On behalf of everyone at Richard James, we hope you are safe and well. We wanted to provide you with an update on what we’re doing and to also answer some questions that might be on your mind about the house you are buying or selling.
The majority of our staff are furloughed; however, the Directors are working from home, answering calls, communicating by email whilst trying to keep the business operating remotely. We are taking enquiries from prospective purchasers who want to arrange viewings once the lockdown has ended.
We are unable to conduct face to face appointments of any description at the moment and any property that is currently sold, subject to contract is progressing at a slow pace or may have hit a roadblock completely as surveyors are not working, mortgage lenders are short staffed, few searches are being carried out as the majority are observing the rules of social distancing and movement of people.
The media, as always has an opinion on the housing market and at the moment the messages are very mixed. On one hand, we are reading the market is going to suffer and on the other hand, it will resume at a strong pace due to the number of pent up buyers and sellers who didn’t move last year due the stop, start of politics and Brexit.
From our point of view the market is currently on “pause”, no new sales are being generated due to not being able to view; very few sellers are withdrawing from the market and current buyers are certainly waiting patiently for the wheels of industry to start turning again.
A recent report from Zoopla suggested that agreed sales are down by 70% since the start of the restrictions, this should not be confused with prices as there is no data to suggest prices have been impacted so far.
The figure of sales agreed being down by 70% seems unrealistic, we feel this should be nearer to 98% as without viewings, sales cannot effectively be agreed. The only agreed sales we are aware of, are by online auction.
With interest rates now virtually non-existent on savings, it is very likely that a new influx of Buy To Let investors will enter the market which will no doubt help to stimulate activity and build chains once normal business resumes. This activity should underpin the market.
In the meantime, we urge everyone to remain safe by staying indoors and we look forward to the day when the Government presses the “start” button again!
Some commonly asked questions and answers, we may not know all the definitive answers as the situation is changing.
Q – I am currently purchasing a property, will that still continue?
A – Yes, but depending on what stage the transaction is up to, it will more than likely be on “pause”.
Q – I have made an offer on a property, my mortgage valuation hasn’t gone ahead yet, what will happen?
A – The large majority of valuations have been postponed for obvious reasons but some mortgage lenders will conduct a desk top valuation where no internal inspection is required but this will depend on lending criteria.
Q – Are any removal companies still working?
A – The British Association of Removers told their members to cease removals, however local firms and van hire companies may still be operating.
Q – What can my solicitor do whilst we are on lockdown?
A – We understand most legal firms are working in some capacity, although some with reduced staff. They will be able to open files, send and receive draft contracts, raise and reply to enquiries but these may be limited without searches. If a solicitor is currently not in receipt of a mortgage offer/funding and searches, it is unlikely a move will take place before lockdown ends.
Q – Can I re-view the property I am buying?
A – No, in accordance with Government guidelines no face to face meetings are permitted, even if the property is vacant as we will require a member of staff to attend.
Q – We exchanged contracts before lockdown was announced and we are due to complete soon, what do we do?
A – The Governments advice is to postpone unless the move is essential and all parties are able to find a removal firm. A revised completion date may need to be mutually agreed via the solicitors.
Q – The property I am selling is empty and I am paying the mortgage still. Is there anything I can do?
A – Borrowers can apply to their lender for a “payment holiday” however most lenders have different criteria so it is worth checking the lenders website.
Q – What are property prices likely to do?
A – We don’t know, however the first ten weeks of the year the market was incredibly buoyant, so there is great optimism that after this pause in the market activity will resume and prices will remain unchanged. This will depend on confidence and the overall economy.
If you have any further questions please contact our offices, Wellingborough 01933 224400, Irthlingborough 01933 651010 or Rushden 01933 480480, we will more than happy to help.