UK Housing Demand Falls in the Capital City
Following the Brexit vote, the UK housing market is facing uncertainty is some areas whilst others are experiencing great activity and success. Housing demand is an area which is causing some concern. Several house sale transactions were put on hold during the vote in anticipation of what the outcome would be from the vote and the subsequent impact from it. Demand has so far increased slightly in regions outside the city of London. In the capital city however, demand has dipped by 2%, according to the latest data.
Demand across the country currently sits at 40%. This is 1% higher than in the capital city where is resides at 39%. The latest research indicates outside London demand has grown almost 10% since the first quarter of the year.
Housing demand is expected to remain in positive figures for the remainder of the year. Massive shortage of supply will actually underpin housing demand for some time, according to many close to the housing market.
Russell Quirk of eMoov commented on the latest data, saying: “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.”
Quirk added: “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 our third quarter index will show a further increase in property demand across the nation.”