Valuation activity rises in May
There were 23% more property valuations conducted in June 2015 than in June 2014.
Valuations for owner-occupiers increased by 34% in June compared with the same month in 2014. The month-on-month figure for home-movers was even stronger, as June’s valuation activity climbed by 51% compared to May.
John Bagshaw, corporate services director of Connells Survey & Valuation, said: “Britain’s property market is experiencing an early summer bounce, with all areas of demand for valuations showing strong growth.
“Home movers in particular are showing a very different sentiment to that seen in April and at the start of May, after the surprise certainty of the general election result.
“Home mover demand is growing faster than the overall market trend and even outperforms the recent stalwart of the housing market, buy-to-let.
“Rising optimism is being fuelled by wage inflation and a more tangible sense of economic progress.”
First-time buyer valuations grew by 16% compared to the same month last year and registered a 42% increase on last month’s total.
The number of valuations for buy-to-let purchases rose 24% compared with June 2014, and 22% compared to May 2015.
Bagshaw added: “First-time buyers haven’t benefitted from higher house prices in the same way as those already on the property ladder. An era-defining shortage of suitable first-time homes, combined with still rapid rises in average prices are keeping many would-be homeowners renting for the time being.
“Yet despite this, numbers of valuations for new buyers have shown a potent pace of double-digit growth. That suggests the lifting of the political mist and the long overdue take-off in the labour market are helping plenty take their first step into ownership.
“Demand for buy-to-let continues unabated with attractive returns being realised from the busy rental market.”
The number of valuations for those remortgaging their properties rose 17% in June compared to the same month in 2014 on the back of 44% month-on-month growth.
Bagshaw said: “Remortgaging still lags behind most other sectors in terms of yearly growth. This could also be a sign that the numbers remortgaging to access a better mortgage rate may have reached a plateau.”