Media articles NORTHERN IRELAND Hpc Related

[Shotoflight]

Mentioned elsewhere. wonder how Ramsay will tweet this one?

Ulster Bank: Treasury looks at Irish takeover possibility

Nice to see them trumpet their mortgage lending since the peak as a "positive" as prices continue to fall, 56% and counting..... also the largest -most expensive? - branch network (as services migrate online)....... dear oh dear........losses of £1 billion last yr (any mortgage connection?), supported by FLS, and to cap it all a 177 yr history - which obviously counts for F@ck all as, without the taxpayer bailout and the rest, that would have come to an even more abrupt halt.

http://www.bbc.co.uk/news/uk-northern-ireland-22766801

In a statement, Ulster Bank said: "While we do not comment on speculation, Ulster Bank is a core part of RBS Group and continues to make significant progress.

"As part of our central role in the Northern Ireland economy, we have provided more than £1.5bn in new mortgage lending since the property price peak, resulting in over 15,000 new mortgages, and through the Funding for Lending scheme we have approved lending of more than £70m to over 400 local businesses.

"We have a 177 year history of serving Northern Ireland customers and our commitment to the local market was underlined recently with the appointment of Ellvena Graham as Ulster Bank's Head of Northern Ireland.

"We have the largest branch network in Northern Ireland and remain committed to meeting the needs of our customers."

In February, Ulster Bank reported losses of more than £1bn for 2012, a slight increase on the previous year.

It came as the bank's parent group, Royal Bank of Scotland (RBS), confirmed losses of more than £5bn for 2012.

UK Independence Party assembly member David McNarry has called on the Northern Ireland Executive to seek "immediate guarantees" on the future of Ulster Bank.

"If this is true it will send shockwaves through the whole banking sector in Northern Ireland," he said.

[PJ1977]

Mentioned elsewhere. wonder how Ramsay will tweet this one?

Ulster Bank: Treasury looks at Irish takeover possibility

Nice to see them trumpet their mortgage lending since the peak as a "positive" as prices continue to fall, 56% and counting..... also the largest -most expensive? - branch network (as services migrate online)....... dear oh dear........losses of £1 billion last yr (any mortgage connection?), supported by FLS, and to cap it all a 177 yr history - which obviously counts for F@ck all as, without the taxpayer bailout and the rest, that would have come to an even more abrupt halt.

http://www.bbc.co.uk/news/uk-northern-ireland-22766801

In a statement, Ulster Bank said: "While we do not comment on speculation, Ulster Bank is a core part of RBS Group and continues to make significant progress.

"As part of our central role in the Northern Ireland economy, we have provided more than £1.5bn in new mortgage lending since the property price peak, resulting in over 15,000 new mortgages, and through the Funding for Lending scheme we have approved lending of more than £70m to over 400 local businesses.

"We have a 177 year history of serving Northern Ireland customers and our commitment to the local market was underlined recently with the appointment of Ellvena Graham as Ulster Bank's Head of Northern Ireland.

"We have the largest branch network in Northern Ireland and remain committed to meeting the needs of our customers."

In February, Ulster Bank reported losses of more than £1bn for 2012, a slight increase on the previous year.

It came as the bank's parent group, Royal Bank of Scotland (RBS), confirmed losses of more than £5bn for 2012.

UK Independence Party assembly member David McNarry has called on the Northern Ireland Executive to seek "immediate guarantees" on the future of Ulster Bank.

"If this is true it will send shockwaves through the whole banking sector in Northern Ireland," he said.

While the Nama swap is not going to happen its clear there's a degree of annoyance in the Treasury about the continuing Ulster drag on RBS. They want RBS to be sold, Ulster is stopping that and so there is some radical thinking afoot.

[BelfastVI]

Remind us what the max co-ownership purchase value was in 2007/2008?

Co-ownership takes the full drop in value. The tax payer takes the full drop in value. The tax payer bails out the reckless.

No co-ownership will. They don't get a ceredit on the repayment of grant just because prices fall.

[BelfastVI]

Mentioned elsewhere. wonder how Ramsay will tweet this one?

Ulster Bank: Treasury looks at Irish takeover possibility

Nice to see them trumpet their mortgage lending since the peak as a "positive" as prices continue to fall, 56% and counting..... also the largest -most expensive? - branch network (as services migrate online)....... dear oh dear........losses of £1 billion last yr (any mortgage connection?), supported by FLS, and to cap it all a 177 yr history - which obviously counts for F@ck all as, without the taxpayer bailout and the rest, that would have come to an even more abrupt halt.

http://www.bbc.co.uk/news/uk-northern-ireland-22766801

In a statement, Ulster Bank said: "While we do not comment on speculation, Ulster Bank is a core part of RBS Group and continues to make significant progress.

"As part of our central role in the Northern Ireland economy, we have provided more than £1.5bn in new mortgage lending since the property price peak, resulting in over 15,000 new mortgages, and through the Funding for Lending scheme we have approved lending of more than £70m to over 400 local businesses.

"We have a 177 year history of serving Northern Ireland customers and our commitment to the local market was underlined recently with the appointment of Ellvena Graham as Ulster Bank's Head of Northern Ireland.

"We have the largest branch network in Northern Ireland and remain committed to meeting the needs of our customers."

In February, Ulster Bank reported losses of more than £1bn for 2012, a slight increase on the previous year.

It came as the bank's parent group, Royal Bank of Scotland (RBS), confirmed losses of more than £5bn for 2012.

UK Independence Party assembly member David McNarry has called on the Northern Ireland Executive to seek "immediate guarantees" on the future of Ulster Bank.

"If this is true it will send shockwaves through the whole banking sector in Northern Ireland," he said.

There is no chance of this happening.

[2buyornot2buy]

No co-ownership will. They don't get a ceredit on the repayment of grant just because prices fall.

And if every existing scheme members sold at a loss today. How would the grant be paid?

[BelfastVI]

Progressive's 95% loan 'a boost for first-time buyers'

http://www.belfasttelegraph.co.uk/business/business-news/progressives-95-loan-a-boost-for-firsttime-buyers-29317596.html

NORTHERN Ireland's only homegrown lender has said it is bringing home ownership within reach of more people by introducing a new 95% mortgage.

Progressive Building Society said its new product could deliver a home loan of up to £150,000 based on 95% of the value of the property.

That leaves potential buyers only having to find a 5% deposit – lower than the increased levels of deposits demanded by lenders since the financial crisis began around 2008. The society said the product had been designed to boost the first-time buyer market but is also open to second-time buyers. It has an "affordable" rate of interest of 5.29% variable for a three-year period.

Great news if it is true. I will update the form if we start to see them coming true the system.

The average price, I understand is £92k or there abouts. The repayments on this will be under £600 per mth.

[2buyornot2buy]

Great news if it is true. I will update the form if we start to see them coming true the system.

The average price, I understand is £92k or there abouts. The repayments on this will be under £600 per mth.

Hopefully there's new build exclusions or there will be instant negative equity.

Thankfully progressive only lent £125 million total in 2013 so will have limited effect here.

Where does the average price come from BVI.

Edited June 4, 2013 by 2buyornot2buy

[Shotoflight]

There is no chance of this happening.

Not confidence inspiring, nonetheless.

[Shotoflight]

George Osborne's Help to Buy scheme 'a moronic policy'

Leading analyst says chancellor's flagship scheme artificially inflates prices and drives the young into 'indentured servitude'

http://www.guardian.co.uk/business/2013/jun/04/george-osborne-help-to-buy-moronic

George Osborne's scheme to boost the housing market through state mortgage subsidies has been dubbed one of the "most stupid economic ideas" of the past 30 years by a leading City commentator.

Albert Edwards, who heads the global strategy team at Société Générale said the chancellor's flagship Help to Buy programme was artificially inflating property prices and driving young people deeper into "indentured servitude".

The chancellor said in the budget that the government would provide lenders with a guarantee of up to 20% of a mortgage in an attempt to provide potential buyers with a big enough deposit to purchase a home. If a borrower defaults on a loan, the taxpayer will be liable for a share of the losses.

Edwards – a high profile City strategist renowned as a market doomsayer – said the scheme was artificially propping up the market and preventing prices correcting to affordable levels. First-time buyers need cheaper homes, not greater availably of debt to inflate house prices even further, Edwards said. "This is madness."

He added that house prices were still overvalued despite Britain being at the epicentre of the global credit crisis and remaining in the "icy grip of private sector deleveraging". In other countries, such as the US, house prices were now cheap.

"Young people today haven't got a chance of buying a house at a reasonable price, even with rock bottom interest rates. The Nationwide Building Society data shows that the average first-time buyer in London is paying over 50% of their take home pay in mortgage repayments – and that is when interest rates are close to zero."

[BelfastVI]

Hopefully there's new build exclusions or there will be instant negative equity.

How would newbuild produce a instant negative equity compared to second hand? Have you figures to back this up.

[2buyornot2buy]

How would newbuild produce a instant negative equity compared to second hand? Have you figures to back this up.

What you mean like numerous examples from people trying to sell an early phase house compared to people purchasing now in a later phase?

[2buyornot2buy]

Here's a nice article on New Buy for you.

http://www.guardian.co.uk/money/2013/mar/31/buying-new-build-home-shaky

The biggest downsides are often cited as depreciation and space. "A new property is only 'new' for a very brief period, and you will be paying a premium of as much as 25% for its newness, much as you do when you drive a new car out of a showroom," says Greenwood.

"So it's always worth comparing similar 'old' properties, in terms of value, space, rental value and so on. Check the price per square foot and compare it with the resale market so you understand the extent of any premium you're paying."

Space is an issue because new homes are often deceptively small.

[2buyornot2buy]

I believe the premium is also mentioned in the RICS Red Book.

Edited June 6, 2013 by 2buyornot2buy

[Shotoflight]

Gloomy outlook is brightening at last -(with interest rates still at emergency, distressed levels!)

http://www.belfasttelegraph.co.uk/business/business-news/gloomy-outlook-is-brightening-at-last-29327199.html

"Northern Ireland is still dealing with its economic past and identified the 'dragging anchors' for the local economy," he said.

"Research suggests a higher incidence of 'interest-only' borrowings in the region keeping some afloat (so called 'zombie debtor' phenomenon).

"While overall demand for credit is muted, there is some evidence that trading business with property debts are four times more likely to have sought bank finance since 2012.

"The monetary value of the region's housing market activity has plummeted by over 80% since 2007 although more encouragingly, transactions are rising again.

"The 2013-14 outlook for growth for the region is broadly flat and subject to wider UK and Irish developments."

[BelfastVI]

What you mean like numerous examples from people trying to sell an early phase house compared to people purchasing now in a later phase?

I know that valuers look at the price of existing properties and compare this to what we sell. I don't believe they allow enough for the condition and age of the existing stock.

New cars are a bad example as we all know a 3 year old car will not be the same as a new car, a one year old car or a 2 year old car.

Also you pay VAT on a new car and not on a resale.

In my view a 10 year old house should not be directly comparable to a new house due to the lifespan, the improved building control regs and the fact that the new has a 10year structural warranty. However valuers and people in general don't allow much, if anything for this.

I would be all for a premium for new build. I think 25% would be hard for even me to argue for.

[2buyornot2buy]

I know that valuers look at the price of existing properties and compare this to what we sell. I don't believe they allow enough for the condition and age of the existing stock.

New cars are a bad example as we all know a 3 year old car will not be the same as a new car, a one year old car or a 2 year old car.

Also you pay VAT on a new car and not on a resale.

In my view a 10 year old house should not be directly comparable to a new house due to the lifespan, the improved building control regs and the fact that the new has a 10year structural warranty. However valuers and people in general don't allow much, if anything for this.

I would be all for a premium for new build. I think 25% would be hard for even me to argue for.

I'm confused.

Are you saying a new build premium exists or doesn't exist?

The RICS red book has specific guidelines for dealing with new build premium when it comes to valuations.

[BelfastVI]

I'm confused.

Are you saying a new build premium exists or doesn't exist?

The RICS red book has specific guidelines for dealing with new build premium when it comes to valuations.

I am saying I wish it did as a new house is worth more, in my view, in the majority of cases than a second hand house. However I dont see a premium being paid.

Can you post the extract from the red book.

[2buyornot2buy]

I am saying I wish it did as a new house is worth more, in my view, in the majority of cases than a second hand house. However I dont see a premium being paid.

Can you post the extract from the red book.

Ok but most banks think they are worth less once someone occupies then, hence the new build premium and the LTV restrictions. A developer is obviously going to get more for an identical house compared to someone selling the same house having lived there for x amount of time.

Google "red book new build premium". I'm sure it will be up there in the ranking. There plenty of stuff out there about it in general.

[2buyornot2buy]

Like in this example

http://www.barlowrobbins.com/site/news/incentives

Spot on. Its also available on RICS iconnect. They are well aware of it and should value accordingly and inform the buyers of this. To not do so would be negligence.

[Little Professor]

http://www.bbc.co.uk/news/uk-northern-ireland-22841156

McCausland 'astounded' at Housing Executive's £18m overspend

The housing minister has said it is a "scandal" that the Northern Ireland Housing Executive (NIHE) has overpaid £18m on contracts for planned maintenance of homes.

Nelson McCausland added it was not clear if "incredible incompetence" or "wilful corruption" was to blame. He said he was astounded at the amount and the level of incompetence within the organisation.

Mr McCausland, speaking in the Northern Ireland Assembly on Monday, added: "This is taxpayers' money that could have been used to build around 200 much-needed social homes."

Sinn Féin housing spokesperson, Fra McCann MLA, said answers need to be provided urgently. He added: "Any investigation needs to include the minister's department, who are the parent body of the Housing Executive, and needs to be widened to find out if these problems should have been picked up, not just by those in charge at the Housing Executive but also by the Department of Social Development."

Ulster Unionist Party MLA Michael Copeland said: "The fact that four businesses could allegedly be paid £18m more than what on paper they should have received, beggars belief. This is public money, it should never have been 'overpaid' in the first place and even then it should not have taken a forensic investigation to highlight it."

[paul65]

Front page news on today's Newsletter

http://www.newsletter.co.uk/news/business/houses-at-2003-prices-1-5179559

Houses at 2003 prices

The full scale of Northern Ireland’s spectacular house price collapse is laid bare today.

A News Letter analysis of the four main property price surveys reveals that the average price of a home in the Province has fallen back a full 10 years, to 2003 levels.

The figure is reached by taking an ‘average of the averages’ – in other words, a combined average house price of the four surveys – from the first quarter of 2003, and indexing that amount for inflation, to arrive at an equivalent average price in today’s money.

The data shows that the 2003 combined average house price of £89,000 (see panel right) is equivalent to £122,000 in today’s monetary values.

The figure can be compared with a combination of the latest of the four surveys (which relate to the first three months of this year), which puts the average price of a home in Northern Ireland at £116,000.

In simple language, this comparison shows that house prices have risen slightly since 2003 in nominal terms, but in real terms (after inflation is factored in) they have fallen slightly.

Although there have been many anecdotal reports of house prices having fallen back a decade, this analysis is the first concrete proof of such a collapse across Northern Ireland.

The combined average peak price of the four surveys (all four found that prices peaked in mid-2007) shows that home values topped out at £239,000.

Since then all surveys have shown almost relentless falls. The combined average peak-to-trough fall is 52 per cent (a collapse in values which is even greater if allowance is made for inflation).

Some estate agents say that certain types of property, such as apartments, have fallen much more, by 60 per cent or more. Land with planning permission is reported to be the most badly affected, with falls of 80 or 90 per cent commonplace.

However, many property agents have reported a bustling housing market this spring. Properties which are priced at their new lower levels are finding keen buyers.

Chris Pooler, an estate agent who has been working in east Belfast since the 1980s, said: “Property is down 50 to 60 per cent from peak in 2007. But houses that are realistically priced at those levels are selling fast.

“There are far more buyers about now, including first time buyers and investors.”

Jonathan Davis, a London-based economist and wealth manager who was one of the few pundits to predict the house price collapse back in 2007, said: “House prices in Northern Ireland were disastrously overvalued relative to incomes but at the time very few people wanted to believe that.

“That which is unsustainable will not sustain.

“Now we have seen one of the biggest house price crashes in recorded history.”

Mr Davis agrees that prices may now rise slightly: “Given the recent budget and the Help to Buy scheme, I do see a short to medium term bounce in prices.”

The graphic above charts the four biggest house prices surveys – University of Ulster, Halifax, Nationwide, Office for Nat’l Stats.

It follows the average property price figure that each survey has given for an average Northern Ireland home over the last decade (prices shown quarter by quarter).

The line in black is a combined average of the four surveys in the first quarter (Q1) of 2003. The line uprates that figure for inflation each year (using Retail Prices Index).

In Q1 2003, the four surveys’ ave NI price ranged from £78,000 to £101,000 (combined ave £89,000).

In the most recent quarter for which figures are available (Q1 2013), the four surveys estimated NI prices at between £100,000 and £131,000 (combined ave £116,000).

The index-linked combined 2003 price over the same period rises to £122,000 – a bit above the current combined average of the surveys.

[Belfast Boy]

A record breaking bubble, followed by a record breaking crash.

I wonder what would happen to house prices if it were not for the record low BoE interest rates and unpresedented money printing.

Are the current BoE interest rates, money printing and government schemes giving artificial economic support to artificially high house prices? What would happen to house prices if the BoE stopped printing money, interest rates returned to their long term average and the government was not gifting people their deposits?

In my opinion the financial crisis is not over. And the housing market will not 'recover' until the financial crisis is over. (Note: housing market recovery = house price bubble )

Edited June 11, 2013 by Belfast Boy

[BelfastVI]

Ok but most banks think they are worth less once someone occupies then, hence the new build premium and the LTV restrictions. A developer is obviously going to get more for an identical house compared to someone selling the same house having lived there for x amount of time.

Google "red book new build premium". I'm sure it will be up there in the ranking. There plenty of stuff out there about it in general.

None of the local lenders, as far as I am aware have any 'new build premium'. It would appear strange to lend more against the same house just because someone occupied it for a period of time.

I thought when you were quoting from the Red Book you had a copy or access to it.

[BelfastVI]

Spot on. Its also available on RICS iconnect. They are well aware of it and should value accordingly and inform the buyers of this. To not do so would be negligence.

I am happy that the RICS members 'should value accordingly'. Therefore place a value on the property that they believe the house could be sold at in the open market. If that is below the price that the developer has sold the house then so be it. The valuation that the RICS has placed on the property is what the lender should lend against. In such circumstanced the valuer should warn the purchaser that they believe they have over payed. (this was happening 2007 to 2009 and may have been happening afterwards).

I agree fully with you to do anything different would be negligence.

[2buyornot2buy]

None of the local lenders, as far as I am aware have any 'new build premium'. It would appear strange to lend more against the same house just because someone occupied it for a period of time.

I thought when you were quoting from the Red Book you had a copy or access to it.

Did you not access RICS Iconnect? I believe a digital version of the red book is available.