UK Remortgage Activity Surges in May
The UK housing market data from the month of May proved quite encouraging in some areas, whilst some areas are still in need of a boost. Buy to let valuations are one area which was quite encouraging, as year on year growth came in at 33%. An increase of 3% valuations took place compared with the month prior in April. First time buyers fell off by the same 3% compared with April, and dropped off by more than 12% year on year.
Remortgage activity was strong in the month of May. Valuations surged month on month at a 9% rate and more than 30% year on year.
John Bagshaw with Connells Survey and Valuation commented on current trends within the market, saying: "Britain's buy-to-let market is booming right now as would-be landlords are eager to enter the sector and current landlords look to expand.
"However for first-time buyers, May was not just less positive than the rest of the housing market, but also disappointing in comparison to the previous month. Previously, valuations for new buyers had proved resilient in April, even when uncertainty about the impact of the election result on home-buyers was at fever pitch.
"The picture painted here is a consistent one. Fewer people looking to buy their first home means more tenants sticking to the rental sector. As such, new landlords enter the market and those already in the sector grow their business to capitalise on the increased demand. Yet what remains unclear is how long this contrast in fortunes will continue."