We are now exactly one month into the lockdown measures imposed by the UK government to help tackle the coronavirus crisis, and the property market like many other industries is experiencing a temporary halt.  After a very promising start to 2020 with January and February transactions well up on last year, the traditional spring selling season that we should be enjoying right now is on ‘pause.’   So where does this current situation leave home buyers and sellers and what can we expect in the coming weeks and months?

Looking forward to after lockdown has been lifted, we expect there to be pent-up demand from those people who have been waiting to view and buy homes.  By the end of the year, transactions may well be back to normal levels.

You may have read ‘doom and gloom’ articles from some, predicting large property price drops, but these are just the ones that make the headlines.  Savills, for example, predicts a modest fall of between 5 and 10 per cent across the UK in the short term, with prices ‘cushioned by low interest rates and lenders’ forbearance on arrears, which reduces forced selling.’

For the time being, property viewings have been suspended, and whilst other agents are no offering ‘virtual viewings,’ we suggest that this may not be the best option for many homes.  We strongly believe that the best way to show your home’s unique attributes is via professionally taken, well-lit and styled images and brochures and professionally shot and edited video set to music, to give potential buyers a ‘taster’ of the home.  Any less than this, perhaps via a Zoom or Facetime video, just won’t have the same impact and may fail to show your home in its best light. 

To clarify, we are not anti-video or virtual tours – in fact we have been using them successfully over the past three years, but there is a world of difference between a professionally created video tour used strategically as part of the property marketing strategy and a shaky Facetime tour taken from your mobile phone. 

Over the past couple of weeks, I’ve seen a few agents talking on social media about homes they have sold from virtual viewings alone, but I remain deeply sceptical about any offer that is made without a physical inspection.  Many experts suggest that over 90% of buying decisions are based on emotions:  an in-person viewing of a home engages all five senses and video is simply no substitute for that.  Additionally, any offer you may receive as a result of a ‘virtual’ viewing will almost certainly be subject to a physical viewing anyway once lockdown is over.  Throw in the current impossibility of being able to get a survey done and it’s clear that you have little to gain by offering anything other than a viewing, in person, to an interested buyer.

 The best approach, we feel, is for agents to keep a list of interested buyers to contact as soon as lockdown is lifted and viewings can begin again.  Interestingly, we have had quite a few calls from abroad, they probably make up around 50% of the buyer calls we currently receive, which is much higher than normal.  Buyers from Dubai, New York, Hong Kong and Germany have all been in contact over the last couple of weeks, asking about specific homes we have for sale.  Many are ex-pats, looking to return home.

Right now, some people will be browsing Rightmove and dreaming of a bigger house, a bigger garden and even a complete change of lifestyle once this situation is over.  Indeed, some of our homes have received extra interest on Rightmove over the past couple of weeks.  Rightmove have reported an increase in searches using the keywords ‘garden,’ ‘acres,’ ‘land’, ‘rural’, and ‘annexe.’  It’s possible that people are rethinking their lifestyles and seeing they could get a lot more for their money outside London and other major cities, as well as realising that they can work from home and don’t need to go into the office every day.  Once Lockdown is over and people settle back into their normal routines, we may see a migration trend with urban dwellers wanting to move to the countryside to improve their quality of life.  After all, if you are living in a one million pound apartment with no garden, an equivalent spend in Oxfordshire could change your lifestyle for the better, especially with interest rates at record lows.

However, the trend isn’t entirely upwards.  Perhaps some people are simply too busy right now to think about moving home, with home schooling, financial management and working from home taking up their time and mind-space.  Only time will tell which is the stronger influence on the property market.

Some of our clients have asked if they should take their homes off the market.  In more normal times, having your house for sale for months without a viewing can cause it to become stale.  But as things stand, there is still no commercial or strategic benefit to withdrawing from the market, as we are still receiving interest from committed buyers.   Henry Pryor, the BBC’s property commentator, agrees.  He says, “Those with homes already displayed in estate agents’ windows may be wondering whether to take them off the market.  But since all sellers have been equally affected, buyers will be more forgiving of a lengthy marketing period.’

 We continue to work as we have always done, from home and are currently working on progressing several offers received before lockdown and communicating with solicitors.  In a few weeks, when the situation is safe again, we will be able to resume doing what we do best – selling homes.  We may only get a few days’ notice, so we know we need to be able to act quickly and decisively.  We’ll be ready, and we can help you to be ready too.  If you have a burning question about your moving plans or need more clarity on any of the above points – whatever it is, we are here to help at any time.