Northern and Midlands property market booming as London slows
THE Northern regions and the Midlands have benefited most from a big increase in property demand in 2016 as a result of a combination of second home stamp duty and a lack of interest foreign interest post-Brexit in the London market.
This is according to online estate agent eMoove.co.uk’s fourth and final Property Demand Hotspots Index which shows that nationally property demand has fallen by 7%, now at 38%.
It says the biggest surprise of the year is where demand is currently strongest and which areas have seen the biggest increases.
It says: “With six out of the top 10 biggest increase located here, it would seem the engines of the Northern Property Powerhouse are being stoked by UK buyers and the more affordable price of property could see it steam ahead moving into 2017.”
Stockport in North West has seen the largest demand increase, up 126% in 2016, with Stoke-on-Trent (+112%) in the West Midlands and London’s only entry in Sutton (+110%) also enjoying triple digit demand growth.
Demand in Sheffield has increased by 99% in the last year, with Sandwell (+83%) and Solihull (+79%) also representing the West Midlands in the top 10. Swindon in 7th (+74%) and Somerset in 8th (+65%) sandwich Bradford (+67%) as the only representatives from the South West, with Southampton (+63%) the only entry from the South East.
Outside of the top 10, Highland, Gateshead, Salford, Manchester and Hull also saw demand increase by more than 50% over the last year.
The biggest decreases where demand is concerned were seen in Sunderland (-63%), Swansea (-57%), Hounslow (-51%), Lambeth (-46%), Camden (-45%), Southwark (-43%), Shropshire (-42%), South Lanarkshire (-42%), Westminster and Aylesbury (-39%).
eMoov founder and CEO, Russell Quirk said: “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 benefited with the market almost turned on its head in terms of desirability to buyers.
“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.
“It is 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.”
