The first few days of days of the second national lockdown in England has seen the number of viewings by prospective home buyers fall by 15 per cent, reports Knight Frank.

This percentage relates to four days last week, Monday to Thursday, compared to the previous week. However, the number of valuation appraisals was 38% higher over the same period.

Exchanges over the week were 11 per cent higher, continuing the trend from last month where exchanges outside of London reached an all-time high in the second week of October.

The number of exchanges in the prime London market reached a five-year high last month but most exchanges still relate to deals that pre-date the first lockdown.

Knight Frank has noted a mixed reaction from estate agents on business levels. A number of agents became quieter after the lockdown was announced, partly due to initial confusion around whether the property market was staying open this time round.

Some agents said buyers and sellers are taking extra precautions and delaying decisions. But other agents have not noticed a major change in the first week and some have reported an uptick in business.

Based on the anecdotal evidence gathered so far, Knight Frank has made three observations:

• The most in-demand properties have continued to attract interest over the last week, despite the lockdown. For a good property in a popular location, buyers tend to look through short-term uncertainty. This is typically true in the residential market irrespective of external events.
• The trend for more space, which began during the first lockdown, has accelerated. Knight Frank head of lettings for Belsize Park Craig Walters says. “Three tenants all called to serve notice on Friday and when I asked why, they all said they needed more space to work from home.”
• Momentum appears to be holding stronger for transactions already underway. In other words, second and third viewings are less likely to be postponed than first viewings.

Knight Frank head of UK residential research Tom Bill comments: “The timing of the lockdown is somewhat ironic because it comes as many are warning that parts of the conveyancing system are struggling to cope with the current volume of transactions.

“That fact is unlikely to change and some parts of the system may come under more strain during this second lockdown.”