The Knight Frank Daily Update Tuesday 12th May
Returning to work, advice for estate agents and the extension of mortgage holidays
3 minutes to read
Good morning,
Economic headlines
The UK government has published its plan to ease the lockdown in phases starting tomorrow, including new guidance for eight sectors on how to operate during the outbreak.
Anyone in England will be allowed one-to-one contact with people other than those they live with, as long as they remain outside and two metres apart, and workers should now consider returning to work where it is safe to do so, the PM said yesterday. Primary schools in England may begin opening from the 1st of June.
US futures and Asian stocks dipped slightly overnight as investors weighed a potential uptick in Covid-19 cases in South Korea, illustrating the challenges countries around the world face as they ease restrictions on movement. Global equities have now recouped almost half of the losses inflicted since the onset of the crisis, after hitting their lowest point on the 23rd of March.
The World Health Organization is the latest body to back so-called challenge trials to accelerate vaccine development, though its support is conditional. The trials, in which volunteers are intentionally infected with Covid-19, are a mainstream approach in vaccine development and have been used in malaria, typhoid and flu.
Meanwhile, scientists from the University of Oxford are starting a first-of-its-kind study to see whether available drugs can help keep older, more vulnerable people with mild cases of Covid-19 from becoming severely ill.
Property market headlines
While there was no specific mention of estate agents in government advice published yesterday, "surveyors" were included as an example of workers who would need to follow guidance to work safely in other people's homes.
In an interview with Tom Bill, Mark Hayward, chief executive of industry body NAEA Propertymark, said he's "cautiously hopeful" the government will publish sector-specific advice for estate agents later this week.
As Chris Druce reported last week, measures under consideration by officials include masks, hand sanitiser and alcohol wipes being required during viewings, which could be limited to two people plus the agent.
Faisal Durrani of Knight Frank's commercial research team has this analysis of employee densities in London, suggesting that the design and layout of offices will need to be revisited and that businesses may turn to the flexible office market as a stop gap solution while they assess how best to house their staff in safe and secure environments.
As agents wait for further guidance, Chris speaks to Francesca Leighton-Scott, who handles country sales from Bath, and Jack Alisiroglu, head of the Battersea and Riverside office in London. The piece adds to a growing body of data suggesting prospective buyers and renters are planning for life after lockdown, whether that be buy-to-let investors looking to lock in low borrowing costs, or families acting to lock in school places.
Flora Harley's analysis of real-time economic indicators reveals an uptick in activity for three-quarters of our key global cities. Berlin, Milan and Sydney led gains.
Andrew Shirley reveals that most respondents to our Rural Sentiment Survey expect the government to make food security a higher priority following the crisis, and outlines what to expect when the Agriculture Bill returns to House of Commons this week
Finally, the mortgage holiday scheme may be extended to up to a year as part of new measures under consideration by the Financial Conduct Authority aimed at easing pressures on homeowners.
If you have any questions, please contact me, or the team.