Viewings have halved or worse in a week, agents are reporting, but exchanges are still heading for completion.
North London agent Jeremy Leaf said: “Viewings are probably down 50% now, rather than the 25% we saw a week ago, but that doesn’t necessarily mean that buyers and sellers are not getting on with moving.
“For instance, we managed to secure four exchanges of contract on Thursday and Friday of last week. All parties asked the ‘what if’ question about completion but all decided to proceed nonetheless.
“We are not seeing sales or listings being cancelled widely yet.
“If employees are laid off or made redundant and businesses close then bigger decisions will have to be made and there may be a more noticeable market correction.
“But at the moment most seem to be hanging on in there.”
Patrick Alvarado, of upmarket London agent Nicolas Van Patrick, said: “The impact of coronavirus is widespread across every industry from the stock markets to retail and property.
“We have heard of people pulling out of deals because of the stock market collapse – one large penthouse was on with another agent for £50m but the buyer has just pulled out because on paper he has taken a huge hit.
“Viewings have pretty much dried up over the past week.
“That said, the deals under offer are still being done. We exchanged on a £1.5m flat last Thursday and sold another on Friday, which has been on the market for three years, at the asking price.
“If it wasn’t for the virus, we would all be saying we expect a busy year.”
Buying agent Guy Meacock, of Prime Purchase, said: “Activity may be on ice until the autumn.”
He added: “The top end of the market is being particularly affected as many international clients simply can’t travel to view property.
“The limitation on moving will have an acute impact on the upper end.
“It may also change our attitudes to our homes if we are forced to spend a lot of time there in self-isolation. How important is it to have space where you can work?
Anyone else p#####d off beyond belief that we were just on the cusp of a fantastic year and then this happens. It just beggars belief. I feel awful for people in hospitality as they’ve had an even worse kick than us, many going under overnight but Jesus h Christ, how much of a kicking have we had in this industry in the last 12 years. Feels never ending.
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purplepatchy
I don’t know how far back you go in the industry, or where you are based – but in over 40 years here ‘oop North, there have been a lot more bad years than good, even if you count the ‘okay’ ones in the latter pile..
There are always winners of course – dipping in and out and capitalising on rising markets – and some Agents enjoy sustained good fortune where others don’t. But in the main, businesses and business owners have survived rather than thrived.
And I don’t see that changing anytime soon.
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I have a nasty feeling that this recession will be far worse than 73/74, 88 to 95 and 07/08. This is the biggest crisis to hit the world since 1939!
I’m planning accordingly!
I heard of an exchange due this morning where the buyer, with a straight face, asked for 10% off – or else.
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Why did the buyer only ask for 10%? I assume the vendor bit his hand off right? Next bid that vendor sees will be in 1 year and down 30%.
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Maybe after 12 years you should draw the obvious conclusion and find something else to do?
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There must be some mistake here. Henry Pryor was just telling us he was doing 19 viewings a week and it was all systems go. I am confused.
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