The latest research has indicated that housing market activity during December 2016 was up 40% on December 2014. The data from Connells Survey & Valuation indicated that valuation activity grew in 2016 with the total number of valuations increasing on an annual basis by 8%.
The highest growth was in the first time buyer market, where the number of valuations grew by 26% on an annual basis. For those selling property, the number of valuations rose by 25% between December 2015 and December 2016. Valuation activity for people looking to remortgage grew by 19% over the same period.
Commenting on the shift in the market since December 2014 was John Bagshaw. The corporate services director of Connells Survey & Valuation highlighted that buyers are making the most of the current climate.
“The housing market has been recovering since September and had a great December. Compared to 2015 it looks good. Compared to December 2014 it looks exceptional. First time buyers and people selling property have regained much of the confidence they lost in the wake of the Brexit vote. With interest rates still at record lows, many buyers are taking the opportunity to buy property that would have been regarded as a bargain at that price just a couple of years ago.
“In August the base rate was cut to 0.25%, the first adjustment in over seven years. This led to lower mortgage rates which has fueled the remortgaging sector. First-time buyers have also taken full advantage of government led schemes and incentives such as Help to Buy which have done a great deal for affordability.”
Where the buy-to-let sector is concerned however, valuations have contracted by 26% on an annual basis, painting a very different picture.
Across the wider market however, the comparison between December 2014 and December 2016 points to a longer term underlying trend. Overall activity has grown by 40% and the volume of property sellers has risen by 32%. As consumers make the most of attractive mortgage deals, remortgage activity had gone up by 68%, whilst activity in the first time buyer market has increased by 50%. Compared to December 2014, the buy-to-let sector has still seen a growth of 13%.
Bagshaw concluded by reflecting on 2016, commenting on consumer confidence being retained and the market’s overall resilience.
“Looking back over the year, the market has regained a great deal of its strength with consumers’ confidence on the mend. Rates are low and employment is high –that’s a great recipe for a healthy housing market. And the buy-to-let market’s loss has been owner-occupiers gain as those looking to get on the ladder or trade-up have been left facing less competition for the properties they want to buy.”
