A substantial growth in the UK property market has seen a surge in residential property valuations, according to a new report.
Data from an investigation by Connells Survey and Valuation shows that property valuations in June were up by 42% month and month and 23% year on year.
Valuations for current owners occupiers looking to move home were particularly strong, up by 34% June in comparison to the same month last year and 51% in comparison to May.
The report suggests that home movers especially are showing different trends to those seen in April and the beginning of May. Demand is growing faster than in the market as a whole, even more quickly than the surging buy-to-let sector.
Additionally, the data indicates that valuations for first-time buyers during June were up by 16% annually and by a large 42% on last month. For the buy to let sector as a whole, valuations increased by 24% year on year and by 22% in comparison to May. For those looking to remortgage their home, valuations rose by 17% annually and by 44% month on month.
Valuations in residential sector up in June
John Bagshaw, corporate services director at Connells Survey and Valuation, commented that, ‘first-time buyers haven’t benefitted from higher house prices in the same way as those already on the property ladder. An era defining shortage of suitable first time homes, combined with still rapid rises in average prices are keeping many would be home owners renting for the time being.’ Despite this, Bagshaw observes, ‘numbers of valuations for new buyers have shown double digit growth.’
However, he went on to say that remortgaging valuations fall behind many other sectors in terms of yearly growth. He feels that, ‘this could also be a sign that the numbers remortgaging to access a better mortgage rate may have reached a plateau.’