The government has been urged to release ‘safe move’ guidance and a number of monetary incentives to ensure the property market safely hits the ground running once it is reopened.
The group of property sector stakeholders including Landmark Information Group, Mortgage Advice Bureau and Simplify have written to Robert Jenrick, highlighting a four-step proposal to ensure the property sector reacts positively post-lockdown.
Firstly, the group have claimed ‘safe move’ guidance should be released imminently in order for all stakeholders to plan and prepare for the safety and continual social distancing measures. Failing to address this could cause delays, inconsistencies and confusion when restrictions are lifted.
The government are also advised to protect delayed and disrupted transactions that are currently on hold by protecting mortgage offers from lenders.
In line with many organisations, including RICS, the group have suggested a number of financial measures are needed. This could include stamp duty reprieves in order to encourage immediate market activity.
Help is also needed for businesses working in the sector. Whilst the Chancellor is looking at a workable furlough exit strategy, the group are calling for an extension of the Job Retention Scheme to allow businesses the opportunity to realistically transition their staff back into employment without putting too much strain on the business.
Simon Brown, chief executive of Landmark, said:
“We share government’s view that it is critical this crisis is a short, sharp shock to the economy rather than an extended depression. However, we are concerned that without a plan the housing market and home movers will experience the same uncertainty that followed the financial crisis. Protecting the housing market at this crucial time will help grow the UK economy and avoid a costly downward spiral. We know that government is also keen to achieve this, and our priority is to work with them to ensure the right short- and medium-term decisions are taken.”
Ben Thompson, deputy chief executive of Mortgage Advice Bureau, commented:
“Our businesses play a vital role in the home moving process. As a Group we are market leaders in the provision of mortgage advice, surveys and conveyancing. We believe that we have a responsibility to join others who are campaigning on this and taking the lead in supporting the recovery of the wider sector at this critical time. We need a truly joined up approach that recognises that all those working across our sector must be able to operate again, co-ordinating seamlessly, in order for the market to recover.”
David Grossman, chief executive of Simplify, added:
“Our focus is on ensuring that we are able to support the home moving process to restart in a way that is safe. We recognise that the government rightly took strong and decisive action to effectively pause the UK home moving market. At the appropriate time it is critical that there is equally clear guidance to consumers and industry to allow the market to restart and to recover. Our priority is to work with government and others in the industry to establish this. While we know there are economic consequences from a dysfunctional housing market there are also significant social implications, making it essential that the market recovers as quickly as possible.”
