Government urges movers to delay transactions

On 26 March, the government issued guidance for people in the process of buying and selling properties, elaborating further on measures previously announced by the housing minister.

It says there is ‘no need to pull out of transactions’, but that people should only continue with their purchases now if they’re moving into a vacant property.

If the property is currently occupied, all parties are encouraged to ‘do all they can to amicably agree alternative dates to move’ at a time when it’s likely the current stay-at-home measures will be relaxed.

It says there is an exemption for critical home moves in the event where a new move date can’t be agreed. In these instances, people must observe social distancing rules. 

If anyone involved in the move is self-isolating, the government says all parties should prioritise reaching an amicable agreement to change the move date.

Find out more: the government’s full advice for home movers

Can you change your contract?

We spoke to the buying agent Henry Pryor for his advice on how buyers and sellers should proceed.

He told Which?: ‘If you’ve already exchanged contracts, you should contact the other party and your conveyancer to discuss the implications of what you have both signed up to. 

‘Although you have legally committed to complete and would be at risk of breaking your contract, it’s quite possible to vary the contract if both parties agree to do so.’

Mr Pryor says one option could be for the two parties to agree to add a clause to delay the move by a set amount of time, and that in the interests of finding a practical solution it’s important that both sides exhibit good faith and common sense.

Lenders to allow three-month mortgage offer extension

On 26 March, UK Finance announced that mortgage lenders would allow home movers who have already exchanged contracts to extend their mortgage offers for three months, enabling them to move home at a later date.

The trade body said that the initiative recognises the ‘stress and uncertainty’ caused by the coronavirus outbreak, and that all banks and building societies would be offering the extension.

It also confirmed that if the borrower’s financial circumstances change significantly during the three-month period, the lender will work with them to find a suitable outcome.

Will conveyancers, surveyors and removals firms be operating?

Conveyancers

The government says that conveyancers should ‘continue to support the sales of unoccupied properties as far as possible’ and advise clients who are ready to move not to exchange contracts until they’ve made provisions relating to the risks of the coronavirus.

It says that conveyancers should prioritise movers who have symptoms or are self-isolating and ‘do all they can to help a new date to be agreed’.

Surveyors

Surveyors shouldn’t carry out non-urgent surveys in occupied homes, and should conduct no inspections where a person is self-isolating.

Removals firms

Earlier this week, the British Association of Removers (BAR), told Which? it had issued ‘strong recommendations’ to its members to complete any moves that are already underway and cancel or suspend any that haven’t yet commenced.

It did stress, however, that the final decision on whether to proceed sits with the individual companies. 

On 26 March, the government confirmed that firms should honour existing commitments where it’s clear that moves can be done safely and the date can’t reasonably be moved, but that only a ‘small number of moves’ should need to go ahead in the current situation.

Will estate agents still be open?

Along with other shops deemed ‘non-essential’ under the new rules, high street estate agents have closed their doors. 

The industry body NAEA Propertymark says that it has advised agents to work from home until told otherwise by the government.

The government says that estate agents should work with clients and their agents to broker new dates for moves due to complete on occupied properties.

It also stipulates that agents should advise clients to be patient and not exchange contracts unless they have explicit terms to ‘manage the timing risks presented by the virus’.

Selling your home

If you home isn’t yet on the market, the government says you can still speak to estate agents on the phone, but they may not be able to safely begin marketing the property.

If your property is on the market, you can continue to advertise it but not conduct any in-person viewings. You’re still welcome to accept offers, but the selling process is likely to take longer.

The government says people thinking about selling could instead use this time to gather together information they will need to provide to potential purchasers.

Which? advice on the coronavirus

Experts from across Which? have been compiling the advice you need to stay safe and to make sure you’re not left out of pocket.

You can keep up to date on our latest coverage on our coronavirus advice hub.