The fourth and final Property Demand Hotspots Index of the year has been released by online estate agent eMoov.co.uk, detailing which parts of the country have experienced the largest increases and decreases over the past quarter.
The index grants a percentage score for each area based on the level of housing stock available on the major property portals against that which has already sold, before calculating the total change.
The data shows that, nationally, property demand has dropped by 7% over the last quarter, now standing at 38%.
The Top 10 Hotspots for Property Demand Revealed
Bexley, at 65%, has dropped to third place from its usual top spot, toppled by Solihull (77%) and Portsmouth (67%). Demand is at 65% in Bristol, while Northampton (60%), Medway (59%), Gloucester (58%), Ipswich (58%), Bedford (57%) and Edinburgh (57%) complete the top ten.
However, it is the locations where property demand has increased the most over 2016 that provides a peculiar coincidence; nine of the top ten begin with an S.
With the London market slowing due to a combination of higher Stamp Duty rates for second homes and a lack of foreign interest post-Brexit, it’s the Midlands and northern regions that have shown strength. With six out of the top ten areas with the highest growth located here, it seems UK buyers are stoking the engines of the Northern Powerhouse.
Landlords looking for new investments in 2017 should look to the northern regions of the country for affordable house prices and high tenant demand.
Stockport, in the North West, has experienced the greatest increase in demand over the year, up by a huge 126%, with Stoke-on-Trent (112%) in the West Midlands and London’s only entry, Sutton (110%), also enjoying triple-digit growth.
Demand in Sheffield has risen by 99% in 2016, with Sandwell (83%) and Solihull (79%) representing the West Midlands. Swindon (74%) and Somerset (65%) sandwich Bradford (67%) as the only areas from the South West, while Southampton (63%) is the only entry from the South East.
Outside of the top ten, Highland, Gateshead, Salford, Manchester and Hull all recorded increases in demand of more than 50% over the past year.
The largest decreases were seen in Sunderland (63%), Swansea (57%), Hounslow (51%), Lambeth (46%), Camden (45%), Southwark (43%), Shropshire (42%), South Lanarkshire (42%), Westminster (39%) and Aylesbury (39%).
The Founder and CEO of eMoov, Russell Quirk, comments: “A tough year for the UK market, but it has come through it relatively unscathed.
“Although changes to second home Stamp Duty thresholds and the leave vote may have tainted demand slightly due to an air of uncertainty, there seem to be a number of areas that have benefitted, with the market almost turned on its head in terms of desirability to buyers.”
He continues: “2016 seems to have been a bit of a leveller where the property market is concerned, with many of the so-called weaker markets really seeing a spike in buyer demand, which will, in turn, result in a healthy increase in prices going into the New Year.
“Worrying for homeowners in the likes of Aylesbury, Hounslow and Camden though. These areas were ranking consistently quite highly where demand is concerned, but this seems to have dropped off considerably during Q4 and homeowners and sellers in particular could receive a lump of coal this Christmas when it comes to the price of their property.”