Valuations activity climbed annually in October following a strong year-on-year improvement in first-time buyer numbers, a national surveying company has said.
The total number of residential valuations conducted by Connells Survey & Valuation in October was 7% higher on an annual basis, following a smaller than normal seasonal monthly contraction from the September peak.
While activity fell by 8% on a monthly basis, it was a much gentler decrease than the average drop of 23% between September and October since 2007.
John Bagshaw, corporate services director of Connells Survey & Valuation, said: “After a September peak, the valuations market has weathered the usual October slowdown, and it is encouraging that activity is ahead of last year’s level.
“The recovery isn’t set in stone by any measure, but a stronger than expected showing from first-time buyers offers a comforting glimmer of hope.
“Funding for Lending should really start to feed through to borrowers over the next three months, and if more funds reach those at the bottom of the market, we could see overall buyer numbers return to a healthier level.”
He said valuations for new buyers were up 21% compared to October 2011. Despite the expected monthly slowdown, numbers of first-time buyers fell by 10%, compared to the historic average fall of 28%.
Buy-to-let was another sector showing strong annual increases, with the number of valuations rising by 10% compared to October 2011. While valuations for new buy-to-let mortgages showed a monthly fall of 6%, buy-to-let remortgaging was up 11% from September levels.
Home moves and remortgaging were the slowest sections of the valuations market in October. Numbers of home owners moving showed a 4% monthly dip, representing a 4% fall on an annual basis. Although remortgaging activity fell by 9% from September, it was still 5% higher than in October 2011.
Bagshaw said: “In many areas, values are still below what home owners originally paid for their property, and this will remain a drag on both moves and remortgages. Tight criteria are also limiting remortgaging, even though rates remain extremely competitive in general for those who do qualify.
“However, the publication of the final Mortgage Market Review has removed a source of uncertainty for lenders, and may allow them to loosen mortgage criteria as a result.
“On top of this, participation in the Funding for Lending scheme is growing, with the number of lenders involved swelling to 30, an improvement which could help boost remortgaging over the medium term.”
Comments
Dead , speak for yourself, we are working hard to create sales and are as busy as October which was good, change the attitude I think, half full works better than the other, I do hope you are in my town, could be why we are doing so well then!
Batten down the hatches,get off rightmove, Christamas has come early and we are dead in Novemeber....the media will be on to this and will kill January for us as well.
Fairwell to another round of struggling (not in \london) agents.
No idiots preaching doom and gloom on a postive story!?? Not what they want to read then.......................