Demand for UK Property Rises But Property London Demand Drops
National property demand in the UK has increased by 3% overall since the first quarter of the year but it is down by 2% in London, the latest hot spot index shows.
The stamp duty hike in April of this year created a whirlwind of activity as property investors took to the market to complete property transactions before the increase in stamp duty, however the London property market has been subdued since as the new tax surcharge has dampened demand in the capital, according to the index report from Emoov. London property aside, the national property demand has seen an increase by 8% since Q1 2016. As the demand for UK property rises, so do property prices. Russell Quirk, Chief executive officer of Emoov, said ‘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 European Union,’ ‘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 by the third quarter our index will show a further increase in property demand across the nation,’ he added.
