LONDON: United Kingdom’s housing market activity has climbed to its highest level in six months and the second highest monthly level on record, new data shows.
September saw just 0.5 per cent fewer valuations carried out than in March which was the highest on record, according to the latest research from Connells Survey & Valuation. On an annual basis, total valuation activity is up 29 per cent compared to September last year, after a 23 per cent month-on-month rebound since August, this year.
“Britain’s housing market is going from strength to strength. Against a brightening economic background, players in all parts of the market are feeling more confident about their prospects. Valuation activity is growing beyond the seasonal pick-up at the end of August, with year-on-year growth gathering momentum,’” John Bagshaw, the firm’s corporate services director, said.
The data also shows that the number of valuations carried out specifically for first-time buyers rose by 25 per cent in September compared to the previous month and an 18 per cent increase compared to September 2014.
Valuation activity among established home movers performed even better. The number of valuations carried out for those moving house rose 26 per cent when compared to last month and 23 per cent since September, last year.
“First time buyers aren’t just feeling more confident, they are now following this up with real action and contributing a good portion of growth in the UK housing market. There are no signs yet that schemes such as Help to Buy are going to be phased out, helping to suppress the barriers to setting a first foot on the ladder,” Bagshaw said.
“Meanwhile, wages are growing faster than inflation and purchase prices have cooled a little in recent months – all contributing to an acceleration in numbers of first time buyers. Moreover, the latest focus from the government on starter homes is a promising sign there is at least a strong intention to maintain support at the bottom of the ladder.
The data also shows that remortgaging experienced another stand out month. The number of valuations for those thinking of taking a fresh mortgage out against the value of their current home rose 16 per cent on August of this year and 49 per cent since September 2014.
