It’s very difficult to predict what the market is going to do in the next six months purely because no one has ever been in this position before. The lockdown has so far caused little downward movement in prices with the average house price index being just 0.2% lower in April. We had a tremendous start to the year with business in January, February and March up 11% up on the same time last year. All was looking rosy until...COVID 19 hit our shores.
However, our rental teams have been “full-on” dealing with the day to day running of our busy rental management business with new tenants taking houses, mainly having seen them online and via remote videos. We’ve quickly adapted to this changing environment and have had to be creative to encourage buyers and renters to be active in this market.
Lending is cheap for the big banks and building societies and there are some cracking deals to be had with low-interest rates and low deposits. This stimulation could be helped with a right to buy extension and perhaps a stamp duty holiday - we’ll see what incentives the Government can come up within the next few months as they are undoubtedly going to want to support the housing market as much as possible. If you are looking to remortgage, now may be a good time to change.
We’re pleased that our cancellation rate has remained low, with most buyers opting to wait until the virus plays itself out and solicitors start to get back to work. We’re certainly very optimistic about the market and surprised about the level of new enquiries we’re receiving both from the internet and over the phone. Unlike some agents, we’ve kept staff working from home to deal with these enquiries and to progress the sales that are proceeding.
Everyone has done so well in adhering to the lockdown rules and it would be a shame to see all that effort wasted in releasing the restrictions too soon. We are still likely to see social distancing and higher hygiene levels well into the future, but this is a small price to pay when your life is at risk. Remember, stay safe, stay home and we look forward to seeing you soon.
Mike Ellis
mike@elliswinters.co.uk
