Mid-week Property News Update
The big residential development rethink
2 minutes to read
The big rethink
Almost six in ten global developers have delayed projects in response to the spread of Covid-19, as the virus wreaked havoc on supply chains and prompted a wholesale rethink of how and where people want to live.
That’s one of the findings of our survey of 160 developers across 22 locations – the first of its kind since the World Health Organization declared the outbreak a pandemic. Of those with delayed projects, more than four in ten are now making changes to designs that were once considered complete.
Flora Harley looks at which Covid-19 inspired changes developers are considering, from advanced telecommunications and storage facilities for bicycles to air cleaning systems and robotics. Click here for the full report.
More jobs support?
Chancellor of the Exchequer Rishi Sunak has hinted that he’ll support U.K. jobs after the furlough scheme ends next month. That came after the ONS announced the economy had shed almost 700,000 jobs during the pandemic, with young people bearing the brunt of those losses.
Construction vacancies rose by a third but remained almost 30% below last year's level, and pay in the sector is under pressure.
Bloomberg forecasts the jobless rate will hit 8.5% by the year end, which makes more monetary stimulus likely.
Decision day for the Bank of England
Bloomberg this morning has a round up of what to expect from the Bank of England's latest policy decision, released at midday Thursday.
While economists and investors don’t see immediate action, they do expect another 50 billion pounds to be added to the 745 billion-pound bond-buying program in November. By lowering the yields on corporate bonds, the BOE scheme reduces the cost of borrowing for companies.
Markets are now pricing in an interest rate cut as early as February and economists at Bank of America say the rate could fall to -0.5% if Britain fails to strike a trade deal with the EU. Here's Knight Frank Finance on what negative rates mean for the housing market.
Diary of an agent
It's against that backdrop that Chris Druce checks in on London residential development and the office in Hertfordshire for a new agents diary.
Paddy Pritchard-Gordon says ex five-day-a-week commuters are able to push their search boundary out another 15 minutes to access significant savings. Meanwhile James Cohen reports the key buyers in the London new homes market have been international, especially from China and Hong Kong. These are the buyers comfortable buying off-plan, which naturally prevailed while restrictions on movement were in place.
In other news...
Get ready for the great urban comeback; Chinese vaccine ready for use in November, top scientist says; Pfizer vaccine trial reports no major safety issues; AstraZeneca’s U.S. trial remains on hold pending review by FDA; Tensions rise as government mulls extending eviction ban.