The number of valuations for current homeowners was up by over a quarter compared to April and by 54% compared to May 2009.
Connells said the increase in valuation activity was driven by a pick-up in the number of homeowners looking to move, though the biggest year on year rise was in remortgage valuation activity which was up 63%, albeit from a low base.
Despite a strong annual improvement in the number of valuations for buy-to-let investors of 35%, the number of valuations on let properties decreased in May compared to April, falling by 2%.
Buy-to-let valuation activity dropped off slightly in the past month despite an increased number of buy-to-let mortgages becoming available, indicating that landlords are holding off selling ahead of any announcements about capital gains tax in June’s forthcoming Budget.
Ross Bowen, managing director of Connells Survey and Valuation, said: “Many potential landlords are waiting to see exactly how changes to the capital gains tax will affect them.”
Valuation activity overall was up 27% this May compared to May 2009, the highest annual change since Connells Survey and Valuation began compiling their valuation index five years ago.
Bowen said: “We’ve seen a strong post-election bounce. While doubts still linger about the measures to be introduced in the next budget, the underlying fundamentals are in place for the recovery [in the housing market] to stay on track.
“Since HIPs were suspended two weeks ago, the number of sellers hitting the market has picked up - but it is still too soon to call the full impact of this change in policy.”
First-time buyer activity in May was higher than April (+4%), but still down 5% on the same month in 2009.
Bowen said he expected the Budget to provide some much needed clarity for those looking to sell property.
He said: “The housing market’s recovery seems firmly entrenched, and we are in much better shape than 2009.
"But, we are not in the clear yet. The prospect of public spending cuts – and the rise in unemployment these may bring - looms on the horizon.
“We need to wait for the budget to see how the new government will maintain the recovery’s momentum.”
