The level of first-time buyer valuations rose 18.7 per cent in the year to September, according to research from Connells Survey and Valuation.
Valuations for remortgage customers also rose significantly, up 14.7 per cent, although levels for those moving home fell, down 2.9 per cent in the year.
Buy-to-let valuations remained relatively flat, rising just 0.4 per cent annually in September.
John Bagshaw, corporate services director of Connells Survey & Valuation corporate services director John Bagshaw says the rise in FTB valuations can be partly attributed to the H2B mortgage guarantee scheme, which ends in December.
“Those first-time buyers who have been jumping on the band wagon have been shown to be absolutely right,” says Bagshaw.
“But we don’t expect that first time buyer activity will fall off a cliff when Help-to-Buy ends. The scheme was introduced with a specific purpose – to help people get on the property ladder who were finding it hard to save for a large deposit. There are now more than 30 lenders offering 90-95 per cent loans outside Help-to-Buy so the scheme’s not as important to the market as it was.”