Saturday, December 31, 2005 
The "P" word amongst Polite Society Whenever in a group situation with friends or relatives above a certain age, it is fascinating to witness just how rapidly the topics move on to reach the inevitable "house price discussion".
Scotsman.com: Housing market set to rise out of 'slump' Britain's property market has suffered its worst performance in half a decade, but prospects for 2006 are brighter after a rally in price growth towards the end of this year, economists said yesterday.
Telegraph: The bigger the better The "3 G" family is on the rise. Expensive housing, poor childcare and inadequate pensions mean grandparents are living with their children and bringing up their grandchildren.
Rochdale Observer: Tenants face rent rise almost triple inflation Tenants in Rochdale Council housing face rent rises of nearly three times the rate of inflation. Last week’s cabinet meeting approved proposals to increase the rents on council properties by an average of five per cent. Some are going up by as much as 5.7 per cent.
Telegraph: Brown's £350,000 to keep up with image Gordon Brown's Treasury spends £350,000 a year monitoring its image in the media, it emerged yesterday. That is seven times the amount spent by the Department of Health.
Telegraph: general election may be sooner, not later Join us in a little thought experiment. Suppose that, at some stage in the coming 12 months, Tony Blair were to decide that he had had enough of the pettiness and contumely of domestic politics.
BBC: China reforms its currency market China plans to bring in a market-making trading system for the yuan early in 2006, letting it float more freely against foreign currencies.
FT: Air of caution prevails over the Dow ...an inversion of the US Treasury yield curve, which has historically heralded the start of a slowdown in the economy, provided a catalyst for a slide among the leading indices. Investors remained on edge throughout the week as the yields on 10-year US Treasuries continued to venture below those on two-year paper, sustaining fears that the economy would falter in 2006.
FT: Russia prepares to turn off gas to Ukraine The dispute has demonstrated Russia's increasing self-confidence as one of the world's biggest energy suppliers, but provoked alarm in western Europe, which gets 25 per cent of its gas from Russia - most of it through the massive Brotherhood pipeline across Ukraine.
Channel 4: Stricter bank loans guidance mulled Banks could face curbs on the way they sell credit cards and loans following concerns from the industry watchdog, it has emerged. The Banking Code Standards Board has expressed concerns that banks were not going to sufficient lengths to ensure consumers could afford repayments when they advanced them further credit.
Friday, December 30, 2005
BBC News: New year property market tips An expert explains how buyers and sellers can best make the housing market work for them in 2006. The New Year usually brings an upsurge in housing market activity.
Reuters: House prices have worst year in decade The housing market suffered its worst year in a decade in 2005 but signs are growing that conditions are picking up after a sharp slowdown, data from the Nationwide building society showed on Friday.
BBC News: Deficits could harm Greenspan's legacy As chairman of the Federal Reserve, the US central bank, Alan Greenspan has been at the helm of the US economy for 18 years, making him one of the world's most powerful men.
Telegraph: New car sales skid to under 2.5m Sales of new cars have tumbled at their fastest rate for more than 11 years as private car buyers have been deserting forecourts in their thousands this year. The grim picture is set to continue with sales on course to fall further next year, official figures will show next week.
BBC News: Housing market sees higher growth House prices rose 0.5% in December, according to Nationwide, evidence of a slight strengthening in the market. The rise was higher than November's 0.3% increase but overall price growth in 2005 was 3%, well down on the 12% annual increase seen in 2004.
FT.Com: UK banks may face curbs on selling Banks face a possible clampdown on sales practices after a banking watchdog identified concerns about the way some loans and credit cards are being sold. The Banking Code Standards Board launched an inquiry earlier this year into whether bank staff were mis-selling loans and credit cards to consumers
ThisisMoney: Shoppers shy away from big purchases CONSUMERS are less confident than at any time since the Iraq war of March 2003. They are worried about their finances and reluctant to make major purchases, according to market research group Gfk NOP.Its findings came as sales of new cars fell 5% in 2005, the biggest drop since 1994. However, the High Street is reporting buoyant sales, suggesting the economic picture is more complex.
Independent: Consumer confidence falls to lowest level since the Iraq war Consumer confidence fell this month to its lowest level since the start of the Iraq war nearly three years ago, according to a survey that took the shine off a surge in mortgage approvals and shopper numbers
Thursday, December 29, 2005
BBC NEWS | Business | Zimbabwe food prices 'up 10-fold' The cost of buying groceries in Zimbabwe increased almost 10-fold in 2005, according to the country's independent Consumer Council.
Firstrung.com: You`re not singing anymore... The property boom in the last three years has caused the creation of several informative forum based websites that discuss specific property issues. The Motley Fool has long been the destination for those interested in property matters, equally the F.T. forums have provided intelligent discussion opportunities.
Housepricecrash.co.uk: BBC Radio Interviews HPC's press spokesman conducted 3 BBC radio interviews today commenting on the latest relase of housing figures from Hometrack. You can listen to 2 of the interviews on the website.
NZ Herald: Ambiguous advice for world economy 2006 Don't hold your breath waiting for the stormy end feared for global economic imbalances in 2006, but don't lose sight of them either. That is the ambiguous message from economists who, after three years of debate, are no closer to consensus on the threat posed by record United States international deficits and the counterbalancing stockpile of Asian foreign currency reserves.
BBC News: Ask the expert: Self-build property BBC News Ask the Expert column gives readers a chance to have their financial questions answered.
Telegraph: Retailers braced for casualties A clutch of leading retailers and analysts have warned that despite the return of shoppers to the high street, many chains will be lucky to survive the Christmas and New Year trading period unscathed.
BBC News: Delta pilots agree to 14% pay cut Pilots at troubled US airline Delta have voted to approve a 14% pay cut to help the bankrupt carrier survive an expected cash crunch. Atlanta-based Delta, which filed for Chapter 11 bankruptcy protection in September, said the interim measure would save $143m (£83m) a year.
IFAOnline: Mortgage lending strong during November says BBA Gross mortgage lending stood at £18bn in November, according to the latest figures from the British Bankers Association (BBA). This was among the highest on record and 23% higher than the £14.6bn of November 2004 says the BBA. November’s gross lending was 2.5% higher than October’s total of £17.5bn.
Times: Owe, you liar A third of us don't tell the truth to our partners about money, and men are worse than women. It's as bad as lying about an affair, and just as dangerous for a relationship
Firstrung.com: Huff..puff...it may still blow down The last major correction in house prices was measured over a four year period. In order to rebut the article an argument could just as easily be put forward that the UK has experienced the start of an economic cycle which will result in prices falling further.
Wednesday, December 28, 2005
Times: House price rally defies the huffers and puffers Predictions of a property slowdown have faded away, with analysts almost united today in declaring house prices to be on the rise again. Gloomy forecasts at the beginning of 2005 have gradually been reversed during the year with the last major price monitor coming into line by reporting an above inflation rise.
This is Money: Vote Are we on the brink of a total collapse in the housing market?
Independent: Jobs growth 'to stagnate despite stronger economy' The jobs market is set to get tougher next year as employers are determined to slash costs through slower recruitment and more redundancies, the Chartered Institute of Personnel and Development (CIPD) predicted.
TimesOnline: Struggling retailers at risk as rent collectors come knocking INSOLVENCY experts have predicted a spate of failures among retailers soon after Christmas. December 25 is “quarter day”, when rent is due, and struggling outlets could face collapse. In the week before Christmas, Unwins, the off-licence chain, and MVC, a DVD and music retailer, called in administrators. Several businesses, including Forminster, the UK franchise-holder for the Kookai brand, are believed to be facing problems.
Daily FX: ‘Inverted Yield Curve’ Possibility Spooks Markets US Dollar - Thin volume helped the greenback push past a handful of the majors against dour economic data for the world’s largest economy. Pushing aside a suggestion of slowed future activity in the Washington D.C. region and a brief realization of an inverted yield curve, traders bid the greenback higher in attempts to capture further carry trade potential before the new year.
This is Money: Confidence returning to property House prices rose for the first time in 18 months during December as consumers became more confident in the market, according to new figures released today.
Guardian : Growth statistics point to a year more reminiscent of sackcloth than Ashes 'Oil tanker' theory suggests 2006 might turn out better than the pundits predict. In many ways, looking back over 2005, it would be better to think of England winning the Ashes, Darren Gough winning Strictly Come Dancing or the brilliance of Bleak House. In terms of the economy, this year is really one best forgotten. Growth was poor, unemployment started rising after years of decline and manufacturing is back in the doldrums.
Telegraph | Money | Easy borrowing behind deals unsettles bond markets The debt markets are fuelling the M&A boom and suffering from it as companies try to please shareholders at the expense of their bondholders.
Scotsman.com: House prices rise after 18 months House prices rose for the first time in 18 months during December as consumers became more confident in the market, according to new figures. Property website Hometrack said the average cost of a home in England and Wales edged ahead by 0.1% during the month to average £160,900.
Tuesday, December 27, 2005
BBC NEWS | World | Americas | Brazil marathon sale pulls crowds Shop owners in some of Brazil's main cities say they attracted a million more customers, after staying open for 32 hours non-stop before Christmas Day.
This is Money: Our New Year's money-savers New Year's resolutions are easy to make when you're drinking champagne and toasting the New Year, but when the party's over and you're nursing a hangover, which ones will you actually make an effort to keep?
Firstrung.com: Credit card debt catches up with Britons This Christmas season, the hottest-selling gifts in Europe are pricey American products such as iPods, the Xbox 360 and celebrity-inspired fashions. That kind of shopping has led to a very American problem: credit card debt.
Monday, December 26, 2005
TimesOnline: Shoppers fail to deliver late boost for high street CHRISTMAS EVE failed to deliver a last-minute reprieve for retailers this year. Although it fell on a Saturday, the number of shoppers on the high street was reported to be 18 per cent down compared with Christmas Eve last year. The much-anticipated final dash to the high street did not materialise, according to figures from FootFall, which found that shoppers instead had opted to shop for last-minute gifts on Friday.
Sunday, December 25, 2005
New York Times - Take It From Japan: Bubbles Hurt FOURTEEN years ago, Yoshihisa Nakashima looked at this sleepy suburb an hour and 20 minutes from downtown Tokyo and saw all the trappings of middle-class Japanese bliss: cherry-tree-lined roads, a cozy community where neighbors greeted one another in the morning and schools within easy walking distance for his two daughters
Merry Christmas and a happy new year from everyone here at housepricecrash.co.uk
Saturday, December 24, 2005
This Is Money: Shops hurt by bargain hunters CHRISTMAS shoppers' reluctance to hit the High Street has hit retailers hard with city experts fretting over the firms behind major store chains. A gloomy year for the High Street has worsened in the run up to Christmas, as stores were forced to bring forward their sales in the face of gift-buying brinkmanship by bargain hunting shoppers.
This Is Money: Will you be able to sell in 2006? PROPERTY predictions come thick and fast at this time of year and the only consensus the experts have reached to is to agree to disagree. House price forecasts from major industry players have ranged from gloomy prophecies of falling prices to optimistic anticipation of a relatively buoyant market ahead.
FT: Ripples from the property boom The property boom that began in the most genteel streets of central London has taken a decade to reach the far extremities of the British Isles...But the question remains: what will happen to UK average prices when the boom runs out of steam in Scotland, Northern Ireland and Wales?
FT: Housing boom hits far-flung corners According to the latest FT house price index, the most reliable measure of the market, prices are set to finish the year 2 per cent to 3 per cent higher compared with consumer price inflation of 2.1 per cent. In most of England, estate agents have been urging over-optimistic sellers to cut asking prices to get a deal.
Firstrung.com: Fairytale of New York "Happy Christmas your arse I pray God it`s our last" There is cause for celebration as we near the end of 2005, house price inflation is finally laid to rest as the ghost of Christmas past.
Friday, December 23, 2005
CNN Money: New home sales tumble 11 percent Sales of new homes tumbled 11 percent in November, the biggest drop in more than a decade, in another sign pointing to a slowdown in the nation's real estate market.
icTeesside: Property caution The property market looks set to remain subdued during 2006, with commentators predicting house prices will edge ahead only slightly.
Scotsman.com Business - Property price rise 'to hit ten per cent again' The property market will grow by ten per cent next year, according to a leading estate agent. Strutt & Parker says the Bank of Scotland's estimate of seven per cent in its 2006 economic forecast was overly cautious.
BBC NEWS | England | South Yorkshire | Steel firm confirms 670 job cuts About 670 steel workers are to lose their jobs in Sheffield after a Finnish firm announced it is to close its business in the city.
Times: Collapse in productivity growth hits Chancellor's crusade Gordon Brown's eight-year crusade to boost Britain’s productivity performance suffered another heavy blow yesterday when official figures showed that growth in productivity collapsed to zero in the third quarter.
CreditMan: £50 billion blunder as 15,000 SME's are predicted to fail in 2006 UK small-and-medium sized businesess (SMEs) are failing to recover up to a staggering £50 billion a month in outstanding debts, according to research released this week by Close Credit Management.
Thursday, December 22, 2005
National Association of Estate Agents: Consumers Adopt 'Wait & See' Strategy In The Run Up To Christmas The number of house buyers on NAEA estate agents’ books was down in November, as was housing stock and the number of sales agreed. With Christmas fast approaching many buyers and sellers are now hanging back.
BBC: Shell oil hit by Nigerian attack The attack by unknown gunmen killed at least eight people, and is expected to delay deliveries of more than 180,000 barrels per day for up to a week...Pipelines have been attacked in the region a number of times before.
Motley Fool: Will Your House Be Worth More In 2006? HBOS' predictions are nothing more than whistling in the dark. After all, it's hardly going to frighten us by forecasting a fall, is it? Indeed, in eighteen years of working in financial services (including several years at HBOS itself), I don't recall a single occasion when HBOS wasn't bullish (optimistic) about future house prices!
This Is Money: Never had it so cheap at the sales Record use of the internet for Christmas present buying has also depressed high street sales. It means central London stores have been forced to launch their sales at least a week, and in some cases a fortnight, earlier than usual. Although shoppers have returned to the West End in huge numbers in recent weeks, the surge has come too late for most retailers.
This Is Money: All quiet on the house price front Most experts believe prices are set for steady, if unspectacular, growth next year. Having ended this year at around 3%, the recent flurry of forecasts have predicted house price inflation will be at worst flat and at best 4% in 2006. When adjusted for inflation, that suggests homeowners will see minimal gains, if any.
First Rung: "Everyone is looking at their lending criteria now." Capital Home Loans, a buy-to-let mortgage company, has tightened its lending criteria on new flats in the latest sign of rising concerns about the market.
First Rung: House price rise is bad news for many Tucked neatly into the letters section, after the seemingly more important issue of the plight of dairy farmers, the Independent saw fit to publish readers comments after it ran the headline, "Now for some good news", in relation to house prices predictions suggesting a rise in values in 2006.
IFA Online: We were wrong about house prices, admits Capital Economics A much-touted house price crash has failed to materialise in 2005, forcing one of the harshest pessimists in the market to renounce its forecast for a 20% slide in property values, according to the Daily Telegraph.
National Statistics: Balance of Payments The current account deficit widened to £10.2 billion in the third quarter, from a revised deficit of £1.4 billion in the second quarter. This is equivalent to -3.4 per cent of GDP, the largest deficit as a percentage of GDP since the fourth quarter of 2000.
BBC News: Bank minutes build rate cut hopes Hopes of cheaper borrowing in the New Year have been boosted by news that a member of the Bank of England voted to cut rates this month. Minutes of the December Monetary Policy Committee (MPC) meeting showed that Stephen Nickell broke ranks and pressed for a quarter-point cut.
Wednesday, December 21, 2005
Residential Landlord: ‘Satisfactory’ returns points to larger rented sector ...Its latest survey puts the current average return on residential property investment at 4.9 per cent for houses and 5.1 per cent for flats.
Residential Landlord: Property professionals want more club rules Investors must be protected from buy to let investment clubs that set out to get around the rules regulating collective investment schemes, a consortium of leading property interest groups have told the Financial Services Authority. If the expectations of investors in such schemes are not met, damage could be done to the reputation of property funds in general, they warn.
BBC: Costly commodities spark global change Oil, gas, gold, copper, platinum - 2005 was the year of high commoditiy prices. Now the world is realising that the era of cheap oil and other raw materials is over.
Bank Of England: Minutes of MPC ...More generally, real long rates in most advanced economies were at or around historically low levels. As discussed in previous Committee meetings, those low levels could reflect some combination of higher planned saving, lower desired investment or excess liquidity associated with loose global monetary policy...The general buoyancy of asset prices could perhaps be related to high levels of global liquidity.
Halifax: HBOS Economic forecast for 2006 The housing market is expected to be flat in 2006 with modest nominal house price growth and no change in real terms. UK house prices are forecast to rise by 3%, broadly in line with the predicted rise in retail price inflation. House prices have risen by less than the long-term average (8% per annum) in 2005 for the first time since 2000. Growth is expected to remain below the long-term average for the second successive year in 2006.
Reuters: MVC files for bankruptcy DVD and CD retailer MVC, previously spun out of Woolworths PLC, has filed for bankruptcy and hired Kroll as administrators, Kroll said on Wednesday. MVC will continue trading over Christmas, Kroll said.
This Is Money: Debt firms fear deluge DEBT charities are bracing themselves for a record number of calls from consumers worried about their Christmas spend in January. Most charities say they expect a deluge of calls when their lines open on Tuesday 3 January and calls generally get heavier throughout the month as bills land on people's doormats.
The Economist: Miraculous recovery or last gasp? After soaring for years, housing markets throughout the rich world have been looking wobbly for some time. But surprisingly strong data on mortgages and house-building released this week in America and Britain seem to signal at least a temporary reprieve. How long can this go on? And what will happen to the economy when it finally stops?
First Rung: Ten per cent of Edinburgh homeowners struggling New government figures suggest that of the 205,000 households in the Scottish capital, 11 per cent are involved in rent agreements or mortgages they cannot afford.
Westmorland Gazette: MEP concerned about house repossessions The rise in the number of house repossessions in Cumbria could be evidence of many families living beyond their means, according to a local Euro MP.
Housebuilder.co.uk: Mortgages on a high again Mortgage lending has recovered to its highest level since the end of the housing boom. Members of the British Bankers’ Association lent £5.1 billion more in mortgages than was repaid last month, the most since July 2004.
CBI Press Release: High street seeing Christmas upturn, but too soon to say whether revival will continue A Christmas spending surge has buoyed retailers after shoppers rediscovered the high street, according to the latest snapshot of consumer spending by the CBI.
IFA Online: House prices on the rise after 15 months in doldrums House prices have started to rise again for the first time in 15 months claims the Royal Institution of Chartered Surveyors (Rics).
Telegraph: House prices drop for first time in 10 years Average house prices have suffered their first annual fall in 10 years, according to the latest survey by Hometrack, the housing analyst. It said that house prices across England and Wales fell by 1.29 per cent in 2005. It added that the average price had fallen by 4.17 per cent since the market turned in June last year.
Tuesday, December 20, 2005
My Finances: Savings up 25% "Building society savings increased by 25 per cent between November 2003 and November 2005," said Adrian Coles, director general of the Building Societies Association. "This is perhaps evidence of the growing acceptance by people that they need to save, so they have something to fall back on in case hard times hit.
Channel 4: Debt warning for young workers People in their 20s are being offered credit worth up to half their take-home pay by financial services companies, research shows.
This Is Money: Rein in spending IMF tells Brown GORDON Brown was urged to rein in Britain's ballooning budget deficit by the International Monetary Fund last night. The warning comes amid signs that Government spending is rising too fast.
BBC: Hundreds laid off as Unwins folds Some 1,400 workers for beleaguered off-licence chain Unwins have been made redundant and all 350 of its stores closed, administrators have said.
This Is Money: The home in a London bus ON the outside it looks like an ordinary London doubledecker bus. But take a step inside and you will find a kitchen, shower, sitting room and five beds.
First Rung: 2006: Three Rate Cuts To Come? Wipe those tears of joy from your eyes (the ones you're mortgaged up to) - Boulger, Senior Technical Manager at John Charcol, a leading independent mortgage advisor, reckons as much as 0.75 per cent will be sliced off interest rates next year.
First Rung: House prices have fallen by 4.17% since June 2004 The figure quoted by Hometrack of a fall in prices of 4.17% since the peak of 2004 is stunning news. However, Hometrack in customary fashion manage to distil this news by claiming a rise in values of 1% for 2006. The evidence that the housing market has turned in 2005 is now surely irrevocable.
This is Money: Turnaround for house prices? House prices are rising for the first time in 15 months, the Royal Institution of Chartered Surveyors (RICS) said today. The group said the market slowdown appeared to have come to an end, with enquiries from potential buyers rising consistently during the past six months.
FMNN: The Daily Reckoning To Trust, Or Not To Trust, The Banks Are In Question. The tipping point for real estate prices...counting on bubble gains to keep on keepin' on...Life after the real estate bubble...ah, the lost art of irony...Even a monkey could hack into this system...a burden heavier than empire and more crushing than debt...and more!
Money Week: Highest ever budget deficit for November The UK's budget deficit came in at a record high for November, according to the latest figures, as the previous month's government spending leaked into last month.
BBC News: Mortgage lending picks up again Mortgage lending has continued to show an unseasonal pickup as the year draws to a close. The Council of Mortgage Lenders (CML) said gross lending rose by 5% in November to £28.5bn.
Guardian: Rosier prospect for property market as buyers show interest House prices have risen for the first time in 15 months, signalling the end of the soft patch in the housing market over the past year or so, the Royal Institution of Chartered Surveyors says today.
Rightmove December House Price Index (PDF) Back to reality: Stable housing market for 2006 and beyond. Asking prices trimmed by 0.8% (£1,674) to tempt final buyers before Christmas.
BBC News: Region bucks house prices trend House prices in the Yorkshire and Humber region have continued to slide in contrast to the rest of the UK, new figures show. The Royal Institution of Chartered Surveyors' monthly survey for December recorded the first national price increases in 15 months.
Telegraph: House prices drop for first time in 10 years Average house prices have suffered their first annual fall in 10 years, according to the latest survey by Hometrack, the housing analyst. It said that house prices across England and Wales fell by 1.29 per cent in 2005. It added that the average price had fallen by 4.17 per cent since the market turned in June last year.
Bloomberg: NYC Transit System Shuts Down After Talks Break Off New York's transit union shut down the city's public transportation system today for the first time in 25 years, stranding 7 million daily bus and subway riders, after failing to reach a new contract agreement with the state Metropolitan Transportation Authority.
Monday, December 19, 2005
This Is Money: Insolvencies 'set to peak in 2006' INSOLVENCY practitioners are braced for another hectic year in 2006 as tough trading conditions lead to the collapse of thousands more firms. Accountants BDO Stoy Hayward predict more than 18,000 companies will go bust next year, up from an estimated 17,300 over the past 12 months.
Moneyweek.com: Why UK house price falls are inevitable Because of our bearish long-term view for UK property, which we believe to be significantly over-priced at current levels, we have spent the past year wondering about the impact that the new pension rules would have on the property market because of the expected wall of money.
ThisisMoney: 2m still paying for last Xmas MORE than 2m people who used credit cards to buy last year's Christmas presents have still not managed to pay off the debt. The statistic gives a bleak insight into Britain's debt crisis as more and more families adopt the 'spending, not saving' culture. A further 1.7m shoppers only managed to pay off last year's Christmas credit card debts last month.
ThisisMoney: Agents record house price drop in 2005 A DOWNBEAT verdict on the property market has been delivered by a property research specialist - suggesting prices dropped in 2005.
BBC News: Chinese growth to top 9% in 2005 China's economy will expand by more than 9% in 2005, Commerce Minister Bo Xilai said, continuing growth that has made it one of the world's largest. The minister's comments, reported by the Reuters news agency, come as the government prepares to release revised growth figures for 2004 on Tuesday.
Independent: London and the North take lead in property price rises It has not been grim up North for house prices this year, as Bradford, Leeds and Hull emerge among the UK's property hotspots of 2005. The last monthly house price survey from the property research company Hometrack also puts West Yorkshire and Derbyshire among only three counties to have shown increases in average prices over the year, while the national picture from its poll of 7,500 estate agents shows a 1.3
ViewLondon.co.uk: Minimum wage 'not increasing unemployment' The steady increases in the UK's national minimum wage (NMW) have reportedly affected many lower paying organisations, but have not had a negative effect on UK employment. A survey by analyst IDS claims that an increasing number of companies now have their lowest pay rate set at the level of the minimum wage.
Sunday, December 18, 2005
This Is Money: Banks' American nightmare MASSIVE lending to American companies and households could return to haunt British institutions, says the Bank of England. With America accounting for 17% of the total loans made by UK banks, British lenders are vulnerable to a major economic shock in the US.
This Is Money: Lenders to pocket £100m in new fees Most increases have come in the form of mortgage account closure fees charged when borrowers switch to rival lenders.
Sunday Times: Merryn on Money: Why diamonds weren’t this girl’s best friend According to Hometrack (which to my mind produces some of the more honest house-price statistics) prices have fallen 2.5% so far this year. Add inflation into that and prices are down 5% in real terms. This may not count as a crash in everyone’s book, but it is still pretty nasty — and I think it is going to get much nastier.
Sunday Times: The Market continuing oversupply of two-bedroom flats in UK city centres has led to an average 0.5% price fall in their prices in the year to October, masking larger drops in Bristol (down 7.2%) and Newcastle and Glasgow (down 1.3% and 1.1%). The flats’ rental yield — that is, the share of the purchase price recovered in a year’s rental income — is an average of 4.9% across the UK before deductions for agents’ fees and income tax.
Times Online: Bank’s Bean hints at rate cut Interest rates could be cut early in the new year by the Bank of England’s monetary policy committee (MPC), says the Bank’s chief economist.
MyFinances: Interest rates could tumble in 2006 Next year could see interest rates tumble, analysts have predicted. Ray Boulger, senior technical manager at mortgage broker John Charcol, believes that 2006 could see interest rates fall to under four per cent.
MSN Money: Housing markets to provide rate clues The outlook for housing markets in the US and UK and their impact on the wider economy provide an important theme for this week's data releases. The link between property prices and wider economic activity is increasingly recognised by policymakers as a crucial factor for decisions on interest rates.
David Smith's EconomicsUK.com: Soft landing could make Brown's task harder As he surveys the likely landscape for the next few years, Gordon Brown has several problems. Politically, he has to present himself as different from Tony Blair without sparking allegations of disloyalty, avoiding an outbreak of what the lobby calls the “TB-GBs”.
Saturday, December 17, 2005
The Economist: Forecast Until recently, the Economist Intelligence Unit had expected Mr Blair to remain prime minister until 2008, but his departure from office in 2006 cannot now be ruled out...However, the threat of falling house prices poses a significant downside risk to the outlook for GDP growth.
Guardian: Experts chart a steady path for house prices As people settle down for Christmas this year, house prices are likely to be much less of a discussion topic over the turkey and mince pies than for some time.
icWales: Post-Christmas debt crisis looms Almost 20,000 personal insolvencies are expected in the first three months of 2006, of which more than 1,000 could be in Wales, financial experts have warned.
Guardian Unlimited: Call me a Scrooge, but I want a debt free Christmas I was "very unusual," according to the customer adviser at the building society...the fact that my husband and I have no debts, apart from the mortgage. So unusual, apparently, that she seemed almost unwilling to believe us.
Telegraph | Flat on its face: "Now that buy-to-let has slowed, interest rates are higher and transactions are at their lowest figure since 1974, developers are left with huge projects on their hands. Following Gordon Brown's cancellation of Sipps benefits on residential property last week, the expected flow of eager investors has effectively been plugged. "
Friday, December 16, 2005
BBC NEWS | Business | Surprise fall for euro inflation: Eurozone inflation has unexpectedly slowed during November, easing concerns that high oil prices were pushing up the cost of living.
The Times: What did you waste? We all make financial mistakes, from letting apathy rule our bank balance to trusting dodgy salesmen. The good news is that the less frugal among you are not alone. Here Times Money presents the ten worst mistakes that people made with their cash over the past year.
BBC NEWS | Business | Rescue deal saves van-maker LDV LDV, one of the last surviving UK-owned vehicle manufacturers, has agreed a rescue deal to save the troubled firm.
Interactive Investor: An end in sight for house price horror Average asking prices on a home fell in December, as sellers cut their prices to book a sale before Christmas, but house price growth is set to pick up in 2006, according to a report on Monday.
This is Money: Record 20,000 set to go bankrupt A recoord number of people will go bust in the New Year because of excessive Christmas spending, experts warn today. Accountants Grant Thornton predicts the first quarter of 2006 will see nearly 20,000 personal insolvencies - the highest number since records began in 1960.
BBC NEWS | Business | Your Money | Pension schemes face £575m bill The UK's 8,000 final salary pension schemes will have to pay £575m next year to finance the Pension Protection Fund (PPF).
BBC NEWS | Business | Centrica warns gas bills to rise The owner of British Gas has warned that energy bills will rise again in 2006 to pay for soaring gas prices.
BBC THREE - Would You Buy a House with a Stranger? Tonight 9pm Can you afford to buy a house on your own? Too expensive? No one to buy with? What is one to do?
Thursday, December 15, 2005
The Guardian: Young 'divided over homeownership' Eight out of 10 Britons would prefer to own a property than live in rented accommodation but there is evidence that young people are falling out of love with homeownership, according to research published today.
Channel 4: Cost of running home 'up by £2,000' Britons claim the average cost of running a home has risen by nearly £2,000 this year, new research has shown. People said they spent around £142 a month more on outgoings such as utility bills, their mortgage, food and insurance during the year compared with 2004, according to accident and health insurer Combined Insurance.
BBC: Unwins off-licences near collapse UK off-licence chain Unwins is on the verge of administration, just nine months after being bought by a private equity firm...The group has almost 400 stores and 2,500 staff.
Reuters: Trinity Mirror says ad market worsens Trinity Mirror said on Thursday the advertising market has continued to decline, with sharp fall-offs at national papers such as the Daily Mirror as well as in regional recruitment ads.
Reuters: Executive pay rises endangering economy: association Executive pay is rising too fast and leaving firms more exposed to an economic downturn, the Association of British Insurers (ABI) said on Thursday, flagging 47 cases of concern in 2005 compared to 36 last year.
Reuters: UK details weakened company risk reporting rules Companies will have to produce a "Business Review" from 2006 describing upcoming uncertainties including non-financial matters such as social and environmental risks, Alun Michael, Minister for Industry and the Regions, said in a statement. But the review will not be audited, diluting its legal significance.
Reuters: ECB's Issing warns of inflation hazards - FT ..."With consumer price inflation well anchored, overly accommodative monetary policies may lead to asset price inflation," he wrote. "Over longer horizons, this may prove hazardous to price and macroeconomic stability."...Monetary officials are concerned that huge amounts of cheap cash are driving up asset prices, notably bonds, real estate and commodities, and could plant the seeds for a crash.
posted by DavidG @ 11:07 PM