Once in a blue moon, there is a government announcement that brings the world we know to a halt. That blue moon rose on Halloween night, when Boris Johnson confirmed that the UK would be going into a second lockdown. However, it seems that housebuilders have little to fear.
Lockdown 2.0 will differ from its predecessor in many ways. There was never any doubt that construction sites would remain open, and the Housing Secretary was quick to confirm that the property market will remain open for business.
In a tweet on 31 October, Housing Secretary Robert Jenrick tweeted: “Yes – 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.”
In a follow up tweet on 1 November, he clarified that:
- Renters and homeowners will be able to move
- Removal firms and estate agents can operate
- Construction sites can and should continue
- Tradespeople will be able to enter homes
- But all must follow the Covid safety guidance
Jenrick advised keen house hunters that all initial viewings should be done virtually wherever possible. All physical viewings, where prospective buyers or renters will be entering the property, should involve no more than two households inside the property at any one time.
Naturally, his tweet has been met with a chorus of praise from the industry. Evan Maindonald, CEO of property development company MELT Property, said: “House hunters are already facing nerve-racking delays when attempting to meet the stamp duty deadline. Mortgage lenders, surveyors and local councils are struggling to cope with the backlog of property transactions. It’s good that we’ve been able to avoid the destructive impact a second standstill of the housing market would have had on property buyers as well as on the construction sector.”
Having witnessed the demand from property buyers first hand, Maindonald added: “As England is now being forced to endure a second lockdown, we would like the government to re-consider an extension of the stamp duty holiday or a reform of the stamp duty system. Not only would this ease off pressure on house hunters, it would allow mortgage lenders and surveyors to catch up with the backlog caused by the first lockdown.”
The property industry is now well-versed in Covid safety measures, having been one of the first sectors to reopen after the first lockdown.
ONP managing director Adam Forshaw, said: “It’s really business as usual for us because the housing market will remain open. We have all been working to Covid-safe principles for months, so we’re much better prepared to deal with the challenges of a second lockdown.
“Viewings can still take place and much of the conveyancing process is done remotely by making use of the latest technology to ensure it’s a safe process. Of course, there will be some uncertainty and house buyers will be working out what it means for them, but if they want to move we will be there for them to make it happen.”
The construction industry has similar cause for optimism. Marco Verdonkschot, Managing Director at IronmongeryDirect, said: “With rising case numbers and hospital admissions, the announcement of a second national lockdown was perhaps inevitable, but businesses will be hit hard once again. However, the construction industry is exempt from workplace closures and this will hopefully allow recent signs of recovery to continue.
“Driven by increases in new work, construction output rose by 3% in August to nearly £12,500 million, marking the fourth successive month of growth for the industry. Such sustained growth is a healthy indicator of confidence returning to the sector, with companies across the UK willing to commission fresh projects. New private housing has been performing particularly well and will be boosted by the news that such work is unaffected by a second lockdown.
“The Prime Minister also announced that the furlough scheme will be extended until December, with employees still receiving 80% of their salary. While the number of construction workers on furlough has been dropping rapidly each month – the quickest proportionate decrease across all sectors – the latest data shows that there were still over 275,000 people on the scheme in July. Therefore, the extension of the funding will be greatly welcomed by many in the industry.
“Despite being able to continue operations, the second national lockdown will undoubtedly put extra strain on the construction industry and we may see the rate of recovery slow down further.
“However, the sector is proving to be incredibly resilient and has shown this year that it can rebound strongly after challenging setbacks. The government’s announcement at the weekend has given the industry a chance to continue its growth and hopefully it can end the year in a strong position.”
PICTURE CREDIT: Stuart.graham
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