The research by Connells found that buy-to-let valuations comprised 14% of its business, up from 12% in June.
John Bagshaw, corporate services director of Connells Survey & Valuation said growth of the sector has come as a side-effect of the subdued house purchase market.
“With far fewer first-time buyers than before the initial credit crunch, demand for rented accommodation is still growing, presenting investors with excellent conditions to achieve healthy yields. It’s no surprise that money is still pouring into buy-to-let and demand for finance is still climbing.”
Despite the bumper performance from the buy-to-let sector, the mortgage market continued to slow in July. Connells said the total number of residential valuations conducted during July rose by 8% compared to a year ago, however valuations fell 13% compared to June as the eurozone crisis continues to hamper the mortgage market.
The number of remortgage valuations in July dipped by 1% compared to June, albeit rising by 18% compared to the previous year. Buy-to-let remortgaging comprised 26% of all remortgaging activity in the month.
Bagshaw added: “Remortgaging fell slightly compared to June, but the remortgage market has come a long way in the last year. In many cases, higher variable rates are still causing borrowers to consider their options, while recent remortgaging figures have been buoyed by landlords looking to unlock funds to re-invest.
“We have also seen a flurry of attractive long-term fixed rates for homeowners with substantial equity just hit the market. As mortgage holders with lower LTVs start to take advantage, it should bolster monthly remortgage figures in the medium-term.”
