Valuations activity within the buy to let sector improved during the month of November, according to the latest report from Connells.  Residential valuations improved more than 2% compared with the same time last year.  This is the second month in a row for improved activity.  New valuations helped figures mostly, as an 18% increase took place this year compared to last.

Corporate services director of Connells Survey and Valuation, John Bagshaw, commented on the spike in valuations, saying: “November was far from a stellar month for the mortgage market by historic standards, but valuations activity saw annual growth for a second successive month. The seasonal monthly drift down we’d expect at this point in the year has been less pronounced than in previous years although success has been confined to certain parts of the valuations market, with buy to let a star performer.”

Overall, buy to let valuations comprised almost 20% of the entire market.  This is the highest percentage since 2007.

Bagshaw continued: “Cheaper credit from the Bank of England has so far mainly gone to lower LTV products, such as buy to let mortgages, due to the requirements on banks to simultaneously hold more capital. Meanwhile, investors are picking up on the severe lack of supply and strong yields in the lettings market, making good use of these cheaper mortgages.”

Buy to let remortgages are still an underused resource as far as income producing is concerned.  Homeowners are inherently blind typically to property becoming an income producing entity.  The number of buy to let remortgages has decreased recently due to the challenging economic conditions, but should pick up as the New Year gets into full swing.