Knight Frank Daily Update Monday 1st June
Economic stimulus, the reopening of construction sites and early insight into house price expectations
2 minutes to read
Good morning,
Need to know
The UK government is preparing to unveil an economic stimulus package in July. The proposals include investing in training schemes and infrastructure projects, as well as providing help for technology companies.
Almost 200 companies have called on Boris Johnson to launch a green economic recovery plan, insisting that future corporate bailouts should take account of the UK’s net zero climate target.
Some schools, outdoor markets and car showrooms will open their doors this morning under social-distancing guidelines, along with some competitive sports, including horse racing. The gradual easing of the lockdown lifted a closely-watched household confidence survey by three points to 95.8 in May. However, the rating remains below the 100 mark that separates optimism from pessimism.
Daily new cases continue to fall in the US and many countries across Europe, although the overall global trend is still increasing, according to a Johns Hopkins analysis of WHO data. The overall increase is driven largely by increasing incidence in Asia and South America, with more minor increases in Africa and Central America, particularly Mexico.
Shares in Asia climbed overnight, with Hong Kong outperforming after US President Donald Trump on Friday stopped short of specifying tough sanctions over China’s new national security law for Hong Kong.
The property market
This morning we have updated our outlook for the UK residential market, including prices, transactions, lettings, residential development and mortgages. The update includes the reopening of construction sites, the reintroduction of mortgage products and an overview of where London buyers are seeking properties outside the capital.
A new Knight Frank survey found more than a quarter of homeowners expect the value of their property to remain unchanged over the next several months, underlining how some sellers will resist significant price discounts.
Some 27% of respondents said they expect no change in the value of their property, although others believe prices will fall in the short-term, according to the analysis by Chris Druce.
Andrew Shirley's latest rural update suggests a lack of stock, rather than willing buyers, continues to be the main issue for the English farms and estates market, which opened for business several weeks ago.
Finally the latest edition of our Intelligence Talks podcast is given over to an interview with Mark Prisk former MP and Housing Minister who shares his views on the property market post-Covid. You can listen via Apple, Spotify and Acast
If you have any questions, please contact me, or the team.