The number of new buyers in January more than doubled compared to the previous month.
According to chartered surveyors, Connells Survey and Valuation, there were 56 per cent more first-time buyers in January than December, significantly faster than monthly growth in all other areas of the housing market.
On an annual basis this brings the number of valuations on behalf of first time buyers to levels over a third (35 per cent) higher than January 2013.
John Bagshaw, corporate services director of Connells Survey & Valuation, comments: “A certain New Year jump is normal – but this January has felt more like a stampede. The seasonal rebound between December and January has been significantly stronger than we usually experience.
“One factor is the effect of government schemes – the vast majority of Help to Buy loans have been taken out by first time buyers. But alongside this is a wider movement, fuelled by a general surge of confidence and a new willingness by lenders to target new buyers.”
Across all sectors, activity increased strongly in January – with total valuations activity up by 37 per cent on a monthly basis, bringing the number of all valuations to levels one third (33 per cent) higher than in January 2013.
Remortgaging activity saw the second fastest monthly growth, up 31 per cent compared to December. On an annual basis, this leaves remortgaging the fastest growing area of activity, with the number of valuations for remortgaging purposes 56 per cent ahead of January 2013.
Meanwhile buy-to-let valuations accelerated by 29 per cent since December, leaving buy-to-let activity in January up 32 per cent on an annual basis.
Bagshaw comments: “Households look for the best deal to help sustain their monthly budgets, and remortgaging is still an extremely attractive option. But there is a certain sense of urgency in this area. Over the course of 2014 mortgage rates are likely to start rising. Moreover for many households, some of the best deals will be found before the end of April – when new, tighter regulations come into force in the form of the Mortgage Market Review.”
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