New research shows sharp increase in remortgaing activity

Permitted development rights are set to be extended in the autumn. Picture: Getty Images/iStockphoto

Permitted development rights are set to be extended in the autumn. Picture: Getty Images/iStockphoto - Credit: Getty Images/iStockphoto

An increase in remortgaging is driving the mortgage market, according to new research.

A surge in the number of those looking to remortgage last month saw valuations rise by 4.9 per cent since October, up 24.6 per cent annually.

Connells’ Survey & Valuation study also revealed that overall valuation activity was almost static – down 0.1 per cent on October. However, there was a 6.6 per cent soar in valuations undertaken compared to November last year.

John Bagshaw, corporate services director of Connells Survey & Valuation, said: “There’s no doubt that remortgaging is driving the market at the moment.

“While the number of buy-to-let valuations is down almost 19 per cent compared to November last year, remortgaging activity is up 25 per cent. Homeowners want to lock into deals before rates rise.”

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Valuations carried out for the buy-to-let sector fell 6.1 per cent month-on-month and 18.5 per cent on a 12-month basis, following the Chancellor’s announcement he would ban letting fees.

John added: “2016 has been something of an annus horribilis for landlords. They have had to contend with the reverberations of the 3 per cent stamp duty surcharge and the removal of the 10 per cent ‘wear and tear’ allowance.

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“Fortunately, June through to October were all relatively good months for buy-to-let mortgages with activity rising on a seasonally adjusted basis.

“The sector was beginning to find its footing again. However Philip Hammond’s latest proposals regarding letting fees appear to have unsettled the market again.”

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