Estate agents await more lockdown details with ‘cautious optimism’

Robert Jenrick, the Secretary of State for housing, communities and local government, appears to suggest the housing market will continue to operate through a second national lockdown in England
Written By:
Tom Bill, Knight Frank
2 minutes to read
Categories: Topic Covid-19

The government announced a second national lockdown in England on Saturday evening, forcing many retail and hospitality businesses to close sites this week. Mark Hayward, the chief executive of NAEA Propertymark, a professional body representing estate agents that was consulted by the government during the first lockdown, gives Tom Bill his initial reaction to the news and says what it could mean for the sector. More details are likely to emerge over the next several days.

What did you think when you watched the Boris Johnson announcement on Saturday night?

At first I thought ‘here we go again’, but then it became clear that this is not a total national lockdown in the same sense as the one earlier this year.

Where does that leave estate agents?

I take comfort from the words of Robert Jenrick on social media. He said: “The housing market will remain open throughout this period. Everyone should continue to play their part in reducing the spread of the virus by following the current guidance.” I would describe my mood as “cautiously optimistic”.

Does that mean viewings and valuations are allowed in England?

We have asked for further guidance and would hope to get that early this week. We hope and assume that the answer is ‘yes’ provided everyone complies with the restrictions. It may be more agents work from home but many are used to doing that from the previous experience of lockdown. The legislation needs to be passed through Parliament so may be subject to some further finessing this week.

How do you think the housing market would react to tighter restrictions?

We are already at a logjam in terms of the number of deals going through the system, we don’t want the conveyancing industry to sit on its hands for a month as that would make the problem worse. Having dealt with the government, it is clear that it recognises the incredibly important role the housing market plays in the wider economy. If it can keep it going, it will.

Does that mean an extension to the stamp duty holiday is likely?

There is a cliff edge and the holiday clearly needs to be extended to prevent aborted sales. A lot of people are saying the same thing to the Treasury and some other parts of the government are supportive of the idea so I hope they will look at how they can taper or extend it.