Remortgages have been boosting the housing market’s activity. Homeowners have been keen to secure a low risk remortgage that can shield them from the warned interest rate increase. Due to this, the remortgage market has seen a boost in demand and in turn it has offset the decline in other areas of the housing market in the last few months. First time buyers have been noticeably absent in past months as they find it hard to secure lending and to obtain required deposits.

According to Connells Survey and Valuation’s recent activity data there was an increase of 7 per cent more residential mortgage valuations in March 2011 than one year prior. There was an increase of 5 per cent for March when compared to February data. In looking at data for the entire first quarter the data showed another increase comparison. There was a 24 per cent increase in valuations for the first quarter of 2011 when compared to prior quarter, which was the last 3 months of 2010.

Unlike previous months first time buyers showed a higher demand for valuations. This is likely due to better mortgage products being offered by lenders and falling house prices. There was also a strong demand for buy to let mortgage valuations in March, with a 5 per cent increase over February and a 14 per cent increase from a year ago. Remortgage demands dropped somewhat in March from February, but when compared with March 2010 there was still a 56 per cent increase.

Colin Dorman, Business Development of Director of Connells Survey and Valuation, responded to the data saying: "The real barometer of the health of the housing market is activity and this is showing signs of picking up - with a welcome boost in first-time buyer demand.

"While we are still 4% below last year’s level in March, the recent increase in the number of higher LTV mortgage products helped breathe some life into the first-time buyer market, and first-time buyer numbers have risen steadily for four consecutive months.

"In recent months, mortgage activity has been buoyed by the strong demand for remortgage products as homeowners look to get household finances in order before interest rate rises.

"This has been somewhat balanced by the rising costs of remortgage products, but there is still substantial demand from borrowers looking to fix rates while interest rates are low."