The housing market showed signs of upcoming growth in February according to information from Connells Survey and Valuation. The valuations showed first time buyer activity had grown to an eight month record. Growth was recorded across all sectors. First time buyers growth increased by a strong level of 52%, while home movers activity grew by 59% in a month to month comparison. Overall, valuations increased by 50% from January and declined by 4% with an annual comparison. It is the smallest annual decline since September of last year.

The upward rising outlook of consumers and buyers is credited to positive expectations for economic growth. The competitive environment that has developed between lenders pushing interest rates to record lows is also a strong factor in borrowers choosing to take the initiative in making the most of the opportunities in great deals.

John Bagshaw, corporate services director of Connells Survey & Valuation, said, “After an extended period of fairly subdued activity it is encouraging to see the market shake off its winter blues. It is especially positive that all the sectors posted big gains. The first quarter is normally a strong one so after a relatively weak January it is reassuring to see February come back so strongly.

“The recently announced "Starter Homes" project should provide more additional support to the sector. Although the scheme is fairly moderate in size the 20% discount being offered to first-time buyers under the age of 40 provides a welcome sign that the government is keen not to be seen to turn its back on first-time buyers.”

The outlook for the housing market is positive over the next six months, and that will be good news for homeowners looking to remortgage. Rising equity will put many in a good position to do a cash equity release to allow the homeowner the ability to lower debt, pay for a holiday excursion, fund a home improvement, or other cash need.

Remortgage valuations in February grew by 48%, but it was a decline of 10% compared to last year. This is not surprising as demand for remortgages has been low despite the ability to get a long term fixed rate that could offer substantial household savings.