Housing activity strong despite slowdown
The number of valuations taken out by prospective buyers, an indicator of housing activity, fell by 24% from June 2015, although July is generally seen as a slow month.
John Bagshaw, corporate services director of Connells Survey & Valuation, said: “The slight monthly wobble is more than outweighed by the sterling annual growth across all sectors.
“July has been a little more subdued than normal as the post-election ‘feel-good’ factor begins to taper out.
“But, fundamentally, the high pace of annual growth demonstrates that the property market is strong.
“As wages continue to outstrip inflation, job security increases and interest rates remain at record lows, people young and old are feeling ever more confident about the property market. There’s every reason to feel very optimistic.”
Compared to July last year valuation activity increased by 76% for buy-to-let, 48% for existing owner-occupiers looking to move and 40% for first-time buyers.
Bagshaw added: “The buy-to-let market has seen a fantastic take-off over the last year.
“The current high yields on rental properties – due to demand outstripping supply – alongside the widespread availability of low interest mortgage rates has drawn new investment to this sector in increasing numbers over the past year.”