Covid-19

Question 1

How has Covid 19 affected the residential market?

Answer 1

• Practicalities of buying/ selling - enquiries, viewings and sales progression have stopped - conveyancing and removals stopped due to health and safety concerns.
• Consumer confidence - index is below global financial crisis level. Buyer holding off buying
• Restricted mortgage market - lenders have heightened their mortgage rates, LTV around 60% and case by case (fewer FTBs)
• Prices - Short term - no clear price reductions, pent-up demand might see quick recovery, however mid-term a slow return to consumer confidence - values might dip 5-10%.

Question 2

How is Covid 19 affecting the way you undertake valuations?

Answer 2

• Inspections - Any restrictions of information and/or the ability to inspect must be made clear, agreed with the client and clearly stated in the report.
• ToEs - All affected terms of engagement must be amended to confirm this. These requirements also apply to any valuation assumptions.
• VPGA10 Material uncertainty -report less certainty – and a higher degree of caution applied, recommend that you keep the valuation of [this property] under frequent review’

Question 3

What have RICS done in the face of Covid-19

Answer 3

RICS Valuation Alert on Covid-19 issued in March 2020. It states that RICS Regulated Members should be fully aware of VPGA 10 and VPS 3 within the RICS Red Book Global Standards in the decision-making process.

Question 4

How will the residential market adapt post Covid-19?

Answer 4

In times of market uncertainty comes, comes new opportunities and scope to reassess services.

1. BTR - Covid put pressure on private landlords (less private rental stock) and the home ownership challenges facing FTBs.
2. Government support - Earnings and savings (bank of M&D) threatened, grant funding for AH, home ownership support required - First Homes Scheme, an extension of HTB.
3. Planning - extending planning permission implementation.

Question 5

What safety precautions are you taking to protect yourself, clients and third parties during Covid-19?

Answer 5

Following government guidance, 2m social distancing, pre lockdown - asking apps about health, PPE.

Question 6

How have you as a team adapted your services to cope with Covid-19?

Answer 6

• Fully remote - provided full service with clients
• Marketing - using video to replace viewings & home demonstrations. (Occasional virtual viewings)
• Focused our attention to consultancy - providing comprehensive research.

Question 7

Are you aware how RICS are responding to Covid-19 for members?

Answer 7

 Information is updated regularly on the RICS website, offering support to members & public.
 RICS presently offers free unlimited CPD, advice to professionals & support for business owners

Question 8

What piece of legislation has been passed relating to Covid-19 and what are the effects?

Answer 8

Coronavirus Act 2020:
 Support for businesses to pay wage bills, and to provide grants and loans to businesses
 Temporary bans are imposed on landlords from evicting residential and commercial tenants for the non-payment of rent for at least 3 months

Question 9

How can the housing market be assisted post Covid19?

Answer 9

1. Extend HTB - remove FTB restrictions & regional cap
2. Grant Funding for affordable housing
3. Extend planning permission implementation (as seen in Scotland)
4. Diversify types and tenures (AH), methods & materials to accelerate delivery.
5. Consider design requirements post Covid19 (homeworking, gardens etc)