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A second lockdown could push the property market to breaking point

The race is on for home buyers. Those wanting to benefit from the temporary stamp duty cut need to act fast, as experts have said that they now have just a 50-50 chance of completing before the 31 March deadline.
A surge in demand as people rushed to move house post-lockdown has inundated lenders, conveyancers and surveyors – many of whom are working at reduced capacity. This is creating a dangerous bottleneck, and forecasts from a group of national property companies suggest that 200,000 people could miss out on stamp duty savings as a result.
Delays could also cost people their mortgage offer. After approval, borrowers typically have six months to complete before their offer expires. Those that fail to do so could be in hot water, as banks have pulled many deals and increased rates so buyers may struggle to find a mortgage they can afford.
An impending second wave of coronavirus threatens to push things over the edge. People will become even more desperate to move if they are once again told to stay at home. Yet at the same time new restrictions are likely to add to delays – particularly if England follows Wales in ordering property viewings to stop, estate agencies to close and surveyors not to enter occupied homes.
We examine how Madrid’s property market could give us an indicator as to what a second lockdown would mean for house prices.
Analysts were already warning of significant price falls next year, as economic support schemes wind down and Britain readjusts to a post-Brexit world. Removing a tax break worth up to 15,000 could prevent people from moving house.
Lauren Davidson, head of personal finance, argues that the Government should extend the stamp duty holiday or risk property sales falling off a cliff. Do you agree? Have your say by commenting here.
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In our comments section, Paddington Brown said of ‘Nationwide is withholding my 53,000 refund – I want it now’: "I find it extraordinary that in 2020 multi-billion pound banks and highly educated conveyancers, whose core job involves moving money from one place to another, haven't thought of a way of making sure the money arrives in the right place. It is they who should be held liable, not the innocent and untrained consumer who may not do this sort of activity more than once or twice in a whole lifetime."
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