Although a summer decline in figures throughout the property and mortgage markets within the UK has been seen,
the mortgage broker will today be boosted by evidence to show that housing market activity has remained relatively robust. The latest Housing Market Activity Report by Connells has shown residential mortgage valuation activity increase year on year, increasing confidence within the market that economic life is set to improve.
Although the total number of valuations conducted throughout July rose by a sharp 47% compared to this time last year, there was still an 18% drop in residential valuations seen from last month’s figures, although the usual summer lull in valuation activity ensured that this was expected.
It appears that it was the increasing purchase activity by owner occupiers throughout the market which was the key drive in the annual increase in property and mortgage activity throughout the UK. It was the number of valuations of home movers (+32%) which has particularly stimulated the growth within the property sector on the previous July. However, there has also been a 34% increase on the number of first time buyers undertaking mortgage valuations within the last year, bringing significant hope to all potential young mortgagors
Corporate services director at Connells Survey and Valuation – John Bagshaw – has today claimed: We tend to see a slight dip in activity each year in July as the advent of the peak holiday season takes its toll. In addition, lenders who have scrambled in June to meet their half-year lending targets may be reining their lending levels back in.”
Bagshaw continues: “But the seasonal dip has been less pronounced than usual, and we’ve had our strongest July in four years as buyers and property investors take advantage of the improving range of mortgage products on offer.”
With buy to let investors looking to purchase properties at a higher rate than in recent years and with remortgaging activity displaying its highest annual rise of all time and increasing by 99% within the last year, the mortgage markets within the UK. As a mortgage broker, we can only hope that confidence within the market remains, benefiting all parties concerned.