Housing market "at risk" without changes to furlough scheme, firms warn

A group of trade associations, professionals bodies and other parties have sent an Open Letter to the Chancellor calling for greater flexibility in the furlough scheme.

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Rozi Jones
26th May 2020
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"It only takes delays due to lack of resources at one point in the process to cause a logjam for homebuyers and sellers in completing transactions."

The Group - comprising estate agents, lawyers, search agents, valuers, and surveyors - believes that a "successful market relaunch is at risk without changes to the furlough scheme".

The letter proposes that employers should be able to move their staff in and out of furlough on a weekly basis rather than the current three-weekly basis.

The Group says that due to the financial implications of having to pay un-furloughed staff, "many employers are taking a conservative approach to bringing people back on to the payroll".

According to early figures from the estate agency, removals, and conveyancing sectors, less than 50% of employees have been brought out of furlough following the lifting of restrictions on the operation of the housing market.

The Group predicts that increased flexibility in the job retention scheme could lead to an additional 10% to 15% of furloughed employees being returned to work.

The Group said: "Due to the way the housing market operates with most transactions forming part of chains, it only takes delays due to lack of resources at one point in the process to cause a logjam for homebuyers and sellers in completing transactions. By amending the furlough arrangement to allow firms to bring employees in and out of furlough on a weekly basis these delays should be avoided and enable the market to run as smoothly as possible in the current circumstances."

Kate Faulkner, founder of the Home Buying and Selling Group, commented: “The decision by the Government to re-activate the property market has been widely welcomed by all parties, not least those consumers who are desperate for a whole variety of reasons to complete their home moves.

"It is really important that the Government now does all that it can to ensure the smooth operation of the market, helping to minimise stress levels for many people who already feel under great pressure, particularly essential workers moving home.”

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