Bear necessities: Brexit chaos fuels fall in living standards

Grauniad: Pay squeeze intensifies as wage growth falls further behind inflation

Fairly simple mechanism folks. The falling pound means more expensive imports, and wages are not keeping pace with inflation. Only one way this can impact on ability to service rent or mortgage. And can you really see it getting better as the Brexit chaos continues?

Posted by nickb @ 01:16 PM 9 Comments

Increasing the supply of homes for foreign investors

The Guardian: Foreign investors snapping up London homes suitable for first-time buyers

First time buyers are missing out as homes are bought investors from Hong Kong and Singapore at inflated prices. The mayor of London said: “international investment plays a vital role in providing developers with the certainty and finance they need to increase the supply of homes and infrastructure for Londoners”

Posted by cyril @ 07:06 AM 4 Comments

Saturday, Jun 10, 2017

There is such a thing as HPC after all

Onenewspage: Crowd of house buyers rush into estate agentsin China after prices plummet

Video showing a big crowd rushing into an estate agent's office in China to buy real estate after house prices crash. It must have been a very sudden crash for people to fall over each other like this. Central and local governments have been curbing house price growth all year - by restricting the buying of second homes, increasing deposits and reducing property developers' borrowing to buy land. (I posted this video on Thursday but it didn't appear - maybe I didn't use my admin password, so apologies if it turns up again later.)

Posted by icarus @ 08:50 AM 1 Comments

Thursday, Jun 8, 2017

Food for the Bears on Election day !

Financial Reporter: Transactions plummet by a fifth since SDLT reforms

The property market in England and Wales has been "shattered" since the government introduced its stamp duty reforms, according to Nested analysis. The research, which used data from Land Registry and Zoopla, found that transactions across the country fell annually by almost a fifth - 19% - across England and Wales and by as much as 33% in London, as the government’s 3% stamp duty surcharge on second homes saw investors exit the property market.

Posted by jack c @ 10:18 AM 4 Comments

Wednesday, Jun 7, 2017

And in the same breath let us tell you they are rising!

Grauniad: UK house prices rise for first time in five months

Halifax data say prices rose in May. Curiously the Graun does not refer to its own article a few days back reporting Nationwide data saying they fell. NW data were seasonally adjusted. Are the Halifax data? Are they both mix adjusted? Is it just sampling error on the back of low transactions volume? where is the signal in the noise?

Posted by nickb @ 02:20 PM 2 Comments

Tuesday, Jun 6, 2017

House price = capitalised value of rental income

Torygraph: Rents follow house prices and show first fall since 2009 crisis

Homelet data records rents falling in May. I look forward to talking with my landlord about this ;-)

Posted by nickb @ 02:06 PM 13 Comments

Sunday, Jun 4, 2017

HPC gets a name check in the Grauniad

The Guardian: Yes, house prices are falling: but they probably won’t fall quickly

Fame at last

Posted by cyril @ 10:10 AM 15 Comments

Thursday, Jun 1, 2017

Crashy crashy

BBC Business: House prices fell again in May, Nationwide says

Annual growth 2.1% . Weakest pace for almost four years

Posted by magnifico @ 08:23 AM 11 Comments

Saturday, May 27, 2017

... But but but... Enfield still looking good ??

Business Insider: House prices in London are being cut as the once-crazy market continues to cool

The number of asking-price reductions is growing fastest in outer London boroughs like Barking & Dagenham, where 28% of homes were discounted compared to 21% in January, and Newham, where 24.5% had reductions compared to 20% in January.

Posted by techieman @ 06:16 PM 27 Comments

Thursday, May 25, 2017

Here's what sends US rents through the roof.

Michael Hudson: Another housing bubble?

In 2008 the problem stemmed largely from liar loans for buying houses. Not so now. 10 years ago US rents tended downwards because new owner-occupiers were desperate to have renters to help with the mortgage. So, house prices rose while rents fell. After 2008 a large % of the 10m foreclosures were bought for cash by hedge funds (HFs). With ZIRP the HFs decided that it was more profitable to buy foreclosed properties and let them out at high rents than it was to write mortgages or flip the properties. Mortgages are hard to get and HFs have monopolised the rental market in many areas - so renting is also hard. So the banks are looking for more NINJAs to whom they can lend. Answer - government guaranteed student loans, which create spiv universities.

Posted by icarus @ 12:50 PM 0 Comments

Main Blog | Archive | Add Article | Blog Policies