FTB and remortgage valuations see post-Brexit surge

Overall, July has seen the number of all property valuations fall 2% compared to the same month last year.

Homemovers appear to have been slightly more cautious in July, with valuations falling by 8% on an annual basis.

Similarly, buy-to-let activity has been relatively cooler in July than at the same point a year ago. The total number of valuations for buy-to-let purchases has now fallen by 41% since July 2015.

John Bagshaw, corporate services director of Connells Survey & Valuation, commented: “Change has mainly been confined to the mixture of activity, rather than the overall volume of valuations. Any clouds of uncertainty are showing their silver lining for first-time buyers, if anything dealt an advantage as some other buyers paused for thought in the weeks immediately after the result. If longer-term economic issues are on the horizon, first time buyers aren’t feeling the effects yet.

“Despite some widespread fears about Brexit, any negative impact on wages, employment or inflation has not materialised – and first-time buyers ready for the move are making the leap into homeownership.

“Buy-to-let activity is steady post-Brexit vote, even if at a level lower than last year. In fact this correction is not new, and mainly not as a result of referendum uncertainty. Since April, held back by the Government’s 3% Stamp Duty surcharge, some landlords are pausing for thought. Looking ahead, tax changes are increasingly factored in to landlords’ investment plans which forms a strong core of buy-to-let activity focused on the long-term and a solid basis of future growth in demand for valuations from landlords.”