Online real estate agency eMoov said yesterday that according to its latest Property Hotspots Index, which ranks locations according to supply, demand and completed sales, London has been surpassed by the property market outside of the capital in the third quarter.
The nation-wide index figure stands at 39 percent for the third quarter, an increase of five percentage points, whereas demand in London is unchanged at 37 percent.
The hottest location in the UK currently is again Bexley, climbing three percentage points to 77 percent. Watford is second with 72 percent, demand in Bristol is 71 percent, while Reading is fourth at 68 percent, eMoov said.
Within London, the inner boroughs endured a rough quarter with only Greenwich (54 percent) making the top 10 locations in the capital, as inflated prices pushed buyers towards the commuter ring in a so-called ‘ripple effect’.
The outer boroughs have seen a jump of four percentage points, with Sutton, Barking, Havering and Hillingdon all closing above 60 percent. In comparison, Westminster is at 15 percent, Chelsea at 17 percent and Fulham at 21.
“Although there are pockets of the capital that have enjoyed sustained demand, it’s the commuter belt that is currently top for property demand in the UK,” said the firm’s chief executive officer Russell Quirk.
Meanwhile, six of the ten coldest locations are located in the North East, eMoov said. Aberdeenshire “fared miserably” with demand at only 10 percent – the coldest spot in the UK. Highland was also amongst the more stagnant regions with 17 percent.
“The uncertainty of the situation in Aberdeenshire and the local oil industry seems to have had serious repercussions to the local property market,” Quirk noted. “Unfortunately there can only be one consequence to property prices in the area, which is inevitably a drop.”