Boris Warns Of Premature Exit But Agent Return Important

Boris Warns Of Premature Exit But Agents Return Important

Boris Johnson was warned the public that the UK is at maximum risk of a second spike in Covid-19 if social distancing restrictions are relaxed too soon. In his first official speech as prime minister

Ask The Expert: Securing Coronavirus Loan Success

The conveyancing sector has been severely impacted by the government imposed lockdown and property market freeze at the end of March. Anecdotally, many firms have taken advantage of the government’s Job Retention Scheme by furloughing

Taylor Wimpey Preparing To Reopen Construction Site

One of the UK’s building heavyweights, Taylor Wimpey PLC, is set to reopen its construction sites on a phased return in less than two weeks. The house builder has pledged to conform with all governmental

Huge Rise In Leaseholders Researching Enfranchisement Rights

Lockdown has prompted more people to review their leasehold contracts with leaseholders increasingly researching their enfranchisement options. The Association of Leasehold Enfranchisement Practitioners (ALEP), has reported a significant rise in homeowners reviewing their leasehold extension

Estate Agents Returning To Work Will Improve Economy

The Guild of Property Professionals has written a letter to the government urging them to include estate agents in the first wave of essential services to be released from lockdown. The letter stresses that lifting

Marginal Decrease In March Transaction Figures

The property market remained resilient in March despite the lockdown induced property freeze at the end of the month. There were 99,440 residential property transactions in March, a marginal 0.3 per cent rise from March

Equity Release Reaches £4 Billion In 2019

Despite economic uncertainty caused by Brexit and a winter election, £3.92 billion of property wealth was withdrawn using equity release products in 2019. According to the Equity Release Council’s ‘Spring 2020 Equity Release Market Report’,

How can the property market most easily recover once lockdown measures have been eased? There is no denying that the world is forever changed by the global pandemic we are all living through. Pressing pause on the world's market place does not mean that business wakes up, dusts itself down and resumes like the past few months were just a bad nightmare. Every economy on the planet has shrunk. The UK's workforce will not be rounded up at the end of the pandemic and put back to work. Jobs will be lost, unemployment is expected to almost triple by the end of June to around 10 per cent and lenders, buyers and sellers are likely to be a lot more cautious. Knight Frank predict the property market to contract by 38 per cent in 2020 with transactions reducing by 526,000 residential sales when compared with 2019. The knock on effect to other stakeholders in the property market is also likely to cost the economy over £8 billion this year. Knight Frank estimate that property owners will delay improvement plans and fewer new builds will be built, creating a £7.9 billion economic loss. Furthermore, it is likely that £395 million will be lost in removals as fewer housing transactions and the current property freeze impacts removers. The government, already borrowing GDP percentages at levels last seen during the second world war, are also set to come out of this year with record debts and significantly lower income streams with stamp duty land tax (SDLT) receipts falling by £4.4 billion and VAT declining by £1.6 billion. Despite the financial hit parliament will take this year, they will need to make a lot of important decisions to ensure the economy can reignite in a post-virus world.     Sentiment suggests, that currently, people are still looking to move. Only around 2 per cent of properties on the market when social distancing measures were introduced have withdrawn from the market and the pipeline of activity is only expanding. With that in mind Knight Frank have suggested the following measures are instantly needed to encourage home moves.  Firstly, given the hit the government are already taking with reductions in stamp duty, it has been argued by many stakeholders, including RICS, that a full stamp duty holiday is needed for all buyers. This is a 'in for a penny, in for a pound' mentality. The government are already set to lose around half of their SDLT revenue and therefore what is a few more billion? However, to a final stepper looking to downsize, saving thousands could be the influencer and determining factor in moving. In turn, this tax reprieve could them stimulate other areas of the market into action. Knight Frank claim that this measure alone will be insufficient in fully reigniting a decimated marketplace. Extending Help to Buy is also viewed as a vital cog. The scheme helped bring the fragile property market from the brink in 2013 and could continue to do so in 2020. It will provide a vital level of support to the housebuilding sector, encourage developers to continue building at somewhere close to 2019 levels and provide vital help to potential buyers that may find acquiring mortgage deals more difficult in a slightly hardened market. Technological and cultural improvements could be made to the conveyancing sector according to Knight Frank. They claim that 'removing the reliance on pen and paper' is vital with a shift towards the use of blockchain and digital working viewed as a necessary step in safeguarding and improving this section of the home buying and selling process. Finally, the post-virus suggestions maintain that the planning sector should use the 'new normal' as a way of improving its processes. Supply-side measures to improve the efficiency in planning departments is deemed as crucial. Knight Frank reference the fact that the Coronavirus Act already allows planning departments to run virtual meetings to ensure approved land and developments are ready to go post-virus. Builders and developers have been greatly impacted by the property hiatus and may not have the finances to pick up where they left off. Creating flexible payment options for Section 106 or Community Infrastructure Levy obligations could give developers the ability to investment the money they would otherwise lose. Developers also need to be given extensions to start existing and pending planning permissions in a similar way to powers granted between 2009 and 2012. What immediate action does the government need to take in order to help stimulate a fragile post-virus property market?

How can the property market most easily recover once lockdown measures have been eased? There is no denying that the world is forever changed by the global pandemic we are all living through. Pressing pause

21% More Property Sector Businesses In Critical Distress

Over half a million businesses are now in significant financial distress with the real estate and property sector amongst the worst hit. 2,289 businesses are now in critical distress, a precursor for insolvency. This figure

Will Market Freeze Extend Help To Buy Deadlines?

The market freeze caused by social distancing measures is prompting many to claim that Help to Buy deadlines should be pushed back in order to facilitate many delayed transactions. Help to Buy is scheduled to

Search Activity Increases Slightly After Weeks Of Decline

Although social distancing restrictions have led to difficult but inevitable declines in activity over recent weeks, the last week ended with a number of surprising increases in daily activity. According to Twenty7Tec’s activity monitor, purchase

Property Searches Unavailable In 24 Council Areas

Property searches are currently unavailable in 24 council areas and some have introduced new charges for providing information remotely to search providers. The Council of Property Search Organisations (CoPSO) has praised the majority of local

Coronavirus Will Deter Third Of Buyers And Sellers

Convey Law explain how their robust disaster recovery plan and proactive use of governmental support is helping their employees and business thrive in a post-coronavirus property sector. Following the stalling of UK transactions, many people

Estate Agents Amongst First Wave Of Businesses To Reopen

The Sun newspaper and Daily Star have claimed that estate agents could be amongst the first wave of high street businesses permitted to reopen as the government look at a workable exit strategy for the

New Build Developer Barratt Cautious

In a stock market announcement this morning Barratt, the new homes developer, announced that they have completed on 1349 new build homes between 23rd March and 12 April 2020 but they “expect any further home

Government Reservation Agreement Trial Delayed

Recent indications suggest remortgaging volumes are improving after significant falls following the introduction of social distancing restrictions. Although new case volumes decreased by 14 per cent in the week commencing April 6 from the week

Is The Home Buying Process Essential Work?

A survey looking at consumer sentiment suggests that buyers and sellers are still looking to renew their interest as soon as restrictions are lifted. According to Reallymoving, 75 per cent of property stakeholders in the

Purchase mortgage searches have fallen by 82 per cent over the past four weeks. According to weekly mortgage data provided by Twenty7Tec, up to the week ending April 11 purchase mortgage searches had also reduced

Diary Of A Highstreet Conveyancer - Tuesday March 31

One in nine UK mortgages are now taking advantage of a mortgage payment holiday. According to UK Finance data, over 1.2 million mortgage holders impacted by Covid-19 have applied to their lenders for a mortgage

Diary Of A Highstreet Conveyancer - Friday April 3

The property sector is facing unprecedented challenges at the moment. Covid-19 has decimated the home buying and selling process with searches and new mortgages almost halving in four weeks. Similarly, lenders are now reluctant to

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