According to the Royal Institution of Chartered Surveyors (RICS) there has been a steep decline in the number of new landlords taking on agents to manage their properties; this will worsen further because of the Covoid–19 pandemic.

The institute’s latest residential market survey found that 32% of the agents, who took part in the research, said that during March there was a major fall in new landlord issuing instruction compared with those in February. The low number of new landlords will continue until at least the end of summer.

Simon Rubinsohn, RICS chief economist, said: “The results of the latest RICS survey capture the period during which the economy moved into lockdown so show a somewhat mixed picture.”

The last few weeks under the lockdown has caused the lowest near-term property sales predictions/expectations since 1998, as well as house prices expected to take a battering.

RICS warns the sector in spite of this year’s positive couple of month’s activity within the housing market, March’s activity came to a grinding halt and with the lockdown carrying on for at least another three weeks and further into May. Even when the lockdown is finally lifted the serious effect on the market will last until the end of the year.

74% of those that took part in the survey reported that in March there was a major drop in the number of new home buyers which had fallen from the previous three months average of +17%.

In the same month 69% of respondents saw a drop in newly agreed sales, whereas in February it stood at +19%.

Predicted sales predictions for April to June are also extremely negative due to the nationwide lockdown at a net balance of -92%.

Rubinsohn added: “Critically, the key forward looking indicators clearly reflect the emergency measures in place. The fact that responses are negative not just at the three but also the twelve month time horizon is significant in suggesting that the legacy of covid-19 could be such that any return to what might be described as ‘normality’ in the economy will take time and households will remain cautious for a while.

“Of course, the primary focus of government is at this stage the health of the nation and defeating Coronavirus and it may be a little premature to be planning for the economic recovery. However, the feedback from the survey does imply that further government interventions both in the wider economy and more specifically in the housing market may be necessary to aid this process supporting businesses and people back into work.”

The institute’s survey shows the need for a government’s robust plan of action to implement medium and long term measures to combat the negative effect of the pandemic on the housing market.

RICS head of government relations Hew Edgar, said: “While the UK’s health is the priority, our survey feedback suggests that the Government will need to start considering medium and long-term measures that could assist a post-pandemic housing market.

“These are exceptional circumstances and the Government will need to consider all avenues that could feasibly rebuild confidence, bridging the gap between uncertainty and recovery.

“RICS is not an organisation that would call for a stamp duty holiday on a whim, and indeed our view prior to Covid 19 was that it required a full-scale review. As we start to emerge from this crisis, however, it is likely that the finances of potential homebuyers will be under strain, and the burden of stamp duty could put buyers off. For those who can afford to move they may lack confidence in the market, adding to the slow down. A stamp duty holiday could be one of the ways to reactivate the housing market quickly as a short term measure.”