Boost in buy-to-let activity
Data from Connells Survey and Valuation has revealed that there were a third more buy-to-let valuations conducted in May 2015 than the same month a year ago. During the same time frame first-time buyer valuations dropped 4%.
The remortgage market also jumped back into life as it recorded a 31% increase in valuations compared to last year.
Month-on-month buy-to-let valuations rose 3%, remortgage was up 9% while there was a 2% fall for first-time buyers.
John Bagshaw, corporate services director of Connells Survey and Valuation, said more people were looking to take advantage of buy-to-let.
“Britain’s buy-to-let market is booming right now as would-be landlords are eager to enter the sector and current landlords look to expand,” he said.
“However for first time buyers, May was not just less positive than the rest of the housing market, but also disappointing in comparison to the previous month. Previously, valuations for new buyers had proved resilient in April, even when uncertainty about the impact of the election result on home-buyers was at fever pitch.
“The picture painted here is a consistent one. Fewer people looking to buy their first home means more tenants sticking to the rental sector. As such, new landlords enter the market and those already in the sector grow their business to capitalise on the increased demand. Yet what remains unclear is how long this contrast in fortunes will continue.”