Connells blames Olympics for 10% dip in August

Connells Survey & Valuations says August’s seasonal drop-off was exaggerated by the Olympics and the ongoing squeeze on lending as residential valuations it conducted fell 10 per cent compared with July.

But despite the drop, activity remained higher than a year ago, with 1 per cent more valuations than in August 2011.  

Connells’ corporate service director John Bagshaw says the housing market is traditionally slower in August, and this year proved no exception as the summer holiday season took its toll on the number of buyers looking to move.

He says: “This seasonal drop-off was exaggerated by the Olympic focus, on top of the ongoing squeeze on lending, although this was not as great as many had expected.

“However, it is encouraging that despite the monthly dip, valuations activity remained higher than a year ago, and is already showing signs of bouncing back in September despite the difficult borrowing conditions.” 

The growing buy-to-let sector was a key driving force behind the annual climb in valuations, climbing by 31 per cent on an annual basis.