Good morning,
The news this morning is understandably dominated by one story, the resignation of Liz Truss as prime minister. Just 45 days ago(£) she came to office, promising a radical vision of low regulation and low taxes, which was swiftly rejected by the markets.
But now the key question is: what happens next? Aside from the political game of which personality will succeed her(£) in Number 10 – with pundits predicting a three-horse race between Rishi Sunak, Penny Mordaunt and Boris Johnson(£) – there is confusion about what policies will be kept and which killed off and, crucially, about where cuts will be made.
Chancellor Jeremy Hunt is pushing ahead with plans for a fiscal statement on 31 October to help restore confidence and credibility. But given that a new prime minister will installed by 28 October, and may well decide to appoint a new chancellor, uncertainty continues to be the watchword.
The UK’s business leaders and the property industry have called for political stability as economic conditions worsen. Good luck with that.
In other news, Bank of England deputy governor Ben Broadbent has said raising interest rates to 5.25% would knock 5% off the economy. He has indicated that the bank will not raise them that high.
Blackstone’s profit has declined as it adopts a wait-and-see approach, amid tightening financial conditions and plunging stock market valuations.
Meanwhile, EG talks to Aviva Investors real estate heads Ben Sanderson and James Stevens about their plans to become one of the top five real asset businesses in Europe in the next three years.
Custodian REIT has sold its only shopping centre, offloading the largest asset that it acquired through last year’s takeover of Drum Income Plus REIT. A private buyer paid £9.3m for the 73,367 sq ft Gosforth Shopping Centre in Newcastle.
Impact Healthcare says healthcare property will retain its value despite the economic headwinds.
The shortage of sub-100,000 sq ft warehousing space means the English economy is missing out on £480m GVA per annum, a report claims. Potter Space and Savills hope the report will prompt planners to prioritise small and mid-size sheds.
Mount Anvil and Catalyst have had revised plans for their 1,228-home Acton scheme approved by Ealing Council.
And Justin Homes has sold a £40m GDV site to Optivo. The site, on Purley Way, has planning permission for 134 affordable homes.
Meanwhile, studio flats are making something of a comeback, as rising rents reverse the race for space.
And Rightmove has named its new CEO. Johan Svanström will succeed Peter Brooks-Johnson, who plans to retire after the platform’s full-year results
