Activity in the UK housing market has bounced back from the effects of new mortgage affordability rules according to a new report.
Property valuations activity was up three per cent on month in May after a 15 per cent month-on-month fall in April.
First time buyers form a significant part of the renewed overall growth, with the total number of valuations for first time buyers is up 9 per cent from April, growing considerably faster per month than any other section of the market, leaving new buyer valuations activity at levels 8 per cent ahead of May 2013. Good news for first time buyers contrasts with more muted activity from established home movers.
The total number of valuations carried out in May for home movers who own their home is down by one per cent since April, which leaves home mover valuations activity down by one per cent compared to May last year.
Buy-to-let activity has also fallen by one per cent on a monthly basis, however the total number of buy-to-let valuations is still 11 per cent higher than in the same period a year ago,according to chartered surveyors Connells Survey & Valuation.
Remortgaging has recovered from a sharp dip in April, with activity in May up by four per cent on the previous month, which has boosted annual growth in the number of remortgaging valuations to 5%, in line with the housing market as a whole.
John Bagshaw, Corporate Services Director at Connells Survey and Valuation, said: “The most severe effects of the MMR have been proved as temporary, while the benefits will last much longer.
“Disruption over the transition period between old and new regimes was expected, and temporary problems seen by some lenders have now been almost entirely resolved. We expect solid, steady growth in the market over the rest of 2014.”
