Property valuations increased across UK in June – despite EU referendum
THE pace of property valuations conducted in June 2016 in the UK increased both an annual basis and month on month, according to the latest research.
The total number of valuations carried out in June rose by four per cent compared to June 2015, and 24 per cent compared to the previous month, the report covering the month of the European Union referendum from Connells Survey and Valuation shows.
John Bagshaw, corporate services director of Connells Survey and Valuation, pointed out that the background to the figures is one of uncertainty and shock in the days after the UK decided to leave the EU, yet the property landscape appears surprisingly stable which he believes is encouraging.
‘Initial solidity from the post-Brexit housing market may not be enough to answer all the new legal and financial questions in light of the vote or to offset a likely blow to confidence on the near horizon. But this should bring such fears into perspective. Life will go on and the property market will continue to function,’ he said.
Leading the June housing market, activity from first-time buyers accelerated last month, making up for a considerable slowdown in buy-to- let valuations. Numbers taking their first step onto the property ladder rose 23 per cent year on year, whereas buy to let valuations decreased by 40 per cent over the same period.
This is on the back of 27 per cent month on month growth for first-time buyer valuations, ahead of the general seasonal pick- up in total activity, while buy-to- let valuations increased by 17 per cent since May, considerably slower than the overall picture.
‘First-time buyers continue to drive activity in the housing market, an emerging trend since the start of the year and now reaching a new peak. Government schemes such as Help to Buy continue to be significant. But now a slowdown in the buy-to-let sector may be adding an extra short-term boost for new buyers, as competition from landlords diminishes a little, easing the hunt for a home for sale,’ Bagshaw explained.
Remortgaging has also seen a significant boost in valuation activity in June. The number of valuations carried out in June for those looking to remortgage rose by 18 per cent on a 12-month basis and 19 per cent month on month.
Home movers were more cautious. Valuations for existing home- owners looking to move to a new property decreased by seven per cent on an annual basis since June 2015. However, the number of such home owner valuations rose by 29 per cent since May.
‘Home movers have once again had a stable month, and this section of the market has enjoyed the strongest seasonal acceleration from May. Meanwhile, remortgaging is the other major winner from a time of consistently low mortgage rates and a possibility of even lower borrowing costs over the summer,’ Bagshaw pointed out.
‘As seen in recent months, many people are taking advantage of these rates and switching to better mortgage deals. While the coming months are far from certain, so long as lenders remain financially healthy there’s a good chance that expected lower interest rates could feed through to even better mortgage rates and a further wave of remortgaging activity,’ he added.