Industry leader hopeful of moving towards “a functioning market”

The chief executive of NAEA Propertymark tells Knight Frank he is hopeful that an announcement on the slackening of restrictions for estate agents will come this week
Written By:
Tom Bill, Knight Frank
2 minutes to read
Categories: Topic Covid-19

An industry group that represents estate agents is hopeful that more guidance will be provided later this week to clarify how the profession can return safely to work.

The government yesterday published a document that contained possible timescales for a range of industries to go back to work but there was no mention of estate agents.

“I was disappointed that the Prime Minister’s announcement didn’t contain any answers for estate agents,” Mark Hayward, chief executive of NAEA Propertymark, told Knight Frank. “We are in daily contact with the government and I am cautiously hopeful that there will be some sector-specific guidance this week. We are hopefully moving closer to something that resembles a functioning marketplace.”

Estate agents have been unable to carry out physical viewings during the government lockdown due to social distancing regulations, which has dramatically curbed transaction volumes. Knight Frank forecasts that there will be 526,000 lost sales in 2020, with fewer than half of those returning in 2021.

Mr Hayward said he hoped the guidance, which will come from the MHCLG, will answer questions that many in the industry have. “People are confused. If tradespeople are now allowed into the property, why not estate agents? The government is telling people to go to work if they need to, does that include doing market appraisals?”

He hopes there will be “some sort of slackening” of the rules and said leaked details from last week would hopefully form the basis of any announcement. 

As Knight Frank reported last week, measures under consideration included masks, hand sanitiser and alcohol wipes being required during viewings, which could be limited to two people plus the agent. Other measures under discussion could mean owners or tenants are asked to vacate the building and those viewing would be asked not to touch surfaces. Also under discussion was the banning of open house events and limiting viewings to 20 minutes. 

John Rockel, Head of Strategy and Operations at Knight Frank, said that while the resumption of business under social distancing restrictions would be challenging, “it can be done safely for staff and customers and we’re ready for it”.

Separately, the government yesterday issued guidance on working in different locations while adhering to new rules. While there was no specific mention of estate agents, "surveyors" were included as an example of workers who would need to follow guidance to work safely in other people's homes.  Other categories of workplace included "shops and branches".

For an analysis of the rules governing estate agents in other countries as they come out of lockdown and the performance of their property markets, see our latest Global Residential Outlook.