The Government announced the move on Thursday evening, after it came under increasing pressure from banks to freeze the market. Banks had seen a huge rise in the volume of customer inquiries about upcoming moves and requesting mortgage holidays. They also expressed concern about how the impact of coronavirus would affect valuations.

The Government had already urged people in the early stages of buying or selling their home to delay the transaction while emergency measures were in place.

But on Thursday night the Government introduced more stringent measures, banning visits to properties while the UK lockdown is in force.

The ban includes estate agents, surveyors or potential buyers and effectively blocks any new transactions from taking place.

Robert Jenrick, the housing secretary, said yesterday: “I know that many people across the country are due to move house tomorrow.

“While emergency measures are in place, all parties should do all they can to agree a new move date.

“If you’re socially isolating or being shielded, it’s especially important to try and delay.”

A government spokesman said: “Homebuyers and renters should, as far as possible, delay moving home while emergency measures are in place to fight coronavirus.”

The spokesman said moves could only go ahead if “unavoidable for contractual reasons”.

JUST IN: Queen’s Trooping the Colour celebrations ‘won’t go ahead’ as planned

Most lenders have agreed to extend mortgage offers so that people can put transactions on hold.

Mortgage offers typically last for at least three months, but customers who have exchanged contracts will now be able to extend their mortgage offer for another three months.

Renters have also been advised not to move.

The Government said: “You can speak to estate agents over the phone and they will be able to give you general advice about the local property market and handle certain matters remotely but they will not be able to start actively marketing your home in the usual manner.”

DON’T MISS:
Boris Johnson coronavirus: PM releases Twitter post on diagnosis [VIDEO]
Coronavirus POLL: Are you proud of how Britain has responded to virus? [POLL]
Robert Peston sends ‘serious’ warning following PM’s coronavirus test [COMMENT]

The move prompted several banks and mortgage providers to stop offering loans on new homes.

This includes Lloyds, the largest UK provider, which owns Halifax and Bank of Scotland, and Barclays.

Lloyds said it would not offer mortgages or remortgages unless the customer has a deposit of at least 40 percent of the value of the property.

Barclays announced similar measures, and said it would not offer mortgages to customers who did not have a deposit of at least 40 percent, but the bank said it would offer remortgaging deals.

Prior to the announcement, the UK housing market had already began to stagnate.

Buyer demand fell by 40 percent last week compared with the previous week, according to property websites Zoopla.

Collapses in sales rose by 60 percent during the same period.

Source: Read Full Article