The number of first-time buyer valuations has soared in the past year, new figures show.
According to research from Connells Survey & Valuation, the total number of first-time buyer valuations carried out in November was 31% higher than the previous year. On a monthly basis, first-time buyer activity was up 2% from October.
John Bagshaw, corporate services director of Connells Survey & Valuation, said the surge in the number of first-time buyers was down to them looking to get on the housing ladder before a potential rate rise in the New Year. He added that they are also looking to take advantage of government-backed schemes such as Help to Buy while they last.
The Bank of England voted yesterday to keep interest rates at the record low level of 0.5%, where they have been since 2009. It is widely expected that the Bank will raise interest rates in the middle of next year.
The buy-to-let market also experienced strong growth, with activity up 26% in November from the same time last year. This was despite the market contracting 4% from the previous month.
Bagshaw said much of the growth in buy-to-let was being fuelled by a “desire to out-manoeuvre” the Treasury’s attempts to take more money from the sector.
“With the Chancellor imposing more fees and regulations on landlords in his most recent Autumn Statement, many would-be landlords are hurrying to get into the market before these changes kick in from April next year,” said Baghaw.
The number of remortgaging valuations was up 46% year-on-year in November, a 5% increase on the previous month.
Valuation activity in the home mover market in November saw a decline of 8% from October, although this was 5% up from November 2014.
“The remortgaging sector is rapidly gaining a reputation as the stalwart of the housing market – and this month was no exception. Home-owners are as keen as ever to take advantage of the low rates to either get a better mortgage deal or release equity on their current property in order to renovate it.
“The strong sentiment currently among home-owners in favour of improving rather than moving goes some way to explain why fewer property owners have been opting to progress up the property ladder. Some may also be finding the festive period a particularly stretched one when it comes to finances and so are choosing to wait until the New Year when their capital flows are steadier,” Bagshaw said.
