It’s time to restart the housing market - by the Rt Hon Robert Jenrick MP
The Secretary of State for Housing, Communities and Local Government on why a home is more than just four walls
In a column exclusive to Zoopla, Robert Jenrick shares his vision for restarting the housing market and recovering from the coronavirus crisis.
As the Prime Minister announced this week, we have now moved into the next phase of our fight against coronavirus. As with so many aspects of our lives, many people across the country have had their plans and dreams of moving home put on hold throughout this crisis. We’ve also seen important work to build the homes we need paused.
We made this difficult decision in order to keep the country safe, but thanks to the hard work and sacrifices of British people during the lockdown, we are now able to begin easing some measures in a way that is safe.
Since March, more than 450,000 buyers and renters have been unable to progress their plans to move. As of yesterday (13 May), those waiting patiently to move can now do so, though those self-isolating or with coronavirus should continue to keep their move on hold.
Back in business
Each of the building blocks of the buying and selling process are now back in business. The foundation for this is our new guidance on moving home while staying safe, including keeping a two-metre distance.
Estate agents, conveyancers and removal firms can also reopen if they follow social distancing guidelines. This is aided by our guidance for people working in homes, including fitters, so they can support home moving while reducing the risk of infection.
Underpinning all this is our work to restart and renew home building, with safety at its core.
I am grateful to everyone who has been carefully preparing to return to work over recent weeks. Thanks to these efforts, this week we were able to launch a Safe Working Charter with the Home Builders Federation, committing developers to returning to work while following stringent health advice.
We’re also allowing builders to agree more flexible working hours on site with their local council. This will make it easier to follow public health guidance on sites and stagger builders’ arrival times, making public transport less busy and so reducing the risk of infection.
A clear plan forward
Taken together, this forms a clear plan to ensure that everyone involved in moving home and building homes can begin their return to normal life, safely.
As week-by-week we continue to defeat this disease, we will stick to our long-term vision for the housing market we all want to see: safe, beautiful, high-quality, affordable homes, and more of them.
Because a home is more than just four walls. As we have found more than ever during this crisis, it is a sanctuary, a form of protection, and a link to your community.
Everyone has a role to play in helping to control the virus by staying alert and following the rules.
We all need to work together safely as we rebuild our economy and restore livelihoods, starting with the housing market. If we do this together, we will recover from this crisis.
Coronavirus Q&A: how to move home safely now the property market has reopened
The property market in England has reopened and people can move home again. We look at key government information homemovers need to know right now.
The property market in England has reopened and people can move home once again.
But any moves must adhere to government guidance aimed at keeping everyone safe during the pandemic.
We take a look at questions and answers homemovers need to know to comply with new government rules.
Q. Does the reopening of the housing market mean it is business as usual?
A. No, the lifting of the restrictions on not moving does not represent a return to normality.
Instead, the process of finding, buying and moving home must be adapted to reduce the risk of spreading the virus.
Changes include carrying out as much of the process online as possible.
Homemovers will be expected to mostly continue with virtual viewings rather than physical ones. Sellers may need to vacate their homes while potential buyers are shown around. And properties will need to be thoroughly cleaned before the new owners or tenants move in.
The government has also warned that it may be necessary to pause all home moves again in the future to manage the spread of the virus.
Q. How do I move safely during the pandemic?
A. While moves are now allowed to go ahead, social distancing continues. Everyone must continue to follow the guidance issued by Public Health England.
In practice, this means you must stay at least two metres away from anyone who’s not a member of your current. household. And you should continue to wash your hands frequently.
You must also isolate yourself immediately if you develop any coronavirus symptoms.
Those considered to be clinically vulnerable should continue to self-isolate, and not move home unless it’s absolutely necessary.
If you’re in a property chain with someone who’s deemed to be vulnerable, you may have to put your moving plans on hold.
Q. How does social distancing work with people from removals firms?
A. You must stay at least two metres away from people helping you move.
You should also clean your furniture and other items before removals professionals arrive and after they’ve left. This will minimise the risk of transmitting the virus.
Try to do as much of the packing yourself as you can.
Before removal crews come to your home, you should open all internal doors.
All parties should wash their hands frequently and dry them on separate towels, or disposable paper towels.
You should not provide any refreshments for removal crews.
Q. What are the social distancing rules?
A. Social distancing rules must be followed during in-person viewings and meetings with agents in person. These include:
- Washing your hands when you enter a home
- Bringing and using hand sanitiser
- Not touching any surfaces
- Keeping windows open in homes to air out the rooms
- Ensuring everyone maintains a two-metre distance from one another
Q. Is there a limit on how far I can move geographically?
A. There’s no limit on the distance you can move within England. As long as you follow public health guidance while you do so.
But the reopening of the housing market only applies in England. So a move to or within Scotland, Wales or Northern Ireland is currently not possible.
Q. Can I still move home if my housemate has coronavirus symptoms?
A. If anyone within your household develops coronavirus symptoms, it’s important to put your move on hold and isolate yourself immediately.
If you’re contractually committed to moving home, you should still delay your move until all members of your household have come to the end of their self-isolation period.
This will minimise the risk of transmitting the virus.
Make sure you inform your landlord or letting agent if this is the case.
Q. I’ve tested positive for coronavirus but I feel fine. Can I still move if I follow all the guidelines?
A. No.
Even if you’re not experiencing any symptoms of coronavirus, known as being asymptomatic, you can still infect others.
If you’ve tested positive, it’s important that you and other members of your household stay at home and self-isolate.
Any move must be put on hold until the isolation period is over.
If you’re already contractually committed to moving, the move must still be put on hold and you should work with other people in your chain to agree a new date.
If you absolutely have to move - for example, there’s an urgent health and safety risk at your current property - you should contact Public Health England or your local public health team for advice.
Q. Can I view properties in person again now?
A. Yes, physical property viewings are allowed to take place again.
But it’s important that all parties involved follow public health guidance and take steps to minimise the risk of infection.
Viewing numbers should also be kept to a minimum. They should only involve members of the same household. It’s best not to bring small children if possible.
Even so, initial viewings should still be done virtually if possible.
Estate agents are open again and they can accompany potential buyers on viewings. But they must follow the public health guidelines too.
Show homes are also open and will operate an appointment system for viewing to avoid overcrowding.
Open house viewings are currently not allowed.
Q. I’m a renter, should I let my landlord organise viewings?
A. The government expects landlords and tenants to work together to help people to move home in a safe way.
Your landlord must give you fair warning about any viewings.
Those involved in the viewing must follow the public health guidelines.
If you or anyone in your household develops coronavirus symptoms, viewings must be cancelled until everyone has come to the end of their self-isolation period.
Q. Can I still have a survey done on a property I want to buy?
A. Yes, you can still have a survey carried out.
But surveyors will be expected to follow the same rules as those viewing properties.
This means they should maintain a distance of two metres from others, frequently wash their hands and not attend the property if they have symptoms of coronavirus.
You can visit a property you’re buying if you wish to take measurements.
But such a visit must be agreed with the seller and be conducted according to the public health guidelines.
For more information, read the official government guidance on moving home during the coronavirus outbreak.
Coronavirus: property market reopens for business
Estate agents are open and people can once again move home and view properties
The housing market in England has reopened for business after being shut down in a bid to slow the coronavirus pandemic.
From today, government advice states that estate agents can reopen their offices, potential buyers can view properties and people can move home.
Removal companies and other essential elements of the sales and letting process, such as surveyors and conveyancers, can also re-start work right away.
Reopened property market will boost economy
Charlie Bryant, chief executive of Zoopla, said: “Opening up the housing market is not just great news for home-hunters and estate agents.
“As well as unlocking £82 billion of housing sales stalled in the pipeline, it will provide an all-important boost to the real economy, as housing sales trigger increased spending through builders, tradespeople, removal firms, solicitors and many more.”
He added that before the coronavirus lockdown, the housing market was enjoying its strongest start to the year since 2016.
“By taking these steps, the government will give confidence to buyers, sellers and renters that Britain is reopening for business and they can do their bit to get the economy moving again.”
What does the market reopening mean for buyers?
Zoopla estimates that 373,000 property transactions were stalled due to the government’s lockdown measures.
These can now resume in England, with solicitors and conveyancers allowed to carry out their work as long as they follow social distancing guidelines.
Once a transaction has been completed, buyers will be allowed to move into their new home.
Those who have not yet found a property they want to purchase will be allowed to view homes in person, but they must comply with social distancing guidelines. This means staying two metres apart from whoever’s hosting the viewing.
What if I want to sell my home right now?
Following today’s announcement, estate agents will once again be able to visit your property to conduct an appraisal and take photographs for a listing.
Interested buyers will also be allowed to view your home in person, as long as social distancing guidelines are observed.
Even so, many estate agents are expected to continue to also offer virtual viewings. These have proven popular with buyers during the lockdown period.
What if I want to purchase a new-build home?
Building rates have slowed down as a result of social distancing measures. This has limited the number of people allowed to work on construction sites.
The good news is that in a bid to help construction firms catch up, the government is allowing builders to agree more flexible construction site working hours with their local councils. Showhomes can also reopen.
The government and the Home Builders Federation have launched a new charter to help construction sites operate in line with the latest health and safety guidance.
For new sites, developers and local councils will be allowed to publicise planning applications through social media. This is instead of using posters and leaflets and should speed up the process.
There will also be support for smaller developers, such as allowing them to defer payments to local councils to help ease cash flow pressures.
All of these measures should help the construction of new homes get back on track. This is particularly important for people planning to purchase a home through the government’s Help to Buy scheme.
What does the market reopening mean for estate agents?
The halting of the property market was set to cost estate agents £1 billion in lost commission.
Now that the market is restarting and stalled transactions going through, they should be able to start recouping some of this revenue.
Andy Marshall, chief commercial officer at Zoopla, said: “We’re delighted that the government has recognised the need to restart the property market, permitting estate agents to operate - within the parameters of common sense social distancing.
Now is the time to get the market moving and to restore it to full health.”
He added that Zoopla had two payment plans to help estate agents. For at least the next five months, agents who subscribed to one of these offers would be able to rebuild their revenue pipeline without shelling out on a portal.
“We welcome the opportunity to discuss plan options with any agents who have not signed up,” he said.
Families can move into new homes if done safely
Housing Secretary Rt Hon Robert Jenrick MP said:
“I know this has been a difficult time, with some families unable to move and feeling stuck in homes no longer suitable for them.
“Now we are past the peak of the virus we are now able to safely adapt some of the restrictions so that from today anyone in England can now move home as long as this is done safely.
“I thank everyone visiting Zoopla for their patience over the last few weeks and ask them to follow the public health advice as they search for their new home."
Top three takeaways
- The housing market in England has reopened for business after being shut down in a bid to slow the coronavirus pandemic
- From today, estate agents can reopen their offices, potential buyers can view properties and people can move home
- Removal companies and other essential elements of the sales and letting process, such as surveyors and conveyancers, can also re-start work with immediate effect
Coronavirus: will new lockdown measures impact your property purchase?
While new coronavirus lockdown measures do not directly address the property market, they mean positive change for potential homebuyers
The housing market is set to stay on hold for at least three more weeks despite relaxed coronavirus lockdown measures.
But the new measures could mean positive change for potential homebuyers and property browsers.
Government announces relaxed lockdown measures
Prime Minister Boris Johnson announced a series of measures on Sunday night. The aim is to enable a gradual reopening of society following the coronavirus pandemic.
These measures include allowing employees who cannot work from home to return to workplaces. Though they should avoid public transport. People are now also allowed to spend more time outdoors and travel further from their homes in their cars.
No specific measures were announced to help get the property market moving again.
Instead, it’s assumed that estate agents are in the same category as shops and will have to wait until 1 June before they can re-open their branches.
It remains unclear when viewings and new instructions will be able to start again.
Buyers can browse potential areas more easily
Despite no specific measures in place for the property market, the latest coronavirus lockdown measures are positive for potential homebuyers.
With unlimited outdoor exercise now permitted, as well as long car journeys, homemovers can scope out areas of interest more easily.
They can also check out the outside of properties that they could previously only view online.
Keeping your property purchase moving right now
Under current government guidelines, people have been asked to delay property transactions until after social distancing measures have been lifted.
But if the property you’re moving into is currently empty, you can still go ahead with the move.
In other circumstances, movers have been asked to work together to agree on a new completion date.
Virtual viewings have taken off
Estate agents can work from home and continue to market properties they already have on their books.
What they cannot do is visit homes to take photographs, conduct appraisals for new listings or show prospective buyers around a property.
Instead, many have turned to virtual viewings to enable people to view homes while in lockdown.
The types of virtual viewing available for homebuyers vary between different estate agents.
Others involve agents taking their own videos as they walk around a property and highlight its key features.
What does the future of the property market look like?
Even when things ‘return to normal’, the property market could look quite different.
Now that virtual viewings have become more popular, it’s likely agents will carry on doing them. Video tours could save time for homemovers and estate agents.
The use of technology gives people an insight into whether or not a property will meet their needs without having to book a physical tour.
Calls for stamp duty holiday to kickstart the market
There’s evidence to suggest there’s pent-up demand from homebuyers and sellers.
But industry bodies (such as The Royal Institution of Chartered Surveyors and The National Association of Estate Agents) have called for a stamp duty holiday to help kickstart the market.
This stamp duty holiday could boost confidence among potential buyers and encourage housing growth in 2020 and beyond.
Top three takeaways
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The housing market looks set to stay on hold for at least three more weeks despite an easing in other lockdown measures
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Estate agents are thought to be in the same category as shops and will have to wait until 1 June before they can re-open their branches
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But relaxations in exercise rules give potential buyers more scope to explore areas they like in person
Coronavirus: Property browsing bounces back across the UK
Property browsing has bounced back across the UK after the initial impact of the coronavirus lockdown in March.
tep aside Netflix, homebuyers are spending an increasing number of hours property browsing online right now.
This nationwide increase in property browsing suggests homebuyers are preparing to move after lockdown. The bounce back reflects a positive change in the market during these challenging times.
Browsing levels have risen steadily since March dip
During April, levels started to rise again, as potential buyers explored options for their next home move.
A breakdown of the data shows that all UK regions have followed broadly the same trend when it comes to property browsing.
During May, browsing activity fell by a half as everyone adjusted to the new normal in lockdown.
But since then, browsing levels have been rising steadily. And online engagement is now only around 30% below the high levels we saw on 1 March.
In the Midlands, browsing levels picked up over the last month but less than they have in other regions.
This could be for a number of reasons, including economic stability.
Gráinne Gilmore, Head of Research at Zoopla, said the browsing activity was not just wishful clicking on the most aspirational properties.
“Looking at fabulous properties can be a good distraction, especially during lockdown, but our data suggests that browsing activity is also translating into increased demand, and this is being seen across all price brackets for properties in the UK.”
Listings remain mostly unchanged
While lockdown has delayed potential home sales in the UK, that pent-up demand could well come back once restrictions lessen.
For buyers doing their homework, there are plenty of properties to choose from online - the total number of properties listed for sale has dipped by only 4% since early March.
More homes are set to come to the market as agents start to open their offices in the coming weeks.
If you’re looking to move, you can start your property search today.
Top three takeaways
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The levels of browsing properties for sale fell in March as a direct result of coronavirus. However, during April, levels started to rise again, as potential buyers explored options for their next home move
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Some regions have seen slightly more activity than others, with browsing for properties in London leading the way
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While lockdown has delayed potential home sales in the UK, that pent-up demand could well come back once restrictions lessen
Tax changes for landlords come into force
The start of the new tax year brings changes to mortgage interest tax relief and capital gains tax for buy-to-let landlords.
Landlords face more taxation changes from April 6 2020, with the phasing out of mortgage interest tax relief reaching its final stage and capital gains tax adjustments.
The start of the new tax year has seen mortgage interest tax relief scaled back further, while landlords who sell a property also now have less time in which to pay capital gains tax.
People who previously lived in a property that they later rented out have also seen tweaks made to the tax reliefs they can claim.
The changes to mortgage interest tax relief, which were well flagged in advance, have been blamed for many landlords exiting the sector in the past couple of years.
These are the main changes landlords need to know about:
Mortgage interest tax relief
The government has been in the process of tapering down mortgage interest tax relief since 2017 and gradually replacing it with a new system.
Before April 2017, landlords could claim mortgage interest tax relief on 100% of their mortgage interest costs. The amount they could claim was gradually reduced to 25% last year.
But under the new system, which comes into force on 6 April 2020, the relief has been phased out completely and replaced with a 20% tax credit for mortgage interest.
Changes to mortgage interest tax relief will affect around 55% of landlords who have one or more buy-to-let mortgages.
However, industry bodies have said the changes have caused some landlords to stop expanding their portfolios or even sell some of their properties.
Capital gains tax payments
Capital gains tax is paid on the profit people make when they sell a property that is not their primary residence.
The tax is charged at a rate of up to 28% on the difference between the property’s purchase price and its sale price, after deduction of the personal allowance. This personal allowance is £12,300 in the 2020-2021 tax year.
Landlords have previously had to declare capital gains tax liabilities in their annual tax return, giving them more than a year in which to settle the bill.
But from April 6 2020, they will need to declare and pay the tax within 30 days of selling a property.
Capital gains tax relief reduction
The changes to capital gains tax do not end there, with changes also made to capital gains tax relief for landlords who previously lived in their investment property.
Under private residence relief, landlords could exclude the years in which they lived in their property when calculating their capital gains tax liabilities.
They also did not need to include the final 18 months for which they owned the property in the calculation, even if they did not live there during this period.
But under the new rules, this 18-month period has been halved to nine months, increasing landlords' capital gains tax liabilities.
Rules around letting relief have also been tweaked. Previously, landlords were able to claim capital gains tax relief of up to £40,000, rising to £80,000 if the property was jointly owned by a couple, when they sold an investment property that was previously their home - even if they had not lived in it for many years.
But from April 6 2020 landlords will need to be living in the property themselves when they sell it to claim this benefit. This effectively removes the relief for the majority of landlords.
Top 3 takeaways
1. Mortgage interest tax relief has been phased out and replaced with a 20% tax credit for mortgage interest
2. Landlords now need to declare and pay capital gains tax within 30 days of selling a property
3. Capital gains tax relief for landlords who previously lived in their investment property has also been scaled back.
Coronavirus: Mortgage approvals impacted by social distancing
Mortgage approvals have fallen due to the impact of social distancing. But here’s how to move forward with your property purchase right now.
Mortgage approvals for house purchases slumped to a seven-year low in March as social distancing measures impacted the housing market.
The slump comes after mortgage approvals for house purchases hit a five-year high in February. It was clearly caused by the measures announced by the Government during March to combat the coronavirus pandemic.
A total of 56,161 loans were agreed for people buying a home in March, the lowest level since 2013, according to the Bank of England.
Why are mortgage approvals suffering?
Social distancing measures were first introduced in the UK in the middle of March.
Lockdown came into force on 23 March. But it was not until 26 March that the government published guidelines asking people who were in the middle of a property transaction to delay exchanging contracts.
As such, the virus is only likely to have impacted figures during the second half of March. So it’s likely that the main impact was during the final week of the month.
Can I still move house during coronavirus?
Coronavirus rules on moving house are not simple.
If the move is considered critical and you can’t agree on another date, you can go ahead so long as no-one involved is self-isolating or showing symptoms of coronavirus.
In light of the current circumstances, banks and building societies have agreed to extend mortgage offers beyond the traditional three-month deadline for customers wanting to buy a home.
If you think you will not be able to complete your purchase within three months of your lender agreeing your mortgage, contact them to ask for an extension.
How do I move forward with my house purchase right now?
You may be able to move forward with your house purchase if it’s currently empty.
But if the property is occupied, everyone involved in the transaction has been asked to try to agree a new moving date once the current lockdown measures have been lifted.
Virtual viewings keeping transactions moving
But some buyers and sellers are keeping transactions moving as much as possible with virtual viewings.
The types of virtual viewing available vary between different estate agents.
Some have used 3D cameras that enable house-hunters to take a self-guided tour around a property using their mouse to do everything from standing at the kitchen sink and looking out of the window, to measuring the size of wardrobes in the bedroom.
In other cases, agents have taken their own videos as they walk around a property themselves.
Virtual viewings are taking off as home-hunters continue to look for new properties during the coronavirus lockdown.
Estate agents' use of technology is proving so popular with would-be buyers and renters that some are willing to put in an offer to buy or rent a home on the strength of the virtual viewing alone.
Find out more about virtual viewings.
When will lockdown measures be lifted?
The Government has not yet put a date on when the current lockdown measures will be lifted.
Instead it has set five key tests that must be met first. The current restrictions will then be “gradually refined”.
Details on how this next phase will play out are expected to be published in the coming days.
In the meantime, while property transactions may be largely on hold, prospective buyers can still search the market for their next home.
Estate agents have been quick to respond to the situation. Many have introduced virtual tours to enable people to get a good feel for a property even if they cannot currently view it in person.
Top three takeaways
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Mortgage approvals for house purchase slumped to a seven-year low in March as social distancing measures hit
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A total of 56,161 loans were agreed for people buying a home in March, the lowest level since 2013
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Banks and building societies have agreed to extend mortgage offers beyond the traditional three-month deadline for customers buying a home
Coronavirus: one in seven mortgages in the UK covered by payment holidays
Customers who've come to the end of their existing mortgage deal can move to a new one, even if they're currently on a payment holiday or have been furloughed.
More than 1.6 million homeowners whose finances have been impacted by coronavirus have been given mortgage payment holidays.
One out of every seven mortgages in the UK is now covered by the scheme, under which people are able to suspend their repayments for up to three months.
The move is saving the average homeowner £755 per month, according to mortgage trade body UK Finance.
Lenders are also allowing customers who have come to the end of their existing mortgage deal to move to a new one, even if they are currently on a payment holiday or have been furloughed.
Under normal circumstances, customers who were not up to date with their regular mortgage payments would not be allowed to transfer to a new deal.
Stephen Jones, UK Finance CEO, says: "Lenders understand that many households are seeing their finances squeezed due to the coronavirus pandemic and we are working hard to help customers get through these tough times."
What is a mortgage payment holiday?
On 17 March, the chancellor Rishi Sunak said mortgage lenders had agreed to allow customers whose finances had been impacted by coronavirus to take a payment holiday of up to three months.
But the mortgage payments are only deferred, and the interest that would have been paid is added to the outstanding debt owed, while the missed payments will need to be made up at some point in the future.
More than 1.2 million payment holidays were agreed during the first three weeks of the scheme.
How do I apply for a payment holiday?
If you want to apply for a mortgage holiday, go to your lender’s website and follow the link on coronavirus.
After being inundated with requests in the early days of the scheme, many lenders have set up an online application process.
You will need your mortgage details to hand, including your account number, but you will not need to prove that your finances have been impacted, as lenders are allowing people to self-certify this.
Do not cancel your direct debit before the payment holiday has been agreed, as this would be classed as a missed payment and could impact your credit history.
A payment holiday is only available if you are not in mortgage arrears and have suffered only a temporary drop in your income, rather than a long-term reduction in your earnings.
If you face longer-term financial issues, contact your lender and discuss what alternative solutions may be available that would better suit your situation.
What if my current mortgage deal is coming to an end?
When your mortgage deal comes to an end you would usually automatically be put on to your lender’s standard variable rate, which typically charges a significantly higher interest rate, unless you remortgage to a new deal.
If you do switch to a new deal, you would have to go through new affordability checks and people who had been furloughed or who were on a payment holiday would not qualify.
Under the current circumstances, however, lenders have agree to waive these rules.
Stephen Jones says: "The industry has acted quickly to support homeowners through this crisis and has taken decisive steps to ensure that eligible customers on payment holidays due to COVID-19 can opt for the security of fixing their monthly mortgage payments going forward."
Coronavirus: what it means for mortgages
While one in nine homeowners have taken a mortgage holiday, the UK's lowest ever interest rate means it's worth keeping a close eye on mortgage deals available to you.
What’s happening in the mortgage market?
In March 2020 the Bank of England made two emergency cuts to the base rate, The cut from 0.25% to 0.1%, made in response to the coronavirus pandemic, means the base rate is at its lowest level in the Bank’s 325-year history.
In the immediate aftermath of this reduction, banks and building societies withdrew some of their mortgage products.
Among the most common deals to be pulled were tracker mortgages and loans for people borrowing a high percentage of their property’s value.
The number of different deals available has continued to fall in April, dropping from a total of 3,192 mortgage products at the start of the month to 2,548 now.
The good news is that lenders that had pulled products are beginning to launch new deals for both fixed rate and tracker mortgages.
Eleanor Williams, finance expert at Moneyfacts, said: "It’s very positive that we are beginning to see providers return products to their ranges and launch new deals, including some in the higher loan-to-value sectors.
"These changes may be an early indication that lenders have begun to adapt to the exceptional economic and operational changes of recent weeks in order to continue supporting their customers, and that hopefully more providers will be following suit in the days ahead."
How much choice is there if I'm looking for a new mortgage deal?
While the number of deals available has continued to fall since the beginning of April 2020, there are still more than 2,500 different mortgages to choose from.
Choice is widest for people with large equity stakes in their homes or big deposits to put down, with 541 different mortgages on offer for people looking to borrow 60% of their home’s value and 520 for those borrowing 75%.
What if I only have a small deposit or equity stake?
Unfortunately, choice for people looking to borrow a high proportion of their home’s value has been more affected.
The number of deals for people with a 5% deposit has dropped from 162 at the beginning of the month to 55 now.
The situation is slightly better for people with 10% to put down, with 127 different loans available, although this is significantly lower than the 326 deals available on 1 April.
Even so, there are still a variety of different deals for borrowers to choose from, while new offers in this space are being launched all the time. For example, HSBC introduced a new tracker deal for people borrowing 90% of their home’s value last week.
In short, if you need to remortgage but have only a small equity stake in your home, you should not be put off from doing so.
What is happening to mortgage rates?
The good news is that mortgage rates are falling in response to cheaper borrowing costs for banks and building societies themselves.
The average cost of a two-year fixed rate mortgage has fallen from 2.36% on 1 April to 2.13% now, while the cost of a five-year fixed rate deal has dropped from 2.66% to 2.37%.
Rates have fallen across the board, not just for borrowers with large equity stakes in their properties.
In fact, one of the biggest reductions is to the cost of an average five-year fixed rate loan for someone with just a 10% deposit, with this dropping by 0.61% since the beginning of the month.
Is it a good time to remortgage?
Although there are fewer mortgages than before the market was impacted by coronavirus, there continues to be a good choice for borrowers.
It is also expensive for homeowners to sit on their lender’s standard variable rate (SVR), the rate people typically revert to when their existing deal comes to an end.
The average interest rate charged on an SVR is currently 4.61%, compared with an average of 2.13% on a two-year fixed rate deal.
As a result, someone with a £200,000 mortgage would save nearly £3,240 a year by switching from their lender’s SVR to a new deal.
What should I do if I need to extend my mortgage offer?
While mortgage offers are normally valid for three months from when they are made to when borrowers draw down the funds, lenders have agreed to extend this period for an additional three months in light of the current property market conditions.
If you need to extend your mortgage offer because your house move has been delayed due to the current lockdown, you should contact your lender and tell them about your situation.
Coronavirus: how you can still buy and sell your home
Lawyers, developers and estate agents are working hard to keep the cogs turning as efficiently and safely as possible during the coronavirus lockdown.
We may all be following social distancing rules under the coronavirus lockdown but that does not mean your property search or home sale is completely on hold.
"There is a slight silver lining in that cloud that we are starting to see," says Charlie Bryant, CEO of Zoopla. "Number one: people have kept their properties on the market.” The number of homes for sale is currently only one per cent lower today than on March 7.
"Having that stock will be really, really important to enable a bounce back once the market reopens. I wouldn’t go as far as saying it’s a green shoot, but it’s a seed in the ground."
The number of new property sales agreed in the UK has fallen by 70% since the start of the coronavirus restrictions and the government's guidelines to moving home.
But in the second week of lockdown there was a rise in people browsing properties.
When you're stuck in a home you've outgrown, trying to work remotely while entertaining energetic children, that's exactly the time you decide you really need to make plans to move.
"We have in fact seen a slight single digit increase week on week," says Charlie. "And in the lettings space we have seen a 16 per cent week on week increase in lettings browsing levels.
"We tend to find with the lettings market that it is counter cyclical - when people feel it’s not the right time to buy, they turn to lettings.”
Unprecedented times - but temporary
"The property market has not been forced to an immediate halt – we must remember Covid-19 is temporary and we will recover," says Amy Hazelton, senior paralegal at law firm Blake Morgan.
"We may even see the market recover with first-time buyers who realise they need their own space after being locked down with family or flatmates.
"People have extra time to sit and trawl through agents' sites and Zoopla. They may think about a move they have not had the time to consider before and some may even spend the time considering investment opportunities in the market."
Should I keep my home on the market?
It's really not such a bad time to be selling your home. With the majority of people stuck at home without much to do, many would-be house hunters are spending their time browsing for a new home online. So, if your home is already on the market there is no reason to withdraw it.
It's also worth noting that the government has not banned property transactions from going through. Instead, it has said that if the property being bought is empty, the sale can continue as normal.
It is only if the property is currently occupied that it is encouraging people involved in the transaction to agree an alternative date on which to move.
Can estate agents take on new listings?
Their physical offices may be shut but estate agents are still open for business, albeit working remotely from home.
That said, it is difficult for them to take on new properties at the moment, as the current social distancing rules mean they cannot visit your home to take photographs and measurements for the listing details.
But don’t let that put you off if you're thinking of selling your home.
Estate agents will still be able to talk to you by telephone to advise you on how much they may list your property for, subject to a physical viewing once restrictions are lifted, and to give you an idea of the market in your area.
They are also likely to be having similar conversations with potential buyers, so they may be able to line up some interested parties to view your home once the lockdown is over.
What is happening to mortgage rates?
The good news is that mortgage rates are falling in response to cheaper borrowing costs for banks and building societies themselves.
The average cost of a two-year fixed rate mortgage has fallen from 2.36% on 1 April to 2.13% now, while the cost of a five-year fixed rate deal has dropped from 2.66% to 2.37%.
Rates have fallen across the board, not just for borrowers with large equity stakes in their properties.
In fact, one of the biggest reductions is to the cost of an average five-year fixed rate loan for someone with just a 10% deposit, with this dropping by 0.61% since the beginning of the month.
Is it a good time to remortgage?
Although there are fewer mortgages than before the market was impacted by coronavirus, there continues to be a good choice for borrowers.
It is also expensive for homeowners to sit on their lender’s standard variable rate (SVR), the rate people typically revert to when their existing deal comes to an end.
The average interest rate charged on an SVR is currently 4.61%, compared with an average of 2.13% on a two-year fixed rate deal.
As a result, someone with a £200,000 mortgage would save nearly £3,240 a year by switching from their lender’s SVR to a new deal.
Is it a good time to remortgage?
Although there are fewer mortgages than before the market was impacted by coronavirus, there continues to be a good choice for borrowers.
It is also expensive for homeowners to sit on their lender’s standard variable rate (SVR), the rate people typically revert to when their existing deal comes to an end.
The average interest rate charged on an SVR is currently 4.61%, compared with an average of 2.13% on a two-year fixed rate deal.
As a result, someone with a £200,000 mortgage would save nearly £3,240 a year by switching from their lender’s SVR to a new deal.
Can people still view my home?
Assuming your home is already listed with an estate agency, they can continue to market it, but potential buyers won’t be able to view it in person until the current social distancing measures are lifted.
That said, people can still get an excellent sense of what your home is like through doing a virtual tour.
Some estate agents created these tours using 3D cameras to offer a high-definition, 360 degree walk-throughs of their clients’ properties before the lockdown came into force.
Andy Marshall, our chief commercial officer at Zoopla, says: "We have seen an upsurge of 215 per cent in virtual viewings of new-builds.
"While this is partly in response to coronavirus, we anticipate that online and virtual tours are quickly becoming the new normal. Online viewings afford convenience and flexibility."
If your agent was not able to create one for you before social distancing was introduced, you could have a go at creating your own using the video on your mobile phone.
While it may not have the same professional touch as one created by an estate agent, it should still give potential buyers a good sense of how your home looks.
What if someone makes an offer?
If you receive an offer, there is nothing to stop you negotiating and accepting it.
But you do need to be mindful that the selling process is likely to take longer than usual.
The government has advised people to delay exchanging contracts while the current lockdown measures are in place.
Your buyer may also face delays in having a survey done on the property, as surveyors have been told not to carry out non-urgent work.
"Our move will happen - just at a later date"
Katie Beardsworth, 34, from Hull, is in the process of buying a new home in North Tyneside. Katie, who runs a classical music artist and project management company, was hoping to move in late April with her husband Robert and three-year-old son Sam.
"I was looking forward to walks on the beach. It would have been more sustaining than the local park for the 100th time. But the benefit of not moving yet is living in a network of neighbours we've known for eight years.
"We've been on quite a journey buying. At first we wanted to stay in the area but move to a bigger house, but after quite a few houses fell through, we realised we wanted to totally change and live by a beach.
"We have everything ready for exchange, but we won't move forward further until we know we can actually move in. We're in a small chain - a first-time buyer is buying our three-bed terraced and the owner of the four-bed we're buying will be moving to an empty house.
"We've had reassurances that everyone is happy to wait and the estate agents and solicitors, all working remotely, have been great throughout the process. Our survey was done the day before lockdown and we'd signed all the paperwork by post. I've had to answer a few queries by email rather than post, but that's a welcome change. Our mortgage provider has been very helpful, calling to tell us when the mortgage offer will end and that there will be flexibility to extend if we need to.
"Now I'm quite philosophical - it will happen when it happens. But when lockdown first happened, I was upset. I'm a big planner and I'd been planning how I was going to organise new childcare and make new friends so moving home was less disruptive for my son Sam. Now that doesn't feel as important - he's already had a massive transition from nursery to being at home with me all day and I know we'll all be fine.
"I'd say there's no point in stressing about things that you can't control."
The lawyer's view on the timeline of buying and selling during lockdown
Amy Hazelton is senior paralegal in the new homes team at law firm Blake Morgan.
"Depending on the stage in your transaction, going ahead with a purchase may now mean you have to travel along a slightly different route than initially planned.
"In cases where contracts have not yet been exchanged, buyer and seller should try and agree delay clauses to allow for Covid-19 provisions to protect them both.
"You may encounter other blockers along the way towards exchange as a result of local authority closures, search provider delays and getting physical signature and witnessing of documents, due to social distancing and travel restriction guidelines.
"Some of these problems (especially with searches) can be overcome by specialist insurance. Others (such as signature) may need alternative arrangements to be agreed between the buyer and seller.
"If a buyer is between exchange and completion, all parties are still legally bound to proceed to avoid being in breach of contract and having financial penalties imposed.
"Where possible, completions should be delayed in accordance with the UK government guidelines to 'stay indoors' but, for some, completion may be unavoidable. Matters are likely to become more complicated where there is a chain and there are more parties to juggle.
"Lawyers throughout the country are working together in drafting solutions to help the market keep moving and this includes the certainty of exchanges taking place whilst keeping the flexibility to ensure no one is forced to complete against their will.
"Buyers and sellers should stay in regular contact with all parties involved."
What if I want to buy a new home?
If you want to buy a new home, there are still plenty of things you can do to kick-start your search while in lockdown.
You can use the time to browse homes online that estate agents already have on their books, to give you a sense of what is out there, while many properties also have virtual tours you can take.
You can also do research on the areas you're interested in. For example, our site offers a number of tools enabling you to check out the local area, even journey times if you'll be commuting.
Check out mortgage lenders websites too, to get a sense of how much you may be able to borrow, giving you an idea of the price range for your new home.
Estate agents are still working, so even though you can’t visit them in their offices, it is still worth ringing them for a chat about the type of property you're looking for, as they may have someone waiting to list as soon as the restrictions are listed.
If you do find a property that seems perfect, you can put in an offer for it, although as explained above, the conveyancing process is likely to be slower than usual.
What can I do to get my home ready to sell?
One of the key things to do when preparing your home for sale is to have a good tidy up.
Rooms that contain a lot of clutter generally look smaller and darker than ones that are tidy and have clear surfaces, and this can put off potential buyers.
So, spend some of your time while in lockdown going through each room, having a good clear-out and packing away some of the ornaments and personal effects on display.
Also think about whether there is any furniture you could remove from rooms and store in the loft or garage to help make the space look bigger or more appealing.
Can I carry out home improvements during lockdown?
Many DIY stores remain open, although some are asking customers to order what they need online and then pick up their purchases at the store while still complying with the two-metre social distancing guidelines.
As a result, there is nothing stopping you from cracking on with those small DIY jobs you may have been putting off for a while.
Touching up paintwork or regrouting tiles can have a big impact on the overall look of your home.
Bear in mind that you cannot employ professional decorators and builders in your home during lockdown when you are living there, so a it's a great time to try your hand at DIY.
So-called kerb appeal is incredibly important when trying to sell your home, as the outside is the first thing potential buyers will see.
Under the current circumstances some potential buyers may drive by and have a look at your property before they are able to view the inside, and first impressions count.
As a result, put some effort into sprucing up the outside of your home. Whether this involves repainting the front door or tidying up the garden, it is likely to be time well spent.