We’ve just released our latest National Hotspots Index charting property demand across the UK.
Our Hotspots Index analyses the balance between demand and supply for property in over 100 of the most populated areas in the UK.
Although London and the surrounding commuter belt still dominate the top 10 hottest spots for property demand, there’s something stirring in the North. Despite national demand falling by -5% over the first three months of the UK, there are pockets of the nation where demand is on the up.
Of the top 10 highest climbers in terms of demand increase over the first quarter of 2015, 50% are located in the North.
What’s more, three of those are located in Yorkshire.
It would seem the Northern Powerhouse is starting to have an impact, particularly in Yorkshire, with Wakefield, Bradford and Leeds having seen some of the biggest increases in local property demand since the start of the year.
Wakefield has seen the largest increase of the Yorkshire locations, with demand increasing by +33% in the last three months, now at 32% overall making it the seventh highest climber for Q1. In the last year the average house price has increased by just over 1%, although at £173,000, it is still considerably lower than the UK average.
This value for money is clearly making Wakefield popular amongst UK buyers however, if demand in the area continues this upward trend and begins to outstrip supply, prices will almost certainly increase alongside it.
Leeds has also seen a big turn around in property demand, the fifth largest across the nation, with a +31% increase during Q1 of this year. However, despite Leeds marginally trailing Wakefield in terms of demand, the average house price has increased by double that in the last year at +2%.
Although a property in Leeds will set you back more than in Wakefield at £184,000, it is still well below the UK average and offers great value for such an established city. But it’s not just the last three months that have seen demand spike, compared to this time last year property demand in Leeds has increased by +29%, great news for those looking to sell their home.
eMoov’s Local Property Director for Wakefield and Leeds, Kathleen Taylor, commented:
“The increasing demand for property in the Wakefield and Leeds areas has, for the large part, been fuelled by the Help to Buy scheme. Although the scheme has done little to help those in London and the South East, the better affordability of housing in the North means many have utilised it to help them get on the ladder.
House prices have also started to level out having increased over the last year and the last three months has seen the market cool slightly, which always brings higher demand.
This said there are areas such as Morley where demand is always high due to the school catchment areas and often I find properties that I have signed up will sell within days as a result.”
The last Yorkshire entry in the top 10 highest climbers is Bradford. Bradford hasn’t quite performed as well as its Yorkshire neighbours and over the last year prices in the area have dropped by -1%. That said, it does offer the cheapest average house price of the three at £122,000 and the reduction in property prices is a contributing factor to the increase in demand.
Demand in Bradford peaked at 20% in Q3 of last year before tumbling to 14% towards the back end of 2015. However the first signs of life in 2016 are positive for homeowners in Bradford and should this upward trend continue, property prices will benefit as a result.
eMoov’s Local Property Director for Bradford, Mervyn Button, Commented:
“It’s great to see demand in Bradford is climbing at one of the fastest rates across the nation. 2015 was up and down for a number of locations across the UK, so hopefully this high demand for Bradford property will continue.
I think Bradford has been benefiting from the same sort of ripple effect as those around London. Yes Leeds may be a bigger, more sought after city, but a property will cost you £60,000+ more than it will in Bradford. With a commute time from Bradford to Leeds of just 20 minutes by train, why wouldn’t you save yourself a lump and opt for Bradford?”