This is according to the latest research by Connells Survey and Valuation which found this to be the third successive month in which residential mortgage valuation activity has risen year on year.
However, the increase wasn’t solely an annual rise. In February, the total number of valuations for residential property increased by 53% compared to the previous month following the end of the seasonal lull.
In part, increasing activity has been driven by a strong growth in the number of vendors entering the market and looking to move. In February, there were one fifth more valuations for homeowners moving home than a year ago – a rise of 81% month on month. With 35% of all valuations conducted on behalf of home movers, this is the highest proportion of all Connells’ valuations since June 2010.
Commenting, Paul Staley, corporate services director of Connells Survey and Valuation, said: “It’s too soon to say the market has turned the corner, but there is certainly a growing optimism following a strong February, and talk of a ‘double-dip’ in the housing market has died away.
“In particular, the upper tier of the market has been uncharacteristically active as home movers look to buy or sell million pound properties before April’s stamp duty hike comes into play.”
Following the end of the seasonal lull, the number of first-time buyers on the market increased by 55% compared to January, according to Connells. Despite this monthly increase, there was an 11% fall year-on-year, highlighting the difficulty first-time buyers still face when seeking a mortgage.
Staley continued: “It’s encouraging to see a slight month-on-month improvement for first-timers, but they still face an uphill battle to get their first home. First-time buyers are the lifeblood of the housing market. Without more affordable mortgage products for them, we won’t see a sustained recovery. To help this we have teamed up with Skipton to offer a 95% LTV mortgages to target first-timers, but we need to see even more initiatives from other players in the market. It’s imperative that lenders take action to encourage more on to the property ladder by offering more affordable mortgage deals.”
