Times Online: House prices drive first-time buyers down to a new low

FTBrs dropped to lowest level for 26 years. Buckinghamshire, FTBs now need nearly 17 X £44K income for ave. £725K property, the Halifax said.

Posted by nearly30 @ 10:59 PM 20 Comments

Easier Property: Average price paid by a first time buyer now above £150K

Only 10% of 22-29 year olds, with average full-time earnings of £33,202, had comparable income levels to first-time buyers in 2006.

The Telegraph: The end is nigh …

Just when you thought house prices couldn't go any higher, they don't. At least that's the bold prediction of our Economics Editor, Edmund Conway There's no easy way of saying this, so here goes: 2007 could be the year the housing market finally rediscovers gravity, and comes down to earth with a crunch.

Firstrung: Rogue landlords to be forced out under new legislation

Tenancy Deposit Protection will help force out the minority of rogue operators who wrongly withhold tenants' deposits....

Telegraph: Homes cost six times wages

The true size of the housing market boom was demonstrated yesterday by figures that showed people are borrowing an average of almost 6.5 times their salary to buy a home. We already know this, but do the general public know ?

Posted by bryan @ 10:32 AM 13 Comments

Daily Maul (sorry, Mail): National debt is three times higher than Government claims

A little out of date but we seemed to have missed this one from a month ago. It was also reported yesterday by enuii as a reference in the "Trumpet" artlcle.

The Times: Cassandras keep shtum on property risks

Article on how those predicting a property crash are keeping quiet for fear of being accused of 'crying wolf'.

The Times: House prices on the rise again

The print version has a graph showing the ONS/Datastream/Nationwide data for RPI and percentage change in house prices since 1953. It is interesting because it shows a) RPI always peaks after a large % change inhouse prices b) It highlights the cyclical nature of the housing market with huge peaks in 1970, 1978, 1989 and 2002. Each time (with the exception of 2002) there is a period of near zero growth for some time (coupled with high RPI inflation to erode the capital of the debt). In 2002 RPI has been very low. RPI in the 70s was well above 25% illustrating the argument that inflation eroded the capital of the debt of baby boomers in the 70s (wages are set by RPI mind you I don't think CPI existed in the 70s). The text is the usual bumf. It was the graph that interested me. I would scan it and post it but I'm at home at parents for holidays and don't have my scanner.

Bloomberg: U.K. Borrowing Increases as Homeowners Shrug Off Rate Rises

U.K. banks granted more loans to buy houses and Britons are borrowing more against the value of their property, adding pressure on the Bank of England to extend a series of interest rate increases into next year.

Firstrung: Average price paid by a first time buyer now above £150,000

New Halifax research shows that the average house price paid by a first time buyer (FTB) pushed through the £150,000 barrier for the first time in 2006. The average price increased by 11% in 2006 to £151,565 from £137,122 in 2005. Over the past five years the average house price paid by a FTB has almost doubled, rising by 95% from £77,914 in 2001.

yahoo: The Wall Street Journal Online

Can't wait for the gloating to start in the UK

Bull! Not bull: The Specter of Deflation

A specter is haunting the US economy - the specter of deflation. The Fed and the Treasury - the central powers of Capitalism itself - have entered a holy alliance to exorcise this specter. The big question is, will they be able to do it?

BBC News: New year could see debt 'tipping point'

Further scaremongering or an 'AWOOGA' warning about the future?

Posted by nearly30 @ 11:22 AM 8 Comments

BBC News: New year could see debt 'tipping point'

A fairly balanced BBC article regarding the chance of a credit meltdown in 2007

BBC: New year could see debt 'tipping point'

Surprised no one has picked up on this yet.

Daily Mail: 'Buy now, pay later' could bring the country to the brink of insolvency

The biggest debt burden of any major economy will push 150,000 Britons into insolvency next year, according to alarming new research. Families have racked up a record £1.3 trillion of debts, fuelled by easy availability of credit, but they face a painful squeeze as borrowing costs mount.

BBC: Interesting times

This is the time of year when otherwise decent journalists write articles setting out their predictions for the twelve months coming...

Posted by harold @ 12:27 PM 6 Comments

The Trumpet: Unveiling Britain’s True National Debt

Is this another nail in the house price coffin. A recent study claims Britain’s national debt is three times higher than official government reports. If this is correct, Britain could be the most indebted nation in Europe. Yet, a UK Treasury spokesman claims the calculations are “spurious” because the government does not legally have to account for public sector pensions or liabilities of other publicly owned entities. Has the UK government been covering up its true spending or not?

This is London: Mothers cut short their career breaks

Statistics reveal how much economoic pressure is being placed on UK families by high housing costs, taxation and living expenses. There is more than just a housing bubble operating as factors in the UK economy, which bubble will pop first?

The Scotsman: UK faces rising tax for next 50 years

UK Treasury projections are that the tax burden on the UK population will rise continually as a percentage of income for the next 50 years. Couple this with people having to work longer both in years and hours per week, save for their own pensions and pay more for somewhere to live and something has to give.

old moores almanac: slightlylostintheworld.

old moores almanac is predicting a house price crash in july.07

Bloomberg: Dollar Drops; U.A.E. Says Selling U.S. Currency, Buying Euros

UAE lines up against the dollar; evidence of reserve currency diversification, might set a precident.

The Times: They promised a slowdown, but house prices climb

The Times looks at the prospects for 2007. Is there anything in the recent sets of data to support those longing for a crash? Or are prices set to contiune rising on the same trajectory as 2006?

Daily Mail: Number of first-time buyers hits record low

The number of first-time buyers has fallen to its lowest level since records began. With the average house price approaching £200,000, young people accounted for just 15 per cent of all purchases in the past year, research shows.

BBC Lies: UK home price rises 'to continue'

BBC using numbers to try to confuse people. Can someone work out exactly what the 1500 people surveyed said? 55% rise, 45% fall?

BBC News: UK home price rises 'to continue'

The quoted survey suggests that "one out of every three people expects UK house prices to increase by more than 6% in 2007". It goes on to say 55% of people think prices will rise (which leaves 45% for flat or falling prices, including "10% of people [who] predicted a drop in prices of more than 20% before the end of 2007). How they can justify the title of the article from the content I don't understand.

Asia Times: Global economy faces a dangerous year

Rising inflation and falling home prices are likely to push the US economy into recession by the second half of 2007. Gathering economic weakness, combined with negative real yields on US Treasury securities and growing political pressure to weaken the dollar will lead to significant dollar depreciation against most currencies............

Telegraph: Business comment

Roger Bootle, still making sense, but has given up making predictions! (Thanks to Fatso on the forum for spotting this) Merry Christmas to all fellow HPC bloggers - here's hoping for a Happy New Year!

BBC News Online: Ministers 'braced for crime rise'

The Police have warned of failing economy, criminal activity to rise as economy dips in New Year warn Police in 'Secret' leaked memo. A straight warning from those who actually know what is going on in the UK's streets and neighbourhoods.

Press and Journal: CITY'S SOARAWAY PRICES LEAD PROPERTY MARKET

Householders in Aberdeen have seen the value of their properties soar by 27% during the last 12 months, the biggest rise anywhere in Scotland. The average price of a Granite City property is now £171,767 - nearly £45,000 above the Scottish average, according to an authoritative study published today.

Sky News: Report's warning on crime

A leaked Downing St memo reveals the Government is aware of a looming economic slowdown and it's consequent social effects. Enjoy Christmas as it looks like 2007 is going to be a difficult year for many. "A slowdown in the economy is threatening to reverse recent falls in crime levels...."

Firstrung: A mortgage is for 25 years, not just Xmas - Firstrung newsletter

Well this is our last communication of the year, we'll keep it brief! Firstly thanks for all the support, the readership of the site has grown exponentially over the past year. Similarly the reputation of the site and that of the skeleton team that 'power the proposition' has grown leaps and bounds during 2006.

Firstrung: Firstrung - first time buyers - the week in focus

Hats off to Inside Housing for publishing this information to a wider audience and confirming the suspicion some market commentators have held for some time - buy to let investors are in it for capital growth only and are largely ignorant of investment yield

Free Help Advice: Consumers should review their debt situation in the new year, says John Charcol

John Charcol, the UK’s leading independent mortgage adviser, has urged consumers to review their debt situation and set themselves a budget for each month in the new year. The company has advised consumers to move their credit card debts to a lower unsecured rate or gain advice on consolidating with their mortgage.

Free Help Advice: Housing shortage:Demand for property would rise across UK in 2007

2007 could be an extremely prosperous year for people living in coastal or university towns, as well as in areas that have up until now been viewed as unfashionable, according to FindaProperty.com, a leading property website in the UK. FindaProperty said that the demand for property in almost all British towns is set to rise next year, regardless of the interest rate hike expected in February.

Free Help Advice: Britons pay almost a quarter of their wages towards taxes

According to the detailed national accounts for the third quarter released yesterday, the tax burden on households in the UK has risen to its highest level since modern records began, while the growth in income has slowed substantially.

Posted by matt @ 03:07 PM 7 Comments

BBC News: Venezuela mulls euro oil switch

Venezuela has expressed interest in an Iranian move to ask buyers to pay for oil in euros rather than US dollars. The oil-rich nation said it planned to see if a similar scheme could be introduced to its crude exports. Iran, the world's fourth-biggest oil producer, has already asked customers to pay for its oil in euros because of the current weakness of the dollar.......

Posted by archie @ 01:41 PM 6 Comments

First Rung: Where are house prices heading in 2007?

Predictions for 2007 from Halifax, Nationwide, Council of Mortgage Lenders (CML), Capital Economics and Royal Institution of Chartered Surveyors (RICS).

Posted by jellycaster @ 11:05 AM 9 Comments

Guardian: Million pound mortgages all the rage

The record bonuses paid in the city of London this season coupled with high housing demand in London is increasing the number of million pound plus mortgages. Savills Private Finance estimate that of the £8.8bn paid in bonuses, around £5.5bn will be invested into property.

First Rung: House price crash still a worry for U.K. business confidence - Lloyds TSB

A survey carried out by Lloyds TSB indicates that 1 in 3 businesses are losing confidence in the stability of the economy and worried about a house price crash in 2007.

Guardian: Further rate rises feared as economy races ahead

Spending in UK economy grew at fastest rate for two years in third quarter, and house prices kept buoyant by city bonuses. Ananlysts predict IR hike in New Year.

Firstrung: Buy to let preview for 2007 - Mortgages for Business

The buy to let market remained strong throughout 2006 and looking forward to the New Year it is likely to remain strong, according to independent buy to let brokers Mortgages for Business review of the year to come. David Whittaker, Managing Director of Mortgages for Business comments: "The main pressures on the buy to let market in 2007 are likely to be from further interest rate increases and the Government's decisions on whether to finally implement initiatives such as the seller's pack and the tenancy deposit scheme".

Firstrung: First time buyer auction advice from property secrets

A 60% year on year growth in property purchases at auctions signals another strong year for auctioneers but Property Secrets CEO Neil Lewis believes that getting the right property at auction is beset by obstacles that for the uninitiated, which will hit them where it hurts most, their back pocket.

bbc website: Where are house prices heading in 2007?

The last bear has turned bull. No-one is predicting a fall. Capital Economics predict a rise next year, but "To date they have been about as wide off the mark as is possible. They still believe that property is overvalued and will eventually fall in price."

TimesOnline: Tax burden on wages climbs to the highest since records

Taxes on incomes rose by 6.7 per cent over the past year, much higher than the 4.6 per cent rise in wages and salaries.

The Telegraph: Living costs outpace earnings

Cash-strapped households are having to dig into their savings as the pressure of higher bills, higher taxes and lower wage growth slashes the amount of money left in their pockets, authoritative figures show

FT.com: IMF warns on threat to public finances

Brown's been overspending. Naughty boy! IMF was reported by FT saying that if there's any downturn, taxes will have to go up sharply to pay for it all! What's it about a rock and a hard place?

Financial Times: IMF warns on threat to public finances

Hmm....seems like Brown's spent thrift ways could come back to roost. Says finances will not be able to hold up if there's a global slow down. Not good.

TimesOnline: US pessimists say house price crash is inevitable

Peter Schiff, chief executive of Euro Pacific Capital argues that house prices will experience an unprecedented collapse, falling by as much as 70 per cent in some areas.

Posted by denzil @ 04:02 PM 15 Comments

BBC "News": Slow house market hits US growth

The US economy has grown more slowly than first forecast in the three months to the end of September as a weaker housing market hit consumer confidence. Favourite quote from a housing market bull "These are old numbers, that's the best way of looking at it,". The numbers were released today by the Dept of Commerce.

The Guardian: City expects rate increase after retail sales hit two-year high and mortgage demand rises

Talk of a poor Christmas for retail may prove to be confounded, as CBI data shows that many retailers are experiencing their best Christmas for two years. This data, coupled with high mortgage lending is leading city analysts to predict an interest rate hike in the New Year.

BBC News: UK economic growth strengthening

The GDP of the United Kingdom rose 0.7% in the past three months, according to the Office of National Statistics. This makes for year on year growth of 2.9%, an upward revision and on course to meet the Chancellor's target for the year.

Posted by jellycaster @ 12:25 PM 7 Comments

The Telegraph: Mortgages, house prices and retail all strong… can Bank resist higher rates?

House prices and mortgage lending are at the highest levels ever, according to data from the CML and Royal Institute of Chartered Surveyors. Many analysts are predicting the MPC will be unable to resist increasing interest rates in the New Year if Christmas retail figures are strong.

Posted by jellycaster @ 12:18 PM 7 Comments

Reuters UK: Persimmon sees house prices rising

Persimmon, the country's largest housebuilder, announced its 2006 profits will be in line with expectations, and it is bullish about house price increases into 2007.

Times Online: Wimpey backs off from US market after hit on profits

George Wimpey, the housebuilding firm, gave warning yesterday that full-year profits could take a hit after a £40 million write-down from a review of its land contracts in the United States.

Times Online: US pessimists say house price crash is inevitable

Just a few more pieces of bad news about housing could have a significant impact on the American pysche.

Free Help Advice: Debt woes: Driving home for Christmas: The Matrix has you!

Just 47% of UK employees said they were either happy or very happy with their current position, this means a whopping 53% of UK employees are unhappy in their jobs. So why do they carry on slaving away? The answer is simple, huge debts and mortgages to service. Imagine getting up every morning (Groundhog Day) knowing you have to go to a job you hate because you need the money to service your debts.

Daily Mail: House market 'disaster' warning

Lombard spokesman Diana Choyleva said the housing market 'continues to power ahead' and is 'alive and well.' But she warned there is a danger that the bubble will burst in 2008 if the rate rise does not slow down.

Times: US pessimists say house price crash is inevitable

US pessimists say house price crash is inevitable

FT: Euro rallies on inflation concerns

European Central Bank President Jean-Claude Trichet warned the European Parliament of the risks of inflaiton and said it was likely there would be further IR rises in the New Year. This helped nudge the Euro to an all time high against the yen.

Posted by jellycaster @ 01:55 PM 8 Comments

Reuters UK: Bank votes for steady rates

The Bank of England Monetary Policy Committee were unanimous in their December 7th decision to hold interest rates at 5.0%. However, there were differences in their attitudes to inflation and trends for 2007.

Daily Express: House prices soar for 13th month running

City bonuses and a robust economy have helped keep demand for housing across the UK high, leading to price increases for the 13th consecutive month, the Daily Express report.

Posted by jellycaster @ 01:08 PM 6 Comments

BBC News: House prices 'to be 15% higher'

Lombard Street Research have predicted that there will be no slow down in house price growth in 2007. After correctly predicting a 10% increase in 2006, they estimate 15% for 2007.

Posted by jellycaster @ 12:59 PM 19 Comments

BBC News: Mortgage lending hits new record

Data from the Council of Mortgage Lenders shows that a new record amount of mortgage lending took place in November, despite the IR rises in October. This is a 19% increase compared to last November's figures.

Firstrung: First time buyer mortgage needs up 14.05% percent on a year ago

Over the 12 months to November 2006, the average first-time buyer property value searched against on Moneyextra.com's mortgage comparison tool rose by 14.05 per cent to £182,113 - that's more than twice the rate of property price inflation across the whole housing market. It compares with a rise of just 6.27 per cent to an average £268,201 for those looking to move to a new home (which is actually down by a marginal £307 on October 2006).

FT: Wimpey to write-down US assets

Current trading conditions in the US were described as “very poor”. Wimpey’s order book value currently stands at some $198m, a 68 per cent drop on last year. In October the company had said the value of the order book was down 35 per cent. Prices and margins are well under last year’s levels. Completions are down 12 per cent and second-half cancellations are 50 per cent. Furthermore, the outlook for 2007 is poor with a further “material” drop in sales values and volumes forecast.

Charles Hugh Smith: How to Buy a $450K Home for $750K

Interesting article listing failures in US economical policy. How much of this applies here?

BBC News: US sees jump in producer prices

US wholesale inflation registered its biggest increase in three decades in November, prompted by higher gasoline prices, official figures show.

inthenews.co.uk: Cautious Japanese hold interest rates

The Bank of Japan has opted to keep interest rates in the country at 0.25 per cent in a widely-anticipated move.

Posted by jellycaster @ 06:08 PM 6 Comments

Free Help Advice: Britons are switching credit cards to save money!

According to a study carried out by MoneyExpert.com, nearly 25 per cent of credit card holders in the UK have changed their provider in the last year, in an attempt to get a better deal, transferring an average balance of almost £764. The study showed that many people in thye UK are continuing to switch credit cards to cut costs, in spite of the decline in the availability of zero per cent interest deals.

BBC: US sees surge in producer prices

The producer price index, which measure the cost of goods from US factories, farms and refineries, rose 2% last month, well above forecasts. The US Labour Department figures saw the core index - which exclude volatile food prices and energy - rise 1.3%. November's increase challenges the notion that inflation is under control.

Free Help Advice: Property agents expect house prices to carry on rising as demand outstrips supply

A survey published today, showed that estate agents in all regions across the UK expect house prices to carry on rising well into the new year, as demand continue’s to outstrip supply. The Royal Institution of Chartered Surveyors (Rics) has said that a fresh fall in properties for sale has combined with strong interest from potential buyers to increase the imbalance between demand and supply.

Firstrung: House price inflation stalls in November but housing market refuses to find reverse gear

House prices inflation reached a plateau in November but market conditions remain strong, says RICS's UK housing market survey published today, (19 December 2006). In November, 47.4% more Chartered Surveyors reported a rise than a fall in house prices, down from 47.7% in October, but still more than double the long run average of 21%.

Posted by converted lurker @ 11:33 AM 8 Comments

Firstrung: Shared equity not the only answer to housing crisis - National Housing Federation

Responding to Chancellor Gordon Brown's Pre-Budget Report, David Orr, chief executive, National Housing Federation, said on new housing and shared equity schemes: "The Chancellor has signalled his intention to increase the supply of much needed affordable housing. Now he must act. "With 1.5 million people on housing waiting lists, the Government must increase investment in affordable rented homes as well as shared equity schemes. "Shared equity schemes alone will not end the housing misery of millions of people on moderate and low incomes. "The National Housing Federation is calling for 150,000 new affordable rented homes and 60,000 new low cost ownership homes in the Comprehensive Spending Review 2007."

IFA online: Treasury's 'over-optimistic' forecasts hinder MPC

The House of Lords have criticised the Treasury for producing “over-optimistic” forecasts which is making it “more difficult than it needs to be” for the Bank of England to set interest rates. A report published today by the House of Lords Economic Affairs Committee, also recommends the Bank of England should carry out more research into the link between rising house prices and consumer spending.

Posted by little professor @ 09:07 AM 23 Comments

The Sunday Times: Berlin — the next property hotspot

Flats for sale from €50,000 in Berlin

BBC News: First class stamps to rise by 2p

First class stamps to rise by 2p to 34p April 2007 up from 30p last March...13.3% increase in just a year. A new pricing structure for letters was introduced in August The price of a first class stamp is to rise by 2p to 34p from next April, the Royal Mail has announced. The cost of a second class stamp will also increase, by 1p to 24p. The hikes come after the price of both stamps rose 2p last April. The cost of larger first class letters of up to 100g will rise 4p to 48p, and bigger second class items by 3p to 40p. I thought general inflation was around 3%?

BBC: Parties eye 'surprise election'

Labour's rivals are eyeing the possibility of a snap general election, when Tony Blair steps down next year.

Daily Mail: No. 10 secret memo: We are seen as a shambles

Just Picked this up off the forum. A secret memo commissioned by Tony Blair indicate that Labour have no chance of winning the next election because the public regard them as a shambles. The confidential document states that, "Labour's standing is so low that the party's only hope of recovering may be to abandon Mr Brown and 'move to a new generation' by picking a much younger new leader.

BBC: Dollar dropped in Iran asset move

Iran is to shift its foreign currency reserves from dollars to euros and use the euro for oil deals in response to US-led pressure on its economy.

The Telegraph: It's hard to get the measure of inflation

There are as many ways of gauging inflation these days as there are of skinning the proverbial cat. Understanding the speed at which British prices are rising involves wading through an acronym soup of alternative definitions.

Free Help Advice: A third of store card users are unaware of the high interest rates

A survey carried out by The Motley Fool, a commercial website on stocks, investments and personal finance, has found that a third of store card users have no idea of the interest they will be charged, if they fail to clear their balance in full, within the interest-free period.

The Independent: Lords pile pressure on Chancellor

The Government's "consistently over-optimistic" growth forecasts may have forced the Bank of England into raising interest rates higher than it would have liked, a powerful House of Lords committee said today.

Free Help Advice: Consumers fear further interest rate hikes next year!

A survey from Lloyds TSB, which covered more than 2,000 consumers, showed that Britons are more concerned about the prospect of interest rate hikes now, than at any time since November 2004. 80% of people surveyed said that they expect interest rates to go up in the next 12 months. Only 4% of the respondents expect the interest rates to fall next year.

First Rung: House prices in the doldrums - Rightmove

Rightmove.co.uk has revealed that the average asking price in the U.K. has dropped this month by 0.3% (582 pounds) - but not due to a slowdown, but by sellers putting their properties on the market in the run up to Christmas.

Inside Housing: New builds left empty

Thousands of new homes are being deliberately left empty in England’s cities as investors try to cash in on large-scale house building programmes, an exclusive Inside Housing investigation has revealed.

Sources representing most of the major cities have said that a significant proportion of flats in apartment blocks are snapped up by property speculators – but then left vacant. In some blocks the number of empty homes matched the number actually lived in.

Firstrung: 14 million workers could be exposed to financial ruin in the event of an accident, illness or unemployment in the New Year

With council tax and utility bills going through the roof, research from Alliance & Leicester Protection has found that over half (51%) of British workers would not be able to manage financially if they were unable to work in the event of an accident, illness or unemployment, equating to 14,137,200 people.

Firstrung: Inside housing reveal the scandal of empty new build property

Hats off to Inside Housing for publishing this information to a wider audience and confirming the suspicion some market commentators have held for some time - buy to let investors are in it for capital growth only and are largely ignorant of investment yield.

BBC: Consumers gripped by rate fears

8 out of 10 people surveyed said they expected interest rates to be higher in twelve months time.

NZ Herald: Renting v Buying in NZ

An excellent summary of a book looking at the NZ housing market which is way worse than the UK. Contains some very obvious points that are rarely made in the pro property NZ media eg you need growth of > 9% to be better off buying v renting, a rate which is of course unsustainable. I will be sending a copy to my friends for christmas.

Firstrung: Young prefer renting upmarket to 'slumming it' as a first-time buyer

Lourna Bourke at Citywire is one of the most consistent and readable market commentators on the plight of first time buyers, here Lourna points out the options for FTBs renting whilst waiting for those opportunities to appear.....

Posted by converted lurker @ 12:45 PM 6 Comments

Firstrung: Property investment - how to be 'ahead of the curve'

Just because real estate prices seem to have hit a temporary ceiling in many countries around the world, that doesn't mean that profits from property investments are hard to come by. Even during a real estate market slowdown, stagnation or depression profits can be made locally and overseas. This article shows you the top ten tips that real estate investors apply to their property portfolio building strategy to ensure success from their investments.

Free Help Advice: Many families have ‘cancelled Christmas’ this year because of financial worries

According to homeless charity Shelter Cymru, nearly 200 families in Wales will have to spend their Christmas in bed and breakfast accommodation and many more cannot afford to celebrate this festive season, because of their financial woes. Announcing their findings on the 40th anniversary of the broadcast of the homeless drama Cathy Come Home, John Puzey, director of Shelter Cymru, said that homelessness is devastating many families all year round and Christmas is an especially difficult time for them. He said that forty years ago people did not realize how homelessness and bad housing affected lives and today the problem is greater than ever and it can happen to anyone. He added that 35,000 children in Wales are living in unfit housing today and Christmas brings cold, damp misery and suffering to many families without homes.

Assetz News: Buy to let boom fuelled by changing lifestyles

As has been widely documented, the liberalisation of landlord laws in the mid-nineties has led to a remarkable boom in the UK buy-to-let market, but new research suggests that the increase in the number of renters may also be due to changing sociological trends.

Posted by jellycaster @ 11:24 AM 18 Comments

First Rung: House price crash predicted by 24% of UK adults within 18 months

The first cracks in Britain's personal debt laden economy were revealed today as debt solutions consultancy, Thomas Charles (www.thomascharles.com) announced a widespread lack of faith in the stability of the UK housing market.

The Guardian Unlimited: 2 x maths teachers + 700 houses = 1 x £240m buy-to-let empire

House prices in UK will never crash, say Mr and Mrs Wilson of Ashford, Kent. If you think house prices are already outrageous, look away now. According to two former maths teachers from south London, who are Britain's buy-to-let king and queen, the property market will never crash. Husband and wife magnates Fergus and Judith Wilson have just signed a deal to buy their 700th house. If things go to plan, they will become the country's first buy-to-let billionaires. Every week they buy another house - and on one day alone spent £10m buying 40 properties off a distressed developer. by Patrick Collinson The Guardian, Saturday December 16, 2006

Posted by hyrax @ 12:44 AM 16 Comments

Firstrung: Interest only mortgages, beware the pitfalls - FSA

Consumers taking out interest-only mortgages generally have a reasonable understanding of the risks involved but a significant minority do not have a robust repayment strategy in place, the Financial Services Authority (FSA) said in a recent report.

Firstrung: SmartNewHomes.com records a 1.9 percent annual rise in the cost new homes

November has seen the biggest annual price growth in new homes since April, with the average price of a new home up 1.9 per cent on the price recorded at the same time last year. This year's annual price increase has bucked the trend experienced over the last two years, which has seen the average price of a new home fall towards the end of the year, an indication that the new homes market is set for a positive start to 2007. The price of a new home has risen 1.4 per cent over the last month, reinforcing the return of a positive trend for the new homes market at a traditionally quieter time of year. This month's decision by the Bank of England to hold interest rates should ensure a positive start to 2007

MSN: Thomson owner to axe 2,600 UK jobs

Around 2,600 UK jobs are being axed by the owner of Thomson Holidays as part of a Europe-wide restructuring programme.

The Guardian: Retail sales improve in November but fears persist of a bleak Christmas

Retail sales came in stronger than expected last month despite shops pushing through price rises for many goods, official data showed yesterday, as experts warned of a grim Christmas for the retail sector.

First Rung: Estate agents witness sharp sales decline of 21 percent in November

Members of the National Association of Estate Agents (NAEA) noted a seasonal downturn in activity in the property market during November, as buyers and sellers concentrate on the festive period, rather than home moves. The number of buyers on estate agents books decreased, as did the number of properties available for sale.

BBC News: Savers receive 'poor rate deal'

Banks and building societies have failed to pass on to savers about a fifth of recent Bank of England (BoE) interest rate rises, the BBC has found.

The Times: US inflation holds stready

Hopes of a soft landing in the US economy were boosted yesterday by a report which revealed that US consumer prices held steady in November.

First Rung: Nationwide see no end to first time buyers house price misery in 2007

Nationwide has predicted that house prices will remain firm in 2007, rising between 5-8 per cent during the year.

Free Help Advice: IVAs will overtake bankruptcies in 2007, warns Experian

Experian, a business information company, has warned that Individual Voluntary Agreements (IVAs) will overtake bankruptcies in UK next year and more than 100,000 people will become officially insolvent. More and more people in the UK are now trying to walk away from their debts by taking out an IVA and latest figures released by the Insolvency Service show that IVAs and bankruptcies are now neck-to-neck as forms of insolvency and their numbers have gone up significantly over the last few years.

Free Help Advice: Banks use interest rate hikes to improve their bottom line

Research carried out by personal finance experts at Moneyfacts, in partnership with the BBC News website, has shown that banks are making good use of the recent hikes in interest rates, to push their profit margins up, by increasing the interest rates for millions of borrowers with mortgages, but not doing the same for savers.

Money Week: The taxing truth behind the Stern report by John Stepek

Link this article with the one "Times Online: Economics: Shakey Foundations with Joe Bolger". Lenders are tightening unsecured loads as bad debt rises. With IVAs/Bankrupts/Reposessions ticking up, how long will it be before Lenders tighten Mortgage criteria. The Media are doing well today! Hello Glorious Sunshine. Your intellectually rigorous comment please.

Times Online: Economics: Shaky foundations by Joe Bolger

Joe Bolger of The Times comments that house prices will only remain high as long as Lenders are prepared to stretch affordability. When they stop, so will the market. One for Glorious Sunshine to comment on.

The times: Rate rise threat grows as public sees higher inflation

A renewed jump in the public’s expectations of future inflation rates to the highest in more than six years yesterday heightened the threat that the Bank of England will be forced to impose further interest rate increases next year.

Posted by holding out @ 12:53 PM 6 Comments

Guardian: Centrica to axe 1,300 jobs

British Gas owner Centrica plans to axe 700 back-office roles at its British Gas Residential Energy unit, closing its Stockley Park headquarters in west London and relocating staff to Staines, Surrey. It is also restructuring its British Gas services team with the loss of 340 jobs and streamlining its group corporate structure, leading to a further 270 job cuts.

MoneyExtra: House Prices Robust for 2007

The housing crash, predicted around this time of year by some industry doom mongers, will have to be put on hold again. According to the latest report by Nationwide , house prices will increase by 5-8% over the course of 2007. Nationwide's Fionnuala Earley commented "we can expect to see a few months of double-digit annual house price inflation in the first half of the year."

Posted by little professor @ 12:41 AM 8 Comments

Home.co.uk News: Momentum will support house prices until summer

Nationwide said this morning that it expects the rate of house price growth in 2007 to be relatively robust at between 5% and 8%. Momentum gathered in 2006 will flow into the early part of 2007, and this will be supported by a buoyant economy, stable interest rates and a continuing shortage of housing supply. Plus a bewildering graph from Fionnuala Earley

Home.co.uk News: Public under-informed about housing market

Nearly one in five people think that estate agents carry out conveyancing and further, the majority of homeowners do not know what they are paying for in a local property search. These are some of the startling findings of a poll commissioned by the Council for National Land Information Service (C-NLIS), which reveals that the British public are uninformed about many areas of the housing market.

BBC News Website: Interest-only mortgages warning

A significant minority of people with interest-only mortgages do not have "robust plans" to repay them, warns the Financial Services Authority (FSA). [BBC Website - would you adam 'n' eve it?!]

The Age: Sluggish market hits builders

BUILDERS continue to face difficult conditions, with the number of housing starts barely rising in the September quarter. Economists and industry groups point to poor levels of housing affordability and rising interest rates as reasons for the sluggish conditions in many parts of the country.

Free Help Advice: First-time homebuyers should think twice before taking an interest-only mortgage

Experts have warned first-time homebuyers, who are struggling to get a foot onto the property ladder, should avoid taking an interest-only mortgage, unless they have a suitable repayment vehicle in place. According to the Financial Services Authority (FSA), 15 per cent of first-time buyers and repeat purchasers, who have taken an interest-only mortgage, lack an appropriate repayment strategy.

Free Help Advice: British consumers getting more cautious with their debts, says (CCCS)

A quarterly report published by the Consumer Credit Counselling Service (CCCS), shows that British consumers are getting more cautious with their debts. The report states that more and more consumers are borrowing less with their credit cards and many CCCS clients are taking great care in making their debt repayments on time.

This is Money: Homes to rise £14,000 in 2007

Robust house price growth has been predicted for 2007 by Britain's biggest building society.

CityWire: Buy to Let: the spectre of repossession returns

The ongoing debate over whether buy-to-let repossessions are rising will, if nothing else, alert novice landlords and potential investors to the fact that buy-to-let is not a licence to print money. The cat was set amongst the pigeons by a recent report in the Financial Times which claimed that repossessions on investment properties were increasing. Both the Council of Mortgage Lenders (CML) and the Association of Residential Letting Agents (Arla), were quick to refute these claims. The difficulty in getting to the truth is that all those in the property market have a vested interest in being optimistic.

CityWire: Fusion service to enable investors to grab repo deals

Buy-to-let investors can register with a new service which lets them get first option on repossessed properties, rather than having to bid against the professionals at auction. Fusion Property Service has introduced a home buying service for lenders with vacant accommodation or arrears on a property which might move to repossession and homeowners seeking a quick sale.

Free Help Advice: Personal and Corporate debts increase threats to financial stability in the UK!

Sir John Gieve, deputy governor of the Bank of England, has commented that rising corporate and personal debts in the UK have increased the threats to financial stability of the country and investors are under-pricing these risks. He said that he is not sure whether these risks are priced into the market and over-optimism in the financial system can have costs not just for the consenting counterparties, but more broadly across the economy.

The National Association of Estate Agents: SEASONAL PRE CHRISTMAS SLOWDOWN IN HOUSING MARKET

AVERAGE ASKING PRICE NOVEMBER 2006 £211,401 AVERAGE ASKING PRICE OCTOBER 2006 £226,768 Members of the National Association of Estate Agents (NAEA) noted a seasonal downturn in activity in the property market during November, as buyers and sellers concentrate on the festive period, rather than home moves. The number of buyers on estate agents books decreased, as did the number of properties available for sale.

Posted by jason @ 07:55 AM 16 Comments

BBC: Views on high house prices sought

The government is calling for views on how to tackle the growing cost of housing in Northern Ireland. Property prices are now rising at a rate of more than £100 a day in Northern Ireland. The government has said there is a "serious lack" of decent, affordable housing for people to buy or rent.

Posted by jason @ 07:52 AM 6 Comments

Warning as base reaches 5%: Estate Agency News

THE latest interest rate increase could be a rise too far for a significant number of areas in the UK where the housing market is under-performing, the National Association of Estate Agents have warned. As had been widely expected, the Bank of England decided to raise rates from 4.75 per cent to five per cent, following a similar increase in August. Peter Bolton King, the chief executive of the NAEA, said: “The national picture for the residential property market appears to be extremely strong and buoyant but there are vast regional differences with some areas significantly out -performing others.

The Times: Why I've lost my faith in Gordon Brown

The past seven days have been a watershed week in British politics. Gordon Brown may not yet have become prime minister, but already his prospective government appears to be foundering. Writing this sentence causes me considerable embarrassment and regret. Embarrassment because I have mostly backed the Chancellor’s side in the endless Blair-Brown feuds and have consistently dismissed any prospect of a serious challenge to the Brown succession. Regret, because I have always believed that Mr Brown could potentially make an excellent prime minister and that he would certainly avoid the most egregious policy errors — higher taxes, increased regulation, kow-towing to trade unions — predicted by his detractors.

CityWire: Huge loss of faith in housing market, poll shows

A poll by YouGov shows many are expecting a house price crash within the next 1 or 2 years. Many are therefore putting off buying as a result. One factor making people less confident in the housing market is apparently the recent rate rises.

freehelpadvice website: Many people in UK are expecting a crash in property prices: Its official

Read the comment by Scott on this site. Obsession with home ownership is ruining our lives. We live better than the Kings of old and we should instead focus on indulging in our fantasies, just like they did.

Free Help Advice: Planning to call a debt counsellor? Do it now, because they will be too busy in January!

Debt advice agencies have urged consumers struggling with debts to contact them now, rather than waiting till the new year, during which these agencies would be flooded with calls from people having problems with their post-Christmas bills, making it extremely difficult for them to respond to debt related queries, at the earliest.

Reuters: Wages pick up pace as employment falls

Britons' pay packets grew more than anticipated in the three months to October and unemployment fell unexpectedly last month, boosting speculation interest rates will rise further next year.

Free Help Advice: Interest rates up for sure: The clock is ticking

Highest rises in utility bills for 26 years, pushed the consumer price inflation to 2.7 per cent in the month of November, up from 2.4 per cent in October. With inflation shooting up to its highest rate since the introduction of the current inflation measure some ten years ago, another interest rate hike seems imminent. Inflation has exceeded the Bank of England’s target of 2 per cent, for the seventh time now and it is dangerously close to the 3 per cent level at which Mervyn King, the Governor of the bank, would have to write a letter of explanation to the chancellor, Gordon Brown.

The Telegraph: 'Dollar on losing streak, commodities are hot'

Just a quick post in the middle of my move. Jim Rogers has told a packed audience of natural resources investors to "get out of the dollar, teach your children Chinese and buy as many commodities as you can". I best invest in some commodities with the cash gained from the house sale.

BBC: Unemployment falls to 1.7 million

Unemployment in the UK fell by 7,000 to 1.7 million in the August to October period, according to official figures. The drop left Britain's jobless rate unchanged at 5.5%, the Office for National Statistics (ONS) reported.

Bloomberg: U.K. Jobless Unexpectedly Falls the Most in Two Years

U.K. unemployment unexpectedly fell in November by the most in almost two years and wage growth accelerated, adding to the case for higher interest rates.

TimesOnline: Fed warns of hike, but interest rate stays at 5.25%

The US Federal Reserve warns of rise in interest rates.

TimesOnline: Rate rise threat grows as inflation surges to 10-year high

The threat of another rise in interest rates in the new year escalated yesterday after inflation figures were much worse than expected, htting a ten year high

Posted by denzil @ 10:56 AM 11 Comments

Free Help Advice: Rising house prices force first-time buyers to borrow more

According to the Council of Mortgage Lenders (CML), the financial strain of buying a home is increasing with time and first-time buyers are being forced to borrow more to get onto the property ladder. CML said that in the month of October, first-time buyers had to borrow a record 3.27 times their incomes to take out a mortgage and those moving house had to borrow a near-record multiples of 2.98 times their income.

Monsters and Critics: Inflation at new high

The worst part of the housing market downturn may be over in California and how long it will weigh on the state's economy may be shorter than expected, according to a report released on Monday.

Posted by jellycaster @ 04:46 PM 12 Comments

FT.com: MPC member explains why he voted to raise ra