First-time buyer activity hit its highest level since March 2009, according to the latest Housing Market Activity Report from Connells.

The company say that the total number of residential valuations conducted during February was nearly a third (31%) more than a year ago. However, this represented a month-on-month increase of 43%, as the usual seasonal rise was bolstered by a flurry of first-time buyers looking to beat the deadline for the stamp duty tax exemption.

Increasing demand from first-time buyers was a key factor in the annual growth in activity. The number of valuations for first-time buyers rose by 52% compared to February 2011, reaching the highest number since March 2009. This represented a 56% increase in the number of valuations for first-time buyers compared to January. As a result, first-time buyer demand accounted for 35% of all valuations completed – the highest proportion since September 2010.

Commenting John Bagshaw, Corporate Services Director of Connells Survey and Valuation, said: “There’s no doubt that the imminent deadline for the stamp duty holiday exemption has been a catalyst for first-time buyer activity. Many first-time buyers are now feeling a real sense of urgency, and this has boosted overall mortgage market activity in the last month.”

The buy-to-let market also continued to expand in February, with 38% more valuations being conducted for property investors than in January. However, it wasn’t just a seasonal increase as on an annual basis, Connells conducted 50% more valuations for buy-to-let investors than one year ago.

Bagshaw added: “Property investors have begun the year by signaling their intent to grow their portfolios. The private rented sector is currently growing by 262,000 households per year and landlords are looking to take advantage of this swelling demand. An increasingly diverse set of mortgage finance options are being made available, and if lenders can maintain this progress, buy-to-let will help underpin growth in the mortgage market as the year progresses.”