Although there was the usual seasonal dip in the valuations market during August 2012 activity continued to increase on an annual basis according to the latest Housing Market Activity Report by Connells Survey & Valuation.

The total number of residential valuations conducted by Connells during the month fell by 10% compared to July, but despite this decline, activity remained higher than a year ago, with 1% more valuations than in August 2011.

John Bagshaw, Corporate Services Director of Connells, said: “The housing market is traditionally slower in August, and this year proved no exception as the summer holiday season took its toll on the number of buyers looking to move. This seasonal drop-off was exaggerated by the Olympic focus, on top of the ongoing squeeze on lending, although this was not as great as many had expected.

“However, it is encouraging that despite the monthly dip, valuation activity remained higher than a year ago, and is already showing signs of bouncing back in September despite difficult borrowing conditions.”

The buy-to-let sector appears to be having a significant affect on the annual climb in valuations, with an increase of 31% on an annual basis.

Bagshaw said: “Buy-to-let is playing an increasingly significant role in the housing market, as investors are drawn in by the prospect of rising rental income, subdued purchase prices and increasing demand from tenants. Lenders have been cutting rates to tap into this demand, and the combination of rock-bottom mortgage payments and soaring rents has made property investment increasingly attractive.”