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.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
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.”
-
British Airways revamps Avios scheme bringing down flight prices to £1With the new Avios part-payments scheme you can now bag a British Airways flight for as little as £1
-
RBS to close a fifth of branchesRoyal Bank of Scotland plans to shut 18 branches across Scotland, resulting in the loss of 105 jobs. We have the full list of closures.
-
Halifax: House price slump continues as prices slide for the sixth consecutive monthUK house prices fell again in September as buyers returned, but the slowdown was not as fast as anticipated, latest Halifax data shows. Where are house prices falling the most?
-
Rents hit a record high - but is the opportunity for buy-to-let investors still strong?UK rent prices have hit a record high with the average hitting over £1,200 a month says Rightmove. Are there still opportunities in buy-to-let?
-
Pension savers turn to gold investmentsInvestors are racing to buy gold to protect their pensions from a stock market correction and high inflation, experts say
-
Where to find the best returns from student accommodationStudent accommodation can be a lucrative investment if you know where to look.
-
Best investing appsWe round up the best investing apps. Looking for an easy-to-use app to help you start investing, keep track of your portfolio or make trades on the go?
-
The world’s best bargain stocksSearching for bargain stocks with Alec Cutler of the Orbis Global Balanced Fund, who tells Andrew Van Sickle which sectors are being overlooked.
-
Revealed: the cheapest cities to own a home in BritainNew research reveals the cheapest cities to own a home, taking account of mortgage payments, utility bills and council tax
-
UK recession: How to protect your portfolioAs the UK recession is confirmed, we look at ways to protect your wealth.
