Market growth fueled by remortgaging

Market growth fueled by remortgaging

A new report from Connells Survey & Valuation has found that the recent ban on lettings fees has hit Novembers BTL valuations - causing a 6.1% drop against the previous month.

However, there was a surge of activity in people looking to remortgage in November with valuations rising 4.9% compared to October and a 24.6% increase on an annual basis.

The first-time buyer market also saw an increase of 1.8% month-on-month and 13.1% annually.

Connells also reported was a slight lull in activity in the home mover segment with demand falling 0.8% month on month.

On a seasonally adjusted basis, overall valuation activity was virtually static in November as the number of valuations fell marginally, down 0.1% on October. There was, however, a 6.6% increase in the number of valuations undertaken compared to November 2015.


John Bagshaw, corporate services director of Connells Survey & Valuation, said: “There’s no doubt that remortgaging is driving the mortgage market at the moment. While the number of buy-to-let valuations is down almost nineteen per cent compared to November last year, remortgaging activity is up twenty five per cent. Homeowners want to lock into deals before rates rise.

2016 has been something of an annus horribilis for landlords. They have had to contend with the reverberations of the 3% stamp duty surcharge and the removal of 10% 'wear and tear' allowance. Fortunately, June through to October were all relatively good months for BTL remortgages with activity rising on a seasonally adjusted basis. The sector was beginning to find its footing again. However Phillip Hammond’s latest proposals regarding lettings fees appear to have unsettled the market again.

On an annual basis first-time buyers, home movers and those looking to remortgage are pretty active. The annual increase in activity in these sectors has demonstrated the current strength in the market and there has been no drastic change in activity on a monthly basis, as the market remains stable and will be adjusting to changes in the coming months."

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Kelvin Lloyd
Kelvin Lloyd 09 Oct 2017

IT is up, to the Planners. If they will only give permission for bungalows on certain (suitable) sites, they will be built.

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maggie swift
maggie swift 09 Oct 2017

It's just the beginning of the shocking rise.

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maggie swift
maggie swift 09 Oct 2017

I have recently read that the bungalows can provide social housing for elderly residents in London.

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zoe glover
zoe glover 05 Oct 2017

Update! Worst company I have ever dealt with. Undervalued a Cambridge property by over 100k, wont take on any evidence of valuation including a RICS valuation done 3 years ago for the very same value...

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Paul Edwards
Paul Edwards 27 Sep 2017

Its nonsense articles such as this that make it harder to get clients to realise just how difficult the market is out there. When you see Rightmove and there are more 'price reduced' then 'new' most days...

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Tom Allen
Tom Allen 20 Sep 2017

Absolutely agree with you!

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RyanGeo
RyanGeo 18 Sep 2017

A sharp correction would be a less dramatic expression to use. That is already underway in certain sectors in Reading where I practice as Chartered Surveyor

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sean benton
sean benton 01 Sep 2017

Identity theft is a thread for any profession. So,people should stay alarmed. I once take help from a letting agent and came to know that letting agents are taking every precaution to prevent fraudulent...

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Mark N.
Mark N. 30 Aug 2017

We have seen a surge in instructions over August and that should continue into September too.

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Chris
Chris 30 Aug 2017

Unfortunately, all the legislation bears its force on Landlords and ignores, naively, the effect of Rogue Tenants on the ability of landlords to keep houses in repair and offer properties for rent at reasonable...

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Christian Donovan
Christian Donovan 18 Aug 2017

The write-down on house values, combined with the fall in the GBP saddled the fund?s property portfolio with a 1.4% loss in the second quarter. The shocking amount of $240 million.

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Samantha Goodman
Samantha Goodman 11 Aug 2017

Interesting point of view.

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