Monday Property News Update
Homebuyers search for space is driving prices
3 minutes to read
Incoming: new alert levels
The Prime Minister will today set out new measures to try to contain the pandemic, outlining three new alert levels to better coordinate the government's response.
The Times this morning reports the strictest of the three new alert levels, labelled “very high”, is likely to entail the closure of pubs, bars, casinos and gyms. That 'level' is expected to be applied to Liverpool today and will be implemented for four weeks at a time before being reviewed.
The great search for space
The south of England's property market is not the only region to have benefitted as city-dwellers search for more greenery and outdoor space, according to Tom Bill's latest UK Property Market Outlook.
While areas like the Cotswolds, Ascot and Sevenoaks have risen in popularity, new analysis shows that asking prices in Yorkshire and The Humber have risen by more than any other region since the market re-opened. It suggests some buyers are prepared to go further afield for better value as they strike a new work/life balance.
Emma Hodgson, head of sales at Knight Frank’s Harrogate office, reports that half of all buyers she is dealing with are from the south of England compared to less than a third this time last year.
Is Asia Pacific about to bounce back?
The worst is over for Asia Pacific economies and GDP across the region is likely to bounce back to about 5% growth in 2021.
That's according to Tom Rafferty, a regional director of The Economist Intelligence Unit, who joins Anna Ward and Nick Holt for a new edition of Intelligence Talks. Mr Rafferty says exposure to the region for property investors makes sense, but there are still lingering issues to be wary of, notably momentum for economic growth that may not be that sustainable until a vaccine is found, plus governments withdrawing state support.
Listen now on Spotify, Acast or Apple. Our other Intelligence Talks podcast episodes are also available on our website.
Goldman goes short on the dollar
After advising clients to buy sterling last week, Goldman is now advising clients to short the dollar on the rising likelihood of Joe Biden winning the US election plus the encouraging progress on the development of vaccines.
A decisive election result and more positive vaccine news would put the dollar back to 2018-lows, according to Goldman. As the world's safe haven currency news that underpins confidence among global investors generally weighs on the dollar.
This kind of volatility can have a significant impact on the buying power of overseas property investors, a theme Flora Harley explored earlier this month.
Brexit timeline update
Brexit talks resume in Brussels today after the Prime Minister spent the weekend on the phone with the leaders of Germany and France, according to Bloomberg.
This round of talks are set to continue at least until national leaders convene at a summit on Thursday. If the PM is persuaded that the EU is ready to do a deal, discussions are likely to continue in the Belgian capital for a further two weeks, according to the report.
As negotiations enter these pivotal weeks and with farming still one of a few sticking points, Andrew Shirley explores the outlook for the rural sector and looks at a new proposal that the industry says will allow farming and the environment to prosper hand in hand.
In other news
The UK’s smallest businesses fight to survive; Wall Street hopes to continue its recovery in third quarter; China ends virus-free streak as a case cluster in port city emerges.