Increasing activity from buy-to-let investors led a surge in housing market activity in September, according to the latest research by Connells Survey and Valuation.

The total number of residential property valuations conducted in September was up by a quarter (25%) compared to August, driven by largely driven by an increase in buy-to-let activity, which rose by 59% compared to August.

Ross Bowen, the managing director of Connells Survey and Valuation, said: “Market activity levels will suffer by comparison to the distorted market in late 2009, when buyers rushed to buy properties before the end of the stamp duty. But that doesn’t mean valuation activity is on the wane. We have continued to see slow and steady growth in buyer activity in the last three months. In the third quarter of 2010, activity was actually up 4% compared to 2009.”

The increase in buy-to-let valuations represented a rise of 79% on September 2009 – albeit from a low base. This September they have accounted for 11% of all valuations – the highest proportion since Connells began compiling its data two years ago.

“The buy-to-let market is seeing a mini resurgence. Rising rents and tenant demand have tempted many property investors onto the market – despite the recent changes to Capital Gains Tax. And buy-to-let mortgage finance is showing signs of loosening, allowing more would-be landlords to capitalise on strong yields. Buy-to-let lending was up 12% last quarter on the previous quarter, and 15% on the same times last year. It is great to see lenders like Paragon re-entering the market, and with competition on the rise we should see even more affordable products made available to investors,” concluded Bowen.