Posts with tag: property valuations

Huge Increase in Property Valuations in June

Published On: July 9, 2015 at 2:52 pm

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Categories: Property News

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A strengthening property market resulted in a huge increase in home valuations in June, with activity rising 23% annually, recent data reveals.

Huge Increase in Property Valuations in June

Huge Increase in Property Valuations in June

The research from Connells Survey & Valuation found that June’s total of property valuations was also up 42% on a monthly basis. Valuations for established owner-occupiers moving house were particularly high, up 34% in June compared with June 2014 and 51% compared to May 2015.

Home movers in June surpassed those looking for a property in the buy-to-let sector, with demand growing in the residential market.

According to the data, valuations for first time buyers in June were up 16% annually and 42% compared to May’s figures.

The amount of valuations in the buy-to-let market increased by 24% compared with 12 months previously and 22% on May 2015.

The number of valuations for those remortgaging rose by 17% in June compared to June 2014 and 44% on the previous month.

Connells Survey & Valuation’s Corporate Services Director, John Bagshaw, explains: “First time buyers haven’t benefitted from higher house prices in the same way as those already on the property ladder.

“An era-defining shortage of suitable first time homes, combined with still rapid rises in average prices, are keeping many would-be homeowners renting for the time being. Yet despite this, numbers of valuations for new buyers have shown double digit growth.”

However, he says that annual growth in the remortgaging market is still behind most other sectors: “This could also be a sign that the numbers remortgaging to access a better mortgage rate may have reached a plateau.”1

1 http://www.propertywire.com/news/europe/uk-residenital-property-valuations-2015070810722.html

 

 

 

Valuations in residential sector up in June

Published On: July 8, 2015 at 11:44 am

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Categories: Landlord News

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A substantial growth in the UK property market has seen a surge in residential property valuations, according to a new report.

Increases

Data from an investigation by Connells Survey and Valuation shows that property valuations in June were up by 42% month and month and 23% year on year.

Valuations for current owners occupiers looking to move home were particularly strong, up by 34% June in comparison to the same month last year and 51% in comparison to May.[1]

The report suggests that home movers especially are showing different trends to those seen in April and the beginning of May. Demand is growing faster than in the market as a whole, even more quickly than the surging buy-to-let sector.

Additionally, the data indicates that valuations for first-time buyers during June were up by 16% annually and by a large 42% on last month. For the buy to let sector as a whole, valuations increased by 24% year on year and by 22% in comparison to May. For those looking to remortgage their home, valuations rose by 17% annually and by 44% month on month.[1]

Valuations in residential sector up in June

Valuations in residential sector up in June

Double-digit growth

John Bagshaw, corporate services director at Connells Survey and Valuation, commented that, ‘first-time buyers haven’t benefitted from higher house prices in the same way as those already on the property ladder. An era defining shortage of suitable first time homes, combined with still rapid rises in average prices are keeping many would be home owners renting for the time being.’ Despite this, Bagshaw observes, ‘numbers of valuations for new buyers have shown double digit growth.’[1]

However, he went on to say that remortgaging valuations fall behind many other sectors in terms of yearly growth. He feels that, ‘this could also be a sign that the numbers remortgaging to access a better mortgage rate may have reached a plateau.’[1]

[1] http://www.propertywire.com/news/europe/uk-residenital-property-valuations-2015070810722.html

 

Nationwide’s Price Index Changes to Reflect More Automated Valuations

Published On: July 7, 2015 at 9:26 am

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Categories: Finance News

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Nationwide is changing the methodology used to compile its house price index from next month, with more reliance being placed on data submitted by mortgage applicants.

Nationwide's Price Index Changes to Reflect More Automated Valuations

Nationwide’s Price Index Changes to Reflect More Automated Valuations

This is due to Nationwide no longer conducting physical valuations of some properties for which it is considering offering mortgage loans.

The small print of its latest house price index, released last week, details the change: “We will continue to follow the same type of statistical approach (known as ‘hedonic regression’) to calculate house prices.

“However, as a result of planned changes to our mortgage application process we may no longer commission physical mortgage valuation reports for all cases and so in future will source more information from customer application data.

“As we may not have complete or consistent information for a number of property attributes (floor area, type of garage and number of bathrooms), these variables will no longer be used in the index.”1

The new methodology will still respect the old house price indices produced by Nationwide, although the index says that there will be some joining factors – small changes in data – which will be conducted to allow historical comparisons.

In the future, Nationwide will still produce monthly UK house price data and a regional breakdown every quarter. The data will include a broad analysis of prices across all properties and prices relating to two types of mover: first time buyers and owner-occupiers.

Nationwide will also publish quarterly figures based on different property types, and on new and existing homes.

1 https://www.estateagenttoday.co.uk/breaking-news/2015/7/nationwide-changes-price-index-to-reflect-more-automated-valuations