Buyers are seeking discounts of up to 20 per cent on properties as the housing market reawakens.
Estate agents reported a surge in demand yesterday after ministers lifted a seven-week ban on home moves.
But experts warned of a ‘Mexican standoff’ between buyers and sellers as fears linger over a price crash.
An estimated 450,000 moves have been on hold since the Government effectively froze the property market in late March.
Virtual deal: Laura Wilson, 25 and boyfriend Elliot Horn, 28. The pair had been due to move into a new-build home in Leeds in September until the lockdown halted construction
The pent-up demand sparked a frenzy of activity after Housing Secretary Robert Jenrick said the sector was ‘back in business’.
Estate agents, removal firms and conveyancers are now allowed to open in England and firms said they have been bombarded with enquiries.
Property website Rightmove said online viewings were up 45 per cent yesterday morning, while searches for mortgage deals were up 18 per cent on last week, according to comparison site MoneySuperMarket.
Property group Andrews, which has 48 offices across the south of England, said it received 226 calls from prospective buyers within an hour of opening its lines.
But experts warned that prices are still likely to fall as economic uncertainty causes deals to collapse and buyers seek significant discounts.
Estate agents Knight Frank said it expects UK house prices to drop by 7 per cent by the end of the year and added that prices are already likely to have fallen by around 5 per cent.
Property adviser Henry Pryor said he had four clients who had deals put on hold by the lockdown, all of whom were now seeking 20 per cent off the agreed price, but would likely settle for 5 to 10 per cent.
He added: ‘There is going to be a Mexican standoff and it will be interesting to see who blinks first. Estate agents will try to convince us that it is business as usual, but buyers will have read the reports about the economy and say they are taking a risk.
Selling: Carol Burgess with father Peter Lemon. Ms Burgess, 66, was forced to accept a 10 per cent cut on the sale of her father’s home last month
‘All the deals that were sitting there will have to be renegotiated. Lots will collapse.’ Around 80 per cent of surveyors said buyers and sellers had pulled out of deals in April, according to the Royal Institution of Chartered Surveyors. Lloyds Banking Group has previously said house prices could fall by 10 per cent by the end of the year and 30 per cent over three years. But it said this was a ‘severe scenario’ and it was more likely that prices would fall by 5 per cent by the end of the year.
Yesterday Mr Jenrick told MPs that reopening estate agents was ‘the most radical restarting of an industry’ since lockdown.
He added: ‘In every economic recovery in modern British history the housing market has been key.’
The new-look market will see buyers taking hand sanitisers on viewings, while agents have been urged to use online tours. Owners will be asked to leave the house or stand in the garden during viewings.
Desperate sellers slash prices in battle to sell homes before coronavirus crisis sends prices plummeting by up to 16% – but agents warn deals are continually collapsing amid chaos over viewings
By Mark Duell, Joe Middleton, Sarah Davidson, Shekhar Bhatia and Myra Butterworth for MailOnline and Jason Groves for the Daily Mail
Desperate sellers are dropping the prices of their homes after a glut of properties flooded onto websites today as Britain’s housing market was reopened in a bid to get the country moving again during the lockdown.
Some 2,150 properties have been added to RightMove in England, Wales and Scotland over the past 24 hours – a huge increase on the preceding days – as Robert Jenrick lifted the ban on moves – while many properties are now being reduced in a bid to shift them quickly.
Prices are now dropping, with examples today including a three-bedroom terraced house in Tottenham reduced from £410,000 to £385,000 today, and a one-bedroom flat in Tooting down from £450,000 to £395,000.
At the top end of the market, a two-bedroom flat in Marylebone has been reduced from £5.25million to £4.95million today, while a three-bedroom penthouse in Knightsbridge has fallen from £3million to £2.7million.
Meanwhile six-bedroom detached properties in Bournemouth and Plymouth have been reduced from £825,000 to £725,000 and £550,000 to £500,000 respectively.
The Bank of England has predicted that prices will plummet by 16 per cent this year and surveyors across the UK are reporting thousands of deals falling through since the market shut on March 26 as sellers pull out amid the economic uncertainty.
More than 450,000 buyers and renters have been unable to make progress on their plans to move since March.
Now, house-hunters are now being told to wear face masks and gloves for viewings, while some sellers are refusing to let anyone in over continuing fears over coronavirus.
People who want to sell their home will need to make sure they are out of their property while viewings take place and buyers and sellers should expect to delay moves if someone involved gets Covid-19.
Housing Secretary Mr Jenrick and other Ministers hope today’s reopening of the housing market will be a significant boost to the economy amid the pandemic.
RightMove saw a 45 per cent increase in visits to its website this morning compared with yesterday morning, with its housing market expert Miles Shipside saying: ‘Home movers and estate agents are faced with perhaps the biggest ever change in the way that houses are marketed, viewed and surveyed.’
This six-bedroom detached house in Plymouth has been reduced from £550,000 on March 25 to £500,000 today
This six-bedroom detached house in Bournemouth has been reduced from £825,000 on March 18 to £725,000 today
This four-bedroom house in Lytham St Annes, Lancashire was reduced from £459,000 to £435,000 today
House prices are now being cut, with examples today including a one-bedroom flat in Tooting, South London, down from £450,000 to £395,000
This three-bedroom semi-detached home in Birmingham was reduced from £250,000 on February 24 to £225,000 today
This three-bedroom semi-detached bungalow in Liverpool was reduced from £335,000 on March 13 to £320,000 today
A two-bedroom semi-detached bungalow in Leeds was reduced from £219,950 on February 12 to £209,950 today
At the top end of the market, a two-bedroom flat in Marylebone has been reduced from £5.25million to £4.95million today
A three-bedroom penthouse in this building in London’s Knightsbridge has dropped from £3million to £2.7million today
This three-bedroom terraced house in Tottenham, North London, has been reduced from £410,000 to £385,000 today
‘We pulled out and won’t move now’
James Staunton, 42, with Charles, aged 3
James Staunton, 42, lives with his wife and two children in Farnham, Surrey and decided to pull out of his move as lockdown started.
‘We were set to buy a larger property nearer to the kids’ school, albeit in the same town. But we were worried my earnings might be pruned in the downturn and that my wife’s hours might get cut back.
‘That proved pretty prescient and we’re now glad we didn’t overstretch ourselves. In fact, we used some of the war chest we’d accumulated for the move to pay down 10 per cent of the mortgage on our current property.
‘That’s made the monthly payments much easier to stomach. We’ve pulled out and we’re happy with that decision.’
‘We have been asked to wear masks and gloves’
Alex Hammond, 39 and boss of his own firm Also Communications, has been offered a viewing this Friday.
Alex Hammond, 39
He and his wife are looking to buy an investment property in Hastings.
‘We were sent the details of one we liked the look of on Monday and expressed our interest.
‘Initially they said we were unable to undertake a physical inspection, but the estate agent contacted me last night suggesting a viewing on Friday.
‘We can’t make Friday so are going to view the property on Monday. We have been asked to wear masks and gloves for the viewing.’
Among the properties added in recent hours is a lavish £24.5million four-bedroom apartment at the exclusive Mayfair Park Residences development in London.
Other properties just added in the capital include a £2.8million six-bedroom semi-detached home in Chiswick and a three-bedroom Hampstead flat for £1.9million
Estate agents across Britain have been told they can now reopen immediately, although they will be encouraged to make more use of ‘virtual viewings’ online.
Removal men have also been told they can get back to work as they were issued new guidance on working safely, including wearing masks and gloves.
And, in a move to kick-start the wider housing market, councils will be encouraged to let construction firms extend their working hours until 9pm, six days a week.
This will be in order to allow for the staggering of shifts and greater social distancing. Show homes will also be allowed to reopen.
The package of measures is expected to free up an estimated 450,000 buyers and renters whose moves have been in limbo since the market was shut down in March.
This two-bedroom flat in Brighton has been reduced from £375,000 on February 19 to £350,000 today
A three-bedroom semi-detached house in Leicester has been reduced from £225,000 on March 20 to £220,000 today
A two-bedroom end of terrace in Bodmin, Cornwall, was reduced from £260,000 on November 22, 2019 to £250,000 today
A three-bedroom detached house in Carlisle has been reduced from £350,000 on December 24, 2019 to £325,000 today
This four-bedroom home in Hollywood, Birmingham was reduced from £315,000 in January 2020 to £299,950 today
The UK economy contracted by 2 per cent in the first quarter of 2020 after plunging 5.8 per cent in March
Alistair Elliott, senior partner at Knight Frank, spoke to BBC Radio 4’s Today programme this morning about how estate agents will be able to return to work.
‘I am determined to move ahead with this purchase’
Joanne Robinson,40
Joanne Robinson, 40, is a property lawyer who has been renting in London and has bought a property in Amersham to be closer to her work in Beaconsfield.
Before the housing market froze she had a sale agreed but had not exchanged contracts.
However, she managed to exchange on April 28 and now has a moving date set for May 29.
She said: ‘Despite all this disruption I am absolutely determined to move ahead with this purchase and push things through.
‘Moving from central London to Amersham is crucial for my work and the home I have bought is absolutely perfect for my needs now. Keeping in close dialogue with the current owner is helping to keep things alive and kicking.’
She has also successful secured a removal firm and says it will be a relief once she is in new home.
The home was originally marketed at £260,000, then reduced to £250,000 in December – and went for £247,000 in February.
The seller then agreed a further £2,000 reduction because her tenant did not vacate once notice has been served due to Covid-19.
Ms Robinson said: ‘That caused me some logistical additional cost which she agreed to halve with me, so not really reflective of market confidence.
‘I am a property lawyer and have been working throughout the pandemic. There have been very few price re-negotiations, I would say less than 2 per cent of my pipeline, and they have been more cantered around people’s own personal perception of risk, such as how they feel they ‘might’ be impacted post lockdown.’
He said: ‘Well eight weeks of lockdown has taught us a great deal, the most important lesson of all is that we can’t sell homes or rent them whilst in these circumstances.
‘Therefore lifting the ban on viewings and valuations for residential is a major first step and our customers are now able to visit our branches for renting or buying property whilst importantly respecting the social distancing measures.
‘We are implementing firm wide plans which have been developed over the period of lockdown to adapt to all of our premises, keep them clean, keep them safe. To ensure that safety of our teams and our clients are first and foremost protected.
‘And that being the case we believe the public will have confidence to reengage with the housing market and the enormous shift that has occurred in the market grinding to a halt will hopefully quite quickly reverse.’
Asked how it will work, he added: ‘We are hoping our teams will be able to visit premises. We will give those people whose homes we are visiting clear guidance as to what we feel they should do. It would be better if they weren’t in the property.
‘If they feel they need to be in the property then social distancing will be respected at all times.
‘Similarly for those potential buyers and renters we will be giving them guidance into the protocols that will need to be in place to ensure everybody is kept safe.
‘Noting first and foremost that the government guidance will be followed every step of the way in respect of social distancing.’
He added that estate agents will have to ask someone if they have had coronavirus or symptoms of it, saying: ‘We simply have to ask the question.
‘It will be part of our policy, indeed it already is part of our policy that anyone who contacts us and requires any contact whatsoever.
‘It will be necessary for them to advise us of any symptoms they may have and if there are symptoms we will not be able to progress at that moment, until they have completed the appropriate period of isolation.’
Property surveyor Steve Nygate, who cycled to work on the Isle of Dogs from his home in Hackney today, told MailOnline he remained unclear about how the easing of lockdown would be implemented in the workplace.
He said: ‘It is difficult though as we are in unchartered territory each day as regards to coronavirus. I went onto the government’s website and then read that people are still not allowed into other households.
A three-bedroom semi-detached house in Wanstead, East London, has gone on the market in the past 24 hours for £800,000 as a glut of homes are rushed onto property websites
A two-bedroom terraced house in Abbey Wood, South East London, has also gone up in the last 24 hours for £350,000 as the Government reopened the property market during the lockdown
A three-bedroom end of terrace in Grove Park, South East London, has gone up in the past 24 hours for £475,000
Among the properties added in the past 24 hours to RightMove is a lavish £24.5million four-bedroom apartment at the exclusive Mayfair Park Residences development in London
Another property just added is a £2.8million six-bedroom semi-detached home in Chiswick
A three-bedroom flat in Hampstead, North West London, has just gone up for £1.9million
A 40% share in a one-bedroom apartment in Queensbury, North London, is on for £132,000
‘Then I read that estate agents can re-open with viewings allowed and I am very confused. I don’t know how that is going to work as far as carrying out surveys if there are still people in the properties and how the agents will resume viewings’.
Mr Jenrick told the Mail: ‘The housing market is one of the most important sectors of the economy and the ability to move home is also important to people’s lives.
‘It has been totally frozen, but we have been working hard on a comprehensive plan to get it moving safely again and we are now in a position to enable a complete reopening of the housing market.’
The move came as Chancellor Rishi Sunak admitted Britain is already in recession, with new GDP today showing that the economy started to shrink in the first three months of this year, even before the full impact of the lockdown hit.
And there was a further blow as Health Secretary Matt Hancock warned that people were unlikely to be able to take a foreign holiday this summer.
Ministers effectively shut down the housing market on March 26, with a change in the law that banned move except where ‘reasonably necessary’.
Politicians said that, other than in exceptional circumstances, only those whose moves were already underway could complete their moves.
Those who had already exchanged contracts were told to delay their completion date. And renters were told to stay put even if their tenancy agreement had run out.
The British Association of Removers urged removal firms to cancel or postpone ‘any move that had not yet started’. The clampdown saw the market close overnight.
But, with ministers now anxious to get the economy moving again, and construction firms warning there is no point building houses no-one can buy, the ban is now over.
Estate agents are asked to see clients by appointment rather than allowing people to walk in off the street and to ensure social distancing measures are in place.
They will be encouraged to make use of ‘virtual viewings’ where possible, although physical viewings will also be allowed.
Owners will be asked to leave the house or stand in the garden while viewings take place, and clients will be asked to avoid touching surfaces.
‘I want to move to be near my children and grandson’
Poppy Low, 72
Poppy Low, 72 and retired, lives in Harrogate, North Yorkshire.
With one son living in London with her grandson and another based in Chipping Norton in Oxfordshire, she’s been hoping to move for the past six months so she can be nearer her family. Lockdown stopped her from putting her home on the market earlier this year.
She said: ‘I’m feeling a lot more upbeat about things now that the government has said we can move, although I am still a bit worried about house prices.
‘I’ve been on Rightmove practically every day during lockdown but there’s no new properties and also – how am I meant to know whether the prices they were asking for before the lockdown are still fair?
‘It’s really hard to know what to do.’
Poppy is hoping to come down to stay for a week with her son Sean and his partner Tim in Chipping Norton so she can view properties.
‘I really want to get cracking with this move – I want to be nearer my family in the south of England and spend valuable time with my grandson. But I must say, it’s still a bit confusing. Especially with my age – I don’t know whether I should still be self-isolating?’
Poppy has already been in touch with her estate agent and has been told she can do virtual viewings of properties she might want to buy.
‘It’s something, but it’s not really enough if I’m going to buy a house – I really need to have been round it.’
Mr Jenrick said ministers recognised the necessity of restarting the housing market for both economic and social reasons, adding: ‘Thousands of people have been stuck in limbo. Ow they will be able to get on with their lives.
‘Virtually no house moves have taken place in the last two months and people do need to move for all sorts of reasons such as work, being near to elderly relatives or because of changes like divorce.’
The Prime Minister this week urged the construction industry to get to work.
But industry leaders warned ministers that the housebuilding sector would not reopen while the housing market remained shut.
A new ‘Safe Working Charter’ has now been agreed with the industry to help get builders back to work.
And councils will be asked to consider requests to operate building sites until 9pm, Monday to Saturday to allow for staggered shifts.
Town halls will have to show ‘compelling reasons’ to refuse requests. But construction firms will be told to carry out noisy activities during ‘normal working hours’.
However the move to reopen the housing market has infuriated MailOnline columnist host Piers Morgan, who said on his ITV programme Good Morning Britain today: ‘So much of it seems nonsensical.
‘I can go and book 50 different appointments today to see 50 houses full of random families. If I wanted to buy a house quickly, technically I could go and do this.
‘I could spend all day going round 50 different homes, with different estate agents and 50 different families maintaining social distance in the houses.
‘And yet what I can’t do, if my parents are selling theirs, I can’t go around their house because that is against the law and I will be fined.’
Also today, two of Britain’s biggest housebuilders announced plans to remobilise.
Crest Nicholson said it would restart construction on its sites from next Monday, after similar moves from its rivals to do the same.
Housing Secretary Robert Jenrick (pictured at No10 on May 6) said the market is now reopen
It will give the company enough time to properly train its staff and make adjustments to safety on the sites, which have been closed since the start of April.
Taylor Wimpey, which has already restarted construction, said its show homes and sales centres would start opening again from next Friday.
Customers will be able to pre-book appointments, the housebuilder said. It said that construction has already restarted on a majority of its sites in England and Wales.
Around £82 billion of transactions are thought to be on hold in the property market.
Taylor Wimpey said that its sales rates had remained stable since it announced plans to restart construction three weeks ago. There have been signs of increased activity in the last week.
It sold 408 homes during the lockdown period, and has an order book worth around £2.7 billion.
Most of its furloughed sales staff will be recalled by May 18, with the majority of other furloughed workers back before the end of the month.
Among those on Twitter commenting on the housing market’s return was one man who said: ‘I put a flat on the market to raise some funds – £190,000, just about to exchange and lockdown came in.
‘Now the guy is offering £175,000 and estate agent says take it as who knows what’s moving on the market for next six to 12 months.’
Another wrote: ‘Other half has booked us in for house viewings already. I’m not too comfortable about it, but will be as safe as poss.
‘I think we’re viewing empties anyway. Estate agent has asked us to wear face masks.’
And a third said: ‘I have my house on the market and naturally no viewings allowed. However I see the housing market it open for business again.
‘As much as I want to get on with it I won’t. I cannot see my Daughter and Grandson together yet I can let strangers into my house. This makes no sense.’
Others joked that they would put their house on the market just so their children or grandchildren could come and visit.
One said: ‘Problem solved. If my mum lists her house for sale all her children and grandchildren can book a viewing and go and see her.’
Lucy Pendleton, property expert at estate agents James Pendleton, said: ‘It’s a brave new world but the viewings must go on. We’ve got all the necessary PPE ready to go, and buyers and sellers keen to start viewing straight away. We’re just waiting to hear what the government’s detailed guidelines are.
‘Agents have been desperate to get back to business, and an explicit mention for the sector in the government’s lockdown strategy on Monday was noticeable by its absence.
‘You could almost hear the collective sigh of relief when news that agents could get back to work trickled out late yesterday afternoon.
‘It’s fantastic news that agents aren’t going to have to wait until July to start showing properties properly again, as we will find out sooner rather than later whether some of the more dire predictions for the housing market will come true. In London, we have seen absolutely no sign of the conditions that would normally precipitate a marked fall in prices. We expect a similar picture to be playing out across the country.
‘Lack of supply exacerbated by sellers delaying their moves until after the pandemic has eased significantly is going to put a floor under prices, much like it did during the Brexit negotiations. Borrowing rates are extremely low too and that’s going to boost buying power.’
And David Westgate, chief executive at Andrews Property Group, said: ‘Moving home is a highly emotive process and the reignition of the property market on Wednesday will help boost the nation’s spirits.
‘Adherence to social distancing and the highest safety standards will be absolutely paramount and all precautions will be taken to protect people viewing property, including through the use of PPE equipment where appropriate.
‘There are differing views on how the property market will shape up as the lockdown is gradually eased but we expect to see significant activity moving forward with a huge initial surge in pent-up demand.’
Meanwhile Andrew Montlake, managing director at mortgage broker Coreco, said: ‘Demand is certainly still there. We have received a lot more enquiries in May, with many people now looking to move to more rural areas given the perceived reduced risk from future peaks and pandemics.
‘Clearly it’s essential that firms do not rush their staff back before they have the requisite safety measures in place, although all the agents we speak to are adhering to the very highest standards.
‘It’s vital that all those working in the property industry, as well as buyers and sellers, landlords and tenants, are kept as safe as possible.
‘This is a chance for everyone in the property market to show their professionalism and lead from the front.’