Rising Activity in the Property Market

Property market uncertainty driving last minute rush to complete deals

The majority of commentators on the UK Market agree that what the industry needs most right now is clarity and stability. This may go some way in explaining the current rush in property transactions aiming to complete before the Budget on the 26 November.

Our own observations – based on the volume of new enquiries received over the past seven days – suggests that activity levels have risen by at least 35% compared to normal.

Several new clients have told us that they want to complete their purchase before the Budget, preferring certainty over the risk of higher costs if they wait. These transactions – valued at over £1 million - span various parts of the country and include main residences, second homes and investment properties.

The Insurance perspective

Buildings cover on a freehold purchase needs to be in place from the point the risk transfers – typically at exchange of contracts. This is often left to the last minute, which is why many of the enquiries we receive from estate agents and property lawyers are extremely time sensitive.

Calls that begin with “I have a client due to exchange today and they haven’t arranged insurance - can you help?” are common-place. Given the current increase in activity, these situations are likely to become more frequent in the coming weeks.

My advice to professionals in the housing market is as follows:

1. Get your ducks in a row early - don’t delay.

If you’re a buying agent, estate agent or lawyer, ask the question as soon as the property goes under offer: “Have you arranged the buildings insurance required for exchange of contracts? If not, would you like us to recommend you to someone who can help?”
(Ideally Howden of course).

2. Address complex issues as they arise.

If you know an indemnity policy will be required, arrange it early. Likewise, if the property has any adverse history – such as flooding or subsidence - deal with it at the outset, before agreeing to list the property for sale. Complicated factors take longer to resolve, and with time at a premium, early action is essential.

3. Get a reinstatement cost

Ensure that you, or your clients, ask the surveyor to provide a reinstatement cost. Don’t assume this is included as standard. This is essential as the insurance should cover the cost of rebuilding the property and outbuildings, not its market value.

If your client doesn’t have this figure, we can arrange a survey to assist - read in our article: The importance of a professional valuation. Without it, organising cover will be delayed, and could leave them underinsured in the event of a major loss.

How Howden can help

Since joining Howden in 2023, part of my focus has been positioning us as the leading broker for the property market. We’ve built a nationwide team experienced in responding to urgent cover requests.

You can rely on us as your trusted partner, ready to step in when needed, even at the eleventh hour. So please don’t hesitate to call or email us for support.

For more information on working with Howden, check out the links below.

If you’d like tailored advice or support with urgent cover requests, please contact George Seatter directly at george.seatter@howdeninsurance.co.uk