Our latest National Hotspots Index not only found demand across the UK is down -5% in the first quarter of 2016, but the capital and corner stone of the UK property market, has also seen demand drop.
On average, demand across the capital is currently at 40% and London’s outer boroughs accounted for the top hottest spots for London property demand with prime central London, for the large part, propping up the table as the coldest places in the capital.
In fact, there is only one borough throughout the entire capital that hasn’t seen demand drop during Q1 of 2016. The London Borough of Barnet is the only place in London that has enjoyed a positive change in property demand, having increased +11% since the start of January.
The London Borough of Barnet has been undergoing extensive regeneration over the past few years with a number of its dated 70s estates being improved or demolished to make way for more modern housing.
Dollis Valley, Stonegrove and Spur Road and West Hendon are amongst those being improved and last year £56m was awarded to Barnet council to aid the regeneration of Grahame Park. As well as demolishing old buildings and replacing them with a modern alternative the area is benefitting from improved transport infrastructure, local health centres, retail space and 3,000 new homes.
Founder and CEO of eMoov.co.uk, Russell Quirk, commented:
“In the London market where property demand is always going to be high, it’s quite remarkable that Barnet has been the only borough to have seen an increase in demand during 2016.
We’ve seen demand drop off during Q1 both in London and nationally, as the market gets up to full speed after the Christmas break. But no such worry for homeowners in Barnet.
The extensive regeneration in the borough is certainly a contributing factor. It doesn’t matter if it social or private housing, the additional transport and community benefits that come with such projects, will always overspill to surrounding areas.
Another reason for this increased demand is probably due to prices in the area. At £625,000, the average house price in Barnet exceeds the national average and has increased by more than £40,000 in the last year alone. However, over the last three months it’s dropped by almost 3% and so it’s likely that this has contributed towards a demand uplift.
The demand price see-saw will always see prices rise as demand outweighs supply, but once property values become unaffordable, demand drops off and homeowners have to settle for a lower price if they want to sell.”