Property demand across the UK rose by 3% over the second quarter (Q2) of the year, according to the latest National Hotspots Index from hybrid estate agent eMoov.co.uk.
The property hotspots study records the change in supply and demand for the most populated locations across the UK, by monitoring the total number of properties sold in comparison to those for sale.
The national average
Over the UK as a whole, property demand rose by an average of 3% between Q1 and Q2 this year, now standing at 40%.
However, it’s not good news for homeowners in the capital, with demand in London down by 2% to 39%.
Despite an artificial surge in demand ahead of April’s Stamp Duty deadline for second homeowners and buy-to-let landlords, the tax change seems to have had a detrimental affect on property demand in London.
Excluding the decrease in demand in the capital, the rest of the UK has experienced a significant 8% rise in property demand since Q1.
Property Demand Up by 3% in Q2
Property hotspots
Despite a slowdown in demand in the capital, the London Borough of Bexley remains the top hotspot for property demand in the UK. At 71%, demand for homes in Bexley is the highest across the nation, although it has dropped by 7% since the start of the year, in line with the decline seen across the capital as a whole.
Bristol remains the hottest spot outside of London, with property demand increasing to 69% between Q1 and Q2. Bedford, at 67%, also retains its place as the third property hotspot of the UK, as commuter zones around the capital continue to grow in popularity, due to sky-high housing costs in London.
Aylesbury has climbed two places to take fourth place, with demand now at 64%. Medway (64%), Ipswich (61%), the London Borough of Sutton (61%), and Watford (61%) have also retained their top ten spots.
Both Cambridge and Milton Keynes have dropped out of the top ten, and have been replaced by Northampton and Coventry, where property demand now stands at 64% and 58% respectively.
Edinburgh continues to lead the way north of the border, with the Scottish capital sitting in 18th place, at 54%, ahead of Glasgow (48%) at 34th. This is also the case in Wales, where property demand in Cardiff stands at 44%, putting it at 44th on the list, while Swansea sits in 90th place, at 27%.
Greatest growth in property demand
It’s not all bad news for the capital, as Kingston upon Thames, at 59%, and Southwark, at 47%, are two of five boroughs to have recorded an increase in property demand since Q1.
There has also been a resurgence for property demand across the North East, after a difficult year for homeowners in the region.
Cold spots
At just 12%, the City of Westminster continues to be the coldest spot in the UK for property demand, joined by its prime central London neighbours, Kensington and Chelsea (12%) and Hammersmith & Fulham (17%).
Despite a slight revival in Q1, demand for property in Aberdeen is also incredibly low as of Q2, at just 13%.
The founder and CEO of eMoov, Russell Quirk, comments: “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.
“Despite London tending to drive the UK market as a whole, it would seem, for once, it has taken a backseat whilst the rest of the UK has enjoyed upward growth on the first quarter of this year.”
He continues: “That said, national demand is still lower than the levels seen at the back end of last year, and the big decider on which way it goes now will be Britain’s choice to leave the EU.
“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 the case and I’m certain that come Q3, our index will show a further increase in property demand across the nation.”