Prop­erty val­u­a­tions in­creased across UK in June – de­spite EU ref­er­en­dum

The Oban Times - - Property -

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.

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