London property demand cools while Midlands interest soars

Demand for property in London has fallen since the start of the year but the rest of UK is experiencing an upward trend, according to a report.

Hybrid lettings agent eMoov identified UK’s top property hotspots for April-June marking a 3 per cent increase in demand nationwide.

Founder and CEO of eMoov.co.uk, Russell Quirk, commented:

“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 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 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.”

London property demand has fallen by two per cent since December but the London Borough of Bexley remains the hottest spot in the UK for property demand. Kingston Upon Thames (+59%) and Southwark (+47%) are two of only five boroughs to have seen a positive increase in property demand levels since January-March and are the first and second largest increases across the UK respectively.

At 71%, Bexley is the highest across the UK followed by Britol (69% increase since January-March) followed by Bedford (67%). Aylesbury and Medway (64%), Ipswich (61%), the London Borough of Sutton (61%) and Watford (61%) all sit in eMoov’s top 10.

Cambridge (21st) and Milton Keynes (15th) go crashing out of the top 10 and are replaced by Northampton (64%) and Coventry, where property demand is currently at 58% resulting in a rare appearance in the top 10 for the West Midlands.

The Scottish capital continues to lead north of the border, with Edinburgh (54%) the 18th hottest spot ahead of Glasgow (48%) in at 34th. This is also the case in Wales, where property demand in Cardiff is currently at 44% making it the 44th hottest spot in the UK, with Swansea trailing way down in 90th place at just 27%.

There has also been a resurgence for property demand across the North East after a tough year for homeowners in the region.

Stockton-on-Tees (+47%), North Tyneside (46%), Gateshead (+42%), Durham (+37%), Newcastle (+32%) and bitter footballing rivals Sunderland (+23%) have all enjoyed some of the biggest increases in property demand since Q1. Trafford flies the flag for the North West with demand up +45%, with Calderdale (+38%) in Yorkshire completing the top 10.

Cold Spots

At just 12% the London Borough of Westminster continues to prop up the table, joined by its prime central London neighbours Kensington & Chelsea (12%) and Hammersmith & Fulham (17%), as well as Camden (20%) as some of the coldest spots in the UK for property demand. Despite its slight revival in Q1, demand for property in Aberdeen is also woefully low at just 13%.