LIVERPOOL city centre’s apartment rental market is booming, with transactions up almost 50%, while sales have continued to flounder.

Estate agents said last month they experienced “mania” with one firm letting 83 units – an increase of 47%, compared to September, 2008. Such was the “frenzy” that some tenants took apartments without even seeing them.

Agents said demand had partly been led by students who were increasingly opting to live in the city centre and a number of new schemes becoming available.

Average rents in the city centre now stand at around £600 a month, still down 4% year-on-year.

But the price of city centre flats has continued to fall in the last quarter – the average apartment now costs £137,050, down 13.68% compared to last year, said estate agency City Residential.

There are currently more than 450 apartments for sale in and around the city centre.

And with so many flats to choose from, investors are demanding reductions of up to 30%, said Paul Lea, of Venmore estate agents.

Alan Bevan, of City Residential, warned that half of all flats on the market were probably still over-priced.

“While we expected the improvements made to the city would have a positive effect, we had no idea that it would make such a dramatic difference,” he said.

“We have even seen tenants wanting to let apartments without seeing them, such has been the frenzy to find accommodation especially during September.

“Although rental levels have stayed much the same during the quarter, transactions have gone through the roof.

“City Residential let 175 apartments in the three months to September, 2009, with an amazing 83 units in September alone.”