Flashcards in Covid-19 Deck (11)
How has Covid 19 affected the residential market?
- 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%.
How is Covid 19 affecting the way you undertake valuations?
Regulated members and other stakeholders should ensure that they are familiar with the RICS Valuation Practice Alert – Coronavirus – 19 May 2020
- 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, rely on third party info (apply prof scep), defer inspection if required.
- 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’
Valuer to decide if reasonable to provide adequately professional report. If not, decline.
What have RICS done in the face of Covid-19
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.
How will the residential market adapt post Covid-19?
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.
What safety precautions are you taking to protect yourself, clients and third parties during Covid-19?
Following government guidance, 2m social distancing, pre lockdown - asking apps about health, PPE.
How have you as a team adapted your services to cope with Covid-19?
- 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.
Are you aware how RICS are responding to Covid-19 for members?
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
What piece of legislation has been passed relating to Covid-19 and what are the effects?
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
How can the housing market be assisted post Covid19?
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)
As restrictions are lifted, how is your firm managing health & saftey
Use of virtual viewings where possible
Detailed viewing and key handling protocols have been drafted and these must be followed in full
Adequate staff training on the use of PPE & social distancing.