RESIDENTIAL REAL ESTATE FOR PRIVATE CLIENTS

The government has put in place a three-tier system with different parts of the country being put in different categories depending on infection rates.
So what does this mean for estate agents?
Estate agents remain open and physical property viewings are permitted although virtual viewings are encouraged before personal visits to minimise public health risks.
London is currently subject to Tier 2 (high alert) restrictions. In relation to estate agents, these are:

1. Follow the Tier 1 (medium alert) rules:
- businesses can continue to operate in a Covid secure way
- property viewings are allowed provided social distancing measures are followed at all times
- social distancing measures include wearing face coverings, regular hand washing and use of sanitiser, staying 2 metres apart, keeping internal doors open during viewings, avoiding touching surfaces where possible
- only two households can be in the property at one time (which includes the agent) but two people in a support bubble with each other will count as part of one household
- no viewings where any party is showing Covid symptoms or has been asked to self-isolate
- open house viewings are not permitted

2. Specific to Tier 2:
- meeting anyone outside your household or support bubble in an indoor setting is not allowed but in-person property viewings can still take place with appropriate precautions
- no meeting in groups of more than 6 outdoors

If you want to take advantage of the stamp duty holiday, you may think that you have plenty of time to sell your property before the 31 March 2021 deadline.

The average time it takes to complete on a property once an offer is accepted is 12 weeks. This doesn't leave too long before the end of March 2021. Even more so when you consider that figure doesn’t include time for your own property search.

According to data from ViewMyChain.com, receiving an offer once the property is on the market can take around ten weeks, your buyer arranging a solicitor can take well over a month and arranging their mortgage can take up to six weeks, and that’s just a few of the tasks the buyer has to tick off. The solicitors, surveyors and estate agent will also all have their own tasks to complete before the job is done. When all combined, the average time it takes to sell a property from going on the market to completion is six months. With this in mind, you should give yourself plenty of time to sell your property so that you have the best possible chance to take advantage of the stamp duty holiday.

What is the Stamp Duty Holiday? 

When you buy a property, you normally have to pay Stamp Duty Land Transaction Tax on all properties over £125,000, or £300,000 for first-time buyers.

On 8 July 2020, the Chancellor of the Exchequer announced a temporary stamp duty holiday that cut the rate of stamp duty to zero per cent for all properties £500,000 or under until 31 March 2021.

For example, if you are purchasing a property that is £400,000 as a main residence, before the stamp duty holiday you would have paid £10,000, now you pay £0. There has also been a cut for buyers of additional properties, for example buy-to-let investors.

The new rate for additional properties starts at three per cent up to £500,000, which, using the same example of a £400,000 property, would save the buyer £10,000 in stamp duty.

You will also need to assemble copies of some important documents, including:

• A copy of the lease (if the property is leasehold)
• Documentation related to the freehold (if the property is freehold)
• FENSA certificates for replacement windows
• Your Energy Performance Certificate (EPC) R
• elevant building restrictions
• Building regulation certificate when alterations have taken place
• A Gas Safety certificate for a new boiler

Regulations outlining how six month notice periods will work in England, have been published and  came into force on Saturday 29 August 2020.

Following on from the intention announced last week by Secretary of State, Robert Jenrick, last weeks' development effectively extends the Coronavirus Act 2020 through to 31 March 2021.

The Government has announced its intention to support tenants in need as we enter Autumn and Winter months with widespread announcements on redundancies, while also responding to calls for justice from letting agents and landlords grappling with pre-COVID-19 rent arrears and anti-social behaviour.

From the start of the bank holiday weekend, Saturday 29 August, agents who need to issue section notices as a result of tenants incurring rent arrears or misleading information must allow six months before gaining possession.

However, if the rent arrears exceed six months rental payments, the notice period will reduce to four weeks.

A number of other scenarios are addressed in a slab structure of possession proceedings:

In cases of domestic abuse or riot, two weeks' notice will be sufficient.

Where landlords are seeking possession as a result of antisocial behaviour, four weeks' notice will be sufficient.

Where tenants are required to vacate property as a result of failed follow up Right to Rent checks, 12 weeks notice will be required

To read the Coronavirus Act click here