According to findings published by Connells Survey and Valuation, the number of buy-to-let valuations leapt by 34% compared to February last year, while remortgaging across all types of loans jumped by 41%.
On a monthly basis, activity in the buy-to-let sector saw an increase of 25% with remortgaging volumes climbing 6%, largely driven by buy-to-let customers.
Corporate services director John Bagshaw said the market should expect activity to “reach a crescendo” in March before slowing down in the second quarter of the year.
“Buy-to-let investors will be calculating the impact the Stamp Duty hike is having on their rental yields, while those thinking of remortgaging to fund a second home will weigh up whether it’s still financially viable for them to do so,” he said.
“But behind these somewhat frantic figures there is an underlying story of steady, long-term growth. Despite taking some political heat recently, the buy-to-let market continues to attract investment off the back of its potential returns, while the remortgaging sector remains popular with those looking to get a better mortgage or release capital on their home for investment purposes.”
The homemover and first-time buyer markets also witnessed strong rises in valuation activity from January to February, with increases of 35% and 36% respectively.
Valuations for fledging buyers saw a 9% increase compared to January, while homemovers experienced an 8% rise over the same period.
Overall, valuation activity was up 20% on a monthly basis and 21% on the same month in 2015.
Bagshaw added: “The housing market is getting into its stride as we move further into 2016. A number of factors have precipitated this. Monetary policy continues to, indirectly, stimulate property activity, as the Bank of England signals that the base rate will be held at record-low levels for the foreseeable future, thus keeping the average mortgage rate down. Many in the property market will be hoping such fair conditions last.”
