Wednesday property news update
Regulators approve the Oxford jab, investors bet on a 2021 recovery and house prices rise at their fastest pace in six years
3 minutes to read
The deal of the day
The Brexit deal agreed on Christmas Eve will very likely be voted through parliament today, an outcome backed by both the right of the Conservative party and Labour voters who originally voted to remain.
The FTSE had its best day since November 9th on the first trading day since the deal was announced - November 9th being particularly notable due to emerging news of successful vaccine trials. We expect debate over limitations on financial services, regulation and fishing to continue, but there is little doubt that the agreement removes a great deal of uncertainty amid a particularly difficult phase of the pandemic.
You can find more on our outlook in light of Britain's departure from the EU, including the implications for second home owners in France, here.
Betting on a recovery
Optimism in financial markets extends beyond the FTSE as investors bet on a recovery that will be underpinned by global governments willing to step in with stimulus where necessary.
Shares in Asia hit a new record overnight and an FT poll of economists published yesterday suggests the eurozone economy will grow next year at its fastest rate since the single currency was launched more than two decades ago. Meanwhile, UK jobseekers are increasingly optimistic about their prospects for the year ahead.
Covid-19 in the UK
The government yesterday reported more new cases of Covid-19 than any day since mass testing was introduced this summer. As a result, more parts of the UK will be placed under tier 4 restrictions today, according to this morning's Times.
The news comes as regulators this morning approved the vaccine developed by Oxford University and AstraZeneca, which could tee up a roll out as early as next week, according to a report over the weekend in the Sunday Telegraph. Meanwhile, the new variant of the virus does not appear to cause more severe illness than other variants, according to a new study by Public Health England.
Escape to the country, continued
UK house prices capped 2020 7.3% higher than they were a year earlier, Nationwide said this morning. That's the fastest pace of growth in six years.
In a year dominated by the escape to the country trend, Chris Druce checks in on the country house market, where high-value properties proved to be the strongest performer during the fourth quarter. Properties valued at more than £5m saw the strongest growth in the three months to December, rising 5.1%. This pushed the annual rate of growth in that price bracket to 7.9%.
The allure of Scottish farmhouses
Like much of the UK, property market activity in Scotland has been well above the long term average, with offers accepted, viewings and new prospective buyers all up more than 40% on the five year average since the market's reopening. Farmhouses were the top-performing property type in the fourth quarter, as buyers continued to seek more space and a new work/life balance after a series of national lockdowns, writes Chris Druce.
Meanwhile, property values in Edinburgh increased by 1.7% in the three months to December. That's the strongest fourth-quarter performance in more than ten years. Properties valued over £2m were the top performer, rising 5.6% and taking the annual change to 14%.
In other news...
Forecasting the world in 2021, forecasting the UK economy in 2021, the many shapes of the recovery, scepticism about post-Covid architecture, how Covid changed the world economy, green energy funds top league table in banner year for ESG, Europe starts Covid-19 vaccination as new virus strain spreads, a deal to end the Brexit delusions, and finally, hedge funds bet on more retail misery.