UK property market could grind to a halt as latest advice puts 300k transactions at risk

The latest advice from Housing Secretary Robert Jenrick is that “homebuyers and renters should, where possible, delay moving to a new house while measures are in place to fight coronavirus.”  

The news has already caused some lenders, such as Virgin Money to suspended all new mortgage applications until the crisis has passed. 

Research by estate agent comparison site, GetAgent.co.uk, shows that based on transactions over quarter two of last year, this could see nearly 300,000 property sales fall by the wayside as buyers and sellers across the UK are unable to transact.  

The most severe impact will be across England where last year 237,820 transactions were recorded in the three months between April and June.  

Founder and CEO of GetAgent.co.uk, Colby Short, commented:

“The Government obviously feels this latest advice is required to help halt the spread of the Coronavirus and it should, of course, be adhered to where at all possible.

This may only be a temporary measure but for those who had already tackled the protracted process of selling only to see their sale or purchase sidelined on the home stretch, it will be a worrying few months.

Historic data shows the market could see some 290,000 transactions at risk although, given the early signs of market buoyancy since the election, this could well be in excess of 300,000.

Our advice would be to keep calm, be patient and stick with it. This is a development that impacts both buyer and seller so hopefully, those property sales that have already been agreed should still materialise once normality returns; bringing a huge boost to transactions in the third and fourth quarters of the year.

It is now down to the nation’s estate agents to demonstrate their worth by acting as the lynchpin between both buyers and sellers to keep them as informed as possible via any and all channels of communication.”