Despite a rise last month of 16%, there was an annual increase of just 2% in the number of residential valuations conducted, giving the slowest rate of growth since July 2010.
Last month's figures for the first-time buyer market were encouraging, with an increase of 19%, although this is widely believed to be a result of buyers taking advantage of the last few weeks of the stamp duty holiday. The figure was 1% lower compared to last year.
The number of valuations for remortgages fell by 6% compared to last year. The month by month remortgage figure was slightly more encouraging, up by 13%, suggesting that as interest rates remain at their historic low of 0.50%, many borrowers are choosing to remortgage on low tracker rates.
The number of valuations for people moving home provided some light relief, however, with an increase of nearly a quarter (23%) compared to May this year. This in turn meant an annual increase of 4%.
Many people with equity built up in their homes are taking advantage of what is regarded to be a 'buyer's market' and this is reflected in these results.
Positive signs also appeared in the buy-to-let sector, with the number of buy-to-let investors growing by 16% compared to June 2011. Buy-to-let remortgages were also up by 32%, suggesting more investors are looking to remortgage compared to one month ago.
John Bagshaw, corporate services director of Connells Survey & Valuation, who conducted the research, said: " The eurozone crisis has dampened banks' ability to lend, while the double-dip recession is taking its toll on buyer finances. Much rests on the success of the Bank of England's new funding for lending scheme. If it proves successful, lenders will be able to bypass increasingly expensive wholesale markets, boosting the supply of finance and giving the valuations and wider mortgage market a shot in the arm."
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