Demand for property across the UK rose during the first three months of 2016, by 3%. However, according to the latest eMoov index, demand for property in the Capital fell by 2% during the same period.
The increased demand for UK property during the first quarter of the year may be attributed to buyers aiming to secure a property before the introduction of the new stamp duty changes in April. The stamp duty changes may also be to blame for a fall in demand for London properties, where property prices are much higher than the rest of the UK.
The chief executive officer of eMoov, Russell Quirk, said that the London property market seems to have been hit much harder than the remainder of the country, as property investors are affected by tax changes. According to experts, many investors are considering regional UK cities which are experiencing a period of growth, but with affordable properties.
Manchester has experienced high demand for property, despite supply of housing in the city being among the lowest levels. The population of Manchester is one of the fastest growing outside the city of London.
Another factor contributing to the increased demand for UK homes is Brexit. Following the decision to leave the EU, the value of the pound fell to its lowest for 31 years. As property becomes more affordable, investors from overseas have moved into the UK property market.
Buyers who are looking for a suitable mortgage may want to seek advice from a CeMAP qualified mortgage adviser, to ensure they find the best deal.
