First time buyers drive valuations increase
September’s Housing Market Activity Report by Connells Survey and Valuation has shown a bounce back from a slightly weaker summer period.
First-time-buyer activity was a key part of the month’s increase, with these valuations up 38% from August.
The total number of residential valuations conducted by Connells increased 30% in the same period.
Despite such a large increase valuations were still down 4% from this time last year.
John Bagshaw, Corporate Services Director of Connells Survey & Valuation, said: “The housing market tends to pick up pace in September, entering peak season as the school holidays end and buyers return from their summer hiatus.
“However, in the context of a sluggish summer, exaggerated by the distraction of the Olympics, the strong uplift in activity demonstrates the underlying demand from buyers despite continued challenges in the economic environment.”
Remortgaging activity fell by 12% on last September, despite a 29% monthly increase from August.
John Bagshaw added: “The fear of a bank rate rise has receded somewhat with the UK in a double-dip recession, and fewer borrowers are looking to remortgage than a year ago.
"However, with SVR rises like Santander’s starting to effect many borrowers’ repayments, we could see an upturn in the number of mortgage holders looking for cheaper deals and longer term security.”