Lockdown Part 2

The second lockdown has started and in the run up to Christmas there is a huge amount of uncertainty over the impact this will have on jobs and the economy. The Bank of England predicts that the jobless rate will peak at 7.75% in the second quarter of 2021 they have announced they have boosted the quantitative easing package by a further £150Bn and have maintained the bank rate at 0.1%. This is followed by Sainsbury’s announcing that it’s cutting 3500 jobs and closing 350 Argo stores, John Lewis & Lloyd’s banking group have also said they are cutting a combined 2500 jobs!

However if you are buying or selling at the moment or work in the property sector it is reassuring to hear that the property market will continue to remain open for business.

Government guidance published ahead of the latest lockdown also states that you can move home-

13. Moving home

You can still move home. People outside your household or support bubble should not help with moving house unless absolutely necessary.

Estate and letting agents and removals firms can continue to work and people looking to move home can continue to undertake viewings.

Follow the national guidance on moving home safely, which includes advice on social distancing and wearing a face covering.

As an active property buyer and property developer we have been receiving calls and emails from agents advising that their offices remain open for business although most will be closed to the public. Following strict social distancing they will continue to carry out essential viewing and market appraisals, with some are offering virtual valuations (guesstimates), but jokes aside the good news is that Estate Agents will play an active role in keeping the property market moving, agreeing new sales and progressing their slow moving pipelines. It is however still uncertain what the remainder of the essential cogs in the property market will be doing to help people move home. Solicitors & Conveyancers will remain open and continue to handle all the necessary legal aspects so theres no real change there as many solicitors /conveyancers have been working from home since the first lockdown.  However the question is what are surveyors, mortgage companies, removal companies, search providers and other service providers going to do? E.Surv Surveyors say on their website that they will continue physical inspections during November lockdown, however during the first lockdown everything seemed to grind to a halt, it was impossible to get a survey, solicitors were only going into the office once a week to pick up post. Mass properties were down valued due to market uncertainty, in fact if you google this there are many web pages including an article in the Independent quoting that nearly half of Uk properties down valued by mortgage lenders during the first 6 months of the Covid crisis. https://www.independent.co.uk/money/house-prices-mortgage-latest-stamp-duty-holiday-b+447974379727.html

Keeping the property market open is important and provides an opportunity for existing sales to complete and for new sales to be agreed, but with all the continued uncertainty in the economy and the job market how long can this go on? There will also be a point in the very near future where any buyer hoping to move because of the stamp duty holiday will be unable to physically complete in time to meet the deadline and if the government don't extend the stamp duty holiday what happens then?

Spring Developments have for many years been purchasing properties for development, conversion and refurbishment. We also actively purchase properties where sellers require a quick sale and are often able to exchange contract within a matter of a few days. As an example this week we have agreed a sale on a probate property which had been sold stc. but due to a bad survey the buyer had pulled out. We were contacted directly and agreed the sale based on an exchange of contracts within 7 days.

If you have a property suitable for development or conversion, or have been let down by a buyer then please do not hesitate to get in touch. We always have cash funds available for purchases #webuypropertyinanycondition