Coronavirus: how you can still buy and sell your home
Caz Blake-Symes • April 18, 2020
Lawyers, developers and estate agents are working hard to keep the cogs turning as efficiently and safely as possible during the coronavirus lockdown
Adapted from a Zoopla article by Nicky Burridge April 2020
We may all be following social distancing rules under the coronavirus lockdown but that does not mean your property search or home sale is completely on hold. Zoopla figures show that property sales are continuing since the start of coronavirus restrictions, although at lower levels, and sellers have not taken their properties off the market.
The number of homes for sale - per estate agent - is only 1% lower than it was on 7 March. But the number of new property sales agreed in the UK has fallen by 70% since the start of the coronavirus restrictions.
Zoopla director Richard Donnell says: "There has been no mass withdrawal of homes from the market as agents and consumers adopt a wait-and-see approach., The closure of estate agency branches and general uncertainty has resulted in far fewer sales agreed in the last two with less new supply coming to the market."
The number of people wanting to find out more about properties or to view them started to decline in early March and dropped by more than 60% in the following month. But in the second week of lockdown there has been a rise in people browsing properties. When you're stuck in a home you've outgrown, trying to work remotely while entertaining energetic children, that's exactly the time you decide you really need to make plans to move.
Unprecedented times - but temporary
"The property market has not been forced to an immediate halt – we must remember Covid-19 is temporary and we will recover," says Amy Hazelton, senior paralegal at law firm Blake Morgan.
"We may even see the market recover with first-time buyers who realise they need their own space after being locked down with family or flatmates. People have extra time to sit and trawl through agents' sites. They may think about a move they have not had the time to consider before and some may even spend the time considering investment opportunities in the market."
Should I keep my home on the market?
It's really not such a bad time to be selling your home. With the majority of people stuck at home without much to do, many would-be house hunters are spending their time browsing for a new home online. So, if your home is already on the market there is no reason to withdraw it. It's also worth noting that the government has not banned property transactions from going through. Instead, it has said that if the property being bought is empty, the sale can continue as normal. It is only if the property is currently occupied that it is encouraging people involved in the transaction to agree an alternative date on which to move.
Can estate agents take on new listings?
Their physical offices may be shut but estate agents are still open for business, albeit working remotely from home. That said, it is difficult for them to take on new properties at the moment, as the current social distancing rules mean they cannot visit your home to take photographs and measurements for the listing details. But don’t let that put you off if you're thinking of selling your home. Estate agents will still be able to talk to you by telephone to advise you on how much they may list your property for, subject to a physical viewing once restrictions are lifted, and to give you an idea of the market in your area. They are also likely to be having similar conversations with potential buyers, so they may be able to line up some interested parties to view your home once the lockdown is over.
Can people still view my home?
Assuming your home is already listed with an estate agency, they can continue to market it, but potential buyers won’t be able to view it in person until the current social distancing measures are lifted. That said, people can still get an excellent sense of what your home is like through doing a virtual tour. Some estate agents created these tours using 3D cameras to offer a high-definition, 360 degree walk-through of their clients’ properties before the lockdown came into force.
Andy Marshall, our chief commercial officer at Zoopla, says: "We have seen an upsurge of 215 per cent in virtual viewings of new-builds. While this is partly in response to coronavirus, we anticipate that online and virtual tours are quickly becoming the new normal. Online viewings afford convenience and flexibility."
What if someone makes an offer?
If you receive an offer, there is nothing to stop you negotiating and accepting it. But you do need to be mindful that the selling process is likely to take longer than usual. The government has advised people to delay exchanging contracts while the current lockdown measures are in place.
Your buyer may also face delays in having a survey done on the property, as surveyors have been told not to carry out non-urgent work.
The lawyer's view on the timeline of buying and selling during lockdown
Amy Hazelton is senior paralegal in the new homes team at law firm Blake Morgan explains "Depending on the stage in your transaction, going ahead with a purchase may now mean you have to travel along a slightly different route than initially planned. In cases where contracts have not yet been exchanged, buyer and seller should try and agree delay clauses to allow for Covid-19 provisions to protect them both. You may encounter other blockers along the way towards exchange as a result of local authority closures, search provider delays and getting physical signature and witnessing of documents, due to social distancing and travel restriction guidelines. Some of these problems (especially with searches) can be overcome by specialist insurance. Others (such as signature) may need alternative arrangements to be agreed between the buyer and seller. If a buyer is between exchange and completion, all parties are still legally bound to proceed to avoid being in breach of contract and having financial penalties imposed. Where possible, completions should be delayed in accordance with the UK government guidelines to 'stay indoors' but, for some, completion may be unavoidable. Matters are likely to become more complicated where there is a chain and there are more parties to juggle.
"Lawyers throughout the country are working together in drafting solutions to help the market keep moving and this includes the certainty of exchanges taking place whilst keeping the flexibility to ensure no one is forced to complete against their will. Buyers and sellers should stay in regular contact with all parties involved."
What if I want to buy a new home?
If you want to buy a new home, there are still plenty of things you can do to kick-start your search while in lockdown. You can use the time to browse homes online that estate agents already have on their books, to give you a sense of what is out there, while many properties also have virtual tours you can take. You can also do research on the areas you're interested in. For example, our site offers a number of tools enabling you to check out the local area, even journey times if you'll be commuting.
Estate agents are still working, so even though you can’t visit them in their offices, it is still worth ringing them for a chat about the type of property you're looking for, as they may have someone waiting to list as soon as the restrictions are listed.
If you do find a property that seems perfect, you can put in an offer for it, although as explained above, the conveyancing process is likely to be slower than usual.
Top 3 takeaways
1. If your home is currently for sale, there is no reason to withdraw it and your estate agent can continue to market it
2. Estate agents cannot take on new listings, but if you are interested in selling your home, they can advise you on getting your property ready to market
3. Potential buyers cannot physically view your home while social distancing measures are in place, but many estate agents are offering virtual tours instead
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This Edition Includes..
Helping Your Family Onto The Property Ladder
What will happen to Interest Rates This Year?
Easing Stress Testing?
Looking to Remortgage?
Getting a Mortgage with Adverse Credit
Plus lots more…
Mortgage rates are likely to stay in the 4-5% range this year while changes to affordability testing by lenders could give buyers a boost.
Sky high house prices, high cost of living, student loans and rising rent costs mean that getting on the property ladder is challenging. But the desire to own a home remains strong for many young adults.
Now, the affectionately known ‘bank of mum and dad’ (or bank of other family members) may wish to lend or give money for deposits and other house purchase costs. Our expert Mortgage Advisers will be able to discuss all options available to suit your specific family’s situation.
The Bank of England has voted to reduce the Base Rate by 0.25% for the second time this year, taking it to 4.25%. Base Rate was held at 4.5% in March after it was cut by 0.25% in February.
Adapted from Zoopla’s April 2025 Housing report I mage: The analysis uses average house prices from the house price index and for first-time buyers to assess mortgage payments at different mortgage rates applied to a 30- year mortgage, at different loan-to-values. One emerging trend that we expect to positively support market activity in the coming months is a relaxation in how lenders assess the affordability of new mortgages. While buyers focus on the mortgage rate they will pay, lenders also check whether the borrower can afford a 'stressed mortgage rate' at a higher level than the borrower will pay. While the average 5-year fixed rate mortgage is around 4.5% today, many lenders are currently 'stress testing' affordability at 8-9%. This makes it harder to secure a mortgage without a large deposit. If average mortgage stress rates were to return to pre-2022 levels of 6.5% to 7%, this would deliver a 15-20% boost to buying power. An average first-time buyer with mortgage repayments of £1,020pcm at a 4.5% mortgage rate would typically have to prove they could afford monthly repayments of £1,550pcm at an 8.5% stress rate. If the stress testing is relaxed to 6.5%, repayments would fall to £1,275pcm, boosting buying power. It's a similar pattern for the average homeowner, while the actual impact will vary by lender and type of borrower. This change would consequently supporting demand and sales volumes, helping to clear the stock of homes for sale, rather than boosting house prices. Other existing rules and regulations that remain in place will continue to impact the availability of mortgage finance. Comment from Phil Clark “This is potentially very exciting news and will give borrowers a greater choice of products if these rules are relaxed. Regardless of whether you are a First-time Buyer, Looking to move, remortgage or invest in property, there are a huge range of competitive mortgage deals on the market. I will be delighted to discuss your specific requirements and offer you the most suitable deal!” Please call Phil on 0117 3251511 or email info@swmortgages.com For more information about the Mortgage and Protection products we offer, please visit www.bristolmortgagesonline.com Your home/property may be repossessed if you do not keep up repayments on a mortgage or other debt secured on it.
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