The buy-to-let sector surged ahead of other areas of the housing market in January 2015 with growth of 37% over the previously month according to Connells Survey and Valuation.

The first time buyer sector of the housing market was the only other sector which saw a monthly increase in valuations activity at 3%, but fell 28% compared to January 2014. The BTL sector only fell by 4% in comparison over the same period.

John Bagshaw, Corporate Services Director of Connells, said: “The buy-to-let sector has bounced back after a disappointing performance in December when it had seen one of the biggest monthly falls in valuations. It now looks to have regained that lost ground as landlords – now spoilt for choice with a record number of mortgage products to choose from – begin to invest more. Low mortgage rates have also continued, posing even more attractive deals for potential landlords or those expanding portfolios.”

Activity for those already on the property ladder has been subdued, with a fall of 4% on a monthly basis, but when compared with January last year, valuations activity fell by a 23%.

Remortgaging saw one of the biggest falls in activity both on a monthly and annual basis. Since December, recent activity fell by 25%, while compared with January 2014 it decreased by 28%.

Bagshaw said: “The current economic outlook indicates that low inflation and therefore the low Bank rate will continue for some time. As a result it appears that this is giving rise to optimism as more borrowers anticipate that lenders will be able to lower their mortgage rates even further. They are now waiting before securing a deal.

“However, it is worth noting that current mortgage rates might not get any cheaper as the deflation in the eurozone may affect swap rates soon. As many households look for ways to cut monthly costs, taking advantage of these rates now is a good idea.”