May 2016 Archive
Tuesday, May 31, 2016
Peak Mortgage Zombies
Are UK house prices about to crash?
All the jabbering about Brexit is clouding one fact about the UK housing market. ItÂ’s currently slowing down. I suspect itÂ’s less to do with Brexit or buy-to-let, and more to do with the fact that house prices in the UK are wildly expensive. House prices are too damn high compared to wages.
Peak rental supply
Signs of ANOTHER housing crash: London rent prices drop hitting landlords
RENTS in London fell in April taking landlord returns to almost the lowest level in the country, in yet another sign the market could be heading for a shock crash.
Monday, May 30, 2016
Martin Armstrong exposes rampant BREXIT propaganda
Open Letter to the Guardian
Despite the propaganda, Britain's economic growth peaked prior to joining the Common Market and has fallen ever since. Is it a co-oincident that our major heavy industries collapsed after that date, leading to the winter of discontent, 3 day weeks? Our heavy industry, fishing, mining, etc. continues to be gutted, and our service industry takes in in-spite of rather due to the EU, who would strip mine it to resolve problems in Greece, France, Eastern Europe, etc. before they would give us a hand. Next to go is the NHS and our welfare system. That is the horrible truth.
Sunday, May 29, 2016
Peak Peakyness
House prices compared with earnings 'close to pre-financial crisis levels'
this cheap borrowing had been the biggest driver for demand for homes. “Since 2013, the demand for housing has been turbocharged by chancellor [George] Osborne’s help-to-buy policy and the search for yield – which has resulted in the accumulation of housing wealth as an investment alternative for low-yielding financial assets,” it said. “As a consequence, house prices are now close to an all-time high of more than six times disposable income.” The firm said couples buying together were increasingly taking on large loans relative to their income. Before the crisis fewer than 30% of joint mortgages were taken at more than 2.75 times income , but now that proportion has risen to more than a third.
Saturday, May 28, 2016
The peace and quiet of contemlation during Purdah
What is Purdah, and how will it change the EU referendum debate?
Starting on Friday, Purdah will prevented civil servants from helping the Government's referendum campaign. The incessant slew of panicked briefing papers telling us the sky would fall and why toddler Britain couldn't survive on its two feet should come to an end. In light of all that propaganda barely lifting BREMAIN above 50%, we could see BREXIT soar and take over during the next month, as Cameron looses his paid thugs in Whitehall. Final question is whether postal vote fraud will see ballot boxes stuffed like in Austria.
Friday, May 27, 2016
Bank of mum and dad not enough
A million more youngsters to live with parents, says Aviva
More young couples are choosing to live with their parents these days because they can't afford to buy or rent. But apparently there are some positives - such as being able to eat and go on holiday, as well having a bit of company around the house.
Thursday, May 26, 2016
Why we need property taxes
Take a look inside the 'forgotten' £3m mansion in London's East End
"This is the incredible staircase of a £3m '"forgotten" Georgian mansion which has gone on the market in the heart of London's East End. Built between July 1741 and October 1742, the spooky four-storey Malplaquet House has not been lived in since 1895 but has been restored by its current owners." On top of it, squatting has been criminalised now. This could have provided housing for lots of people for 120 years and the owner would still have made out like a bandit even if they burnt it to the ground.
Wednesday, May 25, 2016
Game Over
Property market is going to implode as housing nears peak affordability
Property prices in Britain may be surging due to a horrendous imbalance of supply and demand — but the market is poised to implode. Why? Because Britons are not earning enough money to either get on the housing ladder or are spending such a large portion of their wages on mortgages that may not be sustainable.
Saturday, May 21, 2016
Desperate times call for desperate measures
House prices face 18% hit if Britain quits EU, says George Osborne
Ok I can believe that World War 3 will break out if we leave the EU but this latest prediction really takes the biscuit
Friday, May 20, 2016
Underlying weakness in British economy may necessitate ‘additional monetary stimulus’,
Bank of England may need to cut interest rates even if UK stays in EU
Its not BREXIT, its a global deflationary slump, stupid. Of course, BREXIT would help encourage wage inflation and help lift the UK economy from its present malaise, but the globalists in charge will not tell you that, because it does not support their corporatist objectives..
Thursday, May 19, 2016
Peter Schiff – Buying a house as an investment
Peter Schiff - Buying a house as an investment
Peter learns from a real estate "expert" how to pay more for less !
Funniest Brexit article I’ve seen yet
Rents and property values would drop after Brexit, say landlords
But David Cox, the head of Arla, said tenants should not get too excited about rent falls, as buy-to-let landlords may quit the market en masse following a vote in favour of Brexit. "The fact that rent costs would face downward pressure is both a blessing and a curse. While renters should face fair and reasonable prices, landlords need to be able to at least break even on any outgoings they have, such as a mortgage. If demand eases to such an extent that landlords cannot recuperate costs, we'll likely see a mass exit from the market, which would then just have the opposite effect on demand as supply falls – and we'd be back to square one." -- How could we possibly get by without all those landlords to help?
Wednesday, May 18, 2016
Pie + Sky
How much will your house be worth in 2030? Map reveals house price projections across Britain
The average value of a home in England is expected to reach £457,433 Typical prices to rise to £307,712 in Wales and £297,222 in Scotland The highest average expected to be in London, reaching £1m
Tuesday, May 17, 2016
Future plans of Londoners
Two-thirds of Londoners want to quit the capital:the East and South-East regions top the list for city dwellers in search of a better quality of life
More and more Londoners are moving to the countryside, with 66,000 households leaving the city last year - the highest number since 2007. 1/3 of people actually want to stay in London.......
The BTL disease spreading quickly into Europe
Mapped: European countries with the best buy-to-let income
Investors might be looking to increase their buy-to-let yields by searching for property outside London, but new research suggests the hunt should go well beyond British borders.
Monday, May 16, 2016
‘Dire’ outcomes of a Brexit vote
Brexit risks '25pc house price crash' but Fitch warns remain vote will not resolve EU tensions
House prices could crash by 25pc and the pound drop by a third if the UK leaves the EU, according to Fitch, which warned that social tensions risked boiling over even if Britain stays in the bloc. and then right at the end "Economists at ING also calculated that a Brexit would deal an economic blow to the eurozone."
Saturday, May 14, 2016
ARLA pretend not to understand
Landlords should be "squealing" under George Osborne's crackdown, Treasury minister suggests
Buy-to-let landlords should to be made to "squeal" under George Osborne's crackdown to help people to buy homes, a Treasury minister has suggested. The Residential Landlords Association said it was "shocked" by the response of the minister, during a private meeting earlier this month as it tried to raise concerns about a crackdown.
Friday, May 13, 2016
Could this be the best time to buy?
PROPERTY WARNING: Huge signs of house price CRASH as buyer numbers plunge
Best mortgage rates around at the moment..... huge uncertainty with the referendum..... most people stretched financially........
IMF’s turn to stoke the ashes of fear
House prices and stock market will tumble if UK votes for Brexit, IMF warns
So many prominent... respected... individuals warning us of impending house price crash.... yes crash.... if we vote OUT. It makes me think would i really risk my job and vote OUT? Or endure more of this stagnation?
Thursday, May 12, 2016
The calm before the storm….
New buyers deserted housing market in April, says Rics
So the last time we had a buyers strike like this was in 2008, Mmmm....
More reverse psychology from the Remain camp to vote Brexit
Bank of England cuts growth forecasts and warns Brexit will lead to lower living standards and falling house prices
More pressure on renters to vote Brexit
Wednesday, May 11, 2016
Plan to crash the wealthy home owners in London
Corrupt foreigners who launder money through luxury London homes face crackdown
"Foreigners suspected of using London's property market to launder ill-gotten gains will be forced to declare where they got their money from, Under new government proposals to fight global corruption. The measures, known as "unexplained wealth orders", will form part of the agenda on Thursday as David Cameron hosts an international anti-corruption summit in London." If this gains any traction at all it will destroy the London 'safe deposit housing market' The artice suggest that between 7.3% and 9.3% of the money is dirty. However, there are different shades of grey and it will send a massive warning signal tthat if you buy in London you could be exposed.
Tuesday, May 10, 2016
43% on income on rent/mortgage/bills….
The five British towns where renting a one-bedroom flat costs less than buying
"Renting is cheaper than buying for first-time buyers in only six towns in the UK, according to a cost of living study." "The number of people renting is also going up. The English Housing Survey estimated between 2013 and 2014 there were nine million tenants."
Monday, May 9, 2016
Treading water? until …….?
Housing market fears grow as prices take a dip
"Sliding consumer confidence is casting a shadow over house prices, Halifax warned today. The lenderÂ’s latest house price index showed a much sharper-than-expected 0.8% fall in average UK prices in April"
Who knows maybe Zoopla has finally called it?
Housing bubble 'has burst' as sellers slash asking prices
The housing bubble has burst, analysts have said, after sellers started slashing money off their asking prices and accepting offers up to 10 per cent less than the property was listed. The average discount on the original price of a property across Britain is now more than £25,000, up £4,000 compared to the discount in January, according to Zoopla, an online property portal.
Osborne getting the blame/credit for Halifax numbers
Stamp duty changes cool BTL market
House prices fell in April as buy-to-let purchasers disappeared amid rises in stamp duty on second homes, according to figures from the UKÂ’s largest lender.
Haggle hard!
Mapped: Where are the property bargains? The 10 areas where asking prices are being slashed the most
Nearly a third of houses have had their asking prices reduced since being put up for sale, in a sign that the feverish property market is finally starting to cool down. (Those cheeky residents of Barnet trying it on!)
Middle class renting nightmare might be getting a little better?
Middle-class 'buy-to-let dream' is over - as mortgage lenders to demand 40pc deposits
"Investing in buy-to-let property is on the verge of becoming unaffordable for middle-class savers" Saving is spending less than you earn, BTL is an investment, not saving. In addition, it's a pretty socially useless investment where it's speculation on house price rises in large parts of the country where yields are too low to make a decent income. Result is very poor quality as even the nicest landlords often can't afford to do proper maintenance. No new wealth being created here, if there was, housing would have improved vastly over the years like technology has. "limit it to an elite club of wealthy investors only." Who would ever want a landlord who isn't wealthy? Would anyone want to enter into a long term contract with a counterparty in a precarious position?
Sunday, May 8, 2016
A recent run of bad news on the economy may have chipped away at Mark Carney and other policymakersÂ’
Bank of England meeting could discuss cutting interest rates
You heard it first here whilst everybody took the preverbal, but now it looks increasingly possible. Discussions will focus on this because in the case of BREXIT, despite Osbourne's lies, rates will be CUT. In the case of staying in the EU, there may be bad news being hidden until that date to keep the proles quiet.
Osborne says vote Brexit for House correction…;o)
Sunday shows: George Osborne claims Brexit will lead to 'significant' hit to house prices
If you are under 55 and would like to improve your chances of ever affording a home then you should seriously consider voting Brexit This opportunity to vote for a Brexit really does take the issue, for a moment in time anyway, away from the politicians. It is a real shame that our politicians continue to value corporations above its own people. If the establishment is for a particular policy its usually because it will benefit influential businesses Its almost worth bringing down this whole shambolic system just to be able to say "Now we are in it together"
Saturday, May 7, 2016
The Political Topology is changing….
The housing crisis was Sadiq KhanÂ’s secret weapon
Excellent piece in the Spectator on why the Tories are loosing London and the shift in political topology that will usher in new politicians to curb the excesses of the Land Speculators and thier political backers. Lets hope he backs an LVT for London
Friday, May 6, 2016
The scam goes on
Rents rise as extra stamp duty kicks in and buy-to-let investors prepare for higher taxes
Rents increased across most of the UK as a stamp duty hike for buy-to-let landlords came into force, an index has found
Here we go again? (part 2)
Fancy getting a mortgage at 80? Top lender extends age limit for borrowers
LENDING giant Halifax has upped the top age limit on its mortgages to 80-YEARS-OLD, as Britons continue to live and work longer. Under the change, borrowers will be able to take out home loans where the term lasts up until their 80th birthday - up from the previous limit of 75.
Wednesday, May 4, 2016
Here we go again?
Barclays brings back the 100% mortgage giving new hope to first time buyers
Cashless people earning £50,000 can get three-year fixed deal at 2.99% | 100% mortgages vanished in 2008 after financial crisis took hold | Barclays deal requires family to put 10% in account for three years
Tuesday, May 3, 2016
Bubble, bursting, tumble, fear, crash and thats just the title
Housing market bubble BURSTING: Top prices tumble AGAIN sparking fears of CRASH
HOUSE prices in BritainÂ’s wealthiest areas sank at an even faster rate in April than the month before, with estate agents saying the plunge is reminiscent of the 2009 market crash.
I need help with my mortgage. Where’s their nearest branch?
'Bank of mum and dad' finances 25% of UK mortgage payments in 2016
Parents will lend over £5 billion this year, providing deposits for over 300,000 mortgages and purchasing homes worth £77 billion The research shows that three-quarters of family-funded house purchases are funding by parents, with family friends and grandparents also making up the difference. Get your begging bowls out.
Monday, May 2, 2016
What do you mean, ‘next’?
Is a buy-to-let bubble the next scandal in housing?
15pc of all mortgages now go to BTL landlords, compared to 8.5pc in 2007, before the last crash. BTL loans account for almost all the current growth in the mortgage market, with lenders planning to expand their BTL lending by 20pc per annum over the next two years. Lending standards are slipping. British banks have over £215bn of BTL loans on their books, compared to £146bn in 2009.
Sunday, May 1, 2016
The analysis HP referenced… Sauce for Bears??
Great Expectations The gap between asking and achieved prices Lonres.market.briefing. 12 April 2016
This is the 10% which the Tgraph was referring to. Is not a 10% fall but actually the report refers to what percentage of properties have had their asking prices REDUCED by 10%+. "Analysis of quarterly sales in prime central London shows almost half (49%) of properties sold in Q1 2016 had their asking price reduced before a sale was agreed. This is higher than the 40% of properties sold in Q1 2015 and 27% two years ago in Q1 2014. The lettings market has also seen an increase in price reductions, from 32% a year ago to 45% in Q1 2016." But aren't ALL rents increasing?? "and a fall in the number of overseas buyers are all impacting the prime central London market." Eh? A But the number of overseas b uyers are increasing .... surely? Q: Where the smart money goes does the rest follow?
“London has fallen”? – sorry Mr. Butler
Housing market on the edge?
99% of what you read in the papers about the housing market, .... is put out by people with something to sell. Estate agents, [lenders] – all know about the market because they are selling houses,.... mortgages or financial services but they must be optimistic or they lose business. No one will instruct a depressed estate agent...so these commentators MUST have a glass that is half full. As you can see from the graphs below, what we can see is that half of all homes sold in the first quarter of 2016 sold in London went for more than 10% below the guide price. Not just in some parts but across central London and across price bands! 60% of the property that did sell in Knightsbridge and Belgravia had it’s guide price reduced prior to selling. The market is on the turn. Aha - the 10%!!