Property demand rises by 3% during Q2 of 2016

The latest National Hotspots Index for the second quarter of 2016 has today been released by estate agent eMoov.co.uk.

This Index looks at property demand levels across Britain, recording the changing supply and demand for the UK’s most popular locations. It monitors the number of properties sold in contrast to those actually on sale.

Rising demand

Figures from the latest Index shows that property demand in the UK has risen by 3% from quarter one to stand at 40%. Homeowners in London saw demand fall by 2% to 39%.

Despite the rise in demand ahead of April’s Stamp Duty deadline, changes to this tax have had a detrimental effect on the capital’s property market as a whole.

If London is removed from the national figures, demand for property has actually risen by 8% since the first three months of the year.

Hotspots

The London borough of Bexley is the hotspot for UK property demand, with 71%. Outside of the capital, Bristol leads the way for demand, with 69%.

In the North East, there has been a resurgence in terms of interest in housing. Stockton-on-Tees (47%), North Tyneside (46%), Gateshead (42%) and Durham (37%) have all seen notable increases in demand from the firs quarter of the year.

Stamp Duty impact

Russell Quirk, founder and CEO of e.moov.co.uk, said, ‘the changes to stamp duty tax brackets for those looking to secure a second home or buy-to-let property seem to have hit the London market harder than the rest of the UK.’[1]

‘Despite London tending to drive the UK market as a whole, it would seem for once, it has taken a back seat whilst the rest of the UK has enjoyed upward growth on the first quarter of this year. That said, national demand is still lower than the levels seen at he back end of last year and the big decider on which way it goes now will be Britain’s choice to leave the EU’, he continued.[1]

Concluding, Quirk said, ‘there has been a lot of talk about the consequence of this vote on the UK property market with many forecasting a detrimental impact on house prices. We don’t believe this to be case and I’m certain that come Q3, our Index will show a further increase in property demand across the nation.’[1]

[1] http://www.propertyreporter.co.uk/property/property-demand-up-3-in-q2-says-emoov.html