Is the mortgage market growing again?
According to Connells' Survey and Valuation, May saw the mortgage market return to growth.
The slowdown recorded after the end of the stamp duty holiday had been expected according to Connells' Housing Market Activity Report. Figures released show the number of residential property valuations increased by 4% in May, which on an annual basis is actually an 18% increase.
Surprisingly according to the report, the number of first-time property buyers climbed in May after April's fall in this sector of the mortgage market. An improvement in first-time activity then added to the number of home-owners on the move.
A spokesperson for Connells commented advising that fears of a prolonged drop in market actitivity post stamp duty concession have so far been proved unfounded.
Adding that encouraging signs have been seen of demand despite a troubled economic climate. Improvement in the first time buyer sector filtered through the property chain which allowed more home-owners to move house.
It is presently thought that the buy to let investment sector offers the main chance of growth in the mortgage market.
With buy to let mortgage rates remaining low and rental income high, many experienced investors and inexperienced home-owners looking for an investment opportunity, are taking advantage of lenders cheap deals.
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