A glut of homes for sale flooded onto property websites today after Britain’s housing market was reopened in a bid to get the country moving again during the lockdown.
Some 2,150 properties have been added to RightMove in England, Wales and Scotland over the past 24 hours as Robert Jenrick lifted the ban on moves.
The Housing Secretary and other Ministers hope today’s reopening of the housing market – shut since March 23 – will be a significant boost to the economy.
Among the properties added in recent hours is a lavish £24.5million four-bedroom apartment at the exclusive Mayfair Park Residences development in London.
Other properties just added in the capital include a £2.8million six-bedroom semi-detached home in Chiswick and a three-bedroom Hampstead flat for £1.9million.
Among the properties added in recent hours is a lavish £24.5million four-bedroom apartment at the exclusive Mayfair Park Residences development in London
Another property just added is a £2.8million six-bedroom semi-detached home in Chiswick
Estate agents across Britain have been told they can now reopen immediately, although they will be encouraged to make more use of ‘virtual viewings’ online.
Removal men have also been told they can get back to work as they were issued new guidance on working safely, including wearing masks and gloves.
And, in a move to kick-start the wider housing market, councils will be encouraged to let construction firms extend their working hours until 9pm, six days a week.
This will be in order to allow for the staggering of shifts and greater social distancing. Show homes will also be allowed to reopen.
A three-bedroom flat in Hampstead, North West London, has just gone up for £1.9million
A three-bedroom semi-detached house in Wanstead, East London, has gone on for £800,000
The package of measures is expected to free up an estimated 450,000 buyers and renters whose moves have been in limbo since the market was shut down in March.
Alistair Elliott, senior partner at Knight Frank, spoke to BBC Radio 4’s Today programme this morning about how estate agents will be able to return to work.
He said: ‘Well eight weeks of lockdown has taught us a great deal, the most important lesson of all is that we can’t sell homes or rent them whilst in these circumstances.
‘Therefore lifting the ban on viewings and valuations for residential is a major first step and our customers are now able to visit our branches for renting or buying property whilst importantly respecting the social distancing measures.
‘We are implementing firm wide plans which have been developed over the period of lockdown to adapt to all of our premises, keep them clean, keep them safe. To ensure that safety of our teams and our clients are first and foremost protected.
‘And that being the case we believe the public will have confidence to reengage with the housing market and the enormous shift that has occurred in the market grinding to a halt will hopefully quite quickly reverse.’
Asked how it will work, he added: ‘We are hoping our teams will be able to visit premises. We will give those people whose homes we are visiting clear guidance as to what we feel they should do. It would be better if they weren’t in the property.
A two-bedroom terraced house in Abbey Wood, South East London, has gone up for £350,000
A 40% share in a one-bedroom apartment in Queensbury, North London, is on for £132,000
‘If they feel they need to be in the property then social distancing will be respected at all times.
‘Similarly for those potential buyers and renters we will be giving them guidance into the protocols that will need to be in place to ensure everybody is kept safe.
‘Noting first and foremost that the government guidance will be followed every step of the way in respect of social distancing.’
He added that estate agents will have to ask someone if they have had coronavirus or symptoms of it, saying: ‘We simply have to ask the question.
‘ It will be part of our policy, indeed it already is part of our policy that anyone who contacts us and requires any contact whatsoever.
‘It will be necessary for them to advise us of any symptoms they may have and if there are symptoms we will not be able to progress at that moment, until they have completed the appropriate period of isolation.’
Mr Jenrick told the Mail: ‘The housing market is one of the most important sectors of the economy and the ability to move home is also important to people’s lives.
‘It has been totally frozen, but we have been working hard on a comprehensive plan to get it moving safely again and we are now in a position to enable a complete reopening of the housing market.’
The move came as Chancellor Rishi Sunak admitted Britain is already in recession, with new GDP today showing that the economy started to shrink in the first three months of this year, even before the full impact of the lockdown hit.
And there was a further blow as Health Secretary Matt Hancock warned that people were unlikely to be able to take a foreign holiday this summer.
Ministers effectively shut down the housing market on March 26, with a change in the law that banned move except where ‘reasonably necessary’.
Politicians said that, other than in exceptional circumstances, only those whose moves were already underway could complete their moves.
Housing Secretary Robert Jenrick (pictured at No10 on May 6) said the market is now reopen
Mr Jenrick today tweeted the new rules and how the housing market would be reopened
Those who had already exchanged contracts were told to delay their completion date. And renters were told to stay put even if their tenancy agreement had run out.
The British Association of Removers urged removal firms to cancel or postpone ‘any move that had not yet started’. The clampdown saw the market close overnight.
But, with ministers now anxious to get the economy moving again, and construction firms warning there is no point building houses no-one can buy, the ban is now over.
Estate agents are asked to see clients by appointment rather than allowing people to walk in off the street and to ensure social distancing measures are in place.
They will be encouraged to make use of ‘virtual viewings’ where possible, although physical viewings will also be allowed.
Owners will be asked to leave the house or stand in the garden while viewings take place, and clients will be asked to avoid touching surfaces.
Mr Jenrick said ministers recognised the necessity of restarting the housing market for both economic and social reasons, adding: ‘Thousands of people have been stuck in limbo. Ow they will be able to get on with their lives.
‘Virtually no house moves have taken place in the last two months and people do need to move for all sorts of reasons such as work, being near to elderly relatives or because of changes like divorce.’
The Prime Minister this week urged the construction industry to get to work.
But industry leaders warned ministers that the housebuilding sector would not reopen while the housing market remained shut.
A new ‘Safe Working Charter’ has now been agreed with the industry to help get builders back to work.
And councils will be asked to consider requests to operate building sites until 9pm, Monday to Saturday to allow for staggered shifts.
Town halls will have to show ‘compelling reasons’ to refuse requests. But construction firms will be told to carry out noisy activities during ‘normal working hours’.
Also today, two of Britain’s biggest housebuilders announced plans to remobilise.
Crest Nicholson said it would restart construction on its sites from next Monday, after similar moves from its rivals to do the same.
It will give the company enough time to properly train its staff and make adjustments to safety on the sites, which have been closed since the start of April.
Taylor Wimpey, which has already restarted construction, said its show homes and sales centres would start opening again from next Friday.
Customers will be able to pre-book appointments, the housebuilder said. It said that construction has already restarted on a majority of its sites in England and Wales.
Around £82 billion of transactions are thought to be on hold in the property market.
Taylor Wimpey said that its sales rates had remained stable since it announced plans to restart construction three weeks ago. There have been signs of increased activity in the last week.
It sold 408 homes during the lockdown period, and has an order book worth around £2.7 billion.
Most of its furloughed sales staff will be recalled by May 18, with the majority of other furloughed workers back before the end of the month.
Lucy Pendleton, property expert at estate agents James Pendleton, said: ‘It’s a brave new world but the viewings must go on. We’ve got all the necessary PPE ready to go, and buyers and sellers keen to start viewing straight away. We’re just waiting to hear what the government’s detailed guidelines are.
‘Agents have been desperate to get back to business, and an explicit mention for the sector in the government’s lockdown strategy on Monday was noticeable by its absence. You could almost hear the collective sigh of relief when news that agents could get back to work trickled out late yesterday afternoon.
‘It’s fantastic news that agents aren’t going to have to wait until July to start showing properties properly again, as we will find out sooner rather than later whether some of the more dire predictions for the housing market will come true. In London, we have seen absolutely no sign of the conditions that would normally precipitate a marked fall in prices. We expect a similar picture to be playing out across the country.
‘Lack of supply exacerbated by sellers delaying their moves until after the pandemic has eased significantly is going to put a floor under prices, much like it did during the Brexit negotiations. Borrowing rates are extremely low too and that’s going to boost buying power.’
And David Westgate, chief executive at Andrews Property Group, said: ‘Moving home is a highly emotive process and the reignition of the property market on Wednesday will help boost the nation’s spirits.
‘Adherence to social distancing and the highest safety standards will be absolutely paramount and all precautions will be taken to protect people viewing property, including through the use of PPE equipment where appropriate.
‘There are differing views on how the property market will shape up as the lockdown is gradually eased but we expect to see significant activity moving forward with a huge initial surge in pent-up demand.’