A survey looking at consumer sentiment suggests that buyers and sellers are still looking to renew their interest as soon as restrictions are lifted.
According to Reallymoving, 75 per cent of property stakeholders in the early stages of planning to move have indicated they will continue to resume the process as soon as they are able to.
Furthermore, almost a fifth of respondents (18 per cent) hope to have completed a home move by the end of the year.
Two thirds (62 per cent) of home buyers and sellers are using the lockdown time to proactively ensure they are prepared to hit the ground running once the market is open again.
A third (29 per cent) have delayed their home hove until restrictions are lifted and 6 per cent are no longer willing or unable to proceed during social distancing measures and 3 per cent have seen their transaction and chain collapse.
Optimistically for the future of the property sector, only 7 per cent of those looking to purchase a property this year have permanently scrapped their plans in 2020 with many worried about the longer term impact of social distancing.
Of those making the decision to cancel their home move, a quarter (26 per cent) are concerned that house prices will fall and therefore buying at the moment could place them in negative equity. One respondent commented ‘We’re in our mid 20s and probably wouldn’t have stayed in the property long enough to get over the negative equity of the originally agreed price.’
16 per cent of prospective buyers have lost confidence in the fragile economy with the same number worried about their long-term job security. 6 per cent of those who were in a position to gain mortgage approval no longer feel as though their deposit is enough to be eligible for the declining pool of available mortgage products.
Rob Houghton, CEO of Reallymoving, said:
“Home movers at all stages of the process currently remain determined to press ahead at the earliest opportunity, suggesting we could see a quick recovery in housing market activity when the current restrictions on movement end.
“Before the Coronavirus crisis hit, we were experiencing the strongest spring market for several years and this research suggests that demand has not yet melted away. But considering the main concern for movers is falling house prices, picking up the pieces of an existing move may require a renegotiation of the price along the chain and for some parties, particularly those who have had their incomes reduced, that move could become unviable.
“Until activity resumes it will be difficult to predict the full impact on volumes and prices, but it’s encouraging to hear the determination of buyers and sellers to stick with their plans and progress their move as soon as possible. For now, the most important thing is that people follow the Government’s advice to stay at home and keep removers, homeowners and tenants safe.”
