The latest research from Connells Survey & Valuation suggests that the buy-to-let sector is struggling.
Data from the report indicates valuations were down by 26% over the course of the last year, following a year full of significant legislative alterations.
Despite the slowdown seen in the buy-to-let sector, overall housing market activity during December 2016 was up by 8% on December 2015. What’s more, activity was 40% up from December 2014.
John Bagshaw, corporate services director of Connells Survey & Valuation, observed: ‘Looking back over the year, the market has regained a great deal of its strength with consumers’ confidence on the mend.’
‘Rates are low and employment is high-that’s a great recipe for a healthy housing market. And the buy-to-let market’s loss has been owner-occupiers gain as those looking to get on the ladder or trade-up have been left facing less competition for the properties they want to buy,’ he added.
Valuations for those selling property rose by 25% between December 2015 and December 2016. During the same period, valuation activity for those looking to remortgage rose by 19%.
Continuing, Bagshaw said: ‘The housing market has been recovering since September and had a great December. Compared to 2015 it looks good. Compared to December 2014 it looks exceptional. First-time buyers and people selling property have regained much of the confidence they lost in the wake of the Brexit vote.’
Buy-to-let activity down by 26% year-on-year
‘With interest rates still at record lows, many buyers are taking the opportunity to buy property that would have been regarded as a bargain at that price just of a couple of years ago.’
According to the report, the number of property sellers was up by 32% over the course of the year. In addition, remortgage activity was up by 68% as consumers have taken advantage of some very cheap mortgage deals.
Concluding, Mr Bagshaw noted: ‘Looking back over the year, the market has regained a great deal of its strength with consumers’ confidence on the mend. Rates are low and employment is high –that’s a great recipe for a healthy housing market.’