Estate agents use FaceTime for house viewings as sales plummet by half in a week

Buyer demand was down 40 per cent last week compared with the previous week, according to property listings site Zoopla, as would-be home buyers paused on major decisions and took stock of the unfolding events in the UK and around the world.

This is unlikely to have an immediate impact on prices, the research also suggested, with the Government’s response to the economic crisis following coronavirus being the main factor for the future.

Some estate agents have begun to carry out virtual viewings to help sales of the houses that are currently on the market, using technology like FaceTime.

Despite this, it is likely that many sellers will withdraw from the market, at least temporarily, Zoopla said, because of a lack of interested buyers.

Another factor likely to influence sales is the large numbers of people losing their jobs, especially those at typical first-time buyer age, as they may need savings to support themselves or may be keen to wait until they have more certainty in their personal circumstances.

The scale of the downturn in transactions is dependent on the effectiveness of Government action to support jobs and the wider economy, Zoopla added.

Claire Ward at Manning Stainton in Leeds said the number of sales have dropped slightly in West Yorkshire. She said: “There has definitely been a downturn over the last week. It’s not been very significant but it has been noticeable.”

Richard Donnell, director of research and insight at Zoopla, said: “Covid-19 presents a major new challenge - not just for the housing market but for the UK and global economies. Fifty years of history shows that external shocks have impacted the housing market to differing degrees, largely down to the scale of direct impact on the UK economy.

“The initial impact of external shocks is to reduce consumer confidence and put a brake on housing demand and the number of people moving home, which we can see in our latest figures. Levels of property transactions are typically more volatile than changes in house prices.

“We do not expect any immediate impact on prices. Beyond this, the outlook for house prices largely depends upon how the Government’s major package of support for business and households reduces the scale of the economic impact. Low mortgage rates mean forbearance will remain the preferred choice for lenders, but further Government support in these unique times cannot be ruled out.

“The timing of any rebound in housing market activity depends upon when new restrictions are lifted, and the extent to which households and businesses are able to return to a normal way of life. Browsing for homes online is set to continue and, while demand for property may rebound quickly, it will take several months for agents to rebuild new business pipelines.”