Coronavirus: UK housing market on hold as government urges people not to move homes during lockdown

House transactions predicted to fall by up to 60 per cent during Covid-19 outbreak

House buyers and renters have been urged to postpone their imminent property moves during the nationwide lockdown, as the government effectively put the UK’s home real estate market on hold.

Housing Secretary Robert Jenrick issued the plea on Thursday, adding that it was “especially important to try and delay” for those who are socially isolating or “being shielded”.

His comments come three days after Boris Johnson announced stringent new measures to tackle the outbreak of Covid-19, with all non-essential travel prohibited, mass gatherings banned and the vast majority of stores ordered to close.

The Ministry of Housing, Communities and Local Government has now said: “Homebuyers and renters should, where possible, delay moving to a new house while measures are in place to fight coronavirus (Covid-19).

“Our advice is that if you have already exchanged contracts and the property is currently occupied then all parties should work together to agree a delay or another way to resolve this matter.”

Mr Jenrick even said those scheduled to move on Friday should rethink plans to bring in the removal vans.

To help sustain the real estate market, lenders have agreed to extend all mortgage offers for up to three months to make it easier for borrowers to shift their move date, with the government insisting “there is no need to pull out of transactions”.

Stephen Jones, chief executive of UK Finance, said: “Current social distancing measures mean many house moves will need to be delayed.

“Where people have already exchanged contracts for house purchases and set dates for completion this is likely to be particularly stressful.

“To support these customers at this time, all mortgage lenders are working to find ways to enable customers who have exchanged contracts to extend their mortgage offer for up to three months to enable them to move at a later date.”

While Robin Fieth, chief executive of the Building Societies Association (BSA), described the extension offer as “a fair and reasonable step to take”, not all lenders are taking part in the initiative.

Both Virgin Money and Skipton Building Society have chosen to suspend mortgage applications for house purchases until after the pandemic has passed.

Under the government’s latest measures, an exemption is made “for critical home moves, in the event that a new date is unable to be agreed.”

For those homeowners and tenants with property already on the market, the government warns: “You can continue to advertise it as being for sale but you should not allow people in to view your property.

“There should not be any visitors into your home, and you should therefore not let people visit your property for viewings. Your agent may be able to conduct virtual viewings and you could speak to them about this possibility.

“The buying and selling process can continue during this period but you should be aware that the process is likely to take longer than normal.”

Interest in moving home has slumped amid the coronavirus outbreak, according to Zoopla, a property listings website. It has predicted that housing transactions will fall by up to 60 per cent over the next three months.

Meanwhile, Rightmove, which described the slowdown in the UK housing market as "significant”, told the BBC: “The number of property transactions failing to complete in recent days and likely changes in tenant behaviour following the announcement of the renters' protections by the government may put further pressure on estate and lettings agents.”

Additional reporting by agencies