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Asian Agri Committed to Preventing Forest and Land Fires in the Midst of the Pandemic

TEBO, INDONESIA – Media OutReach – 22 June 2021 – In the midst of the Covid-19 pandemic, Asian Agri remains committed to preventing forest and land fires in the villages around company’s operational areas.

“In spite of the pandemic, Asian Agri business unit PT Rigunas Agri Utama (PT RAU), remains committed to implementing the Fire Free Village Program (FFVP) in participating villages to prevent fires. Today (9/6), there are five villages signing the FFVP MoU: Teriti Village, Tuo Sumay Village, Muara Sekalo Village, Suo-Suo Village, and Semambu Village. Through the FFVP, the company works closely with village officials, government agencies, TNI and Polri to assist and support fire prevention activities and provide firefighting assistance where required by the villages,” said Bibit Sembiring, Estate Manager of PT RAU, Kebun Bungo Tebo. He was accompanied by Hafiz Hazalin Sinaga, Manager of the Asian Fire Free Village Program. Hafiz added that Asian Agri started the Fire Free Village Program in Jambi in 2017 to great success.

“Asian Agri is a plantation company that is part of the Royal Golden Eagle (RGE) group, which manages a group of resource-based manufacturing companies with global operations. We always strive to benefit the community and the environment where we operate. One of our many efforts is the Fire Free Village Program, which raises awareness in the village communities on the dangers of forest and land fires, equipping them with the knowledge and resources to prevent forest and land fires in their villages,” said Hafiz. RGE was founded by Sukanto Tanoto, and will celebrate its 55th anniversary in 2022.

“The Fire Free Village Program started in Jambi in 2017, has proven effective in preventing forest and land fires. Prior to the program, the average fire size in the village was 20 hectares. However, since joining the Fire Free Village Program, there are two completely fire-free villages, namely Muara Sekalo Village and Teriti Village. Meanwhile, in Tuo Sumay Village, Semambu Village and Suosuo Village, fires have decreased considerably, at around 2 hectares per year. This achievement earned the five villages awards from the Tebo Police Chief in 2020,” Hafiz added at the MoU signing event for the DBA Program at the PT RAU office, Sumay District, Tebo Regency.

The Head of Suosuo Village, Urista, expressed appreciation for the success of PT RAU’s Fire Free Village Program, and hoped the FFVP would continue and that his fire-prone village will remain fire-free.

“We thank the Manager of PT RAU for guiding us in preventing forest and land fires. Thanks to the Fire Free Village Program, the number of fires in our village have greatly reduced. We hope this program can continue to be in place and grow, especially in terms of monitoring and establishing monitoring posts in fire-prone locations, considering the size of the forest and potential fire-risk locations in our village,” said Urista.

The MoU signing ceremony was attended by the Estate Manager of PT RAU, Bibit Sembiring; Asian Agri Fire Free Village Manager, Hafiz Hazalin Sinaga; PMKS PT RAU Manager, H Purba; Public Relations of PT RAU, Bastari; Head of Tuo Sumay Village, Hazri; Teriti Village Head, Raden Sofli; Chief Des Suosuo, Urista; Head of Muaro Sekalo Village, Suherman; Head of Semambu Village, Akmal; Fire Care Society, Bukhari, Raden Kamal, Saipul, Edi, Ade Chandra, and TNI, Kopda Julhendri.

About Asian Agri:

Asian Agri is one of Indonesia’s largest palm oil producers. Founded in 1979, the company today manages 100,000 hectares of plantation land and employs over 25,000 people. A pioneer of the Indonesian government’s Trans-National Government Migration (PIR-Trans) program, Asian Agri currently works with 30,000 Plasma Scheme smallholders in Riau and Jambi who operate 60,000 hectares of palm oil plantations, and independent smallholders who manage a total 41,000 hectares.

Implementing a strict “no burn” policy since 1994 and best practices in sustainable plantation management, Asian Agri has helped its smallholder partners improve productivity, yield and supply chain traceability, while assisting them obtain certifications. The company’s mills are technologically advanced and energy self-sufficient, minimizing greenhouse gas emissions.

Asian Agri (PT Inti Indosawit Subur) is a member of the Roundtable on Sustainable Palm Oil (RSPO) since 2006. More than 86% of its owned plantations in North Sumatra, Riau & Jambi provinces and 100% of Plasma Scheme smallholder plantations in Riau & Jambi provinces have been RSPO certified. All its owned plantations and those owned by scheme smallholders ISCC (International Sustainability & Carbon Certification) certified since 2014. In 2019, the company also achieved 100% ISPO (Indonesian Sustainable Palm Oil) certification.

The company’s operations are ISO 14001 certified, while its Learning Institute and nursery research center in Riau province, Indonesia are both ISO 9001 certified. Asian Agri’s laboratory at the Center for Research and Development in Tebing Tinggi is accredited by the National Accreditation Committee under the ILAC Mutual Recognition Arrangement (ILAC MRA).

#AsianAgri

Mastercard Foundation Appoints Robin Washington to Board of Directors

TORONTO, ONTARIO – African Media Agency – 22 June 2021 – The Mastercard Foundation announced changes to its Board of Directors. Robin L. Washington was appointed to the Board and long-time Board member President Festus G. Mogae will be retiring.

“I’m thrilled to welcome Robin Washington to the Board,” says Zein M. Abdalla, Mastercard Foundation Board Chair. “As you can see from Robin’s biography, she brings a fantastic range of operational experience and insight that will benefit the Foundation enormously as we continue to expand our impact.”

Robin L. Washington is currently a member of the Board of Directors of Alphabet, Inc., Honeywell International, Inc., and Salesforce.com. She served as Vice President and Chief Financial Officer of Gilead Sciences, Inc. from May 2008 until November 2019, where she oversaw Global Finance, Facilities and Operations, Investor Relations and the Information Technology divisions. Prior to Gilead, she was the Chief Financial Officer of Hyperion Solutions, Inc. Ms. Washington is a certified public accountant. She holds a bachelor’s degree in business administration from the University of Michigan and an MBA from Pepperdine University.

“The Mastercard Foundation does not shy away from the complex challenges facing the world in these unprecedented times,” says Washington. “They have an ambitious goal that will drive meaningful change and impact the lives of millions of young people living in poverty. I am looking forward to being a part of the Foundation’s Board and contributing to this important work.”

Current Board member President Festus G. Mogae is retiring from the Board after 11 years of service. He led the Republic of Botswana from 1998 to 2008 and focused his efforts on fighting poverty and unemployment as well as reducing the spread of HIV/AIDs. President Mogae is the recipient of several international awards, including the Ibrahim Prize for Achievement in African Leadership and the Grand Cross of the Légion d’honneur presented to him by French President Nicolas Sarkozy in 2008 for his exemplary leadership in establishing Botswana as a “model of democracy and good governance.” President Mogae currently serves as a Trustee of the Rhodes Trust and is an Honorary Member of the American Academy of Arts and Sciences.

“President Mogae is deservedly celebrated for his work across Africa and globally. He has long been an advocate for peace and a supporter of human rights, and his active leadership has enabled the advancement of economic and social progress on the continent,” says Abdalla. “On behalf of the Foundation, I sincerely thank him for his wisdom and service over the years. He will be deeply missed.”

Mastercard Foundation Board of Directors

The Mastercard Foundation Board of Directors currently includes:

  • Zein Abdalla, Mastercard Foundation Board Chair and retired President of PepsiCo, Inc.
  • Valerie Amos, CH, Director of SOAS, University of London and former Under-Secretary-General for Humanitarian Affairs and Emergency Relief Co-ordinator
  • The Honourable Louise Arbour, Jurist in residence at Borden Ladner Gervais LLP and former justice of the Supreme Court of Canada
  • Doug Baillie, Retired Chief Human Resources Officer of Unilever
  • Craig Calhoun, Professor of Social Sciences, Arizona State University
  • Jennifer Fonstad, Co-Founder, Aspect Ventures
  • Dr. Jendayi Frazer, Managing Partner, African Exchange Holdings Company; President of 50 Ventures, LLC; and former U.S Assistant Secretary of State for African Affairs
  • Jay Ireland, Retired President and CEO, GE Africa
  • Jim Leech, CM, Senior Advisor with McKinsey & Company; former Chancellor of Queen’s University; and retired CEO of Ontario Teachers’ Pension Plan
  • Michael Sabia, Deputy Minister of Finance Canada and former Director of the Munk School of Global Affairs & Public Policy at the University of Toronto
  • Ellen Johnson Sirleaf, Former President of Liberia and Nobel Peace Prize recipient
  • Robin L. Washington, Former Executive Vice President and Chief Financial Officer at Gilead Sciences, Inc.

About the Mastercard Foundation

The Mastercard Foundation is a Canadian foundation and one of the largest foundations in the world with more than $39 billion in assets. For more than a decade, the Foundation has advanced financial inclusion and education in Africa, improving the lives of more than 45 million people living in poverty. The Foundation was created in 2006 through the generosity of Mastercard when it became a public company. Since its inception, the Foundation has operated independently of the company. The Foundation’s policies, operations, and program decisions are determined by its Board of Directors and President and CEO. For more information on the Foundation, please visit: www.mastercardfdn.org

#MastercardFoundation

Lenovo Reveals New ThinkEdge Portfolio of Embedded Computers

New ThinkEdge SE30 and SE50 enable digital transformation at the edge for healthcare, retail, manufacturing and all data-dependent industries

HONG KONG SAR – Media OutReach – 22 June 2021 – Lenovo™ announced today its all new portfolio of embedded computers for the edge. Building from the existing edge portfolio from Lenovo, the ThinkEdge devices – the new ThinkEdge SE30 and ThinkEdge SE50 – are small, rugged, and powerful enough to meet the demanding needs of enterprise data processing, security and scalability at the edge.



ThinkEdge SE30



ThinkEdge SE50

Accelerating Productivity at the Edge

It is estimated that by 2025, 75 percent of enterprise-generated data will be processed at the edge. 1 The global pandemic has become a catalyst for digital transformation and accelerated the push to the edge for many levels of the enterprise, as new solutions for operations and sales are introduced in global markets. Edge computing applications are numerous and growing rapidly. Retailers are implementing more automated checkouts and dynamic signage, real-time store traffic monitoring, inventory and fulfilling. Manufacturers are further automating assembly lines with predictive maintenance alerts and utilizing smart cameras for safety and quality inspections. Healthcare turns to edge computing for remote patient monitoring and medical device integration. With increased need for powerful, real-time insights across industries, the edge is becoming more critical and complex than ever.

Lenovo’s December 2020 survey of IT executives and managers found that edge computing solutions are an urgent priority and their deployment is on a fast-track. Fifty-nine percent of those surveyed stated they are “looking to implement new edge computing solutions within the next 6 months.” And 82 percent stated that “real time data collection and analysis is where edge solutions are making the most impact on their business.” 2

ThinkEdge Portfolio

The new Lenovo ThinkEdge devices are powered by Intel technology and built for the data needs of tomorrow. The embedded edge computers are for customers who need faster processing power, better security, and scalability. With the right data securely on hand for when it matters, businesses can be more efficient, insightful and competitive.

“Edge computing is critical infrastructure for intelligent transformation within the enterprise,” said Jon Pershke, vice president of Strategy and Emerging Business for Lenovo’s Intelligent Devices Group. “The new products in the ThinkEdge portfolio are purpose-built devices designed to be networked on premise or embedded in solutions to give Lenovo’s customers an advantage in performance, security and scalability.”

The new ThinkEdge SE30 is a small and rugged compute device for edge workloads. It includes the latest 11th Gen Intel® Core™ i5 vPro® processors for industrial computing. The processor improves compute power, accelerates AI workloads, and is built for the challenges of edge implementations in enterprise with extended temperature support from -20 to +60 Celsius, long-life reliability, as well as enhanced security and manageability features.

The ThinkEdge SE30 will support global 4G connectivity and have 5G availability with key carrier support in the second half of this year3. 5G edge devices enhance wireless connectivity to match the low-latency, high-reliability, and high-capacity capabilities of existing wireline solutions with both improved agility of capabilities and better return on investments.

Embedded applications for the ThinkEdge SE30 include kiosks and ATMs for smart retail, automated production lines in manufacturing, and medical device monitoring in healthcare, among others.

Key Features / Specs:

  • 11th Generation Intel® Core™ i5 vPro® processors for industrial computing
  • Up to 16GB memory and 1TB storage4
  • Fan-less, operational temperature range of -20 to 60 Celsius
  • Both 4G 1 and 5G 1 modules

The new ThinkEdge SE50 is designed for versatile applications that require higher analytics and data processing at the edge. The embedded edge compute device includes an Intel® Core™ i5 or i7 vPro® processor for industrial computing and up to 32GB of memory.

End users can deploy the ThinkEdge SE50 to aggregate and analyze real-time data from distributed IoT devices. This smart edge device can filter and forward IoT data across the WAN to the cloud or data center. Customers have the option to enhance their edge AI strategy with cutting edge silicon and optimized software leveraging the OpenVINO™ toolkit.

Key Features / Specs:

  • Intel® Core™ i7 or i5 vPro® processors for industrial computing
  • 32GB memory and up to 2TB storage5
  • Fan-less, operational temperature range of 0 to 50 degree Celsius, and IP50 rating
  • 2-liter design with full industrial I/O


Lenovo’s Solutions Give Customers the Edge

The same commitment to continuous innovation that drives Lenovo’s global leadership in solutions and services development provides the foundation for its edge device roadmap. Lenovo’s portfolio of ThinkEdge devices gives enterprises the flexibility to specify what they need today with the value to include processing capacity to grow for future functionality.

The ThinkEdge portfolio is supported by a growing group of industry-leading software providers, OEMs and system integrators to deliver devices that become a seamless part of the overall ecosystem. The ThinkEdge Certified Solutions Partners include Telit, IMS Evolve, Software AG and many more.

ThinkEdge devices are ready to be embedded in solutions to accelerate time to market and improve efficiencies for OEMs. Lenovo, through its OEM Solutions business, provides secure, reliable hardware and services to design purpose-built appliances and solve industry pain points.

1 Gartner ‘What Edge Computing Means for Infrastructure and Operations Leaders’

2 Lenovo commissioned an online survey of 288 U.S. IT managers in roles associated with edge computing in organizations that employ at least 500 people, the survey was conducted December 12-18, 2020.

3 Requires 5G network service and separately purchased cellular data plan that may vary by location. Additional terms, conditions and/or charges apply. Connection speeds will vary due to location, environment, network conditions and other factors.

4 Available user storage is less due to many factors, including operating system, software and functions utilizing part of this capacity.

5 Available user storage is less due to many factors, including operating system, software and functions utilizing part of this capacity.

About Lenovo

Lenovo (HKSE: 992) (ADR: LNVGY) is a US$60 billion revenue Fortune Global 500 company serving customers in 180 markets around the world. Focused on a bold vision to deliver smarter technology for all, we are developing world-changing technologies that power (through devices and infrastructure) and empower (through solutions, services and software) millions of customers every day and together create a more inclusive, trustworthy and sustainable digital society for everyone, everywhere. To find out more visit https://www.lenovo.com/hk/en/pc, follow us on LinkedIn, Facebook, Twitter, YouTube, Instagram and read about the latest news via our StoryHub.

LENOVO and THINKEDGE are trademarks of Lenovo. Intel, the Intel logo, and other Intel marks are trademarks of Intel Corporation or its subsidiaries. Other company, product and service names may be trademarks or service marks of others and are the property of their respective owners. ©2021, Lenovo Group Limited.

#Lenovo

Epicor Reaffirms Industry Cloud Leadership with a Total Refresh of Its Manufacturing ERP Platform, Rebranded Kinetic

New name, advanced features, enhanced web user interface, same dedication to better serve the manufacturing industry

Hong Kong SAR – Media OutReach – 22 June 2021 – Epicor today released Kinetic, the cloud-based ERP solution built with manufacturers, for manufacturers, as part of its continued commitment to build the best-in-class Industry Cloud. Epicor does not offer a one-size-fits all ERP solution, it designs tailored technology platforms laser focused on the needs of the end-to-end supply chain industries it exclusively serves, the essential businesses who make, deliver and sell goods.

The new Kinetic platform offers an intuitive, configurable and guided user experience with embedded learnings, artificial intelligence, and built-in social collaboration tools to better utilize real-time data to accelerate customer profits. The new browser-based User Interface (UI) is simpler, more intuitive and can be accessed from any device, saving customers valuable time and offering greater access to critical business data. The new Application Studio tool offers low-no code customization so customers can build complex configurations with visual impact smartly and produce web deployable designs for use in ecommerce sites. Kinetic now allows users to configure applications with layers using a visual designer with rules and events, move elements around with drag and drop functionality, and preview and validate changes before going live.

Epicor piloted Kinetic in a controlled release environment with over 100 customers and implemented nearly 500 pieces of customer feedback, proof that this release is made with manufacturers, for manufacturers.

Improved Future-Focused Features:

  • Cloud Solutions for Regulated Industries (Medical Devices & A&D): Kinetic is the only multitenant cloud solution in the market that is designed to meet the needs of medical device manufacturers for software validation under FDA regulations. In addition, Kinetic is achieving CMMC (Cybersecurity Maturity Model Certification) certification for Aerospace & Defense manufacturers.
  • Epicor Commerce Connect 2.12: Modernized design for an improved look and feel alongside punchout capabilities, to support greater ease of use for online customers.
  • Epicor ECM 21.1: New security feature for document workflow approvals and new custom revision numbering feature for Medical Device and A&D manufacturers. 
  • Epicor EDI: New purpose-built API endpoints for real-time connectivity and error messages that support over ten standard demand-side and supply side documents.
  • Spreadsheet Server: Leveraging data and the MS Excel® tool for reporting, Spreadsheet Server simplifies financial reporting for cloud users.

“At Epicor, we understand deeply the industries we serve, which is why the upgrades we have made to Kinetic to modernize and future-proof the platform were architected alongside our customers to better help them scale and thrive. This journey has been many years in the making, and our goal is that the new product name and the enhanced platform convey the ongoing momentum of Epicor, our continued industry focus, and our goal to deliver the defacto Industry Cloud.”

––Himanshu Palsule, Epicor President

To learn more about Kinetic, please see here.

About Epicor

Epicor Software Corporation equips hard-working businesses with enterprise solutions that keep the world turning. For nearly 50 years, Epicor customers in the manufacturing, distribution, retail, and automotive industries have trusted Epicor to help them do business better. Epicor’s innovative solution sets are carefully curated to fit customer needs and built to respond flexibly to their fast-changing reality. With deep industry knowledge and experience, Epicor accelerates every customer’s ambitions, whether to grow and transform, or simply become more productive and effective. Visit www.epicor.com for more information.

Epicor, the Epicor logo, and Kinetic are trademarks or registered trademarks of Epicor Software Corporation, registered in the United States and other countries. Other trademarks referenced are the property of their respective owners. The product and service offerings depicted in this document are produced by Epicor Software Corporation.

#Epicor

Appier adds omnichannel chatbot platform BotBonnie to its AI-powered solutions to boost conversational marketing

BotBonnie becomes available on Appier today following the acquisition agreement in May

TAIPEI, TAIWAN Media OutReach22 June 2021 – Appier (TSE: 4180) today announced the launch of BotBonnie, an omnichannel conversational marketing platform, boosting Appier’s suite of AI-powered solutions that are designed to help customers intelligently navigate the complex customer journey on messenger services. The launch today marks Appier’s debut in the conversational commerce and marketing space, a move that is in line with their customer-centric approach to full-funnel marketing strategy. BotBonnie is available across the Asia Pacific markets in English, Japanese and Traditional Chinese.

According to Gartner1, customer loyalty is created when businesses help customers solve their problems, but at the same time, customer service interactions are nearly four times more likely to lead to disloyalty than loyalty. Gartner cites the deployment of chatbots as one strategy to increase digital containment where customers can self-serve to solve their issues i.e. freeing up customer service agent’s time to work on solving priority issues for customers. An omnichannel chatbot platform like BotBonnie is adept at identifying marketing scenarios and offers great flexibility for customers to implement their chat solutions in one stop across multiple messaging channels, so businesses can boost sales and build customer loyalty.

By adding BotBonnie to Appier’s suite of AI-powered solutions, Appier customers can benefit from the full strength of an AI-informed platform and analytics to navigate the entire customer journey seamlessly across offline and online environments. Data enrichment from conversational data analysis can contribute to the learning capabilities of AI models and enable more robust predictions of customer behaviour and take personalized services to the next level.

In addition, BotBonnie can foster Appier’s product synergy from user prospecting and acquiring, retention and engagement to the transaction. By leveraging conversational AI chatbot, customers can identify and retarget high LTV customers through CrossX advertising solutions, then direct customers to the social media channels like Facebook Messenger, LINE and even Google Business Messages to continue automatic customer engagement. By analyzing customers’ interactions, AIQUA can trigger personalized web/app pushes or AiDEAL can deliver suitable coupons to convert new users to customers.

Furthermore, conversational data analysis allows companies to better understand customer trends and adjust the level of personalization at every touchpoint. For instance, customers can benefit from the conversational unstructured data utilized by AIXON, Appier’s data science platform to generate valuable business insights and enhance prediction accuracy.

Conversational commerce is a global phenomenon on the rise as total spend over conversational commerce channels will reach $290 billion by 2025 globally; rising from $41 billion in 2021. This is a 590% increase over the next four years. The entire sales process, from product discovery to checkout, can be handled by chatbots2. Gartner3 predicts that by 2023, 40% of enterprise applications will have embedded conversational AI from below 5% today. BotBonnie’s expertise in FMCG, chain store, finance, education, automobile and e-commerce will further speed up Appier’s customer expansion.

“Customers have fueled the growth of commerce in Asia as the pandemic continues to loom over this region the past year and a half. Retailers and eCommerce brands have contributed to the maturity of conversational commerce, and AI chatbots can lead to more natural interactions for customers to engage with commerce on messengers,” said Chih-Han Yu, CEO and co-founder of Appier. “Adding BotBonnie to our product lineup of AI solutions lets us extend our capability to messenger engagement and our customers can tackle all aspects of the customer journey in one-stop with Appier. Businesses looking to thrive in the new normal have to embrace the customer-centric approach and hop on the conversational marketing train because it has the power to turn a customer into a returning, loyal customer.”

“There is so much synergy between BotBonnie and Appier, and today’s launch will truly bring the complete omnichannel experience for our customers to achieve hyper-personalized experiences across the entire customer journey from offline to online,” added Roy Lo, CEO and co-founder of BotBonnie. “Joining Appier enables BotBonnie to expand our services to the world. Combining Appier’s strong AI and data analysis capabilities with BotBonnie’s experience in conversational commerce, I believe our products will really bring to life the power of conversational marketing to our customers in Asia Pacific and help them succeed and thrive in the new normal.”

Following today’s closing of the acquisition of BotBonnie, their employees will now formally be Appier employees and continue their operations under Appier. CEO Roy Lo, will continue his role to lead the BotBonnie team, partnering with the team at Appier to bring greater alignment and synergy to all customers.

1 Improve customer experience to gain loyalty

2 How conversational commerce will make its voice heard

3 Emerging Technologies: Tech Innovators in Conversational AI and Virtual Assistants

About Appier

Appier is an AI SaaS company on a mission to make AI easy, by making software intelligent. Founded in 2012, Appier has 17 offices across APAC, U.S. and Europe and is listed on the Tokyo Stock Exchange. Visit www.appier.com for more information.

#Appier

Lao Skyway to Resume Flights As Covid-19 Cases Dwindle

Local domestic airline Lao Skyway has announced it will resume certain flights from this Friday.

Local domestic airline Lao Skyway has announced it will resume certain flights this Friday.

Counterfeit Vaccination Certificates and Travel Documents Circulate in Laos

Counterfeit vaccination certificates in circulation

Authorities have clarified a rumor regarding the circulation of counterfeit Covid-19 vaccine certificates and travel documents.

UK Holmes: London Property Market 2021 Mid-Year Review

HONG KONG SAR – Media OutReach – 22 June 2021 – With the UK experiencing the worst health crisis in a century and the greatest economic contraction in 300 years, it was astounding to many that the Office for National Statistics (ONS) reported that national house prices climbed 7.8% by the end of 2020. Heading into 2021, other factors have come to stir the market, including the Stamp Duty Land Tax (SDLT) holiday, the impact of a third lockdown, and the after-effects of Brexit. With so many points of uncertainty and conflicting forces affecting the UK Housing market, UK Holmes provides a London mid-year market review for an overview of the price action.

London Growth Lags National Indices: A Tale of Two Cities

In March, London was identified as the UK region with the lowest annual growth – for the fourth consecutive month. The year-on-year data reveals UK growth on a firm upward trajectory whilst the price curve for London is trending in the opposite direction.

Annual house price growth for UK and London:

Region

Jan 2021

Feb 2021

March 2021

UK

8.0%

9.2%

10.2%

London

5.6%

4.4%

3.7%

The London market is essentially running at two speeds; Inner London boroughs which have a high concentration of flats have been languishing as buyers push further out in search of greater space and better value for money, while the outer London boroughs which feature a higher proportion of detached housing with gardens have experienced stronger growth.

The ONS data for London revealed that in the year to March 2021, the price growth for flats was just 1%, lagging well behind terraced properties (7.2%), semi-detached (6.2%) and detached (5.3%).

Government Stimulus Programs: Will the Boom turn into a Bust?

One of strongest triggers which sent sales activity into a frenzy was the SDLT holiday, providing up to £15,000 tax relief on a property purchase of £500,000. With the UK having experienced three lockdowns due to the pandemic, the government had no choice but to extend the furlough program and other initiatives supporting businesses and the self-employed. Despite the SDLT holiday due to expire at the end of March 2021, the housing industry successfully lobbied the government to extend this deadline to September on the grounds that the long delays in buyers reaching completion would result in thousands missing out on the tax saving.

As history has shown, government intervention in the housing market has often led to distortions in the balance between supply and demand leadings to booms and then busts. The valid concern is whether this time will be any different.

A Sharp Rebound in Economic Performance

Whilst the 2020 real-estate bull market gave every impression of being unhinged from the broader economy due to government stimulus efforts, this state of affairs is unlikely to prevail over the longer term. The UK economy is highly dependent upon consumer spending and, with the easing of lockdown restrictions, high frequency indicators of economic activity including motor vehicle traffic, retail footfall and restaurant bookings have increased.[1]

The reason for this sharp rebound in economic activity and consumer confidence is down to one key factor: the success of the UK government’s vaccination program. By early June more than 75% of the national population had received at least their first jab. This encouraged the BoE to upgrade its 2021 GDP forecast to 7.25% in early May, a substantive increase on the 5% it had forecast just three months earlier. With the economy performing better than expected, GDP in April was 3.7% below the pre-pandemic level in February 2020, the smallest gap since Covid-19 reached the UK.

Consumer Sentiment and Market Shifts

The first quarter saw annual house price growth surge to a seven year high. Knight Frank established that in the month of March a string of decade-long records were broken, including the highest number of new prospective buyers registering, the highest number of offers accepted, and the fourth highest month for property viewings.

Aside from the government stimulus, the reasons for the market hitting these 10-year highs can be traced back to consumers’ changing preferences. Out of the lockdown experience emerged the key home-buyer preferences for size, space and mobility – larger homes, outdoor space, and increased mobility as the daily office commute became redundant. The experience of home becoming a place of work, home-schooling, and exercise prompted residents in central London to migrate to outer boroughs or the home counties in search of an enhanced lifestyle and better value for money.

Market Direction and Best Buying Opportunities

With optimism that the worst of the pandemic in the UK is behind, UK Holmes reports that the economy is on track to rebound sharply. A survey of leading economists by Bloomberg forecast that the UK will lead the recovery amongst major European nations with its fastest growth in almost half a century.

One of the biggest issues influencing the direction of the London property market is the tapering and withdrawal of the SDLT Holiday, which up to this point has driven demand as buyers rushed to beat the deadline. Should this demand collapse at the point where increased supply is coming onto the market, there is the very real risk that prices will fall.

UK Holmes believes that the next 6-12 months will offer astute investors in London property excellent buying opportunities. The inner-city areas are being reinvigorated by strong growth in the retail and hospitality sectors and offices are reopening. The market for flats, heavily depressed over the past 12 months, won’t remain in the doldrums permanently. However, UK Holmes is also firmly of the opinion market volatility will remain for some time. This will cause buyer’s remorse for those who fail to fully understand the fast-evolving market dynamics.


[1] Bank of England, Monetary Policy Report, May 2021

About UK Holmes

UK Holmes is a London-based residential property buying agent providing offshore buyers with strategic advice based upon a thorough understanding of their real-estate requirements. UK Holmes employs London’s House Detective, a property professional with 12 years’ experience. His in-depth knowledge of how to successfully navigate the complexities and pitfalls of the London market to find customers their ideal home provides true peace of mind. To learn more, please visit www.ukholmes.com.

#UKHolmes