Property valuations up by 25%

The recovery of the housing market continued to pick up in March, with the number of valuations on residential housing jumping 25 per cent against the February figures, according to the latest research by Connells Survey and Valuation.


After two consecutive month-on-month rises, the number of valuations conducted in the first quarter of 2010 was also 15 per cent higher than in the previous quarter.

Ross Bowen, managing director of Connells Survey and Valuation said: “The surge in valuation activity is great to see and reinforces evidence of the continuing recovery of the housing market. Despite uncertainty with the economy and post election impact on the housing market, we are seeing more buyers hitting the streets looking for homes. We have also yet to see the impact of doubling the threshold of the Stamp Duty tax for first-time buyers – however I expect the positive trend in the valuations market to continue in the longer term.”

First-time buyers have been driving the first quarter activity said Connells, despite the end of the GBP 175,000 stamp duty holiday on 31 December and the GBP 250k threshold for first time buyers only starting on 25 March. In the first three months of 2010, 10 per cent more first time buyers requested valuations than the last quarter of 2009, with a 12 per cent month-on-month rise in March.

There was also a 14 per cent quarter-on-quarter rise in valuations conducted for home owners looking to move. Remortgaging and buy to let activity also increased – valuations for buy to let investors rose by 19 per cent, while remortgaging business increased by 38 per cent compared to the levels in the last three months of 2009. However, this was from a low base. With mortgage finance not as readily available as before the credit crunch, remortgaging valuations were still less than one third their level in March 2008. Buy-to-let was just five per cent lower than 2008 levels.

Ross Bowen said: “Mortgage finance still remains a challenge for many buyers and remortgagers, but there are signs that lenders are beginning to offer a wider range of products and relax their criteria – several are now offering 90 per cent LTV products. The thaw in the mortgage market and the stamp duty tax-break for first-time buyers will help activity levels moving forward.”

http://firsttimebuyersupermarket.co.uk/