Valuations soar to boost property market

The number of property valuations rose sharply in June, pointing to a resurgence of growth in the housing market.

Figures from Connells Survey & Valuation show that there was an increase of 23% in valuations last month when compared with June 2014.

Against the rate recorded in May, it represented a rise of 42%.

John Bagshaw, corporate services director of Connells, said: “Britain’s property market is experiencing an early summer bounce, with all areas of demand for valuations showing strong growth.

“Home movers in particular are showing a very different sentiment to that seen in April and at the start of May, after the surprise certainty of the General Election result. Home mover demand is growing faster than the overall market trend and even outperforms the recent stalwart of the housing market, buy-to-let.

“Rising optimism is being fuelled by wage inflation and a more tangible sense of economic progress.”

Valuations for established owner-occupiers were up 34% year-on-year in June, while those commissioned by potential first-time buyers were up 16% over the same period.

Bagshaw added: “First-time buyers haven’t benefitted from higher house prices in the same way as those already on the property ladder. An era-defining shortage of suitable first-time homes, combined with still rapid rises in average prices are keeping many would-be homeowners renting for the time being.

 “Yet despite this, numbers of valuations for new buyers have shown a potent pace of double-digit growth. That suggests the lifting of the political mist and the long overdue take-off in the labour market are helping plenty take their first step into ownership."