By Tony Booth

The last five years have seen it shrink under the shadows of Leeds and Manchester, but it is now starting to shine again - and next year it becomes the European Capital of Culture, which I think will kick-start a new cycle of prosperity for resident homeowners and property investors.

The huge range of festival events planned for Liverpool's 2008 European Capital of Culture (ECOC) is already helping reinvent the tired-out image many people have of the city. Until the ECOC bid was announced, people's initial stereotypical impressions involved hoodies, football hooligans, militant politicians and a local economy heading for bankruptcy. Of course in reality the city is a very different animal - rich in architecture, brimming with musical heritage and dynamic in development.

The ECOC will undoubtedly promote these positive elements to a much wider audience, which in turn should swell Liverpool's already impressive tourism industry, improve the economy and subsequently help attract many more property investors. The end result could transform the way people view Liverpool, which would significantly influence property values and offer more long-lasting benefits than any regeneration or development scheme. That said, there are development schemes going on too - and some are of considerable magnitude.

Culture catalyst