The Knight Frank Daily Update Thursday 14th May
Antibody tests, construction , the return of in-person valuations and Ferraris
2 minutes to read
Good morning,
Need to know
A test to tell whether someone has had Covid-19 passed Public Health England checks in a long-awaited development that Boris Johnson previously said would be a “game-changer”.
The tests show who has already had the virus and may have a degree of immunity, meaning those people can potentially resume social contact with others – although scientists still aren't sure having antibodies indicates long-term immunity.
You can find a useful tool in tracking the progress of vaccines in development here.
In an encouraging sign, infection rates are doubling in most countries every 10 days, Johns Hopkins said last night. At the end of March, the epidemics in most countries were doubling in fewer than 8 days.
The UK yesterday exhibited the lowest number of new cases since March 31.
Meanwhile, Ryanair said it would resume operating up to 40% of its normal flight schedule from the 1st of July.
Stocks across Asia-Pacific fell overnight after the head of the US central bank Jay Powell said “additional policy measures” may be needed to prevent greater long-term damage to the US economy.
The property market
Yesterday's reopening of the housing market brought with it a flurry of activity. Our latest Mortgage Monitor indicates valuers are resuming physical inspections - a move that will enable lenders to begin clearing a backlog of mortgage applications.
Accord Mortgages was among the first lenders to say physical valuations would resume as it increased its maximum loan-to-value on residential mortgages to 85% and raised its maximum property value for residential lending to £2 million.
Construction firms across England and Wales are continuing the process of gradually reopening sites.
Oliver Knight's interview with Home Builders Federation Policy Director David O'Leary suggests a combination of sales rates and the strength of supply chains will dictate the pace of output over the coming months.
The initial signs are that sentiment has held up relatively well, with reservations still being taken despite sales and marketing suites being closed, according to Mr O'Leary.
Taylor Wimpey said yesterday it would begin a phased reopening of sales centres and show homes, adding that sales rates have remained stable since 23rd of April, with signs of increased activity and customer interest over the last week.
The UK joins other European housing markets in the process of normalising with viewings and transactions now also permitted in France, Spain, Portugal, Switzerland and Germany, reports Kate Everett-Allen.
Flora Harley's analysis of global economic data includes an Oxford Economics survey of businesses in which 39% of respondents expect the global recession to last three quarters, with 15% expecting it to last into 2021.
Finally, Andrew Shirley continues to monitor the outlook for luxury assets with an update on classic cars that reveals Ferraris have been the star performer so far this year.
If you have any questions, please contact me, or the team.