Fears have arisen that Britain’s latest property hotspots hold the potential to develop into regional house-price bubbles.
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Next to the Royal Edward Docks in Bristol, lies Avonmouth, a vibrant town that has benefitted from extensive regeneration over the years. In terms of transactions, in 2014 it was the district with the largest increase, experiencing a jump in sales of 94.5% according to analysis from Hamptons International property agents. Furthermore the national average rate was doubled as the sale numbers rose from 128 to 249 over the year, whilst an additional 21.1% increase in house prices also occurred.
Redcliffe, a fellow neighbour of Avonmouth also saw a rise in sales of 93.2% last year, which positioned them at a very close second according to the Hamptons 2014 index of British postcodes by transaction volumes.
An increasing growth of demand to live in Bristol is thought to be the driving force behind this surge of transaction levels. Reasons for this growth of demand may be due to an increasing number of new-build developments, leading technology schemes and also the high usage levels of the Government’s Help to Buy scheme.
The rise in the number of sales has also bought to light other hotspots in Britain. These include Langdon Hills in Basildon, Essex, which ranked third. Moreover, a large jump in levels of transaction was found in Leicestershire, Cambridgeshire and also North Dorset.
“what this really shows is Help to Buy working outside London” Henry Pryor, independent property buyer.
Boroughs on the outskirts of London such as Greenwich, Croydon and Dartford have also reported a raise in sales levels, all landing themselves places within the top 20 areas by increase in home sales in 2014. Within the more central areas of the city, people are cashing in on the high house prices and moving to the outskirt boroughs, which are in turn dramatically benefitting their sales and transaction levels.
Head of research for the Hamptons, Johnny Morris expressed “Whilst we’re often fixated with house prices, transactions tend to be a much better measure of market health than prices. Low activity impacts market liquidity, making the housing market less flexible. This drags on labour mobility and can cause price distortions.
“Jumps in transaction numbers in local markets can also be a leading indicator for price growth. It tends to be a sign of demand increasing in the market and some return to normalcy. Given many housing markets in the UK are supply-constrained, this will often ultimately translate into house price growth.”
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