The nationwide valuer said the abolition of Home Information Packs had also contributed to the increase in the number of people looking to sell their homes.
Valuation volumes in the second quarter of 2010 were up 9% on Q1 2010, and up 13% on the same period in 2009. The number of valuations for home movers was up 6% month on month, suggesting that homeowners are looking to remortgage ahead of any interest rate changes.
Ross Bowen, managing director of Connells Survey and Valuation, said: “Summer has brought a seasonal uplift in activity but this has been exaggerated by the decision to discard HIPs. In June, there was a strong bounce in the number properties hitting the market and it’s not just speculative sellers testing the waters. Thousands of homeowners are no longer trapped in negative equity, and are looking to move up the property ladder.”
The first-time buyer market did not show such strong progress. Although there was a seasonal increase in valuations, jumping by 36% compared to May – this was only a slight improvement on June 2009 (+1%).
Remortgaging activity grew in June, despite the constrained lending market. Valuations for remortgagors increased by 30% month-on-month. This represents a year-on-year increase of 53% - albeit from a very low base.
Bowen added: “The housing market showed a strong resilience in the face of the economic uncertainty in the run-up to the emergency budget and activity is growing despite the recent austerity measures.
“But let’s not get carried away. The new budget will place household finances under greater strain in the medium-term. And mortgage finance remains a fundamental obstacle for buyers and is holding back the lifeblood of the market - first-time buyers.”
