Post Brexit strategies
Summer tipped for rate cut by Governor as he pledges he won't "walk away" from the job
He may end up getting kicked out. So, my long predicted rate cut is about to come to pass. Expectations are that it will be a 25bp cut to 0.25%. However, 2yr Gilts are being bid up bigly, to quote the next President of the USA, with rates collapsing on those to 0.105% I am expecting these to fall into negative territory forcing the BOE, which reacts to and competes with the market and is not in control, to cut to 0%, followed by negative rates to come as Britain becomes a safe haven whilst the EU becomes the focus of short positions and disintegration concerns. House prices are about to soar as this combines with FOREX house price discounts to foreigners who will flood in to front run border controls.
Bad news for London Property Buyers
Maybe this will finally get rid of this appalling, dishonest practice
This summer, CaseHub is launching the once-in-a-generation fight back against extortionate letting agent practices. If you have a gripe with your past or current letting agent, this case is a must-watch. As the niceties of the class action are still being sorted, we invite you to sign up to our mailing list beforehand: join us on and be one of the first people in the movement to help the fight back.
Good news for London house buyers
"Samuel Tombs, the chief UK economist at Pantheon Macroeconomics, said: Following the referendum, demand likely will weaken as unemployment begins to edge up and confidence falls. Meanwhile, banks soon will reflect the recent increase in funding costs in their mortgage rates. Prices in London look particularly vulnerable, given that job insecurity has increased in the City and banks will be thinking twice about high loan-to-income lending. Foxtons, the London-focused estate agent, issued a profit warning this week. It believes that the vote to leave the EU will limit property sales in the capital for the rest of the year."
A flood of foreign money will pour into Londons post-Brexit housing market
Evening Standard: Brexit: 'Foreign money will pour into London's property market' according to expert
Foreign investors are apparently seeing huge savings after the value of the pound plummeted following the leave vote. Luxury estate agent John Taylor said since referendum, they have received higher offers on property than all other offers made since the start of the year. John Taylor managing director David Adams said: I was inundated with more calls from the Middle East on Friday than any other day of my career."
The Fergus saga continues.....
Stagnation and Decline (House Prices)
Telegraph: House prices to fall 5pc nationwide and tumble even further in London as worried home buyers back out
House prices and transaction levels will be hit by a "short, sharp shock for a quarter", as buyers pull out of chains amid the uncertainty that the vote to leave the European Union has created. Property experts warned that chains could collapse as worried buyers pull out of transactions or invoke "Brexit clauses", which allow them to back out if they don't like the outcome of the referendum.
EU edit expected to end UK house price boom
Could this trigger the big one ?
This is making 2008 seem like a minor hiccup. I remember 1992 when interest rates hit 14%. Of course Libertas might e right and next year your house might be worth £1000000000 or was that Zimbabwe dollars ? Is this the final punishment of the boomers against generation rent ? A lot of the boomers won't be happy when they see the price of their next BMW. Wait for the cries of "BoJo didn't tell us this would happen"