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Rich Investors Target The North Of England As Hedge Fund Snaps Up Properties In Deprived Areas

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http://www.mirror.co.uk/news/uk-news/rich-investors-target-north-england-2318399

One of Europe’s biggest hedge funds is so confident prices will boom that it is ploughing hundreds of millions into Manchester, Leeds, Liverpool, and Sheffield.

Elite investors are betting on growth in the north of England and buying up vaste swathes of property, reports the Sunday People.

One of Europe’s biggest hedge funds is so confident prices will boom that it is ploughing hundreds of millions into Manchester, Leeds, Liverpool, and Sheffield.

Savvas Savouri of Toscafund said: “This country has a pronounced north-south divide. But a large number of British cities outside London possess all the foundations to grow solidly.”

Toscafund, based in London and Dubai, reckons Manchester, Leeds, and Liverpool are most ripe for profit, followed by Birmingham and Rotherham.

Regional commercial property is being snapped up because of immigrants moving there, a more mobile workforce and an upsurge in manufacturing.

Clearly we all need to buy before the rich hedgefunds snap up all these bargains and make a killing.

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Savvas Savouri of Toscafund said: “This country has a pronounced north-south divide. But a large number of British cities outside London possess all the foundations to grow solidly.”

By growth, I take it to mean this time next year Mr Savouri will be lobbying for greater 'border flexibility' or somesuch to allow another cohort of housing benefit claimants in to ensure his mortgages get paid.

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Rotheram ?

:lol::lol:

Hey, dont laugh! The North of England could be the next silicon valley. The only thing they lack is unaffordable housing. Once priced out, the locals will be motivated to work.

I guess thats the logic anyway, I'm failing to see how else bidding up peoples living costs are supposed to power economic growth.

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Guest eight

Rich people buying poor people's housing.

It'll be their kids or their organs next.

I think there's a political element to this too. I foresee entire client towns, with a couple of landlords in control of everything.

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Hey, dont laugh! The North of England could be the next silicon valley. The only thing they lack is unaffordable housing. Once priced out, the locals will be motivated to work.

I guess thats the logic anyway, I'm failing to see how else bidding up peoples living costs are supposed to power economic growth.

I think there's a political element to this too. I foresee entire client towns, with a couple of landlords in control of everything.

Good posts

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Snapped up a bargin, innit? Like the guy on telly with the mahogany skin who goes to all those jumble sales to 'snap up' various other peoples junk.

I guess so. I tend to read it as 'purchased in a real hurry' rather than getting a bargain but your definition makes more sense given the usage wrt to houses. Stupid, annoying phrase either way.

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Had to be the north. No-one's going to be looking in London and the South East for 'bargains' to snap up, after all.

Just heard from my Mum that the woman she's had around to stay the past 5 days (old friend from work), who hasn't changed out of her dowdy outfit once, and didn't buy a thing when she took her out to a car-boot sale 'because she doesn't buy things and her husband always like that about her', own 5 properties she rents out in London.

This woman is in her mid 70s. Half of them inherited, including one from her second marriage. No kids. I hope she gets slaughtered with IHT.

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I think there's a political element to this too. I foresee entire client towns, with a couple of landlords in control of everything.

It did used to be like that. But with mills owning the houses. Until quite recently too perhaps up until the 60/70's.The difference was that it was cheap. Mill owned housing had lower rents than the Council

Edited by aSecureTenant

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Hey, dont laugh! The North of England could be the next silicon valley. The only thing they lack is unaffordable housing. Once priced out, the locals will be motivated to work.

That's exactly right: it'll give them something to aspire to, something that's sadly lacking in the Desolate North.

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Yawn on with all this propaganda.

They paid £26.5million for the 13.5 acre site occupied by Granada TV . Allied London boss Michael Ingall told the Financial Times: "We will protect the heritage ­assets and ensure the area is ­developed in a sensitive way." House prices in Manchester are rising at 10 per cent a year – the same as London.
In 2008, they came close to a £100m sale to hotelier Surinder Arora, but it collapsed as the UK economy dived into recession.

http://www.mancheste...-studios-692912

And MOSI just around the corner, is still at risk for the chop last I heard, with funding constraints.

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That's exactly right: it'll give them something to aspire to, something that's sadly lacking in the Desolate North.

Many parts of northern England are almost third world now. Old mill towns ans mining towns where all the industry was looted by high taxes, all spent in London. There is very little prospect of any returning, as the UK is such a hostile environment for business. The barriers to enterprise in this country are are formidable and taxes are punitive.

I used to think maybe setting up very low-tax, free trade zones in the north could allow prosperity to return. Similar to Kaliningrad in the Baltic, perhaps, or maybe that new free trade zone in Shanghai. People who visit those type of places talk about an atmosphere of activity and a belief that you can make something for yourself if you put the work in. Pretty much the opposite of this country.

Obviously, with all the capital having been looted long ago it would be many years for industry to build up. Things could not get much worse than they are now, though. On reflection, though, I doubt it is feasible . An attempt to set up a free-trade zone in, say, Liverpool would almost certainly be met with massive resistance from local left wing nutters.

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So what's the actual story?

If it's buying up real problem areas, cleaning them up, and turning them into somewhere people can live in, it could be a good news story. And if they can buy 200 houses in a total no-go area at £10k a shot and sell them for £80k once they're liveable, that's a nice little earner.

Not something a small investor could take on: if the area is a real no-go dominated by drugs gangs, you won't turn that around by just buying up one, or even a dozen, houses. And it's high risk, hence more hedge-fund territory than something for your pension to invest in.

Could be a good news story there?

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Guest eight

So what's the actual story?

If it's buying up real problem areas, cleaning them up, and turning them into somewhere people can live in, it could be a good news story. And if they can buy 200 houses in a total no-go area at £10k a shot and sell them for £80k once they're liveable, that's a nice little earner.

Not something a small investor could take on: if the area is a real no-go dominated by drugs gangs, you won't turn that around by just buying up one, or even a dozen, houses. And it's high risk, hence more hedge-fund territory than something for your pension to invest in.

Could be a good news story there?

You ever seen The Wire? What if the drugs gangs and the deprivation are the work of the same people who seek to profit from the regeneration? Problem-reaction-solution isn't just a government thing, and if they start doing it in concert with private money then the rest of us are utterly, utterly f***ed. I need to write a much longer and more detailed post than I'm inclined to right now but I can see this going on in my own town, in my own street in fact. How did we go from a situation where in ten years we go from anybody with a pulse being able to buy a house to only those with the ready cash to meet the full asking price being able to buy? Was it engineered, deliberate? Or are these leeches just profiting from circumstances? Either way, the end point is a situation when all the productive endeavour of the entire country goes to supporting huge institutionalised private landlords.

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Rich people buying poor people's housing.

It'll be their kids or their organs next.

At least it's not forcing the poor people out, as happened on a massive scale when they built the 1950s/60s council estates. 220px-Red_Road_flats_2.jpg

Or as happened when it was John Prescott forcibly demolishing Victorian terraces.

Or when the "Olympic Village" was being built over them.

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Funds, using OPM, can easily see growth if they buy enough, price up enough, and hype enough...Its called cornering the market.

the trouble with this logic in housing, is that ultimately, people need to pay to have it...whether through rents or purchase.

so yes, they can price everyone out, then sell their portfolios to the silly, the Local Authority pension funds et al, only for the new cohort to find that there isnt the growth they expected ( the Pump has finished pumping) and dumping means a loss...

Its a trick as old as the sun.

Today, the first salvo of "miss the boat" hype has been launched.

Told ya so.

Edited by Bloo Loo

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