What can you do while the housing market is on ice?

Ruth Jackson-Kirby answers a few pressing questions about the current situation in the housing market.

Spring may have sprung, but “the traditional ‘spring selling season’ in the housing market has been all but forgotten”, reports James Pickford in the Financial Times.

The Covid-19 lockdown means estate agents, prospective buyers and surveyors are all barred from visiting properties “bringing the homebuying process very largely to a halt across the UK”.

So, what can you still do? Here we answer a few pressing questions about the current situation in the housing market.

Are all transactions banned?

The government has said that anyone wanting to move house should “delay the transaction where possible while the ‘stay-at-home’ measures are in place,” says Pickford. 

It is impossible to carry out physical viewings or surveys during the lockdown, but you can instruct agents, solicitors and apply for a mortgage so you are ready when restrictions are lifted. If you are buying or selling a vacant property and no move is involved, then the transaction can go ahead.

Can I cancel a purchase?

You can walk away before you have exchanged contracts (note that the rules in Scotland are different) but after that you have legally committed to a purchase. The government suggests that where contracts have been exchanged, completion should be postponed until lockdown ends. If you have a mortgage offer that will expire before you can complete, then speak to your lender. Many are offering a three-month extension to stop housing deals collapsing.

How will the freeze affect house prices?

“More than £30,000 will be wiped off the average value of a UK home by the coronavirus crisis,” says Tom Rees in The Daily Telegraph. That’s from the Centre for Economics and Business Research (CEBR), which expects prices to fall by 13% by the end of 2020. That “would push the average house price to around £200,000”.

What could be done to help the property market?

The Royal Institution of Chartered Surveyors (Rics) thinks that government intervention will be needed to revive the housing market once the coronavirus crisis has passed. “Rics is not an organisation that would call for a stamp duty holiday on a whim,” Hew Edgar, head of government relations at Rics, told The Guardian. “As we start to emerge from this crisis, however, it is likely that the finances of potential home- buyers will be under strain… A stamp duty holiday could be one of the ways to reactivate the housing market quickly as a short-term measure.”

Recommended

3 renewable energy stocks to buy
Investments

3 renewable energy stocks to buy

These stocks look poised to benefit as the world transitions to a net zero economy.
31 May 2023
When can you retire?
Pensions

When can you retire?

An opaque outlook for the official state-pension age makes planning harder.
31 May 2023
Is it time to give up on buy-to-let?
Property

Is it time to give up on buy-to-let?

The number of buy-to-let mortgage products has plummeted in recent weeks, placing further strain on a market in which landlords already seem to be giv…
31 May 2023
30% jump in shareholder voting - how can you vote in upcoming investment trust AGMs?
Investments

30% jump in shareholder voting - how can you vote in upcoming investment trust AGMs?

The number of investors voting at AGMs has shot up since 2021 by 30% - but many still do not vote. With key votes coming up, here is how you can have …
31 May 2023

Most Popular

Best savings accounts – May 2023
Savings

Best savings accounts – May 2023

Interest rates have been creeping up - we look at the best savings accounts on the market right now.
31 May 2023
Nationwide to give £100 cash boost to customers
Personal finance

Nationwide to give £100 cash boost to customers

Nationwide Building Society is giving customers £100 as it reinvests profits. Dubbed the Nationwide Fairer Share scheme, we look at who is eligible.
22 May 2023
One day left for households to claim the £200 Alternative Fuels Payment to help with heating bills
Energy

One day left for households to claim the £200 Alternative Fuels Payment to help with heating bills

Households could be due a £200 payment if they heat their homes using alternative fuel sources and aren’t connected to the mains gas grid - but time i…
30 May 2023