Thursday, March 6, 2008

Stuartz most desperate and comical Assetz plea yet

Rate decision ignores homeowner distress warns property industry

The Bank of England’s decision to leave rates unchanged offers little relief to homebuyers, housing commentators have warned. The decision to leave rates at 5.25% during March was delivered on the same day as Halifax figures showing that house prices fell a further 0.3% in February. Stuart Law of property investment company Assetz said that the bank’s monetary policy committee (MPC) failed to appreciate the depth of homeowners’ financial difficulties.

Posted by jack c @ 04:46 PM (1880 views)
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22 thoughts on “Stuartz most desperate and comical Assetz plea yet

  • “…(MPC) failed to appreciate the depth of homeowners’ financial difficulties”

    And Stuart Lawzzzz fails to appreciate the remit of the MPC is not to make the lives of greedy selfish BTL speculative scum as easy as possible. The idiot.

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  • The quote should read;

    Stuart Law of property investment company Assetz said that the bank’s monetary policy committee (MPC) failed to appreciate the depth of HIS financial difficulties.

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  • it_is_going_with_a_bang says:

    Headline should actually read:
    “Rate Decision ignores property industry distress – warns the property industry”

    Hold on everyone lets run the whole country from now on so that anyone involved in property can have a jolly good time. Not.
    Stuart Law bla bla bla. 0.5 %. He’s beginning to sound desperate now.

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  • Perhaps Stuatz comments are as a result of him having today read the following

    “A survey from the Royal Institution of Chartered Surveyors (RICS) has revealed that the buy-to-let housing boom may be about to stall, with the number of new instructions from landlords falling towards the end of 2007, the first time since 1998. RICS attributes recent restrictions on mortgage lending to potential landlords. “Access to the buy-to-let market became harder for would-be landlords as mortgage products became scarce,” said the RICS. “One per cent more chartered surveyors reported a fall than a rise in landlord instructions in the last three months of 2007, compared with the previous quarter.” – this is on the BBC site as well as moneyfacts.

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  • Its not just him, the whole mortgage “industry” thinks the MPC’s job is to stop house prices falling.

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  • justwatching says:

    Interest rates are historically low, people have binged on debt. Now the problems begin. Debt saturation. Banks are tightening the purse strings (well we did try to prevent people borrowing too much etc).
    One issue not discussed a lot is the poor fookers on interest only mortgages. Capital repayments must be huge. What happens when the interest only option goes. Oh dear.
    I do not think Stuart will get caught out in the fall out. He probably sold last summer.

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  • Dazednconfused says:

    Why does that man get any time from anyone? We are used to Vested Interests getting a say, but he is clearly an absolute raving lunatic with no understanding of the world. I wonder if her passes rate cuts on to his tenants so they can cope with the spiralling food/energy inflation? Let me see…

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  • This behaviour is totally out of kilter with his ridiculuos predictions earlier this year. Maybe his BS has reached such astronomic levels, even he has stopped believing it.

    What a complete and utter clown.

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  • Mervin_king says:

    STUART LAW: ..”We are again seeing a tightening up in the credit markets and action today was much needed. I would strongly urge the MPC to agree a full 0.5% drop at next month’s meeting.”

    MERVIN: …”oh, since Stuart so strongly urges us to make a 0.5% cut next month, then perhaps I should have a quick word with the MPC over our Steak Ta Ta tonight and put his views to them! After all Stuart Law and his company are very important person in the grand scheme of the British economy! If we don´t aggressively cut interest rates soon, poor Stuart will be flogging a dead Asset!

    🙂

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  • Landedgentry says:

    Funny guy. He really needs to accept that the gains he or his company has made over the last decade or so now have to taken back by the market.

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  • Hang on, one minute everything is rosy and there’s never been a better time to buy a house. The next, we need interest rate cuts to help the market.

    Which is it Mr Law?

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  • shipbuilder says:

    But sure Stuart’s just been telling us that everything is rosy, fundamentals sound, good time to buy BTL etc. etc., so what’s this about the depth of homeowner’s difficulties?

    C’mon Stuart – we know you read this site and have a log in – give us an explanation, then.

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  • Hi Chaps

    Another google alert, another Houseprice crash blog.

    I didnt say “the bank’s monetary policy committee (MPC) failed to appreciate the depth of homeowners’ financial difficulties” – it isnt in quotes and isnt in my press release. Dave Campbell interpreted my actual quotes that he then prints verbatim further down.

    Our quoted comments are about the economy rather than just mortgage payers as such and it is about the fact finance is more expensive than it used to be for many, more the poor credit segment than prime-credit. BTL mortgages are now cheaper than homeowner mortgages like for like as they are better average credit risk and lower defaults %. Base rates need to fall quite a bit further to get actual payable rates down to where they should be for buisnesses and property owners to prevent an economic downturn.

    Read the RICS release carefully – not the press interpretation of the release – the RICS data is particularly crypic (net balance of surveyors think…) and confuses most journalists (just like the difference between absolute data vs rate of change versu rate of change of rate of change does). The report is very bullish for BTL in every sense and even the part the press said was negative was actually a statement that new letting instructions from landlords near enough unchanged. Is unchanged badly negative ? I think not. Every other statement was great news for landlords.

    Remember my previous advice – buy now from auction before the chance goes later in the year if you are serious about getting on the houing ladder. Even your most negative predictions on house price falls on this forum dont get near some of the occaisional bargains at auction – why are you waiting ?

    Anyway that’s enough from a train journey.

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  • Stuart – do you not see that it makes sod all difference what the BoE do to the base rate as the lenders have simply increased their rates already to cover any base rate drops. The ONLY thing that will happen if the BoE drop the rates in the future is sterling will drop and inflation, the BoE’s only remit (beautifully reinforced by Trichet this afternoon), will sky rocket, forcing the BoE to raise rates sharply in the future.

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  • crash bandicoot says:

    What’s he worried about, last week he told us that house prices were going up by 5% this year. How are homeowners in financial dfficulties if their house is going to rise in price………….Oh, I get it now, he doesn’t know what he’s talking about.

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  • IO’s that rely on 2x good incomes, just to keep up interest payements is scary, nice thing about the good old fashioned repayment, is if you get in trouble you can switch to IO and lower you out goings/ or extend ther term.. to reduce your risk of losing your home, until things pick up.

    IO at 4x joint salary IS the UK’s sub-prime, and 30% of all lending based in the last 5 years based on IO’s with no repayment plan

    You probably can’t get one now and if you can I would shy away from any lenders whose risk model still see’s them as viable.

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  • Genuinely Interested says:

    i’d love to know who his PR agency are. they are awesome. everytime he farts out of his flappy little mouth – he gets column inches.

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  • Stuart,

    Even a stopped clock is right twice a day. The financial markets reward people for being in the right place at the right time, reward for actual skill is very rare. You are clearly emotionally involved with the property market – anyone can see that from the first words of any statement you have ever made.

    Your clock is now wrong. You are no longer in the right place, and it is no longer the right time. Your emotional cognitive dissonance is persuading you to justify why you were right, rather than why you now might be wrong.

    God speed the FSA regulating people like you giving investment advice. You would be issued with a Section 56 Prohibition Order before you could finish the phrase “bullish for BTL in every sense “.

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  • new user 2007 says:

    The usual Mr ASSetz line…

    2007…”you heard it here first, rates will collapse in 2008″ so drive the housing market up (they would only fall amid the evident high inflation if the economy is crashing, so how would the housing market move up?).

    NOW, “the BoE must cut because we are all doomed” BUT the housing market will be fine”, so PLEASE continue yo buy my products.

    Ignoring the fact that cuts have not been passed on by lenders anyway (and that the BoE’s ONLY remit is inflation), I thought the huge shortage meant prices could not go down so why the worry?

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  • new user 2007 says:

    p.s. even CityWire thinks he is an extremist:)

    “Others adopted a more moderate line however”

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  • new user 2007 says:

    As for ASSetz defence above….

    In addition to what I have already said. The BoE has access to more data on the broader economy and has to take into account far more variables than his little world. I had not even heard of this guy until the crisis. Funny how he did not think that when LIBOR rates were below the BoE rate that the BoE should have raised further.

    Is the credit crunch moving credit markets and the economy to below potential? OR did the credit boom move credit markets and the economy above potential? I think the crunch is taking us to where we should be, with, as with any bubble, a swing below where it should be as markets are in a blind panic (just as they swung above in blind euphoria).

    Rental income for anyone who bought BTL in the last 3 years (i.e. the bulk of BTL) is well below the total costs, even when the market is merely stagnating i.e they are making losses via 1) higher rates than 2-3 years and 2) no offset of capital appreciation. The evidence from both experience and the FT is clearly no gains from now on at best.

    Others may make up figures to talk up the market, but the evidence remains that costs are greater than income i.e. a loss. As for the RICs report…it was indeed broadly positive (it is based on confidence and anecdotal evidence and not facts) BUT they refer to the market being good for established landlords i.e. more than 2 years? New BTL would not do well.

    Markets move at the margin i.e. 5% of BTL or homeowners would start the downward spiral. That is how markets work. If no new money comes in (forget going out of the market), markets can (and usually do) fall. We are only now entering the downturn. The last 6 months was just the warm up.

    Look at the Weekend FT. The BTL rates are similar to those available to everyone else. The differences in terms of bargains are seen via the deposit levels and income multiples. I am sure BTL can get better rates by using higher equity levels BUT that also leaves them more vulnerable.

    Default rates were low as times were good. Corporate bonds had low default rates not because the companies were good, but because they could find buyers at levels where debt was virtually free. Lets see how sustainable BTL and corporate investments are in the sustainable rate level era (are you denying rates are higher than 2 years ago fro everyone?).

    Northern Rock was a major BTL player. You should let them know that their book is very good with low defaults…that did not stop what happened when confidence went:) Now I will return to doing something useful for the economy, as opposed to certain people’s roles.

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  • new user 2007 says:

    “I am sure BTL can get better rates by using higher equity levels BUT that also leaves them more vulnerable.”…

    more vulnerable as they had then reduced their equity in the last property while adding to their debt stock.

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