The Coronavirus Pandemic is having a large impact on Registered Providers in their ability to secure completions of Shared Ownership sales.
The UK Lending Market has been hit with unprecedented requests for mortgage payment holidays and, at least in the short term, some Lenders are placing new mortgage applications on hold, and others are postponing drawdown of funds, for periods of anywhere between 3 weeks and 3 months.
It also appears that Lenders are reducing their loan to value amounts which will result in Buyers requiring larger deposits. This is likely to result in a surplus of housing stock for some Registered Providers, at least in the interim.
On the other hand, right to buy transactions may increase as buyers are keen to purchase their homes with large discounts, with no requirement for Buyers to view the property, on the presumption that social distancing will not impact this.
Social distancing will however have an impact on surveyors visiting properties to carry out valuations and EPC’s, although it may be possible for desktop surveys to be provided as an alternative.