The number of residential valuations completed so far in 2013 has exceeded the 2007 record, activity in the housing market has been greater this year than in 2007, with the first six months of 2013 seeing 1% more valuations than in the same period six years ago.
Derby, Derbyshire -- (ReleaseWire) -- 07/12/2013 --Figures were bolstered by a particularly strong month in June. The total number of residential valuations conducted in June rose by 54% from a year ago, marking the ninth month in a row of year-on-year growth. On a monthly basis, valuations activity has picked up by 36% since May.
Max Erskine of Mortgage Advice said: “It’s been a long six years since there was such a positive feel about the housing market, but, still we shouldn’t get carried away.
“The credit crunch is still lurking in the background, with Europe and now even China serving as constant reminders of the danger of over-optimism.
“But in the UK things are stabilising, and this is feeding positivity in the housing market. Activity has grown rapidly during the first half of the year, with June figures looking particularly positive.
After nine months of year on year growth, the market is going from strength to strength.”
Erskine continues, much of the activity is due to an ongoing surge in remortgaging. The number of remortgaging valuations in June was 94% higher than in the same month last year, while on a monthly basis remortgaging in June saw 54% growth. This in return has seen an increase in mortgage completions in 2013 for UK Mortgage Advice.
Activity in the Buy to Let market has also as seen a dramatic increase, with valuations for landlords in June up 59% compared to a year ago. On a monthly basis, buy-to-let activity has grown by 32% compared to May.
Since the start of the year the expanding range of products on the market has seen a strong uptake from those looking for lower monthly rates.
Fixed rate deals are seen as an increasingly popular way to avoid any chance of higher rates in the future.”
Alongside rapid increases in other sub-sectors, first-time buyers have also seen a strong improvement.
First time buyers now make up 31% of the valuations market compared to 33% in June 2007.
There was a slight increase (1%) in the volume of valuations by first-time buyers compared to June 2007.
Affordability and accessibility are still poles apart. Lower mortgage rates for established homeowners have worked wonders for thousands of stretched households. But it has taken longer for first-time buyers to benefit from Funding for Lending.
Progress for first-time buyers has picked up and has steadied. Now, with more valuations for new buyers this June than in the same month in 2007, it looks like progress towards something like pre-crisis normality could finally be on it's way back.
About UK Mortgage Advice
UK Mortgage Advice are independent mortgage brokers, giving advice and arranging mortgages for clients throughout the UK.