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News: UK property valuation activity slows in April

Wed, 16 May 12

Activity in the UK residential property valuations market slowed in April, according to Connells Survey and Valuation.

The firm’s Housing Market Activity Report found that the number of residential valuations carried out last month fell by 32 per cent compared to March. First time buyers saw a 28 per cent dip in the number of valuations, although this has mostly been attributed to the flurry of activity in March, driven by the end of the stamp duty holiday.

However, overall market activity remains in good health compared to 2011, with 23 per cent more valuations conducted in April than the year before. First time buyers are also increasing activity on an annual scale, now accounting for 31 per cent of all residential valuations in the UK.

Corporate Services Director John Bagshaw comments: 'The valuations market has not come to a standstill by any means... however for momentum to begin building again in the short term, it is crucial lenders don’t withdraw support for high LTV lending in the face of a technical recession and the ongoing eurozone crisis.'

Bagshaw added: 'A blip in first time buyer activity was to be expected after many buyers brought forward purchases to beat the end of the stamp duty exemption. In turn, fewer chains were freed up, reducing the number of home owners able to move compared to March. In spite of this, it is encouraging that both home mover and first time buyer numbers are in better shape annually, pointing to underlying resilience in the market.'

The report also showed that buy-to-let activity was on the up. Despite a 32 per cent monthly decline in valuations, April showed an annual jump of 33 per cent.

'Both buy to let and remortgaging have been key to the annual improvement in the valuations market. Buy to let mortgage rates have remained competitive in recent months, and this has helped boost the demand from landlords looking to take advantage of healthy yields and strong underlying tenant demand,' said Bagshaw.

‘News that we are back in recession is likely to kick the prospect of a rate rise in the near future into the long grass, which will keep payments historically low for many borrowers, giving those on trackers less motivation to shop around. However, the trend of increasing variable rates will underpin demand for remortgaging and this sector is likely to see steady growth in coming months.'

Source: Property Wire

 

 

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