March saw a strong lift in housing market activity, with 7% more residential mortgage valuations conducted compared to a year ago, according to the latest research by Connells Survey and Valuation.

Four successive months in which residential mortgage valuation activity has risen year on year, indicate a sustained recovery in the housing and mortgage market. In the first quarter of 2011, valuation activity was 16% higher than in the same period a year ago.

In March, the total number of valuations for residential property increased by 5% compared to February – even allowing for the 15% more working days in March. In the first quarter of the year nearly a quarter (24%) more valuations were conducted than in the previous quarter.

March also saw an encouraging increase in the number of first-time buyers entering the market. There were one fifth more valuations for first-timers (21%) than in February, and 26% more in the first quarter of 2011 than in the previous quarter. With 34% of all valuations conducted on behalf of first-time buyers, this is the highest proportion of all Connells’ valuations since September 2010.

Colin Dorman, business development director of Connells Survey and Valuation, comments: “The real barometer of the health of the housing market is activity and this is showing signs of picking up - with a welcome boost in first-time buyer demand. While we are still -4% below last year’s level in March, the recent increase in the number of higher LTV mortgage products helped breathe some life into the first-time buyer market, and first-time buyer numbers have risen steadily for four consecutive months. The government’s new FirstBuy scheme should provide added relief for a limited number, but the real lifeblood of first-time buyer market is mortgage finance, and we still need lenders to do more to fan the flames of recovery.”