Did the Olympics dent the valuations market?

According to the latest Housing Market Activity report from Connells Survey & Valuation the number of valuations held up well during August.

There is typically a seasonal dip in August, but despite a 10% dip from July valuations were up 1% from August 2011.

John Bagshaw, Corporate Services Director of Connells Survey & Valuation, said: “The housing market is traditionally slower in August, and this year proved no exception as the summer holiday season took its toll on the number of buyers looking to move.

“This seasonal drop-off was exaggerated by the Olympic focus, on top of the ongoing squeeze on lending, although this was not as great as many had expected.”

Mr Bagshaw said the year on year figures were encouraging. Buy-to-let is a key driver behind the annual increase with buy-to-let climbing by 31% on an annual basis.

Mr Bagshaw added: “Buy-to-let is playing an increasingly significant role in the housing market, as investors are drawn in by the prospect of rising rental income, subdued purchase prices and increasing demand from tenants.

“Lenders have been cutting rates to tap into this demand, and the combination of rock-bottom mortgage payments and soaring rents has made property investment increasingly attractive.”

Remortgaging activity saw a smaller dip than the wider market, although it fell by 7% on a monthly basis and by 1% compared to last August.

Today's Conveyancer