On a monthly basis, total valuations dropped 17%. However, this is slightly lower than the average decrease of 18% typically recorded from November to December for every year since 2010.
Remortgaging is the strongest performing sector of the market with a 25% surge year on year to December 2014, while the number of valuations for first time buyers increased by 9%, despite the fact that valuations dropped by 16% compared to the previous month.
The data mirrors the latest LSL/Acadata house price index which saw average house prices in England & Wales rise by 9.6%
John Bagshaw, Corporate Services Director of Connells Survey & Valuation, comments:
“In recent months the housing market has bounced back despite fears of a cooling market in the autumn. This latest increase in valuations activity does contrast with more rapid expansion recorded earlier in 2014. But a more balanced and sustainable pick-up bodes well for 2015.
“Thousands of households are taking advantage of the record low rates and this looks set to continue for the foreseeable future. For example, just this week Barclays launched a new 10 year fixed rate at less than 3%.
“However, remortgaging has wind in its sales as we enter 2015. With the Bank rate set to remain at its historic low for some time, lenders will probably be able to offer even more competitive rates very soon.
“With an improving jobs market, greater mortgage affordability and consistent above-inflation wage growth it is clear that confidence is returning to first time buyers. Looking ahead, the recent changes to stamp duty and the ongoing Help to Buy Scheme should help this sector continue to perform well in 2015.
“After a slightly disappointing performance in October and November, first time buyer activity seems to have regained strength. This sector of the property market was particularly affected by the spate of regulatory policies such as the loan to income caps. Coupled with rising house prices these lending restrictions have proven a hurdle for first time buyers.
“With households still stretched and government support focused on first time buyers, this restrained pace of growth may continue in 2015. The introduction of strict lending criteria has meant that – even with a host of extremely competitive mortgage rates – many households in the middle rungs of the housing ladder are still a long way from considering upsizing.”
