<p>Since the start of the pandemic, approximately 370,000 property sales at a staggering value of &pound;82 billion were put on hold due to the lockdown, and the government warns that there is no return to normality in the property market just yet. Markets in Northern Ireland, Scotland, and Wales remained closed, and social distancing regulations in England proved to be a turn-off for potential buyers. According to reports by estate agents, there was also a significant drop in the levels of enquiries, especially in the luxury market in prime London. The blow to the housing market came just as house prices began to recover from the commotion caused by Brexit towards the end of 2019, and the dramatic effect Corona had on the economy made people reluctant to spend any significant amount of money.</p>
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<h2>It is a buyer's market</h2>
<p>It is not all doom and gloom. New forecasts believe that the drop in <a href="https://www.localsolicitors.com/conveyancing-and-property-guides/stamp-duty-rates-and-requirements">stamp duty tax</a> will breathe new life into the property market, but price drops in property value will be inevitable. At the height of lockdown, it was predicted that house prices could fall as far as 10 per cent, but experts hope that the relaxed restrictions in conjunction with increased stamp duty threshold (increased from &pound;125 000 to &pound;500 000 until March 2021) will turn things around.</p>
<p>Since the stamp duty holiday has been introduced, agents have reported a massive 49 per cent increase in queries on houses priced between &pound;400 000 to &pound;500 000. The stamp duty holiday means that there will be no taxes on homes valued under &pound;500 000, with reduced taxes for the more expensive homes. This is appealing to a great many potential buyers, as they are not only saving a chunk on additional taxes, but it is also a buyer's market at the moment with the drop in property value in some areas.</p>
<h2>What does all this mean to the seller?</h2>
<p>On the bright side, social distancing will mean fewer time-wasters &ndash; you will only be dealing with more serious buyers during this time. However, you should be prepared for offers as low as 20 per cent under the asking price. The only way to circumvent this in the current climate is to strategize accordingly, and price attractively. Also consider that even if you sell your house below the asking price at this time, you may also be paying a similar discount on your next property (assuming, of course, that you are selling and buying at the same time). Interestingly, research shows that 39 per cent of buyers are now buying in villages &ndash; possibly because smaller localities are less likely to be as heavily impacted as large towns and cities. This is good news for sellers in rural areas, who can name a competitive price.</p>
<h2>What about a payment holiday?</h2>
<p>Where <a href="https://www.localsolicitors.com/conveyancing-and-property-guides/problems-paying-your-mortgage-here-is-what-you-should-do">people who are struggling financially</a> are forced to sell their homes, lenders are becoming more reluctant to repossess the property, and are instead offering mortgage holidays. Depending on your situation, the lender will either offer a 3-month payment holiday where you pay lower instalments or nothing at all. It is important to note that these deferred payments will be added to the mortgage, so mortgage repayments will increase at the end of the payment holiday. It may be possible that these holidays could be extended up to a year or 18 months if the borrower can prove that they have no short-term means to repay their mortgage, but the debt will keep stacking up.</p>
<h2>What does it look like in the long-term?</h2>
<p>According to the <a href="https://www.rics.org/uk/news-insight/latest-news/coronavirus-and-rics-events/" target="_blank">RICS</a>, the surveyor's trade body, no significant recovery is expected until Easter 2021, and that estimation is generous in the eyes of some people.<br /> <br />It is important to note that any concluded property deals will still stand. If you have already exchanged contracts during this period, all the usual rules apply, and there will be financial penalties if you withdraw.</p>

A look at how the coronavirus pandemic has impacted the housing market for both buyers and sellers, and what the outlook may look like in the coming years.

How will the Corona Virus affect the housing market? LocalSolicitors.com