Number of valuations rises 2% year-on-year

11 January 2011 | By Samuel Dale

The increase is down to more remortgaging and buy-to-let and comes despite the end of the stamp duty holiday at the close of 2009.

But the expected seasonal slowdown and adverse weather meant that the number of total valuations fell 19% compared to November

This was smaller drop than the 21% fall between November and December in 2009.

In spite of the monthly fall, in Q4 2010, the total number of valuations was 2% higher than in Q4 2009.

The number of valuations for remortgaging was well up on 2009, rising by 88% from a low base at the end of last year.

Paul Staley, corporate services director of Connells Survey and Valuation, says: “The increased level of remortgaging compared to a year ago shows there are signs of life in the mortgage market as borrowers once again seek to lock into increasingly attractive fixed rate products.

“We are starting to see greater competition amongst lenders as they fight for market share – a factor missing over the past couple of years, which is a positive sign for the health of the market.”

Buy-to-let activity rose by 8% compared to November – an increase of 53% from December 2009.

First-time buyer activity fell by 22% compared to November – a year on year decrease of 26%.

The number of homemovers also dropped by 17% month on month, with a 4% decline on December 2009.  

Staley adds: “Constrained lending meansfirst-time buyers still face a tough challenge getting onto the property ladder. We’re going to need to see more co-ordinated action from the market if we are going make a real difference for first-timers this year.”

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