Remortgaging outperformed all other forms of mortgage market activity in November, according to the latest research from Connells Survey & Valuation.
It reported an increase in activity in people looking to remortgage in November with valuations rising 4.9% compared to October and a 24.6% increase on an annual basis.
On a seasonally adjusted basis, overall valuation activity was virtually static in November as the number of valuations fell marginally, down 0.1% on October. There was, however, a 6.6% increase in the number of valuations undertaken compared to November 2015.
John Bagshaw, corporate services director of Connells Survey & Valuation, said: “There’s no doubt that remortgaging is driving the mortgage market at the moment. While the number of buy-to-let valuations is down almost nineteen per cent compared to November last year, remortgaging activity is up twenty five per cent. Homeowners want to lock into deals before rates rise.”
The number of valuations carried out for the buy-to-let sector fell 6.1% month-on-month and 18.5% on a 12-month basis following the Chancellor’s announcement that he would ban lettings fees.
Bagshaw said: “2016 has been something of an annus horribilis for landlords. They have had to contend with the reverberations of the 3% stamp duty surcharge and the removal of 10% ‘wear and tear’ allowance. Fortunately, June through to October were all relatively good months for buy-to-let remortgages with activity rising on a seasonally adjusted basis. The sector was beginning to find its footing again. However Phillip Hammond’s latest proposals regarding lettings fees appear to have unsettled the market again.”
There was a slight lull in activity in the home mover segment with demand from those already on the property ladder and looking to move home falling 0.8% month on month. It was a different story in the first-time buyer segment. The number of valuations carried out in November increased 1.8% month-on-month and 13.1% over the past twelve months.
Bagshaw added: “On an annual basis first-time buyers, home movers and those looking to remortgage are pretty active. The annual increase in activity in these sectors has demonstrated the current strength in the market and there has been no drastic change in activity on a monthly basis, as the market remains stable and will be adjusting to changes in the coming months.”