The property market has got the green light to reopen as the Government announced new regulations that will lift the seven week freeze on property viewings and home moves today.
People will now be allowed to travel to visit estate agents and view properties. The announcement follows guidance on Monday, which signalled that surveyors could return to work.
Since the sector was effectively suspended at the end of March, 373,000 transactions have been thrown up in the air and newly agreed sales have dropped by 90pc, according to the property portal Zoopla.
The process of buying and selling a house is now going to be radically different. The industry is in the process of finalising guidelines for how viewings and sales can go ahead in line with social distancing requirements. Here’s what it means for the market.
How soon will we be able to go to house viewings?
Before Prime Minister Boris Johnson’s announcement beginning lockdown easing on Sunday evening, the property industry was already gearing up to restart at the end of May, pending a Government sign-off on proposed guidelines.
Now, it has been given the go-head to reopen this week, although no specific guidelines have been issued, other than they must be in line with social distancing requirements.
Both NAEA Propertymark, the estate agent trade body, and the Royal Institution of Chartered Surveyors (Rics) have been working with the Government on specific guidelines.
Ana Bajri of Rics said: “Over the coming days, we will publish practical guidance to support Rics professionals who play a critical role in the housing sector, specifically on physical inspections for mortgage valuations and home surveys.”
How different will the process of buying a house be?
No official guidelines for house viewings have been issued, but plans mooted include limiting house viewings to 15 minutes and only two adults.
Sellers will be expected to open all doors and turn on light switches, and then wait in the garden or go out for their daily exercise while the buyer views the property without touching anything. Homes must be cleaned before and after every viewing.
Buyers, agents and sellers will wear PPE. Everyone will most likely be expected to provide this for themselves, said Mark Hayward of NAEA Propertymark. There will be additional guidance to provide assistance for elderly and vulnerable clients.
The number of viewings will probably be limited per day and there will almost certainly be a ban on open house or back-to-back viewings. Buyers and sellers will need to sign a declaration that they do not have coronavirus symptoms and viewings will be cancelled if anyone develops signs of the virus.
Virtual viewings will become far more commonplace. Though they won’t replace physical viewings, it will likely become normal to conduct initial viewings over video, before visiting a property in person.
Wherever possible, mortgage lenders will make their valuations remotely, using existing local transaction data. The exceptions will be if the buyer is purchasing with a small deposit (namely 5 or 10pc) or the property has a particularly high value, in which case a physical valuation in line with social distancing guidelines will still be necessary.
There are plans for new systems to sign legal documents electronically.