According to Connells Survey and Valuation, residential mortgage valuation activity has now risen year-on-year for five successive months.
Despite this, April recorded an overall drop in the number of valuations conducted compared to March 2011, with activity dipping by 14%.
Connells said the drop in activity was due to the shorter working days in April.
“April tends to be a trickier month for the housing market with the onset of Easter and the sheer number of bank holidays reducing the volume of buyers hitting the streets and looking to move,” said Colin Dorman, business development director of Connells Survey and Valuation.
“In spite of the added distraction the market performed resiliently, surpassing the level of activity of a year ago.”
Connells said that the annual increase in valuations has been largely driven by a strong increase in activity from property investors.
In April, there were 43% more valuations conducted for prospective landlords than in April 2010, although this is an 11% fall compared to March.
Dorman added: “The buy-to-let market continues to pick up momentum as rents and yields for landlords go from strength to strength. Lenders are increasingly upping their level of lending to the buy-to-let sector, and many investors with sizeable deposits are taking advantage and are piling into the sector.”
April also saw the number of valuations for remortgagors fall by nearly a quarter (24%) compared to March. However, it remained 50% higher than a year ago.
There was also one fifth more valuations for first-time buyers (19%) than in April 2010.
Homeowner valuation activity increased compared to a year ago, increasing by 14% compared to April 2010, although this figure was down 6% compared to March.
Dorman added: “The bottom line is that the housing and mortgage market is moving, albeit steadily. However, to build momentum it is crucial that lenders up their commitment to helping first-time buyers on to the property ladder.
“While there are encouraging signs that banks and building societies are beginning to offer more attractive deals to some first-timers, we need to see far more to match the strong demand from the UK’s would-be buyers.”
