South of England sees highest property demand

South of England sees highest property demand

Southern parts of England have witnessed the highest demand for property in the second quarter amid signs of sustained buyer interest in affordable areas.

The Warwickshire town of Rugby topped the eMoov property demand index for Q2 2017, with 70.76 per cent of properties sold – up from 68.29 per cent in the previous quarter.

It was followed by Portsmouth (65.76 per cent), Solihull (64.15 per cent), Bristol (64.06 per cent) and Colchester (61.68 per cent).

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But the areas with the largest increase in demand were both in the north of England – Wigan, which witnessed a +67.6 per cent climb on the previous quarter, and Tynemouth, which saw a +54.75 per cent jump.

Demand in London, meanwhile, rose by just +1.62 per cent compared to Q1, with 32.46 per cent of properties sold.

Across England as a whole, demand enjoyed a slight spike in the second quarter, rising by +4.91 per cent to 41.26 per cent.

Wales enjoyed the biggest turnaround with an increase of +12.33 per cent, while Scotland witnessed a -3.04 per cent fall in demand over the second quarter, with 36.21 per cent of properties sold.

UK-wide demand rose by +4.54 per cent over Q2 and now stands at 36.07 per cent overall.

Founder and CEO of Russell Quirk said demand in the south of England could be rising because lower levels in previous months had led to a slight reduction in prices.

He added: “A slight decrease in demand across the major towns and cities of the UK during Q2 echoes reports by other price based industry sources that the market is slowing down a touch. 

“Although demand has fallen marginally, there is still an abundance of buyer interest across the nation in the more affordable markets, and overall the UK property sector has been ticking along fairly well given the turbulent year it has had.”

Michelle Lawson, director at Portsmouth-based Lawson Financial, commented: “Properties are coming on and going really quickly and there is not enough property to satisfy demand. 

“A lot is being put down to the ripple effect where London pricing is out of people’s reach. Portsmouth has a direct train route to London’s stations very regularly and quickly, and is well connected on the South Coast as a whole.”