January 2007 Archive

Tuesday, January 30, 2007

Repossessions to rise :(

Firstrung: Repossessions to rise by up to fifteen percent in 2007

Research by Moore & Blatch, solicitors who specialise in repossession management for a selection of leading mortgage lenders, has revealed that up to 75% of the mortgage lenders its represents anticipate repossessions rising by at least 5% in 2007.

Posted by converted lurker @ 04:58 PM 7 Comments

Another cautious article for the pile

MSN News UK (Reuters): Evidence of cooling house market builds

Another straw on the HPI camel's back, or another plea for Swervin Merv to leave interest rates alone? You decide.

Posted by rich @ 04:10 PM 7 Comments

Lib Dems comment on "irresponsible lending"

Firstrung: Lib Dems slam irresponsible mortgage lending

Commenting on a Yorkshire Bank survey showing that six out of ten first time buyers would take a mortgage of over five times their salary, Liberal Democrat Shadow Chancellor, Vince Cable MP said: "These findings are extremely alarming. But we should not blame the borrowers - they have little choice because of the highly inflated price of property. A great deal of irresponsible lending is fuelling this problem on debt.

Posted by converted lurker @ 12:18 PM 21 Comments

Inside Track

Firstrung: Inside Track reveal buy to let hotspots

An annual valuation of Inside Track's portfolio has revealed buy-to-let (BTL) continues to provide investors good returns, but with marked regional variations. Inside Track has Britian's biggest residential investment portfolio, entirely of new build property.

Posted by converted lurker @ 12:16 PM 3 Comments


ThisIsMoney: Welcome gloom amid the boom

"Don'tmove.co.uk is an embryonic rival for which a forward-thinking few of us at Financial Mail are currently seeking financial backing. Rather than list potential properties, it will provide good reasons to stay put. In extremis it will disable your computer, thus barring access to the likes of Rightmove."

Posted by tinecu @ 11:07 AM 2 Comments

Banks refusing IVA settlements rocks IVA sector

TimesOnline: Pressure on third IVA firm as sector is hit by near-panic

The booming business of individual voluntary arrangements (IVAs) has taken a hit over the last few days with share values of companies operating in the sector being badly hit. An IVA is a less painful alternative to personal bankruptcy. The reason the IVA sector is being badly hit is due to banks demanding better terms on the IVA and are refusing agreements which allow customers to walk away from a high proportion of their debt.

Posted by denzil @ 10:35 AM 6 Comments

UK house prices 'start to cool'

BBC News: UK house prices 'start to cool'

Hard to tell this time of year if this a blip, and we are still in positive HPI territory. Ms Earley is finding it increasingly difficult to keep up her positive spin however. I can hear it now "Prices are reducing but only by 10% month on month which is insignificant when compared to the massive gains over recent years, It still remains a good time to buy.....blah blah blah"

Posted by geed @ 10:10 AM 3 Comments

UK house prices 'start to cool'

BBC News: UK house prices 'start to cool'

House prices rose by 0.3% in January, the slowest pace for eight months, according to the Nationwide.

Posted by david20040_0 @ 09:57 AM 2 Comments

Things slowing down

Reuters: House prices up at slower pace

House prices rose at their slowest pace for eight months in January, a survey showed on Tuesday, indicating higher borrowing costs may be starting to dampen the housing market.

Posted by bricksnmortarhaha @ 08:25 AM 0 Comments

The Centre for Economics and Business Research said that

Daily Express: House prices to soar again

HOUSE prices are rising at their fastest for nearly four years with the property market showing no signs of running out of steam.

Posted by spoony @ 01:11 AM 2 Comments

Monday, January 29, 2007

Debts and Bust Not Confined To Consumers

FT.com: Winding-up petitions increase 23%

If this article is correct, then businesses are indebt and struggling too. Take the quote "The research identified the services sector across the UK as experiencing the most difficulties and having the highest number of companies with significant and critical problems." If the consumer is struggling, and the services sector is finding it hard, and we have no manufacturing left, can someone just tell me WHY BRITAIN IS BOOMING? (PS They can also tell me why house prices are remaining ridiculously high too.)

Posted by talking rot @ 11:52 PM 3 Comments

House prices end 2006 on the rise

BBC: House prices end 2006 on the rise

House price inflation picked up towards the end of 2006 in England and Wales, the latest report from the Land Registry says.

Posted by david20040_0 @ 11:21 PM 0 Comments

Oh no, what a disaster!

BBC News: Share slump hits debt companies

Shares in several debt management companies have slumped after two of them issued profit warnings on Friday.

Posted by harold @ 05:55 PM 10 Comments

The Future of Self Cert Mortgages

The Self Cert Mortgage Centre: The Future of Self Cert Mortgages

As the market for self certified mortgages grows, so does the pressure for tighter regulations for self certified mortgages. Those who have a keen interest in the future of self certified mortgages may have noticed that they are beginning to appear more and more frequently in the media. Self certified mortgages - which enable the borrower to certify their income without needing to supply standard income documentation may be extremely popular with the self employed but they are also a cause for concern for the regulatory bodies.

Posted by terry @ 02:26 PM 0 Comments

FSA Slams Exit Fees

Finance Daily: Expert Opinion: Exit Fees & Your Rights

Glossery letter: I write to you to put forward a claim for compensation due to your unfair charge of ? exit fee for the above mortgage. I would also like to claim compensation for the mortgage risk payment (MIG) which I was made to pay ? for insurance to cover yourselves, and the ? administration charge for using an outside company for buildings and contents cover.

Posted by cheeky charlie @ 01:47 PM 0 Comments

Blanchflower hits back at "Dove" suggestion.."If I am wrong then I will vote for a rate rise."

Guardian: MPC economist denies 'dove' decision on rates

David Blanchflower, the US-based economist on the Bank of England's monetary policy committee, has hit back at suggestions that he is a "dove" determined to keep interest rates down. In his first interview since joining the MPC in June last year, he told the Guardian: "I am as hawkish as anyone about keeping inflation on target."

Posted by crashbunny @ 01:01 PM 5 Comments

More IR pressure - Poor Merv!

Reuters: January retail sales rise fastest in 2 yrs: CBI

Retail sales volumes soared more than expected this month and at their sharpest rate in more than two years, a survey showed on Monday, and retailers are optimistic sales will remain strong in February. The Confederation of British Industry said its distributive trades survey's reported sales balance rose to +30 in January, marking a fresh 2-year high after December's reading of +25. Analysts had forecast a reading of +14 and retailers' own expectations were for a reading of +4.

Posted by tyrellcorporation @ 12:02 PM 26 Comments

Commercial property on the slide

FT.com: Commercial property boom at an end

The commercial property boom in the UK has finally ended, judging by new data suggesting that prices started to fall in the closing months of last year. Average net initial yields fell from 7.3 per cent in December 2001 to 4.89 per cent in September 2006, but by December 2006 had risen to 5 per cent, according to agents Lambert Smith Hampton.

Posted by dohousescrashinthewoods @ 11:06 AM 2 Comments

Strength of London property market drives prices up

TimesOnline: London drives house price rise

Houses prices were unchanged across the country for January but a strong London market pushed prices up by 0.8%. according to the property website Hometrack. No doubt as the data is from Hometrack this is "asking" prices and not "selling" prices.

Posted by denzil @ 10:32 AM 0 Comments

Commercial property boom at an end

FT.com: Commercial property boom at an end

The commercial property boom in the UK has finally ended, judging by new data suggesting that prices started to fall in the closing months of last year.

Posted by bricksnmortarhaha @ 09:51 AM 1 Comments

Morons buy hotel rooms

Guardian: A room with a view to profit

BTL hotel rooms. What a good idea. Presumably now even the BTL landlords can't afford a whole house

Posted by inbreda @ 08:52 AM 3 Comments

House Prices to Rise at 1,000 a month

Daily Express: House Prices to Soar Again

House prices to rise at 30 a day over the coming year. Will this ever end? It may be spin, but I begin to wonder? Is it?

Posted by auntie @ 07:53 AM 24 Comments

Sunday, January 28, 2007

Broke Brown turns to 'Grave Robbery'

Scotsman: Claim or lose your rainy day savings

Having raided every pot imaginable from Pensions, Stamp Duty, Inheritance Tax and the usual stealth taxes for cash windfalls to prop up his 'economic miracle' Brown makes move on 'forgotten' shares and savings in a Burke and Hare (Grave Robbers) style cash grab.

Posted by enuii @ 07:42 PM 0 Comments

Good Summary of Global Economic Outlook

Sunday Telegraph: It could be downhill all the way after Davos

Good Summary of Global Economic Outlook

Posted by bubblicious @ 07:26 PM 0 Comments

Daily Mail wants to setp up a housing gloom website

ThisIsMoney: Welcome gloom amidst the boom

Some of us at the Financial Mail want to set up don'tmove.co.uk, to rival Rightmove. Rather than list potential properties, it will list reasons to stay put. The aim? To slow the housing market of course. High house prices spook the BoE and drive interest rates up. An about-turn on borrowing costs would provide breathing space for the over-indebted millions.

Posted by little professor @ 03:04 PM 7 Comments

Which report on overdraft charges

Firstrung: Is your bank taking you for a mug? Which uncover bank overdraft tactics

A Which? expos has uncovered the tricks that some banks are using to deter customers who challenge their overdraft charges. And it's not only those who confront their bank that suffer.... Which? discovered that some banks are: Closing - and threatening to close - accounts Passing accounts to debt collectors Delaying requests for statements and charging too much for them Delaying their responses to, or ignoring, customer letters. Which? has also heard of some customers being offered personal loans or increased overdrafts in place of refunds.

Posted by converted lurker @ 01:35 PM 0 Comments

More Housing Bull from the BBC

BBC News: UK home price 'up 1,000 a month'

Britain's housing boom will continue in 2007, with average prices rising by 1,000 a month, according to a report the Centre for Economics and Business Research (CEBR). Looks like the UK average 187K house will be 199K by year end, only a 6.5% increase, though saying 1000 per month does make a better more bullish headline.

Posted by enuii @ 01:21 PM 11 Comments

Week in focus for first time buyers

Firstrung: Property news in focus from the first time buyers viewpoint - Firstrung

What we finally need to finally turn the tide of opinion v FTBs to one of blame is photo opportunities of BTL investors (with their young families) stood outside two-three bed terraces in, for example Oxford, be-moaning the fact that they've been out manouvered by underhand FTBs who dont want the place as an investment, they want to "own it and live in it, how bizarre!". "But it was supposed to be our pension" will read the caption, "What will our kids inherit?"...

Posted by converted lurker @ 12:52 PM 1 Comments

Sit back and conspire...

Bull! Not Bull: Fiat Empire - A Closer Look at the Federal Reserve

Hour-long programme about the Fed, fiat currency, and the US constitution. Of no relevance to us? Think again. Some interesting contributions, particularly from congressman Ron Paul. The film is spoilt, however, by the appearance of vain bogeyman, Edward Griffin.

Posted by harold @ 09:40 AM 1 Comments

Saturday, January 27, 2007

US Essential Service Staff Suffering Too!

Orlando Sentinel: Housing too pricey?

Global HPI News: Teachers, firefighters, police and other essential-services personnel are priced out of Florida's housing market.

Posted by nearly30 @ 08:43 PM 3 Comments

Has "time" been called on HPI?

TimesOnline: Fears grow for housing slowdown

Figures showing the biggest annual fall in mortgage approvals since the last housing slowdown prompted concern yesterday that the year-long resurgence was over. Bit short and sweet this report but it is another in recent glut of bearish news.

Posted by denzil @ 07:37 PM 2 Comments

First time buyers disappeared not desperate

Firstrung: Desperate first-time buyers faced with rising prices "it's all your own fault" screams Yorkshire Bank

That the FTB is somehow portrayed as the villain of the piece as opposed to the victim is quite frankly disgraceful. We can now confidently expect Yorkshire to finally go the 'full nine yards' and begin to blame recent house price inflation on 'desperate priced out FTBs' in favour of for example: 750,000 newbie BTL investors since 2003, Money supply being out of control, Loose and lax lending policies, Inflation rising, Lack of decent family starter homes. Of course the Yorkshire are immune to criticism, despite the fact that their BTL lending book has boomed since 2003, they accept heavy sub prime business, require low deposits and will lend to 'extreme multiple' levels - typically five times income...

Posted by converted lurker @ 06:23 PM 3 Comments

Debt management shares battered in late Friday trading

Firstrung: Slow growth in IVAs causes debt management company shares to meltdown

Debt Free Direct: "Over the last quarter, we have been challenged by two external factors; creditor posturing and increased advertising from our competitors," it said. "The combined impact of these two factors will make it challenging to fully achieve market expectations for the FY 2007," added the group.

Posted by converted lurker @ 05:05 PM 3 Comments

First Time Buyers risking ever more in the last chance property saloon

BBC News: First-time buyers 'risking more'

First-time buyers are willing to take greater financial risks than ever, a survey by Yorkshire Bank reveals tat 6 out of 10 would consider taking out a substantial mortgage in excess of five times salary just to get on the property ladder.

Posted by enuii @ 04:40 PM 13 Comments

First-time buyers 'risking more'

BBC: First-time buyers 'risking more'

First-time buyers are willing to take greater financial risks than ever, a survey by Yorkshire Bank suggests.

Posted by david20040_0 @ 01:10 PM 0 Comments

How to manage a budget well

The Express: Nurses told: Work for no pay

What a shambles and very sad. In the broader sense an economy with no where left to run.

Posted by sovietuk @ 12:27 PM 8 Comments

How did it come to this!

Daily Mail: 36 reasons to say goodbye to Britain

As you sit in stationary traffic and pouring rain, worrying about the mortgage and whether you'll ever get a date for treatment on that ingrowing toenail, you may not be totally surprised by the news. In the league table of the best countries to live, Britain is 37th.

Posted by uncle chris @ 11:08 AM 15 Comments

More dodgy tactics by the banks

Daily Mail: Homeowners can claim 200m over mortgages rip-off

Homeowners are expected to claim compenation totalling around 200million after paying rip-off mortgage charges. The FSA yesterday criticised mortgage lenders for their exit fees, which have surged over the last two years.

Posted by uncle chris @ 10:45 AM 4 Comments

Demand for homeloans heading south

Daily Mail: Mortgage Demand Plunges

Homeloan approvals are sharply down to a six-year low - and that's before January's rate rise is factored in. BIG indicator that sentiment is doing a u-turn.

Posted by reggie @ 10:14 AM 0 Comments

Friday, January 26, 2007

The rising cost of living in the UK

The Times Online: How to keep your head above water

An useful article which summarises increases in the cost of living. The article's description is "Magnus Grimond fights back against the rising tide of inflation" but inflation is only at 3% isn't it?

Posted by talking rot @ 09:12 PM 1 Comments

Some BIG stats in here!

BBC: US new home sales hit during 2006

Sales of new US homes fell in 2006 by the largest amount in 16 years as the industry was hit after five years of growth, the Commerce Department said. It all looks pretty bad but they try and gloss the figures by adding aircraft sales into the stats! I can't remember the last time I bought a jet airliner!!!

Posted by tyrellcorporation @ 09:09 PM 2 Comments

Time trip fixes Japan's Woes

Reuters News: Time trip fixes Japan's Woes

"Bubble e Go!!" ("Go to the Bubble!!") is only a film, but in Japan its central theme of boom and bust is all too real. In the comedy, due to open in Japan next month, the country is left with 713 days and 13 hours before a public debt crisis triggers an economic meltdown.

Posted by afrobaggie @ 06:00 PM 0 Comments

Borrowers hit as lenders leapfrog latest base rate

FT: Borrowers hit as lenders leapfrog latest base rate

Millions of homeowners with variable rate mortgages are being hit with excessive increases to their monthly repayments, as many of the UKs largest lenders have raised interest rates more than the recent base rate rises.

Posted by umisenyamasen @ 05:17 PM 4 Comments

Time trip fixes Japan's Woes

Reuters News: Time trip fixes Japan's Woes

"Bubble e Go!!" ("Go to the Bubble!!") is only a film, but in Japan its central theme of boom and bust is all too real. In the comedy, due to open in Japan next month, the country is left with 713 days and 13 hours before a public debt crisis triggers an economic meltdown.

Posted by afrobaggie @ 02:35 PM 0 Comments

HIPS again...yawn...

Firstrung: HIPS reaches another stumbling block

According to anti HIPS campaigner, Trevor Kent, the timetable for the introduction of Home Information Packs (HIPs) took another faltering step backwards today following the announcement of yet another 'consultation' by the DCLG after nine years of investigations, consultations and trials...

Posted by converted lurker @ 01:51 PM 8 Comments

Holding Back?

This is money: Mortgage demand plunges

The overall figure is the lowest monthly total since January 2001, statistics show but net mortgage lending still atrong.

Posted by headmelter @ 11:52 AM 3 Comments

Holding Back?

This is money: Mortgage demand plunges

The overall figure is the lowest monthly total since January 2001, statistics show but net mortgage lending still atrong.

Posted by headmelter @ 11:52 AM 0 Comments

Exit charges capped

BBC News: FSA moves on mortgage exit fees

This will put pressure on lending rates as the lenders will know they can't screw the borrower when they switch. All to the good!

Posted by financial planner @ 11:37 AM 0 Comments

More barriers to 'testing the market'

Telegraph: Home green packs will cost 200

Home owners will be forced to pay more than 200 for a green energy certificate when they put their house on the market. The Government strengthened its commitment to the energy performance certificate yesterday, saying the certificates must be included in the property particulars buyers will see before they even view a home. The certificates, which could cost as much as 350, will give properties an energy rating of between A (best) and G (worst).

Posted by tyrellcorporation @ 10:49 AM 1 Comments

mortgage approvals fall 11.1 percent yr-on-yr -BBA

Reuters: UK Dec mortgage approvals fall 11.1 percent yr-on-yr -BBA

British mortgage approvals fell 11.1 percent in December from a year ago to 45,533, the first annual fall since April

Posted by millard @ 10:21 AM 3 Comments

Thursday, January 25, 2007

BTL Boom Fuelled By Pensions Crisis

IFA Online: 80% 'seriously worried' about pensions - ITV show

Many BTL investors are trying to secure their retirement through the property market and after watching tonights ITV documentary I can fully understand why. The much ignored pensions crisis in this country will in the long term be a big nail in the coffin of property prices as it is the current FTB's who are paying the price of their parents failing pension funds and jeopardising their own retirement.

Posted by enuii @ 10:09 PM 8 Comments

Mervyn King cast deciding vote on last month's IR rise

Times Online: Bank schism on interest rates leaves forecasters in confusion

The FTSE is above 6300 for the first time in six years, and the city doesn't quite know what to make of the Monetary Policy Committee's decision. The MPC was split, with 4 members of the panel voting for no rise. Philip Shaw of Invetsec said We were in the dark before the minutes and were even less clear now.

Posted by jellycaster @ 02:22 PM 0 Comments

Home-grab danger highest in London

This is Money: Home-grab danger highest in London

Repossessions in London are at the highest for more than a decade as house prices soar and interest rates go up.

Posted by p. o. o. r @ 11:39 AM 13 Comments

Home-grab danger highest in London

This is Money: Home-grab danger highest in London

Repossessions in London are at the highest for more than a decade as house prices soar and interest rates go up.

Posted by p.o.o.r @ 11:37 AM 0 Comments

Victory for pensioners in ECJ

Firstrung: Britain failed to protect pensioners - unions win landmark pensions case

Thousands of workers are celebrating today after the European Court of Justice (ECJ) ruled that the UK government has failed to properly implement European law and so could be entitled to full compensation for their lost pension savings.

Posted by converted lurker @ 11:33 AM 1 Comments

Victory for unions in pensions battle

Firstrung: Britain failed to protect pensioners - unions win landmark pensions case

Thousands of workers are celebrating today after the European Court of Justice (ECJ) ruled that the UK government has failed to properly implement European law and so could be entitled to full compensation for their lost pension savings.

Posted by converted lurker @ 11:31 AM 0 Comments

Financial crisis next year

The Telegraph: Imbalances 'setting stage for crisis'

"The global imbalances are becoming more concentrated, not less," he said. While China is adding to its colossal reserves at a rate of $200bn (102bn) a year, five countries, led by the US and Britain, now account for 84pc of the $1,000bn of trade deficits in the global system.

Posted by sold 2 rent 1 @ 10:15 AM 1 Comments

Global financial imbalance is set

Telegraph website: Global financial imbalance is set

Why we are set for a massive correction in all asset classes

Posted by the capitlalist @ 10:13 AM 3 Comments

And the nominations are.....

The Corporation: Gordon Brown 'among 100 sexiest'

Gordon Brown, sometimes criticised as dour and sombre, has made it into a list of the world's 100 sexiest men

Posted by george monsoon @ 07:51 AM 16 Comments

Wednesday, January 24, 2007

Aussie houses overpriced, rents skyrocketing -but that's A-OK cause the inflation battle has been won...?

The Age: Inflation genie back in the bottle

THE lowest inflation reading in almost eight years sent the Australian dollar into a tailspin and prompted financial markets to revise their bets, with investors now ruling out the chance of another rate rise next month.

Posted by ashwina @ 10:46 PM 0 Comments

Rents are starting to rise again in Australia...

The Age: Rent rises fastest for 16 years

RENTS last year rose at their fastest annual rate for 16 years as landlords took advantage of falling vacancy rates and made tenants pay more for a place to live. Although the overall consumer price index fell in the December quarter, average rents across Australia jumped 1 per cent for the quarter and by 3.7 per cent for the year.

Posted by ashwina @ 10:33 PM 0 Comments

RICS - very wrong and mischievous

Firstrung: RICS first time buyer comments out of order - Firstrung

In response to the recent press release from RICS, citing that first time buyers are somehow 'at risk' due to the recent rises in interest rates, Paul Holmes, Operations Director of the leading first time buyer website Firstrung, refutes the statement and suggests that recent first time buyers are at less risk than any other buyers, particularly buy to let investors:

Posted by converted lurker @ 09:04 PM 0 Comments

2007 House Repossessions set to be 3X 2004 level

Guardian: Interest hike set to increase home repossessions

About 19,000 homes are likely to be repossessed this year - more than three times the number seized in 2004 - and first-time buyers appear most vulnerable, according to RIC's a leading property trade body.

Posted by enuii @ 08:38 PM 5 Comments

Interesting survey without the usual vested interests?

Firstrung: UK Financial Activity Survey finds weakest savings, investment and borrowing demand in 5 years

Consumers are showing little appetite for spending and borrowing and more households are finding difficulty saving as higher taxes, utility bills and housing/motoring costs grow according to JGFR who provide; financial, marketing research, consultancy and infomation services

Posted by converted lurker @ 03:08 PM 3 Comments

Pound falls on MPC split

FT.com: Sterling off 14-year highs against dollar

Sterling retreated further from a 14-year high against the dollar and the yen on Wednesday, as the minutes from the Bank of Englands monetary policy committee meeting revealed that four of the nine members voted against Januarys UK rate rise. The market had been expecting a seven to two vote in favour of raising rates. The minutes should dampen expectations of another rise in interest rates as soon as February.

Posted by dohousescrashinthewoods @ 12:51 PM 8 Comments

Pound rises as traders bet on rate rise

TimesOnline: Pound pushed to 14-year high as traders bank on a rate rise

The pound surged to 14 year high as currency traders smell further rate rises

Posted by denzil @ 12:32 PM 2 Comments

Halifax predict 4% house price increases in 2007

Firstrung: House price growth will slow in all regions in 2007 - Halifax

House prices increased in all regions during 2006 Quarter 4. The biggest price rises were in Northern Ireland (15.9%), Greater London (6.6%) and Wales (5.1%). The smallest increase was in the North (0.9%). Northern Ireland recorded a 53% increase in its average house prices in 2006; the biggest regional annual gain since 1988 (West Midlands: 60%).

Posted by converted lurker @ 11:56 AM 2 Comments

FTBs in Oxford have no chance

Firstrung: Average house prices in Oxford are now 70% higher than the UK average at 304,467

The average house price in Oxford is now 304,467. That represents an increase of 388% compared with the average figure of 62,444 in 1986, the year before Inspector Morse first reached our screens. Over the same period, house prices across England rose 440% to 209,223, while the UK figure increased by 348% to 179,601.

Posted by converted lurker @ 11:54 AM 1 Comments

Advice for investors: housing prices will collapse

MoneyWeek: The twelve key investment trends of 2007

What's ahead for stocks and the economy in 2007? Setting aside unknown elements like major terrorist attacks or natural disasters, I believe six phenomena are shaping the investment climate this year. The world is awash in financial liquidity mainly due to rising house values, the negative US corporate financing gap and the American balance of payments deficit. Inflation remains low despite higher energy prices. As a result, investment returns are low. Speculation remains rampant despite the 2000-2002 bear market. So, investors are accepting more risks to achieve expected returns. And then there's the insatiable US consumer, who, thanks to the booming housing market, continues to spend freely.

Posted by kyuzosan @ 11:01 AM 0 Comments

No more interest rate rises?

Financial Times: King hints that rate rise cycle is near end

Mervyn trying to make out that he's still in control. Maybe he thinks the worst of the inflation rise is over. Read the small print though and another story emerges: "the Bank governor left open the possibility of its monetary policy committee raising rates again this spring."

Posted by rentslave @ 10:39 AM 2 Comments

Will interest rates rise again next month?

MoneyWeek: Will interest rates rise again next month?

We're moving ever closer to the $2 pound...and closer still to a 5.5% UK base rate. Sterling hit its highest level against the dollar in 14 years, heading above $1.99 due to a quarterly report from the Confederation of British Industry (CBI). The survey showed that the number of businesses reporting that they had hiked prices in the past three months had hit its highest level since 1995. The stronger-than-expected data may have been good news for anyone getting their holiday money for a trip to the States - but it's not so great for anyone who'd hoped that interest rates had peaked this month...

Posted by mary @ 10:21 AM 10 Comments

We're making a killing, Lewis

The Sun: We're making a killing, Lewis

Home owners in Oxford are cashing in on the Inspector Morse effect, with house prices in the city rising above the UK average for every year the drama has been on the small screen.

Posted by david20040_0 @ 09:48 AM 0 Comments

Too tight for comfort

BBC: Bank voted 5-4 for rate increase

The MPC decision was only just carried

Posted by holding out @ 09:43 AM 3 Comments

KIng's Speech in Full

Firstrung.com: Governor of the Bank of England, "inflation in the UK could fall quite sharply in 2007"

Mervyn King says, "The opportunity to write to the Chancellor did not arise last week. But since we are so close to the level that would trigger a letter, let me instead write a letter to you." But nary a mention of raising interest rates to control house prices. In fact, nary a mention of house prices at all...

Posted by hyakujo @ 09:37 AM 0 Comments

King keeps quiet on prospect of further rate rises

BBC News: King defends interest rate rise

The governor of the Bank of England has defended January's shock interest rate rise - saying it was a pre-emptive strike against higher increases. Policymakers had been expected to wait at least a month before taking action.

Posted by webmaster @ 06:45 AM 2 Comments

Tuesday, January 23, 2007

Ratings for Major Urban Markets

Demographia.com: 3rd Annual Demographia International Housing Affordability Survey

This survey expands coverage to 159 major markets in Australia, Canada, Ireland, New Zealand, the United Kingdom and the United States. The Demographia International Housing Affordability Survey employs the Median House Price to Median Household Income Multiple, (Median Multiple) to rate housing affordability.

Posted by webmaster @ 10:38 PM 0 Comments

SVRs at 7.44 percent! Not a pretty sight ;(

Firstrung: Natwest and RBS increase their standard variable rates up to 7.44 percent

NatWest today announced that its Standard Variable Mortgage Rate would increase by 0.30 per cent to 7.44 per cent. The Royal Bank of Scotland today announced that its Standard Variable Mortgage Rate would increase by 0.30 per cent to 7.44 per cent

Posted by converted lurker @ 09:05 PM 10 Comments

Shelter founder dies

Firstrung: Shelter founder Reverend Bruce Kenrick has died aged 86

In 1963 Kenrick, then a parish priest, established the Notting Hill Housing Trust in response to the squalor he'd observed in the area's overcrowded tenements - what he later described as 'damnable housing conditions' with 'families living in one room with a stove and sink squeezed into one corner'.

Posted by converted lurker @ 02:56 PM 3 Comments

The Rightmove BULLS??? ?

Telegraph: House Prices To Rise Despite Rate Move

Here's confidence at its best!! House prices are purportedly to continue rising according to Rightmove, with it's prediction of a further increase in January. Whether an agency who derive there profits from estate agents who derive there profits from the sellers who derive there profits from inflated house prices can be nearly reliable is another question - but I think the constant whipping up of the housing market is now proving to be hard work even for the most optimistic heads of rightmove as there investors and shareholders react contrary to the article. Take a look at the shareprice tumble of RMV today!! Looks to me (an optimist WITH EXPERIENCE) that the bubbles ready to pop!!.

Posted by andy @ 01:28 PM 5 Comments

Recent FTBs at risk

Firstrung: Recent first time buyers at risk due to recent interest rate rises

Research from mform.co.uk reveals that approx. 228,000 property owners under 25 spend more than 9,000 a year in mortgage repayments. Research also shows that 61 per cent of homeowners aged 25 and under have only been on the property ladder for less than two years. One third (33 per cent) have only been on the property ladder under a year and only 29 per cent have owned a property for three years or more.

Posted by converted lurker @ 01:00 PM 0 Comments

When Irish eyes are smiling...

Irish Examiner: Significant cooling likely in housing market as interest rates set for rise

HIGHER than expected interest rates and stamp duty uncertainty may have resulted in a fall in house prices at the start of the year, according to a new report

Posted by george monsoon @ 10:41 AM 10 Comments

US data suggest difficulties mounting

FT.com: US productivity growth lowest for decade

The US economy last year recorded its lowest rate of labour productivity growth in more than a decade, with growth in output per hour worked falling behind the EU and Japan. The fall casts further doubt on the ability of the Federal Reserve to cut interest rates as the US economy slows.

Posted by dohousescrashinthewoods @ 10:19 AM 0 Comments

An alternative to the new-build box

Make: technology in your time: A low impact woodland home

This article differs from most on here and yes the link to HPC is bit weak but I stumbled across this new-build in Wales and thought I would share it.

Posted by denzil @ 09:19 AM 5 Comments

Monday, January 22, 2007

Parents and students hammered

BBC: Tuition fees 'may rise to 6,000'

1997: Education, Education, Education 2007: Inflation, Inflation, Inflation. Triple fees for science courses as well.

Posted by sovietuk @ 10:31 PM 25 Comments

Chelsea's last affordable flat?

BBC News: 'Table-sized flat' for 170,000

A flat roughly the size of a snooker table has gone on sale for 170,000 in London's upmarket Chelsea. The former janitor's storeroom measures 11ft by 7ft and has a cupboard place for a shower and kitchenette area. Potential buyers can expect to fork out an extra 30,000 to make the room habitable as there is no lighting and it is full of rubble.

Posted by neverhappy @ 04:04 PM 16 Comments

The liquidity bubble,

Marketoracle: The liquidity bubble, from real estate to bonds to stocks...

"I have never seen anything quite like what is currently going on. Market participants have lost all memory of what risk is."

Posted by cashisking @ 01:13 PM 1 Comments

Turning Point on Horizon

REUTERS: House Price Growth At Risk Of Tumble

LONDON (Reuters) - House price growth is at risk of taking a tumble after optimism in the housing market declined, according to a new report.

Posted by andy @ 12:58 PM 2 Comments

A few 'positives' to take from the latest Rightmove reoprt

Firstrung: Supply shortages push national average asking prices to a new record high of 222,859 - Rightmove

There's very few positives to take from the latest report from Rightmove for those waiting for that elusive first rung to come closer in reach. However, closer analysis of the Rightmove data reveals the following: The last six months have witnessed asking prices increase by only 2.3% This is a remarkable swing from the previous six months growth of 10.5% The average time on market has increased from 74 to 87 days in the past two months (roughly a 16% increase) The average properties for sale per agent has fallen from 61 to 54 (roughly a 13% decrease) The North West, Yorkshire and Humberside (-2.2%) and East Midlands all saw falls. The largest increase was Wales (2.9%) Greater London has finally slowed (0.3%)

Posted by converted lurker @ 11:36 AM 15 Comments

Icesave 5.7% !!!!!!!!

Icesave: rate increase from 5.45 to 5.7%

Great yield, no decorating between tenants, safe investment, no overheads, no missed payments, zero repairs, zero maintenance, yields almost certain to increase in the very near future! Common BTL's you know it makes sence.

Posted by cheeky charlie @ 11:32 AM 14 Comments

Housing Affordability Comparison

Demographia: 3rd Annual Demographia International Housing Affordability Survey:

Annual Demographia International Housing Affordability Survey - London rated 'severely unaffordable', but its not alone.....

Posted by james @ 10:41 AM 1 Comments

Rightmove says house prices will continue to rise

This Is Money: Rate rise can't halt house prices

A study by the estate agent website Rightmove claims the average property asking price rose 0.5 per cent in the past month to 222,859. The figure is up 13.5% in the past year. Some estate agents claim to have effectively 'sold out' - leaving buyers resorting to unorthodox measures like gazumping.

Posted by little professor @ 10:19 AM 2 Comments

House prices rise 13.5 percent (asking prices, that is)

Reuters: House prices rise 13.5 percent

Asking prices for homes rose an annual 13.5 percent this month, a Rightmove survey showed on Monday, picking up from a 13 percent increase in December and suggesting higher interest rates have not dampened demand.

Posted by bricksnmortarhaha @ 09:41 AM 1 Comments

Exclude energy, and inflation in December would have been 2.1%

The Independent: Why the rate rise? We haven't got a runaway economy

Mr Brown didn't cure boom and bust. Our crazy mortgage system gave him a boom that obscured the structural problems being created by the rapid expansion of the non-competitive economy. Unfortunately, by following the same monetary rules that gave us a boom, the Bank is now in danger of giving us a bust. But I'm sure it will say it's for our own good.

Posted by sold 2 rent 1 @ 12:53 AM 12 Comments

Bill Robinson predicts a short recession

The Independent: With wages and inflation tamed, the days of savage downturns should be over

Most economic downturns are accompanied by a fall in asset prices. Last time, it was the stock market. This time, the bellwether will be the housing market.

Posted by sold 2 rent 1 @ 12:42 AM 8 Comments

Sunday, January 21, 2007

Alarmingly, eight per cent of pensioners have taken to gambling

Firstrung: Forty percent of pensioners live on less than 10,000 per year

With 2007 barely weeks old, British pensioners have little to celebrate. New research from the Prudential UK highlights that the average pensioner income is currently just 12,151 a year, around 12,000 less than the average national income

Posted by converted lurker @ 04:36 PM 0 Comments

Commercial property dead - well we knew that!

Sunday Times: Warning over rush into property

The Sunday Times is playing a blinder today. NB Its by far the widest read quality on a Sunday: More than half the money invested in unit trusts recently has gone into commercial property. But even the funds managers say their glory days are over. Investors have been warned they could be piling into commercial property just as the smart money pulls out.

Posted by financial planner @ 02:49 PM 5 Comments

Shock Horror: 'The housing market is cooling down'

Sunday Times: The housing market is cooling down

Further evidence that the housing market is beginning to cool was revealed today by the Royal Institute of Chartered Surveyors (Rics). Its surveyors reported that prices rose at their slowest pace for more four months in December and this slowdown is expected to continue as the recent interest rate increases begin to bite.

Posted by financial planner @ 02:45 PM 0 Comments

More bad sentiment for those BTLers (aw, diddums)

BTL fears mount after rate rise: Sunday Times

Buy-to-let investors are in for a rough ride. Higher interest rates mean tough times ahead for all mortgage borrowers, but buy-to-let investors are in for a rougher ride than most. (tee hee!!!) The warning signs are already there. Mortgage brokers are reporting that demand for buy-to-let property is faltering after last years two quarter-point rate rises and overstretched landlords are rushing for fixed-rate deals to protect themselves from further increases.

Posted by financial planner @ 02:41 PM 9 Comments

Paul's smart move

Skynews: Heather's in the money

What a nice touch! When your getting screwed by someone why not pay them off with 10m of depreciating assets at the top of the market that with soon be worth 5m ........ you screw me .... I screw you :)

Posted by laksaboy @ 11:20 AM 0 Comments

It's the economy, stupid

Telegraph: It's the economy, stupid

Just when the Chancellor thought he'd finally secured the keys to Number 10, a storm of bad news arrives. Last week's inflation hike and rising interest rates are the early signs that Britain is heading for trouble and it's all Mr Brown's fault

Posted by gebb @ 09:32 AM 4 Comments

Saturday, January 20, 2007

Markets price in interest rates of 5.75% by June 2007

Murdoch's Times: Traders bet on rate rises after strong Christmas sales period

Another Gabriel Rozenberg article which highlights gathering economic clouds. A bunch of so called experts are pricing in 5.75% interest rates by June 2007 because of the strength of Christmas 2006 sales. I'm taking a dim view of so called experts but I feel the mood of the media is swinging towards higher interests rates. How long before reports of repossessions?

Posted by talking rot @ 09:09 PM 4 Comments

Average council tax bill 1300 in the spring?

Firstrung: Conservatives have warned that council tax bills will pass the 1,300 mark in the spring

With inflationary pressures taking their toll on living costs, both Shadow Chancellor George Osborne, and Shadow Local Government Secretary Caroline Spelman, blamed Gordon Brown for putting the big squeeze on Britain's working people. The Conservatives have warned that council tax bills will pass the 1,300 mark in the spring, just as new figures confirm that family incomes are falling in real terms.

Posted by converted lurker @ 04:58 PM 1 Comments

The Hamster STRs!! Richard Hammond's a secret HPCer?

The Daily Mirror: No Home Is An Improvement

"But the thing I'm most looking forward to? Not being a homeowner for a while. Thanks to the vagaries of the housing market, we have sold but not bought, so we're living in a rented house until we do. And I can't wait. I shall be freed from having to justify my decor, the wallpaper, the carpets and the colour of the ruddy bath."

Posted by durch (hello charlie at al) @ 01:03 PM 7 Comments

BTL's in it for capital appreciation? Average price of a new flat down 0.9%

FT: Average price of a new flat down 0.9%

The price of the average new flat in the UK has fallen 0.9 per cent in the past three years, even as the rest of the housing market has risen 31 per cent. The news will make alarming reading for the tens of thousands of investors who have bought new apartments in recent years in the hope of rapid capital growth. Whoops!

Posted by crashbunny @ 10:35 AM 4 Comments

More bad news for borrowers?

This is money: Triple Whammy

More indications of possible IR rises sooner rather than later.

Posted by headmelter @ 04:27 AM 4 Comments

BTL Nightmare - Flat prices Flat over Three Years

Financial Times: Average price of a new flat down 0.9%

The price of the average new flat in the UK has fallen 0.9 per cent in the past three years, even as the rest of the housing market has risen 31 per cent. The news will make alarming reading for the tens of thousands of investors who have bought new apartments in recent years in the hope of rapid capital growth. ADVERTISEMENT The Financial Times has analysed data from the Land Registry and found a vast discrepancy in capital growth between different types of housing.

Posted by hyrax @ 12:42 AM 2 Comments

Friday, January 19, 2007

100k house price 'normal'

The Sun: 100k house price 'normal'

THERE's no escape from the creep of house prices. Halifax are claiming today that the average house price in every county across the UK is above 100,000 for the first time.

Posted by david20040_0 @ 02:45 PM 11 Comments

Part 2 of Mr. Bonners Reckonong upon inflationary illusions

Daily Reckoning: New Woman, new economy,new inflation

I'm becoming quite a fan of this site!

Posted by ticktock @ 02:23 PM 1 Comments

How high will IRs have to go?

Sharecast: Bumper Christmas as retail sales jump

LONDON (SHARECAST) - Britains high street enjoyed a bumper Christmas according to the latest official survey putting in its best performance for more than 18 months. The Office for National Statistics said retail sales rose 1.1% in December, the biggest monthly rise since June 2005 and more than double the 0.5% rise expected.

Posted by tyrellcorporation @ 12:49 PM 8 Comments

Does the "average household" bring in 443 (net) per week?

Firstrung: Households spend on average 443 a week with transport being the highest expense - ONS

UK households spent an average of 443 a week in 2005-06. Transport was the highest category of spending, with an average spend of 62 a week. This included 23.90 on purchase of vehicles, 27.90 on the operation of personal transport (such as petrol, diesel, repairs and servicing) and 9.90 on transport services such as rail, tube and bus fares.

Posted by converted lurker @ 12:43 PM 3 Comments

Net mortgage lending down sharply

Firstrung: Lower growth in net mortgage lending and continued weak consumer credit - BBA

Latest figures from the Major British Banking Groups, for December 2006, show that: Total sterling lending to the UK private sector showed a net underlying increase of 4.0bn (+0.3%) to 1,266bn. This was the weakest monthly rise in lending for over a year and compares with an underlying rise of 15.2bn in November and an average of 12.4bn over the previous six months

Posted by converted lurker @ 12:27 PM 2 Comments

It's Going To Get Worse


TWO shock reports released yesterday are pointing to another rise in interest rates. Some economists were already predicting another rise in February and yesterday's data makes that more likely.

Posted by little professor @ 12:11 PM 9 Comments

No county has an average price of below 100K - Halifax

Firstrung: New Halifax research shows that no county now has an average price below 100,000

This is the first year that this has been the case. In 2001, nearly two in three counties - 63 out of 101 - had an average price below 100,000. The ten counties that have delivered the highest house price growth over the past five years are all in Wales and Scotland

Posted by converted lurker @ 12:03 PM 0 Comments

Inflation may take some containing

TimesOnline: Inflation fears mount as companies plan steepest price rises for a decade

Businesses are planning to cincrease prices at their fastest rate in a decade, a survey has found, in the latest sign of the heady inflationary pressures sweeping through the economy.

Posted by denzil @ 10:27 AM 4 Comments

Thursday, January 18, 2007

Bull or Bear? Not Waving But Drowning?

BBC News: Mortgage lending 'at record high'

Mortgage lending fell 10% in Dec but was 20% up on the figures for 2005.

Posted by nearly30 @ 08:42 PM 4 Comments

BBC are squeeling like piggies!

BBC: Firms 'looking to raise prices'

The number of British companies planning to push up their prices has grown at the fastest rate for almost a decade, a study has suggested. The British Chamber of Commerce said domestic sales of goods and services surged between October and December.

Posted by tyrellcorporation @ 04:58 PM 2 Comments

House price crash, where was it then? - CML

Firstrung: "The commentators who predicted a house price crash for 2006 were wrong" - CML

"The commentators who thought the housing market would crash in 2006 were wrong. Last year the market proved itself to be in robust shape and we expect it to remain so during 2007.

Posted by converted lurker @ 03:10 PM 33 Comments

Housing Bubble Bloodbath (US..)

Information Clearing House: Housing Bubble Bloodbath

The crash of the housing bubble will not be pretty. Millions of people stand to lose their homes and life savings....." A must read for those wondering if a US collapse will occur. Qu. is how will this affect the UK?!

Posted by layersoftheonion @ 03:02 PM 0 Comments

Merv. to Crash.

The Daily Reckoning: A letter from Mervyn King

Mock 'open letter' from Merv. to crash... ."Look, I know you hate being compared with Lawson or Clarke. But last time inflation was this bad, base rates in Britain were 10.38%. Now they're barely half that price! Yes, back in Dec. 1991 we were defending the Pound, just before that Hungarian character got us thrown out of the Eurozone system. Today sterling's at near-record highs. But this won't stop the proverbial hitting the fan this year. And Mr Ash seems to be a fellow Holte Ender too!

Posted by ticktock @ 02:42 PM 0 Comments

Property investment outlook for 07

Telegraph: Where to put your property money in 2007

This article still sees property and real estate as a solid invetsment for 07, and little chance of a house price crash. With the establishment of REIT's, will property investors who otherwise would have gone into BTL be attracted to the safer investment vehicle of a REIT?

Posted by jellycaster @ 02:40 PM 7 Comments

The Massive Transfer of wealth

The Daily Reckoning: The massive Transfer of Wealth

Good Daily Reckon from Bill Bonner on the folly of inflationary growth illusions, and the quickoning rate of cash flow away from Joe average and into the pockets of that top 1% of good, honest, and hardworking capitalists.

Posted by ticktock @ 02:18 PM 1 Comments

Chambers of Commerce survey justifies IR rise

Guardian: Rising prices justify interest rate hike

A survey carried out by the British Chambers of Commerce reinforces the recent CPI figures. Demand in the manufacturing sector is at a 12 year high, and a 2.5 year high in the services sector. However, the BCC chief economist urged the BOE not to raise rates again before more price information was available.

Posted by jellycaster @ 02:14 PM 0 Comments

NAEA optimistic for 2007

Firstrung: First time buyers decreased from 16.4 percent - 10.4 percent in the final quarter of 2006 - NAEA

Members of the National Association of Estate Agents (NAEA) reported an encouraging end to what has been, in many areas of the country, a good year for the residential housing market as the number of those registering an interest in buying property increased, despite December being traditionally the slowest month of the year in estate agency.

Posted by converted lurker @ 11:03 AM 7 Comments

Time to quit BTL?

every investor: Buy to let: should you get out while you can?

Many new investors entered the Buy-To Let market in 2003 and 2004 when they were able to borrow at little over 4%. If they have to replace a mortgage today, they will get a nasty shock: they will pay over 5% for the best deals on the market and if they want to borrow more than 80% of valuation the rate will probably be 5.5% or 6%.

Posted by dohousescrashinthewoods @ 10:57 AM 0 Comments

Inflation leads to fall in real wages for the first time since Labour came to power

TimesOnline: Inflation leads to fall in real wages for first time since 1997

Official figures are now showing that real wages have declined for the first time since Labour came to power. The shadow chancellor George Osborne said, "Gordon Brown tries to pretend that everything is rosy in the economy, but rising prices mean that families real living standards are falling." Average wage rises grew by 3.6% during the period measured while RPI was at 3.9. Recent RPI sprinted ahead to 4.4% which will no doubt sqeeze the the consumer further.

Posted by denzil @ 09:34 AM 7 Comments

US CPI up while housing starts down (again)

Bloomberg: U.S. Consumer Prices Probably Rose in December, Starts Fell

A heads up from Bloomberg to today's stats: So let's get this straight - the economy is declining and inflation is rising. OK. That must be good for stocks... NOT!

Posted by financial planner @ 08:37 AM 2 Comments

Wednesday, January 17, 2007

US housing bust goes on

New York Times: Buyers Scarce, Many Condos Are for Rent

Unsold properties pile up, prices continue to fall

Posted by steve @ 10:31 PM 0 Comments

Ho Ho Ho Ha Ha Ha: Interest rate cut in Aug 2005 was a MISTAKE

Inflation leap turns screw on MPC: Torygraph Online:::

The bears are gathering: First Edmund Conway and now Ambrose Evans-Pritchard. This short piece by Evans-Pritchard reports the mistakes of the past and suggests the MPC now has its work cut out. "The MPC is a highly competent body that has delivered low inflation for almost a decade, but it now has work to do to maintain that record." The piece also shows have different sectors of the population are facing vastly different inflation rates (but strangely, none of them are near the CPI - why is that then?). The article also states inflation will rise for the next 24 months if wages increases occur. Bring it on ...

Posted by talking rot @ 07:31 PM 16 Comments

Who benefits from high inflation?

Telegraph: Winners in the inflation stakes

The Telegraph looks at how inflation can improve some people's financial situations. Debtors see the real value of their debt shrink, homeowners see the value of their property soar, and people in index-linked savings accounts earn good interest.

Posted by jellycaster @ 02:03 PM 16 Comments

What's your personal inflation rate?

ONS: Personal Inflation Calculator

Work out your personal rate of inflation based on your own expenditures, as opposed to the averages used in the official indexes.

Posted by jellycaster @ 01:59 PM 2 Comments

Will there be another IR rise on the back of the high CPI?

Times Online: Homeowners face another rate rise after inflation reaches 15-year high

If the MPC raised IR's because they had seen the inflation figures released to the rest of the country yesterday, is it inevitable that another rate rise will take place in Feb or March? Wage settlements are not predicted to increase, and homeowners are going to come under increasing financial pressure.

Posted by jellycaster @ 01:56 PM 1 Comments

Brown's reaction to inflation figures

Guardian: Chancellor plays down inflation rise

The high level of the CPI is due to the trebling of oil prices between 2003 and 2006, according to the Chancellor. 125% countries around the world have raised interest rates and experienced high inflation, with Britain's experience being less problematic than many others.

Posted by jellycaster @ 01:52 PM 11 Comments

Future is bright for FTBs

Firstrung: Firstrung - the recent interest rate rises will not hinder first time buyers

"The common misconception is that a rate rise will prevent first time buyers getting onto the much fabled 'first-rung', the irony is that low interest rates and the volume of ready available cheap credit has caused prices to rise out of the reach of first time buyers. This recent rise in rates will surely help to achieve the stage where house prices can finally stop accelerating out of the reach of the many".

Posted by converted lurker @ 01:01 PM 3 Comments

Further fall in UK unemployment

BBC News: Further fall in UK unemployment

Unemployment in the UK fell by 29,000 between September and November to 1.67 million, official figures have shown.

Posted by david20040_0 @ 12:10 PM 2 Comments

Do you plan to accept a pay cut this year?

MoneyWeek: Do you plan to accept a pay cut this year?

MoneyMorning's John Stepek examines the latest inflation figures and how they are likely to affect wage demands and next month's interest rate decision.

Posted by mary @ 11:37 AM 4 Comments

UK inflation set to fuel pay claims

FT.com: UK inflation set to fuel pay claims

Interesting FT article about how RPI (now at 4.4%) is expected to rise to 5% by the spring. Unions are encouraging their members to ask for 'significantly above' 4.4% in their pay negotiations. 'Widespread price rises showed inflation more entrenched in the economy than the Bank had thought possible.'

Posted by wedgels @ 11:02 AM 0 Comments

Bad news stories coming thick and fast

Daily Mail: Homeowners' triple whammy

Homebuyers were rocked by a triple dose of depressing financial news. First they were warned to brace themselves for yet another interest rate rise, the fourth in seven months. That threat came in the wake of figures showing inflation is running at its highest for 15 years. Finally, the plight of first-time buyers was painted as bleaker than ever, with a report showing they are taking on unprecedented levels of debt to secure a toehold in the market.

Posted by uncle chris @ 10:18 AM 5 Comments

Tuesday, January 16, 2007

Evan Davis - sorts the mess out

BBC News: Why the sharp rise in inflation

Evan analyses. All to the good. No earth shatterings.

Posted by financial planner @ 06:50 PM 27 Comments

Credit crunch begins

Home.co.uk News: Goodbye to fixed rates

Many lenders are rushing to take fixed rate mortgage deals off the market after last weeks surprise bank rate hike. As many as 12 lenders have suspended popular fixed-rate mortgages already. Some are withdrawing their entire range.

Posted by tinecu @ 02:18 PM 0 Comments

More Bear News

MoneyWeek:::: Will the UK housing market stumble in 2007?

A Similar article to the one in the Indie. Interesting to look for parallels and differences though. I wonder what the culative effect of Bear-ish articles will be, now that they are starting to appear fashionable in the main stream press. (If one can call MoneyWeek or the Indie fashionable).

Posted by talking rot @ 12:57 PM 6 Comments

Is 2007 the year in which house prices will finally crash?

The Independant: Is 2007 the year in which house prices will finally crash?

Nobody wants to be the bearer of bad news. That may be why it is almost impossible to find a housing market expert who predicts a crash - or even a slowdown - this year.

Posted by rich benton @ 12:34 PM 3 Comments

No slowdown for NI house prices

BBC NEWS: No slowdown for NI house prices

Northern Ireland house prices continued to rise in December despite a slowdown in the United Kingdom market, according to a new housing study.

Posted by david20040_0 @ 11:47 AM 4 Comments

Official govt inflation release

Firstrung: Inflation figures - the highest on record

CPI annual inflation - the Government's target measure - was 3.0 per cent in December, the highest on record, and up from 2.7 per cent in November. The largest upward effect on the CPI annual rate came from transport costs. Prices of fuels and lubricants rose this year, in large part reflecting the increase in fuel duty which came into effect on 6 December

Posted by converted lurker @ 11:10 AM 4 Comments

Lib Dems savage govt. financial advice initiative

Firstrung: Financial advice must be available now to halt spiralling debt - Cable

"With personal debt levels spiralling out of control, free generic financial advice is needed now. However, reports that this scheme will not be up and running until 2012 are shocking" - Vince Cable

Posted by converted lurker @ 10:31 AM 3 Comments

Irish eyes smiling or wiped?

Firstrung: House prices have dropped in Ireland for first time since 2001

Ulster Bank's economist Pat McArdle said December was the second month in a row in which housing activity fell. He said it was likely that there was an outright fall in house prices in the month - the first time this has happened since late 2001.

Posted by converted lurker @ 10:28 AM 0 Comments

Will the UK housing market stumble in 2007?

MoneyWeek: Will the Uk housing market stumble in 2007?

'As regular readers will know, MoneyWeek has been worried about the UK housing market for some time. So far, our fears have been unfounded. House prices - after a brief hiatus in 2005 - have continued to soar beyond even the most optimistic commentator's predictions. But despite all that, we can't just relax and join the party. And this year - for a change - it seems we're not the only ones who are starting to believe that this can't go on forever...' John Stepek looks at how the Bank of England's latest rate rise is already starting to affect homeowners - and why there's trouble ahead for buy-to-let investors.

Posted by mary @ 10:27 AM 0 Comments

First time buyers 'squeezed more'

BBC News: First time buyers 'squeezed more'

First-time home buyers in the UK are borrowing an average of 3.29 times their incomes, figures show.

Posted by david20040_0 @ 10:17 AM 3 Comments

Oooops! (he-he!)

BBC: UK inflation rate increases to 3%

The UK's rate of inflation jumped to 3% in December, according to the latest set of official figures. The rise in the Consumer Prices Index, up from a rate of 2.7% in November, was at the top end of expectations.

Posted by tyrellcorporation @ 09:52 AM 23 Comments

Inflation at an 11-year high

BBC: Inflation rate 'at 11-year high'

The MPC could quite easily be accused of dithering for way too long as inflation is now expected to hit an 11-year high.

Posted by denzil @ 09:22 AM 5 Comments

Excess in the City: Bonus Bonanza

ITV1: Excess in the City: Bonus Bonanza

ITV1 tonight 9pm. As the City of London prepares to pay an incredible 19 billion pounds in annual bonuses to City staff, this programme reveals the lavish lifestyles of some of the traders and bankers who are part of the pay bonanza, showing how they've earned the money and how they're spending it. The programmes also explores how the payment of such bonuses affects the rest of us, through spiralling house prices and inflation, and details the new industries set up to cater for the new breed of super rich.

Posted by doomwatch @ 09:11 AM 5 Comments

Excess in the City: Bonus Bonanza

ITV1: Excess in the City: Bonus Bonanza

ITV1 tonight 9pm. As the City of London prepares to pay an incredible 19 billion pounds in annual bonuses to City staff, this programme reveals the lavish lifestyles of some of the traders and bankers who are part of the pay bonanza, showing how they've earned the money and how they're spending it. The programmes also explores how the payment of such bonuses affects the rest of us, through spiralling house prices and inflation, and details the new industries set up to cater for the new breed of super rich.

Posted by doomwatch @ 09:11 AM 0 Comments

The heat is on!

Telegraph: Banks withdraw fixed-rate mortgage offers

Banks and building societies pulled many fixed-rate mortgage deals off the market yesterday, denying borrowers the chance to avoid the Bank of England's next increase in interest rates.

Posted by tyrellcorporation @ 08:27 AM 1 Comments

Monday, January 15, 2007

Times reports RICS

Times Online: Housing market starts to cool as higher rates bite

Britains red-hot housing market slowed at its fastest pace in more than two years last month, in the first clear-cut signal that higher interest rates are at last cooling the market.

Posted by camem' @ 11:31 PM 1 Comments

New Zealand Bubble

New Zealand Herald: NZ homes at their least affordable in 18 years

Don't know if we have covered New Zealand before but here is another article reflecting such global property trends. Will the much forcast impending downturn turn into a global phenomenon of Wall Street crash proportions.

Posted by enuii @ 08:31 PM 3 Comments

Housing slump hits hard across the pond

Telegraph: US housing bust getting worse, warns Goldman

The US Federal Reserve will need to slash interest rates three times this year as the housing slump goes from bad to worse and the American consumer begins to buckle, Goldman Sachs has warned. "Americans have shown a complete lack of self-control. The personal savings rate is at its lowest point ever, and has actually been negative since April 2005. We believe that housing will soon become the proverbial straw that breaks the camel's back". Goldman Sachs said homeowners had treated windfall gains from rising house prices as if they were "recurring income", using home equity withdrawls to subsidize over-stretched lifestyles. This artificial boost to spending has already dropped from 7pc to 4pc of GDP over the last year, and is likely to halve again in 2007. Mortgage equity withdrawal will fall from 13pc of "discretionary household cash flow" in 2006 to 7pc this year, causing spending power to contract for the first time since the dotcom bust.

Posted by drewster @ 05:27 PM 5 Comments

US housing bust getting worse, warns Goldman

Daily Telegraph: US housing bust getting worse, warns Goldman

American consumer begins to buckle with a complete lack of self-control, homeowners have treated windfall gains from rising house prices as if they were "recurring income", using home equity withdrawls to subsidize over-stretched lifestyles.

Posted by lloyd @ 04:56 PM 0 Comments

UK 2007?

Telegraph: US housing bust getting worse

Americans have shown a complete lack of self-control. The personal savings rate is at its lowest point ever, and has actually been negative since April 2005. "We believe that housing will soon become the proverbial 'straw that breaks the camel's back'," said David Kostin, the investment bank's US strategist.

Posted by cheeky charlie @ 04:46 PM 0 Comments

Education, education, education.

FT.com: Promise of free financial advice for all adults

Every adult is to be offered free basic advice about financial products in a nationwide scheme to be set up within five years, the government will promise today. The Treasury reckons inability of millions of adults to get to grips with basic financial information hampers economic efficiency and entrenches poverty.

Posted by dohousescrashinthewoods @ 12:43 PM 11 Comments

Income tax rise of 4%?

TimesOnline: Public spending 'will need income tax rise of over 4p'

A report has found that from the middle of next year income tax will have to rise by 4p on the basic rate of income tax to fund the difference between government income and its expenditure.

Posted by denzil @ 12:29 PM 13 Comments

Why a crash has got to happen

MSN: Why house prices have got to come crashing down

Article from Chris Gilchrist - Everyinvestor.co.uk: Basically stating that housing cannot continue to oustrip earnings, FTBuyers not being able to afford to buy houses in 90% of towns, that the housing market cannot survive without a lower rung, and that BTL has replaced FTB as the lower rung in recent years but at poor returns. How raising interest rates for the 2nd time in 3months will have an effect, and how homes are much cheaper in France and Germany etc...

Posted by tormy @ 12:24 PM 0 Comments

Balanced HPC article

Every Investor: The house price boom has got to crash

A random link that a colleague sent me, it covers with clarity a few of the angles that will be well-worn to regular visitors on this blog, including earnings vs prices, the bank of mum and dad, BTL figures not adding up, through to inflation. Looks like a balanced article in a sea of fluff.

Posted by dohousescrashinthewoods @ 11:47 AM 8 Comments

Halifax rebut negative news

Firstrung: House prices rose by 400bn in 2006 - Halifax

For some this will make for pleasant reading, just as the market jitters begin to emerge after last weeks rate rise so HBOS publish another 'feel good release' that the Daily Mail/Express readers will lap up. In fact the comparison with the Express deserves closer investigation, similar to re-hashed 'Dianagate' articles, this release is a re-modelled version of the data HBOS published in 2006, you know the script by now...

Posted by converted lurker @ 11:08 AM 0 Comments

DCLG shows average price nearing 200K

Firstrung: First time buyers see house prices rise by 8.8% year on year - DCLG

The mix-adjusted average house price in the UK in November 2006 stood at 199,467, up from 197,987 in October 2006 (not seasonally adjusted). UK annual house price inflation in November 2006 was 8.9 per cent, up from 8.6 per cent in October 2006. Annual house price inflation in London was 10.1 per cent in November 2006, down from 10.6 per cent in October 2006.

Posted by converted lurker @ 11:06 AM 0 Comments

Office of National statistics personal inflation calculator

Office for National Statistics (ONS): Personal Inflation Calculator

It's aim is to try and help the punter understand his or her inflation measure. I have just completed my own measure which was marginally over 6.5%.

Posted by denzil @ 10:33 AM 1 Comments

Dr Doom says it's time to cash up now

New Zealand Herald: Dr Doom says it's time to cash up now

Marc Faber, who predicted the US stock market crash in 1987, said global assets are poised for a "severe correction" and it's time to sell. "In the next few months, we could get a severe correction in all asset markets," Faber said in an interview with Bloomberg Television in New York.

Posted by anthony ashwin @ 08:30 AM 1 Comments


Sky News: Worries Over Loans Begin

Households need to take action to reduce their credit card bills if they want to avoid panic setting in on so-called "Debt Day", a consumer campaigner has warned. Martin Lewis, founder of www.moneysavingexpert.com, said the time has now come when the cost of Christmas spending begins to hit home. Bills are dropping through the letterbox for the first time since the party season ended. And Mr Lewis insists that unless people review the way they intend to pay off debt, they could be looking at a lengthy period deep in the red. He pointed out that the country had now reached "Debt Day".

Posted by jason @ 07:12 AM 0 Comments

New website to work out personal inflation

BBC News: ONS highlights personal inflation

Members of the public can now work out their own personal inflation rate using an official government website. An online calculator will enable people to work out how their spending compares with national averages.

Posted by Webmaster @ 06:50 AM 4 Comments

Sunday, January 14, 2007

Weeks news in one slice

Firstrung: First time buyers the week in focus - 14/01/07

RICS expects UK house prices to grow by 7% and affordability and accessibility for first time buyers to continue to worsen in 2007. Predicting a small slowdown from this year's 8% growth rate, RICS expects activity to remain high with demand outstripping supply...READ MORE.

Posted by converted lurker @ 10:05 PM 3 Comments

An HPCer tells it like it is

Indie on Sunday: House Prices: Will your home reach for the sky or crash?

As Rolf might say, 'Can you tell who it is yet?'

Posted by financial planner @ 06:51 PM 0 Comments

McRae's analysis of IR hike

The Independent: Hamish McRae: You might grumble, but a rate rise now could soften the downturn when it comes

The MPC's rate rise may have been caused by a prospect of a consumer price index for December creeping over 3%. McRae believes this economic cycle may see interest rates of 6%, within the next year or two. He also argues that the continuing housing boom is a failure of monetary policy, and must end soon

Posted by jellycaster @ 05:02 PM 2 Comments

Housing market pain not relieved by spin

CNN: Housing market pain not revealed by stats

We hear lots of stories about the pain in the US: An Indiana man writes to say he can't sell his house even asking less for it than he paid - four years ago. A Duluth, Minnesota, writes, "The housing market is brutal, has been for months. Prices dropping at least $20,000, some as high as $60,000 just to get them sold. Most aren't selling even with the drop."

Posted by harold @ 03:05 PM 7 Comments

Buy To Let Nab Majority of Homes

Guardian: Buy-to-lets nab London's homes

More than two thirds of new homes in London are sold to buy-to-let investors, increasing fears that the property market's rise - which is squeezing out first-time buyers - is being fuelled by speculators.

Posted by rich @ 12:51 PM 20 Comments

Global house price inflation slowing

Firstrung: The global property boom is slowing but will a bust follow?

Global house prices continued to rise rapidly in 2006, but at a slower pace than in 2005. Northern Europe leads the house price boom. Northern European countries saw the highest house price rises in 2006, among the 40 countries monitored by the Global Property Guide (which maintains the world's single biggest collection of house price indices). Leading the charge was Estonia with an impressive 54% house price increase in 2006. This followed average dwelling price rises of 57% in 2005, and 25% in 2004.

Posted by converted lurker @ 12:13 PM 0 Comments

The great 2007 HPC

MSN Money: House prices have got to come crashing down.

It can't go on like this. House prices simply cannot continue to rise faster that earnings..., say our expert. I argue that they can, if intervention to curb BTL doesn't happen.

Posted by magnifico @ 12:10 PM 2 Comments

Panic: Interest rate hike is premature, says NAEA

Free Help Advice: Panic: Interest rate hike is premature, says NAEA

The National Association of Estate Agents (NAEA) has commented that the Bank of Englands decision to increase the interest rates to 5.25% is premature and disappointing, as enough time was not given for the effect of Novembers rate hike to be fully felt. The Bank of England (BoE) surprised many economists and analysts earlier this week, by increasing the bank base rate from 5% to 5.25%.

Posted by matt @ 11:35 AM 4 Comments

Speculators dominate the London market

Observer: Buy-to-lets nab London's homes

More than two thirds of new homes in London are sold to buy-to-let investors, increasing fears that the property market's rise - which is squeezing out first-time buyers - is being fuelled by speculators......

Posted by arch @ 10:40 AM 0 Comments

House prices have got to come crashing down

MSN: House prices have got to come crashing down

It cant go on like this. House prices simply cannot continue to rise faster than earnings as they did again in 2006. First-time buyers cant afford a home in 90% of Britains towns........

Posted by will @ 10:31 AM 4 Comments

Saturday, January 13, 2007

Fools not being fooled

Firstrung: Consumers on a financial website survey believe the realistic inflation figure is closer to 7.4%

The Government grossly underestimates inflation figures according to new findings of an online survey by independent personal finance website Fool.co.uk. According to almost 1,500 Fool.co.uk readers, the Government's inflation figures are wrong. An overwhelming 90% of people believe that inflation in the UK is running at well above the Government's figure of 2.7%. On average consumers reckon that a more realistic figure for annual inflation is 7.4%. Over two-thirds of respondents said that in their estimation, the true rate of inflation is in the region of 4% to 9%. Worryingly, 1 in 4 people said their household inflation is more likely to be 10% to 15%!

Posted by converted lurker @ 06:20 PM 9 Comments

A politicised attack of Brown's monetary policy

The Telegraph: It's Brown's fault we all have to tighten our belts

The Chancellor's excessive borrowing is the cause of Britain's 1.3 trillion debt mountain, and he is unable to recognise the true nature of inflation, claimes this article. Although this article has a degree of political bias it is hard to ignore, it makes some pertinent points about the way money supplies are being governed in this country.

Posted by jellycaster @ 12:33 PM 11 Comments

Surprised lenders end fixed rate deals

The Times Online: Rates panic hits borrowers and lenders

Banks and Building Societies, taken off guard by the MPC's quarter point IR rise this week, rushed to end fixed rate mortgages and similar deals, under fears that they such cheap deals could not be supported should there be another rise in the Spring. Unsurprisingly, financial institutions were not in quite such a rush to increase the interest on their savings accounts.

Posted by jellycaster @ 12:22 PM 3 Comments

The problems of generalising about the housing market

This is Money: Who to trust on house prices?

There is little consensus, even among major lenders such as Nationwide and Halifax on forecasts for house prices. They can't even agree on what the average price of a UK home is. What are the reasons for these discrepancies, and who should be trusted?

Posted by jellycaster @ 12:12 PM 1 Comments

Is the cheap money supply drying up?

Times: Rates panic hits borrowers and lenders

Swap rates, the money markets that determine fixed-rate lending, jumped in response to the possibility of yet another quarter-point increase as soon as March, leaving lenders panicking that there would not be enough funding to support existing cheap deals. Andrew Hagger, of Moneyfacts, the price comparison service, said: Lenders are panicking. We have never seen so many fixed rates being pulled so quickly. Even when a rise is expected, it usually takes a week for lenders to respond.

Posted by uncle chris @ 11:20 AM 0 Comments

Novice landlords defy rental downturn

Thisismoney.co.uk: Novice landlords defy rental downturn

Experts fear the buy-to-let investors could be buying at the peak of the housing market and warn that prices could soon fall. Most have become landlords since 2003, long after the property boom began in 1996, which means they are paying much more for each property

Posted by davo453 @ 04:28 AM 4 Comments

Friday, January 12, 2007

Benefits of IR rise

Stock Exchange: Rate rise offers some hope

First-time buyers, previously priced out of the housing market, may benefit from the Bank of England's decision to raise interest rates to 5.25 per cent, a market expert predicts.

Posted by bufferbear @ 09:16 PM 6 Comments

Savings rate increased to 5.65% AER with ICICI

This is Money: ICICI savings rate up to 5.65%

The post-rate rise savings war has fired up, with Indian bank ICICI last night raising the rate on its online HiSave account to 5.65% from 5.45%, less than 12 hours after the Bank of England decision to raise rates to 5.25%.

Posted by webmaster @ 07:03 PM 10 Comments

Where were the MPC when we needed them?

The Independent: Jeremy Warner's Outlook: The Bank's been asleep on the job. Surprise of yesterday's rise shows it is awake again

Jeremy Warner assesses the reasons behind the MPC's decision to raise interest rates, and wonders why they didn't do it sooner.

Posted by jellycaster @ 05:36 PM 7 Comments

Affordability crisis

Guardian: Conditions worsen for first time buyers, says RICS

The Royal Institute of Chartered Surveyors has claimed that houses are less affordable now than at any stage since 1991. 10 years ago, the average couple could service a house purchase with 25% percent of their net pay. That figure is now more like 81%.

Posted by jellycaster @ 05:31 PM 1 Comments

Is house price inflation 'plateauing'?

FT.com: Growth in UK house prices stalls

The FT house price inflation index, published today, shows a year on year decrease for the first time in 15 months. December prices rose 6.8%, compared to November's 7.4%.

Posted by jellycaster @ 05:27 PM 2 Comments

Place your bets for next month

The Telegraph: Scare for City as price index catches alight

It was perhaps the biggest shock ever delivered by the Bank of England since it was granted independence. But, as traders counted their losses last night after the surprise increase in interest rates, it was becoming increasingly clear that the seeds of their misery had been sown many hours before, by an apparently innocent-looking note sent to the office of Mervyn King.

Posted by sold 2 rent 1 @ 05:09 PM 7 Comments

Monthly house price growth appears to have reached a plateau with monthly growth of 0.6% in December

Firstrung: FT house price index shows house prices rose 6.8 percent in 2006

The latest FT House Price Index, updated with the most recent monthly data from the Land Registry, shows that house prices rose by 0.6% in December and by 6.8% over the past 12 months....

Posted by converted lurker @ 04:09 PM 0 Comments

First Nazi, opps I mean Bank to raise it rates

BBC news: Nationwide first to raise rates

The Nationwide building society has become the first major lender to respond to yesterday's surprise rise in interest rates by the Bank of England.

Posted by randomkevlar @ 03:48 PM 2 Comments

Norwich Union Endowment Shortfall

BBC News: Norwich Union Endowment Shortfall

Nine out of ten "with-profits" endowment policies sold by the Norwich Union (NU) will probably fail to repay their customers' mortgages, it says.

Posted by nasha @ 02:49 PM 0 Comments

Are pips squeaking?

FT.com: Rush for fixed-rate mortgages

Seconds after noon the telephones began ringing at the offices of Landlord Mortgages in Wokingham, Berkshire. Customers, learning of the Bank's decision, were rushing to remortgage."It was all a bit mad. It's difficult to handle this kind of volume. Everyone's working late," said Lee Grandin, a managing director with Landlord.

Posted by dohousescrashinthewoods @ 01:43 PM 0 Comments

FT says HPI stalling

FT.com: Growth in house prices stalls

House price inflation has fallen for the first time in 15 months on an annual basis, suggesting that inflation in the housing market has reached a plateau, according to the FT house price index published on Friday.

Posted by dohousescrashinthewoods @ 01:42 PM 0 Comments

Another Nail In The Coffin For UK House Prices

home.co.uk: Another Nail In The Coffin For UK House Prices

"Each turn of the screw takes the UK housing market closer to the brink and in a market hamstrung by affordability constraints there is very little room to manoeuvre." To underline the seriousness of the situation, the report draws a parallel with recent events on the other side of the pond, "The current US housing slump is a direct consequence of a series of interest rate hikes in 2005, by their central bank, in an attempt to curb inflation. A similar chain of events appears to be now unfolding in the UK."

Posted by doomwatch @ 12:56 PM 3 Comments

Another Nail In The Coffin For UK House Prices

home.co.uk: Another Nail In The Coffin For UK House Prices

"Each turn of the screw takes the UK housing market closer to the brink and in a market hamstrung by affordability constraints there is very little room to manoeuvre." To underline the seriousness of the situation, the report draws a parallel with recent events on the other side of the pond, "The current US housing slump is a direct consequence of a series of interest rate hikes in 2005, by their central bank, in an attempt to curb inflation. A similar chain of events appears to be now unfolding in the UK."

Posted by doomwatch @ 12:56 PM 0 Comments

HPI key to IR rise - well I never?!

Reuters: Fast house price growth lurks behind rate hike

The Bank of England is reluctant to admit it, but the surging housing market may lurk behind Thursday's shock decision to hike the cost of borrowing.

Posted by bobsta @ 12:55 PM 0 Comments

Growth in UK House Prices Stalls

Growth in UK house prices stalls: Growth in UK House Prices Stalls

House price inflation has fallen for the first time in 15 months on an annual basis, suggesting that inflation in the housing market has reached a plateau, according to the FT house price index published on Friday.

Posted by ggeurts @ 12:48 PM 0 Comments

The Bank of England delivers a short sharp shock

MoneyWeek: The Bank of England delivers a short sharp shock

The Bank of England's decision to raise interest rates yeterday came as something of a surprise. But in the light of the latest inflation data, not to mention the UK's housing hysteria, the question is: will it be enough?

Posted by mary @ 10:37 AM 1 Comments

House price inflation? It's history in this cycle

Firstrung: Firstrung - the day house price inflation died

"It is far too early to celebrate, after all the rate rise is a defence mechanism versus the mismanagement of the economy in allowing a run on printing money to obscene levels at a time when interest rates were far too low for too long. The effect has been a rise in asset prices due to speculation, which has in turn caused misery to a generation of priced out first time buyers".

Posted by converted lurker @ 10:29 AM 0 Comments

Up, up and away...

Reuters: Global interest rates locked in upward mode

An upward shift in global interest rates looked more than ever inevitable after a surprise increase by the Bank of England on Thursday and signals of more to come from the central banks of Switzerland and the euro zone.

Posted by harold @ 10:16 AM 1 Comments

More job losses

the register: SAS shuts EMEA HQ

Almost 300 of SAS Institute's European staff are to be disbanded this quarter, as the business intelligence and analytics company closes its EMEA HQ.

Posted by sam @ 10:02 AM 0 Comments

Thursday, January 11, 2007

The Guardian shocked by IR rise

Guardian: Inflation the key to Bank's surprise move

If the Bank of England took 'everyone by surprise' as this article in the Guardian claims, I would be interested to know why for the past two weeks I've been posting articles on this blog saying that the markets have already factored in a quarter point rise.

Posted by jellycaster @ 06:11 PM 16 Comments

Rate rise likely to hit housing market

Guardian: Rate rise likely to hit housing market

David Bexon, head of SmartNewHomes.com, called the Bank's decision "dangerous". Presumably just as dangerous as the unnecessary, market ramping comments he's so fond of peddling....

Posted by rod, jand & freddy @ 05:52 PM 4 Comments

RICS Warns Over Repossessions

BBC News: Warning over home repossessions

I guess they don't want any more rate rises. Surprise surprise. From the article: "Home repossessions could become more common if UK interest rates keep rising, the Royal Institution of Chartered Surveyors (RICS) has warned."

Posted by rich @ 05:03 PM 16 Comments

ECB keep rates at 3.5%

Reuters: Euro zone interest rates left unchanged

Interest rates in the Euro zone have been held at 3.5% following this month's policy meeting of the European Central Bank. There is some uncertainty among analysts as to whether Trichet will follow the Bank of England's example and raise rates further into 2007.

Posted by jellycaster @ 04:58 PM 0 Comments

Is that the horizon coming?

Guardian: Norwich Union in the danger zone

A few shocks on the way for property owners, in addition to when they suddenly drop off a low fixed rate.

Posted by inbreda @ 04:41 PM 2 Comments

Telegraph's reaction to IR rises

Telegraph: Shock increase in interest rates

The Bank of England Monetary Policy Committee has reacted to inflationary pressures by raising the cost of borrowing to 5.25% in a move that was either a massive shock, or yawningly predicatble, depending on what you read.

Posted by jellycaster @ 04:40 PM 0 Comments

since people are posting job losses,

the regsister: NCR cuts 650 Scottish jobs

650 jobs a'going in scotland. Pretty spectacular thought. not even the second half of Jan and the bad news is rolling in. expect blair to jump ship any day now.

Posted by sam @ 04:17 PM 0 Comments

Another rise seems on its way and there may be more after that

Bloomberg: Bank of England Unexpectedly Raises Interest Rates

The Bank of England unexpectedly raised its benchmark interest rate by a quarter-point, the third increase since August, saying inflation may accelerate from the fastest in a decade.

Posted by anytime @ 04:14 PM 0 Comments

Another 500 jobs to go in the North-East

BBC: Birds Eye plant to shed 490 jobs

Nearly 500 jobs are being cut by food producer Birds Eye with the closure of its fish foods range factory in Hull. The company has blamed "excess capacity in its supply chain, particulary fish". The fish foods range will now be produced in Bremerhaven and Lowestoft.

Posted by uncle chris @ 03:16 PM 2 Comments

300 jobs to go in South Wales

MSN: Burberry under attack over 300 axed jobs

Designer clothing firm Burberry has come under attack after confirming the closure of a factory, resulting in the loss of 300 jobs. The company is moving production to China and said it will go ahead with the closure of its plant at Treorchy in South Wales.

Posted by uncle chris @ 03:12 PM 2 Comments

If Stirling Falls, Inflation will Rise

MoneyWeek: Why would anyone want to buy Sterling?

Today the MPC put interest rates up 0.25%. If stirling falls, imported goods will cost more. This is a very readable piece from MoneyWeek which suggests the fall of stirling is imminent. A good quote from the article is " ... the UK economy looks uncannily like late '80s Japan Inc today...only in miniature and minus the trade surplus. " Can we recall a previous time when the 's fall was preceeded by a fall in the US $?

Posted by talking rot @ 02:26 PM 3 Comments

Standard Life: UK property market "might be heading for a fall in a few years time"

The Scotsman: SLI launches two new property funds aimed at UK and Europe

This is an article about two new REIT-based property funds which have just been launched by Standard Life. The interesting thing is that they don't sound at all enthusiastic about the UK housing market: the fund manager says "We're not looking at the UK through rose-tinted spectacles. The UK is moving towards the end of its property cycle and returns will slow to low single-digit returns in the next two to three years." and "If we see no value in a particular country, it might be the UK, which is looking like it might be heading for a fall in a few years' time, we will come out completely".

Posted by scunnered @ 02:16 PM 0 Comments

rates up 0.25%, official press release from BOE

Firstrung: Bank of England surprises analysts by raising rates by 0.25 points to 5.25%

The Bank of England's Monetary Policy Committee today voted to raise the official Bank Rate paid on commercial bank reserves by 0.25 percentage points to 5.25%. In the United Kingdom, output continues to rise at a firm pace. Domestic demand has grown steadily and credit and broad money growth remain rapid. The international economy continues to grow strongly.

Posted by converted lurker @ 12:18 PM 36 Comments

Bank increases UK rates to 5.25%

BBC: Bank increases UK rates to 5.25%

The Bank of England has raised interest rates by a quarter of a point to 5.25% in an effort to curb inflation

Posted by millard @ 12:18 PM 0 Comments

Remember this?

FT.com: Rise in rates this month unlikely, say economists

An old article but well worth another look at in the circumstances. I wonder who the one in 50 was that got it right?

Posted by skweem @ 12:18 PM 0 Comments

Bank raises interest rates to 5.25%

BBC News: Bank raises interest rates to 5.25%

BoE raised UK interest rates to 5.25% in effort to curb rising inflation.

Posted by bloke111 @ 12:12 PM 0 Comments

Bank increases UK rates to 5.25%

BBC News: Bank increases UK rates to 5.25%

The Bank of England has raised interest rates by a quarter of a point to 5.25% in an effort to curb inflation.

Posted by david20040_0 @ 12:11 PM 0 Comments

Interest Rate Rise

This is Money.co.uk: Bank shocks with rate rise

Borrowers' bills will be going up sooner than expected after the Bank of England today surprised commentators and the City with a quarter-point bank rate rise to 5.25%.

Posted by skweem @ 12:10 PM 0 Comments

The BOE have teeth?

BBC News: Bank increases UK rates to 5.25%

The almost unthinkable has happened and rates have moved to 5.25%. This makes the CPI reading from next Tuesday even more interesting. http://news.bbc.co.uk/1/hi/business/6251963.stm

Posted by wedgels @ 12:09 PM 0 Comments

Up Quarter Point

Sky News: Breaking News

Get in.

Posted by doomwatch @ 12:05 PM 0 Comments

Guardian This Morning

Guardian Online (this morning): World 'inadequately' prepared for shocks

A series of intensifying global risks from climate change to tumbling house prices pose a mounting threat to the longest period of sustained growth in the world economy since the 1960s, according to a report released today.

Posted by wsn03 @ 10:01 AM 0 Comments

Sabre-rattling from RICS

BBC News: Warning over home repossessions

Home repossessions could become more common if UK interest rates rise this year, the Royal Institution of Chartered Surveyors (RICS) has warned. Ho hum, just in time for the MPC meeting...

Posted by harold @ 09:32 AM 9 Comments

Sabre-rattling from RICS

BBC News: Warning over home repossessions

Home repossessions could become more common if UK interest rates rise this year, the Royal Institution of Chartered Surveyors (RICS) has warned. Ho hum, just in time for the MPC meeting...

Posted by harold @ 09:29 AM 0 Comments

Building less houses = higher prices, really?

Firstrung: Household growth will lead to housing shortage and higher house prices - CIH

If new figures on household growth are accurate, we are heading for a housing shortage and even higher prices unless we build significantly more houses, writes Steve Wilcox, from the University of York, in the latest UK Housing Review 2006/7.

Posted by converted lurker @ 12:41 AM 5 Comments

Consumer confidence lowest since 1983

Firstrung: Consumer confidence has fallen to a new low - Nationwide

Confidence Indices have fallen for the second consecutive month. People are particularly pessimistic about the prospects for the economy and employment in the first 6 months of 2007 and overall confidence has fallen 15 points in two months and is now back at its low point of 83....

Posted by converted lurker @ 12:37 AM 2 Comments

Wednesday, January 10, 2007

The real UK "Miracle Economy"

Credit Action: UK Debt Statistics - January

Published last week, but makes some incredibly scary reading. Just a few highlights ... Average household debt in the UK is ~ 8,765 (excluding mortgages) and 52,811 including mortgages. 1.4 million adults in over 10k of unsecured debt, report that they are quite likely, likely or certain to declare themselves bankrupt or take out an IVA. Half the population (52%) could survive financially for just 17 days, should they suffer an unexpected loss of income. 32% of mortgages taken out by home movers in October 2006 were interest only mortgages ... AND YET .... the CML said 2007 will be a record year with an extraordinary 360 billion borrowed in mortgages.

Posted by uncle chris @ 09:27 PM 13 Comments

Households face financial squueze in 2007

Manchester Evening News: Brits braced for a pounding

As Eastern European immigrants continue to keep the supply of labour high, wages are unlikely to keep up with the increasingly high cost of living. Allied to a potential increase in interest rates this month, people may find themselves with significantly less cash in their pockets at the end of the month.

Posted by jellycaster @ 12:26 PM 11 Comments

House Prices to Double

houseladder.co.uk: House prices to double by 2030 says broker

House prices in the UK are set to double between now and 2030, financial broker Tradition Financial Services (TFS) has claimed

Posted by david20040_0 @ 11:34 AM 16 Comments

HBOS predicts savings to exceed 1 trillion in 2007

Guardian Unlimited: Savings set to peak as Britons shun extra debt

Martin Ellis, Chief economist at HBOS predicts that people will be saving 6.2% of their disposable income this year, and house prices will only increase by 4%. He claims that "Households are rediscovering the savings habit".

Posted by jellycaster @ 11:20 AM 16 Comments

The party is over but BTLers are buy-and-holders

Telegraph: New buy-to-let investors face profit crunch

"The booming buy-to-let market continues to attract inexperienced investors despite the rental yields available to new landlords slumping to a five-year low." Nothing we've haven't read here before (double negatives, ouch!) other than that "only about one in 50 said they would sell if house prices were to fall." Given the boundless enthusiasm in this sector it doesn't look like the often touted "rush for the exits" is going to happen anytime soon.

Posted by monty @ 09:13 AM 25 Comments

Tuesday, January 9, 2007

BBC: "price of a loaf of bread"

BBC Online: Why is the price of bread important?

Anodyne and content-free, though it does point out the price of bread should affect the CPI. Some reader comments are stinging - more headline material than the article itself!

Posted by dohousescrashinthewoods @ 06:05 PM 1 Comments

FSA ask for improvement in mortgage advice

Firstrung: FSA says firms need to improve mortgage advice processes

The Financial Services Authority (FSA) today called on firms giving mortgage advice to improve their processes after new findings showed that only one third of the firms it sampled had robust processes in place to provide customers with suitable advice...The Financial Services Authority (FSA) today called on firms giving mortgage advice to improve their processes after new findings showed that only one third of the firms it sampled had robust processes in place to provide customers with suitable advice.

Posted by converted lurker @ 12:45 AM 1 Comments

Buy to let 'rules' ripped up

Firstrung: Buy to let mortgage gauntlet thrown down by GMAC-RFC

GMAC-RFC has unveiled a new buy-to-let tracker that it predicts will force other lenders to compete, or risk losing market share. The lending giant has launched the product in response to the widening gap between purchase prices and achievable rents, which GMAC-RFC says is increasingly becoming a problem for landlords. The buy-to-let product offers investors a lower rate of interest than competitors and existing products in the market, and requires 27% less rental income enabling the landlord to purchase or remortgage more properties with GMAC-RFC.

Posted by converted lurker @ 12:42 AM 15 Comments

Monday, January 8, 2007

Is it starting to go?????

FT.com: Property agent calls top of house market

A leading estate agent has called the top of the property market, claiming an influx of sellers "motivated by greed" is increasing the supply of homes for sale and creating a vicious circle that will send prices lower in 2007.

Posted by rich benton @ 04:34 PM 8 Comments

I just wanted to post this article for this wonderful quote,

FT: Just a note to say: can I buy your house?

"On the other hand, leafleters may be wise to try and bypass estate agents, who only act in the sellers interest, not the buyers."

Posted by sam @ 01:39 PM 4 Comments

Prices not 'chickening' out in Kiev! Groan...I'll get my own coat

Firstrung: Kiev property - "House price bubble? Of course it's a bubble! Who is buying these places?" - Moneyweek

One estate agent in the BBC piece says that she bought a flat for $30,000 three years ago, and it's now worth "up to $200,000". Well, she would say that wouldn't she? She's trying to sell flats to nave foreign investors who think that they too will be able to make seven times their money in three years. My initial reaction is, that if the average salary in the region is $2,400, then why hasn't she sold her great investment flat and retired? It's these kind of stories that show the unsustainable hysteria that lies beneath the global property boom. When you hear of properties in Kiev going for 100 times average earnings, that's when you start to think about the triple-digit p/es of the dotcom bubble era.

Posted by converted lurker @ 11:23 AM 20 Comments

2007 - Year of the Brown?

Times Online: Can Brown bring feelgood factor?

Will the transistion of Gordon Brown to the seat of power be smoothed by favourable economic conditions? Despite seemingly sustainable high levels of growth in the economy, the national is hardly eurphoric, as the tax bill is higher than ever, leaving us with less money in our pockets at the end of the month.

Posted by jellycaster @ 10:54 AM 4 Comments

49 out of 50 economists say no IR rise in January

FT.com: Rise in rates this month unlikely, say economists

In a poll conducted by Reuters, only one out of fifty economists believe the Monetary Policy Commitee will raise interest rates above 5% when their meeting ends on Thursday. This conflicts with the financial markets view, which have already priced in a quater point increase.

Posted by jellycaster @ 10:48 AM 13 Comments

Recommended - The argument for a land value tax

The Guardian: A land tax is 200 years overdue

Ashley Seager assesses the socio-economic impact of sustained house price increases. He argues that this reinforces the idea of an 'underclass' as they are unable to take advantage of this mechanism to create wealth. As land increases in value, therefore, these gains should be taxed, which will enable the government to reduce council tax or VAT, and discourage speculation from property developers.

Posted by jellycaster @ 10:42 AM 12 Comments

Cowboys regulating cowboys

TimesOnline: Self-appointed debt watchdog under fire

A cowboy organisation declares itself regulator for the booming IVA market. I would find it difficult to make this up. One nurse from Sheffield, 50,000 in debt, accused a named firm of taking a 500 fee she could ill afford just to refer her to another firm. A Merseyside manager 93,000 in debt said she felt let down and ripped off after paying out a non-refundable 1,566 and failing to get an IVA.

Posted by denzil @ 10:25 AM 4 Comments

Pay deals show true inflation

BBC News: Pay settlements 'on the increase'

New pay deals are increasing because of pressure from rising inflation, a survey has suggested. Incomes Data Services (IDS) said its first snapshot survey of the year put wage settlements at about 4%, up from 3% in the last three months of 2006.

Posted by harold @ 09:56 AM 4 Comments

Sunday, January 7, 2007

New car registrations drop

ABC Money: New car registrations in Britain drop in December

New car registrations in the U.K. slump 14.7 per cent in December compared with December of 2005, various excuses are given which down hold water when the rest of the article is read. Is everyone mewed out, can't wait for January's figures as new car sales are always a good indication of how flush people feel.

Posted by enuii @ 07:56 PM 2 Comments

Good explanation of why HPI is rising

The Telegraph: Supply and demand keeps house prices bubbling away

Wrong measure of affordability and demand exceeding supply are reasons for no crash yet.

Posted by sold 2 rent 1 @ 11:51 AM 34 Comments

banks are fanning the housing market

The Telegraph: Do you know who owns your mortgage?

The housing boom needs a ready stream of cheap credit and the banks are increasingly selling mortgage-backed bonds to supply it, says Iain Dey

Posted by sold 2 rent 1 @ 11:37 AM 6 Comments

The great mortgage securitisation boom. A scandal in the making?l

Sunday Telegraph: Do you know who owns your mortgage?

underpinning thie boom in Britain's housing market is a different, more ethereal phenomenon. Increasingly, Britain's lenders are selling off residential mortgages to the capital markets and they are doing so by the thousand. Last year British mortgages worth more than 90bn were sold off through securitisation vehicles to investors across the globe, according to Citigroup, the banking giant. The figure has almost doubled in the past 12 months.

Posted by archie @ 10:19 AM 0 Comments

Sunday snooze: Lessons from the past for the future

GoldSeek: Fiat Money: History Repeats Itself

Fun blog article that places paper money in a historical context and looks at the economic conditions in France before the revolution... maybe our bankers will be for the chop too (we can dream).

Posted by harold @ 10:16 AM 3 Comments

Russian money adds to house price increases

Sunday Telegraph: UK's remote counties face a Russian invasion

They already own some of Britain's biggest football clubs and swathes of west London's most desirable properties. But now it seems that wealthy Russians think nothing of spending millions of pounds on holiday homes in some of the country's most remote and beautiful regions.

Posted by archie @ 10:13 AM 0 Comments

Food price inflation rising fast

Observer: On the breadline: Britons to pay 1 a loaf... and rising

Gerard Lyons, chief economist at the Standard Chartered Bank, said the rising cost of wheat, as well as corn, sugar and soya beans, could help raise the inflation rate and the cost of food generally. 'Intense competition has been keeping inflation down... But those rises are adding to inflation jitters. The Bank of England has already expressed concern.'........

Posted by archie @ 10:07 AM 2 Comments

The Blairs about to sell up?

Firstrung: Could the Blairs net 1 mil profit selling their Connaught Square investment?

Interesting article courtesy of This is London, however, the Blairs bought number 29, No. 27 sold for 3.25mil 5 months ago according to houseprices.co.uk. Now here's a thing, the Blairs' purchase does not show on the Land Registry database. Can anyone else visualise various New Labour mandarins busily crafting this latest piece of spin in order to help the Blairs vacate their disastrous investment without leaving too much egg on their faces? Expect to see a sale in the summer at an undisclosed price...

Posted by converted lurker @ 01:49 AM 0 Comments

Saturday, January 6, 2007

Top estate agent predicts downturn for house prices

FT.com: Property agent calls top of house market

Henry Pryor, whose website prime-move.co.uk lists 800,000 properties, has predicted that the 4th quarter of 2006 will be the peak of the housing market. Motivated by high prices, people are taking the opportunity to 'cash in their chips', increased the supply of empty housing stock.

Posted by jellycaster @ 11:27 AM 6 Comments

Inflationary concerns for the Fed

Times Online: Booming growth in American jobs raises new inflation fears

167,000 jobs were created in the US in December, more than at any point throughout 2007. This has increased fears that inflation will rise and an interest rate rise will become inevitable. The Dow Jones fell 90 points on this uncertainty.

Posted by jellycaster @ 11:21 AM 1 Comments

Land registry figures for November

Yorkshire Post: House prices still rising

Figures just released by the Land Registry show a 0.6% increase in house prices during November. This is a smaller month on month increase than throughout the rest of the year. There is significant regional variation within these stats, such as the 2% increase experienced in the Midlands, and the 1% decrease experienced in Yorkshire and London.

Posted by jellycaster @ 11:16 AM 0 Comments

Halifax figures show house prices decrease in December

Telegraph: House prices decline in December

Figures from the Halifax show a 1% month on month decrease (yes, that's right, decrease) in the average house price. Analysts are reluctant to see this as a clear indication that the housing market is starting to slow, although allied with the figures concerning affordability released this week, they could prove prophetic.

Posted by jellycaster @ 11:11 AM 0 Comments

Agent swimming against the tide

Firstrung: Take a bow Henry Pryor - Primemove.com's charasmatic C.E.O.

Henry has caused quite a stir this week, and justifiably so. How dare he swim against the tide in the mainstream media and actually suggest that all is not well in a housing market that needs eight times average income to afford the average property...Nice work Henry, when the tide finally goes out on house price inflation Firstrung tip Henry's words this week to become quite prophetic ...

Posted by converted lurker @ 12:35 AM 1 Comments

Without parental help FTBs would be extinct

Firstrung: First time buyers aided by four million parents to climb onto the 'first-rung'

The average house price in the UK in October 2006 for first time buyers now stands at 153,083 which is an annual increase of 8.5%. First-time buyer income multiples in October were 3.27 times the average income, according to the Council of Mortgage Lenders (CML). The average new mortgage for first time buyers has now reached 111,465. The average age of a first-time buyer is 29.

Posted by converted lurker @ 12:33 AM 0 Comments

Friday, January 5, 2007

Firstrung Reports House price crash predicted within 18 months

Firstrung.co.uk: House price crash predicted by 24% of UK adults within 18 months

The first cracks in Britain's personal debt laden economy were revealed today as debt solutions consultancy, Thomas Charles announced a widespread lack of faith in the stability of the UK housing market.

Posted by enuii @ 11:45 PM 0 Comments

Soft landing for US economy

FT.com: Fears of US slowdown recede

US Employers created 167,000 jobs in December, the most of 2006, allaying fears of a receding US economy and strengthening the dollar. The figures suggest the Fed will be unlikely to reduce interest rates next month.

Posted by jellycaster @ 06:06 PM 6 Comments

Blancheflower - Immigrants keep down wage inflation

The Herald: Immigrant labour good for economy

David Blancheflower, the US based academic who sits on the bank of England's Monetary Policy Committee, has published a paper arguing that immigrants are good for the UK economy and are vital to keeping down wage and price inflation.

Posted by jellycaster @ 06:01 PM 5 Comments

'Rude health' of housing market and growth in service sector makes IR rise inevitable

Scotsman: Strong data supports case for Feb rate hike

The financial markets have already priced in a interest rate rise to 5.25% in February, according to this Reuters item. This will take interets rates to their highest level since 2001

Posted by jellycaster @ 05:50 PM 0 Comments

Inflation figure questioned

Daily Telegraph: Official: Inflation Figure isn't trusted

The govt's top statistician admits inflation figures are not widely believed. More evidence of an underlying shift in opinion.

Posted by the eg @ 02:30 PM 3 Comments

Relying on an immigrant worforce to pay that BTL mortgage? Think again

Firstrung: The impact of recent migration from Eastern Europe on the UK economy

Plenty of myths exploded in this piece of research, particularly in relation to the overall impact migrant workers have on the UK economy...

Posted by converted lurker @ 10:57 AM 0 Comments

Is the 1% fall a surprise? Or well timed?

Firstrung: Halifax stun market showing one percent fall in house prices in December 2006

Yeah but no but..."The number of people in employment continues to rise with a 216,000 increase over the past year to a record 29.0 million in the three months to October, according to the ONS. The number of people in full-time employment, however, fell by 93,000 between the three months to July and the following quarter, suggesting a possible weakening in labour market conditions."...and readers wonder why some don't tae these surveys seriously..

Posted by converted lurker @ 10:52 AM 8 Comments

Office of Notional Statistics Reality Check

Indy Online: Website will allow you to calculate your own personal rate of inflation

The Office for National Statistics (ONS), a Treasury agency, will later this month unveil an online "personal calculator" that will allow people to see if their own inflation is higher or lower than the national average. Nothing here is new but the interest is within the ONS' comments. Given it is an online database, the ONS could capture and average the personal inflation rate of everyone who uses it. I wonder if they will - and if so, will they publish the results?

Posted by talking rot @ 10:45 AM 2 Comments

Oh no...

TimesOnline: Shock December house price dip

Perversely I don't really want prices to drop anymore - I want them to keep going until they suffocate in the rareified atmosphere (along with the army of amateur landlords). Halifax today reported that house prices fell by 1 per cent in December. The bank's chief economist Martin Ellis said the fall could be an early sign of market slowdown. "This could be a first indication that the interest rate rises we've seen have had an effect," he said

Posted by tyrellcorporation @ 10:28 AM 10 Comments

1% House Price Fall - Halifax Report

Guardian Online (this morning): Surprise Drop in House Prices

Halifax prices posted a 1% drop last month

Posted by wsn03 @ 09:47 AM 0 Comments

House prices fall

Guardian: House prices fall

Halifax said that house prices actually fell last month by 1%, the first decline since June last year

Posted by jonjo @ 09:20 AM 0 Comments

House prices fall 1% in December

Reuters: House prices fall 1% in December

House prices fell 1.0 percent last month, taking the annual rate to 9.9 percent, a Halifax survey showed on Friday. Last month the Halifax said prices rose 1.7 percent in November for an annual three-month rate of 9.6 percent. The nation's largest mortgage lender said the cost of an average home fell to 186,035 pounds in December.

Posted by blueangel @ 09:18 AM 0 Comments

NHS scandal as 37,000 jobs go

Daily Express: NHS scandal as 37,000 jobs go

37000 Jobs are predicted to be lost in the NHS this year as the Government desperately seeks to lower the NHS wages bill with a 2.7 per cent cut in the workforce.

Posted by jonjo @ 08:47 AM 0 Comments

Thursday, January 4, 2007

9.8bn lent in mortgages in Nov !!

BBC News: Mortgage deals near 3-year high

UK mortgage approvals have climbed to their highest level in almost 3 years, BoE figures show.

Posted by nearly30 @ 07:39 PM 5 Comments

Big Boom or a Potential Big Bust?

FT.com: Boom for UK service sector jobs

UK service sector highest pace growth in 2006 since 1997. A celebration or a crisis - esp. if there's a Global slowdown?

Posted by nearly30 @ 07:35 PM 0 Comments

Property Investment Funds

FT.com: Investors urged to diversify away from property

"Property funds look set to become one of the most favoured destinations for investors money in 2007 following a bumper year in 2006, financial advisers predict." From a few days back this, but not posted. Note the bit about Japanese equities down at the bottom: "In the same poll last January, scores of fund managers predicted the performance of the equity market in Japan would surpass that of all other parts of the world. " However...

Posted by garch @ 12:12 PM 1 Comments

Changing tide: Property price panic

Daily Mail: Property price panic

I don't trust the Mail or EA's, but the sentiment of the article looks promising: "The first signs of panic in the property market were reported today by a leading estate agent. Henry Pryor, founder of one of the UK's biggest property websites, says a rush of sellers among home owners who believe the boom has passed its peak is threatening to produce a glut that will push prices down."

Posted by millard @ 12:00 PM 21 Comments

Nationwide quarterly report

Firstrung: House price growth accelerates across all UK regions in final quarter - Nationwide

Commenting on the figures Fionnuala Earley, Nationwide's Group Economist, said: "Stronger house price growth across the whole of the UK pushed the annual rate of house price inflation in the UK up to 9.3% in Q4 2006. This represents a 40 increase per day and pushed the price of a typical house up to 172,065. The top three performers in the final quarter of the year were Northern Ireland, Scotland and London, but even the relatively weaker regions in the Midlands and North have seen a strong pick up in house price inflation this quarter.

Posted by converted lurker @ 11:33 AM 5 Comments

Inflation rising, output falling. Looks like stagflation.

BBC News: Fed hints at future rate increase

In a statement accompanying its rates decision last month, the Fed left the door open for further rises to rein in inflation should it be needed. "Several members judged that the subdued tone of some incoming indicators meant that the downside risks to economic growth in the near term had increased a little and become a bit more broadly based than previously thought," minutes of the meeting showed. "Nonetheless, all members agreed that the risk that inflation would fail to moderate as desired remained the predominant concern."

Posted by archie @ 09:36 AM 1 Comments

Wednesday, January 3, 2007

There will be less spending, but a healthy economy, in 2007

Yorkshire Post: Confident outlook for conditions in the year ahead

2007 will see reduced consumer spending due to relatively high (and possibly increasing) interest rates and high energy costs. This will bring inflation back to expected levels by the middle of the year. However, the UK will sustain economic growth due to a growing labour force.

Posted by jellycaster @ 10:26 PM 0 Comments

A reduction in house prices is likely in the coming years

Telegraph: Overvalued house prices threaten crash

Morgan Stanley and PriceWaterhouseCoopers says there is a good chance house prices will reduce sharply as homes become increasingly less affordable for first time buyers.

Posted by jellycaster @ 10:17 PM 6 Comments

Music Zone enters administration

BBC News: Music Zone enters administration

CD and DVD retailer Music Zone has gone into administration.

Posted by surfgatinho @ 05:28 PM 0 Comments

Recognition of the state of the UK's economy.

Brown 'faces worst mess for decades': Telegraph Online

Ha Ha Ha. Brown's pigeons are coming home to roost. Professor Smith, who chairs the independent Shadow Monetary Policy Committee and was formerly chief economist at Williams de Broe, believes IRs could be 6.25% by 2008. Ho Ho Ho. Hah Hah Hah.

Posted by talking rot @ 12:43 PM 39 Comments

First time buyer plan from the 'Landed Gentry'

Firstrung: They have a dream, Tories hope to help first time buyers and bring down the barriers to home ownership

Was it just the Firstrung team that were slow to spot the obvious similarities between David Cameron and Martin Luther King in their life long persuit for social justice and civil rights...? What follows is a party political broadcast from the Conservative party

Posted by converted lurker @ 11:14 AM 4 Comments

Property shortage, what property shortgage?

Firstrung: At least 700,000 vacant dwellings in the UK each year since 2001

The Firstrung team missed this item in the 'Xmas rush' on news, however, it's worth noting now the objections raised by the Lib Dems in relation to the vast swathes of vacant housing in the U.K. Property shortage, what property shortage?

Posted by converted lurker @ 11:10 AM 3 Comments

Debt chickens come home to roost

BBC News: Insolvency risk from festive debt

Overspending over the festive period will force 10,000 people to declare themselves insolvent in the next few months, say accountants Grant Thornton. The firm predicts that before April, there will be 30,000 personal insolvencies in the UK. It blames the increasing trend on greater borrowing and spending, higher interest rates and big utility bills.....

Posted by archie @ 09:55 AM 0 Comments

Tuesday, January 2, 2007

Tory Peasant Plan to Help FTBs

Telegraph: Tory plan 'can give new hope to first-time buyers'

The Conservatives will unveil an affordable housing scheme today which borrows from the ideas of the Levellers, the C17th English socialists, and Martin Luther King.

Posted by nearly30 @ 07:39 PM 14 Comments

South West popular destination for UK migrants

The Telegraph: Heading South West for the good life

Research by the Halifax shows that the South West has received the largest net migration over the last 10 years, boosting its population by 300,000. This has helped to push house prices ever higher.

Posted by jellycaster @ 06:03 PM 0 Comments

Housing Affordability Crisis

Guardian: House prices 'in danger zone'

A Lombard Street Research study suggests that homes are at their most overvalued since the crisis of the early 90s. The UK Housing Affordability Index, is at 94.3 (against a post 1962 average of 100), the lowest since 1991.

Posted by jellycaster @ 05:33 PM 3 Comments

Guardian's coverage of land registry figures

Guardian: House prices growth cools

House price growth at current levels is sustainable - despite a slight drop towards the end of 06. Prices in London dropped .6%, and 1.5% in Yorkshire and Humber.

Posted by jellycaster @ 05:26 PM 0 Comments

Bearish news from BBC?

BBC News: House price growth 'easing off'

The rise in house prices eased off towards the end of 2006, says the Land Registry for England and Wales.

Posted by kpjcomp @ 01:13 PM 3 Comments

Houses Most Overvalued in 15 Years

This is Money: Houses Most Overvalued in 15 Years

Obvious really but afordability is down.. and Mervyn King, the Bank of England's governor, said last May: 'Relative to average earnings or incomes, or anything else you could look at, house prices do seem remarkably high.'

Posted by hyrax @ 11:34 AM 0 Comments

Gird your loins!

Telegraph: Experts on stand-by for Black Tuesday

New Year hangovers have faded and the last of the Christmas turkey has been dispatched. But the true cost of this year's festive battle has yet to be counted. And the reckoning begins today "Black Tuesday". As Britain returns to work after a fortnight of excess and enforced intimacy, armies of bank managers, divorce lawyers, debt counsellors, addiction experts, life coaches and car mechanics are braced to deal with the fall-out.

Posted by tyrellcorporation @ 10:28 AM 0 Comments

Could we see a flood of 'bad news' headlines in Jan?

Telegraph: Overvalued house prices threaten crash

House prices are at their most overvalued for 15 years, new figures showed yesterday, as hard-pressed home-owners struggle to pay their mortgages. And with the gloomy prospect of a record tax burden and unprecedented rises in household bills comes a warning that interest rates could rise by far more than expected. Morgan Stanley and PriceWaterhouseCoopers warn there is a high chance of a severe fall in house prices in the coming years A study commissioned by The Daily Telegraph shows that house prices are moving well beyond the reach of many families as the rapid growth in property values outpaces increases in incomes.

Posted by tyrellcorporation @ 10:26 AM 9 Comments

Overvalued house prices threaten crash

Telegraph: Overvalued house prices threaten crash

Overvalued house prices threaten crash By Edmund Conway, Economics Editor Last Updated: 2:25am GMT 02/01/2007 Comment on this story Read comments House prices are at their most overvalued for 15 years, new figures showed yesterday, as hard-pressed home-owners struggle to pay their mortgages. And with the gloomy prospect of a record tax burden and unprecedented rises in household bills comes a warning that interest rates could rise by far more than expected. Morgan Stanley and PriceWaterhouseCoopers warn there is a high chance of a severe fall in house prices in the coming years A study commissioned by The Daily Telegraph shows that house prices are moving well beyond the reach of many families as the rapid growth in property values outpaces increases in incomes. The Daily Telegraph/Lombard Street Research Housing Affordability Index shows that they are more overvalued than at any time since 1991 when prices were plunging after the last major slide

Posted by cash_buyer @ 10:21 AM 0 Comments

Hard times ahead for the UK economy

Daily Telegraph: Prospects for 2007

Mark Berrisford-Smith, Senior economist, HSBC: Consumers are coming under pressure from rising unemployment, higher taxation, the surge in fuel bills and the ever-growing mountain of debt. Households now owe more than 1.2 trillion, double the level of six years ago, and a fifth more than in 2003 when the Bank of England last tightened the interest rate screw. Under these circumstances, even the two rate rises of recent months will be enough to sap people's appetite for spending. Further interest rate rises cannot be ruled out......

Posted by archie @ 10:01 AM 0 Comments

The End is Nigh

Edmond Conway: The Telegraph

The great property boom is heading for the gallows, its face looks disbelieving and confused - almost detached from reality. But when the trap doors open with a deafening clatter there is only one direction it can go and this dictator of greed will never raise its ugly head again - atleast not until all memory is raised.10 years?

Posted by cheeky charlie @ 12:03 AM 0 Comments

Monday, January 1, 2007

Business Failures Up 10.7% in 06

Experian: Predictions for rising insolvency ring true

Bad news for our services industry. The largest number of failures in a single sector was in Business Services - up 24.6%

Posted by nearly30 @ 01:21 PM 4 Comments

London, another record breaking year?

Firstrung: Will London house prices will continue to go 'through the roof' in 2007?

As Britain continues to attract major foreign investment - including for takeover of British companies by overseas investors - new millionaires from India, China and other parts of the world are driving property prices in London.

Posted by converted lurker @ 12:55 PM 0 Comments

Were house prices static in 2006?

Firstrung: How much did house prices rise by in 2006?

Unashamedly Firstrung have always suggested keeping a 'weather-eye' on: Land Reg figures, Home.co.uk and Hometrack. Not because these organisations are lower in their calculation of the real house price inflation the UK has experienced over the past twelve months, moreover due to their method of calculation which is altogether more realistic than perhaps Halifax, Nationwide and Rightmove.

Posted by converted lurker @ 12:48 PM 1 Comments

The South East was the most popular destination for people to move to with 2.25 million arrivals

Firstrung: South west gets biggest boost from internal migration over past decade

New research from Halifax shows that the South West has recorded the largest net gain from internal migration of any of the UK's 12 regions over the past ten years. Over 300,000 more people have moved to the South West from elsewhere in the UK than have left to live in another region, boosting the region's population by 6%

Posted by converted lurker @ 12:46 PM 0 Comments

Main Blog | Archive | Add Article | Blog Policies