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Buying and selling homes during the coronavirus COVID-19 pandemic

Anna Hughes • Apr 15, 2020

Anna Hughes takes a look at the Government guidance and the practical issues of moving during the pandemic


This is no doubt a challenging time for the property market. Provided the Government guidance on social distancing is followed, there is no need to pull out of property transactions. The Government has however, urged parties to be flexible and to alter their processes during these unprecedented times.

The Government guidance that has been issued, states that home buyers and renters should, where possible, delay moving to a new house while measures are in place to reduce the spread of the virus. This does not mean that transactions cannot still proceed so long as they proceed in accordance with the guidance.

So lets look at the practical implications of the guidance 

If the property is vacant

The guidance advises that you can continue with the transaction if the property is vacant, however the Government guidelines must still be adhered to in respect of trades persons, such as removal men. 

‘Removers should follow the latest government guidance which currently (26 March 2020) state that work carried out in people’s homes can continue, provided the trades person is well and has no symptoms or coronavirus (COVID-19).’


If the property is occupied

The guidance advises that if contracts have already been exchanged and the property is currently occupied, all parties should work together to agree a delay when the social distancing restrictions have been lifted.

Furthermore, ‘If moving is unavoidable for contractual reasons and the parties are unable to reach an agreement to delay, people must follow advice on staying away from others to minimise the spread of the virus’

Moves deemed critical are currently exempt from the emergency police enforcement powers. However, the health and safety of everyone involved in the transaction remains paramount.

If contracts have not been exchanged, it is advisable to hold fire but ensure all of the paperwork is ready, so exchange can happen as soon as it is safe to do so. 

If completion does not take place after contracts have been exchanged due to Covid-19, the parties not completing will be in default. This can result in notices to complete, penalty interest and the loss of a deposit. All parties must be aware of the risks associated with the transaction during this time.


What if an extension goes beyond the term of the mortgage offer?

The guidance advises that ‘All mortgage lenders are working to find ways to enable customers who have exchanged contracts to extend their mortgage offer for up to 3 months to enable them to move at a later date.


Can properties still be advertised?

Properties already on the market can still be advertised and offers can still be accepted during the pandemic. To prevent the property market coming to a standstill, agents and solicitors are finding new ways to swiftly adapt. For example, we are seeing agents setting up virtual viewings of properties. Solicitors have also been working hard to re-negotiate completion dates to protect their client’s position and to prevent as much disruption as possible. 


What if a property is not on the market yet?

Despite offices being closed, agents can still assist buyers and vendors remotely. Although they cannot actively market the property as no visitors can enter to conduct EPC assessments, valuations etc, they can still get everything together ready for when the guidelines on social distancing are relaxed.

So transactions can still go ahead; they may just take longer during this difficult time and must be carried out using pragmatism and common sense.

If you would like to take a closer look at the Government guidance it can be accessed using this link: 

https://www.gov.uk/guidance/government-advice-on-home-moving-during-the-coronavirus-covid-19-outbreak



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