The fall was smaller than the average drop of 20% between November and December since 2007.
The robust December performance contributed to increased demand for valuations in fourth quarter of 2011 as a whole.
During Q4 2011 valuation activity grew by 3% compared to the previous quarter, an increase of 71% compared to Q4 2010.
Throughout the whole of 2011 there were 43% more valuations than in the previous year.
John Bagshaw, corporate services director of Connells Survey and Valuation, said: “Better than expected lending figures as banks and building societies hurried to meet full-year targets helped drive the annual increase in valuation activity in the run up to the New Year, a welcome contrast to the situation last December, which saw a dismally low level of lending.”
In Q4 2011 there were 9% more valuations for first-time buyers than in the previous quarter, an annual increase of 56%. Similarly, valuation activity for home movers grew by 6% on a quarterly basis, a 61% increase compared to the final quarter of 2010.
John Bagshaw, added: “The final month of the year tends to be fairly sluggish but resilient first-time buyer demand has cushioned the typical seasonal downturn.
“We are starting to see first-time buyers with finance act with a greater degree of urgency to move before the end of the stamp duty holiday in March. This should filter up property chains, helping bolster spring activity.”
Buy-to-let activity increased annually in Q4 2011, rising by 83% compared to Q4 2010, despite a quarterly fall of 11%.
John Bagshaw concluded: “Growing remortgaging and buy-to-let activity were key to the resilience of the mortgage market last year and this is likely to be the case as 2012 progresses.
“Although the eurozone crisis may impede lenders from drastically growing their loan books, tenant demand and rents will remain strong, enticing new investors to the sector.
“With the ongoing crisis also impacting on banks’ funding costs, remortgaging is likely to increase in popularity as borrowers look to take advantage of cheaper longer-term options before the cost of new products rise.”
