However, the total number of valuations conducted by Connells Survey and Valuation in November represented an annual rise of 73%.
The pick-up in first-time buyer activity was a key factor in the increased level of mortgage activity in November. In November, the number of valuations conducted for first-timers increased 7% compared to October. This represented 29% of all Connells’ valuations, the highest proportion since August. This bounceback follows a monthly decline to 27% of all valuations in October.
John Bagshaw, Corporate Services Director of Connells Survey and Valuation, comments: “In November, first-time buyers exploited a short window of opportunity as rates for higher LTV mortgages improved briefly. With house prices steadily declining, affordability has improved for new buyers, many of those able to secure mortgages have been acting quickly to complete before Christmas.
“Following the Chancellor’s decision not to extend to stamp duty holiday for first-time buyers, activity will be elevated in the short-term as buyers look to move before March. But in the long-term, the recovery of transactions will be led by lenders’ ability to unlock the lower tier of the market. The new mortgage indemnity scheme is a step in the right direction but the threat of the Eurozone crisis – combined with the abolition of the stamp duty holiday – may undermine its impact in the coming year.”
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