Figures from its Housing Market Activity Report show residential mortgage valuation activity continuing its strong annual growth despite a monthly dip in activity compared to September.
The total number of valuations conducted during October dropped by 17% on a monthly basis due to the strong seasonal uplift witnessed in September.
However the monthly decline in October was a much less severe drop of activity that the average decline of 24% usually seen between September and October.
John Bagshaw, corporate services director of Connells Survey and Valuation, said: “Following the flurry of higher loan to value deals that hit the market in late summer, most lenders have adopted a more cautious approach given the ongoing concerns over rising unemployment and their exposure to the eurozone crisis.
“There may be 90% LTVs on the market, but lending targets are still historically low, limiting the number of buyers and homeowners able to take advantage.
“Since 2007, a seasonal drop in activity of nearly a quarter has been the norm at this time of year, but the market performed more robustly than anticipated in October.”
Purchase activity from owner-occupiers and first-time buyers showed strong annual growth, despite a monthly decline. Although the number of valuations for home movers dropped by 13% in October compared to the previous month, there were still 54% more than a year ago
The number of valuations for first-time buyers in October was 43% higher than a year ago, despite a 20% drop compared to September.
Bagshaw added: “While there is still concern about the state of the economy and the direction of house prices, the rising cost of renting is making the prospect of homeownership increasingly attractive for first-timers – especially given the historically low interest rates.
“We anticipate activity to steadily increase in the next few months as first-time buyers look to move before the end of the stamp duty holiday in March.”
