Remortgaging boosts UK housing market

Remortgaging boosts UK housing market

Remortgaging activity is boosting the UK housing market, according to new research.

After a sharp correction in March and April that saw May make a slow recovery of three per cent, property valuations in June saw a sharp increase of 30 per cent, with remortgaging forming the backbone of the recovery, picking up by 61 per cent between May and June.  

This rapid growth can partly be attributed to making up ground lost in previous months — coming after a cumulative drop of 40 per cent in March and April, and a very gradual four per cent rise in remortgaging activity in May.

Remortgaging is 10 percent higher than in June last year despite the annual figures of total activity from Connells Survey & Valuation showing a zero per cent increase from June 2013.

Proportionally, remortgaging made up 28 per cent of all valuations in June 2014, which is significantly above the average of 26 per cent of all activity attributed to remortgaging in the previous twelve months, as well as being an increase from the temporary low of 22 per cent in April.

First time buyer activity has returned to the same level in June last year after a 17 per cent increase in new buyer valuations between May and June.

Valuations for home-movers followed a similar trend to first time buyer activity, seeing a 21 per cent increase from May to June, though this leaves home mover activity 11 per cent lower than June last year.

John Bagshaw, Corporate Services Director of Connells Survey & Valuation, said: ‘A rapidly improving economy with the prospect of real wage growth this year means that progress should continue. But we are now in a different phase of recovery, making new headway rather than just playing a rapid game of catch-up.’

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