There was a 4% increase in mortgage valuations during May 2013 compared to the previous month, with the total number of residential valuations also increasing by 32% from a year ago according to Connells.

First time buyer activity also rose in May by 35% more than last year with valuations for new buyers hitting 91% of the level seen in May 2007. As a proportion, first time buyers in May made up 33% of the valuations market, the first time this has happened since January.

John Bagshaw, Corporate Services Director of Connells, said: “Activity in the housing market is accelerating. For eight months, we’ve seen consistent annual growth. In twelve months, not only has the housing market rebounded, but activity is approaching levels last seen in 2007. The potential for further shocks remain, but every month that such positivity continues is another pillar in the solidity of this recovery.”

“As Help to Buy starts to gain traction, first time buyers are finding the challenge of raising a deposit less of a barrier. Rates for first time buyers are also getting better, and that’s having an important effect on sentiment. “

Remortgaging activity has grown by 46% on an annual basis with remortgaging representing 19% of all valuations. This is despite a 6% monthly fall as part of the wider seasonal drop in May. Buy-to-let valuations also fell by 6% on a monthly basis, although compared to last year this activity has grown by 15%.

Bagshaw continues: “Lower rates aren’t just helping people who want to buy a new property or their first home. Established owner-occupiers who don’t necessarily want to up-size or down-size are making use of the latest deals, and saving significant sums every month. Buy-to-let investors are on a similar track, with many remortgaging existing properties to expand their portfolios, and many more making the most of some great deals to take out fresh mortgages.”