Big summer slowdown in valuations says Connells

The number of valuations has dropped over the summer according to figures from Connells. 

Although valuation volumes for July are significantly up on those for the same month of 2014 - when activity was muted due to the effects of the Mortgage Market Review according to some analysts - the total number of valuations last month dropped 24 per cent from the previous month. 

“July has been a little more subdued than normal as the post-election feel-good factor begins to taper out” admits the firm’s corporate services director, John Bagshaw.

The number of valuations for existing owner-occupiers seeking to move home in July was down 33 per cent compared to the previous month. However, yearly activity has climbed 48 per cent on July 2014.

Similarly, despite the number of first time buyer valuations slipping 25 per cent from June, year-on-year activity accelerated 40 per cent compared to July 2014.

Bagshaw said the slowdown was because “home movers and first time buyers are most affected by housing market seasonality. These two groups possess neither the capital of most buy-to-let investors or the pre-existing property of remortgagors. First time buyers in particular tend to be more sensitive to headwinds.”

However, buy to let valuations also plummeted in July - down 21 per cent on the previous month - while remortgaging activity declined by 16 per cent over the same period.