Residential property valuations surged in June after the considerable cooldown in May which to a large extend was based on the uncertainty around the General Election.
Valuation activity increased in all sectors of the market, with home movers taking the lead well ahead of the rest. Valuations for owners moving house went up by 51 per cent on the previous month and 34 per cent on the previous year, the latest research from Connells Survey and Valuation shows.
First-time buyer activity also got a boost in June, rising by 42 per cent on May 2015 and by 16 per cent on June 2014.
“First-time buyers have not benefitted from higher house prices in the same way as those already on the property ladder. An era-defining shortage of suitable first-time homes, combined with still rapid rises in average prices are keeping many would-be homeowners renting for the time being.
“Yet despite this, numbers of valuations for new buyers have shown a potent pace of double-digit growth. That suggests the lifting of the political mist and the long overdue take-off in the labour market are helping plenty take their first step into ownership,” John Bagshaw, corporate services director of Connells Survey & Valuation, said.
Buy-to-let valuations surpassed May’s figure by 22 per cent and were 24 per cent higher than in June last year as demand in this sector of the market continues to increase.
Valuations on behalf of those remortgaging surged by 44 per cent compared to May and by 17 per cent compared to a year ago.
“Britain’s property market is experiencing an early summer bounce, with all areas of demand for valuations showing strong growth.
“Home movers in particular are showing a very different sentiment to that seen in April and at the start of May, after the surprise certainty of the General Election result. Home mover demand is growing faster than the overall market trend and even outperforms the recent stalwart of the housing market, buy-to-let.
“Rising optimism is being fuelled by wage inflation and a more tangible sense of economic progress,” Bagshaw commented.
