharmoniker and a host of artistic exhibitions and events.

Furthermore, all the other five cities that made up the final shortlist have experienced lower house price growth than Liverpool since June 2003.

Newcastle and Gateshead recorded the next highest rate of growth, at 64 per cent, followed by Birmingham (46 per cent).

Oxford has delivered the smallest increase (35 per cent) over the last five years.

“Since Liverpool was designated the European Capital of Culture for 2008 five years ago, property prices in the city have risen sharply,” explained Martin Ellis, chief economist, Halifax.

“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 findings seem to counterbalance those of the Policy Exchange, which argues northern cities have lost their reason d’etre and should be written off.

With an average house price of £265,157, L37 (Formby, Great Altcar) has the most expensive average property price. This is 88 per cent higher than the average house price in Liverpool (£140,842).

The least expensive properties are in L5 (£76,403).