Would-be buyers and sellers have shelved plans to buy and sell properties for at least five months because of the coronavirus pandemic.
That’s according to a poll by Censuswide, commissioned by mortgage broker Trussle, which discovered nearly half of active buyers had put their plans on hold before the government froze the housing market.
Indeed, at the end of March the government said house moves should not go ahead. Social distancing rules put a temporary end to vital elements of the home buying and selling process including viewings and surveys. What’s more estate agents were forced to close their doors.
However, many people had clearly felt they should halt proceedings before the government intervened. According to Trussle, 49% of those planning to buy decided to stop looking for a new home and 20% of sellers decided to halt proceedings on the sale of their home well before late March.
This week, property consultant Knight Frank predicted house sales would fall by 38% this year if the lockdown carried on through April and May.
Ian Larkin, CEO of Trussle said: “Just last month, it would have been nearly impossible to contemplate the scale of the lockdown and its economic impact. We’re now feeling the effects in the housing market and it’s difficult to predict how long it will take for transactions to return to pre-crisis levels.
“With the government’s latest plea discouraging buyers from moving house, It’s entirely understandable that people are putting off their housing plans.
Switching deals
Trussle, along with other mortgage brokers, has noted that despite the Covid-19 crisis, there is still an appetite for remortgaging. In fact, one in six homeowners were thinking about it according to the Censuswide survey.
Of those who are considering switching to a better deal the majority were aged between 25 and 44 and nearly a quarter lived in London.
Trussle said, in the current climate, everyone with a mortgage should check when their initial term ends and – if they are indeed approaching the end of that period – consider remortgaging.
Larkin added: “At a time of financial uncertainty, it’s a good time to think about your personal outgoings. We know that people could save an average of £4,100 per year just by switching their mortgage to a better deal.
“During these uncertain times, people are taking steps to protect themselves financially. Reducing mortgage payments, the biggest monthly outgoing most homeowners will face, is a priority for many.”
