September valuations see annual fall
In September the total number of residential valuations conducted by Connells rose by 30% compared to August but fell 4% from September 2011.
On a quarterly basis, while total valuations were down 1% in Q3 2012 compared to the previous quarter, they were still 1% higher than in the same three months in 2011.
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.”
Stronger first-time-buyer activity was a key component of last month’s overall increase, with these valuations up 38% on a monthly basis. However, the numbers of first-time buyers also rose annually, climbing by 8% year on year.
Buy-to-let displayed the lowest month-on-month growth, with the number of valuations rising by 25%. On an annual basis, valuation activity was up 7% and now represents 14% of the valuations market.
Home movers showed a monthly increase in activity of 27% although these valuations were 13% lower than in September 2011. Remortgaging activity fell by 12% on last September despite a 29% monthly increase from August.
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 affect many borrowers’ repayments we could see an upturn in the number of mortgage holders looking for cheaper deals and longer term security.”