Demand for property falls sharply in London

10th September 2014

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Demand for property in London is falling according to online estate agent eMoov.co.uk’s Property Hotspot Index . The index plots demand for properties across the 100 largest towns across the UK.

The firm says that in February 55% of all properties listed in London had an accepted offer on them but this dropped to 50% in June and in September has slumped down to just 41%.

The Borough of Wandsworth in South-West London has seen the biggest drop in the country over the last 6 months, with demand halving from 55% in February to 28% in September.  Wandsworth demand has dropped 17% since June, with only Croydon down 18% in the last 3 months seeing a bigger plunge.

Across the capital, property demand has seen dramatic decline in with Islington & Lambeth down 20%, Hackney down 19% and Ealing down 12%. The best performing area has been in the North West with Hillingdon only registering a 6% drop and Harrow just 3%.

In our Property Hot Spot Index release in June, Medway saw the biggest fall in demand of all UK areas. However since it became clear that the Airports Commission was likely to reject plans for a Thames Estuary airport, Medway has bounced back up 47 places into 4th with a demand of 59%.

The top three places on the Property Hotspot Index remained as Bexley, Sutton and Hillingdon. The biggest three positive demand shifts since June have been Medway up 22%, Wiltshire up 12% and Bedfordshire up 9%.

The ripple effect of property prices looks to have made tremors in the north so far in 2014. East Riding leads the Index with demand growth up 15% in 6 months, with Newcastle, Sefton and Kirklees all up 11% and Glasgow up 8%. A whole host of northern towns have seen a rise of 5% including Liverpool, Rochdale, Oldham, Salford and Hull.

Russell Quirk, chief executive of eMoov.co.uk says: “Once again the eMoov Property Hotspot highlights the growing trend of a London ice age. Eight of the top 10 biggest fallers in our index are areas within the South East which just highlights the shift in consumer confidence in the London market.

“Since June just 15 areas in the country have seen positive growth in demand. It’s not time to hit the panic button just yet, as seasonality plays some part here. There are some green shoots looking to the north of the country with demand still seeing growth”.

During the last 6 months there have been only three areas in the country which have flat lined with 0% shift in demand. These are Swansea (27%), Sandwell (24%) and Stoke-on-Trent (27%).

Top 10 worst performing areas

Town/city

September Demand

% Movement from June

% Movement from February

June Demand

February Demand

Wandsworth

28%

-17%

-27%

46%

55%

County Durham

12%

-6%

-25%

17%

37%

Southwark

37%

-12%

-21%

49%

58%

Croydon

41%

-18%

-20%

59%

62%

Islington

43%

-9%

-20%

53%

64%

Lambeth

37%

-15%

-20%

53%

57%

Hackney

46%

-8%

-19%

54%

65%

Tower Hamlets

37%

-8%

-17%

45%

54%

Haringey

49%

-6%

-16%

55%

66%

Calderdale

23%

-31%

-16%

53%

38%

Property Hotspot Index

Town/city

Position September

September Demand

Position June

June Demand

Position Feb

February Demand

Bexley

1

69%

1

75%

2

68%

Sutton

2

64%

2

72%

1

68%

Hillingdon

3

61%

3

65%

3

67%

Medway

4

59%

51

37%

15

59%

South Gloucestershire

5

58%

7

62%

17

58%

Havering

6

58%

9

61%

14

60%

Brighton and Hove

7

57%

10

60%

12

60%

Portsmouth

8

57%

4

63%

22

55%

Bristol

9

56%

5

63%

6

64%

Greenwich

10

55%

8

62%

19

57%

Bromley

11

51%

6

63%

18

58%

Lewisham

12

51%

11

60%

7

64%

Harrow

13

50%

19

56%

26

53%

Milton Keynes

14

50%

15

58%

25

53%

York

15

50%

16

58%

29

52%

Enfield

16

50%

17

57%

13

60%

Central Bedfordshire

17

50%

48

40%

36

47%

Haringey

18

49%

20

55%

4

66%

Swindon

19

49%

18

56%

24

53%

Merton

20

48%

14

59%

9

63%

Redbridge

21

48%

23

53%

28

52%

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