Demand for property in the UK.

Everyone knows that there has been a demand for property all over the UK but recent studies have shown that the demand is increasing everywhere apart from our capital, London. Despite the Government’s efforts in the recent years to increase house building levels, the demand for property is still there.

 With big housing demand, this brings along soaring house prices and rents, as long as that demand is present, we will see prices keep rising. With many people having the opinion that Successive Governments have failed to ensure housing supply matches demand, as a statement of its intent to tackle the housing shortage and stem rising prices and rents, the Government announced its ambition to build 1 million homes in England by 2020, but what we want to know is why isn’t the demand still there in our capital?

 

“Despite the initial artificial spike in demand ahead of Aprils stamp duty deadline, the changes to tax brackets for second home and buy to let properties seems to have had a detrimental impact on London property demand, according to the index report from eMoov.” Says the Mortgage Introducer.

 

The property market across Britain registered a 3% uplift in demand in the first quarter of 2016, but in the capital it fell by 2% and we have now seen it increase by 5% since the second quarter of the year, according to latest market intelligence report.

 


“There has also been a resurgence for property demand across the North East after a tough year for home owners in the region. Stockton-on-Tees at 47%, North Tyneside at 46%, Gateshead at 42%, Durham at 37%, Newcastle at 32% and Sunderland at 23% have all recorded some of the biggest increases in property demand since the first quarter.” Reported the Mortgage Introducer. Many feel that this is just post Brexit, as we saw the pound hit its lowest level of value in 31 years, encouraging many more international investors to move into Britain’s property market, as it became significantly more affordable.

 

However, the future is looking brighter for meeting housing demands with the Governments flagship Help to Buy (Equity Loan) scheme. As we have already seen them support the construction of around 80,000 homes (as well as the same number households into homeownership) that was recently extended to 2021.