Another day, another sign of the market quietening - this time it's a drop in the volume of valuations, according to research from Connells Survey and Valuation.
October saw the total number of valuations fall by 20 per cent compared to the previous month. Beyond seasonal factors, other contributory factors include the recent mortgage loan to income cap which came into force in October.
The number of valuations for first time buyers was down 18 per cent compared to September while owner occupiers moving home saw a month-on-month dip of 21 per cent.
Remortgaging valuations were down the most with a decrease of 23 per cent compared to September.
John Bagshaw, director of Connells Survey and Valuation, says that although lenders are now offering competitive mortgage rates this is balanced by increased regulation in the shape of MMR and loan to income caps.
Comments
This to me comes as no real surprise, particularly with regards to the drop in valuation figures by first-time buyers. There has been such a rapid increase in the buy-to-let industry and private landlords that often renting seems like a much simpler, affordable option for beginners to the property market.
Signs are that the sales market has 'peaked' regarding volumes. Have just sold a property STC in the East Midlands which was 5K lower than the re-mortgage valuation only 18 months ago. There have been no price increases in this neck of the woods for two years at least. Steady sales but nothing spectacular, and as for all the media hype, it just isn't happening.