The total number of buy to let residential property valuations conducted in July indicates that the investment market is showing signs of a strong recovery, according to the latest research conducted by Connells Survey and Valuation.

The surveyors say that despite the capital gains tax hike outlined in the budget at the end of June, the number of valuations for buy-to-let investors looking to purchase rental properties increased by over a quarter (+26%) year on year. This is an even stronger performance than the June figures, which registered an annual increase of 12%.

Ross Bowen, managing director of Connells Survey and Valuation, said: “The higher Capital Gains Tax hasn’t made its mark on property investment. In fact, the recovery in buy-to-let has continued apace. In July, we conducted three times the number of valuations for buy-to-let investors than in 2008. With the shortage of affordable housing, and demand from frustrated first-time buyers pushing up rents, many prospective landlords are taking advantage of attractive yields before house prices rise further.”