Your Monday Update - 3rd August
House prices rise but retirees feel the pinch
3 minutes to read
Tracking the recovery
A closely-followed index suggests that consumer confidence in Britain has returned to positive territory for the first time since the onset of the pandemic. Confidence rose in July as business activity also continued to rise. The survey was taken before the recent rise in the UK’s R rate, which may impact the survey results in August.
Meanwhile, a slew of economic data from some of Asia's largest economies suggests output is improving as the region emerges from the worst of the pandemic. Manufacturing activity in China expanded at the fastest pace in nearly a decade as domestic demand improved. Meanwhile, Taiwan’s manufacturing activity grew as Japan and South Korea saw factory activity shrink at a much slower pace than in recent weeks.
Housing market competition
Home buyers have been surprised by the stiffness of the competition in recent weeks and lockdown bargain-hunters may be disappointed, writes Tom Bill in an updated Residential Market Outlook. The number of new prospective buyer registrations was 94% higher than the five-year average in the week ending 25 July. The equivalent increase in supply was 54%.
The same imbalance can be found inside and outside the capital and is contributing to upwards pressure on pricing. In fact, on average offers were accepted at 98% of the asking price in July, which is a percentage point higher than the same month last year.
The incoming supply crunch for retirement housing
A new Knight Frank forecast from Lauren Harwood indicates the number of retirement housing units across the UK is to grow by 10% over the next five years, taking total stock to more than 800,000. Despite this growth, the projected delivery of homes will not keep pace with the growth of older aged residents. In real terms the number of retirement homes per 1,000 individuals aged 75+ is expected to drop to 120 by 2024, down from 137 in 2010 and 129 today.
In a new Intelligence Talks podcast, Lauren speaks to Knight Frank’s Mandip Bhogal and Anne-Marie Nicholson, partner at PRP architects, about the design implications of Covid-19 for the retirement sector. It also looks at how care homes and retirement living could form part of the revitalisation of high streets, as well as the potential for more Build to Rent for seniors. Listen on Spotify, Acast and Apple.
Speeding up housebuilding
The government will this week conduct a reform of planning rules in an attempt to speed up housebuilding. Local government secretary Robert Jenrick used a Sunday Telegraph column to flag the proposals, which will include the designation of land for growth, for renewal or for protection. "Land designated for growth will empower development - new homes, hospitals, schools, shops and offices will be allowed automatically," Mr Jenrick said in the piece, and "renewal areas will enable much quicker development with a 'permission in principle' approach."
Meanwhile, the deadline for the homes to be completed in order to comply with the Help to Buy equity loan scheme has been extended.
In other news...
In his latest Rural Update, Andrew Shirley says proposals in the new National Food Strategy do not go as far as the (failed) amendment to the Agricultural Bill that proposed a blanket ban on the import of all food produced to lower standards than those required of UK farmers.
Also: Millions of Covid-19 tests able to detect the virus within 90 minutes will be rolled out to British hospitals; a fresh flush of vaccine trial results is offering hope; and, Gold to hit $2,000?
Finally: This insight on the rental market in the US. When the pandemic started, federal and local lawmakers moved to protect renters from eviction. Now, many of those eviction moratoria are expiring. WSJ's Will Parker explains.