The latest Homebuyer Hotspots Demand Index by the estate agent comparison site, GetAgent, has found that homebuyer demand fell during the first quarter of the year, following the final curtain for the stamp duty holiday in Q4 of 2021.
GetAgent’s Hotspots Demand Index monitors homebuyer demand across England on a quarterly basis. Current demand is based on the proportion of stock listed as already sold (sold subject to contract or under offer) as a percentage of all stock listed for sale. For example, if 100 homes are listed and 50 are already sold, the demand score would be 50%. Across England, average homebuyer demand for Q1, 2022, sat at 64.3%, down -1.4% on the previous quarter when the stamp duty holiday finally finished.
In fact, no less than 80% of all counties in England saw demand fall during the first three months of 2022, with Greater London seeing the largest decline at -5.8%. East Sussex (-3.9%), Devon (-3.8%), Surrey (-3.6%) and Cornwall (-3.5%) were also amongst those areas to see the largest correction in buyer demand levels in 2022.
However, demand hasn’t stuttered across the entire market and at +4.6%, the East Riding of Yorkshire has seen the largest quarterly uplift during the opening three months of the year. There are also signs that the pandemic market paralysis seen within the City of London is starting to thaw, with the area enjoying the second highest quarterly increase at +3.5%.
Bristol remains the hottest spot of the market for current demand, with 79.6% of all homes already sold or under offer, while Northamptonshire (75.5%), Wiltshire (73.2%), Gloucestershire (72.4%) and Dorset (71.8%) are also proving some of the most popular locations at present.
Founder and CEO of GetAgent.co.uk, Colby Short, commented:
“The stamp duty holiday spurred an unprecedented level of market activity which has been sustained for the duration of the scheme and it’s fair to say we’re still seeing the market perform extremely well now, despite the final deadline coming in December of last year. Of course, there was always likely to be some level of natural readjustment and that’s what we’re seeing here, with a slight decline in demand levels during the first three months of this year.
However, we expect to see a sustained level of market activity throughout 2022, even with the escalating cost of living and increasing interest rates. So there’s a very good chance that demand will remain consistent and even rebound as the year goes on.”
