After more than six weeks of being on ice, the housing market is gearing up to reopen. But the process of buying and selling a house is going to be radically different.
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 Government’s documented plans to begin easing lockdown, released on Monday, will make little material difference to the property sector.
Mark Hayward of NAEA Propertymark, the UK estate agent trade body, said that resuming the process of house sales will be more complex than restarting the retail sector, which the Government said could begin a phased reopening at the beginning of June.
“Retailers don’t go into a consumer’s home, and they don’t have two consumers interacting with each other,” said Mr Hayward.
But the sector is making its own plans for how it can work under lockdown. It is set to get a new, socially distant look. Here’s what it means for the market.
How soon will we be able to go to house viewings?
The housing market could be starting up again by the end of May, said Mr Hayward.
The estate agent industry has drawn up a blueprint for how the housing market can reopen in line with social distancing requirements. The plans are in draft form and are waiting for approval from the Government who will reference with Public Health England, said Mr Hayward.
Once these proposals are signed off, they can be issued under the current lockdown conditions, said Mr Hayward. They should not be dependent on further Government announcements.
But this does not mean that estate agent branches will necessarily reopen at first. The process will be staggered, and we certainly won’t be returning to normal any time soon.
How different will the process of buying a house be?
So far the plans 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 Mr Hayward. 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.