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Caveat Mortgagor

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  1. I am sure legislation has been brought in during the last 12 or 18 months that prevents employers from inserting these clauses. Edit to add: Part of equality Act that came into force Oct 2010. http://www.mcgrigors.com/pdfdocs/insight/27april10.pdf Rather than prohibit pay secrecy clauses, the Equality Act makes such clauses 'unenforceable' against employees who make or solicit a "relevant pay disclosure".
  2. A recession made in Downing Street – but not caused by cuts Thursday 26th April 2012, 2:23am EDITOR’S LETTER ALLISTER HEATH IS this a recession made in Downing Street? In part, yes. Obviously, Gordon Brown is the main culprit. It will take years to recover from his mismanagement of fiscal, monetary, tax and regulatory policies, as well as from the global, cheap money bubble. But George Osborne can no longer escape blame either. His desire to cut the budget deficit is absolutely right – but his other policies have failed. There are four main domestic reasons for the UK’s poor performance (and they hold, even if as is likely, the official GDP figures out yesterday turn out to be substantially revised). The first problem has been the composition of the austerity package. Much of the tightening has been via tax hikes rather than spending cuts – capital gains, national insurance, stamp duty, value added tax, and now pasties and the rest. That was the wrong choice: lower taxes are good for growth, higher taxes are bad. The trick is to deliver austerity by cutting spending, not by hiking taxes. The next issue is that the government’s supply-side agenda has failed miserably. By now, developers should have been set free to build new airports and even cities; the labour market should have been liberalised; job-reducing red tape eliminated; the top rate of tax abolished; mad EU rules abolished, and so on and so forth. Britain needed a revolution; it was granted a few over-hyped reforms. With the exception of some small cuts to corporation tax, and some other changes, there is more red tape and more people face higher marginal tax rates now than when Labour was in power. There has been a massive onslaught on the financial services industry, much of it unrelated to sorting out the crisis. It’s madness. Add to that the ongoing war on wealth, the demonisation of successful people and business executives, and the decision to relentlessly attack – rather than reform to strengthen – the City and one begins to understand why firms are spending their cash abroad, rather than at home. Next, inflation. This is a recession made in Threadneedle Street, home of the Bank of England, as much as in Downing Street: excessive inflation has slashed real incomes and real wealth; this, rather than cuts, is what has depressed spending the most. Osborne should have changed the Bank’s remit, and been stricter when inflation overshot. Ultra-low rates and QE have become counter-productive. Last but not least, banking rules. It was right to ensure banks held more capital and that credit became priced rationally – but the reforms have spiralled out of control. UK, EU and Basel rules are forcing banks to hold too much cash in reserve against loans they make to small businesses and others, reducing supply and increasing cost. We need a stable banking system – not a dead one. What is most depressing is that the double-dip (if that is indeed what it is) will wrongly discredit austerity, even though the state remains incredibly profligate. The budget deficit in 2011-12 was a massive £126bn, down just £10.9bn from the £136.8bn the year before. The national debt is still rocketing: public sector net debt at the end of March 2012 was £1,022.5bn (66.0 per cent of GDP) compared with £905.3bn (60.5 per cent of GDP) at the end of March 2011. Current spending rose in cash terms from £604.8bn to £617bn in 2011-12. The OECD says UK public spending was 49.8 per cent of GDP in 2011. Public sector net borrowing remains at a catastrophic 8.3 per cent of GDP. All of this remains utterly unsustainable – yet the public have wrongly been told that the UK “is tackling its debt”. Osborne has been a disappointing chancellor – but not for the reasons cited by the left. http://www.cityam.com/latest-news/allister-heath/recession-made-downing-street-not-caused-cuts#.T5kIW4W-ZCN.twitter
  3. New house price increase of 7.7pc fuels fear of a bubble By Ian Cowie Your Money Last updated: April 18th, 2012 House prices increased by 7.7pc over the last year among newly built properties, raising fears that Government initiatives to help first-time buyers could be luring many to overpay their way into negative equity. Office for National Statistics (ONS) figures show flat or falling prices across the housing market as a whole but include a surprise surge in new house prices. Government intervention to help first-time buyers may have had the unintended effect of inflating debts young homebuyers take on while the real beneficiaries are builders. According to the ONS, the average house price across Britain – taking all types of property into account – increased during the year to February by 0.3pc; scarcely a significant statistic. But during the same period, the average price obtained for new dwellings increased by 7.7pc to £221,247. The ONS declined to comment on why newly-built homes are fetching so much more than a year ago but confirmed that the number of properties sold had increased by “about 20pc”. This points toward a significant change in the housing market during the last year, when Stamp Duty was suspended on properties purchased for less than £250,000. That Stamp Duty holiday for first-time buyers saved them £2,500 and sources including the Council of Mortgage Lenders (CML) report that thousands rushed to buy before this tax was reintroduced on April 5. Last month, the Government launched the NewBuy Guarantee scheme to help homebuyers obtain up to 95pc mortgages on homes priced up to £500,000. Needless to say the CML and the building industry have welcomed taxpayer subsidies for house prices that remain an average of 4.4 years’ pre-tax average earnings across Britain as a whole and an eye-stretching 6.4 times gross earnings in London, according to Nationwide Building Society. As pointed out in this space last November, when the subsidy was first aired with the more limited scope of affecting only first-time buyers, there are significant dangers in market intervention. Amid a credit crisis caused by excessive debt, much of it secured to overpriced property, the Government is encouraging laxer lending to people with no history of repaying debt so that they can buy overpriced property. You really could not make it up. Government intervention in the housing market – ranging from running negative real interest rates to the Stamp Duty holiday and, most recently, the NewBuy Guarantee scheme – have helped to underpin and even increase house prices, as today’s figures from the ONS demonstrate. In the short term, ‘generation rent’ or rising numbers of people fed up with renting rather than owning their home may welcome any help to get onto the housing ladder. But Government intervention is unlikely to be of lasting benefit to anyone encouraged to take on excessive debt before interest rates rise from their current historic low and more homebuyers find themselves in negative equity. http://blogs.telegraph.co.uk/finance/ianmcowie/100016320/new-house-price-increase-of-7-7pc-fuels-fear-of-a-bubble/
  4. I couldnt help clicking onto a link next to the story to read about a wine investment. People will do anything but work in order to earn money wont they? Shouldnt laugh, but its hard not to. Fonbel has absolutely no investment potential, particularly at the price Mr H paid, and 1994 is a mediocre vintage. If he had to pay for storage on top, this would be a wallet-thinning investment.’
  5. Now thats a rarity. A DM article with no mention of the value of the subjects home. And on this occasion, I thought that since she cannot pay her mortgage, maybe they would have mentioned how big the mortgage commitment is. Anyone else think she is most likely the victim of her own Liar loan induced misery?
  6. "Let the fools continue to borrow insane amounts" insists man paid a percentage of the amount they borrow.
  7. Amazing they are refugees when they leave an area after the insane Hb is withdrawn, what downtrodden name were they given when they first took up their insane privilege? There was a thread about Andre Rostant a month or so ago. He only moved to his house in spring last year with the plan of save a bit of cash for 12-18 months to get another place somewhere else. How on earth can someone on benefits be in a position to move to one of the most expensive houses in the country whilst they get their finances sorted? And how on earth can anyone defend his position?
  8. I couldnt resist this one a week ago on MSE. I want to sell at full asking but get a huge discount on the one I buy. Selling 2 bed flat and will have change after buying 4 bed house!
  9. Of course it wouldnt do for the father of her 3 kids to chuck something into the pot would it? Alternatively, could they go and live with him? The house wouldnt be so cramped.
  10. Should have guessed that with this statement Merv was giving us a heads up that GDP was going to be -0.2%!
  11. I take your point, but the gap between pay increases and RPi has only opened up in the latter part of the crash. Expect the margin between those two figures to widen! Dont mean to be rude, I'm not sure what you are getting at. Putting to one side the lack of credibility that Halifax have, the affordability measure is as meaninglessas anything else they quote. I notice you were active in the Halifax thread earlier in the month, you may recall SeeYouNextTuesdays response The mean figure is getting further and further away from the 50th percentile. I have to ask 'who do they refer to when they say affordable'? To address the historically increasing salary multiple, the average over time will increase right now, because every month we add to the data series with a figure which is higher than the historical average. Its merely a statistical anomoly. The only game changer (and its a big one - in fact the biggest argument the bulls have - they just dont seem to mention it a great deal) is that tax credits have distorted any meaningful historic analysis / comparison of houseprices using salary multiples. I think we agree on this, those who look at history will tell of an overshoot.
  12. Agree completely. Its a blind spot that seems to wrong foot a lot of people on here. Sadly a lot of people have taken the rpi adjusted price of housing to claim a crash of an acceptable magnitude. See this a lot on the mse boards too! I often wonder if they are bull trolls!
  13. He is 'acquainted' with some not very nice people. Extortion?
  14. Big headline - Little story! Every year about 300,000 people graduate in the Uk. Report says 16K graduates recruited last year. So the £29k headline figure is the average of the top 5.6% of graduates. Still it makes a better headline than 94.4% of graduates will be surplus to requirements. Edited because I read the 2011 report - 2012 report is more forthcoming with facts! Story based on this report Further edit - too late Manchester50 has captured my inaccurate ramblings
  15. http://archipelago-of-truth.blog.co.uk/2011/05/29/housing-benefit-cap-update-11234176/ Interesting comments However, he appears to have a calling to do socially useful (essential) work. http://www.hounslowchronicle.co.uk/west-london-news/local-hounslow-news/2010/11/16/wacky-sex-stunt-staged-in-brentford-109642-27664745/
  16. Such a huge figure that the OP got the numbers muddled up in the thread title. Thats not a dig at the OP, its a reflection of the enormity and absurdity of HB. How can we as a country give such vast sums away and believe we are helping claimants (who will never come off benefits and maintain such a lifestyle) or the taxpayer?
  17. Rightmove price comparison report This estate was built circa 2004. No 13 is a mid terrace - came onto RM today at £140k. No previous sale price for it on record that I can find. Developers sold the idential houses either side for £180k and £185,500 back then. A couple of the 3 bed terraces on this street sold at around the £200k mark as we approached the height of the silliness. So glad I am not licking my wounds after wisely investing £205k in No 8 or £218k in No 9!
  18. This house is not far from where i was born. Last available sold price: £142,100 23 Nov 2007 Ouch!
  19. I know people rightly moan about this programme but even after year's of being prepared for how bad it is, I was still shocked! Horseriding bloke. Sold his house and got stepdad to show him the ropes to buy at auction. Canilly paid 20% above guide on a house they hadn't viewed. The horseriding fella is obviously never going to get his hands dirty. Would look more at home in a salon getting a spray tan, so why on earth he's bought a doer upper I'll never know! 11 months later house is upside down and over budget. But it's now become a labour of love. Cue the agents to suggest an initial asking price (incidentally every agent on the programme blinked at the precise moment they uttered the asking price) and it's imaginary profit all round. That bit I was expecting. But the presenter finished off the programme with a thought for the day for the watching sheeple. He told them 'I hope you've learned something'! FFS!!
  20. LR showing prices in Coventry fell 1.3% last month. A bigger fall this time last year means the YoY has fallen back to only 4.9%! Prices here are now back at June 2004! Happy new year everyone!
  21. Journo's get the LR data about 2 weeks before it's official release. This gives them time to think about how they want to report it. By contrast NW give want to tell them how to report their figures. On a day like today I would expect LR to get more coverage from good journalists. However I expect the express to pick the report that best supports the story they want to run. Edit to add: -0.2%. Can't link report cos on my phone Further edit: beeb finally report this at 7.20am. Brush over the monthly fall and intonation draws attention to 1% yoy increase!
  22. Your mate needs to keep in touch with his former work colleagues and watch his agency closely. If they outed him to bring in someone new who has to work 12 weeks before getting rights then he takes both the employer and the agency to a tribunal. Anti-avoidance measures exist. Max of £10k for every instance. Could be very expensive for companies and agencies who try to break the rules. I run an agency. My clients are keen to ensure they dont fall foul of this legislation. Especially the bigger companies who have a lot of staff. The £30k a year H.R. drone doesn't want to have to phone head office and explain they face a quarter of a million pounds in fines because they tried and failed to save a few hundred quid.
  23. Sorry, not sure what point you are tryig to make. Would you care to join the dots up for me? Are you saying that I am wide of the mark in mentioning homelessness in the same sentence as mental illness, alcohol and dug dependancy and poor medical care? Or perhaps you take the view the beeb alluded to; that pissing money through our eyes in the form of out of control housing benefit would increase the average age at which a homeless person dies? There is a cause and effect relationship with homelessness. My experience of homeless people is that they are more likely to have existing problems such as drink drugs and mental illness and fall through the cracks into being homeless because they dont have (or are estranged from) a family (or community) support network. It is much less likely that that homelessness caused the depression or dependancy. Of course many millions of people have the same dependancy and mental illness but are luckier with the people around them and the love and help they recieve. They escape life on the streets. The level of housing benefit has no role to play here in providing a solution.
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