The housing market had a busy start to the year as valuations – an indicator of market activity – rose by 52% year-on-year, research from Connells Survey & Valuation has revealed.
The housing market had a busy start to the year as valuations – an indicator of market activity – rose by 52% year-on-year, research from Connells Survey & Valuation has revealed.
This is the fastest annual rise in housing valuations since July 2015 when they rose by 57%.
John Bagshaw, corporate services director of Connells, attributed the busy market to buy-to-let investors looking to buy before the 3% stamp duty surcharge takes effect from April 1.
He said: “Many investors and second home buyers have begun the New Year eager to move up the ladder before this kicks in.
“The property market is also being buoyed by the recent announcement from the Bank of England that interest rates will be kept at rock bottom levels for the foreseeable future.
“So long as this remains true – and the general economic outlook stays healthy – acting sooner rather than later will seem the most sensible option to buyers and remortgagors.”
Buy-to-let valuations increased by 51% in the year to January 2016, though the remortgaging sector also soared by 97% over the same period.
Bagshaw added: “It might come as a surprise that there are still so many homeowners who are paying higher rates – and so are opting to remortgage – when rates have been so low for so long. But ultimately it’s a shrewd move – and one that is likely to remain popular with home owners so long as the Bank of England keeps rates at – or anywhere near – 0.5%."
