Monday Property News Update
Six big issues facing property this winter
3 minutes to read
Winter is coming
Following the prime minister's warnings of a difficult six months ahead due to Covid-19, Tom Bill lays out the six key issues for the UK property market as winter approaches.
The number of price reductions as a percentage of all listed properties rose above 4% in September. That's not a significant increase but it demonstrates how there is a flicker of nervousness in the property market as summer turns into autumn.
However, inherently long lead times for buying property will sustain momentum, as will the stamp duty holiday. The number of offers accepted across the UK in the week ending 19 September was 154% ahead of the five-year average, underlining how activity won’t come to a sudden halt should the market remain open. For more on the possible impacts of Brexit, vaccines and interest rates, see the full piece.
Social lockdowns
The government is planning to enforce a total social lockdown across a majority of northern Britain and potentially London to combat a second wave of Covid-19.
Under the new measures, all pubs, restaurants and bars would be ordered to shut for two weeks initially, according to a report in the Times. Households would also be banned indefinitely from meeting each other in any indoor location where they were not already under the order.
Schools and shops would be allowed to remain open, along with factories and offices at which staff could not work from home.
A big week for Brexit
UK and EU diplomats will meet on Tuesday for what is being hailed in the financial press as a key week of negotiations if a deal is to be ratified in time for the end of Britain's transition period on January 1.
The FT reports progress this week will govern whether enough headway could be made to justify both sides entering into intensive “tunnel” talks of senior advisers, who would have the task of resolving the most difficult issues left on the table.
Those talks could run from the week of October 4 until an EU summit on October 15-16, a date seen as the moment when leaders will assess the state of the negotiations.
China's economic recovery
Stocks across Asia climbed overnight along with US and European equity-index futures as China’s ongoing economic recovery countered some of the concerns sparked by rising Covid-19 cases.
This follows data released over the weekend showing profits at China’s industrial firms grew for the fourth straight month.
Meanwhile, flights are selling out and travel platforms are reporting a surge in hotel bookings ahead of the upcoming Golden Week holiday.
Sustainable property's watershed moment
In a new Intelligence Talks podcast, Anna Ward is joined by Richard Walker, managing director of Iceland Foods.
Iceland is setting an example across both the retail sector – the company has just published its own plastic footprint and called on other grocery chains to do the same – and property. Anna also speaks to both Richard and Theo Mitchell, both co-founders of Bywater properties about the property sector’s efforts to reduce its carbon footprint.
Listen now on Spotify, Acast or Apple. Our other Intelligence Talks podcast episodes are also available on our website.
In other news...
In this week's Rural Update, Andrew Shirley outlines why the government is under pressure from all sides on its support for agriculture, rural communities and the environment.
Finally: Investors anticipate Joe Biden election win; Europeans return to workplaces but reduce leisure activity; buyout firm puts its faith in a recovery for offices; and Australia's virus hotspot sees five new cases on track for Christmas opening.