June 2008 Archive

Monday, June 30, 2008

Going down - faster than ever before

Daily Telegraph: UK house prices in grip of slump that experts expect to deepen

An article describing everybodys views that this crash is faster, deeper and more structural than any before it - so say the estate agents. I can't say I'm surprised. It takes milliseconds to go around the internet, and anyone buying will be second-guessing every day. If you've not exchanged and don't need to - why should you? You WILL gain purchasing power by waiting - or more clearly - you will LOSE money if you buy anytime soon.

Posted by growler @ 10:40 PM 9 Comments

More spin suggesting now as a good time for FTB to jump in

The Bath Chronicle: Credit Crunch 'Could Help First-Time Buyers on to Ladder'

There is the usual bluster that things are different this time as IRs are lower and employment is lower. But I am heartened by the admission by the surveyor Stephen Morris of 10-15% falls since their peak last year. Even the worst statistics from the lenders don't reflect that (yet). More worryingly, it says of Richard Pullin, of Pullin Knight "His firm has teamed up with mortgage broker Network Mortgages to launch the Gifted Deposit Scheme, in which vendors can opt to pay up to five per cent of their buyer's deposit." Is this not identical to the allegedly fraudulent incentives offered by big property developers? Does it not amount to a 100% mortgage that the lender would be most interested in hearing about in these days of strict lending criteria?

Posted by s2rjul07 @ 10:16 PM 3 Comments

How Low Can You Go

Telegraph: Lloyds TSB gives Visa cards to 11-year-olds

Lloyds TSB is sending the cards directly to children as young as 11 without informing their parents, raising fears that they are being used to buy cigarettes, alcohol and pornography over the internet. The cards are Visa-enabled and can be used any time a Visa sign is displayed.

Posted by yoyo1 @ 10:00 PM 13 Comments

BTL is UK's subprime

BBC World service: Analysis

All bubbles eventyually burst and when they burst there is lot of pain Highest debt consumer debt level in western world 30% fall on aution prices IMF says UK market is 30% over valued FTB buying now will be in negative equity High home ownership 80%. All counteries having high home ownership is having high falls 3rd most overvalued housing stock after Ireland and Netherlands Debt binge in the last 20 years. and we will pay for next 10-20 years BTL is UK's subprime. City centre and holiday homes loosing values fastest Cheap credit is over. No more 100% mortgages Higher interest rate and more deposit. Million people paid mortgage on credit card Etc. Etc

Posted by deepak @ 09:17 PM 2 Comments

Here it comes - the final nail!

Telegraph: Trinity Mirror points to weakening jobs market

'For the first six months of the year, recruitment advertising was down 8.4pc in the regionals division, whose titles include the Birmingham Post and Newcastle's Evening Chronicle. Spool back to the first four months of the year, and recruitment fell just 1.7pc, suggesting a marked decline in May and June.' Here it comes, the final nail in the coffin!

Posted by waiting for the crash @ 07:58 PM 0 Comments

Sub-Prime UK , a painful article

Bloomberg: Hadrian's Town Becomes `Slum' as Subprime Infects North England

Paul Quinn stands among furniture piled in a second-hand store in Wallsend, a town in northeast England where about half of mortgages are subprime. Demand for the chipped tables and cupboards is accelerating, he says. ``One time you couldn't sell, and now they're all buying,'' said Quinn, 57, who minds the shop for Alan Booth Clearances, the local removals company..."

Posted by alan @ 07:13 PM 8 Comments

612k reward for costing British tax payer Billions

Teletext: Rock supervisor gets pay-off

Clive Briault stepped down as managing director of the FSA's retail banking division in April "by mutual consent". This monkey was getting 380k a year before he left 'by mutual consent' http://business.timesonline.co.uk/tol/business/industry_sectors/banking_and_finance/article3586950.ece

Posted by angonamo @ 06:08 PM 4 Comments

WTF!!! Why am I not surprised....

Citywire: FSA directors took home 22% pay rise in year of the Rock

The Financial Services Authority increased the total pay of its directors by around 22% in the year it presided over the Northern Rock debacle.

Posted by rental john @ 05:47 PM 0 Comments

Given the current state of the housing market, it looks like unlikely timing....

Citywire: Falling home sales prompt renewed calls for stamp duty reform

Plummeting housing transactions have prompted the Royal Institution of Chartered Surveyors to renew calls for reform of stamp tax, calling for a two-tier tax system in which no one would pay the tax on the first ₤150,000 of a house price. Under the institutions proposals, above the ₤150,000 limit a 2.5% rate would be charged on every pound, up to ₤250,000, after which a 5% rate would apply.

Posted by rental john @ 05:41 PM 2 Comments

Direct result of lenders bypassing brokers?

Telegraph: John Charcol axes 25pc of staff as mortgage market dries up

.....the broker said it plans to close its offices in Manchester, Guildford and Birmingham, and will lose 69 staff.

Posted by rental john @ 05:37 PM 0 Comments

From the horse's mouth

Bank of England: Lending to individuals, latest release

This release used to be a frontline stat, but now you have to burrow to find it. They've also stopped showing a rather good graph. I don't know how to stick graphics into posts here, but if someone would like to go into the banks interactive database, type in the code LPMVTUV, output for the last ten years and create a graph from the data, you can see how lending has suddenly fallen off a cliff...

Posted by uncle tom @ 03:03 PM 13 Comments

Latest predictions from buy-to-let lender Paragon, are, as always, optimistic

Citywire: The future of buy-to-let: boom or bust?

Latest predictions from buy-to-let lender Paragon, are, as always, optimistic. Paragon maintains that landlords are looking forward to an increase in tenant demand and the opportunity to increase rents. Signficantly there is virtually no mention of falling property prices. But this is at odds with figures from the Association of Residential Letting Agents where the latest survey reveals that in some areas, particularly those with a high proportion of new build flats, rents are actually falling. Moreover, in the face of falling property values, some buy-to-let investors are clearly bailing out. The results from recent auctions where a significant proportion of properties are former buy-to-let properties show that almost 50% are failing to meet their reserves.

Posted by jack c @ 02:35 PM 2 Comments

Wimpeys lenders relax 'banking covenants'....!

Property Week: Taylor Wimpey confirms emergency fund raising

Housebuilder Taylor Wimpey confirmed today that it was in talks with investors regarding emergency fund raising plans.

Posted by rental john @ 01:51 PM 1 Comments

Timber!!!!

Reuters: Crash worries grow over housing market

More gloomly figures, how much longer can the UK housing market take before it goes same way as US market, not long I think. What will be the final nail in its coffin?

Posted by speculatorone @ 01:23 PM 8 Comments

How does being thrifty help a debt-based economy?

Belfast Telegraph: Viewpoint: Thrift needed to ride out economic slump

"It revealed that 42% of people here are spending more than they are earning. All pleas for people to tighten their belts in the current straitened economic climate are apparently falling on deaf ears." This to me sums up the conflict/joke/lie at the heart of our economy - do they really want us to be thrifty when curbing consumer spending leads to a recession? What happens if we become a nation of savers? Even if we 'spend within our means', is that enough for 'sufficient' economic growth?

Posted by shipbuilder @ 01:04 PM 4 Comments

Rents are coming down

Essex County Standard: Landlords told to be realistic

Landlords who hold out for inflated rents on their empty flats and houses have been warned they risk seeing their properties "sit in the wilderness". The warning comes from Richard Jones, manager of Letting Solutions: it is better to accept a lower monthly rent - which may not cover all the landlords' costs - than to have a void and no income at all. - Pages 32&33 on the web (60 and 61 printed in the paper)

Posted by disillusioned @ 12:16 PM 2 Comments

Staff fraud soars by 74pc

Telegraph: Staff fraud soars by 74pc

Fraud often increases in times of economic slowdown as people and companies become more desperate, but the sharp rise in recent months underlines the depth of the current crisis. But according to brown we are wealthy and dont have inflation..

Posted by mark @ 12:09 PM 2 Comments

This is hilarious - beyond satire

This Is Money: HSBC may repossess own head office

Last year, HSBC sold its Canary Wharf HQ building to the Spanish property group Metrovacesa for 1 billion, in a sale-and-lease-back scheme that allowed HSBC to remain in the building. This was the largest property deal in UK history at the time. Metrovacesa took on 800m of short-term debt to buy the building. It borrowed the money from.... you guessed it, HSBC. Now they are struggling to refinance the debt, as no-one wants to lend to them. HSBC want their money back, and Metrovacesa can't pay. HSBC may now repossess the building. Sweet!

Posted by little professor @ 12:02 PM 13 Comments

Today's gold fix = $932.75/oz

Kitco: Today's gold fix = $932.75/oz

Given the amount that certain people talk about gold, I thought this might be of interest. Especially when viewed alongside this: http://www.housepricecrash.co.uk/newsblog/2008/04/blog-goldsilver-bull-not-over-12623.php?comment=added

Posted by james @ 11:39 AM 19 Comments

Some gemstone quotes here

Telegraph: UK house prices fall for ninth straight month

Similar to Guardian piece but worth reading for the risible quotes: "At the weekend Professor Stephen Nickell, a leading housing advisor to Gordon Brown, warned that it would take until 2015 for the property market to start booming again. He also warned that the severe rationing of mortgages was preventing first time buyers from taking advantage of falling house prices, preventing affordability from improving." A peach that one. How many GCSEs do you have to fail to become a leading house advisor? Even better: "Richard Donnell ... said: This drop in volumes was always possible as around half of all transactions in recent years have been driven by aspirational or non needs based movers, who are now sitting on their hands." " What shall we do this weekend. I know, let's move house.

Posted by letthemfall @ 11:33 AM 3 Comments

It's All Different This Time .....

Guardian: Banks and insurers prepare to sacrifice jobs to protect profits

... Or is it?! The VIs suggest all will be OK - employment is solid. "More than 10,000 City staff face sack this summer Fastest fall in profits of financial firms since 1989" Ooopps.

Posted by jonathan @ 11:26 AM 2 Comments

BCE to increase rates... Mr King, Frankfuft calling!

Yahoo France: BCE will increase interest rates to ease tensions on prices

Jean-Claude Trichet will probably ask for the main rate to be increased to 4.25% following the Euro zone inflation figures for June (4%). This move appears as "almost certain and already integrated in the market" according to Stphane Deo, economist at UBS. Will this show the way to the BoE?

Posted by olivier @ 11:12 AM 0 Comments

Why we should be worrying about deflation

MoneyWeek: Why we should be worrying about deflation

"...even though prices are rising at a rate of knots just now, deflation is also a very genuine threat to Western economies. How it plays out remains to be seen, but a period of inflation followed later be a longer period of deflation does look quite possible."

Posted by damien @ 10:33 AM 9 Comments

Nationwide June House Price Index Missing In Action ?

N/A: June House Price Index

Anybody seen it today yet ? Final seasonal "smoothing" going on ?

Posted by doomwatch @ 10:11 AM 13 Comments

Severely damaged banks being more conservative

BBC News: New low for UK mortgage approvals

''The number of new mortgages being approved for house purchase in Britain has dropped heavily for another month. The Bank of England said 42,000 homes were approved in May, a 28% fall compared with the previous month and 64% down on a year ago. ...

Posted by hpwatcher @ 10:08 AM 6 Comments

Why not "turn on, tune in, drop out...."

Firstrung: UK house prices fall for ninth consecutive month as house transactions begin to slump to 1970 levels

UK house prices have fallen for the ninth month in a row during June, to cost 3.2% less than they did a year earlier, figures released from today Hometrack have shown...The number of homes selling is now on target to slump to levels last seen in the 1970s as the credit crunch continues to take its toll on the market, the property information grouphas stated. The group said the average home in England and Wales lost a further 1% of its value during June to cost 170,500. Richard Donnell, Hometrack's director of research, said new buyer registrations were now down by 5.7 percent in June alone and have fallen by more than 50 percent since the credit squeeze began last August.

Posted by converted lurker @ 09:49 AM 2 Comments

Banks to trample growth in rush to deleverage

reuters: Banks to trample growth in rush to deleverage

Those losses -- which are still mounting and being recognised -- have piled up faster than banks can raise new capital, leaving the system today more extended than it was before the crisis began. *******So what happened to all the tax payers money that was pumped in*********

Posted by mark @ 09:26 AM 4 Comments

Japan May housing starts -6.5 pct

reuters: Japan May housing starts -6.5 pct

It was the 11th straight month of falls.

Posted by mark @ 09:23 AM 0 Comments

BIS slams central banks, warns of worse crunch to come

Telegraph: The media's uber bear

A year ago, the Bank for International Settlements startled the financial world by warning that we might soon face challenges last seen during the onset of the Great Depression. This has proved frighteningly accurate.

Posted by holding out @ 09:21 AM 1 Comments

That's gotta hurt!

Times Online: Northern Rock borrowers face big jump in mortgage repayments

Hundreds of thousands of Northern Rock borrowers are facing huge rises in their monthly mortgage repayments because they are trapped in deals with the beleaguered lender. Thousands of Together customers have little option but to move on to the bank's standard rate of 7.49 per cent at the end of their fixed-rate deals. A homeowner who took out a 150,000 fixed-rate loan with Northern Rock at 6 per cent will see their monthly repayments rise by 186 on the bank's standard rate. Melanie Bien, of Savills Private Finance, a broker, said: Unfortunately, people with 100 and 125 per cent loans who are coming to the end of the fixed-rate don't have much choice.

Posted by gardeniadotnet @ 07:41 AM 13 Comments

Hometrack: -1.0% MoM, -3.2% YoY

Guardian: House prices fall for ninth month running

House prices in England and Wales fell for a ninth month running in June, leaving them 3.2 percent lower than a year ago, a survey by property research company Hometrack showed on Monday. The survey also revealed a rise in the length of time a property spends on the market and a smaller proportion of the asking price being achieved. Richard Donnell, Hometrack director of research, said, "In the short term it seems inevitable that prices will continue to post modest falls until such time as confidence improves."

Posted by little professor @ 12:37 AM 11 Comments

Sunday, June 29, 2008

Strewth mate - the poms have had it

Telegraph: Australians leave UK to escape credit crunch

Australian authorities have recorded a 50 per cent increase in the number of their citizens returning down under since last summer. Growing numbers of migrants from Poland, India and Nigeria are also said to be leaving in the hope of easier times and more economic stability back home. The cost of raising a family is said to have jumped more sharply in the UK than in any other country in the western world. The departures are harming the building industry and businesses in the City in particular, which relies on seasonal workers from other countries, is suffering.

Posted by uncle chris @ 10:36 PM 16 Comments

Another f'd company

Press Association: Taylor Wimpey to unveil emergency cash call

Beleaguered housebuilder Taylor Wimpey is reportedly finalising an emergency multi-million pound fundraising plan as it suffers in the face of a property market slowdown. The firm is said to be hoping to unveil a deal this week, possibly ahead of its trading update on Wednesday, that will see its biggest investors pledge up to 500 million to boost its battered balance sheet. Taylor Wimpey is also understood to be in talks with its banks to relax agreements on debt that it is thought to be close to breaching.

Posted by little professor @ 06:36 PM 11 Comments

We've Crashed!

Capital Economics: June Housing Monthly

Get a load of this - what a difference a year makes!

Posted by cha55a @ 03:08 PM 0 Comments

America must institute sound monetary policy and stop wasting money war mongering to solve this, but they won't..

Infowars: As economy freefalls, Congress vacations

With reports of gas prices climbing towards $7 a gallon and a continuing foreclosure crisis, Congress is doing what polls show most Americans expect it to. Not a whole lot. So what has Congress been up to recently? Bill sent to President Bush for approval include $162 billion for next years war funding, $63 billion for the GI bill and $12.5 billion in renewed unemployment insurance for people whose 26-week benefits have run out, the Associated Press reported. Mexico welcomed a recent measure approved by Congress that sends the country $400 million to deal with a campaign against drug trafficking, Agence France Presse reported. President Bush expressed disappointment that the amount was $50 million less than he had requested. Meanwhile, 8000 homes fall to foreclosure each day!

Posted by planning4acrash @ 01:09 PM 6 Comments

This is command & Control economics. It is not capitalism!

NYT&Infowars: Mortgage Debt Is Snowballing

Debt is snowballing with some 2.6million in arrears. The government thinks it can solve the crisis by backing 30yr fixed rates and monetising household debt via the Feral Reserve system. Not everybody is behind the scheme. Some Republicans, like Senators Jim DeMint of South Carolina and Jim Bunning of Kentucky, say the proposal would use government subsidies to bail out reckless lenders and borrowers. They suggest that the housing market will correct itself more quickly if Congress does not intervene.

Posted by planning4acrash @ 01:04 PM 0 Comments

Phase 2: The capitulation of BuyToiLet

FT: Investors secure huge discounts on properties

"Residential property investors are securing discounts of up to 30 per cent on prime new-build developments as housebuilders rush to offload stock before prices fall further. They are finding opportunities in parts of prime central London and the south, typically where development began before the downturn in the housing market. Developers are increasingly desperate to find buyers and will negotiate large bulk discounts, according to agents" this is pretty much it

Posted by confused76 @ 12:23 PM 7 Comments

The Buy-Toilet problems deepen

ThisIsMoney: B&B bosses may pay price for 'stitch-up'

One source close to TPG warned that without the funding to be raised from the current scheme, B&B could face a Northern Rock-style crisis, with panicked savers queuing to withdraw their cash.

Posted by confused76 @ 10:11 AM 4 Comments

More confirmation of the good news ahead

Observer: UK housing sales plunge to record low

"...and he expects prices to decline by 15 per cent this year; by up to 12 per cent in 2009, and by yet another 10 per cent in 2010 - one of the most pessimistic City forecasts." and "...78 per cent fewer mortgage products available than at the pre-credit crunch peak last summer" But ... this is going take ages, how can we speed up the process ? Any ideas?

Posted by voiceofreason @ 08:46 AM 12 Comments

Er... it's the price stupid !

Observer: 'A conservatory, a Porsche, free flights - how can I tempt you to buy my house?'

"25 per cent more homes on the market now than at the start of the year" "... For most sellers, that means whatever they were thinking of asking, they need to take at least 10 per cent off.' Watch this space to see whether 10 per cent becomes 20 per cent before long."

Posted by voiceofreason @ 08:33 AM 9 Comments

US House Prices Forecast 2008-2010

The Market Oracle: US House Prices Forecast 2008-2010

The housing market trend suggests that the annualised rate of house price falls could bottom at minus-18% for the July S&P/Case-Shiller house price data, therefore suggesting a continuation of the weakening trend in US house prices for the next 3 months (May,June,July data), after which the pace at which US house prices are declining 'should' improve as the current momentum is unsustainable beyond July 2008 due to sharp declines from a year earlier factoring into the annualised house price figures.

Posted by nadeem walayat @ 07:34 AM 0 Comments

American's held to ransom.

Timesonline: Saudis press United States to put an end to rate cuts

There is something called the Fed family. Its not as shady as a mafia family, but far more powerful. Members include chairman Ben Bernanke and the six other members of the board of governors, appointed by the president; the presidents of the 12 regional Fed banks, five of whom serve on the FOMC; and several influential alumni who are frequently consulted by Bernanke and the White House, and whose public utterances Bernanke cannot ignore.

Posted by flintster1994 @ 07:32 AM 6 Comments

35% HPC - journey from denial through anger and depression to acceptance

Observer: A Victorian value we couldn't afford to lose

Economists at UBS have researched previous housing crashes around the world and concluded that they unfold in remarkably similar ways, over a three- to four-year period, a financial variant on Elisabeth Kbler-Ross's cycle of grieving. In a paper last month it judged too pessimistic to be released to the press, Capital Economics forecast a 35 per cent fall in house prices, with double-digit drops continuing through 2010 Also about the disdain for saving.

Posted by mken @ 07:09 AM 8 Comments

Saturday, June 28, 2008

The deleveraging of the UK housing market

Times: Homes hit as lenders slash values

Down valuations are putting further pressure on sellers who have already had to knock hundreds of thousands of pounds off asking prices. YEESSSSS. Tony Grounds, 50, a writer, first put his home at Broxbourne, Hertfordshire, on the market for 2.4m six months ago but was forced to lower the price to 2m. He later approached estate agents Knight Frank who recommended he drop the asking price to 1.795m a few days ago.

Posted by confused76 @ 11:22 PM 4 Comments

An instant classic: David says it is not overvaluation

TimesDavidSmith: Time to ease the loan stranglehold

Steve Nickell, head of the governments National Housing and Planning Advice Unit, believes that current developments will exacerbate medium and long-term housing shortages. Prices may be falling now but the long-term trend is relentlessly upwards, he said in introducing a new report last week. If the market overshoots down now, it will overshoot up again next time. It is hard to see that is in anybodys interest. Whats going on? It may be a bit of cant move, will spend... BAHAH

Posted by confused76 @ 11:13 PM 15 Comments

Easy or hard, there's no profit to be made

Times: No more easy profit in the BTL market

Something odd is happening in the buy-to-let market. House prices are falling but landlords are prospering. The mere suggestion that landlords are suffering was enough to prompt a public relations offensive cleverly claiming that the real victims are would-be first-time buyers who are being squeezed by surging rent rises all of which is music to the ears of buy-to-let investors. Letting agencies are apparently crying crocodile tears at queues of homeless couples begging to rent and being gazumped into even higher rents by landlords overwhelmed by demand. But costs are rising, and it may take only a couple of bad tenants or a long vacant period to turn profit into loss. Above all, it is vital to avoid selling if at all possible in the next few years

Posted by little professor @ 09:22 PM 4 Comments

Rental market booming - for tenants

FT: Landlords told to lower unrealistic rents

"Estate agents are rejecting landlords looking to rent out properties or advising them to lower their prices as a rush of new instructions, particularly in London, has far outstripped demand from tenants." Today I have seen the first EA closure where I live. The premises is being filled by another agent - a lettings agent (lots of local people wanting to let their house). A local EA says the housing market is the worst he's seen for 30 years.

Posted by letthemfall @ 05:49 PM 5 Comments

House prices do (not) fall in prime central London...

Financial Times: Investors secure huge discounts on properties

Residential property investors are securing discounts of up to 30 per cent on prime new-build developments as housebuilders rush to offload stock before prices fall further.They are finding opportunities in parts of prime central London and the south, typically where development began before the downturn in the housing market. Developers are increasingly desperate to find buyers and will negotiate large bulk discounts, according to agents.

Posted by attila @ 05:42 PM 0 Comments

Well Hoorah!

FT: Public has firmer faith in housing market

"People have lost the belief that house prices would rise indefinitely. Three-quarters think prices are falling..." Good old British public. There's no fooling them.

Posted by letthemfall @ 04:45 PM 1 Comments

Dont bank on buy-to-let

MoneyWeek: Dont bank on buy-to-let

More than two-fifths of buy-to-let landlords are still bullish. But with some investors so close to the wire already, repossessions are a distinct possibility....

Posted by damien @ 03:05 PM 3 Comments

World stock markets: worst performance in 26 years

Financial Times: Global markets reel after first-half carnage

The FT gives a damning overview of the falls in worldwide stock markets over this year: "worst first-half performance in 26 years"

Posted by brite2006 @ 02:28 PM 0 Comments

Ah diddums!

Ah diddums!: Lenders put greed above need

They're not charities, you know!

Posted by mark wadsworth @ 02:19 PM 10 Comments

Quick ... Book Your Place

Mortgage Introducer: Property Investor Show

"Nearly 300 exhibitors will be on hand to provide visitors with the best advice for investing in the current market, both at home and abroad, as well as providing guidance on mortgages, finances, legal advice, commercial developments and the process of buying and selling a property." Now where's the stall that says 'Don't Buy Yet, as Buying in a Crash can Seriously Damage Your Wealth!'.

Posted by renting2 @ 11:29 AM 9 Comments

the m3 money supply

Telegraph.co.uk: Has the Fed really flooded the world with dollars?

This rise is almost entirely due to a “bearish” flight from stocks and suchlike. Nervous investors have parked their wealth in money funds for safety until the crisis blows over. These money funds are distorting the M3 data (as Prof Goodhart also recognizes). “Everybody keeps saying the Fed is dropping money from helicopters and flooding the economy with liquidity, but it is not true. All that is happened is that the precautionary demand for money has gone up. That is not inflationary in any way,” said Mr Ashworth.

Posted by sold out @ 10:19 AM 12 Comments

Residential land market down by 25% so far in 2008

Telegraph.co.uk: Berkeley Group calls bottom by buying land

"Although the housebuilder stressed there could be further price falls to come it said it was starting to see value in the market after 25pc falls in the price of land so far this year." This is a statistic they have been keeping to themselves!

Posted by wdbeast @ 10:06 AM 8 Comments

B&B: Sorry! No Beds or Breakfast Available.

FT: B&B shares plunge as Resolution walks away

Bradford & Bingley on Friday endured a 20 per cent fall in its share price and a further deterioration in its relationship with leading shareholders after Clive Cowdery, the financial entrepreneur, pulled the plug on his proposed rescue deal. Mr Cowdery, backed by a number of B&Bs biggest shareholders, had wanted to carry out due diligence on the UKs biggest buy-to-let mortgage lender in advance of any deal. He had been blocked, however, by the banks board, which is already planning to raise 400m through a 258m rights issue at 55p and a 179m investment from TPG, the private equity group.

Posted by stevie dee @ 08:53 AM 0 Comments

That's right Barclays 1 + 1 = 5?

FT: Barclays faces questions over balance sheet

Barclays faced renewed questions about its balance sheet on Friday as one of the City's leading analysts forecast that the banking group would need more capital than the 4.5bn it is raising through a share issue. Banking analysts at Citigroup pointed out that Barclays would need to raise 2.5bn just to bring its balance sheet ratios into line with those of Royal Bank of Scotland, its nearest rival. They also argued that the bank would have to take further writedowns if it valued 7.5bn of loans to private equity groups on its books in line with market prices.

Posted by stevie dee @ 08:46 AM 0 Comments

More depressing news.... Still soon we will have the first birthday party of the credit crunch and NR bank run to celebrate!!!!

Guardian: Dow Jones index becomes bear bait after dire month

Wall Street is teetering on the brink of a bear market after a bad day of trading completed the worst June since the Great Depression. A new clutch of warnings about the health of banks, together with a $142 oil, sent the Dow Jones down. Concern about the credit crunch's effect on profits at banks continues to dog financial markets. Lehman Brothers suggested that Merrill Lynch could write off $5.4bn in credit-related losses during the second quarter. Elsewhere, Moody's said it might cut Morgan Stanley's credit rating. Gloomy stuff. Still any suggestions for how to celebrate credit crunches birthday? I thought HPC could hire the Millennium Dome! Remember that? There was a time when we thought nothing of giving 789,000,000 to our leaders so they could buy a tent to party in!!

Posted by who stole my pension? @ 06:03 AM 1 Comments

Are people really carrying on as though nothing has happened?

What Investment: Ignoring the credit crunch

A significant number of people are not concerned by the current economic climate and still have their sights on property as a good investment, according to life insurer, Zurich. Less than a third of consumers have reviewed their finances in light of the credit crunch and a fifth of people claim it is a term that has been created by the media. Worryingly, more than a third of people dont believe that the credit crunch will affect them, in spite of the talk of the housing market downturn, the difficulties of obtaining credit and the rising cost of living. Tony Solomon of Zurich UK Life, says, It is worrying to find that less than a third of people have reviewed their finances in light of the credit crunch. If IR go down will these people buy start buying over priced houses again?

Posted by who stole my pension? @ 05:44 AM 4 Comments

IR going down? Will people return to reckless borrowing?

Daily Telegraph: Credit crisis: mortgage market may be over worst, say experts as banks cut rates

C&G is cutting the cost of its tracker mortgages by between 0.2% and 0.26% from Monday. The move will leave a two-year tracker deal for someone who has a 30% deposit at 5.99% a full point better than the average rate, which broke through the 7 per cent barrier this week. A&L, which had withdrawn its most generous deals over the last few months, yesterday launched a new two-year tracker at base rate plus 0.98% equating to 5.98% at today's rates. The deal is for any home owner with a 25% deposit and looking to borrow up to 1 million. Will we see the return to reckless borrowing or will banks now limit advances to 3 -5 times certified salary? Or will these products be withdrawn on Tuesday due to excessive demand?

Posted by who stole my pension? @ 05:37 AM 9 Comments

The housing market has lost its grip on reality

The Times: The struggle to rent a flat in London

I feel that the whole housing market seems to have lost its grip on reality. Young people are naturally attracted to jobs in London, and I do wonder how any of them can afford to live there any more. In an age when we naturally deplore seeing young people sleeping on the streets, I find myself wondering who is to blame.

Posted by eagle @ 12:19 AM 0 Comments

Friday, June 27, 2008

Yay - something we actually excel at ... debt

Telegraph: British household debt is highest in history

British households are now more indebted than those of any other major country in recorded history, it has emerged. Families in the UK now owe a record 173pc of their incomes in debts, official figures have shown. The ratio of debt to income is higher than any other country in the Group of Seven leading industrialised economies, and is sharply higher than the 129pc of incomes it was five years ago.

Posted by uncle chris @ 09:45 PM 6 Comments

Oh how the 'experts' change their tune

Telegraph: House prices won't recover until 2015, ex-MPC expert warns

The housing market will not return to its pre-credit crunch health for at least six or seven years, an expert adviser to Gordon Brown has warned. Families must wait until 2015 for the property market to start booming again, according to Stephen Nickell, who heads up the unit which advises the Prime Minister on housing planning.

Posted by uncle chris @ 09:33 PM 10 Comments

Newbie BTLers face major pwnage.

Telegraph: New buildflat prices getting hammered

New-build flats have been hardest hit by the property downturn. Over-building in some areas, leading to a glut of properties competing for buyers, and tenants, has sent values and rents spiralling downwards. "There is no such thing as a free deposit," says Mr Sandeman. "The lucky ones are those who got repossessed last year. Those who are being repossessed now, at current auction prices, will still owe vast sums to their lender." The low prices these flats are getting at auction are due to the market softening, but if you add in fraud or overoptimistic valuations that is going to cause big drops in the value.

Posted by little professor @ 07:33 PM 7 Comments

Yet More Mortgage Expense

This Is Money: Halifax launches 245 mortgage 'entry' fee

Halifax has risked the wrath of mortgage borrowers by introducing a 245 charge for new customers - accused of being the return of the mortgage exit fee under a different name. The so-called 'mortgage account fee' will effectively end the bank's fee-free mortgage range as it will apply even to those who choose to pay a higher interest rate to avoid arrangement fees.

Posted by wilee @ 06:11 PM 0 Comments

Roll up, roll up only 7,699 to reserve your mortgage!! Yep you heard it, it's a bargin!!

Fool.co.uk: HSBC 'Rescue' Mortgage Is Now A Rip-Off

The maximum loan available under HSBC Rate Matcher is 250,000** and the minimum rate HSBC will match is 4.79%. If you were to borrow this amount at that rate, the booking fee will set you back a staggering 7,699!

Posted by who stole my pension? @ 05:38 PM 3 Comments

Is HP's clock still ticking?

Tiscali news: Labour 'should consider sacking PM'

Labour should "seriously consider" ditching Gordon Brown following the Henley by-election drubbing, the party's former chief fundraiser Lord Levy has said. How long before the 'prudent one' is asked to fall on his sword? Next local elections are 7th May 2009, but may be move back to coincide with the 4th June 2009 European Parliament elections.Will he be out after that......can't see that he will survive until May 2010? www.communities.gov.uk/news/corporate/812676

Posted by rental john @ 05:16 PM 0 Comments

NR MkII?

Times Online: Resolution drops 400m Bradford & Bingley bailout plan

Keep watching ... if the others pull out, start queueing up at your nearest branch.

Posted by paul @ 04:51 PM 9 Comments

Operation Astapa - nets corrupt officials and businessmen...

The Oliver Press: New costa corruption scandal

From the 18th June... 20 arrested as Costa del Corruption investigation begins again this time in Estepona. A NEW corruption investigation has engulfed the Costa del Sol. The multi-million euro investigation in the popular resort of Estepona is understood to centre on real estate corruption.

Posted by rental john @ 04:49 PM 0 Comments

Very short article, statistical sleight of hand ever present

Times Online: House sales fall 50% as prices shrink

As we come over the summit of the house price high, expect the comparison time frame to lengthen. Now we are hitting the point where property pundits can say that house prices are unchanged since a year ago, while completely ignoring the subsequent rise and dramatic falls in between. In fact, the likes of A Ashworth and D Smith will probably claim that prices are rising as compared with 1 year ago, then 1.5 years ago, then compared with 2 years ago etc. etc. Anne Ashworth's salary is paid for by property section advertising. Others on the Times Online should know better (but don't).

Posted by paul @ 04:47 PM 1 Comments

...

Motley Fool: Profit From Property Price Falls

It is a truth almost universally acknowledged... that property prices are falling. Despite debate about the extent to which house values will drop -- will we see a crash, a correction or just a small dip? -- most experts now agree prices go down, rather than up in 2008.

Posted by rental john @ 04:34 PM 0 Comments

The level of money they cream off must be dwindling fast!

Motley fool: The Worst Property Rip-Offs Ever!

It was the keys that saved me. The keys, and the parking tickets. Without them, I think I probably would have gone insane.

Posted by rental john @ 04:27 PM 0 Comments

Phew! Relax everyone, they know what they're doing!

Mail On Sunday: Earth will not be gobbled up by black hole during big bang experiment, reassure scientists

The Earth is not at risk of being sucked into a black hole, a safety report into the world's most powerful particle physics experiment has found. Scientists at Europe's CERN lab plan to use the Large Hadron Collider (LHC) to smash highly-energised protons together at super-fast speeds to produce miniature versions of the Big Bang. The collisions will create temperatures more than 100,000 times hotter than the heart of the sun.

Posted by gardeniadotnet @ 01:01 PM 31 Comments

Are stock markets waking up to reality?

MoneyWeek: Are stock markets waking up to reality?

The economic outlook is gloomy. World stock markets continue to plummet and oil remains stubbornly high. And in the UK there is no respite, as people swim in debt they are struggling to repay...

Posted by damien @ 12:41 PM 8 Comments

That's all right then.....NOT!

BBC online: Royals cost taxpayer '66p each'

'The Queen and the Royal Family have cost each taxpayer 66p during the last 12 months - up 4p on the previous year, Buckingham Palace accounts have shown. The total amount spent on maintaining the monarchy in the year to 31 March rose by 2m to 40m, figures revealed.' According to Forbes she has a personal wealth of 280 billion (give or take a million or two).....so why the free housing, and a 40 million per annum handout!

Posted by rental john @ 12:02 PM 23 Comments

How come? Perhaps a lag in data!

BBC news: House prices 'unchanged in May'

House prices in England and Wales were unchanged in May and up 1.8% over the year, the Land Registry says.

Posted by nooneo @ 11:32 AM 35 Comments

We've had a look done the sums and it turns out everything is ok... No problems with the house prices..No.. Honest !!!

BBC News - The Ministry of Information: House prices 'unchanged in May'

House prices in England and Wales were unchanged in May and up 1.8% over the year, the Land Registry says.

Posted by mattormsby @ 11:28 AM 2 Comments

but renting is booming???? lol

Times: Vacant Office Space in City Nearly Doubles

Falling demand from the financial sector has led to the volume of vacant office space in the City of London nearly doubling over the past 12 months.

Posted by mark @ 11:04 AM 2 Comments

Have your say

BBC News: What do you think of Brown's year in office?

I've certainly said my piece, including my thoughts on his time as Chancellor rather than just restricting my comments to the last disastrous year - in summary: OUT! OUT! OUT!

Posted by disillusioned @ 10:58 AM 10 Comments

Housing Market Problem "home grown"

BBC: Question Time

56 mins in. I now only trust the Lib Dems; everyone else is ignoring the housing disaster . Evette Cooper "... but, but it's the global credit crunch that ate our homework ... interest rates are only 5% ... blah blah" yawn.

Posted by doomwatch @ 10:55 AM 3 Comments

pensioners were being forced to choose between eating and heating.

Western Daily Press: SOMERSET OAP KILLED HIMSELF IN 'BUDGET PROTEST'

A Somerset pensioner was so tormented by rising household bills he electrocuted himself after the latest Budget, an inquest was told. The daughter of 92-year-old war veteran George Mechan told a hearing she found him at his home in Mark, near Burnham-on-Sea, slumped in an armchair on March 13, the day after Alistair Darling's House of Commons address. He had taped wires to his fingers and killed himself surrounded by newspaper articles about the Chancellor's economic blueprint, the hearing in Taunton was told. The widower had become increasingly concerned about the rising cost of living and his family believe the Budget in March was the final straw.

Posted by malct @ 10:39 AM 5 Comments

Victor Meldrew's generation stole my future

BBC: Britons feel 'socially immobile'

Nearly three out of four Britons feel either worse or no better off than their parents, a survey suggests. Three quarters of the people asked said they believed that the gap between rich and poor was too big. and I bet the majority of those asked were under 60...

Posted by george monsoon @ 10:26 AM 15 Comments

What was is that The Badger was saying ...?

The future of credit

Telegraph: Pawnbroking goes high-end

Consumers buckling under the strain of higher living costs are returning to the Victorian age in a bid to get their hands on some cash they are hot-footing it down to their local pawnbroker. And it is not just those on low incomes who are pawning bits of jewellery and small family heirlooms. Some brokers report City whizz kids and professional footballers offering cars or Rolex watches worth tens of thousands of pounds in return for a loan. This is priceless. But seriously Pawn Brokers look positively moral in comparison with high street banks. They have *real* assets backing the money they lend. Wait a second I think they just got upgraded to Angels of light -- they have 100% backing for their loans with real stuff. Wow. They don't do fractional reserve pawn broking, hahaha

Posted by last_days_of_disco @ 10:11 AM 3 Comments

Developers deserting the sinking ship.....?

Property Week: Castlemore abandons 275m Leeds scheme

Castlemore has pulled out of a 275m regeneration scheme in Leeds city centre, saying it is reviewing its appetite for large scale schemes in the current market.

Posted by rental john @ 09:35 AM 0 Comments

Final stages of the oil bubble

The Telegraph: Oil price surge rattles global stock markets

Global stock markets were under pressure today as the soaring price of crude oil darkened the outlook for economic growth.

Posted by sold 2 rent 1 @ 09:14 AM 22 Comments

Meltdown time is close

Kick 'em when they're down

Guardian: Halifax comes under fire for bringing in new mortgage fee

The Halifax came under fire yesterday for introducing a new 245 mortgage fee, making buying a home or remortgaging even more expensive. Britain's biggest mortgage lender was accused of "sneaking in" the fee, which will apply to all new Halifax and Bank of Scotland mortgages taken out from Monday. The move could put the bank on a collision course with the chancellor, Alistair Darling, who urged lenders this week not to take advantage of borrowers by imposing huge home loan fees.

Posted by quiet guy @ 08:45 AM 0 Comments

Working for the Treasury

Adamsmith.org: Tax Freedom Day

Tax Freedom Day shows just how long we spend working for the Treasury, rather than ourselves. Overall, the government takes more than 40% of national income. This means that the average UK resident has to work a full five months of the year solely to pay that tax bill.

Posted by sold out @ 08:35 AM 2 Comments

Happy Anniversary Gordon

Times online: Labour finish behind BNP in election humiliation

Labour came a humiliating fifth place behind the BNP and the Greens last night in the Henley by-election caused by Boris Johnsons election as London Mayor. Gordon Browns first anniversary as Labour leader began with the party securing only 1,066 votes, losing its 500 deposit, and having its working majority in the House of Commons cut to 65, as John Howell, the Conservative candidate, succeeded Mr Johnson in the Oxfordshire seat

Posted by sold out @ 06:49 AM 19 Comments

Time to sell the holiday home!

Global Property Guide: The end of the global house price boom

Only 13 countries in which dwelling price indices are regularly published saw prices rise during the year to end Q1 2008, while 21 countries saw dwelling prices fall in real terms, i.e., after adjusting for inflation. The biggest house price fall was in Latvia (Riga), down -38.2% by May 2008 from a year earlier. The cause of the downturn is blamed on the boom, inflation and bad regulation of banks.

Posted by who stole my pension? @ 06:14 AM 3 Comments

Shares in fluffy white cats rally.

The Times: Echoes of Great Depression as Dow takes another dive

The Dow Jones dived a further 350 points yesterday, giving Americas key economic benchmark its worst June performance since the Great Depression, as oil hit a record and analysts said that the fallout from the credit crunch was far from over. Citigroups shares fell by $1.18, or 6.26 per cent, to $17.67 in New York, their lowest since October 1998, after William Tanona, a Goldman Sachs analyst, tripled the net loss he expects the group to make in its second quarter to 75 cents a share, or $3.75 billion (1.9 billion). Shares in Merrill Lynch tumbled by $2.41, or 6.8 per cent, to $33.05, as Brad Hintz, an influential analyst with Sanford Bernstein, changed his second-quarter forecast for the group from an 82 cents a share profit to a loss of 93 cents a share, or $832 million.

Posted by dave spart @ 05:29 AM 0 Comments

Following on from Citi's recent warning.

Daily Telegraph: Barclays warns of a financial storm as Federal Reserve's credibility crumbles

"This is the first test for central banks in 30 years and they have fluffed it. They have zero credibility, and the Fed is negative if that's possible. It has lost all credibility," said Mr Bond. Shares in fluffy white cats rallied on the news.

Posted by dave spart @ 04:34 AM 0 Comments

Sad old VI truisms being trotted out again

Telegraph: It's cheaper to buy than to rent

According to new figures from Abbey people are increasingly better off buying rather than renting. The Bank says it is now more than 10,000 cheaper to buy a house than to rent in many parts of the country - six months ago, it was just 5,800 cheaper to buy than rent over 25 years. The greatest savings depend on where you live. In the South East, you will be almost 60,000 better off by paying off your own mortgage rather than your landlord's. Phil Cliff, director of Abbey Mortgages, said: "The housing market has changed. A person is better off, in terms of the payment cost, by getting on the property ladder in all but three of the UK's regions."

Posted by little professor @ 12:40 AM 15 Comments

Interest Rates worked against inflation. Can it work against Stagflation this time around? Discuss

BBC/YouTube: Pandora's Box

Here is an old documentary by Adam Curtis (of "Power of Nightmares" fame) talking about how technocrats, scientists and politicians tried to "make Britain great" again by growing the UK economy only for their efforts lead to Stagflation (and begging for money from the IMF in 1976 - so much for being Great Britain). If there is anything this video achieves, it is a SOBERING reminder of what Stagflation really means not just for house prices. Would appreciate comment.

Posted by chris @ 12:40 AM 0 Comments

Thursday, June 26, 2008

A credit downturn should be familiar territory for banks. Think again

Economist: Tread carefully

THE credit crunch has been an alien landscape for many banks. Exotic products, new accounting rules and an unprecedented liquidity freeze have left them groping for handholds. Banks are also dealing with new types of borrowing. In Britain untested areas of specialist lending, such as buy-to-let and self-certification mortgages, are coming under stress for the first time. HBOS, the countrys biggest lender, revealed in June that arrears in these asset classes had risen much faster during the first five months of the year than among prime borrowers.

Posted by stevie dee @ 11:14 PM 0 Comments

Buy-toilet 2

ThisIsMoney: Hammered! Buy-to-let unravels

"We've all read the headlines about the property crash. But what's it like to see your buy-to-let nest-egg auctioned off for less than half you paid for it" Uh uh uh

Posted by confused76 @ 11:07 PM 1 Comments

Buy-toilet

MoneyWeek: Don't bank on buy to let

Already, those who do have significant leverage cant afford any voids at all now. A full 17% say they have already missed a mortgage payment. What was truly shocking was that this was up eight percentage points in the three months since December. That means that in the first quarter there was an annualised 32% rise in delinquent BTL borrowers. Earlier this month, Bradford & Bingley confirmed as much when they revealed that in the first four months of the year, the number of BTL loans that were at least 90 days in arrears had jumped by 52% to more than 3,000

Posted by confused76 @ 11:05 PM 1 Comments

No Money No Supermarket - Just a Cornershop

Guardian: Moneysupermarket.com adds to housing market gloom

Price comparison website Moneysupermarket.com added to gathering gloom in the housing market today, warning that the mortgages and loans market was deteriorating. Although the company which aims to help consumers choose the right services in areas such as finance and travel said its first-half results would meet expectations, it painted a gloomy picture of the wider housing market. In a trading statement today, it said trading conditions at its money division, which accounts for roughly half of its revenues, "remained extremely challenging, especially in loans and mortgages, which on a monthly basis continued to worsen throughout the second quarter".

Posted by stevie dee @ 10:54 PM 0 Comments

The Anne Ashworth Show

Times: Country piles and crash pads hold their appeal

The mortgage drought has forced many would-be buyers of flats to rent them instead - a boon for buy-to-let investors who neither overextended themselves nor misjudged the tastes of prospective customers.

Posted by confused76 @ 10:54 PM 9 Comments

Handle with Care!! Fragile Homeowner

FT: Majority of MPC considered rate rise

A majority of the UKs interest-rate setting monetary policy committee considered raising interest rates at their June meeting, it emerged from a parliamentary hearing on Thursday. In remarks that made clear that if there is to be an imminent change in interest rates, it will be an increase not a cut, five of the nine MPC members expressed concern over rising fuel and food prices.

Posted by stevie dee @ 10:42 PM 1 Comments

B&B: Breakfast not included?

FT: B&B faces flak from investors over Cowdery

Angry shareholders on Thursday bombarded Bradford & Bingley with calls to express their concern that the bank had refused to open the books to Clive Cowdery, the financial entrepreneur who wants to carry out due diligence for a deal. Resolution, the company owned by Mr Cowdery, on Thursday claimed that 40 per cent of all institutional investors on B&Bs register were demanding that the banks board open its books to Resolution.

Posted by stevie dee @ 10:39 PM 1 Comments

Between a Rock and a Hard Place

campaignforliberty.com: Ron Paul, commentary on Fed's decision to keep rates at 2%

Ron Paul challenges the legitimacy of the Fed and explains that rates will go up after the presidential election, when a real recession will occur. The UK is in a similar situation, albeit further from an election.

Posted by planning4acrash @ 10:17 PM 4 Comments

"Adjustment" is more severe than in the 1990s

London Evening Standard: Builders on slide after 'worse than Nineties' warning

"Kate Barker, who is the Bank's monetary policy committee's lead expert on housing, said: "I don't think it's particularly good news. Conditions are different to the 1990s. The housing market adjustment is more severe than in the 1990s"

Posted by doomwatch @ 10:09 PM 3 Comments

Nowts even selling at auction

London Evening Standard: See houses get hammered

4th Neil Collins article down: "It's horribly fascinating, this new sport of watching the housing market collapse, and now you can see it happening before your very eyes. "

Posted by doomwatch @ 09:56 PM 1 Comments

Stil no end in site for oils rise.

Bloomberg: Crude Oil Rises as Dollar Drops, Libya Warns of Production Cut

June 26 (Bloomberg) -- Crude oil jumped above $140 a barrel to a record as Libya threatened to cut production, OPEC's president said prices may reach $170 by the summer and the dollar weakened. Libya may curb output because of a U.S. law that allows terror victims to seize assets of foreign governments as compensation. OPEC President Chakib Khelil said oil may surge on a European interest rate rise, France 24 reported. Oil, gold and copper climbed today as the dollar dropped because the Federal Reserve gave no signal of higher interest rates yesterday.

Posted by flintster1994 @ 07:30 PM 9 Comments

housing vision

Mortgage Solutions: Scottish Government sets out housing vision

Deputy First Minister Nicola Sturgeon made a statement on housing to the Scottish Parliament yesterday. Commenting on its Firm Foundations plan which was announced last year, which included plans for more houses of all tenures, built to higher environmental and design standards, meeting the needs of those on lower incomes and contributing to the creation of sustainable, mixed communities she said the Government wanted to raise the rate of house-building to 35,000 new houses a year by the middle of the next decade.

Posted by ash4781 @ 06:50 PM 0 Comments

Get your filthy hands off my gherkin!

Telegraph: Allotments thefts rise as credit crisis causes vegetable crimewave

Allan Rees, chairman of the National Society of Allotments and Leisure Gardening, is concerned the problem could get worse as the economic outlook worsens. "Families are getting poorer and this is one way of putting food on the table," he said. "I believe they are being sold on. Thieves stole potatoes from my own plot and put the stalks back in place so it was two or three days before I noticed."

Posted by gardeniadotnet @ 06:08 PM 83 Comments

Top Dollar for faulty new rabbit hutches - whatever next !

BBC: Seven in 10 new houses 'faulty'

Seven in 10 buyers of newly-built homes found faults with the property, according to a study by the Office of Fair Trading (OFT). But most of the problems were only minor issues with decorating, glazing, plasterwork or appliances and did not cost the buyer anything to fix. Those whose moving-in date was delayed faced heavy costs, the study into the state of the homebuilding market said. The report also looked at allegations of firms hoarding land to boost profit. There was a scarcity of sites, and holding land could increase profits, the early findings concluded.

Posted by jack c @ 05:20 PM 3 Comments

Just for fun....

Youtube: Property Ladder (mick take)

Property ladder p1ss take...

Posted by rental john @ 05:06 PM 0 Comments

To buy oil futures?

Property Week: Institutions sell out of 1.8bn of property

Institutions sold out of a record 1.755bn of property in the first quarter of the year in a sign of the plummeting sentiment in the market. A lot of investment money washing around looking for a place to go.....into futures, hedge funds, and other forms of legalised gambling!!!!

Posted by rental john @ 04:56 PM 0 Comments

Wouldn't it be much much cheaper and less risky to send little Johnny to a private school?

Telegraph: House prices soar near top London school

House prices are soaring near a top school in London - with parents willing to pay almost 1m more to move into neighbouring homes, according to estate agents. If you bought a more modestly priced home then that extra 550,000~800,000 could fund a private education with money to spare (or has the world gone MAD!)

Posted by rental john @ 04:49 PM 0 Comments

Biggest bank in the world goes pop

Reuters: Citigroup sinks to 10-year low, Goldman urges short sale

"Citigroup Inc (NYSE:C - News) shares fell to their lowest level in nearly a decade after a Goldman Sachs & Co analyst said investors should sell the largest U.S. bank's stock short as losses mount from troubled debt.". I guess the CEO's assertion, not long ago, that the worst of it was over was a little off the mark. That's a potential 350,000 people who's jobs would be at risk if it went down.

Posted by crutchley @ 04:36 PM 2 Comments

Concluding part 2 of 2

ITV: Beating the property slump

Last time he renovated it - now he's trying to sell it.

Posted by inbreda @ 04:33 PM 0 Comments

who do you think talks the most sense, the wealthy guy or idiot in fed?

CNN: Buffett vs. Bernanke: The inflation showdown

Buffett, the billionaire investor behind Berkshire Hathaway (BRKA, Fortune 500), fingered "exploding" inflation Wednesday as the biggest risk to the economy. "I think inflation is really picking up," Buffett said on CNBC. "It's huge right now, whether it's steel or oil," he continued. "We see it everywhere."

Posted by mark @ 04:19 PM 6 Comments

tongue in cheek.

No surprises..

BBC: Fed keeps US rates steady at 2%

Looks like the Fed are stuck between the rock and a hard place... I won't bother sticking a post on this one, because the number boffins will have a closed group discussion. tip- if you have no banking history, don't expect a proper reply in this blog. Your valid leymans argument will be completely ignored..

Posted by george monsoon @ 03:04 PM 4 Comments

Hamptons latest - true or false?

mortgagestrategy: Hamptons see 40% rise in capital's rental stock

Residential agent Hamptons International is seeing a marked increase in available rental properties across the capital with a 40% rise in rental stock. Areas such as Chelsea and Tower Bridge are seeing rental stock increase by up to three times as much as the levels experienced this time last year. Hamptons says rental stock is soaring as a result of would-be buyers renting out their property while waiting for the sales market to pick up.Kate Whotton, regional lettings director at Hamptons International, says: The aftermath of the credit crunch has caused some interesting changes to the lettings market.

Posted by jack c @ 02:47 PM 9 Comments

something to aspire to?

daily male: what credit crunch

i guess some are just beyond the tentacles of hpc uk

Posted by camping @ 02:40 PM 0 Comments

The Understatement of the Century

Telegraph.co.uk: Mervyn King: Expect a 'one-year pause' in living standards

Bank of England Governor Mervyn King warned Britons to expect a "one-year pause" in the growth of living standards as rising energy and food bills continue to tighten their grip on household incomes. Mr King also signalled that this year's jump in petrol and food prices left the Monetary Policy Committee little room to cut interest rates from 5pc, and that rates may need to rise should inflation spread across the wider economy, particularly to wage demands.

Posted by plato @ 02:14 PM 9 Comments

A rigged market in oil?

Casey Research: Where have all my commodities gone?

Assuming that the 7.3 million new car owners in 2008 each drive 5,000 miles a year, and they achieve 40 miles per gallon, the result would be an additional 45.6 million barrels of crude demand, equivalent to 125,000 bbl/day. In other words, new Chinese drivers will devour 25-30% of the recently promised Saudi production increase in a single year. To those predicting an imminent decline in world oil demand, we say: don't bet on it.

Posted by cornishman @ 02:14 PM 5 Comments

Home-price declines will eat into boomer retirement nest eggs: report

MARKETWATCH: Housing crash hits baby boomers

The collapse of the housing bubble will likely have drastic implications on the wealth and retirement of certain baby boomers, according to a report Tuesday by the Center for Economic and Policy Research. The picture gets even worse if real home prices fall more. If prices, adjusted for inflation, fall 10% by 2009, the median household would see a 35% drop in wealth compared with the same age group in 2004; and if prices fall by 20%, there would be a 46% difference. Plus, many of these boomers are "going to be facing a mortgage payment well into retirement," Baker said. That's a shift from past generations: The major asset that most middle-income families in years past would bring to retirement was their home - and it was often paid off, the report noted.

Posted by malct @ 12:24 PM 16 Comments

City Boy unmasked

BBC News: City gossip columnist unmasked

For almost two years a City insider used a London newspaper column to dish the dirt on the life of excess enjoyed by many of his colleagues. Geraint Anderson, a former top stock analyst at a major investment bank, spoke to BBC Breakfast about his alter ago City Boy.

Posted by rental john @ 12:08 PM 1 Comments

The country will be turned inside out by higher energy prices.

daily reckoning: Boneheaded Miscalculations

Life on the edges of suburbia is beginning to feel untenable," says the Times. Like it or not, Americans are being forced to park their cars. This spring, they cut back on their driving at a sharper pace than anytime since 1942. But it's hard to stop driving when you live far from work and far from shops. The confidence level of suburbanites falls with their house prices. We have no proof, but our guess is that no houses are falling more than those built most recently, most far out. That's where homeowner equity is likely to be lowestand where the increased price of commuting hits hardest. That is where house prices ought to be most vulnerable. Potential buyers will simply add up the costs of commuting - in time and money - and subtract it from what they are willing to pay cont.

Posted by malct @ 12:04 PM 6 Comments

More on the Supply side to add to the slump in prices

Sky News: Millions Planning To Sell Their Homes

About one in eight homeowners are planning to sell their property in the coming year despite the current housing market downturn

Posted by doomwatch @ 11:56 AM 11 Comments

Title says it all really ....

thisismoney.co.uk: Hammered! Buy-to-let unravels

Want a cut-price, new-build dream apartment (albeit one overlooking a canal and the roof of the local B&Q store)? Looking to pay 100,000 less than the estate agent price of an identical duplex on the Thames? Then the Dauphin Suite of the Cafe Royal was the place to be. The losses on such former 'investments' were often dizzying - if they did sell at all.

Posted by uncle chris @ 11:53 AM 5 Comments

Only good thing the PM did was to make this bank independent

Thomson Financial: BoE's King sees significant drop in housing market activity

LONDON (Thomson Financial) - Bank of England governor Mervyn King said UK housing market activity is likely to slow markedly and it is very unclear how long it will be until a recovery sets is. Appearing before the Treasury Select Committee, King said house prices had reached a level that was difficult to rationalise and it is now very uncertain how far they are likely to fall, meaning people will stay away from the market.

Posted by landedgentry @ 11:25 AM 0 Comments

Carnage and gridlock on the radar....

Firstrung: Homeowners plannning a panic stampede in order to sell

One in eight homeowners are planning to sell their property during the coming year, despite the current housing market downturn, recent research from Alliance & Leicester has shown....Approximately 13% of people plan to put their property on the market during the next 12 months, the equivalent of 3.3 million homeowners, according to Alliance & Leicester. One in five people plan to carry out improvement work on their home in the hope of boosting its value or increasing its saleability. 50% of people said they would be carrying out work to improve their current property and avoid the expense and upheaval of moving.

Posted by converted lurker @ 11:07 AM 4 Comments

Memories: Thatcher on the EU

Youtube: Thatcher: "No! No! No!"

What people don't realise, this lady, was saying NO, whilst she was doing the opposite.

Posted by stevie dee @ 10:49 AM 0 Comments

Mervyn King briefing to Treasury Select Committee (TSC)

BBC Business: King confident on inflation fall

The governor of the Bank of England, Mervyn King, has told MPs he is confident that inflation will fall back to the government's 2% target. But an economic slowdown was needed to ensure inflation returned to the goal in the next year or so, Mr King said. He warned rising food and energy prices may push inflation above 4% this year. His Treasury Select Committee appearance comes a week after he wrote to the chancellor, explaining why inflation had hit 3.3%.

Posted by jack c @ 10:42 AM 9 Comments

Irish eyes not smiling

Irish Independent: Average house price down 30,000 year on year

New figures out yesterday showed that the average house price in Ireland was now down by almost 30,000, after prices fell by 9.5pc in the past year. And the fall in house prices accelerated in May, according to the Permanent TSB/ESRI house price index. The index shows that average prices fell by 1.2pc in May. This was a sharper fall than the 1.1pc reduction in April. Prices have now fallen by 4.4pc in the first five months of this year. And economists yesterday predicted continued sharp falls in house prices.

Posted by little professor @ 10:38 AM 0 Comments

Inflating away the debt crisis

MoneyWeek: Buy gold now, before they ban it

The good news for Ben Bernanke is he doesnt have to do anything as obvious as cut interest rates. Rising inflation does the job for him. Interest rates are already essentially negative in other words, people are being penalised for holding onto their money. Inflation erodes the value of the US consuemrs' debt. Inflation might be bad in the West, but its absolutely rampant in emerging markets. Vietnam has recently withdrawn licenses for further gold imports, after its citizens began to lose faith in the Vietnamese currency due to red hot inflation. The US confiscated gold in 1933. Vietnam is interfering with the market now. How high would inflation have to get in this country before we saw something similar?

Posted by little professor @ 10:33 AM 4 Comments

Cluttons (EA) predicting forced sales will begin making an appearance on the London market in the coming months as home owners come off fixed rates

mortgagestrategy: Forced sales to come on the market, says Cluttons

Cluttons is predicting that forced sales will begin making an appearance on the London market in the coming months as home owners come off fixed rates. The London-based estate agency says that the lack of City bonuses will also contribute to the trend as home owners realise they have overstretched their finances to buy property. Cluttons says sales of second homes are also set to increase at reduced prices, as owners sell before the market slips further.

Posted by jack c @ 10:32 AM 0 Comments

What the "smart" money are doing

Thomson Financial: UK Q1 business investment slumps by 1.8 pct vs Q4

LONDON (Thomson Financial) - UK business investment dropped sharply during the first quarter as the credit crunch dampens companies' willingness to invest, official figures showed.

Posted by landedgentry @ 10:19 AM 0 Comments

Will The Last Person To Leave, Actually Find Any Lights To Turn Out?

The Oil Drum: Europe: Why UK Natural Gas Prices Will Move North of 100p/Therm This Winter

Whichever way you look at it, life in the UK is going to become pretty dire over the next 5 years. Maybe the major parties should have nicked the Green Party's manifesto way back in 1986, instead of waiting 20 years - when it was far too late to act on it. 'The Oil Drum' is a great site - a highly recommmended read for what's happening, and why, with energy issues; no loony theses, just forensic number-crunching by people who know what they're talking about. Check out Chris Vernon's contribution, then backtrack to Euan Mearn's item for even more grim tidings. And for the inevitable individual who'll say 'but what's it got to do with house prices?', read them both - carefully.

Posted by lierbag @ 09:45 AM 22 Comments

Do they have something to hide ?

BBC News website: B&B puts block on Resolution move

Investment group Resolution, which wants to pump 400m into troubled UK lender Bradford & Bingley has been denied access to the bank's books.

Posted by angonamo @ 08:37 AM 12 Comments

London falling, so says Savills

ThisIsMoney: The house that lost 40% in four months

Lucian Cook, research director of Savills: The contraction of mainstream mortgage markets, which we have seen since February, together with the rise in the costs of mortgages, are now biting in London. Agents' stocks are three times last year's levels and sales are well down. Over the spring and early summer there has been a realisation that the credit crunch will have a lasting impact and that we are living with a completely different set of market conditions. So, even though affordability is not the main driver, prices have fallen much more rapidly over the past three months than in the early part of the downturn

Posted by confused76 @ 07:24 AM 8 Comments

Wednesday, June 25, 2008

Rates on hold all summer?

Times: Fed leaves key rate unchanged at 2%

America's central bank kept interest rates on hold at 2 per cent for the first time in a year as it warned that inflation will continue to rise. The rate decision came as Warren Buffett, the billionaire investor, warned that inflation in America is "exploding" and urged the Federal Reserve to remember its dual role of both nurturing economic growth and keeping costs stable.

Posted by alan @ 11:02 PM 2 Comments

OFFICIAL Press Release from ARLA: Rents are static

ARLA (Association of Residential Letting Agents): No Soaring Rents as Supply and Demand Levels Come Into Balance Quarterly ARLA Survey Shows

Average weighted rents for houses are down by 7% and for flats by 9%. ARLA says the main cause is the developments of new blocks of two-bedroomed flats coming on-stream. The average capital asset values of rented houses and flats has also fallen [by 3.1%]. 17% of all tenants are immigrants.

Posted by drewster @ 09:11 PM 9 Comments

Back door rate hike

The Times: Halifax hikes mortgage fees

Britain's biggest lender causes more pain for borrowers by adding to the cost of setting up a homeloan

Posted by matt_the_hat @ 07:40 PM 4 Comments

The bigger offensive of the Times ever!! Robert Mugabe is happy the Times seems to ignore him just to pound renters!!

Times: Rent squeeze: 'Flats would be gone as soon as they appeared'

"After dozens of disappointing viewings the couple had almost given up hope of finding any place at all" I can t believe that!! But wait... "They will move in August." What?!!

Posted by confused76 @ 07:17 PM 12 Comments

Uhm this seems to contradict some of the other articles

Find a new home.com: Rents On The Slide, Says Arla

As the latest survey from ARLA (Association of Residential Letting Agents) reveals, all was not plain sailing in the buy-to-let market during Q2 2008. With house prices falling and the supply of rental property stabilising relative to demand, rents and returns were on the slide

Posted by who stole my pension? @ 06:48 PM 1 Comments

Lets not miss the party on treasure island

BBC News: Three mortgage firms raise rates

Mortgage lenders Bradford & Bingley, First Direct and the Co-operative Bank have all raised the cost of their fixed-rate home deals.

Posted by matt_the_hat @ 06:34 PM 0 Comments

Today Countrywide, tomorrow "attractive takeover targets" UK Banks

bloomberg: Countrywide Sued by California Over Mortgage Loans

Countrywide Financial Corp., the mortgage lender that lost $2.5 billion amid rising defaults and foreclosures, misled borrowers into taking risky loans they couldn't afford, California Attorney General Jerry Brown said. ``Defendants turned a blind eye to the ongoing deceptive practices engaged in by Countrywide's loan officers,'' according to the complaint. ``Defendants cared only about selling increasing numbers of loans at any cost in order to maximize Countrywide's profits on the secondary market.''

Posted by mken @ 06:32 PM 0 Comments

New-build city-centre flats - prices are plummeting by up to 70 per cent

Times: The 10 worst property investments ever

The outlook for house prices suffered a further setback this week when the British Bankers Association reported that mortgage lending in May fell 56 per cent on the same month last year. The news came as it emerged that the average fixed-rate mortgage has now risen above 7 per cent. House prices have already fallen by 6.3 per cent through March, April and May, according to the Halifax, and most experts are predicting further falls over the months ahead.

Posted by jack c @ 05:59 PM 4 Comments

Where do I sign ?

BBC News: Dubai plans 'moving' skyscraper

The world's first moving building, an 80-storey tower with revolving floors giving a shifting shape, will be built in Dubai, its architect says. Thank god it's not over here.

Posted by angonamo @ 05:20 PM 3 Comments

So which is it?

FT: Insight: Commodities rally driven by fundamentals, not speculators

Writer says blame the Fed's low interest rate policy, not the players on the indexes or futures markets.

Posted by icarus @ 04:57 PM 5 Comments

Lenders are not only pushing up rates, but they are also increasing charges

Citywire: Lenders and developers hedge their bets in a falling market

The mortgage lenders have got homebuyers and their mortgage advisers over a barrel. With a shortage of funds in the market, lenders are imposing ever more impossible terms and conditions and pushing up charges across the board. Life is becoming increasingly difficult for brokers looking for a high loan-to-value (LTV) for their first-time buyer customers and others with a small deposit

Posted by jack c @ 02:53 PM 3 Comments

Great headline!

Evening Standard: Slump knocks 40% of price of home in four months

The six-bedroom Victorian house in sought-after Bedford Park, west London, went on the market in early March for 3.2 million. Since then, the collapse in interest from buyers has forced the sellers to cut the price, first to 2.6 million in April, then to 2.25million in May and finally to 1.9 million this month - a total reduction of 1.3 million.

Posted by mark wadsworth @ 02:39 PM 18 Comments

Some wishful thinking?

Citywire: Pent-up demand for houses could lead to sharp upturn

"Now may not be the best time to buy a home but it certainly isn't the worst. In spite of the dramatic slowdown in the housing market with house prices having lost virtually all the gains of the past 12 months, evidence is beginning to emerge that when confidence returns to the market, the upturn could be sharp, releasing considerable pent up demand from buyers."

Posted by w smith @ 02:37 PM 1 Comments

Illinois to sue Countrywide; BofAs big tax break

CNN: Illinois to sue Countrywide; BofAs big tax break

There are some new wrinkles in Bank of Americas (BAC) plan to buy struggling mortgage lender Countrywide (CFC). Illinois attorney general is planning to sue Countrywide

Posted by mark @ 01:50 PM 0 Comments

BTL Apocalypse

Daily Mail: Hammered: What it is like to see your buy-to-let nest-egg being sold off for less than half you paid for it

A famous party venue for 140 years, the Cafe Royal is perhaps an unusual location for a wake. But yesterday, several hundred people gathered under its crystal chandeliers to mark a further nail in the coffin of the property boom.

Posted by a_landlord @ 01:33 PM 2 Comments

The gloomiest news yet... millionaires lose a fortune

thisismoney: The house that lost 40% in four months

This is brilliant - a six-bedroom Victorian house in west London went on the market in early March for 3.2m. They've had to cut the price to 1.3m. So were they greedy owners or greedy estate agents?

Posted by n lamont @ 01:32 PM 0 Comments

House Repossessions In Lincoln Up 45 Per Cent

Lincolnshire Echo: Main article

Richard Dale, of Dale and Co Solicitors based in Beaumont Fee, Lincoln, said: "It's an indication of the downturn in the economy. "Because of this the borrower may not have any money and then people are likely to have their homes repossessed. "Many people were previously lending like mad and now some people are suffering. "It's very worrying if this becomes a trend and what the figures don't show is the amount of human tragedy."

Posted by swisstoni @ 12:53 PM 0 Comments

The proBTL media offensive is in full swing

Times: Smart landlords are snapping up desirable properties

"Amateur landlords who borrowed wisely and put their money into well-located properties, with tenant-pleasing features, such as proximity to public transport and neutral decor, are doing OK, thank you." We should have pity of people like Anne Ashworth who will never financially recover for having bought overpriced properties in 2005, 2006 and 2007. Yeah, rents are going up and so are mortgage rates, but capital value is falling, renters are doing OK, thank you!

Posted by confused76 @ 12:10 PM 16 Comments

massive losses in the mortgage-backed securities boondoggle

information clearing house: Gas-Pump Gouging; Just Don't Blame The Saudis

This is not about shortages or scarcity; it's about gaming the system to fatten the bottom line. The whole scam is being executed with excruciating precision by the same carpetbagging scoundrels who engineered the subprime fiasco; the investment bankers. The Wall Street Goliaths are using the futures market to recapitalize their flagging balance sheets after sustaining massive losses in the mortgage-backed securities boondoggle. That's the whole thing in a nutshell. Now they're on to their next swindle; distorting the futures market with humongous leveraged bets on food and oil. So its not really Big Oil or "greedy Arabs" after all? Nope, it's the cutthroat banksters again. WHAT HAPPENED IN JIDDAH

Posted by malct @ 12:00 PM 25 Comments

Law lords vote down our right to Lisbon Treaty vote

Stuart Wheeler: Unfortunately we have lost

This is extremely important to houseprices. At least at the moment, we have a Bank of England, that can set interest rates for our domestic needs. They can still be reigned in by our treasury. In Europe, Germany is starved of credit, whilst Spain is flooded in it. A central bank to rival the Federal Reserve, taking decisions for corporate needs, without reference to national requirements. The Lisbon Treaty gives precidence to European Law over British Law, effectively meaning that the Europeans could legally push us into the Euro without the consent of the British people. "- Judgement was given this morning and unfortunately we have lost, but I am thinking very hard what to do. There will be further information on the website later today."

Posted by planning4acrash @ 11:56 AM 19 Comments

There is much more money being put to work by hedge funds now

independent.co.uk: Revealed: Hedge fund managers betting on plunge in bank shares

The American hedge fund group Harbinger Capital Partners revealed that it has made a significant bet on HBOS's price falling, while its UK counterpart GLG admitted it is targeting the rival mortgage bank Bradford & Bingley, as investors were forced yesterday to disclose their short positions to the market for the first time.

Posted by malct @ 11:54 AM 3 Comments

Beware the Land of Leather Fallacy

Reuters: Investment unmasked as consumption as UK pops: James Saft

Think of it as the "Land of Leather Fallacy, " after the British furniture company now coming to grief due to people no longer thinking that buying a lemon yellow L-shaped sofa will be repaid with a higher house price or is part of a viable buy-to-let retirement plan

Posted by edna freefall @ 11:32 AM 1 Comments

Crash NOT crunch

telegraph.co.uk: Now we know this is a real property crash

Now we know this is a real property crash Edmund Conway, Economics Editor Last Updated: 2:38am BST 25/06/2008 Even the gloomiest commentators have been taken by surprise by the relentless flow of bad news about the property market. Every week seems to bring another dismal statistic. But if ever confirmation were needed that this is no longer a housing slowdown but a full-blooded crash, it has arrived with the British Bankers' Association mortgage approvals figures. When people stop borrowing, a fall in house prices will follow as surely as night follows day. Even the most level-headed economists predict falls of 20 per cent or more.

Posted by housebear @ 11:18 AM 9 Comments

Scotland to drop 20- 25%

Herald: Grim picture for housing market in loan approvals

Fresh mortgage approvals for house purchase in the UK plummeted even further to yet another record low in May, according to industry figures yesterday which point to prolonged weakness in the residential property market.

Posted by tehlam3 @ 11:14 AM 0 Comments

Yes! the outlook is good, they are going down Mr Law

mortgage introducer.com: Outlook good for house prices

Stuart Law, chief executive of Assetz, commented: We are in a period of weakness, not a crash, and vendors are more easily negotiated with, provided they are a forced seller. I would recommend that investors take advantage of the current market and continue adding to their portfolio by buying from motivated sellers.

Posted by housebear @ 11:12 AM 11 Comments

The tide is high

Money Week: Why it will be a long wait for the tide to turn

Readers will know that we regularly use the phrase, the tide is going out as a simile for the credit contraction. For asset markets ever to recover, which they eventually will, that process of the tide going out has to end. Premature talk of a market bottom, as occurred in March this year, has no merit or relevance to the utter reality that the tide has nowhere near finished going out.

Posted by housebear @ 11:08 AM 1 Comments

Tis but a scratch said the dark knight .

FT Adviser.com: UK house prices to rise again, says Assetz

The declining market for start-up homes will force UK house prices up, according to property investment advisers Assetz. Stuart Law, the chief executive for Assetz, said: "Recent research has suggested that new home starts will fall to dangerously low levels this year, with only 110,000 new homes to be built by the end of 2008, less than half those cited by Gordon Brown as necessary to meet demand.

Posted by housebear @ 11:03 AM 8 Comments

A Depression Not A Recession Is Coming

financialsense: The United States Fiat Money

AN ECONOMIC COLLAPSE IS HAPPENING Darryl Robert Schoon Central banks are the mechanism by which societys productivity is drained and indebted. Credit-based money issued by central banks turns into debt, debt which immediately begins to accrue compounding interest paid by productive members of society, e.g. workers, businessmen, farmers, savers and taxpayers. The interest, of course, is paid to bankers, non-productive members of society. also on reddit silobreaker kitco digg and goldseek - http://www.survivethecrisis.com/ and 321gold

Posted by malct @ 10:59 AM 1 Comments

Hurtling into a crash

Guardian: Squeeze, crunch, crisis - next stop crash

"The fact is we are no longer in a downturn, we are hurtling into a crash."

Posted by letthemfall @ 09:25 AM 13 Comments

Expect more fraud to crawl out

Telegraph: Hard times are back, and so are the fraudsters

Shades of the 1990s and the end of Thatcherism.

Posted by letthemfall @ 09:19 AM 0 Comments

Desperate for cash

FT: "Not a rights issue," but Barclays raises 4,5 billion

Barclays today announces it is to issue 1.4bn new shares at 282p-a-share, a discount of 9.3 per cent, with the aim of raising 4billion in cash. It will also sell stakes in itself to Qatar, China, Singapore and Japan. Unnamed institutional investors have agreed to provide another 1.34bn

Posted by little professor @ 08:42 AM 2 Comments

VI renting spin from The Times

The Times: First-time buyers trapped by rent rises

"Monthly bills for a rented home have risen by an average 11.7 per cent across Britain in the past year, according to research from Paragon, a buy-to-let mortgage lender." Hmm ...

Posted by quiet guy @ 08:23 AM 16 Comments

Hmmmm

BBC: Barclays to sell 4.5bn of shares

Barclays has said it will raise 4.5bn ($8.8bn) in a share issue to bolster its balance sheet. The firm has sold shares to new investors such as the Qatar Investment Authority, and existing shareholders including China Development Bank. Barclays said the fundraising move would "strengthen its capital base".

Posted by stevie dee @ 08:00 AM 0 Comments

Essential Auction News - June newsletter that reviews auction activity for May 2008

Essential Information Group: Essential Auction News

David Sandeman of EIG was speaking on BBC radio for the North this morning and stated that Riverside flats in the Newcastle upon Tyne area have been selling at auction at around 50% off the price paid approximately 2 years ago. The regional figures make very interesting reading ! "Continuing market conditions have seen the overall sales rate slip 3 points from last month to 56%. It should not be forgotten however that the auction process did sell over 2,100 lots in May, no mean achievement in this market"

Posted by jack c @ 07:57 AM 4 Comments

Rates rise to more normal levels

mail: Lenders send two-year fixed loan rates soaring past 7% for first time in a decade

''...The average rate on a two-year fixed loan has jumped above seven per cent for the first time in more than a decade, it was revealed today. The devastating research, from the financial information firm Moneyfacts, highlights the nightmare facing homeowners who need to remortgage this year. Lenders are charging crippling rates of interest, piling pressure onto cash-strapped families already struggling with record household bills...''

Posted by hpwatcher @ 05:31 AM 4 Comments

Coming here soon

Times: Fears for US consumption as house prices fall 23%

House prices in the US have fallen by almost 23 per cent over a three-month period and a decline in American consumer confidence is seen as signalling the biggest drop in consumption to occur since 1974. Wall Street economists described the data as incredibly awful and said that the likelihood of the US Federal Reserve raising interest rates is remote. According to the S&P Case-Shiller house price index, considered the most authoritative gauge of US property values, the price of the average American home fell by 1.4 per cent in April, from March, and fell by 22.8 per cent over a three-month period.

Posted by little professor @ 12:49 AM 15 Comments

SOUTH-EASTERN Australia is close to recession, with growth in spending likely to slow to about 1% and business investment falling 5% as high interest rates drive down economic activity, Westpac is warning

the age: Boom talk followed by gloom

The ANZ has also forecast a two-speed economy, predicting in April that Victoria's output would grow just 1.5% in 2008-09.Victoria's Treasury, however, has boldly forecast growth of 3%, virtually a normal year.Mr Evans said that in past slowdowns, housing construction had taken the brunt of the slump in demand. This time, construction was already so low relative to underlying demand that most of the slump would be felt in business investment and consumer spending. Westpac predicts that in the south-east, growth in household spending will slow from 4.3% last year to 2.4% in 2008 and 2009. Business investment, which grew 5% last year, will shrink by 5% next year.

Posted by big chris @ 12:35 AM 0 Comments

Tuesday, June 24, 2008

Industrialist to head Revenue & Customs

FT.com: Industrialist to head Revenue & Customs

"maximise revenues"

Posted by whiteknight @ 11:52 PM 5 Comments

Sharks smell blood

Independant: Resolution moves to seize control of Bradford & Bingley

Resolution launched a dramatic bid last night to gatecrash the financial restructuring package announced this month by Bradford & Bingley, with a deal that would see it take control of the mortgage lender

Posted by alan @ 10:23 PM 0 Comments

Let's do the timewarp again...

Moneyweek: Are we heading for a house price crash?

...to Oct 2007, back to what seems like a lifetime ago (last October). I particularly like James Ferguson's laying into one our our favouriteZ on the panel. By the way, last house price round table at Moneyweek (Jun 2008), John Wriglesworth now says "down 25% over three years". He's getting better at it, close but no 'Elvis' The Blog Monster won't let me post the link as it's in the archive elsewhere... http://www.moneyweek.com/file/36191/are-we-heading-for-a-house-price-crash.html

Posted by arseburger @ 09:41 PM 10 Comments

Please can we have some more sir?

Mirror.co.uk: Home loan approvals dive to record low in May

New home loan approvals nosedived at their sharpest annual pace in at least a decade to hit a record low in May, figures showed on Tuesday, raising fears the housing slowdown is about to escalate into a crash.

Posted by housebear @ 09:40 PM 0 Comments

Don't Panic!!!!!

ITN: Further house price crash fears

Home loan approvals have nosedived at their sharpest annual rate to hit a record low in May, fuelling more fears of a house price crash. As house prices fall at monthly rates not seen since the slump of the early 1990s, the number of mortgage approvals accepted by the UK's biggest banks dropped to 27,968 during the month from 34,752 in April.

Posted by housebear @ 09:36 PM 0 Comments

Stuart Law, chief executive of Assetz, said: "We are in a period of weakness, not a crash

onlyfinance.com: House prices appear to be falling

House prices in the UK, grew by 0.3 per cent during the year to May 2008, but this signalled a decline in the annual growth rate recorded in April 2008 of 1.7 per cent, according to property investment firm, Assetz.

Posted by housebear @ 09:34 PM 9 Comments

Win a tennis match with Tony Blair

Labour Party: Celebrating the future of sport with Labour

Some great prizes to be won here, "to help raise funds for Labours campaign to fight and win the next General Election". If a tennis match with Tony Blair is not enough to whet your appetite then maybe Tea with Nancy DellOlio at Claridges or the chance to be a character in Alastair Campbell's new novel will float your boat. Yes I know it is of little direct relevance to HPC but it made interesting reading.

Posted by denzil @ 09:05 PM 9 Comments

We are "Crap" declare Labour Ministers, backbenchers and party activists

Times: Who will finish off Gordon Brown? Follow the money

With the Labour party being close to bankrupt it would appear that things can only get worse with cash donors reported to have become reluctant to hand over any cash whilst Gordon Brown is still in charge. One wealthy benefactor is reported to have said, "I'm not going to give them any more money while Gordon Brown is leader". The report also backs up my own belief that Brown is currently announcing "popularity" policies to appease both the Left and the Right but is simply making himself look clueless, Gordon says one thing to please the Left, another to please the Right but there's no overriding message.

Posted by denzil @ 08:45 PM 0 Comments

Consolidation or market manipulation?

Myfinances: HSBC takeover rumours boost UBS shares

Rumours HSBC could announce a takeover for UBS sent shares in the Swiss bank higher in morning trading. UBS stock rose almost four per cent this morning on speculation HSBC is planning an $80 billion (40.7 billion) bid for the bank.

Posted by rental john @ 08:02 PM 0 Comments

Bradford & Bungle

Myfinances: Bradford & Bingley takeover bid launched

Bradford & Bingley faces a takeover bid, weeks after announcing a fund deal with US investors and a rights issue. Resolution the investment vehicle of entrepreneur Clive Cowdery yesterday launched an audacious bid to assume control of Bradford & Bingley.

Posted by rental john @ 07:59 PM 0 Comments

Straight-talking hard-hitting truth

BBC: Falling House Prices - Merryn Somerset

Yesterday I posted an animated video. This one is real, sensible and more hard-hitting. Please watch and comment.

Posted by new_order @ 07:12 PM 16 Comments

A Further Nail in the House Price Coffin

Guardian: Household fuel bills could rise 40%

Energy prices eventually filter down to everything, house prices can eventually only ever reflect what people can Afford to Pay, after all what is the use of buying a house if you cannot afford to heat it!

Posted by enuii @ 07:09 PM 4 Comments

16% fall in house prices in 20 US metros

... and if even the Times says that, you better believe it

Times: Sell sooner rather than later!

"Capital Economics is a notable bear, however, and has been proved wrong in the past. Even normally bullish commentators still recommend acting sooner rather than later, though. Martin Gahbauer, senior economist at Nationwide said: There is a tremendous amount of uncertainty at the moment. If you are already thinking of downsizing it would be better to do it sooner rather than later.

Posted by confused76 @ 03:51 PM 3 Comments

The Celtic Pussycat is heading for the litterbox.

Irish Independent: We blew the Boom

During a fifteen-year boom in house prices, construction and consumption, the Irish government has squandered its tax revenues (and quite a bit of European Union largesse), and is ill-prepared for the next few years of recession: "In a devastating economic analysis, the Economic and Social Research Institute (ESRI) forecast the first recession in the Irish economy since 1983. Outlining gloomy prospects for the economy over the next few years, the ESRI said output of goods and services will fall this year -- an Irish definition of recession. ... The main culprit is still the collapse in house construction, which has plunged from 75,000 units last year to just 30,000 next year. This fall is so serious, it wipes out all the growth in the rest of the economy. "

Posted by brian t @ 03:41 PM 12 Comments

Ouch! Thats gotta hurt!

Timesonline: Lenders send two-year mortgage rates through 7%

Homeowners are at risk of paying nearly 35 per cent more in monthly interest payments after the cost of a two-year fixed-rate mortgage rose above 7 per cent. Borrowers now face interest-only repayments of 875 a month on a 150,000 two-year fixed-rate loan, according to new research from Moneyfacts.co.uk. Just two years, monthly repayments on the same loan on a 4.59 per cent deal that was available at the time would have been 34.3 per cent lower at 574

Posted by flintster1994 @ 02:41 PM 8 Comments

Now will the sheeple stop buying houses??

reuters.com: Home loan approvals dive to record low in May

Two thirds of Britons own their homes, putting millions at risk of negative equity -- when the house value falls below its mortgage -- if house prices crumble. However, that may be a way off yet, given that prices trebled over the last decade. TOUGH TIMES While soaring commodity prices across the globe have forced inflation to the top of the political agenda and convinced financial markets that interest rates are heading higher, most economists expect rates will eventually have to fall.

Posted by housebear @ 02:31 PM 3 Comments

This time from an EA!

Thisismoney: London house prices set to drop by 25%

It was Savills' most negative outlook yet for the housing market and fuelled fears Britain is heading towards a crash. Economists are warning interest rates may rise this summer - pushing the price of mortgages ever higher.

Posted by pendulum @ 02:13 PM 10 Comments

Even King Canute would have baulked at this ...

Evening Standard: Reduce rip-off mortgage fees, Darling tells banks

Of maybe The Goblin King realised he'd made a complete fool of himself at OPEC recently and wanted The Badger to take some of the heat...?

Posted by mark wadsworth @ 02:07 PM 2 Comments

Time to buy the yuan and rupee then

Evening Standard: City 'must move to stay ahead'

London will lose its status as the world's top financial centre unless urgent action is taken, Boris Johnson's new City adviser says today. Bob Wigley, a senior Merrill Lynch banker and leader of a new protection squad assembled by the Mayor, has warned that changes are needed to prevent complacency and keep the capital at the top of its game. He says his team, comprising London's most important finance chiefs, will look at expanding markets in the Middle East and other international centres to measure the City's success.

Posted by landedgentry @ 01:49 PM 2 Comments

From coke to prozac

Evening Standard: Slump gives City mental health crisis

More City workers are suffering mental health problems because of extreme stress caused by the credit crunch, it was revealed today. Clinics serving the City are reporting a huge rise in calls from bankers and traders facing the threat of redundancy

Posted by landedgentry @ 01:38 PM 5 Comments

Stocks head for lower open as oil prices rise, UPS warns on profit ahead of Fed meeting

Yahoo: Stocks head for lower open ahead of Fed meeting

U.S. stocks headed for a lower opening Tuesday, as investors winced at rising oil prices and a UPS Inc. profit warning ahead of the Federal Reserve's rate-setting meeting. Energy prices show few signs of waning, leading to worries on Wall Street that high fuel costs will prevent the economy from growing and aggravate inflation at the same time. Light, sweet crude rose $1.01 to $137.75 a barrel in premarket electronic trading on the New York Mercantile Exchange.

Posted by stevie dee @ 12:38 PM 1 Comments

Soon they'll be agreeing with me!

Telegraph: House prices to fall more than 25pc as BBA warns on mortgages

The predictions get bigger and bigger! When they say 'more than 40%' they will be somewhere nearer the mark!

Posted by uncle tom @ 12:37 PM 12 Comments

Erm... WTF?

FT: Buy-to-let continues to boom

Demand for rented accommodation boomed in May, according to new data from estate agent Your Move. The UK lettings agent found that lease commencements were up 41 per cent in May 2008 from May 2007. Managing director of Your Move estate agents, David Newnes, said Buy-to-let will grow this year. Opportunities to invest are ripe for professional landlords able to secure financing. With rising tenant demand comes rising rents, buy-to-let yields will consequently improve. House prices are under pressure at the moment, and theres scope for buy-to-let investors with collateral to get good deals to expand their portfolios.

Posted by little professor @ 12:27 PM 23 Comments

Fred Harrison Bypasses Authority and Tells It Straight...

Renegade Ecnomist: We'll All Pay a High Price for Boom and Bust...

Harrison has had enough of consulting 'experts' and is now focusing his time on educating the public to the way the system actually works. His forecast of the present crisis was originally published in 1997 just as New Labour was taking over in Downing Street. He flagged the warning again in 2005. He told Gordon Brown and Tony Blair what was going to happen - they didn't listen. The responsibility now lies with the public to wise up.

Posted by neo-serf @ 12:07 PM 7 Comments

I thought the tiger economies were immune to the West's problems - NOT!

Economist: China's property bubble is about to burst

The sizzle is off China's property markets, and that's potentially bad news for the country's social stability.

Posted by rental john @ 12:04 PM 2 Comments

How low can this go??

Firstrung: Mortgage approvals for house purchases reaches a record low and falls 57% year on year

May's mortgage lending was much weaker than April and a record low number of house purchase approvals means the subdued picture will continue. Mortgage approvals for house purchase fell 56.8 percent on the year in May to a record low of 27,968, the British Bankers' Association says...Consumer credit rose, largely reflecting lower credit card repayments and, after April's strong inflow, personal deposit growth was weaker in May.

Posted by converted lurker @ 11:51 AM 4 Comments

Why shares in HBoS could fall yet further

MoneyWeek: Why shares in HBoS could fall yet further

With the FSA's new short-selling rules prompting investors to desert HBoS in their droves, and the parlous state of the UK property market, who in their right mind would take up the bank's rights issue now?

Posted by damien @ 10:56 AM 5 Comments

New evidence....orchistrated boom....orchistrated bust

The Telegraph: Speculators' domination may fuel oil price rises

The oil market is now dominated by speculators who account for almost three quarters of its activity, new evidence has shown.

Posted by sold 2 rent 1 @ 10:22 AM 38 Comments

What about their huge 100%, 25 year mortgages?

Mail: City bosses 'ready to cut 440,000 jobs' as economic slowdown hits bank profits

''...Employers are preparing to cut hundreds of thousands of jobs as the economic slowdown hits their profits, two studies show. One found that up to 440,000 workers could be made redundant in the next two years as bosses try to contain salary costs. ...''

Posted by hpwatcher @ 10:13 AM 7 Comments

"House prices have already started to fall at monthly rates not seen since the slump of the early 1990's"

Reuters: Mortgage approvals dive to record low in May

LONDON (Reuters) - Mortgage approvals fell at their sharpest annual pace in at least a decade to hit a record low in May, a survey showed on Tuesday, raising fears the housing market slowdown could turn into a crash. The British Bankers' Association said mortgage approvals for house purchase -- an indicator of house prices in the future -- fell to 27,968 last month from a downwardly revised 34,752 in April. That translated into a 56.1 percent drop on the same period a year ago -- the biggest such fall since the survey began in September 1997.

Posted by jack c @ 10:09 AM 11 Comments

Lowest loans since records began

BBC News: Bank mortgage lending falls 20%

It seems some of you lot are not purchasing properties. Lowest loans since records began (well until next month). You are subduing the market you naughty people.

Posted by driver @ 10:00 AM 0 Comments

More action on Mortgage fraud now it's all gone wrong

BBC News: FBI promises more fraud arrests

A senior FBI officer has told the BBC that more arrests will be made as part of its probe into mortgage fraud and the credit crunch. Section chief for Financial Crimes, Sharon Ormsby, said hundreds of arrests already made were just a "good start". More than 400 US real estate brokers have been arrested and charged with fraud in the past few months.

Posted by crutchley @ 08:20 AM 4 Comments

Buyer's market?

Finance Markets: One million homes for sale in England and Wales

"With buyers in short supply, there are now approximately 15 properties for sale for every prospective purchaser."

Posted by cornishman @ 07:37 AM 3 Comments

Trashed foreclosures in Orange County, California- this is the reality.

Orange County Register: The real foreclosures of Orange County

Formerly $600,000 homes are now vacant and coated in graffiti- and up for auction at $89,000. See an amazing slideshow of the economic and physical destruction.

Posted by tom stevens @ 06:02 AM 4 Comments

Offbeat but none the less it won't help sell houses

Daily Telegraph: Manchester more dangerous than New York said American gunman

An American visitor who fired a handgun in Manchester persuaded a court that he was carrying the weapon because the city was more dangerous than his native New York. And the BTL still want 300k for their two bed flats!!!!!!!!

Posted by who stole my pension? @ 05:03 AM 4 Comments

25% of people would but now if they could get a mortgage

Find a New Home.com: Right Time To Buy? One In Four Say Yes

The Building Societies Association new Property Tracker survey has yielded some surprising results. When asked if now was a good time to buy residential property, the majority of respondents (51 per cent) unsurprisingly declared that it wasn't. However, a not inconsiderable 27 per cent failed to be discouraged by gloomy forecasts and prophecies of interest rate rises and a general recession. However, the top reason for buyers not biting wasn't the threat of further house price falls (that polled 46 per cent of the vote) but the inability to afford monthly mortgage payments. A massive 70 per cent of people could not afford the heightened rates offered by lenders on top of their other growing expenses.

Posted by who stole my pension? @ 04:07 AM 16 Comments

A mighty hangover.....

Mail: Property market slumps by 40% in a year while fall in house prices in London is fastest in UK

''...The number of properties sold has tumbled by 40 per cent in a year. In May, only 100,000 homes and offices which had been put up for sale found a buyer, according to HM Revenue and Customs....''

Posted by hpwatcher @ 03:18 AM 4 Comments

Monday, June 23, 2008

What goes up fastest...

This Is Money: New-build property prices plunge 26%

Once seen as a sure-fire way of making a small fortune, newly-built flats have become the worst victims of the housing market meltdown. Prices of new-builds in city centres have collapsed, with many sold at auction for a fraction of their value only two years ago.

Posted by garyb @ 11:32 PM 1 Comments

Against the run of play, surely?

Standard: Steel tycoon buys third property on Billionaire's Row

Lakshmi Mittal, Britain's richest man and a prominent Labour Party donor, has bought his third property in London's most expensive street for 70 million. In March 2008, Mittal was named as the world's fourth wealthiest person by Forbes Magazine. His family owns 44 per cent of steel giant Arcelor Mittal.

Posted by alan @ 09:19 PM 7 Comments

Very funny but something to think about

YouTube: A Post-Oil Man

Sometimes a very serious point can be made clear by a funny animated video. Please watch and comment.

Posted by new_order @ 08:08 PM 2 Comments

HBOS shares being openly shorted

BBC Business: HBOS share price dealt new blow

A 4bn call for cash by HBOS has come under more pressure after the banking giant's shares dropped beneath the rights issue asking price. Existing shareholders can buy at a "discount" price of 275p per share - but they fell 4.3% to 270.5p. The drop came after a US hedge fund revealed that it had "shorted" the firm's shares - essentially betting that they would fall in value. Under new rules investors in this position must declare their interest. Analysts said that the share price had also been dented as a result of investment bank UBS predicting that HBOS would see mortgage arrears continue to rise into the second half of next year.

Posted by jack c @ 07:47 PM 4 Comments

There will be millions of forced sellers this year

Times: Sellers spend thousands to shift their home

"Even within the current climate, there are still millions of people who are looking to move and they are doing all they can to get the best price for their property of course! to be forced to sell suffices that people have to move, change job etc. The idea that only being unable to service the mortgage is a reason to be forced to sell is wishful thinking

Posted by confused76 @ 06:48 PM 5 Comments

Oooops, poor cash-rich oil-laden foreign buyers!

ThisIsMoney: London property falling faster than rest of UK

"vendors are at last realising overpriced homes will not attract buyers and that the capital's property market is not resilient to the credit crunch, while supporting predictions of substantial price falls to come"

Posted by confused76 @ 06:37 PM 0 Comments

Tip of the iceburg? Too right!!!

Mortgage Solutions: FSA bans East London brokers for mortgage fraud

The FSA has banned three East London brokers for submitting false mortgage applications to lenders backed by false or misleading documents. The brokers are Muhammad Adnan Ashraf and Muhammad Asim Iqbal, directors of OCS Property and Financial Services Limited (OCS) of Barking, and Mohammed Atif Mayo, a director of Mac & Mayo Property Services Limited of Forest Gate.

Posted by rental john @ 06:15 PM 1 Comments

Wrong - depressed by buyer issues!

Hotproperty: UK housing market 'to be bolstered by supply issues'

The comparative supply situation means the UK will not suffer the kind of large falls in house prices the US is facing, entrepreneur Donald Trump has said. *** More likely his is trying to protected his vested interests in Scotland!

Posted by rental john @ 06:10 PM 1 Comments

...

Guardian: Cowdery in bid for Bradford & Bingley

Major City investors in Bradford & Bingley have joined forces with financier Clive Cowdery to take over beleaguered buy-to-let lender Bradford & Bingley.

Posted by rental john @ 06:02 PM 0 Comments

Dishonest and Manipulative

times online: Sacked estate agent jailed for torture of former boss

Judge Taylor told her: Throughout this case you have shown little remorse, and consistently shown yourself to be dishonest and manipulative, prepared to do or say anything to save yourself even writing to Mr Malik to try and get him to change his mind about pursuing this case.

Posted by sold out @ 05:39 PM 7 Comments

Eastern European workers leave Britain, no effect on rental demand?

Reuters: In parts of Europe, migrant workers head home

British government data show that work applications from the eight east European countries that joined the EU in 2004 were down 13% in the January to March period from last year. "The Polish zloty has appreciated by about 40% against the British pound since 2004. Given the cost-of-living differential between the two countries it makes little sense to be an economic migrant now in the UK," said Michael Dembinski of the British-Polish Chamber of Commerce. Poland's economy grew by 6.1% in the first quarter of 2008, Slovakia's by 8.7% and the Czech Republic's by 5.4%. Britain, battered by a global credit crunch and tumbling house prices, is expected to grow by just 1.8% in 2008. Polish corporate sector wages were up 12.6% in April from a year before.

Posted by drewster @ 05:11 PM 3 Comments

Double-digit falls for two years

Times Online: Housing slump forces sellers to slash prices

Nice article and a "get real" feel from RICS ended with Global Insight predicting double-digit drops this year and next.

Posted by growler @ 04:42 PM 3 Comments

Darlings words of wisdom have been adhered too.. NOT!!!

BBC: Council workers vote for strike

Council workers have voted in favour of industrial action in a dispute over pay, the union Unison has announced. Members in England, Wales and Northern Ireland voted by 55% to strike, after rejecting a 2.45% pay offer. Unison general secretary Dave Prentis said this was "a clear message" to employers "that our members are willing to fight for a decent pay rise. I personally know about two people who are members and they are really struggling. They deserve every penny!!!!

Posted by stevie dee @ 03:19 PM 6 Comments

Is this going to be part of the new certification process for EAs?!

Yahoo - Sky News: Sacked Estate Agent Tortured Her Boss

An estate agent who hatched a brutal revenge plot against her boss after being sacked has been jailed for 10 years. (Advertisement) Ambreen Gul, 23, lured Waqas Malik to her flat where he was tortured and ordered to raise a 200,000 ransom or be killed with his son. She had recruited another sacked colleague and two other thugs to make him pay for her dismissal

Posted by stevie dee @ 02:42 PM 14 Comments

Paragon stake early claim for comedy club champions of June 2008

mortgagestrategy: Rental yields highest for two years

Paragon Mortgages has revealed rental yields have hit their highest levels for more than two years, in its latest buy-to-let index. Paragon says landlords rental incomes have risen nearly 12% in the past year and 6% during the past six months. Meanwhile, property values have risen 7.5% year-on-year, although by just 0.2% over the past six months.

Posted by jack c @ 01:30 PM 18 Comments

There are now far more sellers than buyers

BBC: Figures show plunge in home sales

The number of UK property sales has fallen by 32% this year, according to HM Revenue and Customs (HMRC). There were 504,000 sales in the first five months of 2008 that were worth more than the new stamp duty notification limit of 40,000. That compares with 743,000 such sales in the same period last year. Meanwhile some big lenders have again put up the cost of their mortgages for new borrowers, with the Halifax and Lloyds TSB raising interest rates.

Posted by jack c @ 12:02 PM 13 Comments

70% off

Evening Standard: Recession UK

New-build flats have lost up to 70% of their value.

Posted by jd @ 11:47 AM 3 Comments

Citi poised to fire thousands

CNN: Citi poised to fire thousands

The Journal, citing people familiar with the matter, said the layoffs are part of a plan to cut about 10% of the staff of the 65,000-member investment-banking group.

Posted by mark @ 11:46 AM 0 Comments

New build scam

The Mail: The 238,000 flat that has lost 70% of its value in two years

There are hundreds of examples of similar disasters, according to David Sandeman, managing director of the auction experts Essential Information Group.Mr Sandeman added: People believed all the hype and the marketing that they would be able to rent out their flat for 1,200 a month to a professional couple. They could only actually get 800 a month renting it out to students who have trashed it. Well that's what happens when you believe that the wind can't blow away a house of cards.

Posted by sovietuk @ 11:44 AM 18 Comments

State, city layoffs: 45,000 and counting

CNN: State, city layoffs: 45,000 and counting

There are nearly 20 million state and local government employees in the country. So a 1% decline in employment at cities, towns, schools and states would result in a job loss of almost 200,000 people, a much larger amount than we've seen from battered sectors such as automakers or home builders in the past two years.

Posted by mark @ 11:44 AM 0 Comments

-3k per week

FTAdviser: House prices tumble 1.2 per cent in June

This tumble in prices equates to an average reduction of 3,000 a week. London has taken the biggest average, with asking prices having dropped by 4,500 or 1.4 per cent in June. The average house price in the capital now stands at 399,010, down from 404,541 in May.

Posted by pendulum @ 11:06 AM 3 Comments

Desperate times, desperate measures

Telegraph.co.uk: Three million people have sold goods to pay for their housing, says charity

This article states, amongst other things, that rents are 'soaring' at the same time as mortgage costs, which doesn't quite add up, or tally with my experience. Also see the claim by the woman who had her house repossessed that it was 'sold for what I think is a fraction of its value'. Wishful thinking indeed.

Posted by sceneclub68 @ 10:51 AM 4 Comments

The bright side to high oil prices

MoneyWeek: The bright side to high oil prices

High oil prices are making us miserable. But a bit of panic now, while we've still got oil left to pump, is good for us. Because it's only in times like these that we get truly innovative thinking...

Posted by damien @ 10:35 AM 2 Comments

The search term "House Price Crash" has more than tribled in the search engines

New Media Age: Searches reveal users economic concerns

The number of times people are searching for 'house price crash' on Google and other search engines has more than trebled over the last 12 months. People searching for the basic term 'house prices' are increasingly going to news and media sites to find out the latest bad news. As HPC are number 1 in Google for the term "House Price Crash" it would be interesting to see if their site stats tell the same story

Posted by beachbum @ 10:08 AM 0 Comments

Did Ireland's HPC play a part in the NO vote?

The Telegraph: Has Europe's terminal crisis begun with a triple no vote?

A property bubble - caused by EMU interest rates of 2pc until 2005 - has left Ireland with frightening household debt of 176pc of gross domestic product. The country now faces a quadruple shock: a credit crunch, rising interest rates in Frankfurt, a plunge in sterling and the dollar, and a sharp slowdown in its Anglo-Saxon export markets....and you forgot Ambrose, the HPC in Ireland is well under way

Posted by sold 2 rent 1 @ 09:46 AM 8 Comments

WTF! Now Miles Shipside is an economics expert!!!

Guardian: House prices fall as sellers 'recognise market realities'

In spite of the lowest housing transactions for 30 years, new sellers had been coming to the market asking record prices. It was a mad state of affairs that defied the laws of economics.

Posted by inbreda @ 09:38 AM 5 Comments

Asking prices plummet in just one month

Rightmove: June House Price Index

Down 1.2% Nationally MoM, and 2.4% in South East. In spite of the lowest housing transactions for 30 years, new sellers had been coming to the market asking record prices. It was a mad state of affairs that defied the laws of economics. Thankfully, new sellers are now taking some proactive steps to price more realistically from the outset to attract increasingly hard-pressed buyers.

Posted by doomwatch @ 09:37 AM 6 Comments

Supply and Demand!

Telegraph: Credit crunch: 15 sellers to every buyer

Only one in every 15 properties on the market were sold last month, according to figures published today (Mon). The oversupply has forced owners to slash nearly 3,000 off the average house price in the last five weeks.

Posted by cheekie charlie @ 09:29 AM 2 Comments

Most Uk Property Buyers Believe The Downturn Will Last 1-2 Years, Findaproperty.com Poll Reveals

FindaProperty.com: MOST UK PROPERTY BUYERS BELIEVE THE DOWNTURN WILL LAST 1-2 YEARS, FINDAPROPERTY.COM POLL REVEALS

A snap poll of consumer confidence in the housing market, conducted by property search portal FindaProperty.com, has determined that most UK buyers believe the current downturn will last around one to two years. The poll of property buyers from across the UK demonstrated that 33% of buyers felt that the downturn would last around one year, while an almost equal 32% of buyers felt that it would last up to two years. 20% however believed that it could last even longer.

Posted by findaproperty.com @ 09:21 AM 3 Comments

And the downward spiral continues!

Bloomberg: U.K. House Prices Drop the Most This Year, Rightmove Says

June 23 (Bloomberg) -- U.K. house prices declined by the most this year in June as buyers shunned the market, deepening Britain's property slump, Rightmove Plc said. The average asking price for a home dropped 1.2 percent from May to 239,564 pounds ($473,000), Britain's most-used property Web site said in a statement today. Prices in London declined 1.4 percent. On the year, the cost of a U.K. home rose 0.1 percent. ``New sellers are now taking some proactive steps to price more realistically from the outset, to attract increasingly hard-pressed buyers,'' Miles Shipside, commercial director of Rightmove, said in a statement.

Posted by flintster1994 @ 07:49 AM 4 Comments

UK Housing Market Depression to Last 10 Years

The Market Oracle: UK House Prices GDP Adjusted Real Trend Forecast

The UK housing market is very sentiment driven, and in many ways exhibits the same sort of behaviour as that of stock market investments moving between extremes of over valuation and undervaluation against the UK 's GDP growth trend.

Posted by nadeem walayat @ 07:37 AM 1 Comments

Paul's Pal!

Timesonline: Slow growth will tame the inflation beast

YOUR starter for 10. Who said: The rise in inflation that we are experiencing today is a worldwide phenomenon . . . Indeed, on a genuinely comparable basis, inflation in this country has increased over the past six months by less than in the G7 as a whole. It was Nigel (now Lord) Lawson, of whom we have seen quite a lot recently. He was speaking in June 1989 about the rise in inflation on his watch.

Posted by flintster1994 @ 07:31 AM 1 Comments

The suppy and demand argument again!

Timesonline: Donald Trump says UK will avoid worst of property plunge

Donald Trump, the property developer seeking to build a 1 billion golf course on environmentally sensitive sand dunes in Scotland, has predicted that Britain's housing market will not suffer the same fate as the homes market in the United States because there has been far less over-building in the UK. Mr Trump's comments come days after Goldman Sachs, the Wall Street broker, gave warning that the UK may be on the brink of a three-year property slump, with house prices forecast to fall 6 per cent this year and 8 per cent next. HBOS, Britain's biggest mortgage bank, last week predicted a 9 per cent fall in property prices this year.

Posted by flintster1994 @ 07:26 AM 2 Comments

The results speak for themselves. Even though it is accepted throughout most of the gold-bug community that gold rises in bad economic times, Table 1 shows that such is not the case.

elliottwave.com: Is Gold REALLY a Safe Haven in Recessions?

The results speak for themselves. Even though it is accepted throughout most of the gold-bug community that gold rises in bad economic times, Table 1 shows that such is not the case.

Posted by big chris @ 03:48 AM 3 Comments

Still a long way down

Times: Nakheel chief Chris O'Donnell says US real estate yet to hit the bottom

Chris O'Donnell, chief executive of Nakheel, the $80 billion Dubai property business, gave warning yesterday that the real-estate recession in America is far from over and will deteriorate rapidly should the price of oil reach $200 a barrel. He said the US property market had never had to cope with the combined impact of a sub-prime mortgage crisis and a surging oil price. We have not hit the bottom yet, he said. "No one knows for sure the outcome of the possibility of $200-a-barrel oil. Where is the bottom of this cycle?

Posted by drewster @ 01:28 AM 1 Comments

Is that code for CRASH?

AP - Yahoo: Wall Street balks as Fed's tightrope gets thinner

After the Federal Reserve's meeting this week, the Fed policymakers are expected to voice a tough stance on inflation. Talk about poor timing. Though Wall Street's inflation concerns have not abated -- crude oil remains above $134 a barrel -- worries about the health of the U.S. financial system and broader economy have returned in force. "If they were to raise (rates), that could put further weakness in economic activity. But by the same token, by raising, that could help stabilize the dollar and help reverse inflation," Cardillo said.

Posted by stevie dee @ 12:56 AM 0 Comments

Another Bear Sterns?

Reuters UK: Merrill Lynch drops on warning rumors

Shares of Merrill Lynch & Co dropped more than 4 percent to $36.10 before the bell on Friday, a drop that traders in the United States and Europe said stemmed from market rumors that the U.S. brokerage will issue a profit warning. A company spokeswoman declined to comment.

Posted by stevie dee @ 12:52 AM 0 Comments

Rightmove down 1.2% -3000 this month. First official confirmation of June index

Daily Mail: A flat in the block below sold for 238,000 in 2006. Now its been resold at auction for just 71,000

Once seen as a sure-fire way of making a small fortune, newly-built flats have become the worst victims of the housing market meltdown. Prices of new-builds in city centres have collapsed, with many sold at auction for a fraction of their value only two years ago. In one case, a three-bedroom flat in Kelso Heights, a development on Belle Vue Road in Leeds, was bought for 237,999 in March 2006 but has just sold for 71,000 a fall of 166,999.

Posted by captain crash @ 12:27 AM 0 Comments

Sunday, June 22, 2008

Better get the umbarellas out

theherald.co.uk/: Are we really ready for this financial storm?

So, just how bad is this financial crisis going to get? Well, according to Bob Janjuah of the Royal Bank of Scotland: "A very nasty period is soon to be upon us. Be prepared."

Posted by frank @ 10:05 PM 4 Comments

For your information

Calleman.com: Next Level interview with Calleman

S2Rent1 consistently uses the Mayan Calender to try and predict speculative bubbles and movements in houseprices. Right or wrong, some of you may wish to have a basic understanding of it, either to join in, or to be in a position to critique his position. So, for once only, here's an interview with Calleman, where he summarises in a shortish time his world view.

Posted by planning4acrash @ 08:55 PM 67 Comments

8pm: C: How TV Changed Britain: Property

Channel 4: How TV Changed Britain: Property

This film asks what contribution has TV made to our obsession with the property market. Has it helped to transform our thinking about homes into places we invest in rather than nest in? Or did TV just reflect the reality of an over-valued market that is only now beginning to hit home?

Posted by doomwatch @ 07:52 PM 9 Comments

Why I wont cry a tear on Estate Agent closures

Rightmove.co.uk: Why I wont cry a tear on Estate Agent closures

I have been watching the above property for a 3-4 years now. The owner tried to put it on rent initially but never got a tenent for more than a year. Then tried to sell it. for the next 3 years not even a zilch. It was on the market for 350,000. Good spacious bunglow. A builder bought this property last year. Needless to say he would have not paid the asking price. He then divided the plot and built this EXTENSION And guess what the extension is worth 375,000 and also the original property is on the market for 345,000. I did confront the Estate agent how had he valued the property given the above facts. Funny. Got no answer.

Posted by deepak @ 07:26 PM 10 Comments

If only half the predictions for next year come true...

Guardian: Unions gear up for wave of strikes

The British economy needs to brace itself for a prolonged period of industrial strife, the like of which has not been seen for 30 years, the country's top union leaders have told The Observer.

Posted by inbreda @ 07:20 PM 2 Comments

How do these imbeciles dress themselve in the morning?

Guardian: Labour heads for financial collapse

Party in crisis with 24m debt as donors back off in wake of poll disaster and funding scandals. AFTER A year of Gordon Brown's leadership the Labour Party is in financial crisis, it emerged last night amid warnings of cutbacks that seriously threaten Labour's ability to fight the next general election. Loyalists including the venture capitalist Sir Ronnie Cohen and the millionaire former science minister Lord Sainsbury are understood to have bailed the party out temporarily in the past few weeks So the ruling party is now majority owned by venture capitalists?

Posted by inbreda @ 07:14 PM 1 Comments

Badger can urge pay restraint from a bigger sett

Sunday Times: MPs set to claim 40,000 perk

What's there to add?

Posted by icarus @ 04:16 PM 4 Comments

The comparison to the 1990's Crash

FT: FTSE 350 real estate sector being demolished

While the City of London's skyline is still cluttered with cranes, the wrecking ball has been taken to the FTSE 350 real estate sector's market capitalisation. From an all-time peak of 51bn, the industry shed 50 per cent of its stock-market value in just 16 months. In the early 1990s crash, by contrast, it lost 64 per cent over three years. And there are good reasons to believe the present demolition job may have further to go.

Posted by stevie dee @ 03:24 PM 0 Comments

Cut 2m off the price of your London mansion!

Snake: Acacia Place NW8 6AJ

A house in NW London drops from 8.5m to 6.5m... but I thought the super-rich had cash to spare, oil money, rubbish money and all that. Still this house priced at 1.5k / sqft. That's waaaaayyyy too much even for NW8! I bet will sell for less than 4m in 2009

Posted by confused76 @ 01:39 PM 3 Comments

Eye watering financials....

Independent: Can You Afford It? Seacon Tower, Isle of Dogs

Fancy a new appartment in E14?

Posted by rental john @ 01:12 PM 1 Comments

Deceving as usual... it's the Times!

Times: Britains largest property developer offers interest free deposit to buyers

The orginal title of this article, very telling about the desperate reality of the housing industry, was "A Built-In Negative Equity Package". This link can still be found at http://property.timesonline.co.uk/tol/life_and_style/property/buying_and_selling/

Posted by confused76 @ 01:07 PM 7 Comments

UK housing - the pyramid scheme comes unstuck!

Independent: As first-time buyers vanish, the lights go out across Britain

House price inflation scared them away. Now prices are falling but they're still not coming back undermining the market and putting estate agents and builders out of business. Richard Northedge reports '....CML is so unsure of the housing market's future that it has abandoned forecasting prices beyond predicting a 7 per cent fall this year which the Halifax says has already happened. "We see this as a very difficult market to call," admits Ms Anderson at the CML. "The really core thing for us is what sort of effect the Bank of England funding intervention has." '

Posted by rental john @ 01:06 PM 0 Comments

Eurozone the one to watch over the next 12 months?

Too late Mr Darling ......

MSN: Darling urges pay restraint

Well, well. So now we are all going to listen to this fool! The answer to INFLATION is the same as it was for the Tories : HIGHER INTEREST RATES. And to STOP BORROWING AND PRINTING MONEY. This govt is now being shown up for all the incompetence. I have run my own company for 11 years and have to mange my books accordingly, a lesson a Labour govt will never ever learn. Bit of a sticky corner for Mr Brown after all his claims ' an end to boom & bust'. LOL - I am really enjoying watching this bunch of idiots burn ... shame is the UK has been ruined in the process.

Posted by waitingfor hpc @ 12:46 PM 9 Comments

If any EAs are still around that is....

Housefund: Approval given for estate agents redress scheme

The Office of Fair Trading has given the Ombudsman for Estate Agents Company Limited (OEA) approval for its estate agents redress scheme under the Consumer Estate Agents and Redress Act 2007 (CEARA).

Posted by rental john @ 12:46 PM 0 Comments

Founder of Foxtons may be planning a rescue bid

Guardian Online: Founder of Foxtons may be planning a rescue bid

Foxtons founder Jon Hunt is thought to be considering reinvesting in the estate agency chain he sold for 390m at the height of the UK property boom last year. Neither Hunt nor the purchaser, BC Partners, would comment, but sources speculated that the entrepreneur could be lured back at a discount to help Foxtons meet interest payments on its substantial debt. BC funded the deal with around 260m of debt and is thought to face crippling annual interest charges.

Posted by rental john @ 12:40 PM 1 Comments

Will Hutton running scared

Guardian: If we rely on free markets, we are looking disaster in the face

Mr Hutton argues the case for adopting an American style mortgage system complete with slashed interest rates: "So what public intervention is needed? The US provides the answer. In these conditions, central banks slash interest rates despite what is happening to oil prices; the risk of a credit implosion is vastly higher than an upward wage and price spiral. Also, the US has only been able to avert disaster in its mortgage market via the guarantees offered by two huge public mortgage banks - Fannie Mae and Freddie Mac - which directly or indirectly have provided 80 per cent of all new US mortgages over the last six months. Together, they guarantee more than half of the US's 5 trillion of mortgage debt." WTF ???

Posted by quiet guy @ 10:53 AM 13 Comments

The property bulls very own "Lord Ha-Ha" aka David smiths weekly propaganda sinks to new lows

Sunday Times: Bank of England denies rate hikes are in the offing

THE Bank of Englands message on interest rates in recent days was intended to be neutral, sources say, and not a signal that the monetary policy committee (MPC) is contemplating early rate rises. Money markets had a roller-coaster ride last week, when the publication of figures showing a jump in inflation to 3.3% was followed by what the markets saw as a dovish letter from governor Mervyn King to chancellor Alistair Darling. Fears of higher interest rates were then revived with the publication of the minutes of the MPCs meeting earlier this month, in which the committee had discussed whether a rate hike was needed. Then, in his Mansion House speech in the City, King stressed the Bank was committed to meeting the 2% inflation target and would take whatever action was needed.

Posted by martin woodhosue @ 10:04 AM 0 Comments

In a seller market EAs work for the seller, but in a buyer market EAs work for the buyer!

Times: A bad year for estate agents

How about a price-reduction competition? Last time round, with owners reluctant to trim prices in a falling market, a hush-hush incentive scheme to persuade sellers to drop their asking prices helped to keep sales turning over. Each office logged the price cuts on a confidential form, and the office and individual that achieved the highest percentage reduction on their total register pocketed bonus payments. I like it, the bean-counter nods, as H scowls across the room at me. Only we need to keep it quiet. I dont want owners knowing were actively slashing prices across the board.

Posted by confused76 @ 08:59 AM 5 Comments

A healthy correction is welcome

Independent: Homes and economy drag each other down

"And once prices stopped rising, the reason for much property buying disappeared: there was no prospect of an easy capital gain from trading up, buying second homes, investing in buy-to-let or financing the student homes of one's offspring" but do not expect house prices to start rising again any time soon!

Posted by confused76 @ 08:46 AM 7 Comments

Mugabe Politics

Timesonline: Ireland under Franco-German pressure to hold new EU vote

The Irish government is expected to bow to Franco-German pressure and hold a second referendum to try to rescue the Lisbon treaty that voters rejected this month. The plan for a possible new vote in Ireland, being discussed by some ministers in Dublin, will be greeted with outrage by opponents of the treaty in Britain. Irish ministers believe it may be able to rescue the treaty if they can secure concessions from Europe to placate voters on a list of issues. A yes vote can be achieved if the Irish people are offered guarantees on issues like defence and taxation, said one senior Irish official.

Posted by flintster1994 @ 06:55 AM 12 Comments

Welsh houseprices down

Observer: After chasing richer parts of the UK, prices start to go downhill in the Valleys

Not long ago property journalists were reporting how Welsh house price rises were bringing the Principality into line with wealthier regions of the UK. But the latest figures from the Land Registry, for property transactions completed in April, show dramatic falls from Cardiff to Anglesey.

Posted by mken @ 05:25 AM 5 Comments

Fed Emergency Liquidity Flood Not Bourn Out by the Facts

Market Oracle: Fed Emergency Liquidity Flood Not Bourn Out by the Facts

We constantly hear from the talking heads that the Fed's recent policy actions are creating mammoth amounts of financial liquidity. But have these talking heads bothered to look at the data? If they did, they would have to change their tune.

Posted by dan in bham city @ 02:13 AM 0 Comments

Expect to see Mervyn King with his 'financial stability' money wheelbarrow of plenty outside the bank soon

Guardian: Investors say Barclays needs more than 4bn

One top 10 shareholder pointed out that it will still leave Barclays as the world's weakest bank.

Posted by paul @ 01:30 AM 2 Comments

He considered stepping in to buy Northern Rock

yahoo news: Lloyds TSB eyes potential German deal

Good Morning Vietnam oops I mean England how are we all today? LONDON (Reuters) - Lloyds TSB would consider a significant acquisition and is looking at a possible deal in Germany, people familiar with the situation said on Saturday. (Advertisement) It is considering deals for Dresdner Bank, owned by insurer Allianz, and Deutsche Postbank, the retail bank at the centre of takeover speculation, one of the sources said. Lloyds declined to comment on whether it is looking at Dresdner, Postbank or the German operations of U.S. bank Citi, which are also up for sale. Lloyds Chief Executive Eric Daniels has signalled recently that the bank would consider a deal. It outperforms rivals in its core UK market and a sharp fall in bank valuations has created opportunities.

Posted by malct @ 12:33 AM 0 Comments

Saturday, June 21, 2008

This superbear is a long way from bottom

MoneyWeek: This superbear is a long way from bottom

If you were hoping for a quick recovery, you might have a long wait. Western stockmarkets are a long way from bottom and are infecting emerging markets. The only safe place is Japan...

Posted by damien @ 07:09 PM 2 Comments

Anyone got advice on ending a tenancy

LandlordZONE: History of Landlording

This history tells all about landlords' attitudes to tenants - very instructive - but can anyone help me with some advice on ending my tenancy?

Posted by montesquieu @ 06:28 PM 20 Comments

nice chart!

Elliott W Intern: European Housing Bubble Makes U.S.'s Look Tame

EWI trying to sell a report - but a nice graph!

Posted by techieman @ 06:10 PM 0 Comments

Going for Gold

bloomberg.com: Gold May Rise to $5,000 on Inflation, Schroder Says (Update1)

``You could easily see for the next several years that prices rise not to $1,000 an ounce, but prices rise to $5,000 an ounce or beyond as inflation psychology becomes more and more embedded and people become desperate to have a source of value,''

Posted by sold out @ 03:22 PM 11 Comments

Oil to higher this week

The Telegraph: Oil prices soar as leaders gather for Saudi Arabia summit

Oil prices surged as some members of the Opec producers' cartel rejected demands to increase output ahead of tomorrow's meeting in Saudi Arabia to discuss soaring fuel costs

Posted by sold 2 rent 1 @ 03:18 PM 2 Comments

2 year fixed rates up to 6.99%

The Mail on Sunday: End of the cheap fixed mortgage ...

... Halifax is last of big four lenders to hit homeowners with punishing rate rises

Posted by mark wadsworth @ 02:19 PM 4 Comments

One thing the UK can still manufacture - News

The Independent: Shock boost to retail sales heightens fears higher interest rates on the way

There's no boost to retail sales - it's all down to the Contrived Price Index. I know this story has been posted before but we didn't deal with it fully at the time.

Posted by icarus @ 01:13 PM 2 Comments

Gordon Brown's last year!!!!!!

Telegraph.co.uk: Gordon Brown's first year

What do you mean you haven't got your street party organised yet? Next Friday will mark the first anniversary of our great leader, Gordon Brown, moving into Number 10 Downing Street. So, if you don't get down to the local shop sharpish, you might well find they have run out of bunting and the like. advertisement Sadly, after the events of recent days and years, savers and investors may be reluctant to break out the party hats and streamers. This week saw Royal Bank of Scotland (RBS) analyst Bob Janjuah warn of a global stock market crash within the next three months.

Posted by housebear @ 12:57 PM 4 Comments

Which advice to take, head or tails?

What investment: The Money Doctor

Whats the difference between guesswork and forecasting? Consider the following range of recent forecasts and tell me, because Im not sure: A correction of approximately one-third in house prices could be on the cards in the next two or three years (MPC member); Price of homes will drop by 10 per cent (Lloyds TSB); or: Citi chairman joins bulls by predicting end to meltdown (Citigroup); We are on the cusp of an equity meltdown that will slash and shred portfolios like Freddie Krueger (Soc Gen).

Posted by housebear @ 12:53 PM 0 Comments

Buy to dept

Telegraph.co.uk: Word on the street

Johnny-come-lately property investors will find it tough out there. By Edmund Conway Recent weeks have confirmed what many of us suspected for some time: that buy-to-let would be Britain's own subprime crisis. In an eerie echo of the United States experience, it was the collapse of one relatively small part of the property market that helped to trigger a full-blown fall in nationwide prices. The only difference is that whereas the main US epicentre was sub-prime - the mortgages of poor families - our Achilles' heel was the comparatively more middleclass world of private property investment.

Posted by housebear @ 12:49 PM 4 Comments

Worth a read!

Telegraph.co.uk: What the boom years did for us

How did it go ro right? And, looking back, was it sheer madness? The rise and rise of the property market has affected everyone - for better or worse. Caroline McGhie traces its stratospheric progress while, Ross Clark relives the key events of a tumultuous era It seems now like another era: a golden age when money poured in through the rafters and entire lifestyles could be funded through the rise and apparently unstoppable rise of property values. It has ended, finally, with a sickening crunch alongside last week's report of the fewest sales since records began, and the prospect of negative equity raising its ugly head. Toprak Mansion; Hascombe Court; a street in Chelsea

Posted by housebear @ 12:45 PM 1 Comments

How to make money from property

Private Sector Leasing: Socialising Property Market Losses?

The Scotsman: Sellers finding ways round the housing crisis

"One option being taken by a growing number of frustrated Edinburgh property owners is the Private Sector Leasing (PSL) scheme. Run by Orchard & Shipman, the scheme the largest of its kind in the UK secures properties for the City of Edinburgh Council to offer to those in need of housing. Run since 2005 with the aim of 1,500 properties, 1,300 are on its books already." On the surface, this appears to be a roundabout way to get taxpayers to bail out those who can't sell their properties because we don't have enough social housing. Anybody know any better?

Posted by quiet guy @ 09:33 AM 2 Comments

Banks Generosity Hits Home

DailyMail: First Northern Rock borrower to be thrown out of her home by the Government

We took out a loan for around 300,000 with Northern Rock in 2006. In an astonishing twist, they were handed an extra 60,000 by Northern Rock on September 20 last year, days after customers queued outside branches in the first run on a British bank for 100 years.

Posted by yoyo1 @ 09:18 AM 40 Comments

Low Inflation, Low Unemployment, better placed to weather.....

The Guardian: Housebuilders suffer 60% slump in starts as mortgage market tightens

The number of house builds has sunk by nearly 60% in 12 months as tighter mortgage lending puts off buyers. The National House Building Council, with 20,000 registered housebuilders on its books, said there were 6,890 starts in the private sector in May, compared with 15,713 last year. This is a drop of 56%. The number of public-sector houses being built is also decreasing with 2,699 houses being built this year, compared with 4,306 in May 2007. About 60% of social housing is built by private developers. This news came on the same day as Halifax, Britain's biggest mortgage lender, announced that it would raise its fixed rates on loans by 0.5% from today - the 20th time Halifax has changed its rates since the start of the year.

Posted by flintster1994 @ 06:36 AM 3 Comments

Friday, June 20, 2008

Look you pesky voters you - just stop being miserable

Telegraph: Tom Harris tries to laugh off 'bloody miserable' gaffe

A junior transport minister has sought to laugh off criticism after he advised hard-pressed families struggling with the credit crunch to cheer up and stop being so "bloody miserable".

Posted by musn't grumble @ 10:28 PM 5 Comments

Sorry - can't raise the deposit

Reuters: Credit crunch hits Olympic Village financing

"The one billion pound Olympic Village for the London 2012 Games will require greater public financing than previously expected because of the global credit crunch, organisers said on Friday. The village -- to house athletes and officials -- is the single largest project of the Olympics development in the east of the capital, and was intended to be largely financed by the private sector".

Posted by alan @ 10:21 PM 8 Comments

Friday Night comedy - David Bexon is top of the bill

mortgagestrategy: Smartnewhomes.com reports rise in London and the South-East house prices

Smartnewhomes.com has reported price growth in London and the South-East in May, making this the third consecutive month of rising prices. Over the past two months, Smartnewhomes.com says the South-East has accounted for the vast majority of all new homes being marketed in the UK and the high demand has been matched by steady monthly price rises. "Flats (new build) were the strongest performing property type in May across the country"

Posted by jack c @ 09:48 PM 7 Comments

Estate Agent Properties Up for Rent

Bradleys: Bradleys Commercial Property Search

Take a look at the Commercial Property section at Bradleys Estate Agents. Particularly the 1st, 4th, 5th & 6th properties. There are 40 properties listed and 10% of them are Bradleys' own offices.

Posted by scouser @ 08:50 PM 1 Comments

Something for the weekend Sir?

Youtube: HOUSE PRICE CRASH (by andyparf)

Regulars at HPC have probably seen this before - but worth another look....

Posted by rental john @ 06:21 PM 5 Comments

Moving Target

The Times: Another week, another rate increase from HBOS

HBOS has made 19 changes to two-year fixed-rate mortgage deals in the past six months

Posted by eagle @ 05:08 PM 3 Comments

Humberts bought by Mercantile Group

Somerset County Gazette: Humberts bought by Mercantile Group

THE two Taunton offices of estate agents Humberts have been bought out by the Mercantile Group. Mercantile has snapped up 34 Humberts offices, as well as ten franchisees, including the Taunton operation.

Posted by rental john @ 04:34 PM 0 Comments

Err, that's all right then....(?)

Times online: House builders rally on reports of Barratt loan agreement

House builders were the biggest risers in the FTSE 100 this morning after reports that Barratt Developments banks are willing to waive its loan covenants if the company were to breach them. {probably had no other option - but to let then go to the wall...., which is likely to happen anyway}.

Posted by rental john @ 04:31 PM 1 Comments

How many rate rises to Christmas?

Times Online: Halifax makes twentieth change to mortgage rates

Halifax, the UK's biggest mortgage lender, is expected to deliver more woe to homeowners and first-time buyers tomorrow when it raises its fixed rates on loans by 0.5 percentage points. The move, Halifaxs twentieth rate change since the beginning of the year, will hit homeowners on all levels, including those who hold a high level of equity in their property.

Posted by rental john @ 04:26 PM 1 Comments

A story of repossession has sparked talk of a gender divide in the property market, says Hilary Osborne

Guardian online: House price clash

Our piece about a family having their home repossessed has been picked up by bloggers on Housepricecrash - and the conversation has taken a strange turn.

Posted by rental john @ 04:19 PM 63 Comments

Bank: Looking for Cash

MoneyWeek: Japanese to bail out Barclays with 473m

Barclays was today on the verge of securing a massive bailout from Japan as it looks to Asia to bolster its finances. The bank is in line for a 100bn yen (473.4m) capital injection from Sumitomo Mitsui Financial Group (SMFG) that would give the Japanese firm a stake in the British lender.

Posted by pendulum @ 01:59 PM 0 Comments

More to come

MoneyWeek: Bad debt to keep growing, says HBOS

Halifax owner HBOS warned that the alarming rise in borrowers falling behind with repayments shows no sign of slowing down. Britain's biggest lender said the value of mortgages in arrears have jumped by 17% since the start of 2008 to 5bn.

Posted by pendulum @ 01:56 PM 3 Comments

Investors being told to expect rate rises

Interactive Investor: Are interest rate rises on the horizon?

"Looking further ahead, the next move is now expected to be a rate increase. As a consequence, swap rates, which reflect the cost of raising funds over specific time periods, have risen and there has been an increase in the price of fixed rate mortgages."

Posted by bidin'matime @ 01:48 PM 4 Comments

Mr Bean will take over responsibility for monetary policy

press assoc: Gieve predicts uncomfortable year

Outgoing Bank of England deputy governor Sir John Gieve has added his voice to warnings over the economy and said the next year "was not going to be comfortable for anybody". (Advertisement) Sir John, who resigned as deputy governor in charge of financial stability on Wednesday, told North East business leaders the current climate was the "most challenging" faced by the Bank in 11 years of independence.

Posted by malct @ 01:12 PM 0 Comments

Abolish those orgs & confiscate their managers' assets!

MoneyFiles: The Problem With The WTO/UN/WB/IMF

Do The People Running Those Orgs Deserve To ... [346 votes total] be jailed (life time) (85) 25% be ousted and replaced (18) 5% be sent to death row (56) 16% Abolish those orgs & confiscate their managers' assets! (187) 54% (poll chart) via http://www.moneyfiles.org/soundmoney.html

Posted by malct @ 01:03 PM 9 Comments

Believe it or not Ive been able to convince people to add more money.

NY times: Prosecutors Build Bear Stearns Case on E-Mails

In the spring of 2007, as the mortgage market came unglued, two Bear Stearns executives shared their growing fears in a series of e-mail messages to each other about the perilous condition of the giant hedge funds they oversaw. The two funds had names as abstruse as the complex subprime securities in their portfolios High Grade Structured Credit Strategies Fund and its riskier sister offering, the High Grade Structured Credit Strategies Enhanced Leverage Fund.

Posted by malct @ 12:35 PM 0 Comments

A jump in one-week interbank lending rates

Reuters: Europe shares hit session lows as banks slide

LONDON, June 20 (Reuters) - European shares fell to session lows by midday on Friday as a sell-off in banks gathered pace, while miners continued to weigh on the broader market after an earlier dip in the gold price. A jump in one-week interbank lending rates put further pressure on the equities market, pushing the FTSEurofirst 300 index of top European shares down 0.9 percent to 1,232.70 points by 1102 GMT.

Posted by malct @ 12:23 PM 1 Comments

government froze thermal coal prices

Reuters: HK shares slip on profit-taking in oil,power cos

HONG KONG, June 20 (Reuters) - Hong Kong shares closed 0.23 percent lower on Friday, reversing strong morning gains, as speculators booked profits on refiners and power producers after Beijing unexpectedly raised energy prices.

Posted by malct @ 12:19 PM 0 Comments

Guess standard practice is not a code of practice!

Office of Fair Trading: Hertfordshire estate agent banned

The OFT has made a prohibition order against Daniel Zane, director of former Hertfordshire estate agents Vue Estates Ltd, banning him from estate agency work.

Posted by rental john @ 10:51 AM 5 Comments

Why the FTSE 100 could fall below 5,000 by September

MoneyWeek: Why the FTSE 100 could fall below 5,000 by September

If you thought the sub-prime crisis was the only thing to worry about, you were wrong. Theres another big storm brewing, and this ones heading for the company debt markets...

Posted by damien @ 10:39 AM 7 Comments

Off message but still has implications across many levels of the economy

Economist: Short-selling: Nasty, brutish and short

IT IS difficult being a short-seller. Most shareholders and managers agree that you are an important part of an efficient stockmarketuntil you dump shares in their company. Then things can turn nasty. How much of the current rise in oil price is speculative? Most I think....but we are all hurting. One thing is certain someone somewhere will be getting very rich.

Posted by rental john @ 10:26 AM 9 Comments

Real inflation over past 2 years - 26%

MSN: Monthly outgoings 'soar 26%'

Consumers have seen their monthly outgoings soar by 26% during the past two years driven by higher housing and energy costs, research has shown. The amount people spend on bills and living costs has soared from an average of 945 in June 2006 to 1,281 now, according to insurer Combined Insurance. Consumers are spending around a third more on rent and mortgages than they were two years ago, with rents rising by an average of 30% and mortgage repayments jumping by 33%.

Posted by uncle chris @ 10:15 AM 12 Comments

Are we going the way of the Japan bubble?

FX Street: How To Get Out Of This Mess

The Japanese credit bubble completely sank the Japanese economy: property collapsed by 44%. "Their real estate market is still bouncing around a bottom after declining every year for 18 years"

Posted by brite2006 @ 10:15 AM 1 Comments

Problems, Problems, Problems

Guardian.co.uk: 'I didn't think it would be so hard letting go of a house'

Amid talk of the credit crunch and negative equity, and with house prices falling faster than they have since the crash of 1992, it is easy to forget that for each repossession statistic there is a family who have lost their home. Last month, Maxine King joined the estimated 53,000 people who, according to the homeless charity Shelter, will lose their homes this year. I met her days before the repossession date at her three-bedroom semi on an estate in Gravesend, the last large town on the south bank of the Thames before it runs into the Channel. She said she knew there was no chance to save it but, tellingly, she hadn't started packing.

Posted by housebear @ 09:42 AM 25 Comments

Housebuilding industry in huge crisis

MSN: Housebuilding industry in crisis

Britain's housebuilders are looking more rickety than a plywood garage in a gale. One more gust, and one or two might actually not be worth anything at all to shareholders. Yet house prices have only just begun to fall. For the industry, this is the biggest crisis in two decades, and it will get much worse before it gets better

Posted by housebear @ 09:30 AM 0 Comments

Eyes in the back of their heads

Telegraph: House price forecasts that aren't really forecasts at all

"If higher falls in house prices mean higher impairment charges, do higher forecast mean higher provisions in accounts? Not good for the banks' balance sheets or their bottom line. Either that or the banks are just dreadful at forecasting."

Posted by letthemfall @ 09:27 AM 1 Comments

A bearish artical from Fool

fool.co.uk: A Handful Of Housing Horrors!

In his annual Mansion House speech on Wednesday night, the governor of the Bank of England warned that the UK faces a few tough years ahead. Mervyn King said that Britain is facing its most difficult economic challenge for two decades, thanks to falling growth and the steeply rising cost of living. In some cases, household finances will be stretched to the limit, thanks to modest pay rises being gobbled up by soaring food and energy bills.

Posted by housebear @ 09:25 AM 0 Comments

IR hunting tax didging BTLers

myfinances.co.uk: Buy-to-let landlords face tax crack down

Buy-to-let landlords are set to face the attention of the taxman over undeclared rental income even if they have now sold the property in question. According to wealth advisors Route Group, HM Customs and Revenue (HMRC) has launched a clampdown in recent weeks, forcing buy-to-let investors to consider their tax position.

Posted by quiet guy @ 07:44 AM 12 Comments

Fund Managers arrested - Housing Meltdown - Never!!!

AP - Yahoo: 2 former Bear Stearns hedge fund managers charged

Two former Bear Stearns hedge fund managers were hauled into jail Thursday and charged with lying to investors about the collapse of the subprime mortgage market, perhaps signaling the start of a wave of prosecutions arising from the housing meltdown.

Posted by stevie dee @ 06:50 AM 1 Comments

Wage Price Inflation Spiral Plus House Price Deflation Equals Stagflation

The Market Oracle: Wage Price Inflation Spiral Plus House Price Deflation Equals Stagflation

Warnings of a further 40% hike in energy costs this year puts the Bank of England on high alert for a wage price spiral kicking in which will lead to much higher and prolonged inflation. The first signs of this are in the 14% pay hike agreed with the Shell subcontracted tanker haulers over 2 years at 7% per year which is more than double the current CPI inflation rate of 3.3%. The public sector unions are seizing this event to warn that recent pay agreements that cover the next 2 years will have to be negotiated in line with the rising cost of living signaling a 'Winter of Discontent' for Gordon Browns Labour government.

Posted by nadeem walayat @ 06:02 AM 2 Comments

The Truth Behind the Retail Sales Headlines

The Market Oracle: http://www.marketoracle.co.uk/Article5141.html

In the midst of the worst economic conditions in nearly 20 years, May saw retail sales soar by a surprising annualised rate of 8.1%, the highest rate in 20 years, up 3.4% for the month. The surge is more akin to that expected during boom times rather than the bust that the UK is fast heading towards. The mainstream media immediately seized on the headline rate to announce Britain is experiencing a mini high street spending boom. However looking behind the headline figures tells a different story.

Posted by nadeem walayat @ 06:00 AM 1 Comments

Wow you need an F1 racing car to get a mortgage these days!

Guardian: Mortgage mayhem as Bristol & West withdraws deals and First Direct raises cheap rate

Bristol & West, said yesterday it was withdrawing 7 of the 29 mortgage offerings - mostly fixed-rate and buy-to-let deals - it launched on Tuesday! The bank said it took the decision in response to "unprecedented volumes of business received during the past week". Wow need to be fast to get a mortgage these days! First Direct added to the turmoil yesterday by raising the cost of what had been Britain's cheapest two-year fixed-rate mortgage the rate would rise from 5.49% to 5.99% - although borrowers still have to come up with a 20% deposit and a 1,499 fee!!

Posted by who stole my pension? @ 05:11 AM 2 Comments

Virgin Blue says high oil prices will force some major airlines around the world to shut down within the next six months.

abc: Major airlines facing closure 'within six months'

Virgin Blue says high oil prices will force some major airlines around the world to shut down within the next six months.

Posted by big chris @ 12:49 AM 1 Comments

The next wave...

Marketwatch: Moody's downgrades Aaa rating of Ambac, MBIA

I can't stress how important this story is with regards to implications for the credit default swaps markets. Now the big bond insurers have lost their ratings, the bonds that they insure must lose their ratings too, causing investors to sell. This is massive - and lvmreader predicted this a long time ago. It is the reason that writedowns are going to continue as many billions of dollars worth of debt gets re-rated lower.

Posted by jackas @ 12:33 AM 0 Comments

Thursday, June 19, 2008

HBOS 5bn headache prompts downgrade

Times: HBOS reveals 5bn in problem home loans ahead of rights issue

BTL and selfcert are the real UK subprime. Standard & Poor's, the ratings agency, knocked HBOS's rating down from stable to negative because of the potential hit to its business from Britain's slowing economy. Expect another lively rights issue.

Posted by confused76 @ 11:04 PM 5 Comments

ONLY 5bn at HBOS! Gives an indication on the levels other banks have.

Timesonline: HBOS reveals 5bn in problem home loans

HBOS has a huge amount of problem mortgages already. And the bad economic news just keeps coming, what will errears be in a years time. If you have 5bn at HBOS what are the levels at with the likes of B&B, Barclays, ScottishWidows, Northern Rock then?

Posted by waiting for the crash @ 11:02 PM 0 Comments

Humberts office's closing in North Somerset

Clevedon Mercury: BOSS'S ANGER AS PROPERTY AGENTS CLOSE

Never posted before but been watching for well over a year. In my opinion, SW market is on its knees - demonstrated by the fact that the new owners of Humberts have chosen to close 14 branches nationwide, 11 of them being in North Somerset.

Posted by mapp1066 @ 09:50 PM 9 Comments

No subprime loans here, only one fat greedy fraudster

Thisislondon: 'Rogue trader' suspended after losing Morgan Stanley 60m

Does anyone remember the Socit Gnrale fraudster Jrme Kerviel? At the time, SocGen were adamant that the piles of money he lost were because he had acted alone, without the knowledge of SocGen's senior management. What happened to him? Google it to find out - it'll surprise you.

Posted by paul @ 09:31 PM 5 Comments

Commentators finally getting real

Telegraph: UK house prices forecasts get bleaker with prediction of 35pc drop

If they keep this up, HPC predictions will soon look positive.

Posted by captain sensible @ 09:31 PM 6 Comments

Is this a sign of things to come?

BBC News: FBI holds 406 for mortgage fraud

The FBI says it has arrested 406 property market players as part of its crackdown on mortgage fraud. The arrests include estate agents and loan originators, who help homebuyers to take out loans. Reported mortgage fraud has soared in the past year, with the most common type being mis-statement of assets.

Posted by flintster1994 @ 06:55 PM 4 Comments

Another hole in Darling's pocket !

Telegraph: Housing downturn will leave Treasury short of 3bn in stamp duty

Stamp Duty has become a serious source of revenue for the Treasury, with more than six out of ten home buyers having to pay it. Last year the Treasury made 6.45bn out of the tax on residential property transactions.

Posted by rental john @ 06:46 PM 4 Comments

Cracks appear at BoE....

Independent: Bank of England deputy governor falls on his sword

The Bank of England's deputy governor for financial stability has resigned. Sir John Gieve had come under increasing pressure as scrutiny of his role during the credit crisis and the collapse of Northern Rock intensified. Matters came to a head with the vacancy created by the retirement of the Bank's deputy governor for monetary policy, Rachel Lomax, which takes effect at the end of this month

Posted by rental john @ 06:19 PM 1 Comments

Only 9%!

Liverpool Daily: HBOS reveals 1billion in writedowns

Halifax Bank of Scotland spread more gloom in the banking sector today as it revealed 1 billion in write-downs and warned that house prices could now fall 9% this year.

Posted by rental john @ 06:05 PM 1 Comments

And the DEMOCRATIC process continues!

Timesonline: Ireland given four months to save Lisbon Treaty

European Union leaders have given Ireland's Prime Minister four months to come up with a plan to save the Lisbon Treaty. Brian Cowen said as he arrived at today's Brussels summit that it was too soon for him to explain the dramatic referendum rejection of the document last week. Mr Cowen says he has agreed to come back to the next meeting of EU leaders in October to tell them if he believes a second referendum could succeed, and what his government needs from the EU to run a successful campaign.

Posted by flintster1994 @ 05:47 PM 18 Comments

Bet they pooped their pants.

financialpost.com: FBI arrest two Bear Stearns managers in subprime probe

Two former managers at Bear Stearns Cos. hedge funds were arrested at their homes Thursday morning by agents of the Federal Bureau of Investigation over their roles in the collapse of hedge funds that ignited the subprime mortgage crisis last year. Also, the BBC tickertape claims 'FBI says some 300 people have been arrested over subprime crisis since March. More soon.'

Posted by angonamo @ 05:24 PM 1 Comments

HBOS - House Prices Falling off a Cliff

Reuters: HBOS warns of sharp house price falls

Britain's biggest mortgage lender HBOS warned of a sharper fall in house prices and said more of its customers were falling behind on their repayments, sending its shares sharply lower.

Posted by jj @ 05:24 PM 0 Comments

Architects of Credit-Fuelled Housing Mania Off to Jail

NY Times: 2 Former Bear Stearns Managers Arrested

The case hinges on the prosecution demonstrating that the two managers wilfully misled investors to keep their money in funds that they knew were failing. Unfortunately, the defense could just claim that the managers acted in good faith rather than out of deliberate market-fixing. If they are convicted, however, it might serve as a good precedent for bankrupt BTL-ers to sue the Kirsty Allsopps of the world who are still urging everyone and his dog to get into property, insisting that it's a good time to buy.

Posted by an bearin bui @ 04:21 PM 0 Comments

China to lift fuel prices by 18%

FT.com: China to lift fuel prices by 18%

I thought it was due to speculation. Then it's demand. Then it's speculation again. Which is it? When it goes higher again is that now down to demand or speculation?

Posted by whiteknight @ 03:56 PM 11 Comments

Thursday's comedy club entertainment (Classic comments)

mortgagestrategy: NAEA members see confidence rise

Members of the National Association of Estate Agents are reporting a rise in consumer confidence in May with the latest surveys revealing stabilisation in the housing market. It bases the claim on an increase in first-time buyer sales and the the amount of house hunters.

Posted by jack c @ 03:17 PM 13 Comments

Boot on the other foot at last!!

Guardian: How to avoid being gazundered

I like this one: "Get evidence State you want proof of the buyer's reasons for reducing the offer." Surely all the evidence they need is the fact that the house is worth less now than it was when they started the process!

Posted by inbreda @ 02:39 PM 12 Comments

CML: No new buyers

Finance Markets: Gross mortgage lending falls by 19% in May

The CML said it was mainly just existing homeowners supporting the mortgage market now.

Posted by brite2006 @ 02:22 PM 0 Comments

The EU. A true democracy!

Telegraph: Our EU masters have no sense of shame

Guinness and oysters combined can make for a dreadful hangover. Celebrating the Irish way, after the good citizens of the republic had bravely rejected Lisbon and all its works, seemed like a good idea at the time. But after the party that followed such a rare piece of good news for Euro-sceptics, comes the blistering hangover. Why can those involved not see that the Euro-project lacks any popular mandate? Irish voters may have thought they had killed the treaty, but, in the European Union, no never quite means no; or rather no seems not to matter. And, our peers also bulldozed it through the Lords.

Posted by flintster1994 @ 01:38 PM 7 Comments

Why housebuilders are facing a severe crunch

MoneyWeek: Why housebuilders are facing a severe crunch

Housebuilders made the same mistakes buy to let landlords did they bought land thinking that prices would never fall. Now the land is worth a lot less, and the banks are on their backs...

Posted by damien @ 12:16 PM 1 Comments

The final oil collapse is close

The Guardian: Bush calls for lifting of ban on Alaska oil drilling

George Bush, responding to public alarm over soaring petrol prices, yesterday proposed overturning decades-old bans on drilling for oil off the US coast and in the pristine Alaskan wilderness. "There's no excuse for delay," the president told a White House press conference. America was too dependent on countries abroad, many of them in unstable regions.

Posted by sold 2 rent 1 @ 11:01 AM 93 Comments

Squeeze, what squeeze?

BBC: Retail sales rise at record pace

Mervyn King stated last night that take-home pay would stagnate making life difficult for some families but figures from the Office for National Statistics (ONS) regarding retail sales paint a rosy picture indeed. Year on Year (YoY) sales were up 8.1%, the fastest rate since April 2002. Figures produced by the ONS are viewed by many as highly dubious but the ONS figures are echoed by the British Retail Consortium (BRC). Personally I know many people feeling the pinch so I'm surprised by the figures. Is this simply the punter indulging in some "retail therapy" to cheer themselves up or is there simply enough cash sloshing around?

Posted by denzil @ 10:25 AM 11 Comments

Life in the old dog yet or could it be inflation

BBC: Retail sales rise at record pace

The spell of warm weather in May helped to trigger a record jump in UK retail sales, official figures have show. Overall sales rose by 3.5% during May, the strongest monthly growth in sales since the series began in January 1986.

Posted by holding out @ 10:20 AM 4 Comments

No light on the horizon

BBC News: Bank governor offers bleak view

More doom and gloom predictions for family life. It does interest me that since the inflation figures were released this week, numerous comments have suggested that the current situation is not a return to the bad old days of the 1970's 26% inflation era but can anyone tell me what the CPI/RPI equivelant measuring barometers were used around that time? It is my opinion as well as many others that inflation is well above the current 3.3% quoted this week, if we used 1970's measuring criteria for inflation what I wonder would be the expected result?

Posted by loneranger @ 09:52 AM 0 Comments

Parting fools with their money

Motley Fool: Investing in wine: A beginners guide

Sorry this is off-topic, but I thought I'd include it because it shows that when one foolish wheeze for getting people to part with their hard earned (such as BTL) comes to an end, along comes another.. I know a little bit about the wine trade, having over 2000 bottles in the cellar (for drinking, not investment) I can therefore say with some authority that not only is the fine wine trade in bubble mode (and not just Champagne..!) but also that the margins charged by the trade, coupled to the costs of professional storage, make the prospect of a profit minimal, and the prospects of a loss near certain. But I shouldn't complain - I stock my cellar from trade sales, usually paying less than the punters who bought 'as an investment' ten years ago!

Posted by uncle tom @ 09:45 AM 5 Comments

But no one's laughing at these jesters

Telegraph: Last night's Mansion House feast was a banquet of fools

Only the first section of the article is of interest, but worth it for the headline alone. The author is right about the joker at the Treasury, but note the old Tory-supporter dig at the public sector, as though the answer to inflation lies in screwing predominantly low paid workers. We are all petrol tanker drivers now.

Posted by letthemfall @ 09:41 AM 6 Comments

So what did the G-8 do?

market oracle: G8 Fail to Address Growing Global Instability

With market watchers the world over feeling increasingly alarmed by spreading economic problems, much hope and attention was focused on Japan last weekend as finance ministers and central bankers of the G-8 (Group of Eight) nations gathered to apparently map out a coordinated global response. In particular, all hoped that the delegates would conjure a plan to save the dollar from the dustbin and stop the price of oil and food from pushing the world into crisis As very little of promise or substance emerged, I can only hope, against all evidence to the contrary, that much was accomplished behind closed doors. So what did the G-8 do? They talked and did little. Admittedly, they discussed some laudable issues like world poverty and green alternative energy (which will most likely be the nex

Posted by malct @ 09:14 AM 1 Comments

If the house goes down in value, Rex & Co. will eat half of that loss as well

cnbc: Homeowners Offered New Way to Tap House's Equity

the Dollars signed up for a relatively new product called a Rex Agreement. It gave them $117,000 in cash to spend however they wanted, and they owe no payments until they sell the house. At that time, they'll owe Rex & Co. the $117,000 plus half of the appreciation in their home's worth between the time they signed the agreement and the time they sell the house. If the house goes down in value, Rex & Co. will eat half of that loss as well.

Posted by malct @ 08:52 AM 2 Comments

Paying interest to pay interest !

Daily Mail: More than 4m families use a credit card to pay mortgages

More than four million families have used a credit card to pay the mortgage or rent in the last year. The figure exposes the dramatic impact of the economic squeeze on ordinary families. Settling debts by withdrawing cash on a credit card is probably the most expensive way possible with interest rates as high as 28 per cent, and indicates a disturbing level of desperation on the part of homeowners.

Posted by uncle chris @ 08:32 AM 11 Comments

VI's gradually change tune

BBC: House prices 'to fall 9% in 2008'

Not a particularly interesting article, but here for the record. There was something in City AM about two chaps from HSBC saying that they expected house prices to fall by 1-% this year and 10% next year, but I can't find that online.

Posted by mark wadsworth @ 07:28 AM 6 Comments

Labour attempting to prop up the property bubble

Times online: Britain's social housing industry suggests 1bn spree on empty stock

The group representing Britain's social housing industry is in talks with the Government to free 1 billion of public money to help to bail out the new homes market. The funds would be used to buy tens of thousands of mostly inner-city flats and family homes at a heavy discount from beleaguered housebuilders.

Posted by sold out @ 06:30 AM 20 Comments

More pain on top of misery.

BBC News: Energy bills could go up by 40%

The increases could mean households paying 400 more a year on average for their gas and electricity, senior industry sources have said. The increase is far more than analysts have predicted in recent months. It would put more pressure on homeowners already struggling with higher food and fuel costs.

Posted by hillsie @ 05:45 AM 0 Comments

Keep on spending......

This is Money (daily Mail): Brits shaking off credit crunch worries

Despite malignant market conditions, a housing market in stalemate and soaring inflation more than a third of Brits do not believe that the credit crunch will affect them...........

Posted by eagle @ 12:46 AM 0 Comments

Cash rich Aberdeen property slide

Press and Journal: housing bubble could be on the brink of bursting

Who said Scotland was going to be different to other parts of the UK even in the oil capital of europe prices are going to take a big hit .

Posted by johnnyp @ 12:23 AM 0 Comments

Wednesday, June 18, 2008

The Governor of the Bank of England has issued a grim warning over Britain's financial future

Sky News: 'Biggest Threat To Economy In 20 Years'

The Governor of the Bank of England has issued a grim warning over Britain's financial future.Speaking at the Lord Mayor's dinner to the bankers and merchants, Mervyn King said the country faces its biggest economic challenge in two decades. He said consumers could expect sharp rises in gas and electricity prices - and a steep fall in purchasing power with no pay rises likely. Mr King warned that families could expect to bear the brunt of the slowdown.

Posted by jack c @ 10:55 PM 5 Comments

UK houses more overvalued

FT: Hedge fund chief pessimistic about UK property

Financial companies could wind up losing as much as $1,300bn in the credit crisis. This is far more than the $945bn in losses predicted by the International Monetary Fund or the $380bn in write-downs already reported by banks

Posted by mken @ 10:36 PM 1 Comments

Laurel & Hardy look to pass the buck to the BOE

BBC: Darling sets out new Bank remit

Chancellor Alistair Darling has outlined plans to give the Bank of England new responsibilities in his Mansion House speech. Speaking in his first keynote address to City chiefs, the chancellor said the Bank will now also be accountable for the UK's financial stability. This is in addition to its statutory objective of setting interest rates. The radical new measures come in the wake of the collapse of Northern Rock amid global credit problems.

Posted by jack c @ 10:07 PM 5 Comments

Globalisation was always going to risk putting G7 bankers

truthseeker: RBS issues global stock and credit crash alert

The authorities cannot respond with easy money because oil and food costs continue to push headline inflation to levels that are unsettling the markets. "The ugly spoiler is that we may need to see much lower global growth in order to get lower inflation," he said. The Fed is in panic mode. The massive credibility chasms down which the Fed and maybe even the ECB will plummet when they fail to hike rates in the face of higher inflation will combine to give us a big sell-off in risky assets. Ambrose Pritchard-Evans Telegraph.co.uk June 18, 2008 why? putting G7 bankers into a dangerous corner - The ECB is hell-bent on raising rates.

Posted by malct @ 09:21 PM 0 Comments

John proposes an alternative strategy

John Redwood: Mansion House - more spin or confession time?

John proposes that if you cut public sector waste you will then be able to cut interest rates. If you don't then families will feel the pain.

Posted by who stole my pension? @ 08:16 PM 4 Comments

According to Brown, F##k the Irish!

BBC News: EU treaty delay proposal defeated

The government has defeated a last ditch attempt to delay the ratification of the EU Treaty for four months. Conservative peers had pressed for the ratification process to be postponed until the response of EU leaders to the Irish referendum "No" vote was clear. But the move by Tory foreign affairs spokesman Lord Howell of Guildford was defeated by 277 votes to 184.

Posted by flintster1994 @ 07:53 PM 6 Comments

Who will lend them the 2bn they need?

Guardian: Taylor Wimpey debt regraded to junk status

The housebuilding sector suffered another blow yesterday when Taylor Wimpey debt was downgraded to junk status. The downgrade, by credit-rating agency Fitch Ratings, comes amid an unprecedented decline in the housing market. Fitch said Taylor Wimpey, Britain's biggest homebuilder, was likely to suffer a "material reduction" in earnings for at least the next two years. It also raised concerns that the company may be in danger of breaching its banking covenants. Most building firms agree to keep their debt at a certain percentage of their asset values.

Posted by little professor @ 07:26 PM 10 Comments

Buried by mainstream media

Teletext (of all places!): MPs in expenses breach

These people have been breaking parliamentary rules by defrauding the taxpayer into paying for a flat they owned outright. Their punishment? Politely asked not to do it again, but allowed to keep on defrauding the public till later this year. One rule when chavs defraud the public purse in benefit fraud, another when those in power defraud the public purse with bogus expense claims. It beggars belief.

Posted by paul @ 07:18 PM 5 Comments

Good old vince!!

Guardian: Vince Cable welcomes prospect of Northern Rock legal action

One of the most vehement critics of the former board of Northern Rock has welcomed the news that they face the prospect of legal action over the bank's crisis last year.

Posted by inbreda @ 05:54 PM 2 Comments

Cpi 3.3%

BBC News: Energy bills could go up by 40%

Household energy bills could increase by as much as 40% this winter, the BBC has learned, as oil and wholesale gas prices hit record highs. The increases could mean households paying 400 more a year on average for their gas and electricity, senior industry sources have said. The increase is far more than analysts have predicted in recent months. I love the Capital Economics comment that RPI would only jump 1% if energy prices rose 40%. Says it all really!

Posted by flintster1994 @ 05:45 PM 4 Comments

sales of mortgages repackaged into bonds are down a whopping 89 per cent

informationclearinghouse: Bush's "ownership society" hits the canvas

The economy is in tatters. Consumer confidence has plummeted, food and energy prices are soaring, and the housing market is experiencing its biggest crash since the Great Depression. Manufacturing is down, unemployment is up, gasoline is topping $4 per gallon, and tent cities are sprouting up throughout the Southwest. If there's a silver lining to this mess; it's not visible from planet earth. The trillion dollar mortgage-backed securities (MBS) market is barely limping along. Investors are brushing off the higher yields and staying on the sidelines. How bad is it?

Posted by malct @ 04:57 PM 5 Comments

strange that Goldman thinks house prices will only drop 6% this year, aren't they already at 4.4 yoy?

Yahoo News: Housebuilders suffer as Goldman sees

Housebuilders suffer as Goldman sees "deep downturn" By Jana Weigand Send Article by Email | Send Article by IM | Blog This with Y! 360 | Printable View LONDON (ShareCast) - Housebuilders were under pressure again today after Goldman Sachs (NYSE: GS - news) warned of a "deep downturn" in the property market that could last up to three years. Goldman predicts that house prices could fall 6% this year and 8% in 2009 as sales volumes continue to fall. "We believe the sharp contraction in mortgage availability has accelerated the house price correction and as a result, the downturn should be shorter than in the early 1990s," said Goldman analysts in a note to clients. "However, we believe that this is highly dependant on lending banks returning to the market w

Posted by zippys @ 03:56 PM 1 Comments

on a scale not seen since the 1930s

Bankingtimes: BIS warns of Great Depression

The Bank for International Settlements (BIS), the organisation that fosters cooperation between central banks, has warned that the credit crisis could lead world economies into a crash on a scale not seen since the 1930s. In its latest quarterly report, the body points out that the Great Depression of the 1930s was not foreseen and that commentators on the financial turmoil, instigated by the US sub-prime mortgage crisis, may not have grasped the level of exposure that lies at its heart.

Posted by malct @ 02:09 PM 21 Comments

Mervyn's other letter to Alistair Badger

The Daily Mash: Inflation Targets...

''It might also have something to do with an unhinged jocko n*t fiddler who has spent the last ten years blowing hot air up the a***hole of every homeowner in Britain.''

Posted by albertini albertino @ 01:02 PM 0 Comments

Ex MPC members take on the BoE current inflation position

Timesonline: Inflation: we can pay now or later

From The TimesJune 18, 2008 Inflation: we can pay now or later The Governor of the Bank of England thinks he can hit his target painlessly. He is wrongWillem Buiter Here is the bad news: inflation, which in May reached 3.3 per cent, is above the Government's 2 per cent target and rising. The Bank of England expects it to top 4 per cent this year. Inflation expectations are also above target and rising. The Bank's own survey puts public perception of current inflation at 4.9 per cent (against 3.9 per cent in February) and its expectation of inflation a year ahead at 4.3 per cent against 3.3 per cent in February).

Posted by flintster1994 @ 12:43 PM 3 Comments

Over 200,000 on the property snake!

propertysnake: Over 200,000 on the property snake!

48.39 % discount and getting higher, 200,124 reduced homes and increasing at a faster rate!

Posted by bfrog @ 11:56 AM 0 Comments

How does Blanchflower manage to keep a straight face?

BBC News: Bank 'considered raising rates'

Some members of the Bank of England's Monetary Policy Committee considered raising rates to curb inflation at its June meeting, minutes have shown. However, the MPC decided an unexpected rise might have exaggerated the level of its concerns about the outlook for inflation, the minutes said. Following its discussions, the committee voted 8-1 in favour of keeping interest rates at 5% in June. One member, David Blanchflower, voted to reduce rates to 4.75%. The committee voted to keep rates on hold for the second month in a row in June after a number of cuts since December last year.

Posted by flintster1994 @ 11:26 AM 8 Comments

And the next bank is...?

Guardian: Northern Rock had Secret Plan

Scares me to think that by the time I have found out that an irresponsible bank is in trouble, it might already be to late to get my money out. Best get cash out of some of the more dodgey ones now.

Posted by inbreda @ 10:02 AM 25 Comments

Darling mentions the possibilities of a return to the 70's

BBC News: Darling calls for pay restraint

Chancellor Alistair Darling has called for restraint in pay settlements and said there is "no doubt" the UK economy is slowing. Speaking to the BBC, he said it would be "disastrous" if we "allowed inflation to take hold". Rising food and fuel prices would make is a "difficult year" for consumers, the chancellor said. He was speaking a day after consumer inflation jumped to 3.3% in May, the highest level in 10 years. "We have got to be vigilant in relation to all pay settlements, public and private," Mr Darling told Radio 4's Today programme. "If we get back into that [inflationary] spiral, it will take years to get out of it," he said. It could even herald a return to 1970s-style inflation, he said.

Posted by flintster1994 @ 08:58 AM 12 Comments

BTL is the UK subprime

FT: BTL landlords are touching the 'void'

"More than 50 per cent of landlords admitted having experienced a "void" time when their property did not generate rent. As a result of these voids, 17 per cent of landlords missed a mortgage payment in the past 12 months up from 9 per cent in quarter four 2007 and the highest level since the research began. still significant demand for the rental sector with people coming off fixed-rate mortgage deals and others selling their property portfolios amid credit uncertainty" Run for cover... Loads of contraddictions!

Posted by confused76 @ 08:52 AM 7 Comments

S&P 500 index of Wall Street equities is likely to fall by more than 300 points to around 1050 by September

The Telegraph: RBS issues global stock and credit crash alert

The Royal Bank of Scotland has advised clients to brace for a full-fledged crash in global stock and credit markets over the next three months as inflation paralyses the major central banks.

Posted by sold 2 rent 1 @ 08:47 AM 73 Comments

Jeff Randell on housebuilders

Telegraph: Housebuilders scream for help after losing their 'one-way' bet

Remarkable, isn't it, how industries that complain about Government interference during boom times are quick to scream for state aid when the going gets tough. First it was the bankers, poor darlings, who demanded help, now housebuilders are calling on ministers to "do something".

Posted by holding out @ 08:28 AM 5 Comments

A Happy Ending

Daily Mail: Strike threat hands Shell tanker drivers inflation-busting pay deal

Shell tanker drivers last night won an inflation-busting pay rise after their four-day strike brought chaos to forecourts. The deal, which is worth at least 14 per cent over two years, will take their average salaries to nearly 42,000 a year.

Posted by yoyo1 @ 08:23 AM 13 Comments

A Lively House Price Blog Debate

Citywire: Why won't home sellers drop prices? Is it just greed?

"Everywhere you go right now there seems to be For Sale signs stacked up along every street. The worsening economic outlook and the spiralling cost of mortgages has clearly put a major dampener on peoples willingness and/or ability to buy houses - certainly at current prices, anyway."

Posted by w smith @ 07:46 AM 9 Comments

Is this the start of reconnecting MP's with the real world?

Daily Telegraph: Gordon Brown blocks pay rises for MPs

Gordon has blocked a 650quid per year pay rise for MPs stating that it is important to limit pay rises and thereby inflation. In addition, Gordon has called for a review of MPs gold plated, index linked, final salary pension schemes. Is this the start or reconnecting our MPs with the real world? For this to happen MPs salary, pension, expenses and taxes must be the same as everyone else. Its a start, but lets not be fooled in to thinking this move will solve it. For MPs this moves leaves open two escape roots, these being increased expenses and further liberty with the tax laws. The next move must be to shut down the special department in HMRC that deals only with MPs taxes why do MPs need such a special department? Oh to apply the laws differently!

Posted by who stole my pension? @ 06:03 AM 2 Comments

Deflation

Telegraph: Deflation rather than inflation could soon be our big worry

Imagine my pleasant surprise when I typed in 'UK deflation' to google and instead of the same old old articles that always come up, this little gem appeared. The mixed comments at the bottom are good. Makes the point that current inflation is the final inflationary flare off before deflation. Actually it doesn't state this exactly but suggests a strong possibility. I have a new respect for Roger Bootle.

Posted by stillthinking @ 12:18 AM 2 Comments

Aberdeen house prices about to fall

The Press and Journal: Housing bubble on brink of bursting

Even in the oil rich!!Aberdeen and the North East of Scotland house prices are starting to drop .OH but it will not happen in Scotland !! Yea whatever and why not ????

Posted by johnnyp @ 12:09 AM 0 Comments

Tuesday, June 17, 2008

Wigwam and a pony anyone?

Times Online: Fuel, food and a roof over your head - the pressure is on

Rising prices adding to struggle for young professionals to get their foot on gthe ladder - or in fact be able to stay there.

Posted by rental john @ 10:21 PM 0 Comments

Cross-section of index'es, and graph

Times Online: How house prices have fallen during credit crunch

Should you drop your house price to sell? see main article at http://property.timesonline.co.uk/tol/life_and_style/property/buying_and_selling/article4122799.ece

Posted by rental john @ 10:17 PM 0 Comments

A mismanaged economy, getting deeper into trouble

Telegraph: Mervyn King's inflation letter signals interest rates will flatline this year

''.....With the consumer price index hitting an 11-year high of 3.3pc and Mervyn King warning that inflation will rise above 4pc, your initial assumption might be that this will mean higher interest rates. However, the letter from Mr King to the Chancellor this morning has, on the contrary, allayed such worries, and if anything seems to rule out any further interest rate hikes....''

Posted by hpwatcher @ 09:55 PM 2 Comments

Media Lies

The Huffington Post: Is the Media's Manipulation of Market News to blame for the Current Market Meltdown?

The problem is that Big Media in America has, over the past fifty years, consolidated into a copyright cartel.False GDP numbers, false employment numbers and false inflation numbers have become the daily grist for CNBC and Fox Business. It stands to reason that Americans making economic decisions for themselves and their families are making bad decisions.

Posted by sold out @ 06:00 PM 3 Comments

Open letter to the Governer and the Chancellor

BBC News: Peston on the warpath

I don't recognise the economy you describe, even though I am supposed to live in it. You could be referring to economic conditions on Mars, not the financial pressures facing our family. The thrust of your letters appears to be that salaries and wages must, under no circumstances, rise to compensate for the squeeze in living standards precipitated by the recent jumps in fuel, power and food prices. Mr King is implying that families like mine should grin and bear a fall in our living standards. Our main outgoings - food, energy and petrol - have gone up by much more than the 3.3% figure.

Posted by little professor @ 05:44 PM 13 Comments

Credibility of U.S. financial markets is zero

The New York Times: Booming, China Faults U.S. Policy on the Economy

In the last six weeks alone, a senior banking regulator blamed Washingtons warped conception of market regulation for the subprime mortgage crisis that is rattling the world economy; the Chinese envoy to the World Trade Organization called on the United States to halt the dollars unchecked depreciation before the slide further worsens soaring oil and food prices; and Chinese agencies denounced a federal committee charged with vetting foreign investments in the United States, saying the Americans were showing hostility and a discriminatory attitude, not least toward the Chinese.

Posted by sold out @ 05:43 PM 5 Comments

Four-year wait for house price rally

FT: Four-year wait for house price rally

FT seems to believe the market will bottom out next year? Only 1 year of prices declining, that's not good.

Posted by david20040_0 @ 05:43 PM 14 Comments

Petrol station drops 1.99 charge

BBC: Petrol station drops 1.99 charge

There you go. Group think. Pushed into a less flexible pricing model by a group of people who thought they knew better and didn't. But hey so long as the lights go out at the same time for all of us .. that's better.

Posted by whiteknight @ 03:34 PM 10 Comments

By throwing tax payers's money at it!

Property Week: Flint says Government can cope with housing crisis

Housing minister Caroline Flint said today that housing supply was her main priority and said the government had a range of plans to alleviate the poor housing market conditions. And low cost home ownership plans for households with incomes of less than 60,000 I wish I could aspire to even half that amount!

Posted by rental john @ 03:17 PM 4 Comments

Follow Your Leaders

Evenind Standard: Crunch, what crunch? MPs ask for 21% rise

MPs were today revealed to be asking for a 21 per cent pay rise - worth 13,180. Their demand caused outrage on a day the economy fell deeper into crisis, with inflation bursting its official ceiling to hit 3.3 per cent. It came as the Government is ordering ordinary people to show pay restraint.

Posted by yoyo1 @ 03:15 PM 18 Comments

A lot of money to provide a drop in the ocean!

Inside Housing: HCA formation to save one billion pounds

The creation of the Homes and Communities Agency will save over a billion pounds in its first five years of operation, the housing minister has said. Caroline Flint told the Chartered Institute of Housing conference in Harrogate that the savings would allow around 15,000 social homes to be built.

Posted by rental john @ 03:10 PM 0 Comments

Who will they lend to?

Channel 4: Woolwich drops two home loan deals

The Woolwich withdrew two of its products as it became the latest lender to raise its mortgage rates. The group is no longer offering a lifetime tracker mortgage for people wanting to borrow 80% of their home's value, while it has also temporarily withdrawn its two-year fixed rate mortgage deals. It is also increasing the rate it charges on its lifetime tracker mortgage by 0.25%.

Posted by rental john @ 03:05 PM 0 Comments

importing inflation

bbc: China's yuan rises as talks begin

The yuan rose to a high of 6.8918 per dollar - a gain of 20% since it ditched the fixed exchange rate.

Posted by seanb303 @ 01:47 PM 2 Comments

Frankenstein forecasts 20% drop

Knight Frank: June News Release

So, the ex-public school drop-outs finally accept that gravity pulls south. Interestingly, this is release 2 - so one wonders what they put in the first draft before going public. On top of Humberts getting torpedoed last week, this is terribly awful news for the poor Henries and Carolines currently flunking their 'A'-levels - no cushty agency job in uncle George's firm to go to - ahhh. What are all these useless non-agents and ex-agents going to do?

Posted by cha55a @ 01:24 PM 1 Comments

The social cost of property porn

BBC News: Families face six year home wait

A family whose home is repossessed may have to wait more than six years before they are permanently rehoused in a two bed home, council leaders have warned. The number of families on social housing waiting lists in England will hit five million by 2010, they claim. They blame a combination of falling house prices, the credit crunch and a lack of affordable homes.

Posted by quiet guy @ 01:22 PM 5 Comments

Denial, Denial, Denial

Reuters: Bank cools rate rise outlook

Inflation's running rampant, no-one actually believes the Corrupt Porkies Index, yet the BoE are signalling that they won't raising interest rates. The longer they leave it, the harder we all fall...

Posted by imminent_plunge @ 01:07 PM 0 Comments

Recession looms for UK economy and will make house crash worse.

MSN: Recession looms for UK economy

House prices to fall by at least twenty percent and it could easily be much worse. Hehehehe

Posted by mytimeisnigh @ 01:05 PM 0 Comments

BIS warns of Great Depression is actually a year old already

bankingtimes: Central bank body warns of Great Depression

The Bank for International Settlements (BIS), the organisation that fosters cooperation between central banks, has warned that the credit crisis could lead world economies into a crash on a scale not seen since the 1930s. In its latest quarterly report, the body points out that the Great Depression of the 1930s was not foreseen and that commentators on the financial turmoil, instigated by the US sub-prime mortgage crisis, may not have grasped the level of exposure that lies at its heart.

Posted by malct @ 12:57 PM 3 Comments

Anne Ashworth rewarded for loyal VI service

Press Gazette: Times' Anne Ashworth scoops hat-trick at headline property awards

Go Anne - all that ramping and HPC denial was worth it in the end!

Posted by patient london ftb @ 12:56 PM 1 Comments

Dear Chancellor by Willem Buiter

FT: Dear Chancellor...

Dear Chancellor, There it is: 3.x%, with x > 0. What can I say? As that great philosopher Forrest Gump said: shit happens. I wont insult your intelligence the way both of us have at times seen fit to insult the intelligence of the British public - by claiming that the rising world prices of energy, food and other commodities lie behind the increase in the rate of inflation in the UK, the USA, the Eurozone and most of the rest of the world. When the currency floats, as is the case for sterling, central banks make inflation.

Posted by stevie dee @ 12:28 PM 0 Comments

Beat the Property Slump

ITV1: Tonight: Beat the Property Slump

Mark Jordan gambles 225,000 of his own money to see if he can still profit in Britians tumbling housing market in an nod to Beenie & Kirsty.

Posted by doomwatch @ 12:19 PM 6 Comments

Write to Alistair Darling

BBC Five Live: A letter to the chancellor

This morning we want you to write your own letter to the Alistair Darling about your money situation - are you feeling poorer? And what do you want him to do to help you? We'll send your letters on to the Chancellor and see how they compare with Mervyn King's letter.

Posted by doomwatch @ 11:50 AM 0 Comments

Letter from the Chancellor of the Exchequer to the Governor of the Bank of England regarding inflation 17/06/08

HM Treasury: Letter from the Chancellor of the Exchequer to the Governor of the Bank of England regarding inflation 17/06/08 (PDF 656KB)

In May 2008, the CPI inflation figure exceeded 3 per cent, and the Governor published an open letter to the Chancellor at 10:30 on 17 June 2008, explaining the reasons why inflation moved away from the target, the policy action being taken to deal with it, and the period within which the MPC expects inflation to return to target. The Chancellor published a letter to the Governor at 10:30am on the same day.

Posted by stevie dee @ 11:05 AM 0 Comments

Contrived Price Index

Telegraph: Government's measure of inflation might as well stand for Chinese Prices Index

Inflation is rising so rapidly that, contrary to what most experts predicted just a few months ago, interest rates may soon have to go up - not down. The Government's favoured measure of how fast prices are rising - the Consumer Price Index (CPI) - has today registered inflation hit 3.3 pc last month. But that is so far removed from most people's experience of prices in the shops and at the petrol pump that CPI might as well stand for the Chinese Prices Index. This is why The Daily Telegraph has launched the Real Cost of Living Index (RCLI).

Posted by flintster1994 @ 10:53 AM 17 Comments

Letter from the Governor to the Chancellor

Bank of England: News Release

Read at your leisure...

Posted by stevie dee @ 10:53 AM 0 Comments

Big job cuts at Goldmans

City A.M.: Goldman Sachs lays off hundreds of investment bankers

It's allegedly sackiong 25% at VP level; just the demographic that are likely to beu p to their eye balls in 6-10 x salary mortgages and never though property prices would fall.

Posted by doomwatch @ 09:57 AM 13 Comments

Inflation Rate Rises To 3.3%

Yahoo: Inflation Rate Rises To 3.3%

The official rate of inflation has jumped to 3.3% - its highest level since Labour came to power in 1997. The figure for May was well above April's level of 3%, pushed up by high fuel and food prices.

Posted by crash n burn @ 09:56 AM 18 Comments

Governor Mervyn King has to write an open letter to the government

Reuters: Bank to explain higher inflation in May

LONDON (Reuters) - Inflation rate rose more than expected in May to its highest since the Labour government came to power in 1997 and the Bank of England will now have to explain how it will bring prices back under control.The Office for National Statistics said on Tuesday consumer prices rose 0.6 percent last month, taking the annual rate up to 3.3 percent from 3.0 percent in April. Analysts had expected a reading of 3.2 percent and May's figure is the highest since the series began in 1997.

Posted by jack c @ 09:54 AM 0 Comments

Not a suprise.. but still not reflecting the true level

BBC: UK consumer inflation up to 3.3%

Rising food and energy prices have pushed UK consumer inflation up again, the Office for National Statistics (ONS) has said. The Consumer Prices Index (CPI) measure of annual inflation was 3.3% in May, up from 3% the previous month.

Posted by stevie dee @ 09:42 AM 0 Comments

Mervyn King's first draft

FT - Lex: Mervyn King's first draft

Much maligned on hpc, Mervyn's first draft to Darling...

Posted by james @ 09:32 AM 4 Comments

Fury as Britain's greediest petrol station charges 1.99 a litre

Daily Mirror: Fury as Britain's greediest petrol station charges 1.99 a litre

Two things: 1. A higher price with less supply would indeed moderate demand in a sensible fashion would it not? 2. If the guy has half the petrol to sell in a week than he normally has - doesn't he have to sell it at twice the price to remain in business. Otherwise - he will go out of business and there will be less service stations.

Posted by whiteknight @ 09:26 AM 17 Comments

"In November, there was a second run"

MailOnline: Revealed: The secret plans Northern Rock made to pull the plug

Secret plans were drawn up by Northern Rock which would have closed the bank within hours in Operation 'Rapid Plan', the Daily Mail can reveal. Accounts would have been frozen, cash machines switched off, every branch closed and online services axed for the closure on what was dubbed 'D-Day'. The measures show how the stricken bank had made intricate plans if it needed to hit the panic button.

Posted by jack c @ 08:58 AM 3 Comments

How sentiment has changed in a just a few months

Mirror.co.uk: The house price slump.. one street tells its story

For hard-pressed homeowners the news just keeps on getting worse. The value of your home could tumble by as much as 30 per cent, according to the latest research. And experts are warning that house prices could take up to four years to climb back to 2007 levels. It's yet another blow for families already struggling to meet rising mortgage repayments, needing to move or at risk of falling into negative equity.

Posted by housebear @ 08:57 AM 10 Comments

Interest rate rises today?

Guardian: Inflation fears force Bank into a corner

The article subtitle is 'City expects price pressures to trigger rise in interest rates instead of cuts.' Could this be the start of a trend or will the BoE hold rates again?

Posted by quiet guy @ 08:27 AM 5 Comments

What a difference a few months makes!

Timesonline: Families in a fix as the crunch gets worse

The credit crunch tightened its grip on families last night as two big mortgage lenders raised their rates or withdrew deals, the price of oil hit another record and figures showed that new housebuilding projects are about to fall to their lowest level since the Second World War. There are growing fears about funding shortages. High street banks, which have been battered by the credit crunch, are asking shareholders for extra cash to plug the gaps caused by losses they suffered as a result of the American sub-prime crisis.

Posted by flintster1994 @ 07:12 AM 3 Comments

Monday, June 16, 2008

Goldman close to restructured $7bn SIV deal

FT.com: Goldman close to restructured $7bn SIV deal

I don't understand the detail of this. Does anybody else?

Posted by whiteknight @ 11:40 PM 5 Comments

CBI says growth will be slow (but not negative, never!)

CBI: Slowest growth in seventeen years expected for 2009

"Rising commodity costs and weaker consumer demand will combine to push down next years GDP growth to the lowest rate since 1992, according to the CBIs latest UK economic forecast. The UKs biggest employers group said today (Monday) that it has lowered its forecast for GDP growth in 2009, by 0.4% to 1.3%. The forecast for growth in 2008 is essentially unchanged, at 1.7%, down only 0.1% on March's forecast."

Posted by drewster @ 09:36 PM 3 Comments

Property Ladder wannabe gets burned

Telegraph: I'd dance nude in the street if my buyers wanted

From the guy who brought you tonight's Tonight show, comes this tale of woe of a would-be property developer who buys a run-down ex-council house in London in the hope of making the big bucks. Everything goes wrong, but in true Property Ladder stylee, he still makes a (small) profit.

Posted by little professor @ 08:40 PM 2 Comments

Well worth watching a re-run (Part 2 on Friday of this week)

ITV.com: Beat the property slump: Tonight, Mon 16 June, ITV1, 7.00pm

ITV1s Tonight programme has commissioned an exclusive survey to give us a real sense of what is going on in the property market. It is the most independent authoritative forecast since the credit crunch began. We asked the Society of Business Economists - the leading organisation representing business economists in the UK - to survey their members on what they thought would happen to the housing market over the next few years. 225 of the best informed minds in the country replied. SEE SURVEY RESULTS

Posted by jack c @ 07:30 PM 10 Comments

Where are the fault lines? Property prices?

Telegraph: Morgan Stanley warns of 'catastrophic event' as ECB fights Federal Reserve

"The clash between the European Central Bank and the US Federal Reserve over monetary strategy is causing serious strains in the global financial system and could lead to a replay of Europe's exchange rate crisis in the 1990s, a team of bankers has warned".

Posted by alan @ 07:07 PM 0 Comments

Yet another bites the dust

FT: HSBC closes HFC Bank division

HSBC Group is to terminate all second charge mortgage lending through its intermediary brand Endeavour Personal Finance (EPF), FTAdviser.com can reveal.Seventy EPF staff have entered into a consultation period and intermediaries have been told that all applications need to be completed by the close of business today (16 June). Any pipeline business needs to be completed within 30 days.EPF was operated as a division of HFC Bank, which HSBC bought as part of the purchase of US specialist lender Household. However, the US parent company has been under increasing pressure due to bad debts from the US mortgage crisis.

Posted by jack c @ 06:41 PM 1 Comments

Industry Bad Name?

times: Estate agents should sit an exam before they sell a house

Estate agents should be forced to sit an exam before they are allowed to sell a house, an influential report has recommended. Estate agents should sit an exam before they sell a house Estate agents might be sitting more of these There are too many "rogues" giving the industry a bad name, Sir Bryan Carsberg said, unveiling his year-long report into the residential property market.

Posted by mken @ 06:15 PM 6 Comments

On historical trends I predict nearer 10 years would be a fare bet...

This is money: House price slump 'to last four years'

The gloomy message comes from some two-thirds of 225 members of the Society of Business Economists surveyed for ITV1's Tonight programme. I've plotted what could happen based on historical trends.....and estimate that it could take 6-7 years to fully bottom out, and a further 3 years to see any noticable rise, and no prices close to the last peak until after 2020! Time to batten down the financial hatches!

Posted by rental john @ 05:54 PM 0 Comments

Thought I'd post this in case you want to research further???

First Rung Now: 10% off New Homes at The Gateway

"The 10% offer reflects our commitment to helping first time buyers to get onto the property ladder and will enable them to use the money they have saved for furnishings, a summer holiday, a new car or towards their first mortgage payments. The offer is only available until the end of June so interested purchasers should visit as soon as possible in order to avoid disappointment."

Posted by rental john @ 05:43 PM 0 Comments

More dry rot found in foundations of UK banking?

Reuters: HBOS faces scrutiny on UK housebuilder exposure

HBOS owns 50 percent of private housebuilding firm Crest Nicholson, and the value of that stake could be marked down to reflect a slump in the value of its debt and in the share price of listed housebuilders, analysts said.

Posted by rental john @ 05:36 PM 0 Comments

After the comedy from David Smith, reality really stinks for homeowners and BTLs!

Times: Woolwich pulls out of two-year fixed-rate mortgages

Tough luck for those who have to remortgage in 2008. "The Woolwich, the lending arm of Barclays, will tomorrow withdraw all of its two-year fixed rates from the market, citing the need to control customer volumes. The lender has also increased fees from 595 to 995 on tracker rate deals." The Woolwich announcement comes on the same day that the Nationwide Building Society, the UK's second largest mortgage lender, ramped up rates by up to half a percentage point for the second time in two weeks" Got the new meaning of "supply & demand"?? There is alot demand for mortgages and nada money supply! Bet mortgage rates will hit 10% by year end

Posted by confused76 @ 05:06 PM 12 Comments

A Four-Year Cycle

London Stock Exchange: Economists predict four-year wait for house price recovery

They believe 2012 prices will equal 2007 prices. Bless.

Posted by rumble @ 04:47 PM 3 Comments

Equity release

BBC Radio 4: Money Box Live: Equity release: your questions

On Monday's Money Box Live, Paul Lewis and a panel of experts took your calls on using the value of your home to generate extra income in retirement, what's known as 'Equity Release'.

Posted by doomwatch @ 04:08 PM 3 Comments

The Bank of England could be forced to raise interest rates this year as part of its battle against inflation

Citywire: Rising swap rates drive fixed mortgages higher

Soaring swap rates are pushing the cost of fixed-rate mortgages through the roof but they may be the only option for borrowers who cannot afford the risk of a Bank of England interest rate hike to control inflation. Figures from the Bank of England suggest the average cost of fixed-rate mortgages are at an eight-year high, averaging 6.92%. But historically, fixed-rates are low; the Bank of Englands average fixed-rate mortgage spiked to around 7.55% in 1998.

Posted by jack c @ 03:42 PM 0 Comments

How long has Poxtons got?

Telegraph: Countrywide and Foxtons have more than property on their books

Countrywide is in the fortunate position of having no covenants on its bonds; it just has to keep meeting interest payments until things pick up. Foxtons, on the other hand, does have banking covenants. It has quarterly targets that it must hit, which measure its turnover in relation to the amount of debt it has.

Posted by rental john @ 03:28 PM 0 Comments

Paid for with blood money!

Independent: Mystery as Euan Blair buys flat in London for 550,000

Euan Blair, the son of the former prime minister, is thought to be the new owner of a 550,000 two-bedroom flat in Islington, north London despite not starting his graduate traineeship at the bank Morgan Stanley until the end of this month.

Posted by papabear @ 02:51 PM 0 Comments

Pinky: What now brain? Brain: We should flee for our lives, yes that would be the wisest course!

thisismoney.co.uk: Advice for Bradford & Bingley customers

From 2nd June, but still interesting: "This is NOT another Northern Rock. That was the message today from everyone involved in the Bradford & Bingley cash injection." Ok, so here are your choices as a depositor with B&B: 1. Trust B&B to look after your cash for you. 2. Trust the government to protect your savings when B&B goes pop. 3. Discreetly start removing your cash and put it somewhere safer. I know what option I would choose.

Posted by last_days_of_disco @ 02:40 PM 9 Comments

Estate agents 'need regulating'

BBC: Estate agents 'need regulating'

I have lost count of the number of times this has been "called for" as the press likes to put it, but nothing is ever done. Wonder why ?

Posted by doomwatch @ 02:24 PM 2 Comments

Great comedy!

DavidSmith: Good news in the housing market

"The house-price index produced by the Department for Communities and Local Government (DCLG) showed a rise of 0.7% in April and was 4.9% up on a year earlier" "Jeremy Leaf, housing spokesman for Rics, saw some green shoots in the figures, with an easing of the pace of decline in new buyer inquiries and the fact that the gloom on prices did not increase further (not that there was much room for it to do so)" My sides are splitting, can anyone please laugh for me?

Posted by confused76 @ 02:02 PM 9 Comments

Mortgage rates on the rise (again)

mortgagestrategy: Nationwide hikes fixed rates

Nationwide is increasing fixed rates across its product range and on the 90% LTV tier of lifetime tracker deals. The changes are largely due to the rising costs of funds and they take effect from Tuesday June 17.

Posted by jack c @ 01:41 PM 1 Comments

After the flood

Guardian: The City has got its head in the clouds if it thinks business can go on as usual

The case for tighter regulation of the banks. No question that this is needed in my view. It's certainly a prerequisite for a more stable, and dare I say fairer economy.

Posted by letthemfall @ 12:21 PM 2 Comments

The good news about the housing crash

MoneyWeek: The good news about the housing crash

Desperate housebuilders are demanding the government 'do something' about the housing crash. But the credit crunch should mean that house prices settle at a level that genuinely reflects supply and demand...

Posted by damien @ 11:51 AM 9 Comments

Take Gazundering to a whole new level!!

ThisIsMoney: Housebuilders hit by gazundering

"Housebuilders, already reeling from the fallout from the credit crunch and tumbling house prices, face a new menace - 'gazundering' by buyers after they have exchanged contracts" but buyers are sha*ted anyhow, 'cause "'It is sometimes cheaper for them to walk away from the deposit.'

Posted by confused76 @ 11:38 AM 2 Comments

How Much is/was Humberts Worth?

Estate Agency News: HUMBERTS RESCUED

THE Mercantile Group, co-owners of Chesterton, has come to the rescue of Humberts by paying 3.1 million for most of the business. Mercantile has bought 34 Humberts offices, 10 franchises, including the Farley and Wellington estate agencies, and the Humberts brand name. I know a Nigerian with 340,000,000 he needs to move out of the country, wonder if Mercantile would be interested in that too?

Posted by renting2 @ 11:25 AM 1 Comments

Credit Crises Worse is Yet to Come

The Market Oracle: Credit Crisis Crushing UK Banks

One of the primary indicators of the depth of the ongoing credit crisis is the interbank LIBOR market which as the below graph clearly indicates that the credit crunch Tsunami waves have turned into a perpetual flood of risk averseness as banks refuse to lend to one another.

Posted by nadeem walayat @ 11:09 AM 0 Comments

Foxtons on the rocks

FT: Sale of the century

A great article. Clear that the company is headed for receivership.

Posted by confused76 @ 10:37 AM 13 Comments

Self-fulfilling prophecies...

Metro: House prices 'to fall 20 per cent'

I love headlines like this, who in his right mind is going to buy today?

Posted by mark wadsworth @ 10:17 AM 5 Comments

FT Index shows 3 month consecutive falls for first time since 1995

Firstrung: UK house prices fall for the third consecutive month- FT Index

UK house prices fall for the third consecutive month- FT Index Dr Peter Williams, Chairman of Acadametrics, comments, "House prices in England and Wales fell by 0.6% in May making this the third consecutive month of nominal price falls recorded by the FT index - the first time this has happened since April 1995. The average house price has fallen by 2,715 from a peak of 231,539 in February to 228,824 in May; back to where we were in August and September 2007."

Posted by converted lurker @ 10:14 AM 6 Comments

Limbo Time - How low can you go.

BBC: CBI cuts UK growth forecast again

UK economic growth will slow to its lowest level since 1992 next year, employers' group the CBI has warned. In March, the CBI lowered expected GDP growth for 2009 from 2.1% to 1.7%. It has revised the number downwards once more, now putting expectations at 1.3%, as households tighten belts due to higher food and fuel prices.

Posted by stevie dee @ 09:59 AM 0 Comments

New Zealand is on the cusp of a downturn and risks seizing the dubious honour from the US of becoming the worlds first developed nation to sink into recession, as measured by two consecutive quarters of negative gross domestic product growth

ft.com: New Zealand poised to fall into recession

New Zealand poised to fall into recession he land of the long white cloud has enjoyed a 10-year economic boom driven by exports of milk, butter and cheese, a population riding a housing market boom and tourists eager to sample the landscapes depicted in Hollywood films such as The Lord of the Rings. But New Zealand is on the cusp of a downturn and risks seizing the dubious honour from the US of becoming the worlds first developed nation to sink into recession, as measured by two consecutive quarters of negative gross domestic product growth.

Posted by big chris @ 08:41 AM 0 Comments

How to lose 87million?

Telegraph: Property investment: 'Don't choose flats, go for houses'

"Talk of the housing market falling is misleading," says Fergus Wilson. The Wilsons have over 877 properties in their portfolio and 35% equity. Present 'valuation' is 250,000,000. If prices drop 35% in the next few years - they will have 'lost' 87,000,000 that they could have had now - if they could sell them all without crashing their local market...

Posted by cornishman @ 08:27 AM 32 Comments

housing rebound will take years

yahoo news: housing rebound will take years

so called experts changing their minds by the day..personally I would say 15 years to hit the 2008 highs

Posted by taffee @ 07:55 AM 1 Comments

Senior figures described the Government as "dithering" and having its "head in the sand" and warned of mass redundancies across the sector without state intervention.

Daily Telegraph: Housing chiefs call for state action

Leading housebuilders have blasted the Government for failing to help out the ailing sector...............Senior figures described the Government as "dithering" and having its "head in the sand" and warned of mass redundancies across the sector without state intervention.

Posted by eagle @ 07:47 AM 0 Comments

20% in 4 years?

the daily male: house prices to plunge

just in time for the end of the world 2012.

Posted by 3 little pigs @ 05:20 AM 3 Comments

In short, if our luck runs out we'll slow to the point of recession. If we do reach that point, my bet is the recession will be a severe one.

smh: Ketchup theory will slow economy sharply

If I'm anywhere near right, concerns about inflation will soon evaporate, as will the financial markets' expectations of more interest rate rises to come

Posted by big chris @ 04:17 AM 1 Comments

Sunday, June 15, 2008

Former U.S. Federal Reserve Chairman Alan Greenspan said on Friday the Fed will have to tighten monetary policy to put a brake on inflation, adding that the worst of the credit crisis may have passed.

reuters: Greenspan sees Fed getting tough on inflation

Growing price pressures have led the U.S. central bank to recently shift to more aggressive anti-inflation rhetoric, and expectations are rising that policymakers will raise benchmark U.S. interest rates within months.

Posted by big chris @ 09:42 PM 0 Comments

After Ireland's rejection of the Lisbon Treaty, a split began to emerge Sunday in European capitals over whether to press Dublin to hold another vote - with an implicit threat to consign the Irish to an outer ...

iht.com: Split emerges in EU after Irish rejection of Lisbon Treaty

Split emerges in EU after Irish rejection of Lisbon Treaty International Herald Tribune - 1 hour ago : After Ireland's rejection of the Lisbon Treaty, a split began to emerge Sunday in European capitals over whether to press Dublin to hold another vote - with an implicit threat to consign the Irish to an outer ...

Posted by big chris @ 09:41 PM 0 Comments

100,000 homes built in 2008 - any buyers?

Observer: New homes slump worst since 1945

The number of homes built in Britain this year will plunge to its lowest level since 1945 and plummeting construction activity is expected to lead to the loss of 100,000 jobs. The country's most senior housebuilders confirm that completions will be around 100,000, some 70,000 less than last year.

Posted by mken @ 05:02 PM 19 Comments

Better late than never!

Independent: Review calls for letting agents shake-up

"Property agents in the rental sector must be better regulated, a major housing report launched tomorrow will conclude. The Carsberg Review of Residential Property is expected to argue that the 1979 Estate Agents Act needs to be updated so that estate and letting agents require an entry-level qualification".

Posted by alan @ 01:48 PM 11 Comments

CEO of ailing Barratt says "It's all a conspiracy!"

Guardian: Falling like a ton of bricks

Oh dear. When it comes to desperation, saying its all a conspiracy by people out to get you usually means the game is up and its time to go quietly.

Posted by paul @ 01:41 PM 25 Comments

The Bricks Chick suprema hits again

TimesRosieMillard: It's a good time to be a buy-to-let landlord

"it is not a good time to sell a house, a lot of people are not doing so. They are staying put and hoping the downturn will blow over (which, in due course, it will). So, because nobody is selling much, there is a growing volume of people who want to buy, but cant. In the meantime, because they need to live somewhere, they are renting. Theres a second group - whom I rather disparagingly described as vultures in my column last week - beady-eyed purchasers who hope to get a bargain if they hang around for long enough. These people are also renting. Then there are those who are in the rental market, because renting suits them or because they cant afford to buy. Yet. Meaning what, dear reader? It is a jolly good time to be a buy-to-let landlord"

Posted by confused76 @ 01:24 PM 24 Comments

We CAN do it

i power: How to stop Corporations killing the Internet

I recently posted about plans to end the free access internet system. It was a negative article with no real hope. However, I have written an article in i-power's forum that I hope can engage people into solutions to the risk to our freedom to meet in websites like houspricecrash.co.uk and discuss and debate. This is extremely important to houseprices, because, without websites like this, we would only have been exposed to vested interest articles and would not have been able to debate lies in the press. Without it, many of us would be significantly poorer. I for example almost mortgaged my life away on a 250k hovel in Hackney! So I encourage you to take on board this approach and take it back to your other online communities.

Posted by planning4acrash @ 11:53 AM 20 Comments

David Smith's at it again. Now he tries to tell everyone that rates won't rise

Times Online: Bank of England moves to dampen fears of rate rise

In many mays, David Smith is extraoridnarily naiive when he puts pen to paper. He believes that by stating something, it might just become so. Example - the first line of his article reads "THE Bank of England is set to calm fears this week that it will respond to inflationary worries with early interest-rate rises." Why is the bank set to do this? Becuase he says it is in today's Times Online! Even though this odd strategy has never worked, and has indeed sunk his own credibility in the process, he persists. I suppose Smith hopes that contrary to what the LIBOR is doing, and contrary to what the ECB is doing, somehow Mervyn King telling the UK that 'inflation will return to the long term target' might just make everyone forget about soaring food costs and soaring petrol prices.

Posted by paul @ 11:28 AM 2 Comments

Just can't bear to sell for less

Observer: Sellers beat the slump by renting homes

Seems a strange decision to let. Even if one is rich enough to be able to afford to buy two houses, the tax implications and the hassle of letting, not to mention the steady decline in equity, does not make letting look a particularly tempting option. Still, more choice for us renters.

Posted by letthemfall @ 10:24 AM 17 Comments

Sale of the Century

FT.com: FT Magazine

A genius tale of corporate egos and unshakeable self-belief culminating in some serious head-scratching for Private Equity investors. Sublime.

Posted by fergus31 @ 10:00 AM 0 Comments

The penny drops for citizen O'Kane

Times: Should you drop your house price to sell?

"her immaculately renovated home was put onto the market at 650,000 - some 250,000 more than she had paid for it 18 months earlier. The valuation was, to put it mildly, somewhat optimistic" Now, after receiving just one offer - of 500,000, rejected at the time as derisory" that was still 10% hgher she had paid... she will regret in due course!

Posted by confused76 @ 09:30 AM 10 Comments

He should read the HPC......where has he been?

Observer: Darling to warn about parlous state of UK plc

Alistair Darling will offer a sombre assessment of an economy buffeted by rocketing commodity prices and the credit crunch when he delivers his first Mansion House speech on Wednesday. Rising food and fuel prices have boosted inflation, just as the Bank of England struggles to contain the impact of falling house prices. Darling will warn that this is by far the toughest test yet for the policy-making framework set up by Gordon Brown in 1997.

Posted by eagle @ 09:09 AM 0 Comments

Private Equity hit the rocks... like in 2002!

Times: Deals head for rocks

"Housebuilder Crest Nicholson and retirement-home operator McCarthy & Stone have both seen their debt trade at distressed levels, as have estate agents Foxtons and Country-wide. All were bought by private equity last year" There is an in-depth analysis of the upcoming collapse of Foxtons in the FT this weekend (but can't find on internet)... a joy to read!

Posted by confused76 @ 09:07 AM 4 Comments

Help! We're going under! Splash!

The Telegraph: City plots rescue plan for ailing housebuilders

A group of Britain's biggest institutional investors are working on secret plans to provide direct funding to shore up the beleaguered housebuilding sector. Housebuilders have been squeezed by the slowdown in the housing market, while still having to pay for building works Bankers at UBS have drawn up possible plans for a wide-ranging placing by major shareholders in companies including Taylor Wimpey and Barratt Developments. The radical move comes after a plea from investors to the housebuilders, through their financial advisers, to abandon any plans to launch rights issues. One top investor said: "The message was, 'Please don't do a rights issue, just come to us and we'll put some money into a kitty and recapitalise the businesses directly'."

Posted by flintster1994 @ 09:03 AM 5 Comments

Noone can save housebuilders from themselves!

Times: The roof caves in on Barratt CEO Mark Clare

" using big incentives to drum up custom. It is offering homebuyers a quarter of the value of a new home interest-free for 10 years" why not to cut prices? simple: This may come out the other side as quickly as we went in. By next spring the mortgage banks will be lending again.

Posted by confused76 @ 08:59 AM 2 Comments

Workers too poor and weak to cause stagflation

Gurdian: Can we keep stagflation at bay this time?

The essence of this article is that we won't have a rerun of 70s style stagflation because globalisation and union weakness have removed power from the workers to push through inflationary wage rises. So this is an argument for not raising IRs. Cue more HPI. The only people with any wealth after this will be primary industry shareholders and workers, and owners of assets. The rest of us will be much much poorer.

Posted by voiceofreason @ 08:23 AM 9 Comments

More Bearfood

Guardian: Homeowners need housing benefit too

"It's hard to see what the government can do to stop the UK's decline into recession, with the ensuing property slump, unemployment and repossessions."

Posted by voiceofreason @ 08:06 AM 3 Comments

Councils urged to help homeowners????

BBC News: Councils urged to help homeowners

This is rich!! I was around during the last crash in the late 80's, this was never discussed, I was on my own and hung out to dry!! In the unlikely even the councils do step in to assist in this carnage, how can it be justified??

Posted by loneranger @ 01:02 AM 10 Comments

Saturday, June 14, 2008

Councils should offer financial support to homeowners

Yahoo News: New Local Government Network

A new report published this week will argue that local councils should offer financial support to homeowners threatened by the credit crunch. The New Local Government Network (NLGN) argues that local authorities should adopt US style Mortgage Support Plans and offer below market rate, whole or partial mortgages to either stave off repossession and eviction, prop up the housing market to prevent remortgage difficulties, or support first time buyers to buy locally.

Posted by gersuk @ 10:29 PM 0 Comments

Another one bites the dust !!

Bristol Evening Post: BRISTOL HOUSE SELLERS WORRIED AFTER ESTATE AGENTS FOLD

A chain of 10 estate agent offices across Bristol and North Somerset has closed down after the owners became the latest victim of the downturn in the property market.

Posted by kp @ 07:23 PM 0 Comments

speculators are increasingly rinsing money from all our pockets

Spiegel Online International: How Speculators Are Causing the Cost of Living to Skyrocket

After investing in high-tech stocks and real estate loans for years, legions of speculators have now discovered commodities like oil and gas, wheat and rice. Their billions are pushing prices up to astronomical levels -- with serious consequences for ordinary people's quality of life and the global economy

Posted by towner @ 04:47 PM 0 Comments

With mortgage defaults up 17 percent this year, and likely to top 100,000 This could help up to 15,000 people out of difficulty

Reuters: Councils

LONDON (Reuters) - Local councils should offer financial help to homeowners threatened by the credit crunch, an independent think-tank said on Saturday. (Advertisement) The New Local Government Network (NLGN), which aims to transform public services, says local authorities should offer entire or part mortgages at below market rate to those struggling to meet mortgage repayments, facing repossession, or first-time buyers unable to get a foothold on the market.

Posted by malct @ 04:27 PM 0 Comments

Let the government provide subsidised mortgages

Yorkshire Post: Don't let regeneration become another victim of credit crunch

A little known fact is that local authorities have a history of providing mortgages and would routinely lend to hundreds of thousands of local residents right up until the early 1980s. Today, the New Local Government Network is calling on the Government to look afresh at the potential for councils to step in to directly help those residents facing greatest difficulty. Under the scheme, councils could act as mortgage providers under prudential borrowing rules, in which interest rates can be lower than commercial rates. Many Yorkshire cities have encouraged city centre living, and a collapse in this market could reverse the prosperity that has seen an economic and retail renaissance over the past decade.

Posted by little professor @ 04:17 PM 5 Comments

Saturday night comedy club

Assetz: Housing starts collapse, as we predicted

Developers mothballing sites is going to mean lower supply - it is has taken until today for the trade to admit it fully and the BBC have really picked up on it today finally. House prices will rise again through raw supply and demand imbalance with rents rising too extremely strongly in the short term and firmly for many years to come. It is clear it is existing landlords who will benefit from huge income rises.

Posted by little professor @ 04:13 PM 21 Comments

Psst! Wanna piece of the action

cbsnews.com: More Americans Turning To New Source Of Money: Person-To-Person Lending

Justin Brown didn't think he was being extravagant when he borrowed $4,700 to buy his motorcycle. But he already owed $5,000 on his credit card and the interest was crushing. He was paying 31 percent on his credit card. And now he's paying "Ten percent," Brown said. Nice idea. Would it work over here ?

Posted by angonamo @ 02:47 PM 10 Comments

"Warning"? Does the BBC mean "Plea"?

BBC 'News': 'Warning' over petrol panic buying

It is so typical of the BBC and current government. The highest taxed petrol of any EU country and the government sends "warnings" to the public through the state media channel not to try to take the initiative by stocking up. Perhaps if they were more polite, and sent out a "plea", people might just do what they want. Or maybe not. The governement's preferred Contrived Price Index (CPI) inflation measures will not be affected.

Posted by paul @ 12:28 PM 12 Comments

Never, ever trust a bank

Financial Advice: RBS Chief Warns That UK Slump Could Last For 15 Months

Wednesday 11th June 2008 Sir Fred Goodwin, the chief executive of Royal Bank of Scotland (RBS), has suggested that the UK economy may suffer for at least another 15 months before we see any sign of improvement. Sir Goodwins comments have not gone down particularly well in the City, just days after the Group secured a 12 billion rights issue to increase the financial strength of the bank. Another small piece - but still interesting.

Posted by angonamo @ 12:24 PM 5 Comments

Ding ding, round 2

Financial Advice: Are We Set For Credit Crunch Part 2?

Thursday 12th June 2008 Investors in both the UK and US were running scared yesterday as rumours rampaged through the markets that more security firms in the US will be writing down the value of their loan books when the reporting seasons starts next week. For those who have been watching the credit crunch closely, this was the reason that we saw the initial shock last year which led to the worldwide economic slowdown. Real small piece - but something to look forward to over the next couple weeks.

Posted by angonamo @ 12:19 PM 0 Comments

Morgan Stanley's negative-equity-o-meter

Saturday Times: More pain for borrowers

This article appeared in today's Times (although it is dated 12 June?), the killer sentence is "Morgan Stanley, the investment bank, believes that a further two million households are at risk of owing more than the value of their property if house prices fall 20 per cent by 2010" So that's a nice round 100,000 households in Nequity for every 1% fall in prices!

Posted by mark wadsworth @ 12:12 PM 1 Comments

Property Stand Still - 15 Years!

Hiday.net: HOUSE PRICE CORRECTION UK

For property to become affordable again to large sections of the population; in particular first time buyers, there has to be a substantial correction in price. However those that expect an immediate full blown 'property crash' may be in for a dissapointment. The likelyhood is that it is going to be a long drawn out affair with three main factors interacting with each other.

Posted by kitkat @ 11:23 AM 0 Comments

Is the government going to extend this kind of help to other ailing industries?

Guardian: Lenders and house builders revived by FSA

"The Financial Services Authority (FSA) has decided to clamp down on investors shorting a company's shares if it is in the middle of a cash call, since it believes this practice helped drive the likes of HBOS and Bradford & Bingley below their rights issue price." Wonder what's driving that then? The FSA never interfered in the market before when these companies were doing well and their shares prices were going up ...

Posted by paul @ 11:09 AM 6 Comments

Untikable just a year ago (except on this site)

Independent: Private Investor: House-builder limbo - how low can they go?

the 90% crash club: "Land of Leather (down 94.4 per cent); Paragon Group, of buy-to-let fame (off 93.2 per cent); Barratt Developments (92.8 per cent to the bad)"

Posted by confused76 @ 11:03 AM 0 Comments

Another eventful week

I wish to register a complaint.

guardian.co.uk: The economy has gone to meet its maker.It is no more

As far as the voters are concerned, the plumage don't enter into it. They seem utterly unmoved by the idea that Britain is, by all accounts, envied as a bastion of creativity when their homes are dropping in value and their real incomes are being squeezed. Rather like the angry customer in the pet shop, they have taken a closer look at the parrot and decided that the only reason it stood on the perch for so long was that the government nailed it there with both public and private debt.

Posted by handle_it @ 08:57 AM 5 Comments

Does anything that GB promise materialise?

BBC News: New homes target 'will be missed'

"We've not seen anything like this post-war," he said. "It's essentially a financial crisis, more like 1931 than anything else that we've seen. "House builders are not going to be starting new sites, they're going to be laying people off, they may even be mothballing sites. "It really is on a scale we've not seen before."

Posted by flintster1994 @ 08:53 AM 5 Comments

The fuel for the boom has run out

FinancialAdvice.co.uk: LIBOR Rate Hit Three Month High

It seems as though speculation that the next interest rate move in the UK will be higher is starting to feed through to the money markets. LIBOR, which is the rate at which banks lend money to each other, hit a three month high of 5.95% today as many dealers reluctantly agreed that UK interest rates are set to rise in the short term.

Posted by quiet guy @ 08:46 AM 0 Comments

house prices must drop 63%

daily mail: house prices must drop 63%

reality is starting to set in that the housing bubble will not end with a 20% correction. I have said all along the problem of disaffected youth starts with the inability to 'buy in' to normal society

Posted by taffee @ 08:44 AM 16 Comments

Fuel Strike Forces Closure At BMW

Oxford Times: Cowley production halting after fuel strike

"We haven't had any lay-outs like this for a long time, they cannot guarantee what work we will have next week." The Spanish lorry drivers were today warned to get back to work as the government took a hard line against their protest.

Posted by yoyo1 @ 08:29 AM 3 Comments

Tiers flow?

Daily Telegraph: Speculation mounts over Barclays fundraising

Barclays has "plenty of opportunities" and is "clear" about its strategy, finance director Chris Lucas told a Goldman Sachs conference yesterday, as speculation continued to mount that the bank will have to raise capital to shore up its balance sheet. Analysts reckon Barclays may need to raise as much as 7bn to improve its "very tight" core tier-one capital ratio of 5.1pc, below the bank's own targets of 5.25pc.

Posted by dave spart @ 03:53 AM 0 Comments

What's sauce for the goose is sauce for the gander.

Daily Telegraph: FSA's crack down on short selling is very strange indeed

The Financial Services Authorityhas, of course, had to make some sort of response to public disquiet on short selling but it knows full well that its hands are tied. Short selling is not illegal or even morally indefensible. Most of the time it is just the view of one person over another. The US attempts to restrict short selling, to a certain degree, by insisting on quite high margin requirements, but the problem with creating this type of legislation is that you end up with much of your business disappearing to other financial centres. The rather refined variation put forward by the FSA of trying to restrict short selling solely in the event of a 'rights issue' taking place seems very strange indeed.

Posted by dave spart @ 03:25 AM 0 Comments

Prevention is better than cure.

Daily Telegraph: Bank of England may not be able to 'mop up' on house prices

The "nasty" inflation shock of recent months means the Bank of England may not be able to "mop up" if house prices slump sharply, one of the Bank's leading authorities has warned. Paul Tucker, the Bank's executive director for markets, questioned the Alan Greenspan doctrine that central banks should not attempt to stop bubbles but merely to clean up the mess after they burst, in comments which may undermine hopes that the Monetary Policy Committee will slash borrowing costs if house prices slump further.

Posted by dave spart @ 03:20 AM 0 Comments

The worst is still to come.

Daily Telegraph: HSBC warns of worse to come for UK economy

The worst is "still to come" for the UK economy as household spending winds down due to credit shortages and more jobs are shed as a result of record oil prices, a top economist warned today. Karen Ward, UK economist at HSBC, said in an analyst note that spiralling oil prices will lead to a series of knock-on effects for the UK at a time when it is already being rattled by the credit crisis. Sterling oil prices are up 10pc in the past month alone and for the household sector, rapid commodity price inflation directly affects roughly 26pc of UK consumption.

Posted by dave spart @ 03:10 AM 0 Comments

Interest Rates to rise?

Yahoo News: Greenspan sees Fed getting tough on inflation

"Growing price pressures have led the U.S. central bank to recently shift to more aggressive anti-inflation rhetoric, and expectations are rising that policymakers will raise benchmark U.S. interest rates within months."

Posted by dave spart @ 03:00 AM 0 Comments

Friday, June 13, 2008

Rent now buy later

Dezrez: Is this even legal!!

The NO LOSE scheme for FIRST TIME BUYERS exclusive to Sandown Court, Bawtree Road, Uxbridge. Rent flat for 12 months & buy, with a FUL refund of your rental monies to be off-set against the purchase price*

Posted by pdp @ 11:17 PM 0 Comments

Estate Agent Hill

Telegraph: Britains estate agents feeling the pain as phones stay silent

On a stretch of Lavender Hill - a stone's throw from Britain's busiest railway station Clapham Junction - there are a handful of takeaways, a pub, and just the twenty-six estate agencies.

Posted by hogwash @ 11:05 PM 0 Comments

Oz view on UK Banking Sector

The Age - Melbourne: No hair of the dog for UK banks

Reporting from London, The Age manages to dig up a few pessimist- and optimist-commentators on UK Banks. Comparison to (Banking) situation in Oz would be interesting.

Posted by mken @ 10:47 PM 0 Comments

backed by the European Parliament

alanindyfed: letter-from-cornishman

The results from the 2001 UK population census show over 37,000 people hold a Cornish identity instead of English or British. On this census, to claim to be Cornish, you had to deny being British, by crossing out the British option and then write Cornish in the others box. Additionally the decision to collect information on Cornish identity was extremely badly publicised. How many more would have described themselves as Cornish if they did not have to deny being British or if there had been a Cornish tick box? How many people knew that it was an option? How many ticked British but feel themselves to be Cornish British? The Cornish Assembly petition was signed by 50,000 people

Posted by malct @ 09:22 PM 0 Comments

I didn't exactly see my pay go up by this

Telegraph: The Real Cost of Living Index: 9.5 per cent The Real Cost of Living Index: 9.5 per cent

Rising food and fuel prices, as well as increased taxes and other household bills, mean the average family must cope with inflation that is twice as high as official estimates, according to new research by The Daily Telegraph and moneysupermarket.com, the price comparison website. Taking all these factors into account, the Real Cost of Living Index (RCLI) is rising at 9.5 per cent.

Posted by last_days_of_disco @ 09:09 PM 8 Comments

People were attracted by the apparent upward one-way bet on property

Times: Buyers find homes turning from cash cows into millstones

"For many homeowners, houses have become more than just a place to live they are seen as an investment vehicle, a pension or even a savings bank" I can't help laughing hard...

Posted by confused76 @ 08:17 PM 8 Comments

Pretty animated slide show of house destruction

guardian: Credit crunch: the collapse of the UK building industry

Pretty animated slide show of house destruction revealing ...

Posted by mken @ 05:09 PM 2 Comments

Property club investors who face losing millions in the property slump could be due compensation, according to Powell Callen Solicitors

ifaonline: Property club investors due compensation

Andrew Callen, partner at Powell Callen, claims that although property clubs are not party to a contract of purchase, they do still hold some responsibility under the law of agency. Property Clubs have become popular over the last decade as house prices have increased rapidly in many parts of the world, but Callen says many have over-promised and under-delivered, with investors losing out on millions.

Posted by jack c @ 04:03 PM 10 Comments

How much will any savings be worth next year?

Telegraph: Emerging markets face inflation meltdown

"The inflation genie is out of the bottle: easy money is the culprit," said Joachim Fels, chief economist at Morgan Stanley. "Weighted global interest rates are 4.3pc, while global inflation is above 5pc. The real policy rate in the world is negative," he said

Posted by cornishman @ 02:35 PM 11 Comments

Keep clicking and praying!

Irish Referendum - official website: Referendum results

Just for fun, totally o/t, I know, I know.

Posted by mark wadsworth @ 01:55 PM 9 Comments

AIB votes Yes to mortgage rate hikes.

FinFacts Ireland: AIB Bank hikes mortgage rates

Now that the Irish referendum on the Lisbon treaty is over, the housing crisis resumes. Allied Irish Bank, have increased first-time mortgage rates by 0.40%, and imposed smaller increases on other mortgages. However, they will still lend up to 92% loan-to-value, and claim no restrictions on mortgage availability. (Now, about the restrictions on customers' ability to pay those mortgages..?) (This is relevant to HPC, since the Irish situation is a funhouse mirror reflection of the UK situation. The housing market in Dublin is insane, with average 3-bedroom houses typically priced in the millions.)

Posted by brian t @ 01:49 PM 0 Comments

Governments On Alert

hurriyet.com: Fuel protests spread globally as oil continues its surge

Protests over soaring fuel prices erupted in Asia on Tuesday as truckers in Hong Kong and tire-burning demonstrators in India and Nepal added their angry voices to protests that began last month in Europe. As oil hit a record $139 a barrel, large and small businesses that depend on gasoline and diesel said they can no longer cope with pump prices that have doubled or tripled, with the steepest increases coming in recent months. Only a trickle of fish passed through

Posted by malct @ 01:31 PM 0 Comments

FT/Acadametrics needs to review its methodology

FT: FT index shows third monthly fall in house prices

The FT house price index is showing a modest fall. In trying to explain why it doesn't track the behaviour of other indices, Peter Williams of Acadametrics tries the argument that his index is more "representative". He fails to mention the fact that for the current and recent months, the index in fact relies mainly on a model using other indices, rather than real data; nor that it supposedly represents completions rather than current offers. Even so, it is quite noticeable that changes in behaviour of buyers and sellers are invalidating previous model correlations: vendors now set asking prices way high, expecting to discount, and sellers gazunder even after they have a mortgage offer.

Posted by mark @ 01:26 PM 0 Comments

No! No! No! No!

Timesonline: Ireland votes No to Lisbon Treaty

Ireland has voted No to the Lisbon Treaty, plunging the European Union into a new crisis. With results coming in from across the country, a final result of 52 per cent against and 48 per cent in favour of the treaty was rapidly hardening. A final declaration is not expected until after 4 pm

Posted by flintster1994 @ 01:04 PM 69 Comments

Biggest monthly drop in this index since 1995

FT: Acadametrics: FT House Price Index

Language in this is anything but objective...

Posted by jr @ 11:58 AM 0 Comments

Mervyn has his pen and paper at the ready

Citywire: King could be forced to pen historic first inflation letter within days

New Star Asset Management's chief economist, Simon Ward, has predicted that the Consumer Price Index (CPI) for May could breach 3% when figures are released next week, forcing the governor of the Bank of England, Mervyn King, to write a letter to the Chancellor. Commenting before the latest consumer price index (CPI) report is published on Tuesday, Ward said although CPI of 3.1% was not a done deal, he would be 'surprised' if upward pressure from food, fuel and import cost rises did not take the figure to such a level. He said: 'Governor Mervyn King will already know whether the annual increase reached the 3.1% letter-writing level. Recent news suggests it did, which may explain the lack of any discussion of monetary policy in Mr King's speech to the British Bankers Association this week.'

Posted by jack c @ 11:58 AM 5 Comments

A good summary of housebuilders' woes

Daily Telegraph: Tough times for housebuilders but they won't last forever

"Merrill Lynch analysts' list of the top 10 housebuilders by market share from 20 years ago shows only three survivors." If it is "different this time" maybe none will survive!

Posted by wdbeast @ 11:57 AM 12 Comments

GB properties loss in value is over 1 billion per day during last 9 months

mortgageintroducer: GB properties total 5.8 trillion

New figures reveal that the total combined value of all residential properties in Great Britain currently stands at over 5.8 trillion (5,835,563,534,903). This figure is down, however, by almost 300 billion (288,419,620,195) since the housing market peak in September last year, when the combined value of all homes topped 6.1 trillion, equating to a value loss of over 1 billion per day over the last 9 months.

Posted by jack c @ 11:28 AM 11 Comments

Further anecdotal evidence and other evidence ..

The Times: Carphone Warehouse falls victim to housing slump

Just a bit of added colour. A friend in Wimbolden also has a market litmus test; He walks past Foxtons on a Saturday morning and counts little minis parked outside. These days most of the local fleet is sitting there with EAs inside not so busily tapping away at keyboards ... For years, he would have been surprised to see a single mini there on the busiest morning of the week. Local EAs have also reduced fees to 0.5%

Posted by jonathan @ 10:58 AM 0 Comments

FSA to crack downn on short-selling

BBC: FSA cracks down on short selling

FSA says enough to banks and builders and candlestick makers being shorted by Hedge Funds.

Posted by brite2006 @ 10:49 AM 0 Comments

Average FTB deposit now 13%

Times: First-time buyer loans fall 36% as deposits jump

"Mortgage lending slowed by 5 per cent in April to 26.1bn, with 'further weakening' expected in the coming months. A number of UK banks have tightened up lending criteria in recent months following the US sub-prime mortgage crisis and the near collapse of Northern Rock. Halifax is planning to introduce tracker mortgages requiring a 40 per cent deposit from borrowers." ---- Further weakening?? More like "full-blown crash expected in the coming months"! Good selection of comments from Times readers too.

Posted by drewster @ 10:46 AM 2 Comments

10% interest rates here we come......

BBC News: Fixed-rate mortgages rise again [avg = 6.75%]

''...The cost of borrowing to buy a house has been driven higher by a flurry of rate rises from some mortgage lenders. At least 14 lenders have increased the cost of various fixed-rate deals during the past two days...''

Posted by hpwatcher @ 09:51 AM 1 Comments

Deposits up, multiples down ...

Council of Mortgage Lenders: Resurgence of fixed rate loans

"The average first-time buyer put down a deposit of 13% in April, which is the highest level in over 3 years. First-time buyers typically took out loans for 3.3 times their income, down from 3.35 in March. The average home mover loan was 2.96 times their income, down from 3 in March." Plus lots of other useful statistics.

Posted by mark wadsworth @ 09:47 AM 2 Comments

Blast from the ... last October

Metro: 'House prices to cost 13 times salary'

Has Prof S Nickell resigned in shame over this blatant misinformation yet? Nope, thought not...

Posted by mark wadsworth @ 09:42 AM 24 Comments

Germany's Handelsblatt newspaper says bankers have detected a curious pattern where customers are withdrawing cash directly from branches, screening the notes to determine the origin of issue. They ask for paper from the southern states to be exchanged fo

telegraph: Chinese Whispers Maybe!! Support for euro in doubt as Germans reject Latin bloc notes

Ordinary Germans have begun to reject euro bank notes with serial numbers from Italy, Spain, Greece and Portugal, raising concerns that public support for monetary union may be waning in the eurozone's anchor country. Each country prints its own notes according to its economic weight, under strict guidelines from the European Central Bank in Frankfurt. The German notes have an "X"' at the start of the serial numbers, showing that they come from the Bundesdruckerei in Berlin.

Posted by big chris @ 02:26 AM 10 Comments

Thursday, June 12, 2008

London house prices fell by five grand last month

Firstrung: UK house prices fall 1,000 per month, London house prices fall 5,000 per month- Home.co.uk

The value of the average home is plummeting by 1,000 a month, according to the latest Asking Price Index Report from Home.co.uk for June 2008.... Since March 2008 asking prices have fallen by 1.1% across England and Wales, with cuts in all regions. Scotland also saw a fall of 0.5% since March 2008 and north of the border prices have now fallen for the last four months in a row. The worst hit region for sellers was the East Midlands, with prices dropping by 2.2% during Q2. London sellers also suffered with prices dropping by 1.7% in the capital during the same period.

Posted by converted lurker @ 11:39 PM 4 Comments

BTL turning into investment parody

Times: Buy-to-let investors can maximise rental returns

"Now that capital growth is a mere historical curiosity, buy-to-let landlords are turning their attention to income generation" ... say no more :-)

Posted by confused76 @ 11:10 PM 5 Comments

No respect for EAs!

Times: Why estate agents might just deserve our respect

"The forecast suggesting that at least 15,000 estate agents could lose their jobs over the next 18 months produced rejoicing. In certain quarters, unemployment in the estate agency sector is viewed as one very positive aspect of the housing market downturn: the silver lining, if you like"

Posted by confused76 @ 11:02 PM 6 Comments

The pressure is mounting up now!

FT: Inflation expectations rise sharply

"Public expectations of inflation have risen dramatically in the last few months, increasing the likelihood that the Bank of England will countenance a prolonged period of sluggish growth to bring inflation back to target, a survey showed on Thursday." - I think most pople still expect IR toe stable this year; it's gonna be mayhem and a complete freefall in the housing market when boe are forced to raise IR this autumn.

Posted by scandinavian pessimist @ 10:09 PM 0 Comments

New Star chief economist Simon Ward "MPC made poor decisions in 2005 and 2006"

Moneymarketing: Fall in company liquidity to stop MPC hiking rates, says New Star

New Star chief economist Simon Ward says a deterioration in company liquidity is likely to prevent the MPC from hiking rates this summer. He says markets are now discounting two quarter-point rate rises in the UK over the next year but monetary trends show policy is already restrictive. The foundations of the current inflationary upsurge were laid in 2005-2007, when the broad money supply M4 was allowed to grow at a 12-13 per cent annualised rate.

Posted by jack c @ 08:40 PM 3 Comments

The next civil liberties fight

Prisonplanet.com: Secret Plan To Kill Internet By 2012 Leaked?

Civil liberties are pretty much gone now. We can fight to get them back. Currently, we have the Internet. However, this document, cites government and corporate documents that propose getting rid of the free internet system, replacing it with one where we all have myspace type pages, but pay per view access to everything else, nothing free, thereby limiting it to corporate websites. In a nutshell, it appears that the corporate system that is busy taking our liberties, is presently and has previously been planning to do away with free speach on the internet that we currently take advantage of via wonderful sites like housepricecrash.co.uk - Now, there is something you can do. e-mail your service provider with a link to this and ask them questions. E-mail your MP, contact your friends.

Posted by planning4acrash @ 07:42 PM 42 Comments

Acadametrics shows 0.6% fall

FT Acadametrics: Acadametrics data for tommorow?

Tomorrows news today. FT acadametrics shows a 0.6% fall on the month

Posted by becquerel @ 05:08 PM 0 Comments

HPC gets a mention here, all positive stuff!

New Statesman: Crashing the housing market

Speculation about a potential house-price collapse has been going on at Housepricecrash.co.uk since late 2003. Putting aside the fact that its protagonists might have missed a good five years of solid growth, this means they've also had a good spell of time to put together a detailed selection of data sets on house-price trends. But if graphs ain't your thing, watch their Flash movie Vocation, Vocation, Vocation, featuring a mock-up of Kirstie Allsopp eating her hat, a reference to a comment she made in 2004 about what she'd do if house prices were to dip permanently. For her part, the Channel 4 presenter (and lately Tory adviser) has accused the site of the equivalent of insider trading.

Posted by housebear @ 03:30 PM 21 Comments

Affordable shoeboxes that are actually, well ... affordable

Telegraph: Budget property: What's new for under 100k

When apartments at the Beehive, a new 65 million apartment scheme in central Bradford, went on sale this week, they became the cheapest newbuild properties in Yorkshire since 2001. Prices of the 517 flats start at 55,000, which - according to Knight Frank's Yorkshire statistics - has not been seen on a new full-ownership apartment in the region for seven years, since the fad for city living in regenerating northern cities began.

Posted by uncle chris @ 03:15 PM 8 Comments

How low can house prices go?

Property Hawk: How low can they go?

This is a thought provoking piece aimed at landlords but just as relevant for home owners. It explores how far house prices are likely to drop before getting to fair value. The article seems to think that we are in for a 25% fall, but if unemployment rises this could be much more.

Posted by chris @ 02:03 PM 0 Comments

Davis Resigns over 42 day Terror Law

BBC: David Davis resigns from Commons

David Davis proclaims "noble endeavour" in stopping the erosion of British civil liberties. He told reporters outside the commons thatl, "I will argue in this by-election against the slow strangulation of fundamental British freedoms by this government." In his resignation statement, Mr Davis attacked the growth of the "database state" and government "snooping". With the accusations regarding Brown's sweeteners to push through his 42-day terror law, it will be interesting to listen for more of Davis's comments.

Posted by denzil @ 01:51 PM 33 Comments

How about this guy for a contra-indicator

Fortune.com: lampert-bets-on-housing-rebound

Hedge fund manager Ed Lampert is betting on a rebound in some hard-hit sectors, including housing.

Posted by crutchley @ 01:27 PM 7 Comments

Going, going, gone - it's all over bar the shouting

Times Online: Barratt shareholders press the panic button amid huge debt burden

A further 400 million was wiped from the value of Britain's big seven housebuilders, taking to nearly 1 billion the value collapse since Friday. Merrill said that all of the big seven quoted housebuilders were heading towards a repeat of the early 1990s, when the last house-price crash forced them to write down their land by hundreds of millions of pounds.

Posted by fahrenheit451 @ 01:24 PM 2 Comments

A full blown recession is approaching

Times Online: Fears of widespread job losses grow as unemployed figures rise sharply

I do not like scaremongering, but what we have witnessed over the 42-day vote is going to be nothing compared to the economic recession that will start as soon as the summer holidays are over. Even if New Labour chucks out GBH before the summer recess (to allow a new leader to be elected), its going to be too late to get the economy back on the road.

Posted by fahrenheit451 @ 01:14 PM 3 Comments

Strong smelling maybe ..........

Mortgage Introducer: Buy-to-Let still strong

"From recent headlines you could be forgiven for thinking that all landlords are selling up and getting out of the market but according to recent research nothing could be further from the truth, with average UK rents having increased by 13.8 per cent in the year to April 2008." As believable as inflation figures.

Posted by renting2 @ 01:12 PM 2 Comments

FSA fines Woolworths 350,000

FT.com: FSA fines Woolworths 350,000

Out of interest has the FSA fined any bank at this point in time? Where are a list of these reported.

Posted by whiteknight @ 12:57 PM 2 Comments

Why UK property could be Chinas next dud investment

MoneyWeek: Why British property could be Chinas next dud investment

HBOS is pressing on with its rights issue despite the turmoil in the markets. With much of the company likely to end up in the hands of underwriters, could a Chinese sovereign wealth fund be tempted?

Posted by damien @ 12:46 PM 2 Comments

Gross lending increases but loans for house purchases down close on 40%

Firstrung: First time buyers put down 13% deposit in April as home loans plummet 40%- CML

Fixed-rate loans became more popular in April suggesting that borrowers are looking for security over future mortgage payments, according to the Council of Mortgage Lenders. The proportion of borrowers taking out fixed-rate products increased to 59% in April, from 54% in March. This is the largest proportion since December last year...

Posted by converted lurker @ 12:35 PM 0 Comments

No more gifted deposits and free appliances to skew the real prices

Firstrung: Mortgages for new build properties to get scarcer as CML tightens rules

The CML is introducing new standards for industry professionals who act for lenders on newly-built property transactions. The new procedures, which come into effect on 1 September, will ensure that the conveyancing and valuation processes capture the true value of the property, reducing risk for both borrowers and lenders...

Posted by converted lurker @ 12:33 PM 0 Comments

Life in a parallel universe...

Telegraph: From The Apprentice to director in a year

Market 'commentary' on Manchester! I don't know Manchester well but find this to be incredulous... No mention of "Advertisement" or "Promotion" !

Posted by chief @ 11:46 AM 0 Comments

Abbey charging upfront on BTL

Finance Markets: Abbey deters high LTV customers with arrangement fees

Abbey are no longer allowing BTL investors to pay for arrangement fees as part of their loan - they must stump up the cash upfront first. Talking about kicking the BTL market when it's down...

Posted by brite2006 @ 11:24 AM 0 Comments

They're unlocking the cupboard with the aqualungs in it at HBOS.

Daily Telegraph: HBOS golden boy Andy Hornby under pressure over rights issue

This is eyewatering stuff. Not a dry seat in the house at MS, D.K. or HBOS I imagine. "Under the terms of the underwriting agreement, that will leave Morgan Stanley and Dresdner Kleinwort to pick up the 4bn issue" "In contrast with Bradford & Bingley, there seems little chance the underwriters can escape this time."

Posted by fubar @ 10:49 AM 0 Comments

UK house prices plummet 1000 a month

home.co.uk: Property Market In Disarray As Average UK Home Loses 1,000 Every Month

The value of the average home is plummeting by 1,000 a month, according to the latest Asking Price Index Report from Home.co.uk for June 2008.

Posted by doomwatch @ 09:56 AM 5 Comments

A dead duck...

Telegraph: Brown to defend himself against 42-day deal accusations

''...Gordon Brown will today defend himself over allegations that he offered lucrative deals to Ulster MPs in order to pass his controversial plans to detain terror suspects for up to 42 days. ...''

Posted by hpwatcher @ 09:54 AM 27 Comments

Bad news for VIs wrapped up in positive spin

BBC News: Small rebound in mortgage lending

Some 51,000 home loans for house purchase were granted in April, a rise of 5,000 from the previous month and the highest since December. But the number was still 36% down compared to the same month in April 2007 owing to the credit crunch. (Nothing to do with houses costing too much of course)

Posted by crutchley @ 09:54 AM 1 Comments

Humberts Estate Agents sell most offices to Mercantile Group

Times Online: Humberts sells 34 offices for 3.16m

"Another 14 branches of the troubled estate agent, Humberts, have yet to be sold by administrators." This follows a decline in company value from 32 million to 2 million. The new owner is the Mercantile Group, owner of Chesterton's. Earlier this week, Humberts dumped BTFL, its commercial estate agency, for 1 and a waiver of debt.

Posted by brian t @ 09:49 AM 3 Comments

Building plots going for 17k each!

Barratts: Interim Results for the half year ended 31 December 2007

According to 2007 y/end results, Barratts had net debts of 1,738.5 million and 113,500 building plots. The company's market cap is 220 million. Ergo, enter, you could snap up 113,500 plots of land for 17k each, add on 80k new build costs for some nice 3-bed houses, makes 100,000 each. Who's up for it?

Posted by mark wadsworth @ 09:48 AM 22 Comments

Pathetically late action from an incompetent VI

Independent: Jeremy Warner's Outlook: Stable doors and mortgage fraud

Horses and stable doors come to mind in considering new proposals from the Council of Mortgage Lenders on cracking down on mortgage fraud. From September, lenders will begin requiring property developers to start disclosing any incentives or discounts they have offered buyers of new-build properties.

Posted by quiet guy @ 09:00 AM 3 Comments

"Big Scary Numbers"

BBC News: How far will house prices fall?

If we extrapolate from the Halifax's 6.8% drop so far this year, then 2008 will end with house prices down by 15.8%. If we think the rest of the year will be just like the past three months, then prices will be even lower - down by 21.3% by the end of December. However, the Department of Communities and Local Government (DCLG) says prices are still 5% higher than a year ago

Posted by little professor @ 06:20 AM 6 Comments

Express acknowledges the crash....

Daily Express: 300BN WIPED OFF VALUE OF HOMES

''...Britons have collectively seen nearly 300 billion wiped off the value of their homes since house prices first began to fall, research has showed....''

Posted by hpwatcher @ 05:30 AM 5 Comments

How high will mortgage rates go?

Fair Investment Company: Cost of fixed rate mortgage highest for 8 years

Fixed rate mortgages are at their most expensive for eight years, with rates rising even for those who have a significant deposit, according to data from the Bank of England ... Market analysts believe that the Bank of England will be forced to raise interest rates several times in the next year in order to curb inflation, and this speculation is pushing up swap rates the costs of funding fixed rate lending.

Posted by quiet guy @ 04:15 AM 0 Comments

Wednesday, June 11, 2008

interest rates will be up not down.

the independent: Hamish McRae: The days of low interest rates are over

Most of us have been working on the assumption that if the economy headed sharply down, that would lead to a cut in inflation and would give the Bank of England the opportunity to reduce rates. After all, part of the Bank's traditional remit is to maintain stability in the economy as well as its specific task of keeping inflation close to 2 per cent

Posted by waitingtobuy @ 09:37 PM 0 Comments

In SA, its all about eye watering inflation

Fin24: SA house prices nose-dive

Like Australian articles, the South African press has still not been infected completely with "Newspeak". They still call a stinking dead woodchuck under the porch a stinking dead woodchuck. "Johannesburg - Nominal house price growth of between 5% and 6% is projected for 2008, resulting in a price decline of around 4.5% this year, according to the country's biggest mortgage lender Absa. This is taking headline consumer price inflation projections into account, it says."

Posted by last_days_of_disco @ 09:17 PM 8 Comments

Long term investments don't work out

Financial advice: Brits heading for mortgage woes in retirement

Vested interest, but equity withdrawal has left a few without the ability to pay back, and only one asset.

Posted by stillthinking @ 09:12 PM 1 Comments

Big competition, NOT.

HousePriceFacts?!?!: "This site exists to provide information and discussion related to the housing market."

I found this by mistake, and got really freaked out that somebody had hijacked the site and taken away our ability to debate news articles! But, these guys are pawning our site somewhat, they seem to have purchased housepricecrash.com which redirects to their site. The shock I had when I thought that we would no longer have that liberty, reminded me of the freedoms we have today, and that those freedoms are fragile. The title is insidious "housepriceFACTS" - If there's one truism, it is that the definition of whether something is or is not a fact very much depends on perspective!

Posted by planning4acrash @ 09:11 PM 13 Comments

3000 fewer mortgage products in May

FT Advisor: Broker mortgage products dropped by 3,000 in May

The number of mortgage products available to UK intermediaries reduced by almost 3,000 products in May, according to Trigold. Over 10,000 mortgage products disappeared between March and May.

Posted by brite2006 @ 07:45 PM 0 Comments

Government figures - humbug!!!

Findaproperty.com: House Prices Rose in April

"Monthly inflation of 0.7 per cent, down from one per cent in the same month last year, took the average property price to 218,875," ....look to the Express, tomorrow, for full coverage of the growing confidence in the housing market. Politics - lies, damn lies and statistics.

Posted by bystander @ 07:26 PM 5 Comments

"Beenys amateur developers could paint the wet room with fairy dust; theyre not going to get their money back"

Citywire: Citywire explodes the myth - "Drop the DIY; it wont pay off"

According to research by leading mortgage lender Halifax, were a nation on the verge of a summer DIY splurge. And yet any casual observer of Channel 4s Property Ladder knows that its not dcor that adds value to a home, its the market. When the markets riding high, no amount of cack-handed incompetence regardless of how much Sarah Beeny and the viewers pray for economic retribution results in anything other than a profit. In a static or falling market, Beenys amateur developers could paint the wet room with fairy dust; theyre not going to get their money back.

Posted by jack c @ 07:10 PM 6 Comments

Zeitgeist

BBC News: Irish turkey says No to EU treaty

Dustin the Turkey failed to capture European hearts last month Ireland's EU treaty No campaigners have recruited the country's most famous turkey to help secure crucial votes in Thursday's referendum. Dustin the Turkey crashed out of this year's Eurovision Song Contest at the semi-final stage. Now he appears on posters with the slogan: "They didn't vote for us. Get them back. Vote No to Lisbon."

Posted by gardeniadotnet @ 06:49 PM 7 Comments

Write-offs could be as much as $2 trillion according to NIM estimates

Citywire: Geffen warns banks will need second round of rights issues

Neptune Investment Management founder Robin Geffen has warned that British banks will be forced into a second round of rights issues before the credit crunch is over. Speaking at yesterday's Citywire Cabinet event, Citywire AA-rated Robin Geffen told delegates that senior bankers should not be in their jobs once the full extent of their mistakes becomes apparent.

Posted by jack c @ 06:36 PM 2 Comments

HBOS shares have fallen below their rights-issue price, potentially throwing its capital raising into disarray.

Citywire: HBOS shares fall below rights issue price

HBOS shares have fallen below their rights-issue price, potentially throwing its capital raising into disarray. HBOS PLC (HBOS) shares fell 32.25p or more than 11% to 259.75p, well below the rights issue price of 275p by 16.28pm. The deal is being underwritten by Morgan Stanley and Kleinwort Dresdner and was recently extended by six weeks. HBOS issued a statement saying that its rights issue was proceeding according to plan The move follows a torrid afternoon of trading in which the financial sector fell generally.

Posted by jack c @ 06:31 PM 4 Comments

The Bank of England has struck a secret deal with top banks and building societies to rescue ailing competitors in return for part of the 50bn liquidity fund.

FT: Big banks strike 'rescue' deal with BoE

Jason Kabel, associate director and portfolio manager, money market and fixed income for F&C Investments, said the countrys biggest lenders were being granted access to the Banks special liquidity fund in return for the trickling down to smaller retail banks through transactions and not being horded bolster up balances. Mr Kabel said: The larger lenders all charged in first, however, it is a jittery market and they were reluctant to pass on money in transactions as, at the moment, you just have no idea who is going to have problems next. It has not solved the trust issue.

Posted by jack c @ 05:59 PM 0 Comments

1990s crash in the offing

guardian: Housebuilders come crashing down

Britain's bruised and battered housebuilders are suffering another torrid day on the stock market after Merrill Lynch warned that the housing market could face a repeat of the 1990s crash. Some 5bn has been wiped off the value off the big builders, including Persimmon, Barratt Developments and Taylor Wimpey since the beginning of this year. Many analysts believe the firms, which have lost 15bn in value since last summer, are close to breaching their banking agreements.

Posted by mken @ 04:54 PM 1 Comments

Ah ... so finally they've woken up

BBC: New rules for valuing properties

"The Council of Mortgage Lenders (CML) says new rules will help stop mortgages being granted that were worth more than the value of the home. Some developers could be tempted into offering incentives to buyers, such as cash-back offers, as the market slows." This'll go down a storm with the homebuilders!!

Posted by mark wadsworth @ 04:51 PM 5 Comments

Every little helps...

BBC: Abbey raises new mortgage costs

2,499 arrangement fee and five years fixed at 7.04%?

Posted by mark wadsworth @ 04:48 PM 2 Comments

How embarrassing for Broon - Fiscal Imprudence anybody?

BBC NEWS: EU to act over UK budget deficit

Maybe he will want to join the "Euro gang" to stop them bullying him!

Posted by wdbeast @ 04:43 PM 4 Comments

Is Barratt Homes the next Northern Rock?

Home Move: Barratt Developments in crisis as share price plummets

Shares in Barratt Developments, the company behind Barratt Homes, have plummeted further today, leaving the company's short-term future under threat. Are Barratts about to become the next Northern Rock in terms of name victims of the credit crunch?

Posted by brite2006 @ 04:13 PM 0 Comments

NLA latest on buoyancy of BTL

FT: Buy-to-let is a safe bet insists NLA

The UK buy-to-let (BTL) market remains strong despite the reduction in available mortgage products, the National Landlords Association (NLA) has said. NLA insists that average UK rents have increased by 13.8 per cent in the year to April, with the market holding up due the fact that first time buyers are struggling to get on the property ladder and have no choice but to rent. It says that with this increased demand comes an increase in rent and, for the professional landlord, opportunities to expand property portfolios.

Posted by jack c @ 03:54 PM 9 Comments

Uk House Prices to fall 50% in Real Terms

The Market Oracle: UK House Prices Real Inflation Adjusted Long-term Trend

Analysis suggests that UK house prices downtrend into 2011 could see a fall of between 50% and 60% in real terms. The effect of which will be to crush the consumer and therefore the expectation is for a weak UK economy well into 2011.

Posted by nadeem walayat @ 12:05 PM 0 Comments

The wheels have come off!

Bloomberg: May Unemployment Claims Rise to Seven-Month High

U.K. unemployment rose to the highest in seven months in May as weakening economic growth prompted companies to cut more staff. Claims for jobless benefits increased for a fourth month, rising by 9,000 to 819,300, the Office for National Statistics said today in London. Economists predicted an increase of 8,000, the median of 33 forecasts in a Bloomberg News survey show.

Posted by tyrellcorporation @ 11:52 AM 11 Comments

UK House prices headed for steep downturn

Telegraph: UK housing market: 'beyond tipping point'

The UK housing market has "gone beyond tipping point", according to Merrill Lynch, raising the prospect that prices may be headed for a steep downturn similar to that Britain saw in the early 1990s.

Posted by doomwatch @ 11:46 AM 7 Comments

Why gold could hit $8,500 an ounce

MoneyWeek: Why gold could hit $8,500 an ounce

Inflation is rampant and bonds and gilts are worthless. And while there may be a bubble, it's not in commodities. Dominic Frisby looks back to the 1970s, and discovers how high gold could go.

Posted by damien @ 10:58 AM 32 Comments

House building shares are the most shorted

Short Stories: Housebuilders

23% of Bovis shares are out on loan to be sold short. Persimmon (PSN) is the second most borrowed stock after Bovis, with 19% MCOL, then Redrow (RDW) at 17%, then Barratt (BDEV) at 14%, then Taylor Wimpey (TW) at 11%, and Bellway at 10%.

Posted by ontheotherhand @ 10:45 AM 1 Comments

Where is the bottom

Mish Global Economic Analysis: UK House Market seizes up

Mish seems to think that UK house prices will retrace to 2002 levels.

Posted by stillthinking @ 10:20 AM 11 Comments

Jeff Randells latest on nulabour

Telegraph: Did the Gods really fail or was it all our fault?

Let's agree on one thing: all those so-called experts who dismissed the bear case for Britain's economy as "scaremongering" were wrong. Well-known pundits who stuck to the "nobody can tell if the property market will weaken" line of analysis have been confounded by the bleedin' obvious.

Posted by holding out @ 10:17 AM 5 Comments

Think I'm going on the social ...

Daily Mail: The luxury council flats that are rented out to tenants for just 75

THE luxury harbourside apartments have stunning sea views and are built to the highest specifications, with ensuites, walk-in wardrobes, balconies and state-of-the-art kitchens. Just along the coast is the millionaires' enclave of Sandbanks, where property prices are among the highest in the world. Yet for dozens of selected tenants at Harbour Reach in Poole, Dorset, the rent is a mere 75 a week - which will probably be paid from state benefits.

Posted by musn't grumble @ 10:16 AM 21 Comments

As bad as the 90's, sound fundamantals eh Gord?

Times: Housebuilders hit on warnings of 1990s-style slump

''...Shares in Britain's housebuilders sank further this morning as two investment banks gave warning that the housing market downturn was every bit as bad as that seen in the early 1990s. ...''

Posted by hpwatcher @ 10:11 AM 1 Comments

Probably beyond redemption...

Telegraph: Barratt 'needs 1bn to survive'

"In a savage note, Dresdner Kleinwort withdrew its target price on Barratt in a note titled: "Don't buy [at any price]." 1.7bn of debt, and a third of their land bank bought in the last year. If house prices fell no further, they could just about survive. Another 5% and they would have no means of paying down their debt. Another 10% and they will be unable to sell at cost. They're dead. Share price down another 20% this morning

Posted by uncle tom @ 10:09 AM 7 Comments

Meltdown

Dailymail: Don't panic-buy petrol! No 10 urges calm as truckers' strike looms and unleaded is predicted to soar to 230p a litre

Motorists were urged not to panic-buy last night as fuel tanker drivers prepared to launch a four-day strike from Friday - and unleaded petrol was predicted to soar to 230p a litre. Good to see inflation is well and truly under control.

Posted by sovietuk @ 09:49 AM 9 Comments

Britain on the edge of recession....

Telegraph: UK economy grinds to a virtual standstill

''...The UK economy ground to a virtual halt in the past three months and now faces the prospect of higher interest rates, a leading economic think tank has warned. Gross domestic product expanded 0.2pc in the three months to the end of May, according to the National Institute of Economic and Social Research (NIESR)....''

Posted by hpwatcher @ 09:43 AM 3 Comments

The European Commission is to start disciplinary proceedings against the UK for breaching its economic rules.

BBC: EU to act over UK budget deficit

The European Commission is to start disciplinary proceedings against the UK for breaching its economic rules. It says Britain's budget deficit, the gap between what it spends and what it borrows, is growing too large. The disciplinary proceedings are in effect a formal warning to curb borrowing, cut spending or both.

Posted by jack c @ 09:40 AM 8 Comments

No Food On The Shelves

MailOnline: Thousands of British tourists face holiday chaos as Spanish truckers' strike bites

Petrol stations across the country are running low and food has disappeared from supermarket shelves because of the indefinite strike called by Spanish truckers.

Posted by yoyo1 @ 09:21 AM 1 Comments

Clean and tidy your house for a quick sale...

Telegraph: 'House prices to fall until 2010': the options for buyers and sellers

Ed Stansfield, at Capital Economics, said: "We had forecast price falls of 8 per cent this year and 10 per cent next year, but the 8 per cent figure is looking very conservative. It is now plausible that prices will fall by 15 per cent in 2008. When it comes to forecasting the direction of prices in 2010 it is a case of reasoning why prices won't fall further rather than the other way around. House prices falls tend to run in years not months."

Posted by steve g @ 07:59 AM 0 Comments

strategists have lost faith in the ability of stock markets

britania radio: Most World Stock Markets to End 2008 in Red

LONDONGlobal stock markets will not be able to overcome a lethal mix of rising inflation and a spill-out from the global credit crisis this year, with most indexes likely to end 2008 with annual losses, a Reuters poll showed. As a group, strategists have lost faith in the ability of stock markets to achieve anything more than a partial rebound, even though the U.S. Federal Reserve has hacked rates down to 2.0 percent

Posted by malct @ 07:58 AM 0 Comments

It's all going south!

Telegraph.co.uk: Housebuilders may find their debt for equity begging bowls are left empty

Always follow the money and in the UK housing market, it's long gone. Housebuilders, however, are increasingly desperate for the folding stuff to support their businesses and they face a desperate dash for cash which is unlikely to be forthcoming in the amounts the sector needs. When the begging bowls are held out, some are going to be left empty.

Posted by housebear @ 02:28 AM 6 Comments

Not exactly news but worth a read.

Diary of a property bear: House Price Declines and the impact of leverage

Following the release of the Nationwide data showing house prices fell 2.5% in just one month, I thought I would do some simple calculations to show just what falling house prices means in terms of loss of 'wealth'. It gives me absolutely no pleasure at all to describe the true destruction of people's wealth that is taking place - but I do think people have a right to know the true scale of how they may be affected and then they can decide what they want to do with that information.

Posted by housebear @ 02:14 AM 0 Comments

Tuesday, June 10, 2008

BTL savage blow

Firstrung: Buy to let landlords dealt another savage blow as rents tumble by 7% in the last quarter

Another myth debunked "rents are down substantially as buy to let landlords are now concentrating on reducing rents to ensure that rents demanded match the market rate tenants are willing to pay"

Posted by confused76 @ 11:46 PM 3 Comments

The pain in Spain is money down the drain

Bloomberg: Spain Housing Market Slump to Lead to Recession, Acuna Says

"The slump in the Spanish residential property market will continue for seven years and push the economy into recession in 2009 as the market absorbs the excess housing stock built in the past decade, according to R. R. de Acuna & Asociados, a real estate research firm". ``For the market to return to normal, we estimate that there will be four years of severe corrections and another three years of consolidation,''

Posted by alan @ 10:14 PM 1 Comments

Shadow Chancellor says monetary policy broken

FT : George Osborne Comment: How to prepare Britain for the next City crisis

The Shadow Chancellor says that bank base rates no longer work and that I quote: "capital adequacy rules could be used to better manage the credit cycle". Another one who is "getting it". Namely that the booming asset prices were due to over-lax monetary policy fueled by novel debt markets creating excessive money supply "under the radar" of traditional IR based monetary policy. (phew!) Though I am sure banks will find ways around any new rules to create the next capital crisis....

Posted by voiceofreason @ 10:10 PM 9 Comments

Slightly more balanced article from the Fool

Fool: The ups and downs of renting

In the spring of 2005, I sold my family home, having moved into rented accommodation in late 2006. In other words, I leapt off the property ladder three years ago and have yet to return. My decision to exit the property market was driven by my worries about the UK's twin booms in house prices and personal debt. I feared that Britain was in the grip of an unsustainable housing boom which would, in time-honoured fashion, turn to bust.

Posted by crutchley @ 09:14 PM 5 Comments

Whaaaaat??

Motley Fool: The Time To Buy Property Is Now

"Based on my financial rule make decisions based on what you know only', it is always the right time to buy property, regardless of property predictions... " Please can someone explain the logic of this to me? I no understand!

Posted by renting2 @ 08:48 PM 20 Comments

Fuel Rationing

BBC NEWS: Drivers urged against fuel panic

Inflation is now being realised as drivers have rejected an improved offer of a 6.8% pay rise, which the companies claim would have increased drivers' average salaries, including overtime, from 36,500 to around 39,000 a year. "One forecourt in ten might not have sufficient fuel for the period of the strike," the association's Ray Holloway told the BBC.

Posted by yoyo1 @ 08:09 PM 14 Comments

That's more like it

Telegraph: Credit crunch leaves thousands facing negative equity

We've been bombarded with this nonsense about 23,000 being in Nequity. The chap from Citigroup reckons it's 250,000 already, and his magic fag packet says for every 1% fall in prices roughly another 70,000, which is not far off what I reckoned.

Posted by mark wadsworth @ 07:54 PM 0 Comments

3% jump in savings rate

Halifax: Halifax Regular Saver rate. It just got a lot bigger! (10%)

Just noticed this on the AOL home page. For the last couple of years the rate on this account has been 7% and the limit 250 a month.

Posted by duncan @ 07:49 PM 6 Comments

Mr King warned that families are facing the

CH4: Stagflation looms for UK economy

With inflation fears currently preventing the Bank of England from cutting interest rates, some analysts believe Britain is about to be hit by stagflation - when recession combines with inflation to strangle the economy. with video

Posted by malct @ 07:45 PM 1 Comments

Brown should buy up repo endangered houses and regulate banks/city

guardian: Brown the builder

Labour swallowed whole an economic theory dreamed up by rightwing free marketers in the UK and America. This theory insisted that regulation was an impediment to the efficient operation of the market, especially financial markets. Lending and credit restrictions, at the behest of the City, were relaxed by the Conservatives and become even laxer when Brown entered the Treasury. When house prices shot up and continued to grow at breakneck speed, the government did nothing to intervene. Now, as prices fall, it is not the job of government to prop house prices. There is, however, a public interest in preventing a wave of repossessions which will lead to local and national taxpayers shouldering the cost of housing the new homeless.

Posted by mken @ 06:15 PM 18 Comments

Forecasts moving towards -10%

Telegraph.co.uk: 'House prices to fall until 2010': the options for buyers and sellers

Homeowners are being warned to brace themselves for three years of falling house prices, writes Paul Farrow

Posted by ash4781 @ 05:23 PM 0 Comments

Lagging house price index slow to catch up with reality

Firstrung: UK house prices show slight rise as first time buyers pay less - DCLG

The latest UK house price index statistics produced by Communities and Local Government were released on Tuesday 10 June 2008. The UK average house price grew by 4.9 per cent in the year to April 2008, down from 5.2 per cent in the year to March 2008. Between March and April there was a rise of 0.7 per cent in the prices index of properties bought compared with a larger rise of 1.0 per cent over the same period last year, resulting in a decrease in the annual rate. The rise in UK prices between March and April 2008 can be attributed to increases in average prices for terraced houses (1.3 per cent), detached and semi-detached houses (0.8 per cent each) and bungalows (0.1 per cent). The rise is offset by a decrease in average prices for flats (0.3 per cent).

Posted by converted lurker @ 05:09 PM 11 Comments

The blame game ....

Dilbert dot com: Dilbert

One view ....

Posted by montesquieu @ 05:06 PM 0 Comments

Barratt's been spanked! Down 23.81 in a day!

Yahoo Finance: Barratt's Share Price

BDEV BARRATT DEVEL. 92.00p (-28.75p) -23.81%

Posted by sage @ 04:12 PM 1 Comments

changing their tune.....

Daily Express: MILLIONS FACING MORTGAGE MISERY

Quote:- ''... Falling house prices are pushing thousands into negative equity...'' but what happened to the price rises forecast by this absolute rag?

Posted by hpwatcher @ 02:36 PM 8 Comments

Gordon Brown's Miracle Economy

BBC Panorama: Testing the Miracle

25th Sept 2005 The old ones are always the best. BBC panorama online video as Stephanie Flanders tours the UK to look for answers to why inflation and interest rates are low despite an economic boom and looks at the challenges ahead. "when we look back, in a few years' time, at Brown's economy, will we still see an economic miracle? Or another old-fashioned spending binge that, sooner or later, had to run dry? " Stephanie Flanders

Posted by sarah h @ 02:15 PM 0 Comments

Who needs more than a 2% pay rise...

Metro: Police lose pay fight in landmark battle

olice officers were left 'extremely disappointed' today after losing their High Court battle over Home Secretary Jacqui Smith's refusal to carry out their 2.5% pay award in full. Police Federation lawyers accused the minister of approaching police pay "with a closed mind". They argued that she was complying with "Treasury diktat" when she shaved off three months worth of the recommended increase by refusing to backdate it, effectively reducing the award to 1.9%

Posted by afrobaggie @ 02:09 PM 7 Comments

Why this housing crash is already worse than the 90s

MoneyWeek: Why this housing crash is already worse than the 90sWhy this housing crash is already worse than the 90s

House sales the lowest ever recorded; bank rates still high; factory gate prices at their highest ever. But the crisis is no longer simply about bank solvency: there is wider panic afoot.

Posted by damien @ 01:37 PM 1 Comments

"buy-to-let specialist is facing a number of serious issues"

Citywire: Bradford & Bingley: arrears not the biggest problem

Despite their current woes, Bradford & Bingley's (B&B) problems with payment arrears pale by comparison with the number of borrowers behind on bills or whose property was repossessed in the early 1990s, according to one adviser. Phil Chapman, who used to work for B&B before helping set up adviser firm Hill Grafford said: I think the percentages [now] look very big coming off the back of a time when arrears have been a tiny problem. SEE IN PARTICULAR SECTION TITLED "What now for buy-to-let"

Posted by jack c @ 12:49 PM 3 Comments

CML -The figures should be reassuring rather than spooking people"

mortgagestrategy: CML disputes BBC negative equity claim

The Council of Mortgage Lenders has hit out at the BBC's claim today that more than 23,000 people in the UK are already in negative equity. The BBC asked the CML for figures on the amount of 100% mortgages taken out over 12 months to the end of March 2008. That figure is 23,200 which led the BBC to claim: More than 23,000 people who took out 100% mortgages across the UK are in negative equity, the BBC learns.

Posted by jack c @ 12:28 PM 15 Comments

Video HPC hero Merryn S Webb on the crash

BBC: Expert on falling House prices

Its not just our Financial Planner flying the flag. Merryn is a STR'er I believe and paints a beautuful picture in this short clip from the BBC

Posted by geed @ 12:22 PM 14 Comments

"Britain's first large-scale outbreak of negative equity since the great property crash of the early Nineties"

ThisIsMoney: Thousands face negative equity crisis

"The negative equity warning comes from the Council of Mortgage Lenders, which says 23,200 homeowners across Britain bought flats or houses with no deposits in the year to the end of March. Of these, about 3,000 would have been in London. Most of these properties are likely to have fallen in value since the purchases were completed."

Posted by confused76 @ 11:50 AM 5 Comments

We want a strong dollar! Honest Guys!

The Times: President Bush betrays fears over economy with strong dollar call

President Bush issued a call for a rise in the value of the US dollar on currency markets yesterday in a signal of mounting official alarm in Washington about the effect of the slumping greenback on the worlds largest economy.

Posted by flintster1994 @ 11:46 AM 7 Comments

Full details of today's RICS press release including EA comments

RICS: Full May survey

The comments on these things are always cracking

Posted by pelethar @ 10:31 AM 19 Comments

Cracks appearing in Euro

Telegraph: Europe's deep rift exposed over ECB's interest rate policy

Spain believes bank is being 'bounced' into monetary tightening by German hardliners. Germany and Spain have clashed in an escalating dispute over the European Central Bank, exposing the deep rift that has emerged between Europe's North and South

Posted by holding out @ 10:11 AM 11 Comments

The BBA is announcing a range of changes to the London Interbank Offered Rate, or Libor

BBC: Bank lending rate to see changes

The process that sets the interest rate at which banks lend money to each other is to be reinforced, according to the British Bankers' Association (BBA). The BBA is announcing a range of changes to the London Interbank Offered Rate, or Libor, at its annual conference on 10 June. More contributors will be used on the rate-setting panels. The rate is crucial because it reflects how banks perceive borrowing risks, the association explained. The move comes amid criticism of the way Libor is set. While central banks set official rates, Libor is seen to show the real rate of interest being used by the largest global firms to borrow from one another. It has been a key barometer of the credit crunch.

Posted by jack c @ 10:03 AM 1 Comments

Housing sentiment improves marginally in May

The Times: House sales at 30-year low as fears rise that the market decline could turn into a crash

There were signs of a slight pickup in house prices as the number of surveyors reporting that prices were falling declined slightly. A balance of 92.9 per cent reported price falls rather than rises, compared with 94.7 per cent in April. However, surveyors in East Anglia and the South East are unanimous that house prices are falling. This gloom was compounded by more bleak news about activity in the market, with new instructions falling for the fifth consecutive month and at the fastest pace since June last year. London and Scotland were the exceptions, with surveyors in both areas reporting a rise in new instructions.

Posted by aday @ 08:55 AM 8 Comments

It's ok!! Everything's fine - Back to work please

BBC News: Danger of US downturn 'has faded'

Playing down recent unemployment rises, he said a series of interest rate reductions combined with tax cuts was helping the US offset its difficulties.

Posted by crutchley @ 08:40 AM 12 Comments

Fiat Currency on Prozac

Financial Times: NY Fed chief in push for global bank framework

Gold and sound money is the dream of those who worry about the present fiat money system. So, for us Libertarians, this is extremely scary. Ben Bernanke has begun calls for a global fiat banking system, a day after his Bilderburg meeting in Chantilly, Virginia. Again, the meeting this time, for the first time, is mainstream news. They published a press release this year. They also released aList of delegates Note that British attendee's included Kenneth Clark, George Osborne, John Kerr-House of Lords and Deputy Chairman of Royal Dutch Shell plc." & Tom McKillop-Chairman, Royal Bank of Scotland.

Posted by planning4acrash @ 08:21 AM 51 Comments

Front Page of London's Metro

London Metro: Sales of houses slump to 30yr low

If you didn't know in London that there was a house price crash going on, you do now !

Posted by pig @ 07:44 AM 2 Comments

Another Northern Rock in the making

Times Online: FSA puts pressure on top five banks to support Bradford & Bingley rights issue

The Financial Services Authority took the unprecedented step of pressuring Britains five biggest banks into supporting the revised rescue capital-raising at Bradford & Bingley last week, The Times has learnt.

Posted by paul @ 07:06 AM 2 Comments

Trading frenzy points to interest rate rises

Telegraph Online: Inflation shock leaves markets fearing three interest rate increases this year

In scenes described by one observer as "carnage", traders embarked on a massive sell-off of UK government bonds, pricing in the likelihood that the Bank's Monetary Policy Committee will lift the official base rate to 5.75pc by the end of the year. The news comes amid growing fears that Britain is facing a new bout of stagflation. The Office for National Statistics reported that factory gate inflation has risen to the highest rate since records began 22 years ago, with the price factories are charging their customers up 8.9pc on last year. Manufacturers' own raw materials costs jumped a record 27.9pc, driven higher by record oil and food prices, the figures showed.

Posted by inthedelhi @ 02:52 AM 4 Comments

Houses may turn into capital traps

Guardian: UK economy: Recession fears grow as house buyers vanish

Britain's estate agents warn today that a collapse in activity in the housing market could spread to the rest of the UK economy amid signs that rising inflationary pressure will force the Bank of England to increase the cost of borrowing this year.

Posted by quiet guy @ 02:39 AM 16 Comments

Shouldn't that be 'Millions face negative equity'?

BBC News: Thousands facing negative equity

end of article: 'House prices are down 6% in just the last five months, and the worst of the credit crisis - all that still lies ahead," said Michael Saunders, head economist at Citigroup. He had predicted that house prices would fall by 15% in 2008 and 2009 but now he says that drop could be even greater.'

Posted by quiet guy @ 01:05 AM 6 Comments

Monday, June 9, 2008

Lehman to raise $6bn after first quarterly loss

FT.com: Lehman to raise $6bn after first quarterly loss

Lehman "shrugs off" the credit crunch. Advanced economies "shrug off" perfect storm. ... I love that shrug off phrase that was in the press for about 4 weeks a couple of weeks ago. I also love that this thing was called over for about 4 weeks a couple of weeks ago. Does it feel over to anyone?

Posted by whiteknight @ 10:31 PM 2 Comments

No Sub-Prime in the U.K. ????

BBC: Four Mortgage Brokers are Banned

Four more mortgage brokers have been banned. In one case a person "applying" for a mortgage knew nothing about the application !

Posted by duncan @ 08:53 PM 0 Comments

My Assetz(R) best comedy pick

AssetzNewz: Fall and rise in the rental sector

"the average rent for a house was down seven per cent in the last quarter and flats down nine per cent" even this has not been such bad news "In many places this has had a positive effect as it has allowed the rental market to provide stability in housing at a time of volatility in the sales market. It also demolishes the myth of soaring rent levels" "people eliminating the risk of a house purchase that goes wring in the near future, such caution could also leave first-time buyers looking to rent rather than buy for the time being" ??

Posted by confused76 @ 06:43 PM 6 Comments

Where is the British equivalent?!

google video: MTV's Aimee Allen, Ron Paul, Revolution Song.

"The system that we have today is ripping of the middle class & the poor. Can you imagine how great a nation we would have if we didn't have the Federal Reserve System printing all this money?!" - That is the cracking bridge line for this political song by MTV's Aimee Allen, straight from the lips of Ron Paul. - Swap Federal Reserve for the Bank of England, and this song is totally relevant to our situation, because our fiat money system is very similar to the Federal Reserve, and the inflated money supply caused the houseprice boom and crash. It shows that America has an informed, youth led political movement that is trying to solve some of the monetary failures of western society. Why is it, that Britain is not blessed with the same? But, regardless of the politics, its a cracking video!

Posted by planning4acrash @ 06:39 PM 27 Comments

Home Gauge Climbs Amid Bargains

Wall Street Journal: Home Gauge Climbs Amid Bargains

WASHINGTON -- A forecasting gauge of home sales climbed to its highest level in six months during April, given a lift by bargain hunters.

Posted by acday @ 06:36 PM 0 Comments

Central London still going strong it would seem.

Independent: Rental market booms as house prices slide

I just re-rented one of my flats in 2 days with a 9% increase in the rent compared with last October. Agents have also lowered their commissions to get business so net cash certainly up...

Posted by chief @ 04:35 PM 26 Comments

At least one thing is no longer in any doubt: this is the world economy's third oil price shock, following in the footsteps of the Opec crises of the 1970s and early 1980s

telegraph: Oil price shock fuels fear of UK stagflation It has once again sparked fears that the UK is poised for a nasty period of stagflation

The rise in oil prices to almost $140 a barrel on Friday put to an end any doubt that high crude costs would soon ebb away. It has once again sparked fears that the UK is poised for a nasty period of stagflation - high inflation and low growth.

Posted by big chris @ 04:30 PM 5 Comments

U.S. mortgage industry uses an arsenal of tactics to temporarily boost borrowers' credit scores

Forbes: Lipstick on a pig

EP is going to love this investigation of liar loans in the States

Posted by roger @ 04:16 PM 1 Comments

Nice rate - thought I'd post this as it's the best rate I've seen for a while. It poos on my NR rate so will most likely transfer.

Easier Finance: Abbey issues one year fixed rate bond paying 7.01%

Abbey Savings has launched a special one-year savings account for customers looking for a guaranteed return on an amount of money they can lock away for one year. This is a strictly limited offer and will be subject to availability. Term: 1 year Tier: 30,000 - 2 million Gross rate p.a./AER : 7.01% Net rate p.a. : 5.61% Abbey is backed by the financial strength and stability of Santander - a top ten global bank by tier one capital, profit and market capitalisation.

Posted by tyrellcorporation @ 03:43 PM 19 Comments

Lehman adds its name to list of banks asking for more cash

Telegraph: Lehman sinks to record loss as it seeks $6bn

Lehman Brothers, the fourth-largest US securities firm, has reported a record $2.8bn (1.4bn) second-quarter loss and said it will raise $6bn more in capital in a public offering.

Posted by henscu @ 02:54 PM 3 Comments

Gilt yields soar

BBC News: Market data - Gilts

Short dated gilts are usually very boring, shifting in price by only a few pence each day - suddenly we have a seismic shift, with prices tumbling and yields jumping around a quarter per cent in one day. Much more of this and the BOE will be forced to raise rates

Posted by uncle tom @ 02:50 PM 9 Comments

Take Note Chaps!!! GS have spoken

Yahoo-AP: Oil seen hitting $150 this summer: Goldman analyst

Oil prices are likely to hit $150 a barrel this summer season, the global head of commodities research at Goldman Sachs said on Monday, as tighter supplies outweigh weakening demand.

Posted by stevie dee @ 02:31 PM 5 Comments

Not surprising really...

ITN: Consumer confidence hits 'record low'

Consumer confidence is at a record low following rising costs and falling property values, according to new figures.

Posted by stevie dee @ 02:24 PM 0 Comments

Going down

The Guardian: Traders predict house prices will fall by 50% in four years

The slide in house prices will continue for at least three years and crush the value of a home by almost 50% in real terms, according to a key index of property price futures. Indications from futures trading on long term property prices shows that the average UK home will recover its current value only in 2017.

Posted by slumping_down @ 02:20 PM 3 Comments

It also demolishes the myth of soaring rent levels," Mr Potter added

BBC: 'Strong demand' for homes to rent

"We are seeing corrections in individual locations throughout the country. The main cause of these is the developments of new blocks of two-bedroom flats coming on-stream," said Ian Potter, head of operations at Arla. "In many places this has had a positive effect as it has allowed the rental market to provide stability in housing at a time of volatility in the sales market. It also demolishes the myth of soaring rent levels," Mr Potter added.

Posted by stevie dee @ 02:05 PM 1 Comments

Bubbling Under - The Really Bad News

The Oil Drum: Why Oil Costs Over $130 Per Barrel/The Decline of North Sea Oil

The Oil Drum website is a gathering place for oil technology types and industry professionals to swap views and information. Euan Mearns is a regular contributor - providing number-crunching reports of often breath-taking complexity. This one is more accessible than most, and is definitely worth a read. Don't miss the follow up comments, and the graph on oil discovery statistics that will undoubtedly spoil your day. Why on housepricecrash.co.uk? Because if your house is worth even 50% of its present value in 5-10 years time - you'll be lucky.

Posted by lierbag @ 01:36 PM 17 Comments

Because mortgage affordability is a big driver of asking prices

Businessweek: The Next Real Estate Crisis

This is a very interesting article. The Option ARM mortgage (sometimes known as the Neutron Bomb mortgage) resets will cause the decline in house prices to accelerate. We have similar problems brewing here as fixed rate deals are resetting. Rates are higher and conditions are tougher. We are just seeing the start of the repossessions spiral and yet some banks are talking about great results! We have not even seen the UK subprime meltdown yet. We soon will and it seems that it will be far uglier than even the US.

Posted by lvmreader @ 12:08 PM 6 Comments

Britainnia rules the waves at bullsh!t

BBC: UK firms 'top Europe wealth list'

Large UK-owned companies are outstripping their European rivals when it comes to creating wealth, a study has concluded.

Posted by holding out @ 12:01 PM 10 Comments

More of that inflation

Times: Factory gate prices surge to 26-year high

The Bank of England is facing further pressure to control rising inflation after it emerged that core factory gate prices surged to 5.7 per cent during May - the highest increase since 1982 and far above the expected 4.7 per cent.

Posted by holding out @ 11:16 AM 29 Comments

Article about the 90's. Soon to be updated, I fear.

Guardian: Debt destroyed my family

In the 90s, Samantha Downes's parents bought an inn. All went well at first, but the economic downturn led to financial struggle - which ended in tragedy

Posted by inbreda @ 11:01 AM 12 Comments

If it is good enough for the FT, it can appear here

FT.com: The truth is out there

According to a show of hands that February afternoon, several hundred people in the immaculate church believe this to be true. Some came in T-shirts bearing the words 9/11 was an inside job. One wore a badge demanding that you Examine your assumptions. Quite a few bought the DVDs on sale in the foyer, most of which bore photographs of the Twin Towers spewing smoke. They had all come to hear the message of Architects, Engineers & Scientists for 9/11 Truth, one of the dozens of groups across the US which campaign to persuade us that everything we think we know about 9/11 is wrong.

Posted by lvmreader @ 10:23 AM 89 Comments

HPC listed in Telegraph's "best property websites" list.

Telegraph.co.uk: 50 best property websites: The pick of the clicks

The title says it all. To be honest, though, I'm surprised there actually are 50 decent property-related websites, so I'm not convinced this is all that much of an honour. 8)

Posted by brian t @ 10:15 AM 2 Comments

Those were the days.... So much hope!!! Next!!!

Youtube: D:ream "Things can only get better"

I know it is off topic, but I was really just reminiscing & a bit of music to lift the mood.

Posted by stevie dee @ 10:00 AM 4 Comments

Inflation not to be allowed to take off?

Telegraph: Federal Reserve and ECB are in no mood to save us from the consequences of our debt

Fetch your tin helmets once again. The European Central Bank is opting for a monetary purge. So too is the US Federal Reserve, now ruled from Dallas.

Posted by holding out @ 09:42 AM 10 Comments

Chickens come home to roost

Vincennes Books NYS: Death in Kovalam

An interesting story of how Brits find themselves contaminated by diseases and falling house prices on their package tours (on the never never) in Kovalem, India, mingling with financiers and mortagage brokers on the run!

Posted by sumpinein @ 08:11 AM 0 Comments

Leaches too are an endangered species

Tgraph: Landlords 'losing rent and profits'

"Landlords are losing confidence in the buy-to-let market amid evidence of declining profitability and rising levels of missed rent. Some 17pc of the 500 landlords surveyed said they had missed a mortgage payment in the past quarter because tenants had not paid up. Despite these concerns, landlords intend to stand behind their property investments" Given property is so illiquid they have no choice now.

Posted by confused76 @ 08:01 AM 16 Comments

And he talks about how the oil companies and U.S. government won't send it through the pipeline for U.S. citizens to use.

video.google.com: Lindsey Williams talks about his first hand knowledge of Alaskan oil reserves larger than any on earth

Lindsey Williams talks about his first hand knowledge of Alaskan oil reserves larger than any on earth. And he talks about how the oil companies and U.S. government won't send it through the pipeline for U.S. citizens to use. free 'The New American' magazine download-the NAU issue: http://www.thenewamerican.com/node/6230 http://www.free10dvds.com --Terrorists' Activities: prior knowledge furnished to the FBI six months in advance of 9-11--

Posted by big chris @ 07:50 AM 1 Comments

An unofficial construction index has provided the latest indication that Australia's economy has slowed substantially in recent months.

abc: Construction slump points to economic downturn

The Australian Industry Group (AiG) - Housing Industry Association (HIA) Performance of Construction Index (PCI) reveals that building activity fell sharply in May, after also falling heavily in April.

Posted by big chris @ 04:27 AM 0 Comments

It's different this time

Guardian: Traders predict house prices will fall by 50% in four years

The slide in house prices will continue for at least three years and crush the value of a home by almost 50% in real terms, according to a key index of property price futures. Indications from futures trading on long term property prices shows that the average UK home will recover its current value only in 2017 ... The Liberal Democrat Treasury spokesman, Lord Oakeshott, said the figures revealed that property investors had little confidence in the market and were predicting steep and prolonged falls in prices. "This government says this housing depression will be different from the early 1990s. Yes, that's right. It will be worse."

Posted by quiet guy @ 12:57 AM 19 Comments

Sunday, June 8, 2008

Coming to a SE town soon

BBC: Tale of two towns on house prices

Not matter how much the BBC try to persude us the crash is happening outside the South-East, the over-mortgaged mugged mugs in and around London know the noose is tightening with only one result; a Sadam moment.

Posted by doomwatch @ 11:29 PM 0 Comments

Now this could prevent fraud at mortgage lenders in future

NY Times: Pay It Back if You Didnt Earn It

READY for some good news from your humble research assistant? During this proxy season, almost 300 companies adopted provisions allowing them to recover executive pay that they find to have been based on incorrect financial statements. Four years ago, such clawback policies were found at only 14 companies.Only in executive payland would figures like these qualify as progress. But having boards agree to go after pay that was not in fact earned is, oddly, still something of a battle. Although pay for nonperformance or even failure seems an obvious no-no, shareholders have had to push hard in recent years to have companies institute such provisions.The most common in 131 cases were those that kick in when fraud is uncovered.

Posted by lvmreader @ 11:18 PM 5 Comments

This is another effect from high oil prices

Daily Mail: Nine meals from anarchy - how Britain is facing a very real food crisis

Who'd give a s**t about House Prices then?The phrase 'nine meals from anarchy' sounds more like the title of a bad Hollywood movie than any genuine threat. But that was the expression coined by Lord Cameron of Dillington, a farmer who was the first head of the Countryside Agency - the quango set up by Tony Blair in the days when he pretended to care about the countryside - to describe just how perilous Britain's food supply actually is.

Posted by lvmreader @ 08:22 PM 22 Comments

Cover story, can't miss it in your local newsagents!

New Statesman: Don't buy a house!

"As Britain wakes up to the nightmare of negative equity, we are facing a housing recession far worse than that of the early 1990s. Iain Macwhirter has a warning: don't buy a house now, at any price. Just say no. You have been warned." Ok here's the plan: everybody go down to your local newsagents, and when nobody's looking just rearrange all the magazines and put this one at the front of every stack. If we spread the word, people will stop buying houses and prices will fall faster.

Posted by drewster @ 07:15 PM 20 Comments

goodybe Mr & Mrs buy to let

Times: Lenders pull the plug on buy-to-lets

BRITAINS army of buy-to-let landlords are experiencing a repayment shock more severe than the one faced by other borrowers, as lenders raise rates in response to growing evidence of arrears in the sector.

Posted by doomwatch @ 05:52 PM 3 Comments

ECB reaching for the medicine, disrupting Brown's pressure on the BoE.

Sunday Times: ECB announcement puts Bank of England in dilemma

Thought this was a cracker in the Sunday Times this morning. Not exactly highbrow, in fact, not out of place in a comic, but puts the point accessibly:

Posted by dohousescrashinthewoods @ 05:06 PM 6 Comments

Brown's Labour continue to smash all records

Telegraph: Labour Party hits a record poll low

As if facing a rebellion by up to 50 of his own MP's this coming Wednesday over the time terrorists can be held without charge (28 to 42 days) yet another poll reports that its poll shows Labour having the lowest figure recorded by any poll by the company (ICM). The article raises any interesting point as pointed out by polling specialists, "Polling specialists say this suggests the Labour "brand" has become so tarnished under Mr Brown, that even his most popular policies do him no good."

Posted by denzil @ 04:50 PM 3 Comments

Repossessions rising rapidly (and HPC is in it's infancy)

BBC: Repossessions swamp free lawyers

Homeowners threatened with repossession are being denied free legal advice because lawyers who provide it are being swamped, says a charity. Transact, which promotes effective money management, blames the credit crunch for the soaring number of cases. Research suggests that repossession is more likely if homeowners fail to get proper legal advice. The charity is calling for more expert help for people in court facing the loss of their homes.

Posted by jack c @ 04:14 PM 5 Comments

BTLers and Banks facing 2 way squeeze

The Guardian: Banks are only as safe as houses

The rocket scientists at M&G have calculated that house prices are dropping at 25% per annum based on the latest Halifax figures and that "house prices are set to fall a lot further". Meanwhile BTL mortgage costs are set to jump by 36% and will not be covered by increasing rents and despite cuts in the BoE's base rate cost for FTBers have also risen sharply. Publicly mortgage lenders are in denial about the current crisis hoping that "higher margins" will make up for lost business. With more bad news on the horizon commentators are rushing to jump on the HPC bandwagon.

Posted by davidg @ 03:33 PM 0 Comments

No answers from the Sunday Times economics comedian, only dim questions

BBC 'News': Is the economy grinding to a halt?

David weighs in by conceding that things are as bad as everyone else apart from him said they were going to be. I think it is the fact that his own grotty East London abode's value is in freefall means that its now a crisis. The comments under the article however, pulling David Smith up on his assumed naiivety of his readership, and his appeal to people's short memories of his eariler denials are priceless.

Posted by paul @ 01:47 PM 6 Comments

Gordon Brown will be gutted that his stooge didn't get in

BBC 'News': Bank set to name Bean as deputy

The Bank of England is set to name its chief economist Charles Bean as the new deputy governor, a report suggests.

Posted by paul @ 01:40 PM 3 Comments

Savills predict HPC

Savills Residential report june 08: Savills report

The latest Savills residential property report predicts a reduction in prices of 8% this year followed by a further 2% next if lending conditions get easier, other wise they are predicting 10% this year and 15% next. Guess which I think will happen?

Posted by chasbmw @ 01:20 PM 0 Comments

Why should Investors trust this guy?

Independent: B&B launches charm offensive to woo investors

Rod Kent, the embattled chairman of Bradford & Bingley, will launch a charm offensive this week to persuade furious shareholders that the new rights issue and rescue package put together last week with TPG was the only way to protect the bank.

Posted by alan @ 01:16 PM 1 Comments

What a blatant and absolute fraud!

information clearing house: What Is The Cause Of The Word-Wide Rise In Oil And Food Prices?

Searching for 'truckers strikes over high fuel prices' 338,000 entries from Google. Searching for 'fisherman's strikes over high fuel prices' 336,000 entries. Searching for 'food riots over high prices' 710,000 entries. Searching for 'demonstrations over high prices for food' 2,980,000 entries. Searching for 'articles about high oil prices' 85,900,000 entries

Posted by malct @ 01:02 PM 0 Comments

Saturday, June 7, 2008

Desperate for Cash.

Guardian: Halifax offers 12% interest on savings

Halifax must be lacking some cash at the moment. The credit crunch is like a bout of diarrhoea, just when you thought it was safe to get of the seat - nope better sit back down again.

Posted by waiting for the crash @ 11:27 PM 5 Comments

No-one buying at the reserve price

Andrews Robertson Auctioneers: June Auction Results

The percentage of lots sold was 45% significantly lower than any auction results on the website. Many lots had bids on them but no one was prepared to pay the reserve price.

Posted by sc @ 09:56 PM 4 Comments

Bad advice everywhere

FT: Matthew Vincent: Location, stagnation, no elation

Kirses and Fill 'yerboots' Spender are not the only ones with unfurnished accommodation between their ears.

Posted by letthemfall @ 04:14 PM 10 Comments

Banks compete to offer "worst buy" mortgages

The Times: Banks compete to offer "worst buy" mortgages

The mortgage market has been turned on its head. Banks and building societies used to compete on price, vying to offer the lowest rates and most reasonable arrangement fees. The aim, after all, was to attract borrowers through their doors. But the credit crunch has prompted a complete volte-face. Instead of competing to offer the lowest rates, lenders are now competing to offer the least attractive deals, terrified that if they are left exposed as the best-buy on the market they will be inundated with mortgage applications.

Posted by critical bill @ 03:14 PM 0 Comments

It's all coming up roses for broon

Telegraph: UK inflation expectations for next 50 years soar

Markets are now pricing in an inflation rate of more than 4pc for the next half-century in the latest sign that they fear the Bank of England is losing the fight against rising prices.

Posted by holding out @ 02:31 PM 10 Comments

Not houseprices but a good labour bashing

Telegraph: Reasons to be cheerful? Well, at least the sun shone yesterday

Newspapers are often accused of being wilfully alarmist in order to boost circulation. Destruction and disaster are more appealing to readers than jolly tales about jumble sales, so we churn out the former and spike the latter. That, at least, is the allegation

Posted by holding out @ 02:15 PM 11 Comments

How far will your house price fall?

MoneyWeek: How far will your house price fall?

The buy-to-let boom is turning sour and thousands of amateur landlords are about to learn some brutal facts of financial life. If only they'd been taught some basic maths...

Posted by damien @ 12:39 PM 11 Comments

average rent down 9%

ARLA: AVERAGE RENT DOWN 9%

more misery for buy-to-let landlords...as if the credit crunch wouldn't affect them!

Posted by taffee @ 12:17 PM 8 Comments

Workers 'forced to take pay cuts'

BBC News: Workers 'forced to take pay cuts'

We all know that most of us are effectively having pay cuts in real terms against inflation at the moment, but the GMB union reports that some firms are now actually cutting pay rates in nominal terms due to the hard economic times. This will only feed into the downward cycle of the housing market as people can't obtain mortgages as easy and many won't keep up with repayments. We've got a LONG way to go to get to the bottom.

Posted by c'mon correction @ 12:09 PM 2 Comments

Nickell's NHPAU still doesn't get it...

BBC News: Warning on house building targets

Among today's Newspeak is this interview with Prof Nickell, still wittering on about the need to build lots of "houses" (=more ghetto accommodation). He has failed to notice that house prices have fallen over 7% despite sharply reducing numbers of newbuilds, or that the government target is based on assumptions about continuing with politically untenable levels of net immigration. Closing the NHPAU quango might make more sense - at least it would save some taxpayer's funds.

Posted by mark @ 10:19 AM 2 Comments

Where Are They Now?

The Spoof: Bradford And Bingley Crisis Latest

Police are to investigate the whereabouts of its two owners, Mr Bradford and Mr Bingley. They were only ever seen in silhouette, and were last reported wearing black suits and bowler hats.

Posted by yoyo1 @ 09:56 AM 0 Comments

Up, Up and Away

Independent: B&B and Abbey hike rates as funding costs rise

Bradford & Bingley is raising its mortgage rates by up to 0.55% to counter the margin squeeze that helped to trigger its profit warning. The beleaguered lender was joined by Abbey, one of the strongest competitors in the UK at the moment. The bank, owned by Santander of Spain, has increased rates on some fixed-rate mortgages by up to 0.44 per cent. Abbey had cut rates by 0.17% the week before in a bid to boost market share.

Posted by little professor @ 09:11 AM 2 Comments

Creaky household budgets

The Times: Pressured homeowners seek mortgage holiday

Just for a change, a story about the UK housing market ... 'Increasing numbers of homeowners are taking a holiday from mortgage payments as the pressure on their finances intensifies. Several major lenders have reported a rise in borrowers taking or planning to take a mortgage holiday, which allows them to skip payments for up to a year. It is one indicator that borrowers are struggling to cope with household expenses, experts said.'

Posted by quiet guy @ 01:41 AM 8 Comments

"Unavoidable"

The Wall Street Jounal: Oil scores biggest daily dollar gain on record

Risk of Israeli attack on Iran, dollar weakness lift crude prices by almost $11 Comments from Israel's transport minister, reportedly a close adviser to Prime Minister Ehud Olmert, that an attack on Iranian nuclear sites looked "unavoidable" has driven buying to a fever pitch, according to Michael Fitzpatrick, an analyst at MF Global. Israeli Transport Minister Shaul Mofaz was quoted by Yedioth Ahronoth newspaper as saying that if Iran continues with its program for developing nuclear weapons, Israel will attack.

Posted by sold out @ 12:26 AM 10 Comments

Surely the Biggest VI is the Glubberment

Times: New Bank of England watchdog: Treasury tries to reassure City

Treasury insiders were panicked last night into quelling fears that government plans to set up a special committee to police parts of the Bank of England are riven with conflicts of interest. City Observers fear that a panel is being prepared as part of a pact that will allow Mervyn King, Governor of the Bank of England, to appoint Charles Bean as deputy governor to replace Rachel Lomax.

Posted by enuii @ 12:09 AM 1 Comments

Friday, June 6, 2008

Bugger-These-Loan rates!

Times Online: Abbey increases mortgage rates and Egg quits mortgage business

Abbey, Britains third-largest lender, increased its mortgage rates last night as Citigroup, the worlds biggest bank, stopped offering home loans to British borrowers. As the credit crunch continued to bring misery to homeowners across the country, Citigroup announced that Egg, its internet bank, had halted mortgage business.

Posted by rental john @ 11:29 PM 0 Comments

Bradford & Bungle - pulls all BTL loans offered through the its subsidiary, Mortgage Express

FT.com: Alarm bells sound for landlords amid dearth of deals

The worry is, if we get a situation where large numbers of private landlords are trying to offload properties at the same time and needing to do it quickly because they cannot afford the new mortgage payments, property prices will fall even further and faster than they are now,

Posted by rental john @ 11:24 PM 0 Comments

At this rate I wonder if they'll still be around when I buy in 2011?

FT.com: Estate agencies face 15,000 job cuts

"As many as 15,000 estate agency jobs will be lost this year as the growing crisis in the housing market takes its toll on companies in the sector, a leading economics forecaster has warned. Real estate will be the hardest hit industry in the wider business services sector, in which 40,000 jobs are set to be cut in 2008, according to the Centre for Economics and Business Research."

Posted by trough2010 @ 09:35 PM 8 Comments

Those domino louts!

Telegraph Online: Hats banned from Yorkshire pubs over CCTV fears

Pubs in Yorkshire have been ordered to ban people from wearing flat caps or other hats so troublemakers can be more easily recognised. The Park Hotel in Wadsley, Sheffield, is the latest to be asked to impose the rule by senior police officers.

Posted by gardeniadotnet @ 09:32 PM 35 Comments

Compare the cost of renting or buying equivalent homes

NYTimes: Is it better to buy or rent?

Using this interactive flash applet, you can input a variety of variables (house price, running costs, balance of sale) what the current economic conditions are and what your own price sensitivity is.

Posted by lvmreader @ 08:50 PM 1 Comments

Sex parties, stupidity and mortgage defaults

NYTimes: Trail of Bad Loans Leads to the Couple Next Door

A trail of foreclosures left by a Florida couple, Scott and Deanne Hopp. They bought and sold house after house, and seem to have done well at it for a time. They specialized in buying houses with less than no money down, borrowing more cash than they actually had to pay. One of their homes caused a scandal when it was featured in the local newspaper as being used for sex parties promoted on the Internet. (The report said that some partygoers had to pay a fee, but that others had been admitted free in return for agreeing to allow the party organizers to use videotapes of their party activities.) The Hopps protested that was not their fault, that a tenant had organized the parties without their knowledge. Simply renting out the house was a violation of the terms of the mortgage agreement.

Posted by lvmreader @ 08:40 PM 1 Comments

And the next domino in line is Egg

Times: Citigroup's Egg halts mortgage lending

Egg have pulled out of the mortgage market. This follows parent company Citi's move to pull out of personal loans.

Posted by jonb @ 08:22 PM 0 Comments

Segregation Society

The Press Association: Lampposts moved to 'posher' area

A council has removed dozens of Victorian lampposts from a city suburb and moved them to a "posher" neighbourhood, Clifton, a more affluent part of the city.

Posted by yoyo1 @ 05:58 PM 12 Comments

Putting their money where their mouth is

Reuters: House prices set for 30% fall, derivatives show

Britain's housing downturn is unlikely to bottom out until 2011 by which time average prices will have fallen by around 30 percent from their peak last August, derivatives data showed on Friday. The market also indicated that it could take another 10 years for house prices to regain current levels. The Tradition Future HPI, which is based on the non-seasonally adjusted version of the Halifax price index, sees average British house prices bottoming out below 43,000 in 2011 from 186,482 currently. According to derivatives market data, British house prices are likely to shed another 20 percent in the next 24 months.

Posted by little professor @ 05:50 PM 4 Comments

Unemployment rising at it's fastest rate in TWENTY YEARS!

BBC News: US unemployment rate reaches 5.5%

Soon coming to a town near you. I hope you're ready....

Posted by doom&gloom @ 05:44 PM 3 Comments

Coming soon to a country in NW Europe?

The Age.com.au: Fuel price rise ignites trouble for Indian PM

Protesters burn an effigy of the Indian prime minister. Photo: Reuters THEY play petrol politics hard in India. When the government-controlled price of petrol was increased by five rupees a litre (about 13 cents) on Wednesday the main opposition party, the BJP, demanded the Prime Minister's resignation and threatened nationwide "agitation". The price rise was "economic terror", said the BJP's spokesman. Even the Government's left-wing supporters ordered a two-day strike in the Communist strongholds of West Bengal and Kerala and accused the PM of committing political hara-kiri.

Posted by lvmreader @ 05:37 PM 33 Comments

What other choice do they have?

BBC News: Stena Line starts fuel surcharge

Ferry firm Stena Line is introducing a fuel surcharge on some of its routes to cope with its rising fuel bills, the BBC has learned. Customers on Irish Sea routes will pay an extra 10 per car for a single trip, while coaches face a 30 surcharge. The charges apply to newly booked journeys from 16 June.

Posted by lvmreader @ 04:52 PM 8 Comments

Abbey follows B&B to raise interest rates....

yahoo news: Major mortgage lenders put up rates

''...Two of the UK's biggest mortgage lenders have announced they are increasing their rates for new customers. Bradford & Bingley is hiking the interest charged on a range of its deals by up to 0.55%, while Abbey is increasing some of its rates by up to 0.26% from Monday...''

Posted by hpwatcher @ 04:26 PM 3 Comments

Crude futures have skyrocketed $12 since Wednesday's intraday low.

CNN Money: Oil resumes rally, crossing the $134 mark

NEW YORK (CNNMoney.com) -- Oil prices passed the $134-a-barrel threshold Friday morning, skyrocketing more than $12 since Wednesday, as the dollar continued to slide.

Posted by sold 2 rent 1 @ 03:17 PM 23 Comments

More Jobs cuts. getting like then 90's slowly

mortgage strategy: Norwich Union makes 1800 job cuts

Norwich Union is to make 1800 job cut in it Insurance division. Also from Mortgage Strategy 15,000 Estate to lose their jobs. Could not happen to a nicer bush of people.

Posted by moley20 @ 03:06 PM 2 Comments

Sheriff Leo Mcguire express his distaste on foreclosing on people for the bankers

Reuters: Mortgage crisis hits million-dollar homes

Sheriff Leo McGuire presides over foreclosure auctions in Bergen County, New Jersey, where the bidding for a home reached $1.2 million last June -- a record for one of the wealthiest counties in the nation.

Posted by lvmreader @ 02:05 PM 0 Comments

I smell a revolution a brewin'

RMN: WYOMING SHERIFFS,THE HIGHEST AUTHORITY IN THEIR COUNTRY, PUT FEDS IN THEIR PLACE

The court decision was the result of a suit against both the BATF and the IRS by Mattis and other members of the Wyoming Sheriffs Association. The suit in the Wyoming federal court district sought restoration of the protections enshrined in the United States Constitution and the Wyoming Constitution. Guess what? The District Court ruled in favor of the sheriffs. In fact, they stated, Wyoming is a sovereign state and the duly elected sheriff of a county is the highest law enforcement official within a county and has law enforcement powers exceeding that of any other state or federal official. The court confirms and asserts that the duly elected sheriff of a county is the highest law enforcement official within a county and has law enforcement EXCEEDING that of any other state OR federal

Posted by lvmreader @ 02:00 PM 1 Comments

Is this the start of a revolt?

WSJ: Sheriff Takes Law Into His Own Hands

These days, Philadelphia Sheriff John Green is best known around town for the law he won't enforce. This spring, he refused to hold a court-ordered foreclosure auction, raising eyebrows among lenders and their attorneys, who accuse him of shirking his duty to enforce legal contracts.

Posted by lvmreader @ 01:33 PM 9 Comments

Reality bites: estate agents on the market

Times online: Reality bites: estate agents on the market

"I think this state of affairs will carry on well into next year, though I'm sure it will get worse." - James Naish, EA, York Estate agents across the country are reflecting on current market state. Very unusual EA confesions. Very little hope apart from the top end of the market. And even this is questionable as this segment is a very slim and slow.

Posted by refusnik @ 01:18 PM 0 Comments

House prices plunging at twice the rate of the Nineties

Times Online: The Nineties are here again

Further evidence that Britain's housing slump is gathering pace has been provided by figures from Halifax, which show that house prices are plunging at twice the rate of the property market's drastic downturn in the early Nineties. House prices fell by a further 2.4 per cent last month, extending losses that have left them down by 6.6 per cent since January, wiping 13,000 off the value of the average home.

Posted by housebear @ 12:21 PM 8 Comments

Rates can now only go one way.......up & up!

BBC News: Bradford & Bingley raises rates

''...The Bradford & Bingley has become the latest lender to raise its mortgage rates for new borrowers. Its rates for many new deals will rise by between 0.05% and 0.55% from Friday....''

Posted by hpwatcher @ 10:50 AM 15 Comments

Stuart Law should fill his boots...

FT.com: New fund sets eyes on sub-Saharan Africa

This property fund sounds as though it is destined to fail, although I imagine that the clever speculator could make a few quid before it does. Which probably rules out Stuart Law: he'll probably wait a few more years before telling everyone it's a dead cert.

Posted by sceneclub68 @ 10:42 AM 1 Comments

Another lender (Capital Home Loans) exits the market

mortgagestrategy: CHL confirms withdrawal from residential and B2L until Q3 2008

CHL Mortgages has confirmed it will re-enter the residential and buy-to-let markets later in the year. It is still issuing some commercial loans but all residential and buy-to-let deals have been removed from the market.

Posted by jack c @ 10:28 AM 4 Comments

More BS Reporting!

MSN Money: Renters worse off than ever

This article implied that rental costs had already soared, but the first line of the article reveals the sensationalist cr*p headline (the keyword is MAY): Tenants unable to afford that first step onto the property ladder have been rocked by news that rental costs may rise sharply in the next two years.

Posted by inbreda @ 09:45 AM 38 Comments

More bearish News.

Fool.co.uk: House Price Fall Biggest In 15 Years

Investors in residential property got more bad news today. The price of the average UK home fell by 4600 in May alone (a 2.4% fall), and prices have fallen 3.8% over the last year, according to the Halifax House Price Index. That's the biggest monthly fall for 15 years.

Posted by housebear @ 09:43 AM 5 Comments

Inflation going up up up!

Bloomberg: U.K. Utility Bills May Rise for Two Years, Adding to King's Inflation Woes

Electricity for delivery in the winter ahead traded at a record 84.25 pounds a megawatt hour today, more than double the price a year ago. So household monthly outgoings are likely to be squeezed by higher energy payments and higher mortgage rates once King's team get embarrassed about writing those letters all the time.

Posted by ontheotherhand @ 09:38 AM 6 Comments

City panel to oversee Bank

FT.com: City panel to oversee Bank

Let me just get this straight in my mind. Just so i don't lose my sanity you understand. The City is to oversee the Bank of England in the interests of financial stability. Did i get that right? It's a piss take in-it?

Posted by whiteknight @ 09:16 AM 15 Comments

UK House Price Forecast 2008- Bear Market is Only Beginning

The Market Oracle: UK House Price Forecast 2008- Bear Market is Only Beginning

House price falls in terms of annual percentage change are falling at the extreme end of the forecast range, which confirms earlier expectations that the mainstream media will come to term the current period as a mini-crash in UK house prices. Again the expectation remains after a further deterioration in trend the rate of annualised house price falls will move back towards trend as the pace of declines slows later in the year.

Posted by housebear @ 09:09 AM 1 Comments

Studio flats bad value when you could buy a 3 bedroom house for the same next year!

Times Online: Are Studio Flats a good buy?

With house prices falling, the temptation for those desperate to get on to the housing ladder is to opt for the first property that slips into their price range. In many cases, this is a studio. When the market weakens and prices slip a little, it brings studios within reach of a wider audience, says Andy Finch, the head of new homes sales in Manchester for Knight Frank.

Posted by housebear @ 09:07 AM 4 Comments

Higher Higher Higher

Times Online: Trichet says July rate increase possible

Fears erupted yesterday that the Bank of England may soon raise interest rates, rather than cutting them, after the European Central Bank issued a surprise warning that surging inflation could force it to lift eurozone rates as early as next month. The ECBs abrupt move to a state of high alert over inflation stunned markets and triggered a scramble by the City to rethink interest rate prospects on both sides of the Channel.

Posted by housebear @ 09:03 AM 4 Comments

Dark Times

Times Online: City stunned by European Central Bank's warning on eurozone rates

there were fears yesterday that the Bank of England could raise interest rates after the European Central Bank issued a surprise warning that surging inflation could force it to lift eurozone rates as early as next month. The ECB's abrupt move to a state of high alert over inflation stunned markets and triggered a scramble by the City to reassess the outlook for interest rates on both sides of the Channel. Both the Bank and the ECB held rates yesterday despite worsening economic prospects, spurning pleas for action to buoy growth as they continued their fight to quell rising inflation.

Posted by housebear @ 09:00 AM 2 Comments

Property Crash

The herald: Property prices

there has been a degree of hubris in Scottish attitudes to the downturn in the housing market. UK indicators have been flashing red for several months but the predominant narrative north of the border has been that Scotland is weathering the storm. That notion is sustained by government figures showing average property prices in Scotland in the first quarter of this year were 7.4% higher than a year ago.

Posted by housebear @ 08:58 AM 0 Comments

It means there is a crash!

The Herarld: A slowdown, not a slump: what the figures mean for Scots home prices

Another month, another slump in house prices. The property bubble has burst. That's the message in UK-wide figures yesterday from Britain's biggest mortgage lender Halifax Bank of Scotland. HBoS said average house prices had fallen 2.4% in May compared with the previous month. A Scottish breakdown will only be available in July. So does this gloomy picture reflect reality north of the border? Scotland escaped the housing crash in 1991 and has seen a much steadier rising market in recent years.

Posted by housebear @ 08:54 AM 2 Comments

House prices fall at fastest rate since 90s crash

guardian.co.uk: House prices fall at fastest rate since 90s crash

House prices are falling more rapidly than at any time since the early 1990s property crash, according to figures released by the Halifax yesterday. Amid City fears that the Bank of England's decision yesterday to peg the cost of borrowing at 5% could push the economy into recession, the Halifax, Britain's biggest mortgage lender, reported that the cost of a home fell by 2.4% in May, wiping almost 5,000 off the cost of an average house.

Posted by housebear @ 08:51 AM 2 Comments

Using the "C" word

Independent: Housing crash worse than feared

Britain is heading for a housing recession deeper and more painful than even the most pessimistic of observers thought possible, with price falls rivalling those seen in the slump of the early 1990s. The Halifax House Price Index, published yesterday, showed that house prices fell by 2.4 per cent in May alone, by 6.3 per cent in the past three months, and by 10% in real terms since their peak last year. The average value of a British home is now 5,000 down on the month before.

Posted by little professor @ 08:28 AM 9 Comments

UK House Prices have Fallen by 14,600

The Market Oracle: UK House Price Forecast 2008- Bear Market is Only Beginning

UK House Prices the current bottom line - Down 6.4% year on year, Down 14,600 from the Peak, Down 7.2% from the peak. Down 3.6% on a quarterly basis. The Halifax, Britains biggest mortgage bank's housing market data for May 08 continues to confirm the Market Oracle forecast for a 15% drop from August 07 to August 09, and a 7.5% drop for 2008.

Posted by nadeem walayat @ 08:17 AM 0 Comments

Prices in meltdown

Daily Mail: House Prices Fall at Fastest Rate for 25 Years

And another 24% by 2009

Posted by bearshare1616 @ 07:48 AM 13 Comments

BTL Blairs

Evening Standard: How Blair built his property portfolio on mortgage expenses payments

...a property portfolio of which a Russian oligarch would not be ashamed. This includes the Blairs' 4million mansion in London's Connaught Square with its 800,000 mews cottage, two flats in Bristol and Sir John Gielgud's former country estate in Buckinghamshire, recently bought for around 5million. You may wonder how on earth Blair arranged this. After all, while the former Prime Minister can now earn 500,000 a month from international speaking engagements, until a year ago he existed on his salary as an MP and then Premier - as well as on Cherie's legal work. However, the truth is that the couple's ability to build up their property portfolio is thanks partly to Parliament's scandalously ill-policed generosity towards our public representatives.

Posted by papabear @ 07:36 AM 0 Comments

the blairs

daily mail: the blairs mortgage porfolio

Suckers and you know what, i bet Brown nose was in on it too. this is what happens when youve got a myrobella in your mouth cherie, and all the evidence was accidentaly shredded. bs. & now he thinks hes jthe messiah wandering around the middle east .

Posted by campin @ 04:58 AM 0 Comments

What is a "Loan" exactly? Why can banks make them?

TTWSYF: The Origins of Fractional Reserve Banking

Simply put every loan given is a deposit. You go to the bank, ask for a loan of say $1000 and they open and account for you to that amount. If you ask for it in cash to settle a debt someone else will eventually deposit that amount. You of course still owe your bank that money, which was created out of nothing the moment you opened your mouth. The money created is debt to which they add interest.

Posted by lvmreader @ 03:43 AM 0 Comments

What we were saying 15 months ago on this site

House Price Crash: March 2007 Archive

Ah, the nostalgia. Yes lots of "Conspiracy Theories" ( the biggest one being that there was going to be a House Price Crash ). I wonder what else that is "conventional wisdom" or truth is mistaken. Q: How can one prejudge the quality or veracity of information before one has it? A: Only a bigot prejudges.

Posted by lvmreader @ 02:56 AM 12 Comments

The tally stick system worked really well for 726 years

The Truth will set you Free: Why do we have our current money system? Read on...

THE TALLY STICKS (1100-1854) King Henry the First produced sticks of polished wood, with notches cut along one edge to signify the denominations. The stick was then split full length so each piece still had a record of the notches.The King kept one half for proof against counterfeiting, and then spent the other half into the market place where it would continue to circulate as money.Because only Tally Sticks were accepted by Henry for payment of taxes, there was a built in demand for them, which gave people confidence to accept these as money.He could have used anything really, so long as the people agreed it had value, and his willingness to accept these sticks as legal tender made it easy for the people to agree. Money is only as valuable as peoples faith in it.

Posted by lvmreader @ 02:45 AM 2 Comments

Ever wondered where the banks get the "money" that they "lend" you?

Google Video: "Money as Debt"

Paul Grignon's 47-minute animated presentation of "Money as Debt" tells in very simple and effective graphic terms what money is and how it is being created. It is an entertaining way to get the message out. The Cowichan Citizens Coalition and its "Duncan Initiative" received high praise from those who previewed it. I recommend it as a painless but hard-hitting educational tool and encourage the widest distribution and use by all groups concerned with the present unsustainable monetary system in Canada and the United States.

Posted by lvmreader @ 02:41 AM 16 Comments

Funny how people now see things as

Independent: The next banking crisis?

Other banks' shares dropped yesterday as investors prepared for the next phase of the playing-out of the credit crunch as overstretched borrowers struggle to repay their debts.HBOS, the country's biggest mortgage lender and the second-largest player after B&B in buy-to-let, and Royal Bank of Scotland were forced to put out statements saying that they continued to trade in line with earlier guidance.European banks such as UBS, which is preparing for its own rights issue, were also hit by negative sentiment spreading from B&B.Chris Willford,B&B's finance director,said:"It reminds those of us in the business and observers outside that this is a credit-risk business and there are cycles in that business.You have to go into this with your eyes open and you have to price for this in the cycle.

Posted by lvmreader @ 02:30 AM 0 Comments

Have it

Independent: Builders facing cash calls as sales slump

Many of Britain's biggest housebuilders could be forced into deeply discounted emergency rights issues before the end of the year, City analysts are warning, amid unprecedented gloom about the prospects for the sector. More than 300m was wiped off the value of the country's six largest housebuilders yesterday, with investors panicked into a sell-off by a doom-laden report on the sector from investors at UBS. The investment bank said there was little prospect of any imminent recovery from leading housebuilders while mortgage lending remained depressed.

Posted by lvmreader @ 02:21 AM 0 Comments

I guess there was a good reason for this - clearly thought out.

MarketWatch: Lloyds' Northern Rock rescue foiled by regulators - report

Lloyds was poised to take over Northern Rock PLC (NRK.LN) before the troubled U.K. mortgage lender was forced to go to the Bank of England for an emergency credit line, but the deal was ultimately blocked by the BoE and the U.K. Financial Services Authority, the Sunday Times reported, without citing sources. It said there were concerns among BoE officials that a takeover would cause greater consternation in the financial markets, leaving Northern Rock with no choice but to ask the BoE for an injection of funds.

Posted by lvmreader @ 02:18 AM 0 Comments

Darling to interfere more with "independent" MPC

FT: City panel to oversee Bank of England

A panel of eminent City figures is to be brought in to make the Bank of England more alert to looming financial trouble and help avoid a repeat of the Northern Rock fiasco, under plans revealed on Thursday by Alistair Darling, the chancellor. Mr Darling wants City insiders to sit on the shoulder of Mervyn King, the Banks governor, as part of an overhaul designed to put financial stability right at the front of its operations.

Posted by little professor @ 02:16 AM 0 Comments

Flashback: (Sep 2007) Lloyds originally offered to buy Northern Rock

Independent: http://www.independent.co.uk/news/business/news/northern-rock-suitors-will-not-get-guarantees-from-bank-402655.html

Dithering caused this to be rejected. Northern Rock's future as a viable business hangs in the balance after the Bank of England refused to provide guarantees to potential bidders. Lloyds TSB came close to buying Northern Rock at the start of last week but the deal fell apart. Banking sources said Lloyds TSB was asking for support from the Bank of England on terms the central bank had to refuse. The Bank of England last week backed Northern Rock by offering funding at a penal rate, said to be 7 per cent, secured on mortgage assets.

Posted by lvmreader @ 02:14 AM 0 Comments

"These poky unsellable inner-city flats symbolise everything that's wrong"

Times: Bradford & Bingley mortgages and our planning failures

A more appropriate symbol for B&B would be a poky apartment in a newly built block. This is the kind of property bought at the height of the boom by many Bradford & Bingley borrowers who hoped to flip. Some of these borrowers are now behind with their mortgages because they cannot sell, or find tenants. In a scandal which highlights the shortcomings of Britain's quota-driven planning-approval system, many recently erected blocks of flats were designed purely for speculators, not for occupants. The apartments in question are tiny and lack storage space.

Posted by little professor @ 01:06 AM 1 Comments

Are you a full or part time truther?

Architects and Engineers for 9/11 Truth: The fall of World Trade Centre 7

I've had much slack from this, but, central to whether we believe our government & press, on anything, particularly houseprices, is the 9/11 truth movement. If they can lie about that, they can lie about anything. Here, it is. The third building that fell. Oh, you didn't see that video? Well, here it is, & I've linked to a professional website. Few of us believe the Governments houseprice conspiracy theories, yet some are sucked into oil, food & water price government conspiracy theories. I posted this to ask, why do you still believe them, after being lied to repeatedly. Are you a full or part time truther?

Posted by planning4acrash @ 12:42 AM 45 Comments

Thursday, June 5, 2008

Lifeline for distressed lender Countrywide.

BBC: Fed backs bank's Countrywide buy

US banking giant, Bank of America, is free to take over the country's biggest mortgage lender, Countrywide Financial, after the move got regulatory approval. The US Federal Reserve said, after looking at the case for and against the $4bn (2.04bn) purchase, that it could go ahead. Analysts say the deal is a lifeline for distressed lender Countrywide. The firm - a key participant in the sub-prime sector - had been hit by the severe downturn in the housing market. In August 2007, Bank of America had invested $2bn in Countrywide.

Posted by jack c @ 11:55 PM 0 Comments

Another little UK Banking Scam is exposed again

Times: Competition Commission looks into banks' payment protection

Banks and other Financial Institutions that have mis-sold payment protection insurance (PPI) could face a wave of compensation claims after the Competition Commission said that 14 million UK consumers had been overcharged by an estimated 1.4 billion. Many financial advisor's are rewarded handsomely for pushing PPI and receive up to 80 per cent of the first year's premiums as commission, according to the Competition Commission report. Which advise that; PPI is a poor value product and often mis-sold. This should spur policyholders on into considering if it is an appropriate product or not and whether they should seek redress.

Posted by enuii @ 10:57 PM 2 Comments

The Assetz interpretation of house price data

Assetz: UK House Prices - Current Data, Not What You Would Expect

Stuatz takes a fair and balanced look at the house price data and concludes that, in fact, house prices are not falling at all.

Posted by noparachute @ 10:53 PM 0 Comments

More bad news from the US of A

Bloomberg: U.S. Mortgage Delinquencies, Foreclosures at Record

The number of Americans in danger of losing their homes to foreclosure rose to the highest in at least three decades during the first quarter as borrowers who fell behind on payments were unable to sell their homes.

Posted by alan @ 10:37 PM 0 Comments

So they will get their customer base and mortgage book without having to take on the mega govn't loan!

Times Online: Lloyds TSB to 'cherry-pick' Northern Rock mortgage customers

Northern Rock's mortgage customers will receive a letter when their current fixed-rate term is close to its end, offering them an opportunity to apply for a fixed-rate Lloyds TSB loan. The offer will only be made to customers who meet the right credit criteria. Lloyds TSB attempted to buy Northern Rock when the Newcastle bank's funding dried up last August but the deal was scuppered by the Bank of England and the Treasury over competition concerns.

Posted by rental john @ 07:35 PM 6 Comments

Crock attempting to rid itself of half its assets?

Motley Fool: Northern Rock Borrowers Rescued?

.....in a bid to repay the Government's 55bn loan, the Rock is attempting to rid itself of half its assets, by 'encouraging' its mortgage customers to move elsewhere.

Posted by rental john @ 07:16 PM 0 Comments

"But I thought it was 'either/or' - OTC or Exchange Traded........"

CME Website: CME Group Statement in Response to CFTC Agricultural Market Initiatives

In particular, the recommendation based on CME Group's proposal to allow for exchange-cleared Over the Counter (OTC) agricultural swaps will provide market participants the ability to better manage the risk of price differentials between futures delivery points and local markets, as well as price volatility. CME Group's proposed OTC-cleared agricultural swaps would be subject to position accountability, transaction reporting, and margining and risk management standards that are comparable to the standards we employ in our highly successful and transparent futures markets.

Posted by lvmreader @ 07:15 PM 0 Comments

EA downsizing continues....

icWales: Peter Alan announce job losses

ONE of the biggest estate agents in Wales, Peter Alan, is to shed its workforce by nearly 10% as a result of the continuing slowdown in the housing market. The Cardiff headquartered business and subsidiary of Principality Building Society, yesterday confirmed proposals to cut 19 jobs from its 220 headcount, as well as the closure of its Mumbles branch one of its network of 25 offices South Wales.

Posted by rental john @ 07:09 PM 0 Comments

Persimmon stops building

BBC News: Building company to sack hundreds

A few minutes ago on BBC News Yorkshire. An academic gave his view. "This is not the end of the beginning, this is the beginning of the beginning" He thought other builders would follow. Sad aspect is it looks like a lot of people will lose their jobs

Posted by yorkshireman @ 07:03 PM 9 Comments

A company goes bankrupt in Chicago, and three weeks later your store in Miami goes under. The dark side of economic interdependence shows itself.

Bloomberg: Pee Wee's Grill Failure Touches Roto-Rooter, Bimbo Bakeries, GM

Joe Bristol, owner of a Roto-Rooter Inc. franchise in Concord, California, became a victim of the credit crisis last month when Pee Wee Muldoons Bar & Grill in a strip mall 20 miles away filed for bankruptcy protection. ``I was going to replace 10 service vehicles this year,'' said Bristol, 67, whose claim for $5,297.75 makes him one of 57 creditors listed in Pee Wee's court filings. ``Now, with the economy the way it is, I'm going to hold back. But it seems like everybody on that list is a victim to some degree.'' The pain at places like Pee Wee's, in Brentwood, California, 50 miles east of San Francisco, is still ricocheting through the economy.

Posted by lvmreader @ 05:58 PM 1 Comments

Sound Fundamental. Inflation is at 2.5%. Better placed to weather the storm..

FA Expo: Quality of lenders' mortgage books unknown

Malone made his comments during the mortgage panel debate, hosted by Mortgage Adviser. He told advisers gathered at Financial Adviser's annual event that it took anything up to 18 months for lenders to understand what their repossession position was and with hundreds of thousands of people remortgaging at the end of this year things were set to get worse. He said: "Once thousands of people come off their two-year fixed rates onto very expensive new fixed rates you will find many of your clients will be distressed and that is when arrears and repossessions will start to go up."

Posted by lvmreader @ 05:29 PM 5 Comments

And it's still early days.

CNN: Homes in foreclosure top 1 million

NEW YORK (CNNMoney.com) -- More than one million homes are now in foreclosure, the highest rate ever recorded, according to a trade group which warned Thursday that the crisis will continue to worsen

Posted by holding out @ 04:56 PM 0 Comments

Deserved, but where does that leave Nurses, Police, Teachers et al

BBC News: Brown makes pledge on forces' pay

he prime minister says the government will do "everything in our power" to help members of the armed forces, after criticism of how much they get paid. Mr Brown said a White Paper would set out the help available to troops in areas such as healthcare and education. He spoke after Army chief General Sir Richard Dannatt called for pay rises above inflation for service personnel. In an interview in the Sun, Sir Richard compared soldiers' pay with that of traffic wardens and police.

Posted by afrobaggie @ 04:47 PM 5 Comments

Housing Crash starts to hit prime London property

Reuters: Credit crunch starts to hit prime London property

LONDON (Reuters) - Prime central London house prices are falling at the fastest rate since the early 1990s, data shows. They went down 1.5 percent in May -- the fastest rate of decline since the house price crash of the early 90s, according to estate agent Knight Frank.

Posted by housebear @ 02:27 PM 2 Comments

Down Down they go!

First Rung: UK house prices adopt crash position as prices fall by 6.3% annually

UK house prices fell by 2.4% in the single month of May according to the latest available data published today from Halifax (HBOS). This fall dovetails with recent data from Nationwide suggesting a similar pattern of falls; approximately 2.3% for the Month of May. This most recent house price fall represents the steepest price correction since 1993 for both the leading house price indicators.

Posted by housebear @ 02:24 PM 9 Comments

The same old story

Times Online: Tempus analysis: Deja vu

For most homeowners, house price crashes are still synonymous with the early nineties. Halifax is keen to point out amid its latest dire house price figures that the economic conditions in the 1990s and today are very different. Interest rates are lower today, at 5 per cent. In 1989, they were as high as 15 per cent for a short period, and did not fall to around today's levels until 1994. Unlike the 1990s, unemployment today is still relatively low. Halifax says these factors "support housing valuations".

Posted by housebear @ 02:19 PM 7 Comments

Has someone from HPC.co.uk infiltrated the Telegraph?

Daily Telegraph: Average house prices fall by 10 per cent in less than a year

I like the headline, but claiming a 10% drop is still a little premature (next month, maybe).

Posted by richc @ 02:04 PM 9 Comments

The next big debt crisis to worry about

MoneyWeek: The next big debt crisis to worry about

Weve seen a lot of dodgy debt cropping up on our radar screens recently. As well as all those subprime horror stories, the Bank of England cautioned last month that a 5bn chunk of Britains commercial property loans could go bad. Now, leveraged loans could be yet another area to worry about...

Posted by damien @ 01:26 PM 2 Comments

Sub-prime lenders may not be as willing to sign up to the Council of Mortgage Lenders' (CML) guidance on repossessions

FT: Sub-prime lenders unlikely to follow repossessions guidance

In a letter to Chancellor AD outlining lenders' commitment to help those who could be experiencing problems paying their mortgage as a result of the credit crunch, the CML have proposed a uniformed approach to dealing with arrears. However, Vince Cable, shadow chancellor for the Liberal Democrats, said lenders were not obliged to follow the proposed practices so they could not be enforced."Unless these guidelines are enshrined in law, it is difficult to see what impact they will have on the spiralling number of repossessions."

Posted by jack c @ 01:07 PM 1 Comments

soaring cost of fuel in recent months has boosted state oil giant Saudi AramcoSaudi AramcoSaudi Arabian Oil Company

.business24: Saudi Arabia is making $1 billion (Dh3.67bn) a day in oil revenues on the back of record global fuel prices

We've reached the peak in the oil prices at $130 a barrel. It will end the year around $70 and overall will average $90 a barrel for 2008. The combination of a slowdown in the US economy along with the sharp rises in gasoline prices will lead to a curtailment in demand for oil, and will result in the price coming down," said Bourland

Posted by big chris @ 01:02 PM 0 Comments

House prices down 3.8% on an annual basis

Halifax: Halifax House Price Index

And by July they will be 7.8% lower than July 2007. However, everything is all right because house prices are still 9,373% higher than they were in 1940.

Posted by monty032 @ 12:43 PM 4 Comments

More of the Same

Independent: new evidence of house price falls

Do we see articles like this in the comics for the innumerate? Would be good to see links to articles in Sun, Mirror, Star etc It needs to sink into the psychology of the masses to really take hold and hopefully overshoot on the downside

Posted by musicben @ 12:35 PM 1 Comments

Rates on hold

BBC: Interest rates kept on hold at 5%

UK interest rates have been left unchanged at 5% following the latest meeting of the Bank of England's Monetary Policy Committee (MPC). The decision to hold rates had been widely expected amid concerns about the pace of inflation. Rising food and fuel prices pushed inflation to 3% in April, well above the government target of 2%. However, a slowing economy and falling house prices had led some to call for a cut in rates to boost spending.

Posted by jack c @ 12:02 PM 12 Comments

Don't worry - the FSA is monitoring this

Daily Telegraph: FSA Insider Trading Probe into Bradford & Bingley Slide

Some sales traders are said to be advising clients on how to cause a rights issue to fail and make a fortune by shorting it.

Posted by icarus @ 11:46 AM 7 Comments

Why the Bank of England cant save Britain from recession

MoneyWeek: Why the Bank of England cant save Britain from recession

The OECD says Britain is 'uniquely at risk' of recession. The government squandered public money in the boom years, and no amount of tinkering with interest rates can save us now.

Posted by damien @ 11:31 AM 0 Comments

Don't buy a house now, at any price.

New Statestmen: Crash: The housing crisis is just beginning

As Britain wakes up to the nightmare of negative equity, we are facing a housing recession far worse than that of the early 1990s.... But the government still believes that, as the property porn queen Kirstie Allsopp puts it, "house prices always go up". In other words, it believes in fairies, and that money grows on trees. Now comes the big bad wolf to the door, and the last thing anyone should think of doing right now is buying a house. At any price. Just say no. You have been warned.

Posted by bigbadwolf @ 11:28 AM 0 Comments

Another housebuilder has nobody to sell to

Evening Standard: Bellway profit warning as house prices fall

If Halifax's house price fall wasn't grim enough (2.4%)... "Bellway warned 'there has been no sign of the normal spring selling surge' in yet another grim warning to the City from the housebuilding sector."

Posted by n lamont @ 11:04 AM 0 Comments

The cost of an average home dropped 3.8 percent to 184,111 pounds from a year earlier, the U.K.'s biggest mortgage lender said in a statement.

bloomberg.com: U.K. House Prices Decline Most in 15 Years, HBOS Says

U.K. house prices fell the most in 15 years in May as lenders restricted access to mortgages and the prospect of a recession deterred buyers, a HBOS Plc report showed.

Posted by kernow @ 10:12 AM 0 Comments

House prices: Halifax reports 2.4% slide in May

Guardian: Business

Almost 5,000 was wiped off the value of the average house last month as the housing slowdown continued to keep new buyers away from the market, Halifax reported this morning.

Posted by ms marine @ 09:53 AM 0 Comments

Free money the solution

Telegraph: House prices: Should the Government intervene?

Here's one to get you all smiling this Thursday morning. Some genius proposals from "industry" to revive the market. Most of these boil down to govt giving free handouts. Yes please. But I've got an even better idea. Why not make all houses free? Those of you who are impressed by this flash of industrial brilliance may send a donation to me c/o hpc.co.uk. I'm also available to the govt for consultation (for a modest huge fee).

Posted by letthemfall @ 09:41 AM 22 Comments

Really!!! Stick to peace-keeping you "dodgy landlord"

BBC: Blair says Brown 'not to blame'

In some ways if you think about it, for Brown, the appearance of Blair on TV, must be the equivalent of a "Herpes Outbreak". Gordon Brown is not to blame for Britain's economic woes, former prime minister Tony Blair has said. Mr Blair said all world leaders were facing "tough times" as a result of things - the credit crunch and high oil prices - which were not their fault.

Posted by stevie dee @ 09:13 AM 12 Comments

Peak water

The Telegraph: Drought 'to be biggest world risk'

A catastrophic water shortage could prove an even bigger threat to mankind this century than soaring food prices and the relentless exhaustion of energy reserves, according to a panel of global experts at the Goldman Sachs "Top Five Risks" conference.

Posted by sold 2 rent 1 @ 08:50 AM 102 Comments

This would be called freefall then?

BBC News: "UK Home Prices Fell 2.4% in May"

The headline says it all really!

Posted by flintster1994 @ 08:14 AM 44 Comments

UK lopsided economy is becoming a bit sick

Guardian: Housing industry renews call for interest rate cut

The National Association of Estate Agents (NAEA) backed HBF's call, urging the chancellor, Alistair Darling, to offer a stamp duty holiday to first-time buyers and temporary tax relief on the mortgage interest on their prime residence. The HBF said the speed of the property slowdown was unprecedented and had shocked even experienced members of the home building industry. Quarterly mortgage approvals for house purchases had fallen by 43% since their peak at the end of 2006;at the same stage of the 1988-92 housing slump, approvals had fallen by 32%.

Posted by quiet guy @ 07:58 AM 3 Comments

Gathering pace

FT: Up to a million headed for negative equity

As many as a million people could find themselves in negative equity by the end of next year, a report has warned. According to Citibank's UK chief economist Michael Saunders, house prices face a "grim" 15 per cent drop this year, which would leave as many as 950,000 homeowners losing out. "With weak demand, tightening credit availability and the unwind of the buy-to-let bubble, we now expect house prices to fall by a total of 15 per cent over 2008 and 2009 combined, versus our previous base case of a 10 per cent drop.

Posted by little professor @ 07:54 AM 5 Comments

Rates On Hold To Fight Inflation!

bloomberg.com: ECB May Keep Benchmark Rate at Six-Year High to Fight Inflation

ECB May Keep Benchmark Rate at Six-Year High to Fight Inflation By Simone Meier June 5 (Bloomberg) -- The European Central Bank will keep interest rates at a six-year high today to fight inflation even as the euro-region economy cools, a survey of economists shows. The ECB will announce today's decision at 1:45 p.m. and President Jean-Claude Trichet will hold a press conference 45 minutes later. Separately, the Bank of England may keep its key rate at 5 percent. That decision is due at noon in London.

Posted by electrolil @ 12:58 AM 0 Comments

Wednesday, June 4, 2008

B&Q Stumbles as Mortgage Equity Withdrawal Falters

Times: ike-for-like sales at its B&Q chain tumbled 8.1 per cent in the three months to May 3

Like-for-like sales at B&Q tumble 8.1 per cent in the three months to May 3, chief exec says much worse is to come.

Posted by enuii @ 11:02 PM 1 Comments

Whoopsie

WSJ: Ambac, MBIA Face Moody's Cuts

Moody's Investors Service signaled a grim ending to a long-running credit market debate Wednesday, warning it will likely strip MBIA Inc. and Ambac Financial Group Inc. of their key AAA insurer ratings. Moody's said it will most likely downgrade the ratings of each company's insurance units by one to three notches, leaving them in the Aa range. Moody's also said it's possible MBIA's insurer ratings could be dropped at least four notches into the single-A category. The highly specific warning sent shudders through credit investors. A downgrade could trigger follow-on cuts to ratings on billions of dollars worth of bonds ...

Posted by lvmreader @ 10:48 PM 2 Comments

OECD Data to Stall Rates

Thisismoney: Inflation fears make rate hold a 'certainty'

Paul Smith of NTC Economics said: 'The latest set of results makes for rather grim reading, with the worry of stagflation in the UK now becoming increasingly real. Inflation is at 3% but is expected to rise this month - forcing Bank Governor Mervyn King to write a second 'Dear Chancellor' letter to Alistair Darling to explain why it is so far above the 2% target.

Posted by pendulum @ 10:34 PM 3 Comments

Sound fundamentals eh, Gordon?

Daily Mail: Britain most vulnerable to credit crunch after decade of 'excessively loose' fiscal policy, warns OECD

''...Britain is more vulnerable to the credit crisis than any other leading economy apart from the US, alarming research showed today. Tumbling house prices and a heavy reliance on financial services have left the UK as badly exposed as America, where a recession is looming, warned the Organisation for Economic Co-operation and Development...''

Posted by hpwatcher @ 10:02 PM 4 Comments

Wow, It's Official !

Investors Chronicle: The death of buy-to-let

The triple whammy of a profit warning, cut price rights re-issue and fire sale of a majority stake to a new investor can be blamed on the bank's dubious status as Britain's biggest buy-to-let lender. Buy-to-let mortgages comprise 57 per cent of Bradford & Bingley's 110bn mortgage book, and evidence suggests that these are at greater risk of default than loans to owner occupiers.

Posted by alan @ 08:42 PM 8 Comments

Consolidation or Competition

FT.com: ICE in $625m deal to buy Creditex

Banks have got sick of the fees charged by exchanges and as such are now starting their own arrangements to give each other use of their dark liquidity pools (see comments). This may have the added benefit of actually making the whole market aware of what positions banks have OFF the exchanges with one another. The competition between financial institutions to position themselves in the $62,200bn credit-default swap market grew more intense on Tuesday when InterContinental Exchange, which operates energy derivatives markets in the US and UK, announced a $625m deal to buy Creditex, an inter-dealer credit derivatives broker.

Posted by lvmreader @ 07:20 PM 10 Comments

The Hamptons is an exclusive New York Enclave

Newsday: Foreclosures surprise Hamptons real estate market

Paul Brennan never handled a short sale - and barely ever used the phrase - until about six months ago. But since then, Prudential Douglas Elliman, where Brennan isThe Hamptons regional manager, has handled about 10 short sales across the South Fork, he said. In a "short sale," homeowners who want to avoid foreclosure agree with their banks to sell their homes for less than the mortgage amount. "It is a new phrase for me," said Brennan, who has worked in real estate inThe Hamptons for nearly 30 years.

Posted by lvmreader @ 06:09 PM 0 Comments

OECD wants 3 x 0.25 Next Year

Moneyweek: Experts call for 0.75% bank rate cut

The OECD downgraded its predictions for GDP in Britain from 2% to 1.8% this year and more dramatically from 2.4% to 1.4% next year. The OECD report was also based on a 10% drop in house prices by the end of the year but the Nationwide has since reported a 2.5% fall between April and May alone - sparking fears of a crash. It advised against cutting rates now because this would fuel inflation.

Posted by pendulum @ 06:00 PM 5 Comments

Amen....

Americanb Enteprise Institute: It's Only Going to Get Worse

America has not had a nationwide housing crash since the 1930s. At one point during that calamity, an estimated 60 percent of all mortgages were in technical default. The rather primitive housing credit system of the time, which relied on five-year balloon mortgages, certainly exacerbated the problem, but the bulk of the problem was related to the general economic downturn. There have been some regional housing crashes that were short and relatively mild, most notably in California, Texas, and New England in the late 1980s and early 1990s. Most of those were caused by declines in key local industries: oil in Texas, aerospace and defense in Southern California and Massachusetts.

Posted by lvmreader @ 05:59 PM 0 Comments

Oooh - that stings. Those poor bankers!

Reuters: UP TO 25,000, ON WALL STREET, TO LOSE JOBS

NEW YORKNew York City's financial sector might only slice 15,000 to 25,000 jobs in the current downturn, which could prove shorter than the mayor has predicted, the city comptroller said. In contrast, the financial sector that is such a vital part of the city's economy slashed 40,200 jobs in the previous 2000 to 2003 retreat that straddled the Sept. 11, 2001 air attacks, Comptroller William Thompson said in a report. Battered by profit-gouging subprime mortgage loans, New York Stock Exchange member firms that do business with the public lost $7.3 billion (U.S.) last year, and the current job-losing cycle that began in August 2007 should run through March 2009, Thompson added.

Posted by lvmreader @ 05:58 PM 1 Comments

If the formerly "wealthy" are feeling the pain, what of the little guy?

L.A. Times: Mortgage turmoil snares Ed McMahon

Ed McMahon, the longtime sidekick to Johnny Carson on "The Tonight Show," is fighting to avoid foreclosure on his multimillion-dollar Beverly Hills estate. McMahon defaulted on $4.8 million in mortgage loans with a unit of Countrywide Financial Corp., which filed a notice of default in March, according to ForeclosureRadar, a company that sells default data pulled from public records.

Posted by lvmreader @ 05:56 PM 3 Comments

Peter Bolton King (of comedy club)

National Association of Estate Agents: NAEA CALLS ON THE CHANCELLOR TO EASE PRESSURE IN THE HOUSING MARKET THROUGH TAX RELIEF

On the eve of another interest rate decision, the National Association of Estate Agents (NAEA), the residential sales arm of the National Federation of Property Professionals (NFOPP), calls on the Chancellor and Prime Minister to ease pressure in the housing market through temporary tax relief.Peter Bolton King, Chief Executive of the NAEA, said: The NAEA is calling on the Chancellor and Prime Minister to consider other options to give people a break such as a stamp duty holiday for first time buyers and temporary tax relief on the mortgage interest of peoples primary residence.........................................

Posted by jack c @ 05:37 PM 6 Comments

Certain stuff rolls down hills.......

Guardian: Spending cuts hit corporate travel sector

Hogg Robinson, which specialises in corporate travel, warned today that market conditions remain tough as banks and other financial services firms cut back on travel spending. Annual profits at the world's fourth-largest corporate travel group were in line with City forecasts. Earnings before interest, tax and amortisation for the year to March 31 amounted to 40.3m, down from 44.1m the previous year which saw a one-off boost of 3.4m from the 2006 World Cup. The firm expects to deliver growth this year.

Posted by lvmreader @ 05:35 PM 1 Comments

Auction Rate Securities Hell

FT.com: Funds seek to break the ARS deadlock

Fund managers are seeking regulatory approval for a new type of security in an attempt to break the deadlock in parts of the $300bn auction rate securities market, which collapsed four months ago. The new security has been devised by closed-end fund managers, which in the past have issued more than $60bn in auction rate preferred shares (ARPs) and are facing complaints from investors who cannot trade them. The auction rate securities issued by closed-end funds are referred to as auction rate preferred shares, but have the same structure.

Posted by lvmreader @ 04:08 PM 2 Comments

Whoopsie

FT.com: Banks fear new $5,000bn balance burden

Accounting changes could force US banks to take thousands of billions of dollars back on to their balance sheets in the coming months in a move that is likely to curb further their lending and could push them into new capital raisings, analysts have warned. Analysts at Citigroup said a planned tightening of the rules regarding off-balance sheet vehicles would force banks to reconsider arrangements and could result in up to $5,000bn of assets coming back on to the books. The off-balance sheet vehicles have been used by financial institutions to keep some assets off their balance sheets, thereby avoiding the need to hold regulatory capital against them

Posted by lvmreader @ 04:03 PM 5 Comments

The financial sector is fine - honest

BusinessWeek: Lehman Takes a Licking

"One day after investors in Lehman Brothers (LEH) had to weather a sell-off in shares of the brokerage firm, the stock tanked again. On June 3, Lehman shares fell nearly 10% on press reports that the company intended to raise $4 billion in fresh capital, stirring market worries that the credit crunch could come back with a vengeance. For some, the plunge stirred up memories of Bear Stearns' March collapse, and financial-market rumormongers wasted no time spreading the idea that the selling in Lehman shares was a prelude to a Bear-like final act for the 158-year-old firm."

Posted by crutchley @ 02:54 PM 2 Comments

But the UK fundamentals are strong....aren't they?

BBC News: OECD warning of sharper slowdown

''...The Organisation for Economic Co-operation and Development (OECD) has warned that the global economic slowdown may last longer than expected. ...''

Posted by hpwatcher @ 02:00 PM 8 Comments

A chill wind

The Guardian: A chill wind

The financial markets are in the same situation as Britain's trade unions during the winter of discontent, but there's little sign of reform to follow

Posted by becky @ 12:59 PM 4 Comments

Land bank "scheme" exposed and closed

BBC: Illegal 'landbank' scheme closed

UKLI, which had its main office in Berkeley Square in central London, was the UK's largest landbanking company. It had bought and sold about 5,000 plots of farm land to its investors at a substantial mark-up. The company claimed that the land would subsequently get planning permission, enabling the plots to be sold again, at an even greater profit, to developers. UKLI, which had its main office in Berkeley Square in central London, was the UK's largest landbanking company. It had bought and sold about 5,000 plots of farm land to its investors at a substantial mark-up. The company claimed that the land would subsequently get planning permission, enabling the plots to be sold again, at an even greater profit, to developers.

Posted by doomwatch @ 12:12 PM 9 Comments

The truth behind Bernankes fears for the dollar

MoneyWeek: The truth behind Bernankes fears for the dollar

The Federal Reserve says it is worried about inflation. But all Ben Bernanke has done is create inflation, not fight it. As Dominic Frisby explains, that bodes ill for the next wave of the financial crisis.

Posted by damien @ 11:17 AM 12 Comments

Service sector shrinking

Sterling falls, gilts gain after weak UK services PMI: Reuters

What will take up the slack from a shrinking service sector?

Posted by stillthinking @ 10:35 AM 1 Comments

Good news but bad for savers

BBC: Gordon Brown hails Nissan Sunderland plant

The head of Nissan who had previously said no more investment unless the UK went into the Euro, said the currency was 'no longer an issue'. Or perhaps he meant to say that as value of sterling has fallen and has further to fall, an excellent place for helping the robots built in Germany and Japan to construct cars. This is good news but seems that the recent losses of sterling are permanent, so if you were trying to save with this currency bad news. The cost of manufacturing cars for European sale just dropped. Or you could argue that real wealth is transferred from UK savers to Nissan.

Posted by stillthinking @ 10:11 AM 7 Comments

Price Falls Are Good

The Times Online: House Prices Fall: Should We Care

"If the television news reported the price change of 22 Acacia Avenue, Sidcup, every night as it reports the FTSE100 index, people would realise that bricks and mortar were not as safe as they thought"

Posted by housebear @ 10:06 AM 1 Comments

Bye Bye Barratt..? (Part 2)

nebusinessJournal: Housebuilding jobs to go as credit crunch bites

The crisis hitting the NE regions house builders sector has gathered pace with four major firms looking to shed jobs in order to survive the credit crunch.Statements from Haslam Homes, Gladedale Homes, McInerney Homes and Persimmon Homes warn of the possibility of hundreds of job losses in the region over the coming months. York-based Persimmon Homes is reviewing its 1,000 North East employees after it saw house sales drop by 24% since the start of the year. It has already said it will not be building any new houses in addition to its 34 current developments in the region until the market improves.

Posted by jack c @ 10:03 AM 1 Comments

Worried about inflation? Stop printing so much money!

Guardian: Bernanke warns of danger of weak dollar

Ben Bernanke, the head of America's central bank, warned that a weaker US currency posed a threat to inflation in the world's biggest economy. Soros said the phenomenal rise in oil prices showed signs of a bubble, but a crash was not imminent. "We are currently experiencing the bursting of a housing bubble...

Posted by inbreda @ 09:55 AM 7 Comments

3rd and final part of series

Guardian: The fightback starts here

For those with long memories, today's financial crisis evokes nothing so much as the 1978-79 "winter of discontent"

Posted by inbreda @ 09:48 AM 1 Comments

Economic illiterates of the day (3)

Metro: Credit crunch wrecks home dreams

Q: You are in opposition, and can score an open goal by pointing out that the present gummint has allowed house prices to be inflated beyond anybody's wildest imagination. Do you: A: Score an open goal, and suggest measures that will ensure more efficient use of available housing, for example introducing Land Value Tax (to replace Council tax, Business Rates, SDLT etc) ensuring that people who 'overoccupy' trade down in favour of young families and that empty homes come on the market (whether to buy or rent), or B: Waffle on about cutting Stamp Duty, a measure which would merely inflate the prices that FTBs have to pay?

Posted by mark wadsworth @ 09:48 AM 13 Comments

Bye Bye Barratt..?

BBC: Market data

I've been watching this share price for some time - now down 87% in a year and a whopping 10% fall this morning. These mega home builders are sitting on vast land banks - if one goes down, the market will be flooded with development land..

Posted by uncle tom @ 09:30 AM 18 Comments

Chief executive of comedy club - June 2008 opening act

mortgagestrategy: Buy-to-let remains strong says Assetz

An increase in repossessions and rise in rental demand will keep the the buy-to-let market stable, says Assetz. The property investment advisor says the buy-to-let market remains strong with established landlords continuing to benefit from rising rental demand. It says with an increase in repossessions and auction activity expected, experienced buy-to-let investors will be able to further capitalise upon opportunities in the current market.

Posted by jack c @ 09:05 AM 20 Comments

Hometrack - "10% fall in prices will enable a fifth of those currently priced out of the market to buy a two- or three-bedroom home"

BBC: Falling prices 'help home buyers'

Falling house prices may mean tens of thousands of young working households are able to buy a home this year for the first time, a report says. The analysts Hometrack say a 10% fall in prices will enable a fifth of those currently priced out of the market to buy a two- or three-bedroom home.Their report says 28% of young people in work in the UK are unable to buy even their cheapest local properties. The situation is worst in London, followed by south-west England. The most affordable part of the country for home buyers is the North East where only 17% of young households are priced out of home ownership.

Posted by jack c @ 08:56 AM 11 Comments

Jeff Randall's always good value

Telegraph: In business, there are lies, damned lies and the art of misspeaking

"What is the chief end of man? - to get rich. In what way? - dishonestly if he can; honestly if he must." Mark Twain.

Posted by holding out @ 08:47 AM 5 Comments

It never rained in the boom years

BBC: Wet spring rains on B&Q parade

Kingfisher, the owner of DIY chain B&Q, has blamed poor weather and Easter falling earlier this year for a fall in UK sales over the 13 weeks to 3 May

Posted by holding out @ 08:41 AM 9 Comments

BBC Gives BTL Rampers a Platform

BBC News: What now for buy-to-let?

Why is the BBC giving a spiky haired VI fool free advertising space for BTL? "It is important, however, not to judge the whole buy-to-let market by lenders' reluctance to lend to new investors and on new builds - or, indeed, by the reduced number of mortgage products available." And elsewhere on the BBC website, we have more tales of misery faced by young FTBs priced out of the market.

Posted by woodworm @ 08:20 AM 1 Comments

Lots of bargains and tenants for Greenbay

BBC News: 'Lost generation' in rural Wales

A report on rural housing in Wales warns parts of the countryside "will lose the next generation of young people" without big changes in policy. The Joseph Rowntree Foundation found rural homeless levels have risen more sharply than urban areas, yet there are 18,000 vacant homes in rural areas.

Posted by crutchley @ 07:37 AM 3 Comments

Tuesday, June 3, 2008

Reminder from May 10

guardian: Shareholders fail to put brakes on directors' pay

At Bradford & Bingley, where profits halved in 2007, directors' pay rose sharply because they were paid a bonus to reflect the fact that their salaries were lower than rivals. And the bank introduced a new incentive scheme which increases the maximum potential cash bonus from 60 to 100 per cent of salary.

Posted by mken @ 11:51 PM 4 Comments

Cranshaw to trouser 840,000 for trashing B&B

guardian: UBS and Citi forced B&B to slash price of rights issue

Louise Patten, the head of B&B's remuneration committee, was currently looking at any payoff for Crawshaw, whose position had been in doubt since the apparent U-turn by B&B over the rights issue. Kent said that contractual obligations would be honoured, which could amount to 840,000 if last year's salary and benefits are used as a guide.

Posted by mken @ 11:48 PM 1 Comments

20,000 remortgage loans taken out in the first quarter of 2008... and the typical remortgage advance is 112,989

The Herald: Number of mortgages approved by lenders falls 20% in Scotland

'Mortgage approvals in Scotland fell by 20% in the first quarter of 2008 against the same period in 2007, and mortgage rationing will not improve this year, lenders said yesterday.' - But looking at the content, am I reading this right? 20,000 x 112K on remortgages = 2,240,000,000 (Yes, 2.24B)!!! I hope they invested their soon to be non-existent equity well.

Posted by markj69 str05 @ 11:21 PM 3 Comments

Fears surrounding the integrity of central banks persist

fundstrategy: Barings takes defensive stance as fears deepen

Baring Asset Management is moving to a defensive stance, as fears surrounding the integrity of central banks persist and there are few signs of a quick recovery in global markets. Andrew Cole, director of asset allocation at Barings, says recent inflation statistics have done nothing to quell fears about the medium-term prospects for the British economy. "We have been concerned by rising inflation expectations," says Cole. "We have been expecting a turnaround in the growth/inflation trade-off for the past 18 months and so we hold a negative view on government bonds.""We may wake up one day and question the integrity of central banks, who have taken all this paper onto their books," he says. "Gold is looking cheap by historical standards and could benefit from this uncertainty."

Posted by jack c @ 09:43 PM 2 Comments

HBOS admits a quarter of its mortgage book is sub-prime

The Scotsman: 'Don't panic' plea from worried Scottish giants after B&B crisis

'HBOS said later that 26.8 per cent of its mortgage book was attributable to "specialist balances", mainly buy-to-let and self-certification mortgages.' Presumably they securitied the good loans and are left with the cr*ap ... why isn't this all over BBC News? Without doubt this is the next rights issue to fail.

Posted by montesquieu @ 07:01 PM 3 Comments

Is 24% in 3 months officially a crash?

guardian.co.uk: From boom to frightening bust: where the UK housing market has been hit hardest

"Some locations have seen devastating price falls. In Craigavon and Armagh, prices fell 24.2 per cent in the first three months of this year alone. The largely rural Mid-Ulster area is down 17.7 per cent, and Antrim/Ballymena down 9.7 per cent, for the year." There are stories around NI at the moment of people in a 140K house that they payed 240K for......truly scary. Have the lenders who participated in this farce still got their jobs?

Posted by shipbuilder @ 06:35 PM 11 Comments

Long overdue, BTL misery has hit the press!!

Independent: The buy-to-let boom goes bust

BTL is the UK subprime! "B&B, which represents 20 per cent of lending across the British buy-to-let sector, said the number of landlords who were three or more months behind on their mortgage payments had leapt by more than 52 per cent between January and the end of April, to more than 1.5 per cent of its total buy-to-let customer base"

Posted by confused76 @ 06:19 PM 5 Comments

Sell or dwell either way you lose.

Finance Markets: One million households face negative equity

According to the US investment bank, UK property prices have fallen 7% since the autumn of last year and will see a decline of around 15% during the whole of 2008.

Posted by acetip @ 06:17 PM 0 Comments

B&B has had saturated news coverage - but good article here.

Tiscali News: B&B sounds alarm bells for UK's buy-to-let lenders

Lenders and industry observers have long argued the sector should prove resilient in the face of a wider downturn, with demographic trends fuelling higher rents, helping landlords to pass on higher borrowing costs. Defaults have so far been low. Mondays news from B&B, however, suggests other factors including falling house prices and a drop in employment levels, could prove damaging.

Posted by rental john @ 06:15 PM 0 Comments

The Lisbon Treaty an Irish view of Sovereignty

the irish bulletin: Irish celeb awakes to NWO, 9/11 lies, Lisbon

UK Government, UK Laws, UK Sovereignty, UK Economy, are we too complacent? What's really happening? AUDIO interview Jim Corr is a member of Irish band The Corrs, who have a reputation stretching from Ireland to the UK, Europe and further afield. They have yet to conquer the United States, but what better way to start their U.S. invasion than telling the truth not only about that particular country and its recent past, but about the Lisbon Treaty, which is being foisted upon Ireland and Europe by powerful people with shady agendas and very little ethics. Be it the New World Order, the EU, the Bush administration or Ireland's servile political establishment:

Posted by malct @ 04:43 PM 35 Comments

Bradford & Bungle

Guardian online: Bradford & Bingley: Rights issue explained

Bradford & Bingley is on the hunt for investors' cash, but the goalposts have shifted. Nick Fletcher explains what it is all about

Posted by rental john @ 04:07 PM 0 Comments

The Wonderful Wizard of Oz

The Money Reform Party: Operation Money as Debt (OMAD) in full swing.

The Money Reform Party has produced, under licence, Money As Debt DVDs for purchase by UK-based customers. These can be bought individually from the Money Reform Party, or in batches for mailing out to individuals and organisations potentially sympathetic to our cause. The environment is the big subject at present. We need to ensure that those pressing on environmental matters understand that a debt-free money supply is essential to attaining a sustainable economy. Also, if the Green lobby can see that environmental protection can be secured by methods other than taxing people to the hilt, their message will become a more palatable one for the general public.The Money Reform party is registered with the Electoral Commission and has a constitution.

Posted by malct @ 03:55 PM 6 Comments

All > 6% with some getting so close to 7% they can almost sell it

Housefund: Nationwide increases mortgage fix rates

House Purchase - Two year fixed rate (with 599 fee) available from 6.25% - Two year fixed rate (no fee) available from 6.65% - Three year fixed rate (with 299/599 fee)* available from 6.05% - Five year fixed rate (with 599 fee) available from 6.10% - Ten year fixed rate (with 599 fee) available from 6.14% - 25 year fixed rate (with 599 fee) available from 6.28% Remortgage and additional borrowing - Two year fixed rate (with 599 fee) available from 6.45% - Two year fixed rate (no fee) available from 6.85% - Three year fixed rate (with 599 fee)* available from 6.05% - Five year fixed rate (with 599 fee) available from 6.20% - Ten year fixed rate (with 599 fee) available from 6.14% - 25 year fixed rate (with 599 fee) available from 6.28%

Posted by rental john @ 03:00 PM 4 Comments

But an instruction to sell is not an actual sale....

Housefund: 0% commission for Camden sellers

To celebrate the exciting opening of their new office, Foxtons Camden is running a 0% commission offer to the first 200 home owners who instruct them to sell their property. Opening on June 14th at 120 Parkway, the new branch will offer a specialised, local service to those living - or wanting to live - in this ever-popular part of London. > I wonder if they will just cherry pick the best properties from the other local EA's books?

Posted by rental john @ 02:55 PM 3 Comments

Another 'rusty' nail in the BTL coffin?

Myfinances: Landlords face 'money for nothing' agent fees

"The truth is that landlords get no added value from letting agents on 'let only' deals once the tenants are in place, so why should they have to pick up the tab just to keep the same tenants."

Posted by rental john @ 02:43 PM 0 Comments

Japanese Uncle, What is the Japanese for Deja Vu?

FT: Japanese housing Market in trouble. Again

Just what the world doesnt need: another housing market in turmoil. Protracted weakness in new home sales in Japan suggests that the worlds second biggest economy is experiencing more than a technical blip. Japan is no stranger to real estate boom-and-busts. Land prices the major determinant in a country where houses are typically pulled down rather than re-sold only began climbing in 2006, ending 15 years of decline after the asset bubble peaked in the early 1990s. Residential land prices are still half the peak levels. The more recent slide in new home sales began in July after the government clamped down on architects who had been fabricating earthquake compliance certification.

Posted by lvmreader @ 02:20 PM 9 Comments

Water Power Scam!

yahoo news: Indonesian 'wonder fuel' just plain diesel: report

JAKARTA (AFP) - A controversial plan backed by Indonesia's president to turn water into cheap and limitless energy has run aground, with tests showing the wonder fuel is just plain diesel, a report said Tuesday.

Posted by sold out @ 02:19 PM 9 Comments

Bradford and Busted

Fool.co.uk: Bradford And Bingley & Broken

It's been a day to forget for shareholders of struggling building-society-turned-bank Bradford & Bingley (LSE: BB.) . B&B's shares were suspended from trading at 7.52am, only to be reinstated at 8.10am after the lender issued a profit warning. In a stock-market announcement, the UK's eighth-largest bank revealed five shockers: 1. US private-equity firm Texas Pacific Group is buying a 23% stake in the bank at 55p a share, for a total of 179 million. 2. B&B's recently announced rights issue has been scrapped and replaced by a restructured issue of 258 million. The original rights issue, announced last month, offered new shares to existing shareholders at 82p. As the market price is now below this level, shareholders can buy B&B shares more cheaply in the stock market. Hence, the p

Posted by housebear @ 01:53 PM 1 Comments

Swansea's housing market heading for meltdown

South Wales Evening Post: One door closes, another opens

Swansea is heading for a 35 per cent drop in house prices, a leading property expert has warned. Higher mortgage rates and fears of a recession are scaring off buyers and forcing sellers to drastically lower their prices, according to Jonathan Davis of housepricecrash.co.uk. Swansea estate agents confirmed that prices were already tumbling. One said buyers were offering 30% to 40% below the asking price.

Posted by mrs boodle @ 12:57 PM 6 Comments

Irish & European banks hit by B&B problems

RT: Irish bank shares tumble after B&B warning

Shares in all Irish banks are getting hammered this morning, as the implications of B&B's problems. Other European exchanges are feeling it too, but the scale of Ireland's property bubble is comparable to the bubbles in the UK and USA.

Posted by brian t @ 11:28 AM 1 Comments

Meltdown now

Guardian: Wrecking ball hits housing market

"Jeepers. What a way to start a week. Any remaining doubt that the housing market is in freefall was blown away by figures showing a collapse in mortgage approvals, an unprecedented rights issue repricing and profits warning from Bradford & Bingley - and an increase in the Nationwide's fixed-rate mortgages."

Posted by letthemfall @ 11:27 AM 4 Comments

What housing shortage?

MoneyWeek: What housing shortage?

The consensus view, and the argument the housing-market optimists use when trying to present a long-term bull case, is that Britain has a chronic shortage of housing. Yet plenty of evidence points the other way...

Posted by damien @ 10:03 AM 22 Comments

It's going to be a rough ride down

BBC News: Credit crunch victims await final bill

"It was a climate of "anything goes, everything goes up and we wont ask too closely if itll ever come down" that brought on the credit crunch." It was inevitable to some - beyond the comprehension of others - and a symptom of downright denial for others... Any way you look at it... It's gonna hurt..

Posted by crutchley @ 09:52 AM 5 Comments

But-to-let dream turns sour

Guardian: Panic selling by landlords could turn slump into rout

Will buy-to-let loans turn into Britain's equivalent of US sub-prime? The number of buy-to-let mortgages has spiralled to 1.1m from 120,000 in 2000, with easy lending and rising house prices creating a new army of amateur landlords. But as Bradford & Bingley reported a sharp spike in arrears yesterday, fears are growing that a panic sell-off by landlords could turn the property market downturn into a full-scale rout.

Posted by emily butler @ 09:26 AM 22 Comments

Borrowing costs soar up up and away

Guardian: Home loans fall to record low as borrowing costs continue rising

Dire mortgage lending statistics and a profit warning have underlined the crisis facing the housing market

Posted by emily butler @ 09:25 AM 0 Comments

Fergus Wilson, a buy-to-let landlord with 875 properties talks to the BBC

BBC: Millionaire landlord's advice [video]

"People with houses are doing very well"

Posted by little professor @ 09:23 AM 37 Comments

Property Overvalued 30%

BBC Panorama: High Anxiety

There has been a collective loss of memory that property prices can go down as well as up. We were told our homes were overvalued but we didn't want to know.

Posted by yoyo1 @ 09:20 AM 21 Comments

Some nice numbers from B&B

Independent: The buy-to-let boom goes bust

The first signs of a collapse in Britain's buy-to-let property market emerged yesterday as Bradford & Bingley, the UK's largest lender to private landlords, revealed a 50 per cent jump in arrears on its mortgage book over the first four months of the year. B&B, which represents 20 per cent of lending across the British buy-to-let sector, said the number of landlords who were three or more months behind on their mortgage payments had leapt by more than 52 per cent between January and the end of April, to more than 1.5 per cent of its total buy-to-let customer base. The picture was much worse within one of its books of business which it acquired from the US lender GMAC-RFC in 2005 where buy-to-let arrears were up almost 80 per cent to 3.5 per cent of the total.

Posted by quiet guy @ 09:06 AM 6 Comments

US Housing Industry- A Monument to Futility

The Market Oracle: US Housing Industry- A Monument to Futility

The Office of Federal Housing Oversight reported that U.S. house prices dropped by 3.1 percent in the first quarter of 2008 compared with the first quarter of 2007. Prices for previously-owned single-family homes fell in 43 states, with California and Nevada seeing 8 percent drops. The inventory of unsold homes also continues to rise to unprecedented levels. Graph 3 shows how this inventory has actually been spiking higher this year.

Posted by nadeem walayat @ 08:49 AM 0 Comments

UK House Prices to Fall by 29%

The Market Oracle: Housing Market Boom and Bust Cycles Driven by Real House Price Values

Real UK houseprices as measured by average earnings are 50k below actual house prices.

Posted by nadeem walayat @ 08:48 AM 4 Comments

B&B show UK following US path

International Herald Tribune: Bradford & Bingley's problems foreshadow deeper pain for Britain

We've seen this movie before - and it doesn't end well

Posted by rebecca moore @ 08:43 AM 0 Comments

After years of neglect, oil companies are heading north again

globe and mail: Stage set for new Arctic energy rush

Despite significant challenges, there is growing interest in Arctic oil and gas projects, as record prices leave companies flush with cash and suggest the resources could be profitably brought to market. The potential is thought to be enormous. Companies operating in the 1970s and 1980s discovered about 25 trillion cubic feet of natural gas and 1.7 billion barrels of oil in the Beaufort Sea and Arctic islands, but those resources remain stranded because of lack of transportation. comment - Surely another valid reason for artificially hiking oil prices - and a logical one, although perhaps not ethical - Malct

Posted by malct @ 08:35 AM 3 Comments

B&B "management" fiasco continues

guardian: Analysts angry as B&B 'bails out the underwriters'

James Eden of Exane said it was "outrageous" that the underwriters, Citigroup and UBS, would not have to fulfil their obligations to buy up unallocated shares at the original price of 82p a share. "You have paid 37m in underwriting costs and other expenses. That's money for nothing if you don't get Citi and UBS to hold to their commitments," Eden told chairman Rod Kent on a conference call this morning.

Posted by mken @ 06:54 AM 9 Comments

As I predicted

Mail online: The great rice crisis: Rationing at UK supermarkets as world prices soar 70 per cent

Now guys. You all had a go at me for suggesting that rationing was heading to the UK. Well, its already arrived. Rice, now rationed at your local supermarket. This is a test for the public in advance of the rationing that will occur if personal carbon credits are rolled out across the UK, in response partly to this situation, which is being blamed on global warming (crop failure), and peak oil. This is what the asset price boom is about. It is fed by the global financiers, to trigger a crisis that will give governments a mandate to install full control and tax (payable to the central banks that administer the carbon credit system), not payable to government. You will pay the financiers, in our case the Bank of England, soon to be the ECB, for the "luxury" using the natural element, carbon.

Posted by planning4acrash @ 12:28 AM 105 Comments

Monday, June 2, 2008

BTL headed down the toilet

Times: Gloom deepens as lending slumps and borrowers fall into arrears

But do not worry... A CML spokeswoman said that banks had all been expecting a slight increase in bad debts. Demand is still strong and the buy-to-let market is counter-cyclical, as when people dont want to buy, they want to rent, she said.

Posted by confused76 @ 11:38 PM 0 Comments

It's not our fault, it's the economy bleats new B&B boss

Sky News: Bank Boss Warns Of Coming Recession

Rod Kent the new boss of the B&B tells sky news that the UK is at the beginning of a recession, Rod informs Sky News that the faltering economy is responsible for his company's fall in profits. So where does that leave other similar lenders with the same business model and loan books?

Posted by enuii @ 09:41 PM 3 Comments

UK is sure to follow the same trends

Money AM: Housing bust takes toll on contractors, economy

Robert Lindsey was not surprised by new data last week that showed new home sales have fallen more than 40 percent from their peak almost three years ago. He can tell from his company's bank account. 'We're literally losing money every month,' said Lindsey, general manager of Signature Drywall Inc., in Sacramento, which installs drywall in new homes and apartments in the Sacramento and San Francisco areas. In 2005, the firm raked in some $30 million in sales. Last year, sales were less than half that, and this year Lindsey hopes he can make $8 million. 'It's kind of like bleeding to death,' he said.

Posted by rental john @ 08:45 PM 0 Comments

What happened to all that stuff about fundamentals?

Guardian: Home loans fall to record low as borrowing costs rise

Dire mortgage lending statistics and a profit warning from one of the UK's biggest mortgage lenders has underlined the crisis facing the housing market as the credit crunch continues.

Posted by rental john @ 08:41 PM 1 Comments

B&B now blaming GMAC for it's rising arrears

mortgagestrategy: GMAC-RFC defends quality of loans sold to B&B

GMAC-RFC has defended the quality of its mortgages after Bradford & Bingley revealed that the arrears for loan books it had recently bought from GMAC-RFC were now higher than anticipated. In its trading statement today announcing the purchase of a 23% stake in the firm by TPG Investment and a rejigged rights issue, it also announced that the arrears performance of the loans it originated itself, particularly buy-to-let, were "substantially better" than the mortgages that it had bought.

Posted by jack c @ 06:50 PM 11 Comments

Just 5 airlines to survive in Europe, 50 endangered!

Yahoo News: Fuel cost to spark airline bankruptcies: easyJet

Looks like it will soon be back to the golden aged of Steam Trains, for those who wish to visit their pad in Spain...

Posted by caribbean beauty @ 05:57 PM 10 Comments

"This is further worrying evidence of the serious problems the UK economy now faces.

libdems: Bradford & Bingley losses highlight serious problems facing the economy - Cable

"Buy-to-let mortgages are some of the worst examples of the irresponsible and unsustainable loans that have been offered by banks over recent years. They have already created thousands of empty homes, particularly in northern England, which investors can't afford and where there aren't enough tenants to fill them.

Posted by malct @ 04:53 PM 19 Comments

EA's Recognise falling prices at last!

Evening Standard.co.uk: Flat for sale, 1m price cut

The owner of a central London flat has knocked almost 1 million off the asking price in an attempt to sell as the credit crunch tightens. The news is further evidence of the weakening of the property market, and comes after figures from the Nationwide Building Society showed national prices fell by 2.5 per cent last month, the biggest fall since the recession of the Nineties.

Posted by housebear @ 04:01 PM 12 Comments

Another one to add to the pile of negative press stories

Guardian: After the boom, the bust

Any suggestion that Britain's overblown, over-hyped and over-valued property market is due for a soft landing after the excesses of recent years has just been exploded. We've had the boom: welcome to the bust.

Posted by inbreda @ 03:13 PM 6 Comments

B&B Cracks Under Credit Crunch Pressure

The Market Oracle: Bradford and Bingley- Another Bank Cracks Under Credit Crunch Pressure

The Bradford and Bingley, Britain's biggest buy to let mortgage lender is expected to announce another profits warning later today as its Chief Executive abandoned the sinking ship ahead of a 300 million originally heavily discounted rights issue at 82p, which given Friday's close of 86p and today's expected price slump looks increasingly vulnerable

Posted by nadeem walayat @ 02:52 PM 0 Comments

trying to dig their way out of the trillion dollar mortgage-backed securities (MBS) mess that they created

information clearing house: The Great Oil Swindle

Is it possible that gambling on oil futures might be a temptation for banks that are already underwater from a trillion dollars worth of mortgage-related deals that have gone south leaving the banking system essentially bankrupt? The Commodity Futures and Trading Commission (CFTC) is investigating trading in oil futures to determine whether the surge in prices to record levels is the result of manipulation or fraud. They might want to take a look at wheat, rice and corn futures while they're at it.. . . the billions of dollars they're getting from the Fed is being diverted into commodities which is destabilizing the world economy; driving gas prices to the moon and triggering food riots across the planet.

Posted by malct @ 01:05 PM 23 Comments

More rate increases this one from a biggie

BBC: Nationwide raises mortgage rates

The volatility of the mortgage market has continued with another change in rates by a major lender.

Posted by holding out @ 01:02 PM 8 Comments

"This is the Big One"

PFP Wealth Management: Unsafe as houses

Interesting article suggesting a likely fall of ~ 50% over next 3 years. Real UK house prices will probably approximately halve and take several years to do it. This is the Big One.

Posted by katalan @ 12:46 PM 2 Comments

Should Britain dump the pound for the euro?

MoneyWeek: Should Britain dump the pound for the euro?

With the pound hitting rock bottom against the euro, plus other economic woes, the temptation might be to chuck in our lot with our Continental cousins and join the euro. But is that such a good idea?

Posted by damien @ 12:38 PM 62 Comments

Just what the banks don't need. Blimey am I glad I sold my bank shares Q1 2007

BBC News: Banks target of price-fixing raid

Royal Bank of Scotland and Barclays have been raided by the Office of Fair Trading (OFT) regarding possible price-fixing. The OFT said it had launched a investigation into alleged anti-competitive practices.

Posted by doom&gloom @ 12:30 PM 1 Comments

Down She Goes!

The Times: B&B shares plummet despite private equity rescue

Shares in Bradford & Bingley (B&B), the UK's biggest buy-to-let mortgage lender, fell more than 30 per cent this morning as it announced a profits warning and confirmed that TPG, one of the worlds biggest private equity firms, is to take a 23 per cent stake in the group.

Posted by jonathan @ 12:11 PM 0 Comments

Furniture and kitchenware - going down

Guardian: Mortgage lending: Approvals hit record low

The VIs beginning to capitulate: "Simon Rubinsohn, chief economist for the Royal Institution of Chartered Surveyors, said: "The 58,000 mortgages approved in April is roughly half the total sanctioned in the same month a year ago. "This highlights very clearly the real problem facing not just the property market but also the wider economy. A collapse in transactions of this magnitude has major implications both for consumer spending and a wide range of ancilliary industries." "

Posted by letthemfall @ 12:09 PM 6 Comments

Down they go! Weeeeeeeeee

Reuters: Mortgage approvals tumble to record low

LONDON (Reuters) - Approvals for new home loans in fell to a record low in April, official figures showed on Monday, raising fears that the housing market is in for a protracted and painful slowdown. The Bank of England said mortgage approvals -- loans agreed but not yet made -- fell to 58,000 from 63,000 in March. That was much weaker than the 65,000 total predicted by analysts and the lowest since comparable records began in 1999.

Posted by housebear @ 11:28 AM 11 Comments

The first of many calls to raise rates

Daily Telegraph: The Bank of England must be brave and raise interest rates

Nicely summed up by the writer: "What some commentators want the Bank of England to deliver is 2pc headline inflation with no deterioration in the terms of trade and 4pc earnings growth. Sorry, but this cannot be done. To deliver that outcome requires not simply better monetary policy, but the tooth fairy." Expect more fo this as people realise the US cut-rates idea doesn't work, and isn't available to us anyway.

Posted by growler @ 11:19 AM 0 Comments

Is this the world biggest property bubble?

Sydney Morning Herald: Property crash not likely

states such as California and Florida are seeing average falls of up to 30 per cent 1-in-194 homes in the US have been repossessed and that ratio is climbing constantly...some financiers are repossessing homes and then asking the owners to stay rent free to protect the property from vandals......property crash could spread to Britain based on its current valuations. Average house prices in Britain are running at six times average earnings, which is way above the historic average of 3.7 times wages. Australian residential property values are currently double Britain's historic high - 12 times earnings in Sydney and 10 times in Melbourne. Australian mortgage repayments are 57 per cent of average incomes compared with 50 per cent in Britainwhere the historic average is just 30 per cent

Posted by foggy @ 11:16 AM 1 Comments

Council housing policy takes on a sinister edge ...

Daily Mail: Councils show squatters where they can find out how to break in

Town halls are referring would-be squatters to a far-Left group selling a 2 DIY guide on how to break into and occupy empty homes. The squatters' handbook advises them to force entry through back entrances or open windows, carry a crowbar and claim they are 'clearing the drains' if stopped. The guide, from the Advisory Service for Squatters, describes how to take apart locks and fit new ones. It also recommends putting a legal warning on the door stating it is a criminal offence to try to remove squatters by force.

Posted by uncle chris @ 10:50 AM 8 Comments

The inconvenient truth the MPC would like to ignore

MoneyWeek: The inconvenient truth the MPC would like to ignore

The Bank of England appears to be unhappy with data produced by the Office for National Statistics, which won't fill monetary policy makers with confidence...

Posted by damien @ 10:42 AM 7 Comments

Sound Fundamentals

Introducer Today: 250,000 facing negative equity

Large numbers of homeowners have slipped into negative equity as a result of months of consecutive falls in house prices, an investment bank has warned. According to Citigroup, since autumn UK house prices have slumped by seven per cent. As a result, the firm calculates that 250,000 mortgage holders now face a situation whereby the value of their home is lower than what they owe.

Posted by housebear @ 10:19 AM 8 Comments

Another new low in mortgage approvals

BBC: Mortgage approvals reach new low

The number of new mortgages being approved for house purchase hit a new low point in April, according to figures from the Bank of England.

Posted by holding out @ 10:08 AM 2 Comments

Worst monthly figures since records began.

BBC News: Mortgage approvals reach new low

The number of new mortgages being approved for house purchase hit a new low point in April, according to figures from the Bank of England. Just 58,000 such mortgages were approved, the lowest since the Bank began reporting the figures in 1993. That was 8% fewer than in March and nearly half the level of lending being approved a year ago. Mortgage lending is expected to slump this year because of the credit crunch and a shortage of money to lend.

Posted by ian - bedford @ 10:06 AM 0 Comments

European and US pension funds to lose more money

The Telegraph: Argentine alert as inflation spectre stalks half the world

Argentina is defaulting on its sovereign debt yet again, this time by stealth. Wealthier Portensos with a nose for trouble are pulling their savings out of Buenos Aires banks. Most are buying dollars, or slipping across the Rio de la Plata to deposit their stash in Uruguay

Posted by sold 2 rent 1 @ 10:00 AM 0 Comments

Argentinian Inflation Data is Manipluated!

The Telegraph: Argentine alert as inflation spectre stalks half the world

National Statistics Office states CPI 8.9%, but staff admit real rate is over 25%. Naughty Argentines! Who could do such a thing? Makes some other intersting points about worldwide inflation and also about more dodgy bonds which our pension funds may have invested into. It stinks!

Posted by doom&gloom @ 09:26 AM 0 Comments

Bought Too much / Borrowed Too much

BBC News: Unrealistic home dreams 'common'

Most of us think we have spent a decade buying into an unrealistic property dream, a BBC Panorama poll suggests. Some 79% of 1,000 people asked said the UK as a whole had been unrealistic about the affordability of housing. But 37% said they would still stretch themselves financially for property. Housing expert Steve Wilcox said many forget "prices go down as well". The survey comes amid a housing market which has seen prices fall by 2.5% in the last month. This is the first sustained fall in 10 years. At the same time, the supply of mortgages is drying up. The collapse of the sub-prime market has seen a 40% fall in lending over the last year.

Posted by housebear @ 09:09 AM 0 Comments

Big Business Wins Again?

Times Online: Treasury delays changes on foreign-profit tax

The Treasury is delaying proposed changes to the taxation of foreign profits after an outcry from British multinationals, The Times has learnt. Just shows who is listened to in this country. I, like a huge number of people, want GB/AD to not interfere in banks going under with my money! But do they listen?

Posted by renting2 @ 09:06 AM 0 Comments

Looking very bad

London Stock Exchange: B&B shares suspended after trading announcement

TPG group will take a 20% stake in Bradford & Bingley. At the same time, the bank announces a restructured rights issue, dropping the price from 82p to 55p. (Shares were trading at 158p prior to the initial rights issue announcement last month.) The total amount of money to be raised has risen from 300m to 400m In a trading statement, B&B announced a sharp drop in profits, down to 56m from 108m this time last year. Taking into account the recent writedowns, they have actually made a LOSS of 8m, compared to a profit of 107m last year. Also announced was a sharp rise in the percentage of mortgages in arrears. B&B have cut back their purchases of mortgages from subprime specialist GMAC to the minimum amount allowed under their contract.

Posted by little professor @ 08:41 AM 26 Comments

So private equity has made a successful takeover bid for the whole of London.

BBC: Private equity buys London

Well, with the price of many public companies relatively high and debt-finance still too tight to mention, we shouldn't be surprised that one of the star operational managers of the buyout sector has opted to run our capital as Boris Johnson's de facto chief executive. It's the best mega deal around - and the only mega deal.

Posted by malct @ 07:38 AM 3 Comments

Inflation fears could force Fed to increase interest rates

FT.com: US mortgage rates leap ahead

"US mortgage rates soared last week amid a sharp rise in Treasury market yields, as investors started to bet that inflation pressures could prompt the Federal Reserve to raise interest rates later this year. The sell-off pushed rates on 30-year fixed-rate mortgages to an 11-week high of 6.02 per cent, up from 5.81 per cent a week earlier, according to Bankrate.com. Meanwhile, the so-called jumbo mortgages or those for loans above $417,000 rose to 7.21 per cent from 7.05 per cent." Fixed mortgage rates up 0.2% in 1 week. That's a big increase, indicating that the market is now pricing in an interest rate rise due to rising inflation

Posted by doom&gloom @ 07:37 AM 0 Comments

B&B's is not suffering from a shortage of liquid funds that would imperil its future.

BBC: Private equity shores up B&B

The Financial Services Authority has in the past couple of days been "all over B&B like a rash" to assure itself that the bank's depositors have nothing to fear, according to a banker. He added that its balance sheet was not particularly weak, even without the injection of new capital. B&B's problem is that the housing market downturn has knocked the profits it makes from providing buy-to-let mortgages. "It has a trading problem, not a funding problem", said a banker. from comments :- Yes it does seem that the game is hotting up. As the banking sector shrinks it squeals and squeaks. He added that the outlook for buy-to-lets was uncertain, which is why it makes sense for B&B to raise additional capital.

Posted by malct @ 07:34 AM 6 Comments

Property - High Anxiety will be broadcast at 2030 on BBC1, Monday 2 June

BBC News: Unrealistic home dreams 'common'

"The Panorama survey suggested a split of opinion over falling house prices. Some 52% of those questioned said they wanted prices to keep going down. But the opinion of homeowners differed. The majority - 81% - said they want prices to keep rising, in order to keep earning them money. However, when people were asked what they thought would happen in the coming year the general view was clearer. Some 15% still thought house prices would rise. But 78% believed they would either stay the same, or the ongoing fall would continue."

Posted by doom&gloom @ 06:45 AM 3 Comments

Possible Rights Failure - Part 2

telegraph: Steven Crawshaw's departure from Bradford & Bingley taints banks' rights issues

The ramifications are both several and severe, potentially giving Bradford & Bingley the dubious honour of being one of the first British companies in two decades to have a major rights issue fail. Interestingly this article contains a link to " Bradford & Bingley chief must go to restore trust after rights denial" reported in http://www.housepricecrash.co.uk/newsblog/2008/05/blog-bradford-bungle-13306.php which says at the end "I have lodged an official complaint with the Financial Services Authority (FSA) over B&B's conduct and requested an investigation into whether the company created a false market in its shares as a result of its denial. I'll keep you updated."

Posted by mken @ 04:48 AM 0 Comments

A nasty post mortem of modern banking

Guardian: The gods of greed

It goes without saying that those responsible for the speculative bubble of early 2007 could not conceive that one day it would burst. That was where the arrogance kicked in. The super-heroes of the New Olympian order were the brightest and the best of their generation. Their activities were making massive profits, a good chunk of which were being paid out in seven-figure bonuses that kept property markets humming in the Cotswolds and the Hamptons. Could they really be guilty of crass stupidity? Even when cracks did start to appear, the New Olympian class managed to blame everyone but themselves.

Posted by quiet guy @ 02:18 AM 12 Comments

Sunday, June 1, 2008

The GDP of Manchester is apparently higher than Beijing ... by 25 % ...

FT.com: Manchester needs to adopt a global outlook

If that is the case then that is the last time i look at GDP to tell me anything of any use whatever.

Posted by whiteknight @ 11:28 PM 12 Comments

B&B update - depending on how the press handle this we might see another run Northern Rock style

BBC: Equity house to take stake in B&B

One of the world's largest private equity houses, Texas Pacific Group, is to take a stake of about 20% in Bradford & Bingley (B&B). The move is to shore up the finances of the UK buy-to-let mortgage lender. About 150m of funds would be injected into B&B, with existing stakeholders asked to provide 250m of new capital.

Posted by jack c @ 10:49 PM 16 Comments

Rosie Millard is broke!

MacIntyre: I'm forever indebted to my lovely wife Rosie Millard

The BTL goddess is on the brink, word of her lovely husband. " I like this article more because The Guardian reckons our credit card debt is now only pounds 20,000" "There's a threatening letter from our French bank. There are insufficient funds in Rosie's bank to pay the mortgage on the French flat: the letter says Rosie may be banned from using her cheque book for five years if she doesn't immediately send funds" read blog at http://community.channel4.com/eve/forums/a/tpc/f/6026044741/m/5780092881

Posted by confused76 @ 08:12 PM 7 Comments

Sentiment gets the blame as usual....not tight fisted banks or high prices!

Orange News: House prices fall at record pace

Fears of a housing slowdown on a scale not seen since the early 1990s are being fuelled. The fall wipes nearly 5,000 off the price of the average house and is the biggest monthly fall ever seen in the 17-year history of the Nationwide building society's index

Posted by rental john @ 07:33 PM 0 Comments

Change vultures for 'outpriced/ held over a barrel FTB's etc. etc.

Timesonline: Vultures ready to swoop on properties as prices drop

"the poor vendors are down on the ground, clinging onto their details and boards with white knuckles, gritting their teeth and hoping that neither they nor anyone else in a street near them will start slashing prices." Oh dear, Oh dear Rosie, you talked the market up from your priviliged position of "journalist" (I use the term very losely), and now you are going to slag of anyone who may be in the position to buy themselves, and their families, a home that was previously 'out of their reach'. Have you sold your BTL's yet????

Posted by bystander @ 07:14 PM 18 Comments

Crock of sh#t

The Times: Lib Dem call for action against Northern Rock

VINCE CABLE, the Liberal Democrats Treasury spokesman, has called on the government to launch legal action against the former directors of Northern Rock, over allegations that they misled taxpayers. You have to ask yourself if other lenders have been playing similar games of chance?

Posted by rental john @ 07:14 PM 0 Comments

Profit warnings to add to housing woes.

Times online: From The Sunday TimesJune 1, 2008

The resignation of the CE from BB is just the start of worse things to come from the UK economy. Whether it be builders or retailers all sectors are suffering and as the profit warnings mount up more downward pressure will be put on the housing stock. The news from BB is a bad omen they have around 20% of the buy to let mortgage market.

Posted by doomberger @ 07:00 PM 0 Comments

Credit Crunch Bulgaria

Hiday.net: BEHIND BULGARIA'S PROPERTY MARKET

Will Bulgaria suffer the same fate as countries like the UK and USA in a few years time?

Posted by john84 @ 06:55 PM 0 Comments

There goes the bid on that penthouse!

FT: Banks shut the door on 1m-plus mortgages

Multi-million pound mortgages from high street lenders are heading for extinction, mortgage brokers said yesterday, as banks impose tough new limits on how much they will lend, or charge steep arrangement fees of up to 40,000. Not that the average, or below average, Joe need worry, but if you read between the lines there could be a knock on effect lower down the scale. About time Channel 4 started making 'Property Slide'.

Posted by rental john @ 06:51 PM 0 Comments

Will the UK see similar as EAs' sales backlog reaches saturation?

Property Wire: Real estate agents turning away business in hard hit US market

Real estate agents in the US are turning away sellers in some areas because there are simply too many properties on the market. The most extreme case is in Stockton, California, about 85 miles east of San Francisco where it is estimated that three out of every four homes are in or on their way to foreclosure.

Posted by rental john @ 06:35 PM 0 Comments

Paul Daniels has nothing on these guys!

Telegraph: Banks' credit crisis solutions have echoes of 1929 Depression

To free their books of the estimated $1,000bn (505bn) of sub-prime assets and $340bn of leveraged loans banks have been left carrying since the credit markets shut down last year, lenders are offering to sell these damaged assets cut-price and - crucially - are willing to lend investors the money to buy them. In other words, the banks are providing new debt for the old debt they no longer want.

Posted by rental john @ 06:28 PM 0 Comments

Response to poster James from October 19th 2007

Wall Street Journal: Trader Made Billions on Subprime

James, this chap Paulson put shorts on the ABX (subprime) from 2006 onwards. He made $15billion for himself and his clients. His trades were not dissimilar to ones I had suggested to my hedge fund (and added to that my oil trades would have been profitable too, AND my currency basket trades). Half way through, he was severely "out the money" and he had to fund the positions all the time. Was he right? (Click on image)

Posted by lvmreader @ 05:22 PM 6 Comments

Flashback: LVMReader predictions on banks to get hit

House Price Crash: Clients Ignore Northern Rock's Plea (Sep 14th 2007)

Friday, September 14, 2007 03:57PM 28. lvmreader said... LVMReader's predictions of next "bad news" UK: Alliance & Leicester Bradford & Bingley Barclays Halifax US: Goldman Bear Citigroup Lehman CDS is a great way to express a view. Get quotes on the CDS (insurance costs of the bonds) on all these firms: Black Swans: UK Natwest LLoyds US JP Morgan

Posted by lvmreader @ 05:09 PM 1 Comments

Flashback: Does this sound like a man who knows something the rest of us don't

Independent: Alliance & Leicester chief in surprise exit as profits rise (Feb 2007)

We saw it coming years ago. This current situation is only a surprise to the criminally insane.

Posted by lvmreader @ 05:06 PM 0 Comments

No boom and bust in Germany

Observer: How broke Britain could benefit from German lessons

An interesting article about Germany, which has managed to do what Gordon Brown wanted - but spectacularly failed - to do. And how has Germany avoided the UK economic shambles? By careful investment, cutting costs, saving money and producing quality stuff that people find worth buying. Hmm, complicated. Could it happen here? Note especially the comments about the difference between German banking and the charlatans in this country.

Posted by letthemfall @ 03:57 PM 8 Comments

BTL is in rude health!

ThisIsMoney: Bradford & Bingley bullish over buy-to-let

B&B said: "We remain confident about the demand for buy-to-let mortgages. The strong fundamentals which have underpinned the growth in this market remain. "Rental levels are rising, landlords continue to add to their property portfolios and uncertainty in the housing market should drive further demand."

Posted by confused76 @ 03:00 PM 5 Comments

Graceful exit?

BBC News: Bradford & Bingley chief resigns

Bradford & Bingley has announced that its boss has quit the firm "due to a serious cardiovascular condition". Chief executive Stephen Crawshaw is leaving with immediate effect and chairman Rod Kent will replace Mr Crawshaw in the short-term.

Posted by crutchley @ 12:49 PM 69 Comments

More Potential Fuel on the House Price Bonfire

Times: Second home sales may worsen house price drop

A Capital Economics Report indicates that one in four second-homeowners could sell up in the current downturn, prompting even more dramatic house-price falls, until now many commentators had thought buy-to-let could be the weak point that topples the market.

Posted by enuii @ 10:24 AM 17 Comments

Possible failure of Rights Issue?

Observer: Know your rights, as B&B goes begging

"Cast your mind back to December 2000. That was the month that Bradford & Bingley floated on the stock market, triggering windfall payments to almost 2.7 million members - many of whom were "carpetbaggers" who had signed up with the building society purely in the hope of making some easy money." The issues is priced at 82p and the share prices is heading that way (surely not managers unloading their shares?) so the market is saying the shares are worth maybe even less than the rights issue price - in which case no one would take up the rights issues and the Investment Bank Underwriters are left holding the baby. Leading to ... a seize up of rights issues ...

Posted by mken @ 09:42 AM 8 Comments

Buy "40% below market value"!

Times: House auction angst: going, going - not gone

at the auction held on May 15 only 14 of the 46 residential lots offered (30 per cent) sold successfully. an investor buying a property at the reserve price could be paying up to 40 per cent below an estate agent's price. mmm... so what is the real market value?

Posted by confused76 @ 09:21 AM 13 Comments

Bye bye Interest Only

guardian: Negative equity hits 250,000 - and there is worse to comeHeather Stewart and Lisa Bachelor The Observer, Sunday June 1 2008 Article history

Lenders are also shutting their doors to borrowers who want to take out mortgages on an interest-only basis. These loans have become increasingly attractive to borrowers trying to keep their bills down. Payments can be as much as 280 a month cheaper on a typical 150,000 mortgage. But on Friday Egg stopped offering the loans altogether, citing 'market conditions', and Abbey has said it will no longer lend to people who have less than a 50 per cent deposit unless they can prove how they will pay off the capital.

Posted by hogwash @ 09:18 AM 3 Comments

Finally media start to admit that "investment" properties are the real timebomb

Times: Second home sales may worsen house price drop

... but of course no, not the sacred cow BTL. "The southwest is likely to be the hardest hit because it has the highest proportion of second homes. There is already evidence that second homeowners are putting their homes on the market, but are having to let instead because there are so few buyers" that means letting oversupply and rental crash

Posted by confused76 @ 09:13 AM 2 Comments

Crocodile tears from The Times

The Times: House prices drop but getting on the property ladder is still difficult

First-time buyers have been among the worst casualties of rapidly rising house prices and stretched affordability levels in recent years. Now the house-price tide has started to turn, many will be hoping values are about to fall to a level at which they can finally get their foot on the first rung of the ladder. Lets not get too carried away, however: its true prices have fallen over the past eight months, but average values are simply returning to the levels seen in February last year. The reality is that there is still a long way to go before getting on the ladder becomes truly affordable again.

Posted by quiet guy @ 09:03 AM 2 Comments

Last gasp

Guardian: Crunch-hit consumers turning to store cards

Shoppers are relying on store cards or reverting to cash as they try to keep their heads above water, says Debenhams chief executive Rob Templeman. "'There is a definite trend away from credit cards, and my suspicion is customers are using them to pay their everyday bills.'

Posted by little professor @ 01:11 AM 0 Comments

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