Valuations up 73% year-on-year
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The total number of valuations conducted during November grew by 3% in comparison to October, representing an annual rise of 73%, according to the latest Housing Market Activity Report by Connells Survey and Valuation.
The pick-up in first-time buyer activity was a key factor in the increased level of mortgage activity in November.
In November, the number of valuations conducted for first-timers increased 7% compared to October. This represented 29% of all Connells’ valuations, the highest proportion since August. This bounceback follows a monthly decline to 27% of all valuations in October.
John Bagshaw, corporate services director of Connells Survey and Valuation, says: “In November, first-time buyers exploited a short window of opportunity as rates for higher LTV mortgages improved briefly.
“With house prices steadily declining, affordability has improved for new buyers, many of those able to secure mortgages have been acting quickly to complete before Christmas.
“Following the Chancellor’s decision not to extend to stamp duty holiday for first-time buyers, activity will be elevated in the short-term as buyers look to move before March. But in the long-term, the recovery of transactions will be led by lenders’ ability to unlock the lower tier of the market.
“The new mortgage indemnity scheme is a step in the right direction but the threat of the Eurozone crisis – combined with the abolition of the stamp duty holiday – may undermine its impact in the coming year.”
Remortgaging activity was also vital to the improved valuations market in November. Over the course of the month, there were 12% more remortgage valuations than in October. This represented an annual increase of 92% - albeit from a low base. One fifth of all valuations conducted in November were for remortgagors, compared to 11% a year ago.
Demand for buy-to-let mortgage finance remains strong. During the month, there were 7% more valuations conducted for buy-to-let investors than in October. However,the number of valuations for home movers dropped by 8% in November compared to the previous month. Despite this, there were still 60% more than a year ago.
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