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Surge in valuation activity

Adam Williams
Written By:
Adam Williams
Posted:
Updated:
08/07/2015

The number of valuations on UK properties rose by almost a quarter in June, compared to the same point a year ago.

Data from Connells Survey and Valuation showed there were 23% more property valuations conducted in June 2015 than in June 2014.

Valuations by home movers were up more than half (51%) compared to last year while owner-occupiers increased by 34%.

Compared to the previous month, first time buyer valuations grew by 42% and buy-to-let valuations were up 22%.

John Bagshaw, corporate services director of Connells Survey and Valuation, said the figures showed the momentum in the market.

“Britain’s property market is experiencing an early summer bounce, with all areas of demand for valuations showing strong growth,” he said.

“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.”

Bagshaw added that while first-time buyer activity was increasing, the remortgage market was still struggling.

“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.

“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.”