Real Estate during COVID-19

A Quick synopsis from our associate at Knight Frank during the COVID-19 term....

Economic headlines

• Global stock markets start the week in a stronger position, with gains over the last seven days of 6% for the FTSE 100 and 10% for the S&P 500 in the US. The pound sits up 5% on the week at $1.24 as market turmoil eased slightly. 

The number of Covid-19 cases continues to climb, though at a slower rate. Spain, which two weeks ago had a growth rate above 40% per day on average, has seen this number fall to about 15 per cent.

The US continues to see increases above 25% per day, but have fallen from recent highs of nearly 40%.

Housing market implications 

• Last week, the government published detailed advice on buying, selling and moving home during the Covid-19 crisis. Lenders operating with skeleton staff had become inundated with calls and restrictions on movement were largely preventing home visits by valuers.

Banks have since been clarifying their positions. Though some have withdrawn completely from the new purchase market, others have reduced the loan-to-value ratios at which they are willing to lend and continue to do business using automated or desktop valuations, according to colleagues at Knight Frank Finance. More on this later this week.

• In the super-prime lettings market, clauses are being written into rental agreements that enable tenants to secure a property, but only start paying rent once government restrictions are lifted, according to Tom Bill.