Marc Schneiderman of Arlington Residential, an estate agent, said this was a risky strategy. He said many buyers were currently asking for price reductions after a sale had been agreed and sellers would be in a vulnerable position until long after lockdown has ended.
“Vendors who desperately need to sell are acutely aware that the chances of finding an alternative buyer in the coming two to three weeks are somewhere between extremely slim and non-existent,” he said.
Mr Schneiderman said one seller in London was forced to accept a 10pc price cut, when the buyer said they would no longer pay the £1.25m price that had originally been agreed.
Others looking for a quick sale may also have to offer large discounts. Mr Schneiderman added: “This is not being considered as opportunistic – simply the reality of a market in turmoil.”
The property market is a key driver for the economy. As well as stamp duty raising billions of pounds a year for the Exchequer, property transactions stimulate activity in the building and home improvement trades. The Government has allowed construction to continue during lockdown and major housebuilders that had to pause work have already started re-opening sites.
While there may be a wave of buyers looking to transact, will sellers be quite as keen to list their home in a falling market? Mr Empson said lack of suitable stock could once again be a problem for the market. “Sellers who don’t have to sell right away will probably adopt a ‘wait and see’ approach,” he warned.
Ms Aykroyd said she expected this would be the case for the rest of the year. This means that buyers who need to sell to pay for their next home might prefer to wait until 2021 before listing their current property.
Sellers who cannot wait that long they may consider spending money on their property to help shore up its value. However, Nick Leeming of Jackson-Stops, an estate agent, warned against undertaking any major improvement works.
“Focus on touching up any scuffed walls or wild gardens instead,” he said. “Small touches can really boost the speed in which a property sells.”
Any market turbulence is likely to attract speculators who believe they can pick up a bargain and sell on for a profit. Mr Empson said that high stamp duty and transaction charges would make this strategy difficult, at least in the short term.
“The buyer needs to pay stamp duty and land tax, plus other fees, and so they would have to buy something at around a 15pc discount just to break even, let alone at a profit,” he said. “Even if you were to achieve a 10pc profit further down the line, the buyer would have had to have bought at a 25pc discount originally – which is pretty unlikely.”