Bradford tops Hotspot Index for second consecutive quarter

Property buying decisions continue to be heavily influenced by affordability, according to our latest Hotspots Index, which reveals that some of the most active or ‘hottest’ areas also offer buyers the best value. 

Bradford is the leading hotspot in the country for the second consecutive quarter, benefiting from the ripple effect as buyers priced out of Leeds look for neighbouring and more affordable alternatives. Meanwhile, Blackpool edged into 2^nd place (5^th in Q1), while Rochdale stormed into 3^rd place (23^rd in Q1).

Fourth-placed Plymouth, the only southern location in the top five, has also seen a considerable jump from 22^nd place in Q1. Leicester is a new entrant into the top five, from 9^th in Q1. 

Overall, the north/south divide is holding firm, with some of the most vibrant and cheapest locations in the north seeing the most heat in terms of housing market activity and only one southern location making it into our top ten. 

Q3 OnTheMarket Hotspots Index for UK Urban Areas

None of this comes as any surprise after 14 increases in base rate since December 2021, followed by seven meetings where the Bank has voted to maintain interest rates at 5.25 per cent. As well as higher borrowing costs, the post-pandemic shift towards working from home at least part of the week means buyers can consider areas further away from city centres, which tend to be less pricey. 

Other notable big movers in the index include Wakefield, which has jumped from 30^th to 9^th place and Birmingham which has jumped from 23^rd to 43^rd. 

Moving in the other direction, demand in Wigan has cooled significantly, dropping from second to 15^th place in our rankings, while Liverpool has fallen from 11^th place in Q1 to 30^th. Worthing, one of the few southern locations to be considered a hotspot, fell from 20^th to 53^rd place. The ‘coolest’ hotspot on our list is Brighton. 

Commenting on Rochdale’s elevation to third place, Andrew Cardwell, managing director at Cardwells Estate Agents in the North West, says: “Rochdale’s jump of 20 spots to third place is impressive but not surprising as Rochdale, along with Greater Manchester towns such as Bolton and Bury have fared well recently. Earlier this year Rochdale was recognised as one of the most affordable places to buy a property, with an average house price of around £206,000 but as well as offering excellent value for money, it’s within easy reach of Manchester city centre and has beautiful countryside.  

“Since the pandemic the working habits and requirements for many have evolved, and working from home has become much more prominent. This means people can look further away from the city centre, targeting areas which offer good value for money, beautiful countryside and the type of property that may not be available in a city centre, and also may not be affordable.”

In the London boroughs there has been less fluctuation than nationally and very little movement. Newham has entered the top five for the first time, moving from 10^th in Q1 to 5^th. Meanwhile, Hounslow dropped out of the top five, moving from 4^th in Q2 to 9^th in Q1 and several, including Lambeth, Southwark and Merton, all dropped four places.

Q3 OnTheMarket Hotspots Index for London Boroughs