Liverpool city centre has been transformed by young people moving in but the city now needs to create more jobs to keep them, according to new research published today (Wednesday) by ippr's Centre for Cities. The research shows that after decades of decline, Liverpool's city centre population grew by 40% during the 1990s. The current population is around 15,000 people, two-thirds of whom are students and young professionals.

But focus groups show that many young professionals are looking to move to more family-friendly areas like Knowsley, Ormskirk or Warrington or want to move away to find work.

The report will be launched in Liverpool today with Cllr Warren Bradley, new Leader of Liverpool City Council and Tom Bloxham MBE, Chairman of property development firm Urban Splash.

The report shows that half the people of working age living in Liverpool's city centre are students and that over 80% of the increase in the city centre's population was in people living in communal blocks. People living in the centre of Liverpool are twice as likely to be single than the national average. Twenty-eight percent are aged 20-24, compared with just six percent nationally. More than a third of working residents in Liverpool city centre walk to work, compared to a national average of around 1 in 10.

There is a ‘conveyor belt effect' in Liverpool, with most people staying only a few years. A third of residents move in or out each year, around three times higher than the national average.

ippr focus groups show that shops, bars, cafes, being able to walk to work and the city centre ‘buzz' are the main attractions. Retail, leisure and nightlife were far more important than art galleries and concert halls.

Max Nathan, Centre for Cities Senior Researcher and report author, said:

‘Students will remain the driving force of Liverpool's city centre but there is intense competition for skilled jobs in the city. Many residents will have to find work elsewhere. Liverpool needs to keep growing its economy, to ensure these high-skilled workers have jobs to go to.

‘The city has done a good job in bringing thousands of people into the city centre. But the next step is to tackle the ‘doughnuts of deprivation' in nearby inner suburbs. Areas like Canning and Hope, and further out, Picton, Wavertree and Princes Park offer a great opportunity to provide the houses, parks, schools and healthcare that families told us they want.'

Tom Bloxham MBE, Chairman of Urban Splash said:

‘The city centre living phenomenon has been with us over 15 years now. But as city centres have recovered, many areas nearby have stayed the same. Regenerating these inner ring neighbourhoods is the big priority for the decade ahead.'

Warren Bradley, Leader of Liverpool City Council, said:

"The renaissance of Liverpool's city centre has been one of the success stories over the last decade. We are using the city centre as the driving force to attract new residents, businesses and investment to regenerate the city. Liverpool's city centre population is continuing to grow with high-quality developments. We are building a diverse range of developments to ensure we have a sustainable city centre community. Whilst the influx of students and young professionals into Liverpool is very welcome and has played a major part in the transformation of the city centre, it is only part of the story. We are determined to ensure that city centre renewal is linked to our local neighbourhood agenda including Housing Market Renewal, new schools and retail."

City People: City Centre living in the UK, by Max Nathan and Chris Urwin, is available from here. A five page briefing on Liverpool is available here.

Notes to Editors:

Liverpool city centre factfile:

• Total Population (2005 estimate): 15,000
• Total Population (2001): 13,500
• Total Population (1991): 10,000
• Aged between 18-34: 62%
• Single people (as a percentage of adult population): 75%
• Students (as a percentage of working age population): 50%
• Percentage living young professional lifestyles: 16%
• Percentage living low-income lifestyles: 30%
• Percentage of rented households: 73% (47% social, 26% private)
• Percentage of 16- 74 population that are graduates: 26.5%

The report tracks a long post-war decline of city centre populations and then a resurgence over the last ten years. City centre wards lost around half their population between 1971 and 1991, but Liverpool's city centre population grew around 40% between 1991 and 2001 to a total of 13,500 people.

The initial spate of office, loft and warehouse conversions has expanded to include large numbers of new-build studio and one or two-bed flats, aimed at the buy to let market. Nationally, 20% of Britons live in flats or apartments but 62% do in Liverpool city centre.

The Centre for Cities is an independent urban research unit, based at the Institute for Public Policy Research (ippr). Launched in March 2005, it is taking a fresh look at how UK cities function. Tom Bloxham MBE is the Chair of the Centre for Cities' Steering Group.