Friday property news update
New lockdowns, stronger growth and the good school house price premium
3 minutes to read
All change...again
London will enter a tighter lockdown from midnight tonight. The move includes a ban on people meeting other households socially indoors in any setting and is part of a patchwork of new restrictions being introduced today across the country today.
All this is taking place while Brexit brinkmanship is reaching new highs. While today was the PM's self imposed deadline to reach an agreement, the Times reports comments from UK government officials and Charles Michel, president of the European Council, that suggest negotiations are likely to continue next week.
It's worth noting reports that the European Central Bank is likely to hold off on further stimulus until December - after the US election and when uncertainty over Brexit may have dissipated.
Reassessing the global recovery
The IMF this week revised its 2020 projections for world GDP from a -4.9% contraction to -4.4%, led by an improving outlook in New Zealand, the US and Brazil.
The speed and strength of an economic recovery following a crisis is nearly always underestimated, which inevitably leads to revisions, writes Flora Harley. However the trajectory could well be threatened by restrictions on movement being introduced across the globe, particularly in Europe.
For a run down of those restrictions, see the full piece.
All eyes on China
China’s National Bureau of Statistics will publish its estimate for third quarter GDP growth on Monday. The release will be followed closely by policymakers globally, with many hoping the world's second-largest economy will continue to surprise on the upside as it leads the recovery.
The economy is expected to have grown 5.2% in July-September from a year earlier, faster than the second quarter’s 3.2%, according to a Reuters poll.
The outlook for global property
With so many oscillating restrictions on movement and fluctuating economic data, Kate Everett-Allen checks in on key global residential markets.
Unlike the first wave of the pandemic, new restrictions across Europe, Asia and North America are more targeted, regional and time-specific. As a result, housing markets continue to function and properties continue to transact.
Whether boosted by stimulus or an overarching reassessment of lifestyles and working patterns, demand currently remains strong in many of the larger markets, including the UK, the US, Singapore, Hong Kong, Australia, and Canada. However, this may change as each government’s job and mortgage support measures come to an end, weakening consumer sentiment.
Putting a price on an outstanding school
Chris Druce this morning continues his series of analysis on property market premiums that has so far put a price on a waterfront view and the cost of living in an Area of Outstanding Natural Beauty.
Today, Chris turns his attention to schools. The analysis, which compared the sale price for properties located close to primary schools rated outstanding by Ofsted and the local authority average, reveals the premiums families pay to secure access to top-rated primary schools. For more, see the piece.
In other news...
Understanding Brexit; move over Help to Buy; LVMH offers glimmers of hope for the luxury sector; from peak city to ghost town; gold heads for first weekly drop in three; first 'no-quarantine' flights arrive in Australia; recovery could boost global income $9 trillion by 2025; and finally, cases hit records in US election battleground states.