PLEASE HELP - Has Covid-19 affected the property market?

61
Posted 30th Mar
Hi guys & girls,

I am in the process of buying a flat and have been since the start of February. Everything is slightly delayed because of this corona virus.

I love the flat and want to purchase to live. I will be living alone and don’t have many friends or family to talk to about this situation that know about the property market.

My question is has this corona virus affected the market for properties in terms of price or Atleast my flat I am looking at, as I don’t want to pay more for it if i can get it cheaper or if the price will reduce greatly.

The flat is in Bournemouth, 1 bed and purchase price is 120k. (Thought this might help you as I know it varies from area.)

I’m really worried because I have no one to talk to and don’t know what to do.

I’ve contacted my solicitor and he said he doesnt get involved with prices negotiating as he mentioned he does not really know the market he just deals with the paperwork.

Mortgage advisor mentioned to just stick with it, but I don’t know if he may be saying this just to get his commission? I feel I can’t trust anyone.

I called the estate agency to get an understanding of the market and see if I could re offer. As it is my first purchase I didn’t really know what to say and the manager of the estate agent said the seller may pull out if you try renegotiate with the current climate. I didn’t want to risk it so I didn’t re offer. The estate agency mentioned it’s been business as normal and mentioned they have not seen a decline in property just yet.

I don’t want to lose this flat as you can imagine I’ve already pictured myself living there and it’s been recently refurbished making it easier for me to move in.

If anyone can please give me help or advise. Or even where to go get advised Id highly appreciate it.

Thank you.
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akash40230/03/2020 00:27

... Can you move and live with potentially no internet? No new …... Can you move and live with potentially no internet? No new installations in current climate


Seriously? The cost of a £10/m unlim data no-contract SIM using a battered £10 Android smartphone hotspot (optional £15 dual wifi gigabit router) is an excuse not to buy a property?
Meanwhile, back to reality...
Stall. Then get a new valuation and a new mortgage offer as I suspect there’s savings to be had on both.
We all want to get a good deal don’t we; paying less than market value - and that’s the reason for this site!
Any market is driven by supply and demand. With property, what affects this is simply the number of properties available vs the number of potential buyers. Buyers affordability is related to borrowing; if they can get a mortgage and how much.
We are in uncertain times with covid 19, which has hit the economy hard. People’s incomes are being affected and some jobs are being lost. However there is a shortage of properties available nationally, and interest rates are very low.
Property will always have potential to go up and down, driven by market forces and economic circumstances.
This things a killer; there will be related deceased estates. It’s also stopping people’s plans for moving. Does this mean supply outways demand, resulting in pressure to reduce house prices for sale?
If people have to sell, they will, but otherwise they will ride it out if they are able to. This is where the estate agents coming from. He has a vested interest to make the deal happen, but property isn’t that volatile and there are options available (eg renting it out until recovery)

The question you have to ask yourself comes down to risk:
Would you prepared to lose this property to try and get a better price?
It might be that if the vendors circumstance means he’s desperate to sell, you’d be in with a chance. However,
you’re emotionally invested - you’ve said ‘you love it’.
You need also to consider your current living costs overtime in the event you did try to renegotiate and lose the sale. We’re probably talking 6 months+ worth and any costs outlaid to date.
For what it’s worth, I would say stick with it. You were happy with the price to pay when you offered. It can be nervy buying property; amount of money involved, protracted transaction, emotional investment. Hold fast and once you get through this, ignore what it is worth and enjoy it until you need to move again. Too many people get fixated on what their properties are worth. Its irrelevant until time to sell, and only worth what someone is prepared to pay for it. Once you’re in, don’t over analyse or feel like you should have renegotiated. That would be pure fantasy. You made the best decision you could at the time, with the information that was presently available.
Good luck - HTH.
61 Comments
As far as I’m aware. The issues are with getting a mortgage / govt not asking anyone to move . Have a chat with your lender? See what your options are. Can you move and live with potentially no internet? No new installations in current climate
I don’t think the market will be affected at this point. Maybe in a few months time...
I work for an estate agent and own a portfolio of properties myself. All I could suggest at the moment is the market is very unsure, I suspect values may increase or decrease but can’t be for certain until the pandemic is over and we’re out of lock down. If your really after it maybe purchase at asking or make a close offer or maybe just wait for a few weeks as I doubt very many people are buying properties due to crisis at the moment! Hope this helps a little!
My niece is in the process of purchasing and was due to sign next week.

Where she was buying had a queue of people wanting and next phase being signed up for

It now has 11 properties available in the current phase previously not available.

A lot of people are already struggling, The government is pumping a lot of cash in to stop a complete economic failure. It is unavoidable that there is a down turn coming (how long and how hard is anyone's guess).

I suspect my niece (property is new from a developer) to be requesting a revaluation after lockdown and would be surprised if she would not be in a position of getting a discount before proceeding.
Edited by: "Bertz99" 30th Mar
The citizens advise bureau would be who I would normally call but not sure if they are still running what with the virus and all. I thought that a stop had been put on all property sales at the moment? If I was you I wouldn’t risk loosing the place if you love it as much as you say, you have to consider that prices can go up as well as down and if you intend on spending many years there it won’t matter if the value drops a bit as it will surely increase again.

According to this article prices are unlikely to change, hope it helps. which.co.uk/new…es/
Thank you for the quick responses. I think I will just stick with it. I love the flat and I do want it.

It’s just a case of do I delay things or move in ASAP?
Stall. Then get a new valuation and a new mortgage offer as I suspect there’s savings to be had on both.
Stick with it, you have your heart set on it. In the long term it's going to be a good investment & besides the idea you have set your heart on is not an investment it's going to be your home.
Stop think & just enjoy your first property
Yea. People can't go view houses at the moment, so people aren't buying houses. Hold out, chances are it's still gonna be available when things pick up again.
Some financial experts are saying 30-60% reduction when it is over. I think that is a bit extreme but a hard knock is certainly coming. If making an offer now I certainly would be offering 20% under asking price as a starting point.
Willy_Wonka30/03/2020 01:43

Some financial experts are saying 30-60% reduction when it is over. I …Some financial experts are saying 30-60% reduction when it is over. I think that is a bit extreme but a hard knock is certainly coming. If making an offer now I certainly would be offering 20% under asking price as a starting point.


Wow, is there any links to sources?
seckinboy30/03/2020 01:52

Wow, is there any links to sources?



My mistake. Actual house sales could be down up to 60% Zoopla.

Actual house prices were down 1.2% in the last recorded month. So if the trend continues its 14.5% down this year. However, the last recorded by the land registry was jan & things have got worse since then.
Sometimes in life the best thing to do is nothing.

No one knows what is going to happen tomorrow, let alone what will happen with the short term, long term property market. In my opinion it's going to be 6 months before we can start returning to the 'normality' of life as we know it.

My advise would be to just sit tight and watch this space. You're not moving anywhere at the moment, and there is very little chance of the buyer deciding that you're not playing ball.

I personally would be concentrating on staying safe
Edited by: "OllieSt" 30th Mar
My advise don’t buy a flat, leasehold is a nightmare.
Edited by: "Wadda" 30th Mar
If the flats in a chain, just getting removal men for everybody in the chain will be problematic, then there's signing things at.rhe solicitors (are those 2 jobs vital?)
Can you pay the mortgage with corvid lockdown lasting 6 months?
See if you can find out if there's a chain
esar30/03/2020 02:36

If the flats in a chain, just getting removal men for everybody in the …If the flats in a chain, just getting removal men for everybody in the chain will be problematic, then there's signing things at.rhe solicitors (are those 2 jobs vital?)Can you pay the mortgage with corvid lockdown lasting 6 months?See if you can find out if there's a chain


No chain, vacant property
Wadda30/03/2020 02:31

My advise don’t buy a flat, leasehold is a nightmare.


Why do you say that?
seckinboy30/03/2020 02:51

No chain, vacant property


Sit tight, no one can view the property. The seller will be only too happy that they have a sale and they are in no position to play hard ball.

You might get pressurised into exchanging contracts with a prolonged completion date, but I would just refuse to do that, and the vast majority of flats are sold on leasehold basis. Is it a purpose built property or a conversion?
akash40230/03/2020 00:27

... Can you move and live with potentially no internet? No new …... Can you move and live with potentially no internet? No new installations in current climate


Seriously? The cost of a £10/m unlim data no-contract SIM using a battered £10 Android smartphone hotspot (optional £15 dual wifi gigabit router) is an excuse not to buy a property?
Meanwhile, back to reality...
We all want to get a good deal don’t we; paying less than market value - and that’s the reason for this site!
Any market is driven by supply and demand. With property, what affects this is simply the number of properties available vs the number of potential buyers. Buyers affordability is related to borrowing; if they can get a mortgage and how much.
We are in uncertain times with covid 19, which has hit the economy hard. People’s incomes are being affected and some jobs are being lost. However there is a shortage of properties available nationally, and interest rates are very low.
Property will always have potential to go up and down, driven by market forces and economic circumstances.
This things a killer; there will be related deceased estates. It’s also stopping people’s plans for moving. Does this mean supply outways demand, resulting in pressure to reduce house prices for sale?
If people have to sell, they will, but otherwise they will ride it out if they are able to. This is where the estate agents coming from. He has a vested interest to make the deal happen, but property isn’t that volatile and there are options available (eg renting it out until recovery)

The question you have to ask yourself comes down to risk:
Would you prepared to lose this property to try and get a better price?
It might be that if the vendors circumstance means he’s desperate to sell, you’d be in with a chance. However,
you’re emotionally invested - you’ve said ‘you love it’.
You need also to consider your current living costs overtime in the event you did try to renegotiate and lose the sale. We’re probably talking 6 months+ worth and any costs outlaid to date.
For what it’s worth, I would say stick with it. You were happy with the price to pay when you offered. It can be nervy buying property; amount of money involved, protracted transaction, emotional investment. Hold fast and once you get through this, ignore what it is worth and enjoy it until you need to move again. Too many people get fixated on what their properties are worth. Its irrelevant until time to sell, and only worth what someone is prepared to pay for it. Once you’re in, don’t over analyse or feel like you should have renegotiated. That would be pure fantasy. You made the best decision you could at the time, with the information that was presently available.
Good luck - HTH.
I would offer a lower price..
Prices will go down dont see many people wanting or buying property now, even renting
Viewings arent allowed

No ones going to get full price anymore bur idk does the property match market value?
Point is you can easily get the property at £120k (seems a bit steep for a flat)
Its just you just may lost money or someone else could stupidly buy the property and thry lose money
Likely youll lose money if you pay full, basically you could be at risk of losing the property but youll get a better pric
Iff you're buying this is good since lower prices are coming
If selling youll struggle and going to be losing a lot

Never pay full anyway
Edited by: "Norseg" 30th Mar
Well, have a read through this hoa.org.uk/adv…it/ it happens often, and I bet many people in your position would be doing it given the current state of affairs.

It's not nice but it's legal. Remember, people would do it to you if it meant they could save money.


Personally, thankfully I'm not in your position so I don't have to decide whether I would do this or not. It's a hard choice to make. Be a good person, or do something to potentially save loads of money.
No physical property valuations are being carried out at the moment, unless you’re beyond the point of valuation or your mortgage (if so required) lender cannot action an electronic valuation (subject to their own criteria) you are going to find it very difficult to progress a purchase application - or a remortgage application for that matter. Conveyancing is also largely at a complete standstill.
joeydeacon30/03/2020 07:14

No physical property valuations are being carried out at the moment, …No physical property valuations are being carried out at the moment, unless you’re beyond the point of valuation or your mortgage (if so required) lender cannot action an electronic valuation (subject to their own criteria) you are going to find it very difficult to progress a purchase application - or a remortgage application for that matter. Conveyancing is also largely at a complete standstill.


All my conveyancing was 100% electronic.
Buy now only if you see yourself keeping it for at least 5 years and you have income security to pay the mortgage. A recession is more or less assured, it is only a question of how deep and how long.
Government advice on home moving during the coronavirus (COVID-19) outbreak
gov.uk/gui…eak
Edited by: "harrythefish" 30th Mar
Willy_Wonka30/03/2020 02:04

My mistake. Actual house sales could be down up to 60% Zoopla. Actual …My mistake. Actual house sales could be down up to 60% Zoopla. Actual house prices were down 1.2% in the last recorded month. So if the trend continues its 14.5% down this year. However, the last recorded by the land registry was jan & things have got worse since then.


Nationwide building society January nationwide.co.uk/abo…nes

  • Annual house price growth edged up to 1.9%
  • 0.5% rise month-on-month, after taking account of seasonal factors
We’re in the process of buying our dream home... we accepted an asking price offer on our house in Feb and have got £22k off the house that we’re buying as it’s a deceased estate. The chap buying ours is an investor living in Australia. We were wondering about renegotiating the price but have decided that we’ll only do it if our buyer tries to change the price first ... if he asks for 10% off, we’ll then ask for 10% off the new house. If he doesn’t, we’re still happy with the price that we’re committed to so we’ll roll with it! It’s so frustrating, we’re so close to exchanging contracts ... I’ve already been shopping for chandeliers, wallpaper and cushions! For us though, any delay is a good thing as it’s cheaper in our current house so we’ll have a lot more money in the bank by the time we move, plus our existing debts will be cleared!
chocci30/03/2020 08:01

Nationwide building society January …Nationwide building society January https://www.nationwide.co.uk/about/house-price-index/headlinesAnnual house price growth edged up to 1.9%0.5% rise month-on-month, after taking account of seasonal factors


Frankly, past data means nothing now given that we are facing a very unique situation.
bozo00730/03/2020 10:27

Frankly, past data means nothing now given that we are facing a very …Frankly, past data means nothing now given that we are facing a very unique situation.


Indeed. I just think the market will stagnate until its over but its anyone's guess really. I certainly wouldnt put off a £120K purchase of a home thats nearing completion
at what stage in the process are you at?
Pure speculation here, but many buyers are pausing to wait it out. Once it's all over there might be an oversupply of buyers, which tends to push the prices up. Of course, many have lost their jobs, so their plans are put on hold, which will have the opposite effect. Recession and/or large tax rises to come which tends to supress the market also. My guess is a short rise in prices followed by a longer reduction.
shelliebish30/03/2020 08:04

We’re in the process of buying our dream home... we accepted an asking p …We’re in the process of buying our dream home... we accepted an asking price offer on our house in Feb and have got £22k off the house that we’re buying as it’s a deceased estate. The chap buying ours is an investor living in Australia. We were wondering about renegotiating the price but have decided that we’ll only do it if our buyer tries to change the price first ... if he asks for 10% off, we’ll then ask for 10% off the new house. If he doesn’t, we’re still happy with the price that we’re committed to so we’ll roll with it! It’s so frustrating, we’re so close to exchanging contracts ... I’ve already been shopping for chandeliers, wallpaper and cushions! For us though, any delay is a good thing as it’s cheaper in our current house so we’ll have a lot more money in the bank by the time we move, plus our existing debts will be cleared!


How much is the property you are looking to purchase if you don’t mind me asking
mutley130/03/2020 11:50

at what stage in the process are you at?


Morgage offered, just waiting on solicitors to finish searches
Does anyone seriously think the current situation will INCREASE house prices!
seckinboy30/03/2020 14:28

How much is the property you are looking to purchase if you don’t mind me a …How much is the property you are looking to purchase if you don’t mind me asking


Our purchase price is £347k on a house that was on the market for £370k and is listed on Zoopla as being worth between £380k -£415k.... we’re really keen to complete ASAP as it’s a real opportunity! The house two doors down was valued at £400k so even with a spend of £10-15k to tart it up we’ll still be ahead. Plus it’s our forever home, if such a thing exists so we’re happy to ride out any financial storm (we’ve been looking for 5+ years so it’s a miracle that we’ve found a house that we agree on!)
seckinboy30/03/2020 14:29

Morgage offered, just waiting on solicitors to finish searches


here's my two pence worth. let the process continue as you still have time until exchange to review the situation and make up your mind then. you don't need to make a decision until exchange time.
seckinboy30/03/2020 02:52

Why do you say that?


I agree with their comments about Leasehold being a nightmare.
Basically the leaseholder has you by the short an curlies at every point of your life in the property and even when you come to sell It'll cost you more in conveyancing fees.
We just sold a leasehold house and even that was a nightmare with the leaseholder trying to cash in right until the last moment with extra charges.
The final straw was when they wrote to us asking if we'd done any kind of changes to the property without their permission such as painting the windows and gutters or landscaping our garden, It felt basically like it was their house and we were renting it.

A Leasehold flat I imagine would be 5 times worse with maintenance and insurance charges which you have little control over.
Edited by: "PaulandPam" 30th Mar
mutley130/03/2020 15:37

here's my two pence worth. let the process continue as you still have …here's my two pence worth. let the process continue as you still have time until exchange to review the situation and make up your mind then. you don't need to make a decision until exchange time.


Could I re-negotiate just before completion
seckinboy30/03/2020 02:52

Why do you say that?


As above comment plus decrease in lease length and increase in ground rent costs etc. I owned a leasehold flat a few years ago. Everything was a pain in the ass. Costs galore and whenever the lease holder had to be contracted it was a chore. Never ever again. It was a happy day the day I got rid of it.
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