View more on these topics

Stamp Duty rush boosts January valuations

Demand from first-time buyers looking to beat the end of the Stamp Duty holiday boosted residential valuations in January, according to Connells Survey and Valuation’s latest housing market activity report.

The number of residential valuations conducted in January increased by 43% year-on-year, although it fell by 15% on a monthly basis after a strong December.

The annual increase was largely driven by first-time buyer activity, with the number of valuations for first-time buyers up 52% year-on-year in January.

Although this represented a 2% monthly decline, first-time buyers grew as a proportion of the market in January to account for 32% of all valuations, the highest proportion since June 2011.

John Bagshaw, corporate services director at Connells Survey and Valuation, says: “A comparison against the strongest December since the downturn masks the underlying strength of the valuations market in January.

“There has been a strong uplift in first-time buyer activity, with new buyers rushing to beat the end of the Stamp Duty holiday in March. In turn, this has unlocked activity further up property chains.

“While the flurry of first-time buyer activity is likely to subside slightly after March, the introduction of the government’s NewBuy scheme may help sustain buyer demand in the longer-term.”      

The data also shows that remortgage valuations rose by 48% in January year-on-year, but fell by 17% on a monthly basis.

Remortgaging accounted for 26% of all valuations in January, the highest level since October 2008.   

Bagshaw adds: “Increasing product choice, alongside stubbornly low mortgage rates, has helped sustain the remortgage market.

“While an interest rate rise doesn’t look on the horizon this year, many borrowers are looking to cash-in on cheap fixed rates while they can to provide long-term financial security in the face of an uncertain outlook for the economy.”


MPC votes for more QE

The Bank of England’s Monetary Policy Committee has voted for more quantitative easing at its February meeting.

Canada Life annual IHT survey results

75% of wealthy unaware of new residence nil rate band IHT allowance Just 4% were aware the new allowance will be up to £175,000 per individual Lack of awareness of IHT rules means families risk paying a bigger bill than they need 83% think the current inheritance tax rules are far too complex A remarkable […]


News and expert analysis straight to your inbox

Sign up

Why register with Mortgage Strategy?

Mortgage Strategy continues to be the market-leading B2B mortgage publication in the UK, and provides trusted, independent insight with the aim of helping, promoting and analysing the latest developments for mortgage professionals.

News & analysis delivered directly to your inbox
Register today to receive our range of news alerts including daily and weekly briefings

Mortgage Strategy Events
Be the first to hear about our industry leading conferences, awards, webinars and more.

Research and insight
Take part in and see the results of Mortgage Strategy's flagship investigations into industry trends.

Have your say
Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

Register now