Sunday, April 30, 2006 
The beginning of the end for cheap money?
Telegraph - Global tightening will rein in the bullsChina raised interest rates last week. Indeed, around the world, rates and bond yields have been rising. Is this the beginning of the end of the global splurge of liquidity? If so, what are the implications for financial markets?
The debt crisis deepens
Telegraph - Bankruptcies soar to new peakA potent combination of Britain's £1 trillion debt mountain and a relaxation of the bankruptcy laws is forecast to drive a record 100,000 people to go insolvent this year. Mark Sands, the head of personal insolvency at KPMG, said: "Bankruptcy is becoming a lifestyle option for many people to escape their debts."
Why are banks sneaking up the cost of a mortgage?
This is Money - The great mortgage gambleOver the past month, many lenders have begun to ratchet two and three-year fixed rates up again slightly, as their cost of borrowing on the money markets rises
Will oil pass the $100 a barrel mark
Observer - New oil shock ahead as $100 spike loomsThe growing international crisis over Iran's nuclear programme could trigger a catastrophic oil price spike, sending crude prices over $100 a barrel, senior Wall Street analysts are warning.
Vote of confidence in Barclays mortgages
Times - Barclays bosses take out mortgages with rivalsJohn Varley, the bank's chief executive, mortgaged his London town house with HSBC last year, shortly after being promoted to the top job at Barclays. The bank's finance director and deputy chairman have also chosen against taking out mortgages with Barclays, in favour of home loans from Royal Bank of Scotland and Lloyds TSB.
Saturday, April 29, 2006
Are FTBs too deep in debt?
Independent - First-timers are deep in debt even before they buy a homeNearly half of first-time buyers owe at least £8,000 by the time they start looking for a property, according to a new report from one of the UK's biggest mortgage lenders published today.
Buyers close in on Estonia!
Independent - Estonia becomes the world's housing hotspotHousing markets across the world have gone through a slowdown over the past year that has seen fringe countries overtake their bigger neighbours in the global league table, new figures showed today.
Fancy living near a pylon ... think again.
Telegraph - Pylon cancer fears put £7bn blight on house pricesUp to £7 billion will be wiped off property values if the Government accepts the advice of experts that homes should no longer be built near overhead power lines because of possible links with childhood leukaemia.
Is FTB aid scheme effective?
Times - Questions raised over £1bn scheme to help buyersA survey of first-time buyers has raised doubts about the effectiveness of a government scheme to help young people buy their first home.
Friday, April 28, 2006
Fife - 36% annual increase in average house price
Guardian: Scottish property sizzlesThe town of Cupar in Fife has been the UK's property hotspot over the past year, with average property prices rising by 36%, figures showed today.
New Zealand keeps rates on hold at 7.25%
Reserve Bank of New Zealand: OCR unchanged at 7.25 per centReserve Bank Governor Alan Bollard said: "Data since our March Monetary Policy Statement (MPS) indicate that, while the economy has weakened faster than expected, short-term inflation pressures have intensified."
GDP figures in US point to more rate rises
BBC News: Big growth spurt for US economyThe US economy roared ahead in the first quarter of 2006, growing at its fastest rate in two and a half years, according to the Commerce Department.
Surprise rate hike by BoE next week?
Interactive Investor: BoE should consider preemptive rate hike next week - NIESRThere is a "strong case" for the Bank of England's Monetary Policy Committee to surprise the market with a preemptive interest rate hike when it meets next week in order to counter rising inflation expectations, a leading UK think-tank said.
Affordable Housing 'A Human Right'
Sky News: Cheap Homes 'A Right'Affordable housing should be a basic human right for everyone in the European Union, an all-party report of MEPs believes.
Dollar falls after Bernanke speech
FT.com: Bernanke hint on US rate pause dents dollarThe dollar fell to seven-month lows against the euro on Thursday after Ben Bernanke, chairman of the Federal Reserve, prepared the markets for a halt in the US rate-tightening cycle that began in June 2004.
Bernanke to pause on rate rises...but not for long
BBC News: Inflation fears cloud US growthUS economic growth should slow to a more sustainable pace this year, but high energy prices still threaten inflation, the US Fed chief has said.
Japan to raise interest rate?
BBC News: Japan boosted by consumer dataJapan is showing signs of economic recovery that could pave the way for an interest rate hike in coming months.
Thursday, April 27, 2006
German growth expected to increase
BBC News: German economy 'to grow by 1.8%'Leading German economists have upped their prediction for German growth for 2006 to 1.8% from their previous 1.2%.
Mortgages go through the roof
This is Money: Mortgages to break £1 trillion barrierThe value of homeloans in the UK will burst through the £1 trillion barrier early next month.
Lending rate raised in China
Yahoo! News: China raises lending rate to slow booming economyChina raised interest rates on Thursday for the first time in 18 months in what economists said was an attempt to slow a boom in credit and investment growth.
Interest rate cut in UK not on the cards
Reuters: Bank's Barker - No pressing need for rate cutThere does not seem to be a pressing need for the Bank of England to cut interest rates, Monetary Policy Committee member Kate Barker was quoted as saying on Thursday.
What are the real reasons behind high oil prices?
Guardian: Fuelling the uncertaintyAn interesting article which questions the reasons that we are given for current record high oil prices.
FX market reacts to bleak house price data
Reuters: Sterling hits 3-wk low vs euro after housing dataSterling hit a 3-week low against a strong euro and held steady against the dollar after data showed British house prices barely budged in April following a jump in March.
Housing market grew by just 0.1% in April
Times: Housing market recovery stallsMoney extra: April showers cool house pricesSky News: Property Prices StaticBBC News: Growth in UK house prices 'cools'Reuters: House prices barely budge in AprilHopes for a sustained recovery in the housing market have suffered a setback after one of the country's top mortgage lenders gave warning that price growth slowed sharply in April and annual property price inflation is now back below 5 per cent.
Beginning of the end for estate agents?
BBC News: Asda set to start selling housesPeople choosing to sell their homes through Asda will pay lower than average estate agency fees and receive a free Home Information Pack (HIP).
Wednesday, April 26, 2006
Average cost for diesel is now 98.71
Sky News: Diesel Petrol Price Hits All-Time HighThe cost of a litre of diesel has hit an all-time high. The average cost of a litre of diesel is 98.71 against 98.6 on September 14, 2005, according to the AA Motoring Trust's figures.
Pru jobs go to India
BBC News: Jobs at risk in Prudential revampPrudential has announced that it is to close its sites in Belfast, Bristol and Holborn Bars in London.
Motley Fool educates the masses about interest rates
Motley Fool: Mortgage Interest RatesInterest rates are probably the most important part about buying a house. After all, your aim is borrow the money you need for the least possible cost, so you need to assess which type of interest rate is best for your particular circumstances.
Bank of Canada raises interest rates to 4%
Canada.com: Bank of Canada hikes interest rates againThe Bank of Canada has increased interest rates for the 3rd time this year and economists expect another two increases to bring them to 4.5%
Retirement house builder sees fall in profits
Independent: McCarthy & Stone profits fall 20%McCarthy & Stone, the retirement home builder, unveiled a 20 per cent drop in first-half profits yesterday, blaming a rise in building costs and land prices for its poor performance.
Buy to let still strong
Mortgage Introducer: Paragon reveals healthy BTL marketParagon Mortgages Buy-to-Let (BTL) Index has revealed the market remains strong, despite a drop in property prices paid by landlords during March.
Credit card spending set to double
Moneyextra: Credit card spending to soar on DIY spring feverOverall credit card spending is set to double from £645 to £1,225 over the next three months with spending on the home and car likely to fuel this increase, according to the latest figures from the Morgan Stanley Card Index.
Cost of fixed rate mortgages on the rise
Telegraph: Fixed-rate home loans are going upMortgage lenders are increasing the cost of fixed-rate mortgages following a rise in "swap" rates - the price at which they buy funds in the money market to underpin the deals.
Annual rate of growth up to 2.2%
BBC News: UK economy records strong growthReuters: UK growth steady in Q1 as expectedGross domestic product (GDP) grew by 0.6% a steady in the first three months of the year, the Office for National Statistics (ONS) said.
Better off renting
MSN Money: When renting is a better ideaThe continuing positive propaganda about buying a home can be so incessant that it can be hard to accept there are times when renting a property is a better option than buying one.
Tuesday, April 25, 2006
HIPs will be bad for mortgage industry
IFAonline: Hips will lead mortgage industry into decline - IMLAAlmost half of brokers believe that, even after the initial distortion caused by the introduction of Home information packs (Hip) wears off, there will be a long-term decline in property transactions, research from the Intermediary Mortgage Lenders Association (IMLA) states
Bush on the oil offensive
BBC News: Bush plans to tackle petrol priceUS President George W Bush has unveiled plans, including an inquiry into price fixing, to lower the cost of oil and cut climbing petrol prices.
Price of oil to remain above $75 for next 5 years
FT.com: Security of oil supply raises fears of long-term contangoThe last time oil prices rose to record levels, it was only short-term prices that moved higher. This time it is different: not only are deliveries for June priced at their highest level ever - about $75 a barrel - but the market is suggesting prices for the next five years will remain above $70 a barrel.
Second home ownership now at record levels
This is Money: 600,000 Brits own second homeThere are as many as 350,000 in England, according to a survey. And there are another 260,000 second homes abroad owned by Britons.
Adverts on BBC website?
BBC News BBC polls users on online advertsBBC looks at the possibility of serving adverts on certain parts of its website. This article isn't on-topic but is likely to provoke some lively discussion.
Capital Economics dispute NAEA forecast
Money extra: Estate Agents' house price forecast disputedEconomists at Capital Economics are disputing claims by the National Association of Estate Agents that house prices will double over the next decade. It may well be in the NAEA's interests to talk up housing but is the forecast realistic?
South Korean economy set to grow by 5% in 2006
BBC News: South Korean growth slowing downSouth Korea's economy grew 6.2% year on year in the first quarter, the nation's central bank said, pointing to gains in private consumption and exports.
Poor Stay Poor As Rich Get Richer
Sky News: Little Chance For Poor People brought up in poverty are at least twice as likely to be poor as those from better-off homes, new research shows. One in five teenagers from poor households in the 1970s are no better off than their parents were.
Oil price dips slightly
Reuters: Oil dips on OPEC promiseOil prices dipped on Tuesday as OPEC's promise to keep pumping at near full capacity triggered profit taking from record highs struck late last week.
TVR to shut up shop in Blackpool
Sky News: Jobs Lost As Car Firm Shuts FactoryTVR is to close its UK factory in Blackpool with the loss of 260 jobs. Britain's biggest independent car maker will cease production at the plant in six months.
Monday, April 24, 2006
Bad news for BTL's
Reuters: Buy-to-let rental yields fallBuy-to-let rental yields are rising in Scotland but falling elsewhere, according to Landlord Mortgages, the largest buy-to-let broker in the UK.
Most expensive petrol station in the UK?
Daily Mail: Petrol hits £1.19 a litreScare headline from the Daily Mail. When you actually read the story you find that it's a disreputable Texaco petrol station in Sloane Square!
Housing market on the slide?
Money Week: Is the housing market finally slipping?"Back in the late 1980s before the housing market collapsed, groups of young people joined together to buy properties. Clearly we don't learn from the lessons of history because this week in the FT it was reported that homebuyers are flocking to a joint-purchase website Sharedspaces.co.uk."
Lenders tighten up on mortgage switching
This is Money: Cost of mortgage switch soarsHomebuyers are being forced to pay more than £1,000 to change mortgages as lenders raise their charges by up to 125%.
Tesco to restructure property portfolio
Guardian: Tesco to cash in on land holdingsSupermarket group Tesco will tomorrow outline plans to release cash from its multibillion-pound property portfolio, which could allow a substantial return to shareholders.
Mortgage lending remains strong
Reuters: Mortgage lending growth near 2-year highUnderlying mortgage lending growth jumped in March to its highest in nearly two years, the British Bankers' Association said on Monday, in data that suggested the housing market remains buoyant.
UK Retail Sales revised down for February
National Statistics: Retail sales down in first quarter (PDF)Reuters: March UK retail sales up more than expectedBritish retail sales rose faster than expected last month but February's rise was revised down, official figures showed on Monday.
Banks go low to woo borrowers
Independent: The personal loan bursts into blossomAfter a period of hibernation, the personal loans market has burst into life again with rates as low as 5.6 per cent.
Sunday, April 23, 2006
Base rate is artificially low due to migrants
Scotsman: EU incomers 'keeping interest rates down'Times: Migrants 'have kept interest rates down'The Ernst & Young Item club argues that if we didn't have EU migrants then interest rates would be 0.5% higher. With increased migration this will subdue the base rate by up to 1% in the coming months.
Buy for Uni mortgage
Independent: Make the grade, and you'll pass directly to home ownership A new mortgage launched by Bath building society similar to a buy to let mortgage but specifically for students at university...but with several strings attached!
Saturday, April 22, 2006
Did someone mention the R word?
icWales: Troubled times - even recession - aheadOur level headed friends at Moneyweek believe, amongst other things, that house price surveys from Nationwide and Halifax are misleading...couldn't agree more!
Petrol prices to remain high until September
channel4.com: Petrol prices 'may soar': 'When do we see some respite from all this? At the end of August into September. Unless we have another violent hurricane season like last year, I would expect prices to come down.'
Who wants to be a millionaire?
Sky News: More And More Property MillionairesA feelgood news story for homeowners, after reading this article they should probably pat themselves on the back for making such wise and calculated decisions!
Friday, April 21, 2006
Has the penny dropped?
The Gallup Poll: Seven in 10 Consumers Expect Housing Bubble to BurstHowever, only about 4 in 10 expect housing prices in their areas to remain the same or decline.
Analysing the recent oil price rises
Reuters: How high is too high for world oil price?The $70-a-barrel mark for oil, decisively breached this week, is seen by many analysts as a danger level. But some argue sustained prices of well over $60 have inflicted surprisingly little pain and done some good.
Mammoth loss for Ford
BBC NEWS: US problems fuel huge Ford lossFord has reported a $1.19bn (£629m) loss for the past three months after incurring huge costs from its planned series of job cuts and plant closures.
FTB's dig deep
Guardian: Costs hit first-time home buyers hardWhile first-time buyers in 2000 needed an average of £4,698 to cover stamp duty, solicitors' bills and mortgage fees, in 2006 the average is £9,113, according to research by mortgage lender Woolwich.
Buy-to-let sector sees reduction in yields
In2perspective: Buy-to-let investors squeezed as yields fallRental yields in England have fallen from 6.15% to 5.91% between the last quarter of the last year and the beginning of 2006. London yields have fallen by an even greater margin - from 6.58% to 6.07%.
Will the BoE be forced to raise interest rates?
The Scotsman: Caution over rates despite fall in CPIThis article argues that the recent inflation figure does not take into account the latest rises in energy bills and oil prices.
Interest rates to dampen demand for property
Reuters: Higher rates may hit surging property demandBased on the twice-yearly RICS survey the findings are that further interest rate rise globally would probably take some steam out of the market.
Thursday, April 20, 2006
Has Gordon Brown pushed the UK consumer too far?
Independent: Hamish McRae - How the consumer slowdown could squeeze Brown where it hurtsHow long can the British consumer keep it up? The boost from the public sector is waning and company investment remains depressed.
Record month for mortgage lending
Guardian: Mortgage lending hits new highThe council of Mortgage Lenders have today announced that £28.31bn was lent in March which was the highest figure on record. So, is this the last spurt for the housing market?
Inflation rate catches economists out
Times: Surprise fall in inflationTelegraph: Inflation slowest in over a yearEconomists had predicted the annual rate of inflation to remain at 2% or drop to 1.9% but instead it has slowed to 1.8%
Wednesday, April 19, 2006
Yet more record highs for oil!
Reuters.co.uk: Oil hits new high over $73BBC News: US jitters fuel fresh oil highsLondon Brent crude hit's a record high of $74 whilst US light crude jumped to another record high of $72.40. Do I see any bidders for $80....yes thank you sir the man at the back with the brightly coloured jacket!
Debt? What debt?
Guardian: Borrowers undaunted by debtAs consumer borrowing nears the £1.2 trillion mark, a survey by CreditExpert shows that most debtors are confident that they can meet repayments on mortgages, loans and credit cards.
FTSE breaks through 6100 barrier
Sky News: FTSE Hits 5-Year HighThe FTSE continues to break into territory that it has not seen in 5 years. The recent rise is mainly due to the Fed's minutes indicating that the current trend of rate increases may soon be taking a breather even though oil prices continue to rise.
Oil prices show no sign of receding
BBC News: Oil price lingers near record $71Sky News: Fuel prices on the riseOil prices are still hovering at record levels. BA have increased their fuel levy from £30 to £35 for a one-way trip and motorists are told that £1 per litre of diesel will become the norm this summer.
Bank voted 7-1 to hold UK rates
BBC News: Bank of England voted 7-1 to hold UK ratesBBC News: Fed hints at end to US rate risesMinutes released today show that the MPC are holding tight for now but are aware of rising energy cost affecting inflation. All eyes are now on the Fed to see if ftey are going to continue raising interest rates and on the Bank of Japan to see when they are going to start raising them.
China's currency revaluation could lead to higher global inflation
Will China's next big export be inflation? - Analysis - Times OnlineIf China were to submit to pressure from the US to revalue its currency against the dollar, this would increase the price of Chinese exports which would produce an immediate (and perhaps sharp) inflationary effect on the rest of the world.
Inflation expectations rise
Guardian Unlimited Business | | Inflation expectation increases to 2.7%According to the latest NOP poll conducted for the Bank of England, inflation expectations rose to 2.7% in March, which is the highest they have been since the survey began in 1999.
Tuesday, April 18, 2006
Peugot pulls the plug on Coventry with the loss of 2,300 jobs
Peugot is to close it's Coventry factory in 2 phases with production stopping completely in mid-2007.
BBC NEWS: 2,300 jobs go in Peugeot closure.
RICS talks up the market
The RICS survey for April attempts to get some momentum going for the yearly spring bounce which, although most agents rely on it happening, failed to appear last year.
Times: House prices rise for fifth consecutive month RICS spokesman Ian Perry, said: "People traditionally put houses on the market in the new year and sales pick up around Easter. Agents are clearly expecting this year to be no exception, and our figures are showing a lot of optimism in the industry."
Second home owners - council tax increases
Guardian: Second home owners may face new tax The government is now mulling over proposals to tax second home owners higher than the rate of first homes. To be able to implement this effectively a national register of second homes would also have to be implemented.
Principality supports home information packs
icWales - Principality backs home packsDespite a survey last week that showed the majority of mortgage lenders were against HIPS, the Principality Building Society has outlined their support for the packs. They believe they will save buyers from paying for a survey and reduce or negate the costs of the lenders valuation. They also think they will increase transparency in the housing market and speed up the buying process.
Price of haircuts rising at 4 times inflation
Haircuts aren't a snip, even with low inflation - Sunday Times - Times OnlineAlthough official figures put inflation at about 2%, prices for many goods and services from energy and transport to hair cuts seem to be climbing by much more than that.
Oil price at record levels...again!
Oil prices are hovering around record highs amid international tensions over Iran's nuclear programme and disruptions to supplies from Nigeria.
Sky News: Crude Oil Prices Are Soaring Again Light sweet crude closed at $70.40 a barrel in New York and the price rose to record levels in London where the cost of Brent crude hit $71.86 a barrel.
Monday, April 17, 2006
Telegraph - Money - High street has a quiet holidayRetailers have been deprived of an early bank holiday boost as the number of people visiting the high street fell on Good Friday, according to the first analysis of the key weekend's trends. The number of shoppers venturing out across the UK continued to slide on Friday, dropping 4.3pc compared with the same day last year.
Daily Mail - News - Millions living in the redAlmost two million people owe more than £10,000 on credit cards, overdrafts and loans, new research reveals. Around a quarter of them have amassed unsecured debts of more than £20,000, according to debt solutions company One Advice.
Guardian Unlimited - Money - Super rich make UK their homeFor the ultra-rich few, this country is now a virtual tax haven, which is why more and more princes, tycoons and oligarchs are making it their home.
Times Online - Britain - Tax rise threat to second homes Second homeowners in Britain's favourite beauty spots face a new 'absenteeism' tax under plans before the Government.
Sunday, April 16, 2006
Long-term rates break out, set to hit 5% - Apr. 6, 2006
Telegraph | Money | Chelsea house prices take off as City challenges New York Chelsea and other fashionable areas of London are at the centre of an astonishing property boom fuelled by foreign billionaires, hefty City bonuses and the strong performance of the stock market.
Bubble builds in commercial property
It has estimated that average rental
yields on commerical properties have fallen from 8.5% in 2001 to 6% now, substantially reducing the margin over interest rates. In some cases yields are much lower, with the freehold on a Barclays branch in Stansted recently selling to an investor at a rental yield of just 3.4%
One of Britain's best known property entrepenuers, Nick Leslau, now thinks the market is overheated. He turned bearish just over a year ago, selling the majority of the properties his company owned apart from £1.3 billion worth of pubs, Travelodge hotels and nursing homes.
Saturday, April 15, 2006
FED worries about US property
The Fed is looking for housing to slow at a moderate pace this year. If the market looks headed for an outright collapse, it could bring a quick end to Fed tightening. But it's unlikely the Fed would react to any one month's housing numbers, especially considering the rampant skepticism at the Fed that even falling home prices would curb consumer spending.
MarketWatch: Inflation, housing are main risks to Fed policy
US counts cost of Treasury yields
Yields on 10-year US Treasuries have risen above 5pc for the first time since 2002 on heavy selling by big institutions, sending tremors through the US mortgage and corporate credit markets.
Telegraph: US counts cost of Treasury yields
Scotsman.com Living - TV & Radio - Ann makes everything rosy in the home
Interview with Ann Maurice, the Amercian home stager behind the popular 'House Doctor' TV series.
Ann makes everything rosy in the home. Even though we all know now to de-clutter, de-personalise and neutralise in order to sell a home quickly and for the best price, it still amazes me to see that people don't even do the basics and think that having a deep purple bedroom will appeal to buyers!
No sign of soft-landing for housing market
According to a
new survey that collects price data from a variety of Internet property sites, asking prices actually fell 2.5% over the last 12 months (4.4% in real terms), with a 0.4% drop this month.
Commodity prices add to inflation concerns
Commodity prices are on the up, which is
adding to inflationary concerns and it seems that bond yields are finally responding to such pressures. A consensus is forming that a strengthening global economy will cause central banks to raise interest rates, and this resulted in US treasury yields breaching 5% this week for the first time since 2002.
Friday, April 14, 2006
House prices rise 281% over past decade in East London
House prices rise 281% over past decade in East London Four of the six London boroughs with the strongest house price increases since 1996 are in East London - Newham, Waltham Forest, Lewisham and Hackney. Newham has seen the strongest house price performance in London over the past ten years with a 281% rise.
Survey says that HIPS will be 'Bad for sales'
According to a survey for the Intermediary Mortgage Lenders Association, two-thirds of mortgage lenders think that
HIPS will have a negative impact on house sales. Also more than half of lenders said that they thought HIPS would make do difference in speeding up the buying process.
Fuel prices head for £1 per litre
Motorists are likely to have an expensive fuel bill this Easter weekend as the average price of Diesel and Super closes in on £1 per litre, with regular Unleaded not far behind. However all is not lost, and you could
save up to 7p a litre off the average by shopping around according to figures from local fuel price monitoring website, PetrolPrices.com
HIPS could ruin the property market!
So say
Phil and Kirsty in an open letter they have written to home buyers and sellers. Of course they neglect to mention any of the possible benefits of these new packs, or the
problems they will address, such as the huge fact that for far too long home buyers have had to rely on scant information from estate agents to make a decision about the most expensive product they are ever going to buy.
Unemployment may hit 1 million by summer