The Connells Survey and Valuation Index analyses valuations data received from its estate agent business including its team of in-house chartered surveyors. Researchers analyse thousands of applications, approvals and valuations to publish a monthly report.
The research found that while most of the housing market began the year with a subdued outlook, buy-to-let bucked this trend with strong growth in buy-to-let valuations activity in January. It was the strongest performing sector with 37% growth in activity since the previous month, and on an annual basis the smallest dip of just 4%.
John Bagshaw (pictured), corporate services director of Connells Survey & Valuation, said: “The buy-to-let sector has bounced back after a disappointing performance in December when it had seen one of the biggest monthly falls.
“It now looks to have regained that lost ground as landlords – now spoilt for choice with a record number of mortgage products to choose from – begin to invest more. Low mortgage rates have also continued, posing even more attractive deals for potential landlords or those expanding portfolios.”
The first-time buyer sector of the housing market was the only other sector which saw a monthly increase in valuations activity. On a month-on-month basis, activity for first-time buyers increased by 3% though on an annual basis it saw one of the biggest falls of 28% compared to January 2014.
By contrast, activity for those already on the property ladder has been subdued. On a monthly basis valuation activity dipped by 4%, though compared with January last year, valuations activity fell by a steeper 23%.
Remortgaging saw one of the biggest falls in activity both on a monthly and annual basis. Since December, recent activity fell by a quarter (25%), while compared with January 2014 it decreased by 28%.
Doug Hall, director of packager 3mc, pointed out that the Mortgage Market Review has had an effect on the residential market and this has led to lenders pricing deals more competitively in the buy-to-let space.
“Rates are more attractive in buy to let as lenders look to hit volumes and lending targets at the beginning of the year. Landlords with the right gearing, of a loan-to-value of 65% or less, looking to remortgage can fix for three to five years at under 4%.
“Meanwhile professional landlords might be looking at higher yielding assets such as HMOs and semi-commercial property.”
