Residential housing valuations increased by +61% in February 2010 compared to January, as the housing market picked up after being subdued the previous month, according to Connells.

Activity has now grown year-on-year for six months in a row, with the number of valuations up +22% in February 2010 on the year before. The increased activity has been attributed to first-time buyers as there was an increase of 63% requesting a valuation compared to January 2010, with the numbers above those seen in February 2009. Valuations conducted for current home owners looking to move also increase by +43% on January.

Ross Bowen, managing director of Connells, said: “Traditionally, the valuations market begins to see a boost in activity in January following the Christmas lull. January witnessed a hangover from re-instating the lower stamp duty threshold while the arctic weather conditions disrupted some buying activity. However, February saw house-hunters back on to the streets in force, with activity bouncing back as a result.

“In January, we saw first-time buyer activity drop off slightly compared to December. Many first-timers had rushed to make their transactions before stamp duty holiday ended. In February, demand bounced back. Homeowners have seen their properties reclaim much of the value lost during the downturn. Many who previously delayed see now as the right time to move properties.”

Remortgaging and buy-to-let activity also increased as valuations for buy-to-let investors went up +81% and remortgaging levels doubled in comparison with January 2010, although this was from a low base. With mortgage finance conditions still proving problematic, remortgaging valuations were less than -30% their level in February 2008, whilst buy-to-let was -30% lower.