Cookies on the this website
We use cookies to ensure that we give you the best experience on our website. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on this website. However, if you would like to, you can change your cookie settings at any time.
Continue

New to PropertyWire?

Welcome, and thank you for visiting our website.

PropertyWire is the leading publication for property investors and industry professionals interested in the world of international property investment.

Our aim is to give you intelligent commentary and analysis on the world of retail and commercial real estate.
If you've enjoyed what you've read so far why not sign up for our FREE property alert and online magazine PropertyWire Confidential.

Every week the PropertyWire team sends out a hard-hitting newsletter packed with news and analysis of the top stories plus the best investment opportunities on the market. We always look at the bigger picture like the Euro Crisis, and explain how this will affect YOUR investments.


Ask me later
No thanks

Sun
Oct 26th
Lost Password? Register
Home arrow News arrow Europe arrow UK residential valuation market sees strong growth thanks to buy to let sector

UK residential valuation market sees strong growth thanks to buy to let sector

Tuesday, 08 January 2013
Image
Valuation activity in the UK residential property market grew annually for a third consecutive month in December, on the back of particularly strong growth in the buy to let sector, a new report shows.

The latest Housing Market Activity Report by Connells Survey & Valuation shows that the number of residential valuations conducted was 2% greater than a year ago. This improvement came despite the expected seasonal fall in activity, down 15% from November.

December’s annual growth contributed to stronger performance from the valuations market in 2012 as a whole, the firm said. The total number of valuations in 2012 was 12% higher than in 2011, the most annual activity since 2007.

‘2012 was the best year for the valuations market since the credit crunch began. We usually see the market pause for breath in December, and this was certainly the case compared to November. But three months of annual growth in valuations show how the mortgage market is now making steady, if still gentle progress,’ said John Bagshaw, corporate services director of Connells Survey & Valuation.

He pointed out that the annual rise in buy to let activity in December was pivotal to year on year growth in the wider valuations market. In the month, there were 22% more buy to let valuations than a year ago, despite a monthly seasonal fall. Over the whole of last year, buy to let activity grew by 33% compared to 2011 and represented 14% of all valuations in 2012, an increase from 12% of activity in 2011.

‘Buy to let was favoured more than anything else by conditions in the housing market last year. Alongside growing tenant demand and rising rates, buy to let borrowers, who tend to have substantial equity, have benefitted from Funding for Lending bringing down mortgage rates even further at lower LTV bands. With the gap between rental income and mortgage payments looking lucrative, demand from investors is likely to remain strong as the year progresses,’ explained Bagshaw.

First time buyers also had a positive December compared to a year before, another key factor behind the total annual growth. Valuations for first time buyers grew 11% from December 2011, in spite of a monthly fall of 10%. First time buyer activity has now grown on an annual basis for four consecutive months.

‘There were improvements in mortgage availability in the latter months of the year, but lenders’ criteria are still putting the brakes on serious progress. For first time buyer numbers to really build up any steam this year, more buyers without substantial deposits will need to be able to access the finance they need to leave the private rented sector and overcome a difficult saving environment,’ added Bagshaw.

Remortgaging saw a significant annual fall in December, with 16% fewer valuations compared to December 2011 after a 16% fall since November. Meanwhile, the number of valuations for home movers also dropped in the month, falling 15%, to leave the number of home movers 2% lower than a year before.

Bagshaw believes that his year, Funding for Lending will keep many mortgage rates low, but not all borrowers are benefiting. ‘In many parts of the country reduced equity is limiting the number of owners able to move or remortgage onto the cheaper rates on offer. It wouldn’t be only first time buyers who would gain from a greater availability of higher LTV mortgages. If this happens in 2013, it could be a great catalyst for the whole housing market,’ he said.


BOOKMARK THIS PAGE (What is this?)     Digg!Reddit!Del.icio.us!Google!Live!Facebook!StumbleUpon!Newsvine!Furl!Yahoo!

 
More Recent News
Earlier News
To see all the latest news articles in our monthly online magazine, Property Wire Confidential, sign up free here



Europe: Top Headline

UK home owners set to spend £6 billion on property upgrades in next three yearsUK home owners set to spend £6 billion on property upgrades in next three yearsNearly a third of UK home owners are looking to carry out work on their home in the next three years, with up to £6 billion in projected works planned annually over the next three years.



West Tower

West Tower

West Tower

Car park

West Tower

home rental guide

Limousin Guide

Barratt Homes

Limousin Guide

Search for Properties:

Feature story

Student accommodation investment check List

It’s the UK’s strongest asset class, but are all student accommodation properties good investments? This is the comprehensive list of what to watch out for when buying student property.

 

Company news

Real estate franchise Century 21 reports surge of new offices in UK

Property franchise Century 21 UK has announced the opening of a number of new offices around the country.

Finance Update

Nationwide resumes access to Help to Buy for home movers

Nationwide Building Society has announced that it is resuming access for home movers looking to participate in the government’s Help to Buy equity loan scheme from Wednesday, 24 September 2014.

Features

Student accommodation investment check List

It’s the UK’s strongest asset class, but are all student accommodation properties good investments? This is the comprehensive list of what to watch out for when buying student property.

 

Newsletter

Subscribe to our weekly newsletter and stay updated on the property market trends.
Subscribe now >>

Subscribe to our Europe property and real estate news feed (RSS)