- London house prices fall at the fastest annual rate since height of the financial crisis - London house prices fall in 5th month in row, worst falls since 2009 - London rents dropped at the fastest rate in eight years - ONS - Brexit, London property slump put brake on UK house price growth - Consumer spending declined in July as inflation increased

"Chief Secretary to the Treasury Liz Truss blasted “nimbys in Britain” and called for a major overhaul of UK planning laws. But she was attacked by a Conservative colleague who said the party would face an electoral “catastrophe” if it fails to protect the greenbelt. Theresa May has vowed to fix the broken housing market." Good job we have a strong Prime Minister on the case then.

"Pryor dismisses some indices entirely, including one from the Royal Institution of Chartered Surveyors (“the views of 250 people and what their guts tell them”) and those produced by mortgage lenders Halifax and Nationwide (“they’re just kindling”)."

Everyone's favorite Toryshire parasite does it again. A 0.25% base rate increase = 3.3% increase on a £1500/pcm rental. And as you'd expect the comments are excellent.

Posted by landofconfusion @ 02:25 PM 8 Comments

I am pretty sure that the original plan was to retire QE first before raising rates, as otherwise it might appear that the BoE has printed money and to cover inflation raised borrowing costs for everybody else. That aside, usually for each debtor there is a creditor, in the case of QE (10 thousand apiece), there is no debtor. The money has been printed, any interest on gilts being a BoE profit is promptly remitted back to the UK government. So who is the payer of the additional interest on the fresh deposits created by QE? It seems nobody. So its hard to see how rates on savings can increase. So the wonderful BoE has increased borrowing costs but without increasing saving rates, the stick but not the carrot.

A detailed look at the issues buy to let landlords need to consider when contemplating moving a rental property business into a limited company structure.

Unusually excellent article from london standard. Points out that returns on stocks are 7% but for gilts slightly negative in real terms, but that pensions are forced to calculate on known returns. There are no guaranteed equity returns so they are forced into gilts. My view is that pension funds are forced to provide free loans to government. Anyway, -if- pensioners every manage to do anything about being fleeced (which they have known about for ages without doing anything, in fact legislation to force lending to gov. is worse) then borrowing costs would be going up, and a lot. What is also interesting is that you might think stocks have gone up a lot because of QE, but they would have gone even further with pension purchases.