Valuations on behalf of first-time buyers declined in May while valuations of landlord properties increased, according to the latest research from Connells Survey and Valuation.
There were 33 per cent more buy-to-let valuations conducted in May than at the same time last year. At the same time, valuations for first-time buyers fell by 4 per cent.
On a monthly basis, May’s buy-to-let valuations were up 3 per cent on April, while valuations for First Time Buyers fell 2% between the two months.
John Bagshaw, corporate services director of Connells Survey & Valuation, comments:
“Britain’s buy-to-let market is booming right now as would-be landlords are eager to enter the sector and current landlords look to expand.
“However for first time buyers, May was not just less positive than the rest of the housing market, but also disappointing in comparison to the previous month. Previously, valuations for new buyers had proved resilient in April, even when uncertainty about the impact of the election result on home-buyers was at fever pitch.
“The picture painted here is a consistent one. Fewer people looking to buy their first home means more tenants sticking to the rental sector. As such, new landlords enter the market and those already in the sector grow their business to capitalise on the increased demand. Yet what remains unclear is how long this contrast in fortunes will continue.”
May’s remortgaging figures also outperformed the overall housing market, with these valuations up 9 per cent on April’s figures. This equates to a 31 per cent increase on the number of remortgaging valuations since May 2014.
Meanwhile, valuations for those existing home-owners looking not to remortgage but to move to a new property posted a 4 per cent increase since April. This has contributed to an 8 per cent increase in the number of home-owner valuations since May 2014.
Across all sections of the housing market, overall valuation activity for all purposes has grown by 3 per cent on a monthly basis, between April and May. On an annual basis, 13 per cent more valuations were carried out than in May 2014.
