Buy-to-let was the only market section not to shrink in July, according to the latest Housing Market Activity Report by Connells Survey & Valuation.
Residential valuations fell by 13 per cent compared with June, despite the total number of residential valuations growing by 8 per cent in July, compared with a year ago. Connells attributes this slowdown in activity to the impact of the ongoing sovereign debt crisis in Europe.
Connells’ corporate services director John Bagshaw says: “The UK’s mortgage market continues to feel the effects of the financial crisis across the channel and the ongoing economic recession. Lenders concerned about the impact of a deterioration in the eurozone have been concentrating on consolidating their balance sheets rather than new lending, putting the brakes on valuations activity.”
Buy-to-let was the only market sector not to demonstrate a monthly decline in July. The sector also experienced an annual growth of 31 per cent. Buy-to-let valuations grew to 14 per cent of Connells valuations, from 12 per cent in June.
First time buyer figures fell by 20 per cent compared to June, homeowners on the move fell by 17 per cent and remortgage valuations were down by 1 per cent. Buy-to-let remortgaging comprised 26 per cent of all remortgaging activity in the month.