The mortgage market continued to slow in July, according to Connells Survey & Valuation.
In its latest Housing Market Activity Report, the total number of residential valuations conducted during July rose by 8 per cent year-on-year, however, valuations fell 13 per cent compared to June.
Buy-to-let was the only section of the market not to shrink month-on-month, with the number of buy-to-let valuations also growing 31 per cent year-on-year. As a result, buy-to-let valuations now comprise 14 per cent of Connells’ valuations, up from 12 per cent in June.
Although first-time buyer figures fell by a fifth compared to June, they remain 3 per cent higher than in July 2011. The number of homeowners on the move also fell 17 per cent on a monthly basis, and 1 per cent compared to last July.
Remortgage valuations dipped 1 per cent, although that still accounted for an 18 per cent year-on-year increase.
Connells corporate services director John Bagshaw said: “The UK’s mortgage market continues to feel the effects of the financial crisis across the channel and the ongoing economic recession.
“Lenders concerned about the impact of a deterioration in the eurozone have been concentrating on consolidating their balance sheets rather than new lending, putting the brakes on valuations activity.
“Nevertheless, the launch of the Funding for Lending scheme could well breathe new life into the housing market as the year progresses. If lenders grasp the opportunity for cheap finance with both hands, and pass this onto new buyers, we should see the housing market take a step towards recovery.”
Loading ...