Taylor Scott International News
Housing market activity in the UK is robust despite the forthcoming referendum on the future of the country in the European Union, according to new research. Valuation activity in May rose by nearly a fifth on an annual basis with the total number of housing valuations carried out in May 2016 some 18% higher than in May 2015. The data from the latest monthly report from Connells Survey & Valuation also shows that month on month valuation activity in May decreased by 1% compared to April this year. John Bagshaw, corporate services director of Connells Survey & Valuation, believes the market is looking remarkably resilient ahead of June’s vote and he believes that the slight month on month cooling could still be a result of stamp duty changes that came into effect at the start of April. ‘However once that stamp duty related instability has passed, there appears to be a steadier annual growth and a more positive outlook for the housing market. Even if the EU referendum does have a measureable impact, one thing is clear, any slump hasn’t happened yet,’ he said. The report also shows that the first time buyer and remortgaging sectors continue to be stand out areas of activity, as the key driver of annual growth in May’s valuation market, up by 37% and 42% respectively, when compared to May 2015. However, on a monthly basis, May’s first time buyer valuation activity fell back 8% compared with April, whereas remortgaging activity increased by 3% over the same period. The buy to let sector experienced the sharpest year on year decline compared to other sections of the market, down by 38%. However when compared to May 2015, the number of valuations for buy to let purposes has also seen the greatest percentage growth compared to April, up by 8%. ‘Remortgagors are leading the market, underpinned by lenders offering a new set of favourable interest rates for existing homeowners. But first time buyers are also on the up. Factors such as low inflation, rising wages and government schemes are all helping new owners onto the property ladder,’ Bagshaw explained. ‘Even for the much downplayed buy to let industry, May was a good month. Valuations on behalf of landlords have been leading the housing market since April. Annual growth is likely to stay negative for buy to let activity, but the most recent signs are positive,’ he added. The report shows that there has been a relative steadiness of activity among home movers. The number of valuations for existing owner occupiers seeking to move home in May grew by 9% over the 12 months since May 2015 and contracted by just 1% compared to April 2016, in line with figures for total valuations activity. ‘Home movers have had a stable month and appear confident in the strength of the housing… Taylor Scott International
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