Knight Frank Daily Update Tuesday 26th May
Economies reopen, the pound dips and demand surges as the lockdown lifts
2 minutes to read
Good morning,
Need to know
Shares in Asia climbed overnight on the back of growing optimism over the reopening of economies, as Japan ended its state of emergency, Spaniards returned to bars wearing masks, business confidence bounced back in Germany, and Boris Johnson announced a number of retailers could open in June.
England’s outdoor markets and car showrooms will re-open from the 1st of June, with other non-essential shops opening from the 15th of June provided the government can control the spread of the virus, the PM said yesterday.
The pound is heading for this year's worst monthly slide as the end-of-June deadline to extend the Brexit transition period nears. Talks between negotiators resume at the beginning of June.
The property market
Demand for UK residential property surged in the first full week of trading since the market reopened, according to this analysis from Tom Bill.
The number of new prospective buyers registering in London was 28% higher than the five-year average in the week ending 23 May, as seasonal patterns of demand continue to be skewed by the Covid-19 pandemic. It's well worth clicking through to see the chart.
Demand in the lettings market rebounded in a similar way. The number of new prospective tenants in London and the Home Counties was 9% higher than the five-year average, which compared to a 59% decline in the first week of lockdown.
Further analysis of data spanning the lockdown by Chris Druce indicates prospective buyers are looking to move outside the capital in greater numbers in response to the pandemic.
While 8% of potential buyers based in London were looking in the South West before lockdown, this has jumped to a fifth since restrictions were introduced.
Andrew Shirley brings you his run down of the latest data and market news from the rural sector, spanning everything from commodity prices to agri-food tariffs.
Stephen Springham continues his weekly pieces on the state of the retail market with analysis of ONS retail sales figures for April. Sales values slumped by -18.1% year-on-year, more than four times the rate of decline witnessed in March (-3.9%), itself a new low.
Though online spiked 15.8% month-on-month, Stephen outlines why that is unlikely to be sustained, and suggests commentary surrounding the figures reveals an underlying confusion between choice and necessity.
For more on the sector, Anna Ward brings you a UK retail edition of our Intelligence Talks podcast. Stephen joins retail agency partner David Legat to share their insights on how the gradual lifting of the lockdown could play out from both a retailer and landlord perspective.
In case you missed it on Friday, have a listen to our podcast on how European property markets are faring, covering everything from travel bubbles to alpha cities and government spending.
You can listen via Apple, Spotify and Acast.
If you have any questions, please contact me, or the team.