Monday property news update
The looming lockdown and what it means for the property market
3 minutes to read
Lockdown looms
As England prepare's to enter a second national lockdown until at least the 2nd of December, housing secretary Robert Jenrick said yesterday the housing market will remain open. That means removal firms and estate agents can operate, and construction will continue within the guidelines.
Mark Hayward, the chief executive of NAEA Propertymark - a group that represents estate agents - tells Tom Bill that the system is already in a logjam due to the number of sales in progress and any slowdown in the conveyancing process would make the problem worse. Mr Hayward says the government should extend the stamp duty holiday in order to prevent aborted sales.
The government will publish the full regulations before Wednesday’s vote on the measures.
New support for borrowers
The new measures will include an extension of the mortgage holiday scheme that was due to end this coming weekend. Borrowers that are yet to take a payment holiday can request one lasting up to six months and those already on payment holidays can request an extension up to the six month limit.
It's worth reiterating Knight Frank Finance advice from August that, though payment holidays may seem attractive, they can be taken into consideration during future mortgage applications. Borrowers may have other options, including negotiating a cut in their current mortgage rate or an extension to the term of their mortgage, both of which can result in a notable reduction in monthly outgoings.
Tracking the property market surge
The surge in housing market activity is showing few signs of slowing, according to data from different corners of the market.
Knight Frank new homes data reveals a 60% jump in new applicant volumes in October compared with the same month the previous year and a 30% increase in offers made over the same period, writes Oliver Knight. Almost a third of all new homes sales in London during Q3 were via Help to Buy, up from 15% in Q2, according to Molior.
Meanwhile country house prices grew at their strongest rate since the start of 2016 in the third quarter of this year, as buyers’ desire for space and greenery after lockdown continued to drive the market, according to new analysis by Chris Druce.
Stepping back
With much of Europe implementing new Covid-19 restrictions and the US election taking place on Tuesday, it's going to be a volatile week for the global economy.
Howard Archer, chief economic adviser to the EY Item Club, tells the Times that UK output is now likely to contract by 5 to 8% in the final quarter, down from a previous estimate of +0.3%.
The FT takes a snap poll of 18 economists at leading banks and institutions who now expect a 2.3% contraction in the Eurozone economy during Q4. That follows Friday's record Q3 numbers showing record quarterly gross domestic product growth of 12.7%.
Stepping back further
With two days until the US election, Joe Biden leads in both national and state polls.
Earnings season for the largest US companies is proving much less downbeat than analysts had feared with companies broadly reporting a shallower rate of decline in profits and sales than had been expected. Speculative investors have now increased bullish bets on US stocks to the highest level in almost two years.
Meanwhile, China’s factory activity expanded for the sixth straight month in October as business confidence grew to its strongest in years. The IMF is projecting growth of of 1.9% in 2020, followed by 8.2% in 2021.
In other news...
In a new Rural Update, Andrew Shirley reveals farmland prices remain firm for now as supply dwindles.
Plus, the South of England gets the lion’s share of housebuilding funds, Sunak changes ‘too late to save jobs’ message, Britain starts accelerated review for AstraZeneca's potential Covid-19 vaccine, the Swiss try light touch virus curbs, Brexit negotiators move close to breaking impasse over fish, and finally, the latest on Covid-19 restrictions in Europe.