Buyers and sellers foresee the property market remaining frozen for around five months.
According to a nationally representative survey carried out by Trussle, almost half (49 per cent) of buyers had suspended actively looking for a property prior to social distancing measures being introduced.
Whilst only a fifth of buyers pulled their homes from the market before lockdown measures intensified, many have decided to do so now the government has advised property stakeholders to delay sales until a time after the UK has reached peak levels.
On average, buyers and sellers believe market activity will not be able to resume until the end of August.
In the near-term, homeowners are attempting to take advantage of favourable interest rates by shopping around for remortgage options. 16 per cent of owners are looking to remortgage in order to cut mortgage payments.
Trussle claim that this could be an important move for many owners with proactive property owners avoiding lapsing onto their lender’s Standard Variable Rate (SVR) likely to save around £344 per month.
Ian Larkin, CEO of Trussle comments:
“The coronavirus pandemic has not only had a huge impact on the economy, but also on everyday life in the UK.
“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.
“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 deals.
“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.”
