Knight Frank Daily Update Thursday 18th June
The 2020 Rural Report, the future of the office and a surge in new prospective buyers
2 minutes to read
Good morning,
Need to know
The Bank of England is widely expected to boost its support for the UK economy again today by expanding its bond-buying program by £100bn.
By buying up so much debt the Bank is trying to keep a lid on borrowing costs paid by businesses and consumers in an attempt to accelerate the recovery. The Governor Andrew Bailey is reviewing whether the UK base rate should go below zero, though that review is likely to take some time.
The US Labor Department will publish its report on weekly jobless claims later today, a key indicator of the health of the American economy.
Economists expect an 11th straight weekly drop in claims after employers hired a record 2.5 million workers in May. The data reveals steady improvements, though there remains some way back to pre-pandemic norms - for the time being the total unemployed remains well above the numbers seen at the depths of the 2008/9 financial crisis.
The property market
Climate change, Brexit and Covid-19 all pose tough questions for farms, estates and other rural businesses. Andrew Shirley covers them all in the 2020 edition of the Rural Report, published this morning. This is the 10th Edition of this market leading report and is a must-read for everyone involved in the sector.
Supply has started to catch-up with demand in UK property markets as the scale of pent-up demand encourages more owners to sell.
The number of new prospective buyers registering to purchase outside of London reached its highest level in more than nine years last week, according to analysis from Tom Bill.
Meanwhile, the number of new instructions to sell in the first fortnight of June outside the capital was 16% higher than the five-year average.
In the latest agent's diary, Chris Druce looks at the resilience of deals agreed pre-pandemic, demand from Chinese investors and pricing as we emerge from lockdown.
Kate Everett-Allen this morning updates our Global Residential Market Outlook. Several markets have now reported sales data for May, including New Zealand and Australia.
Finally, Lee Elliott, Knight Frank's Global Head of Occupier Research, provides an update on the future of the office and its essential role in our working lives.
If you have any questions, please contact me, or the team.