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End of stamp duty break won't dampen activity

Thursday, February 04, 2010

Source: Catherine Deshayes

The housing market started 2010 on a positive note, with the number of valuations on residential property conducted last month 9% higher than in January 2009, despite the removal of the stamp duty holiday...

This is the fifth consecutive month that monthly valuations activity has exceeded that of the same month the year before, according to the latest research by Connells Survey and Valuation.

Ross Bowen, the managing director of Connells Survey and Valuation comments, "December and January are traditionally quiet months for the housing market, but valuation activity in December was buoyed by transactions completed by before the withdrawal of the higher stamp-duty threshold. This more positive trend was continued in January, with valuations up a tenth on a year ago. The positive start with transaction levels in January points to a continuing improvement in the housing market."

The growth in the number of valuations compared to Jan 2009 was led by current homeowners, who obtained 40% more valuations last month than in January 2009, while there was also a substantial increase in buy-to-let business (+30%). On the other hand, remortgage activity continues to languish, 28% lower than a year ago, while first time buyer valuations were almost unchanged.

Ross Bowen comments: "During the downturn, many homeowners who wanted to move delayed their purchase decisions. As confidence continues to come back to the housing market, we're seeing this pent-up demand translated into much higher levels of activity among existing homeowners and buy-to-let investors. It is still subdued for first time buyers, however."