October 2011 Archive

Sunday, October 30, 2011

Time to start planting turnips

Bloomberg: Credit-Default Swap Risk Bomb Is Wired to Explode: Mark Buchanan

Ticking debt bomb is close to exploding

Posted by stuartking @ 11:51 PM 0 Comments

Fan and brown stuff in near collison course

The Peninsular: Chinese city triggers debt crisis alarm

Alarming news from China, as the global debt crisis bites their bums. What this will mean for lending and UK property prices down the line isn't tackled in this article, but I suspect it won't be pretty

Posted by stuartking @ 11:46 PM 3 Comments

Trying to tax people who aren't used to paying tax

Guardian: Greeks threatened with power cuts if they fail to pay property tax

The Greek authorities are bracing for a broader campaign of civil disobedience as a nation infuriated by austerity and incensed at the engagement of EU and IMF "monitors" takes matters into its own hands. Sales of generators have shot up as households, resisting further belt-tightening, have sought to bypass a new property tax that the beleaguered government will collect through electricity bills. Announcing the measure in a desperate attempt to plug a budget black hole, the finance ministry warned that failure to pay the tax would automatically result in power supplies being disconnected. "But when 70% of Greek households don't pay it what are they going to do, cut off the whole lot?"

Posted by drewster @ 08:45 PM 2 Comments

Two-speed housing market as well

Telegraph: Britain has become a two-speed country

But what is increasingly evident – and will not be seen in Tuesday's numbers, as the Office for National Statistics (ONS) does not provide a quarterly breakdown of regional productivity – is that the UK economy is fast diverging, with London and the south-east operating at a faster pace than the rest of the UK. Data compiled by MoneyExpert.com shows unemployment in August in the south east, including London, at 4.3pc, compared with 7.3pc in Northern Ireland and 7pc in the North East. London and the South East are best placed to recover due to the concentration of high-end professionals.

Posted by drewster @ 06:29 PM 3 Comments

All spent already, gone is misleading

Telegraph: UK business pensions deficit hits record of £295bn

"The truth is, companies, the Government, and the regulator need to understand that we have simply made promises we cannot honour. Someone has to lose out, either the company's shareholders, or the members, or maybe both. There's just not enough money in the system – and that is only getting worse. Not even if the pensionable age becomes 75." I am posting this to further the idea that pensions have already been spent principally to lower and hide the tax rate required to balance the books under New Labour.

Posted by stillthinking @ 01:38 PM 3 Comments

Not before time, if it happens

BBC: Pickles to allow second home council tax discount cut

"Owners of second homes in England could lose council tax discounts, under new plans to be announced by Communities Secretary Eric Pickles on Monday. Councils would have the power to reduce or remove council tax relief on second homes and empty homes. Second homes currently receive up to 50% discount. The money would be used to keep overall council tax bills down, he is to say."

Posted by phdinbubbles @ 10:46 AM 13 Comments

Second Home Council Tax Discount to be axed?

BBC News: Pickles to allow second home council tax discount cut

Eric Pickles is looking to allow councils to remove or reduce the council tax relief on second homes.

Posted by nick mac @ 03:53 AM 0 Comments

Saturday, October 29, 2011

Unintended consequences

Business Insider: CITI: Failure To Trigger Greek CDS Could Cause The Whole Euro Bailout To Fall Apart

There's an ongoing debate about whether or not credit default swaps (CDS) on Greek debt will be triggered in the event of the proposed 50% writedown. The crux of the debate seems to rely on whether or not the writedown is "voluntary." However, Citigroup's Willem Buiter thinks failure to trigger these CDS would be catastrophic ... Market participants (pension funds, insurance companies, banks, asset managers and hedge funds) that have bought CDS as insurance against Greek default would be denied the pay-out on their insurance policies. The response might well be a rush to unload the underlying assets of these Euro Area CDS, the sovereign debt of all vulnerable Euro Area member states.

Posted by quiet guy @ 05:18 PM 6 Comments

Guardian now nicking it's journalism from Zerohedge

Guardian: Euro bailout - an animated explanation

Are you confused about what the Euro bailout actually is? So were we! Tom Meltzer tries to explain with the help of his animated friends …

Posted by general congreve @ 01:16 PM 8 Comments

I'll have a pint of what he's been drinking

About Property: Buy-to-let boom covers cracks in mortgage market

Jon Ainge, director of property specialist ipsbmv.com, said: "There is now an unprecedented opportunity for investors to buy property at below market value and benefit from a huge uplift in rental yields which can be used to improve cashflow and bring impressive returns over the long term. "When I look at alternatives, I don't really see anything that can compete with property at the moment for a reliable return on investment." Calm down, dear

Posted by stuartking @ 11:23 AM 3 Comments

More quantitative easing to bail out housing market?

The Economist: Underwater rescue

Federal Reserve officials have hinted in recent days that they may resume large-scale purchases of mortgage-backed securities, paid for with newly printed money. That would push mortgage rates down further.

Posted by stuartking @ 11:18 AM 5 Comments

Wind blowing in the right direction

PropertyTalkLive: 'Perfect storm' looms for UK house prices

In real terms, adjusted for CPI inflation, house prices will have fallen 29% from the peak of the market by 2015 and will not regain the levels seen 2007 levels until 2028 Grainne Gilmore, head of UK residential research at Knight Frank, said: “After falling by 15% in 2008, it was widely forecast that the market would dip again the following year, but this failed to happen - largely because of the drop in interest rates. We believe that this correction is still to come..."

Posted by stuartking @ 11:08 AM 5 Comments

Friday, October 28, 2011

Hamptons downbeat about 2012 housing market

Planet Property: Hamptons downbeat about 2012 housing market

The agent predicts a 2% fall in national prices next year and, more surprisingly, says prices in the south will flatline (0%), while the London market will see a below-inflation rise of just 1%.

Posted by the planet @ 01:22 PM 0 Comments

Car dealership Lookers has reported a 10% drop

Lancashire Evening Post: Car sales hit by low confidence

The company said: “The new and used car markets continue to be affected by uncertain economic conditions and the impact this has on consumer confidence.”

Posted by mark @ 01:13 PM 0 Comments

NAEA latest housing report

Mortgagestrategy: Buyer demand climbs to four-year high in September

Buyer demand for residential property increased for the second consecutive month in September to reach a four-year high, the National Association of Estate Agents’ latest housing report reveals................Wendy Evans-Scott, president of the NAEA, says: “It is encouraging to see that the number of enquiries is increasing, but sellers need to be very realistic when pricing their property in order to secure a sale in what is still a very cautious market.

Posted by jack c @ 01:00 PM 14 Comments

-0.3% MoM -2.6% YoY

Land Registry: September Index

"The September data shows a continuation of negative monthly price change. The rate of annual change of -2.6 per cent is on a similar level to the past five months. The average property price in England and Wales is now £162,109. This compares with the same time last year when the average price stood at £166,364."

Posted by phdinbubbles @ 11:01 AM 13 Comments

Does this mean they'll start buying flats in London instead?

Mish's: Shanghai Homeowners Smash Showroom in Protest at Falling Prices; Developer Warns on Price Drops

A group of around 400 homeowners in Shanghai demonstrated publicly and damaged a showroom operated by their property developer after the company said it cut prices. Home buyers had wanted to speak with the developer to refund or cancel their contracts but were unsuccessful, according to local media. One report said the price cuts exceeded 25%. The Shanghai property-owner demonstration found little support on China’s Internet, where most still expressed worries that housing prices are too high. China's largest real estate developer believes the country's property market, a key driver for the economy, has turned and expects conditions to worsen in the coming months as sales prices volumes decline further.

Posted by drewster @ 10:58 AM 5 Comments

As expected..

Land Registry: September 2011: Monthly -0.3% Annual -2.6%

HPI News - September 2011 The September data shows that London is again the only region in England and Wales to experience an increase in its average property value over the last 12 months with a movement of +2.7 per cent. The North East experienced the greatest annual and monthly price falls of -8.2 per cent and -3.9 per cent respectively.

Posted by khards @ 10:57 AM 0 Comments

More foreclosures coming?

La times: Mortgage rates flat, Freddie Mac says, but hike may be near

But news that the U.S. economy is growing and that European leaders have reached a deal to reduce Greece's staggering debt load could push the cost of borrowing back higher.

Posted by mark @ 10:52 AM 0 Comments

The follies of Stamp Duty

BBC News: Worries over stamp duty avoidance

"Homebuyers are avoiding paying stamp duty - costing the government millions a year - as the number of websites offering tax avoidance tips grows." The folly of a transaction tax that can be avoided once the prize gets big enough. LVT anyone? Or at least a property tax...

Posted by mombers @ 10:44 AM 4 Comments

...another kind of "football"

G Pytel: Germany v "Financial Markets": the only game in town

Germany have equally very good track records in football and finance. I would definitely not bet against the Germans. "Financial Markets", good luck!

Posted by ant @ 09:12 AM 1 Comments

Thursday, October 27, 2011

It's NOT a default ok!!

Telegraph: French President Nicolas Sarkozy: 'It was an error to let Greece into the eurozone'

''"It was an error because Greece entered with false [economic] figures... it was not ready," he said during a nationally televised interview on the day European leaders clinched a deal to tackle the eurozone debt crisis.''

Posted by hpwatcher @ 10:13 PM 9 Comments

Is an export-led recovery still on the cards?

Guardian: More than 20,000 high street jobs lost

More than 20,000 high street jobs have disappeared in the past year as the downturn in consumer spending sees desperate retailers cut posts, reduce part-time workers hours and in extreme cases close stores. The retail sector had 23,000 fewer workers in September than the same month a year ago, according to grim figures published today by industry body the British Retail Consortium (BRC). The steep drop contributed to a 0.8% fall – the equivalent of 5,780 full time retail jobs – for the third quarter as expansion by the big supermarket chains picked up some of the slack. "With consumer spending now in recession and retail sales volumes declining, this is the biggest drop in overall retail employment in the two years since we began this survey," said BRC director Stephen Robertson.

Posted by sibley's b'stard child @ 02:52 PM 12 Comments


BBC: Bank of Japan increases stimulus and keeps rates low

The Bank of Japan (BOJ) has expanded its asset purchase programme by 5tn yen ($66bn; £41bn) in a bid to boost growth. The move comes amid concerns that the European debt crisis coupled with a strong yen may hurt Japan's post-quake recovery. The BOJ also left rates unchanged at between zero and 0.1%.

Posted by mark @ 02:03 PM 4 Comments

Reward the large investors with cheap property

Reuters: Investors show interest in foreclosure plan

Officials want private partners to take over as much as $30 billion in single-family properties that are currently on the books of government-run Fannie Mae, Freddie Mac and the Federal Housing Administration.

Posted by mark @ 11:26 AM 0 Comments

Sir Mervyn King: Deal 'will only give year or two of breathing space'

Daily mail: One TRILLION euro deal hammered out (with a 50% Greek debt 'haircut' for banks

They also approved a complex mechanism for 'leveraging' the existing bailout fund (the European Financial Stability Facility) to one trillion euros to boost its fire-power.

Posted by mark @ 11:11 AM 15 Comments

Contracttion of credit = not as rich as we first thought

Telegraph: Graphic: Lowest disposable income growth in 30 years

Figures from the Office of National Statistics show that households' disposable income grew by only 0.1 per cent last year - the worst year since the recession of 1982 when incomes contracted by 0.1 per cent. The ONS described growth in disposable income as "subdued" even when compared to the modest 1.4 per cent recorded between 2004 and 2007. The report concluded: "Besides the sense of job insecurity that goes with a weak labour market, households have also been affected by modest growth in earnings, reduced access to borrowing and falls in house prices and equity markets, compounded by the effect of high inflation which has eroded the real spending power of their incomes."

Posted by sibley's b'stard child @ 10:31 AM 1 Comments

Some parts of the uk already in freefall

Rightmove: Lets all move to burnley

wonder how many bought buy to lets on the internet in these sorts of areas?for WAY over the top prices. thing is though for home workers who used to move to cornwall and devon 'cos it was cheap,maybe they should move to burnley

Posted by taffee @ 10:28 AM 12 Comments



"A ST PAUL’S protester got a rare insight into what it’s like to have a demo on his own doorstep yesterday – when a Daily Express reporter camped out on his front garden. Our man Matt Wilkinson pitched a tent on the lawn of Robin Smith, a former Tory councillor who admits to protesting outside the historic Cathedral only on a part-time basis. This, presumably, leaves the anti-capitalist campaigner plenty of time to enjoy his large detached home in affluent ­Wokingham, Berkshire, if he so wishes." I personally know Robin Smith very well, and he is as far from anti-capitalist as you can get, but he is campaigning to get rid of taxes on income, output and profits and shift them to taxes on land values, so the Homeys will tar him with any old brush.

Posted by mark wadsworth @ 10:17 AM 3 Comments

...or a diary cow of Eurozone and banks

G Pytel: Germany Euro Abfahrt?

Greece, now Italy. Not many focus what Germans are really going to do. And Germans are not mugs. They may actually go for a big one: Euro exit.

Posted by ant @ 12:45 AM 18 Comments

Wednesday, October 26, 2011

The eBay listing ends on 26 October at 8.27pm

Wrexham: Marek Puts Historic Brewery Chimney On eBay

Fancy owning a genuine piece of Wrexham history? Well, this week former Wrexham AM and MP Dr John Marek has put the iconic Victorian brewery chimney based on Tuttle Street up for sale on eBay. Dr Marek bought the grade II-listed landmark 20 years ago to prevent it from being demolished but recently decided to pass it on. Having failed to find someone to give the 120ft chimney to locally Dr Marek has now decided to put it up for sale on eBay with a modest starting price of 99p.

Posted by mark @ 03:06 PM 16 Comments

Reverse Suburbinisation.

The Atlantic: The Next Slum?

Since the 1950's Americans have moved from city centres to the suburbs. Now they're moving back.

Posted by fofp @ 02:59 PM 0 Comments

Soho Estates Focuses on Prime Property

Hurford Salvi Carr: Soho Estates Focuses on Prime Property

City and West End agent, Hurford Salvi Carr has acquired the freehold of 64 Dean Street on behalf of Soho Estates Holdings to be incorporated into their existing portfolio. Soho Estates is the property company started by the late Paul Raymond. Mr Raymond often said that he would only buy properties that he could walk to, and he could certainly have walked to this property which is on the corner of Bourchier Street and close to the junction with Old Compton Street.

Posted by shanaka thanapathy @ 02:20 PM 0 Comments

As a result, Japan saw house prices fall by 70pc from the peak in 1992. Is this what Britain should

Yahoo: Are we heading for Japanese style stagnation?

Huge debts, near zero interest rates the similarities are eerily similar. Can we escape? The British economy is turning Japanese as we face losing an entire decade to recession. According to leading economists, consumers will have to battle Japanese-style low interest rates, stunted economic growth, market volatility and inflation for many more years to come.

Posted by mark @ 01:53 PM 9 Comments

Growth gone in a flash!

Reuters: October factory orders suffer biggest drop in a year - CBI

Factory orders fell at their fastest pace in a year in October and firms expected to cut output as worries about the euro zone debt crisis weighed on sentiment, the CBI's October industrial trends survey showed on Wednesday. The Confederation of British Industry survey's total order book balance fell to -18 this month from -9 in September, the lowest since October 2010 and confounding expectations for a steady reading of -9.

Posted by general congreve @ 01:03 PM 0 Comments

The steps on the ladder get wider

Daily Mail: Housing gap at ‘record levels’ as foreign investors boost asking prices for prime properties

The 'wealth gap' between asking prices for high-end properties and typical UK houses has reached record levels, a survey found today. Foreign investors have boosted sales at the top of the market, while at the other end first-time buyers have struggled to get on the ladder. A monthly index said that the average asking price for prime properties - those in the top quarter of the market by value - is £472,340, some £250,000 more than the general average asking price. Property at the lower end of the market has had a difficult time due to challenging conditions for first-time buyers while the top end, particularly in and around London, has continued to increase. Part of this is due to the significance of foreign investment in the UK prime market.

Posted by drewster @ 12:19 PM 14 Comments

He said. "People are beginning to see Ireland a recovery story ... (but) it's a slow burn." HUH!!

Yahoo: Foreign banks are dumping Irish assets - NAMA

Foreign-owned banks are dumping some of their Irish assets, the head of the country's state-run property fund said on Wednesday.

Posted by mark @ 12:00 PM 0 Comments

OFT challenge the 'but I need to sell it at x because I owe y' crowd.

Estate Agent Today: Agents prompted over OFT consultation that could make over-valuing illegal

Agents are reminded that an ongoing and important consultation into the future conduct of the industry is still open for responses. In particular, the OFT draft guidance could, if accepted, make over-valuing to win an instruction a breach. Omitting information about a property in details could also be a breach, even if the agent did not know about, for example, a public footpath, but could have found out. The guidance also covers advertising and flyers. The OFT’s guidance focuses on two pieces of law, the Consumer Protection from Unfair Trading Regulations, and the Business Protection from Misleading Marketing Regulations 2008.

Posted by sibley's b'stard child @ 11:12 AM 8 Comments

Will affect around 77,000 customers with ordinary residential mortgages, as well as 98,000 BTL

Daily mail: Bank of Scotland and The Mortgage Business raises SVR for 175,000 borrowers

Homeowners with the Bank of Scotland and The Mortgage Business (TMB) will see their home loan payments increase next month. The banks’ standard variable rate (SVR) is increasing from *4.84 per cent to 4.95 per cent on November 1. Someone with a £150,000 mortgage would go from paying £863 to £873 a month — an increase of £10.

Posted by mark @ 10:33 AM 18 Comments

Well done Merv. Xmas cards from your banker chums this year.

Mail: Families are £15 a week worse off than this time last year: 'It's the biggest squeeze in living memory,' says King

.Cost of living squeeze is said to be the longest and deepest for at least 60 years .Average weekly household income after tax at £597 .King: CPI inflation rate of 5.2% 'very uncomfortable' The annual drop in spending power of £780 from taxed income, according to the monthly Asda Income Tracker. Yesterday the governor of the Bank of England, Sir Mervyn King, said workers in Britain have been hit by the biggest fall in living standards ‘in living memory’. The £15 drop in weekly spending power is the biggest in the four-year history of the study, while the current cost of living squeeze is said to be the longest and deepest for at least 60 years

Posted by khards @ 09:51 AM 28 Comments

Zerohedge reporting? No. Bloomberg.

Bloomberg: Eurozone ‘Collapsed,’ Euro Will Disappear, FinansInvest CEO Says

The eurozone has “already collapsed” and will vanish as the region is on the brink of a banking crisis that will destroy the currency, said Zafer Onat, the chief executive of FinansInvest, a Turkish broker owned by National Bank of Greece SA. (ETE). “I believe that the European monetary union doesn’t exist anymore,” Onat said in an interview in Istanbul today. “I think it already collapsed but no one has said it yet. Now we are in a deadlock. One of the world’s major reserve currencies will disappear.”

Posted by general congreve @ 01:25 AM 2 Comments

Tuesday, October 25, 2011

More realism

Bloomberg: U.K. Home Prices to Plunge Most Since 2008 Slump, Knight Frank Predicts

Bloomerg reporting Knight Frank saying house prices set to fall five per cent next year and growth won't return until 2014 (at the earliest, I would have thought). London market only boosted by overseas buyers taking advantage of 20-plus per cent devaluation of Sterling.

Posted by stuartking @ 07:26 PM 16 Comments

They think its all over.... One for UT

FT Brussels blog: Sign Wednesday’s summit could fall short?

UPDATE: European diplomat confirms meeting of 27 EU finance ministers has been cancelled. ... or has it?

Posted by techieman @ 02:49 PM 4 Comments

How to make money in the commercial property market

MoneyWeek: How to make money in the commercial property market

After a grim few years there are signs of life in Britain's commercial property market, says David Stevenson. But can they be trusted and what's the best way to profit from the sector?

Posted by martingreen @ 02:23 PM 2 Comments

The Bigger your house the more denial you need to sleep at night

Big Picture: Dead dollars don't bounce

On a scale of 1 to 10 as to how cooked things are, this goes to 11. Articulate, well reasearched and incredibly thought provoking. Also the closest I've come to being AU convert.

Posted by bellwether @ 02:21 PM 23 Comments

Now figures are coming out a month ahead just like magazines are published a month ahead strange huh

Yahoo: German consumer morale unexpectedly rises in November

The forward-looking index of consumer morale, based on a survey of 2,000 Germans, rose to 5.3 from a reading of 5.2 in the previous month. This beat a forecast in a Reuters poll of economists for a fall to 5.1.

Posted by mark @ 01:05 PM 2 Comments

Increased rents drive students east

Hurford Salvi Carr: Increased rents drive students east

Hurford Salvi Carr’s Docklands office has seen an unprecedented demand for accommodation from student tenants this year; a 70% increase in comparison to previous years. In contrast, Hurford Salvi Carr’s City and West End offices have reported the opposite; both have stated that their respective student markets have fallen by nearly 50%. This trend is a result of two major factors: Rental prices in the City and West End have increased by 15% in the last 18 months, effectively pricing students out of the area. Additionally, due to the global economic uncertainty many foreign students have curtailed their budgets, forcing them to source properties in areas not previously considered.

Posted by shanaka thanapathy @ 12:52 PM 2 Comments

More lunacy in the housing bubble

Citywire: New savings scheme linked to houseprice rises

I think I'll go to corals(where andy hornby is ceo) and place a bet for the title of the next mis-selling scheme

Posted by taffee @ 12:48 PM 7 Comments

So this is what it takes to force people to grips with reality. We're a long way off then!

BBC: Eurozone financial crisis: Winners and losers

Mr Perrotis has recently secured a prime retail location in central Athens for the sportswear giant Nike. The rent is barely half what it used to be. The owners of the buildings were initially reluctant to accept so large a drop in rent, he says. "But now they have come to grips with reality."

Posted by peter_2008 @ 12:46 PM 1 Comments

Dreaming floating on the clouds

Reuters: Heron Seeking Record City Prices for Apartments in 36-Story London Tower

Heron International will seek what it says are the highest residential property prices ever charged in the City of London financial district in a 36-story building that’s due to be completed in 2013. Homes in the Heron, the tallest apartment tower to be built in the City since 1976, will be offered for about 1,600 pounds ($2,557) a square foot, according to Lisa Ronson, the U.K. developer’s commercial director. That’s more than double the average price in London,

Posted by mark @ 11:33 AM 2 Comments

It has three doctors, four nurses and serves around 4,000 patients HUH they cant pay the rent????

Liverpool daily post: Landlord locks patients and staff out of Wirral surgery

DOCTORS’ surgery staff were left operating from car boots opposite their Merseyside practice after being locked out in a row over unpaid rent.

Posted by mark @ 11:08 AM 1 Comments

Wot Jack and Drewster said...

Independent: Lengthy fixed rates 'will not bring stability'

Grant Shapps, the Housing Minister, has been criticised for trying to persuade lenders to offer long-term fixed-rate mortgages when evidence suggest borrowers fear them. On Thursday, speaking to building society chiefs, Shapps called on lenders to offer 30-year fixed-rate loans to give borrowers certainty and to encourage more investors to offer loans. It would in turn, he claimed, boost the first-time buyer market. But Melanie Bien, mortgage expert at advisers Private Finance, is doubtful. "Politicians argue that longer-term fixes give stability to borrowers and the housing market but when borrowers do opt for fixes they prefer two, three or five-year deals. Fix for longer and you usually incur a hefty early repayment charge which could run into thousands of pounds."

Posted by sibley's b'stard child @ 10:34 AM 3 Comments

Never went away.....

Telegraph: Britain at risk of falling back into recession

''Martin Weale, one of the members of the Bank’s Monetary Policy Committee, which sets interest rates, said that the crisis in the eurozone threatened to undermine the economic recovery in Britain. He indicated that British politicians were “having trouble getting to grips” with how to tackle the crisis.''

Posted by hpwatcher @ 09:55 AM 3 Comments

Get clicking the arrows

BBC: Eight radical solutions to the housing crisis

"Pressure to address the UK's housing crisis grows ever stronger, with a number of radical solutions being put forward to ease the strain."

Posted by phdinbubbles @ 09:36 AM 13 Comments

Another nail !

Mail: Households 'gripped in a vice' as wave of pessimism sweeps over families' finances Read more: http://www.thisismoney.co.uk/money/news/article-2052597/Households-gripped-vice-outlook-finances-hits-worse-level-months.html#ixzz1blz5ifUi

A further Markit report, conducted with estate agents Knight Frank, showed that confidence in the housing market is also low. UK house prices were perceived to have fallen for the 16th consecutive month in October, at a much sharper rate than in September, despite most major surveys showing a mixed pattern of monthly rises and falls this year.

Posted by happy mondays @ 07:40 AM 0 Comments

Monday, October 24, 2011

A lot of house for the money

MSN: Home Alone House For Sale

I have no idea about the location etc but on Sandbanks Poole this would be ten times the price (and would probably immediately be demolished to build flats)

Posted by tenyearstogetmymoneyback @ 11:42 PM 1 Comments

Another Home-Owner-Ist Milestone

Daily Mail: Millions may still have a mortgage in their 70s as we buy first homes later

"Millions are at risk of becoming ‘OAP mortgagees’ as they buy their first homes later in life. Many are being forced to rent for much longer than intended because of job insecurity and a credit drought. Banks and building societies are also demanding large deposits before approving loans. As a result, more than a quarter of private tenants currently seeking to buy are now in their 40s. If they do manage to get on the property ladder, they will be faced with either paying off their mortgage faster than the 25-year norm, or being lumbered with repayments well into their 70s."

Posted by mark wadsworth @ 10:29 AM 22 Comments

Capital ramping pays dividends for prime-London EAs

Estate Agent Today: Knight Frank partners share £73m bonus pot

Knight Frank staff shared a bonus pool of nearly £73m after boosting turnover and profits in the last financial year. The upmarket global agents have reported group turnover up 7% to £308.4m, and pre-tax profits up 10% to £101.9m. Nick Thomlinson, senior partner and chairman of the Knight Frank Group, said: “I am pleased to report continuing strong performance across the group, with all regions delivering profits in variable trading conditions. “In the UK, our residential business once again out-performed the market.”

Posted by sibley's b'stard child @ 09:58 AM 1 Comments

We've run out of money

Mortgage Introducer: Consumers’ recession is getting worse

Summary... I think the headline says it all but it's nice the industry that spawned the house price bubble is, belatedly, recognising it. Anecdote tonight: young villager took up job in London has retured because the rent she was paying left her nothing to live on. Parents subsided her for a while but that became unsustainable.

Posted by stuartking @ 12:39 AM 6 Comments

Too little, too late

Bloomberg: EU Rules Out ECB Help in Boosting Fund, Seeks Stronger IMF Role

Usual compromise from the EU which will leave everyone counting to cost. My view is those people who thought property would provide them with a comfortable retirement are in for a rude awakening. The collapse of confidence, jobs and incomes - together with the fall in asset prices - appears to be inevitable.

Posted by stuartking @ 12:13 AM 0 Comments

Sunday, October 23, 2011

A bleak view of the housing market

Markit Economics: House Price Sentiment Index

• UK house prices are perceived to have fallen for the 16th consecutive month in October, at a much sharper rate than in September • Expectations for house price growth over the next year turned negative this month, with homeowners at their gloomiest about the outlook for prices since May • Households with incomes of between £15,000 and £23,000 expect the biggest falls in prices over the next year, while those earning more than £58,000 expect prices to rise modestly

Posted by quiet guy @ 12:20 PM 4 Comments

Holiday homes for the Occupy Wall Street protestors

Bloomberg: Santander in Talks to Sell Spanish Properties

Banco Santander SA (SAN) is in talks to sell 12,000 Spanish apartments it repossessed to Wall Street funds, the Sunday Times reported. Cerberus Capital Management LP and Goldman Sachs Group Inc. (GS) are bidding against a Morgan Stanley (MS) fund, according to the report, which cited unidentified sources close to the talks. Santander still has about 6 billion euros of property to sell, according to the newspaper.

Posted by blinktoofast @ 10:53 AM 4 Comments

... or temporary reprieve

G Pytel: Financial apocalypse now

Well, good analysis what thinking is likely to be going behind the scene during negotiations in Brussels. But the financial meltdown is really inevitable.

Posted by ant @ 09:44 AM 3 Comments

Lost for words!

FT: Blair works on makeover for Kazakhstan

Tony to offer advice on image and economic reform! He is working with other prominent New Labour figures, including Alastair Campbell, his former spin doctor! Just what is Tony going to say? I don't do economics but for 10mln quid I will give your Gordon's phone number!

Posted by who stole my pension? @ 03:32 AM 3 Comments

Do we have any leaders?

The Telegraph: Europe's leaders threaten Greek default if banks won't take haircut and accept losses of £120bn

Europe's leaders are threatening to trigger a formal default on Greek debt and risk a “credit event” if banks refuse to accept losses of up to €140bn (£120bn, 50% haircut) on their holdings. Hardline eurozone members, backed by the International Monetary Fund (IMF), delivered the ultimatum this weekend after an official report found that in a worst-case scenario Greece could need a second bail-out of €450bn – twice the current package and more than the entire €440bn in the eurozone’s rescue fund.

Posted by who stole my pension? @ 03:25 AM 8 Comments

Saturday, October 22, 2011

The FT sees storm clouds gathering

FT: Gloom over prices on the home front

Unusally balanced piece in "the Pink 'un" with some solid quotes and qualified research. Well worth a read.

Posted by charles lister @ 04:12 PM 0 Comments

So much for 'austerity' Britain

Gold Made Simple: UK Debt reaches new record

Article does not mention gold.... so perhaps it can stay. Britain heading for a 'fiscal train wreck' as Government debt increases by 16 per cent in the past year - including bail-outs, it now stands at almost 150 per cent. Total Government debt set to pass £1trillion early in the new year. Predicted 'fiscal train wreck', I suggest, will put more people out of work and further increase the speed of the downward house price spiral

Posted by stuartking @ 12:25 PM 16 Comments

Up, up, and away

Daily Mail: Rental prices rise across the board as demand grows from frustrated potential buyers

Rents in England and Wales lifted to £718 per month in September and hit record highs in six regions, according to research. With annual rental inflation at 4.3%, the average rent is £29 per calendar month higher than a year ago. However, with consumer prices inflation coming in at a hefty 5.2% this week, one small consolation is that rents are rising slower than the cost of living. [Note that housing costs, rent and mortgage payments, are included in the CPI. So if rents are only up 4.3%, food and other essentials must be rising even faster!] But despite the price rises, tenant arrears dropped to their lowest level since April 2010. Just 8.6% of rent was unpaid or late by the end of September 2011. This was down from the 10.7% of rent unpaid or late in August.

Posted by drewster @ 11:28 AM 6 Comments

UK housing - best investment?

Mail: What housing slump? Sales of £1m homes have nearly hit peak of 2007

''Sales of homes worth at least £1million have reached their highest level since the peak of the housing market four years ago, figures show. There were 3,375 sales of the properties in the first half of this year – an increase of 10 per cent on the same period in 2010. It is the largest total since the corresponding part of 2007, when there were 3,680 sales.''

Posted by hpwatcher @ 10:44 AM 7 Comments

Friday, October 21, 2011

Yeh well britain is well known for being a rip off country

Yahoo: High EU gas prices at odds with big supply surplus

The European Union's natural gas network is likely be oversupplied by over 10 percent of last year's entire consumption, infuriating customers howling with pain from price hikes. Same with electric supply too

Posted by mark @ 02:07 PM 2 Comments

Brilliant I want one

Daily mail: The breathtaking tree houses that run rings around homes back on solid ground

Most of the tree houses are complete with running water, flushing toilets and electricity. There are also special touches including hot tubs, zip lines, spiral slides, lookout towers and even an iron bridge. Although tree houses often function as workshops, studios or places for entertaining, there are some people who live their lives permanently above solid ground.

Posted by mark @ 12:00 PM 13 Comments

Sales still falling - what will happen when interest rates go up

La times: Sales of previously owned homes fall in September

"People going from a 3.5% down payment to 20%, those are sizable," said Lawrence Yun, chief economist of the Realtors group. Tougher conforming jumbo loan limit rules went into effect in October, and a separate survey of about 1,300 real estate agents in areas that experienced lower loan limits showed that 16% of buyers dropped out of the home buying process.

Posted by mark @ 11:15 AM 3 Comments

Savers: subsidising homeowners since 2009

Telegraph: Households enjoy £4bn mortgage windfall

The research found that “about 1.8m borrowers had come to the end of their initial fixed-rate period by late 2010 and reverted onto a variable rate with their lender”. It estimated that the switch was worth “roughly £4bn a year”, or “an average of around £2,600 for each borrower”. The windfall is unusual because lenders’ standard variable rates (SVRs) are typically higher than their fixed deals. However, because SVRs are tied to the Bank of England’s base rate, costs have tumbled following the emergency rate cuts in the financial crisis. Nationwide and C&G offer SVRs of 2.5pc – or two percentage points above base rate. By comparison, a two-year fixed taken out in June 2008 would have cost 6.6pc, according to the Bank of England.

Posted by sibley's b'stard child @ 09:21 AM 6 Comments

Building houses for famillies...a travesty!!!!

Northampton Chronicle and Echo: Decision to go ahead with 1,000 homes at Buckton Fields is labelled a “travesty”

This is shocking....the go ahead for building 1000 homes has been labelled a travesty, these people have to be the most selfish bunch of people I have read about. NIMBYs are anti-social.

Posted by thecountofnowhere @ 08:57 AM 6 Comments

Thursday, October 20, 2011

Why we must protect mortgage debtors

Tullett Prebon strategy note issue 25: The sound of roosting chickens

Another cheerful offering from Tullet Prebon: it argues that much of the UK's economic growth over the last decade was fuelled by private borrowing and (allegedly) unsustainable public spending. QE was ineffective and we daren't increase the deficit by increased public spending because we cannot risk rate rises indeed higher interest rates must be avoided at all costs because those arguing in favour of further economic stimulus by spending must "ask themselves quite how damaging sharp rate rises might be. For that matter, they could put the same question to the 11 million British households with mortgages." You see a key aspect of revitalising our economy is protecting mortgage borrowers from themselves. Hmm.

Posted by quiet guy @ 08:01 PM 20 Comments

Good news!

Guardian: Mortgage lending down 2% in September

Mortgage lending fell by 2% in September compared to August, and confidence in the housing market is set to fall further as a result of rising unemployment and rampant inflation, according to the Council of Mortgage Lenders (CML). It said gross lending of £12.9bn in September 2011 was 4% higher than September 2010, when lending totalled £12.4bn, and the third quarter figure of £38.6bn was 15% up on the second quarter of 2011 (£33.5bn) and 2% higher than the third quarter of 2010 (£37.9bn).

Posted by khards @ 02:34 PM 15 Comments

Some interesting comments on page

Daily mail: Blundering planners rebuked for wrongly allowing milllionaire to build monster beach hut on World Heritage Coast

Now the Local Government Ombudsman, Dr Jane Martin, has found West Dorset District Council guilty of maladministration causing injustice Council officials merely rubber-stamped businessman Simon Saunders' application to demolish a timber chalet he had bought for £235,000 on the Jurassic Coast and replace it. Blundering staff only realised that the new hut was twice the size of the original, dwarfing its neighbours, when it was half built and residents in West Bexington, Dorset, complained.

Posted by mark @ 01:29 PM 3 Comments

As of 13.15 they are GOING FOR IT!

Zerohedge: Greek RiotCam Time

It's all kicking off. Greece will be leaving the Euro sooner or later if this is how the people feel.

Posted by general congreve @ 01:21 PM 10 Comments

Politicians and NLA kid themselves about what 'generaton rent' want

Planet Property Blog: Politicians and NLA predict a move towards 'flexible' renting

But is that what ‘Generation Rent’ want? The National Landlords Association (NLA) fringe event at this year’s political party conferences expressed itself troubled by ‘the disproportionate attention given to virtually inaccessible social renting and owner occupation,’ and discussed ‘a cultural shift away from the UK obsession with home ownership towards the flexibility that renting provides’.

Posted by property addict @ 12:07 PM 0 Comments

The job losses you don't hear about on the BBC

Lancashire Evening Post: Leisure group shuts site

Workers at the group’s dealership in Coppull, near Chorley, have been told they are “likely” to be made redundant with 70 out of 76 staff expected to go. Across the group, which also trades from sites in Delamere, Cheshire and four sites in Yorkshire, it is expected 240 of the 260 workers will be made redundant.

Posted by mark @ 12:02 PM 5 Comments

Housing market stimulus - 30 year fix on your 50 year mortgage running to age 85

Mortgagestrategy: Shapps calls for 30-year fixed rate mortgages

Housing minister Grant Shapps is expected to urge lenders to offer 30-year fixed rate mortgages in his speech at the Building Societies Association conference today. Shapps is believed to want to spark a debate on longer-term fixed mortgages as a “normal and sensible choice”. Shapps will say that longer-term products will ensure “people know where they stand”, as they will give consumers greater certainty over the costs of buying a house in the long term and allow families on tight budgets to know exactly how much they will be paying for their home in the future.

Posted by jack c @ 11:32 AM 15 Comments

To hell with the young, we old people can manage fine without you...

City AM: Don’t give house room to illiberal spare-bed taxes

"The suggested alternative – trying to calculate when other people’s spare rooms are surplus to their requirements – presents a classic example of F.A. Hayek’s knowledge problem. How is the government’s spare room commissar to know what the rooms in our houses are used for, and how necessary they are? A spare bedroom can be an office, an occasional nursery when the grandchildren come over – or simply store the mementoes of a lifetime." That's typical Faux Lib smart-4rsery, he completely misquotes the IF's proposals, which were to repalce council tax with LVT, and as a matter of fact, Hayek said that LVT was quite a good tax. So there.

Posted by mark wadsworth @ 11:24 AM 4 Comments

I dont think the cuts are deep enough

Bbc: UK spending cuts have hit councils hardest, study says

Local councils have borne the brunt of UK jobs cuts over the past year, according to a report by PricewaterhouseCoopers (PwC). The accountancy firm's study was issued to mark the one year anniversary of the government's Spending Review. PwC says 240,000 fewer people worked in the public sector in the second quarter of 2011 compared with the same period the previous year

Posted by mark @ 11:02 AM 7 Comments

Is the rental market drying up?

Diary of a Benefit Scrounger (blog): The Middle Class Housing Crisis

As regular readers will know, our landlord gave us notice to leave a few weeks ago. My husband works, earning just a little less than the national average, but that is not enough in places like Sussex. An average family home costs around £200,000 + to buy and a three bedroom property rents for between £900 and £1100 per month. That is around 60% of my husband's salary. Clearly I cannot work [she has a disability], however much I would like to, so we are limited to one wage. No matter, two bedrooms would do, so we started to search the local property sites. There was nothing....

Posted by drewster @ 10:05 AM 4 Comments

One foreign investor who won't be buying UK property......

Mail: Elderly immigrant loses his life savings after he puts bag with £70,000 in luggage hold on coach trip from Heathrow to Portsmouth

''An elderly National Express passenger was today counting the cost after his £70,000 life savings were stolen from a bag left in the coach's hold. The victim, a man aged in his 80s, had stowed the black hold-all stuffed with cash into the luggage area of the coach after getting off a flight at Heathrow Airport......The man had brought the money over from his home in Thailand with a view to purchasing a property in the UK, a spokesman for Hampshire Police said.''

Posted by hpwatcher @ 09:41 AM 6 Comments

This deflation is killing us!

Market Oracle: UK Inflation Accelerates to CPI 5.2%, Bankrupt Britain's Stealth Debt Default Continues

The Bank of England has instead opted to print money as it recently announced another £75 billion of electronic money printing that the fractional reserve banking system would eventually leverage to over £1 trillion, for the primary objective for the monetization of government debt, i.e. the same policy that the Weimar republic had been engaged in on its path towards hyperinflation. UK public debt is probably being monetized at the rate of 15% per annum with approx 30% monetized to date, only the deflation fools and the vested interest academic economists cannot or choose not to realise the highly inflationary consequences of governments monetizing their debt.

Posted by general congreve @ 12:29 AM 5 Comments

Wednesday, October 19, 2011

Vampire Squid spotted at large!

Over-60 'bedroom blockers' should be exempt from paying stamp duty to encourage them to leave '

Daily Mail: Tax break for baby boomers ?

So, baby boomers who have enjoyed massive capital gains for no productive work, are now going to get tax breaks ? What next.

Posted by doomwatch @ 03:47 PM 23 Comments

Well, I for one welcome our new overlords.

Independent: Families now spend half their income on rent

Property rental costs are at their highest level ever and now account for nearly half of the average British family's monthly earnings, according to figures published today. The average rent has risen to £890 a month – 46 per cent of the typical tenant's net income. In London, rent accounts for more than three-quarters of average earnings. Landlords in the capital charge an average of £2,075 per month, while the typical household brings in £2,721 in net monthly income.

Posted by sibley's b'stard child @ 02:04 PM 9 Comments

Not house related but inflation related

Bloomberg: Sugar Shortages Extend Across Europe as Global Glut Expands

The EU, once the second-biggest sugar exporter, spent about 5.2 billion euros ($7.1 billion) since 2006 to shrink the industry after the World Trade Organization ruled it was dumping subsidized supply on world markets. At the same time, the bloc failed to scrap import duties, leaving users with the choice of either paying about 60 percent more than in the international market or shunning purchase and shuttering production. “We can’t buy sugar in the EU because there isn’t any,” said James Lambert, chief executive officer of Northallerton, England-based R&R Ice Cream Plc

Posted by mark @ 01:30 PM 2 Comments

Ha ha ha ha ha ha ha roflmao

Yahoo: Prize Offered For Eurozone Exit Strategy

A £250,000 prize has been offered to economists to come up with an exit plan for debt-laden countries to leave the eurozone to protect the continent's economies.

Posted by mark @ 01:12 PM 7 Comments

New excuse for massive QE2,3,4,5,6,7,8,9,10

Yahoo: Some Euro Countries Bankrupt, King Warns

The Governor of the Bank of England has warned that "time is running out" for the UK and global economy. Sir Mervyn King told bosses the "recovery in our trade position is at risk of stalling" because of the latest economic problems. In a speech to the Institute of Directors in Liverpool, he said the eurozone debt crisis was delaying the UK's return to economic normality. The governor explicity stated that some European countries and banks are bankrupt during the address on Tuesday night.

Posted by mark @ 11:34 AM 13 Comments

Green Shoots Of Sanity Returning

BBC News: Social housing spare rooms a luxury - welfare minister

Spare bedrooms for people in social housing are a luxury the country can no longer afford, a minister has said. Tenants with spare rooms will lose £11 a week in housing benefit under changes going through Parliament. Welfare Reform Minister Lord Freud told BBC Radio 4's You and Yours the cuts were needed as the housing benefit bill was "out of control".

Posted by rantnrave @ 11:03 AM 6 Comments

Blame the house prices now for being too low!!!

Ny times: Gloom Grips Consumers, and It May Be Home Prices

There are good reasons for gloom — incomes have declined, many people cannot find jobs, few trust the government to make things better — but as Federal Reserve chairman, Ben S. Bernanke, noted earlier this year, those problems are not sufficient to explain the depth of the funk. That has led a growing number of economists to argue that the collapse of housing prices, a defining feature of this downturn

Posted by mark @ 10:56 AM 0 Comments

Inflation: an undemocratic stealth tax

City AM: Inflation: an undemocratic stealth tax

One reason why there has not been more of public outcry is that the balance of power between savers and borrowers has changed. The former have seen their relative numbers and influence diminish; the latter have gained clout after years of bingeing on cheap money. Savers were also given a fillip when RBS and Northern Rock were bailed out; debtors now probably think it is their turn for a handout. But inflation violates contracts and property rights; it creates uncertainty and mistrust. Its costs – economic as well as moral – are far greater than its benefits. Britain needs a renewed commitment to sound money – and a new war on inflation.

Posted by warren @ 10:44 AM 0 Comments

Selfish boomers under-occupy and hoard housing.

BBC: Charity calls for help freeing up family homes

More subsides for the boomer generation at the expense of others. Older people should be encouraged to move into smaller homes to help tackle the "housing crisis", a charity says. The Intergenerational Foundation calls for tax breaks to encourage downsizing and help free up some of the estimated 25 million unused bedrooms in England. More than half of over-65s are in homes with two or more spare bedrooms, which could be used by families, says its report based on government figures. *** The campaign group also urged the government to consider replacing council tax with "a proper land tax, to reflect the social cost of occupying housing, particularly housing that is larger than one's needs". ***

Posted by khards @ 08:28 AM 16 Comments

Travellers kicked off their land to support the ponzi housing system.

Telegraph: Dale Farm eviction: live

Bailiffs move in to clear the UK's largest illegal travellers' site at Dale Farm in Essex after a 10-year legal battle and a series of last-minute appeals and delays. A human rights observer, says the travellers' human rights have been breached as police violated the court order and used sledgehammers to smash through the walls of a fully legal plot on the site in order to force entry.

Posted by khards @ 08:23 AM 29 Comments

Fantastic Idea!

Ft.com: Prize announced for painless euro death plan

Wanted: a plan for the painless death of the euro. The reward: a quarter of a million – sterling, of course. Those in need of spare cash amid troubled economic times could do worse than apply for a new prize set up by Lord Wolfson, who is offering £250,000 to the person who comes up with the best plan for winding up the euro in an orderly way.

Posted by watchman @ 12:15 AM 5 Comments

Tuesday, October 18, 2011

Hell in handcart...

The Independent: No room at the letting agent

Britain may soon not have enough rental properties available to satisfy demand, a survey has suggested, in further evidence of a growing crisis in the housing sector.

Posted by wheelerfish @ 08:20 PM 0 Comments

Xmas comes weekly for bankers lol

CNN: Big bonuses alive on Wall Street. Why?

If a company discloses that its profits plunged by nearly 75%, why are its compensation expenses only down about 25%? I was not a math major in college. Or even economics for that matter. But something seems off

Posted by mark @ 07:09 PM 11 Comments

The crash and the snake all in one article

Professional adviser: My house is my pension - how to dispel the property myth

Property is no longer the nest egg some imagine. The baby boomer generation, having made big returns on property in the 1980s, is well versed in the virtues of property investing. However, it can be hard to illustrate to them that although the value of their house has grown considerably, it is unlikely there is enough money in their property to keep them in old age. After the house price crash of 2008, it is even more important to dispel the property myth than ever. Three advisers gave us their best tips on how to wake clients up from their property daydreams............ .

Posted by jack c @ 04:54 PM 4 Comments

More land tax goodness

Telegraph: Business rates to rocket as RPI inflation hits 5.6pc

Businesses face the biggest annual jump in rates for over 20 years if the Government uses September’s 5.6pc increase in RPI to set next April’s rises. Andrew Cave, chief spokesman for the Federation of Small Businesses, said the Government should act. “Business rates are the highest overhead for a small business. At a time when they are struggling it will be another kick in the teeth next year when most businesses will hope things will be improving and their overheads are getting under control,” he said. [Funnily enough, he didn't think to ask landlords to lower their rents instead.]

Posted by drewster @ 04:32 PM 5 Comments

Price of pork has gone up by 50% over the past year, Mervyn King would be so proud of that

Yahoo: Why China's 'Enviable' Boom Is Under Threat

During the past three decades, China - the world's fastest growing major economy - has consistently enjoyed growth rates of 10% and above. Some economists believe a growth rate as high as 8% could still see China faced with large-scale unemployment. Many believe a drop to 6% would qualify as a hard landing. Debt problems are another potential hazard. By some estimates, local governments owe more than £1trn as a result of investments fuelled by China's stimulus package. Some China watchers anticipate that about £700bn will never be repaid.

Posted by mark @ 12:39 PM 8 Comments

The end of the London property party?

HousingExpert: Last orders for the London Property Party

Great article from BBC housing expert Henry Pryor calling 'time' on the London property market.

Posted by charles lister @ 11:58 AM 12 Comments

Like lambs to the slaughter...

24 Dash: Wandsworth Council: Increased Right to Buy sales to boost mortgage deposit scheme

"Wandsworth Council is promoting its plans for a new mortgage deposit scheme to encourage first-time buyers and council tenants get onto the property ladder ahead of a home ownership event this week. Under the proposals, which have yet to get the official seal of approval from Housing Minister Grant Shapps, Wandsworth residents would be offered loans of up to £50,000 in order to take out a mortgage with a traditional high street lender. The loan would be repaid once the property is sold and the money would be returned to the deposit fund ready for the next user."

Posted by mark wadsworth @ 11:17 AM 3 Comments

What Rightmove’s 3% price rise is really saying about the housing market

Planet Property: What Rightmove’s 3% price rise is really saying about the housing market

They say it means partial recovery; we think it signals increasing desperation.

Posted by the planet @ 10:50 AM 2 Comments

''We expect inflation to fall back etc''

BBC: UK CPI inflation rate rises to 5.2% in September

'The UK's inflation rate rose in September, with the Consumer Prices Index measure reaching 5.2%, up from 4.5% in August. An increase in energy costs was behind a large proportion of the rise in the inflation rate, analysts said. The Retail Prices Index measure - which includes mortgage interest payments - rose to 5.6% from 5.2% in August, the Office for National Statistics said. The Bank of England's target rate for CPI is 2%.'

Posted by hpwatcher @ 09:43 AM 54 Comments

Everything Collapsing

Telegraph: Small business confidence collapses

A DRAMATIC fall in confidence over the economy has prompted small firms to lay off staff as costs rise and revenues decline. More companies are now pessimistic about their prospects than bullish and intend to sack staff in an attempt to reduce costs and save cash. No surprises here then.

Posted by doomdog @ 08:24 AM 0 Comments

Evil developers conspiring to build homes

Telegraph: Hands Off Our Land: the 'huge' lobbying war chest behind the builders

Property developers have mounted a “huge” lobbying campaign backed by the rich and powerful to alter radically planning laws in favour of development, the head of the National Trust has said ... The National Trust and other groups are campaigning to persuade the Government to rethink the changes to planning rules because of fears that they favour development.

Posted by quiet guy @ 08:18 AM 12 Comments

Usual ''fall back after 2 years'' propaganda & lies expected from BOE

Telegraph: Inflation closes in on 20-year high

Inflation will today hit its second highest level in 19 years when it peaks at around 5pc, dealing households one final blow before starting to decline. The monthly consumer prices index (CPI) has risen above 4.7pc just once since it reached 7.2pc in March 1992, according to the Office for National Statistics (ONS). Economists expect CPI for September, published today, to be between 4.9pc and 5.1pc – just below the 5.2pc recorded in September 2008 after oil rocketed to $147 a barrel.

Posted by hpwatcher @ 07:15 AM 0 Comments

Monday, October 17, 2011

No Normal Recession

The Oil Drum: Countdown to $100 Oil

The annual average price (AAP) of Brent went through $100 on around 16th August 2011 and the AAP stood at $105.3 on 12th October. The AAP high point in the 2008 price spike was $104.8 on 9th October that year.

Posted by fubar @ 05:06 PM 0 Comments

Protestor does us a favour

BBC News: Occupy London: Protests continue for third day

Listen to the video of the protesting mask wearer. She is bemoaning the cost of everything but includes the comment "Mortgage rates have to come down", before mentioning that "we can't even afford our own homes". Besides her lack of understanding that mortgage rates are very low currently, she does illustrate the problems caused by high house prices nicely.

Posted by thebulltrap @ 03:54 PM 18 Comments

Public sector cuts disproportionately affect the north

Telegraph: House prices in south double those in north as public sector cuts widen gap to record levels

House prices are now more than twice as high in the south of England as in the north – their biggest gap since records began – as unemployment rises due to cuts in the public sector payroll but wealthy foreign investors continue to buy property in London and the Home Counties. The average house price in the north fell by 9.4pc since the start of the credit crisis but increased by 5.4pc in the south, according to Rightmove. Price decreases in the north were linked to higher unemployment figures and public sector layoffs, while cash-rich buyers in the south with larger deposits were able to secure low interest rates on mortgages.

Posted by drewster @ 03:19 PM 3 Comments

Dodgy housing

Bbc wales: X-ray Episode 8 tonight 7.30pm bbc 1 wales

Rob and Dods Arnold thought their new bungalow at Aberporth would be a great investment. But just a year after they'd bought it cracks began to appear in their hundred and eighty five thousand pound bungalow, garage and garden. The same thing seemed to be happening to other nearby properties. Now, the owners of other homes on the Clos-y-Fferm development are being told that their properties have no value and can't be sold. So what went wrong at Clos-y-Fferm in Aberporth and who is to blame - the builder, the surveyor or the insurers? Rachel Treadaway-Williams investigates.

Posted by mark @ 01:03 PM 0 Comments

Ernst and Young also says the Bank of England's new quantitative easing (QE) bout is unlikely to

Bbc: UK economy at dangerous junction, warns Item Club

Also on Monday, professional services company Begbies Traynor reported it found an increase of 23% of companies reporting "critical" financial distress in the third quarter of this year compared with 2010.

Posted by mark @ 11:24 AM 5 Comments

The gap between the 'saying' and 'doing' index grows.

Estate Agent Today: We need to build at least 200,000 homes a year, says Shapps

Housing minister Grant Shapps has said that the Government needs to build more than 200,000 homes a year. Speaking on the Radio 4 Today programme, he said that building more homes is the only way to prevent further rises in rents and meet housing need. He outlined the Government’s three-pronged approach to stimulate house building, including reviving Right to Buy, releasing Government land on a ‘build now and pay later’ basis, and reforming the planning system. Shapps said: “We think there has to be a couple of hundred thousand new homes created each year – something in that kind of order

Posted by sibley's b'stard child @ 10:57 AM 8 Comments

More QE and inflation to come - welcome to british greece

Reuters: 2011 growth forecast cut to 0.9 percent

Britain's economy has stalled and will grow less than expected this year, despite the Bank of England's latest injection of 75 billion pounds to try to stimulate a faltering recovery, forecasters said on Monday.

Posted by mark @ 10:55 AM 1 Comments

Shaxson's Treasure Islands - the sequel

Counterpunch: Crisis for billionaires

A significant energy source for western banks has been the streams of cash and assets plundered from the second- and third-world by kleptocrats, oligarchs, privatisers, drug cartels and sovereign wealth funds (SWFs). The story is that when these plunderers fall from grace they 'retire' abroad to spend more time with their money. Corrupt leaders and officials and businesspeople profiting from their preferments believed this narrative and kept stashing their loot in western banks and their offshore labyrinths. But many of these plunderers have themselves been fleeced or had their assets frozen or seized, and the SWFs are hostage to the sovereign's 'good behaviour' as defined by the US, so repatriation of some SWFs is looking more likely. So, will the energy source wither away?

Posted by icarus @ 10:08 AM 2 Comments

How protests against inequality could affect the housing market

MoneyWeek: How protests against inequality could affect the housing market

People are getting ever more fed up with bail-outs that put banks and the wealthy above everyone else. That could lead to some nasty surprises when politicians are forced to act. John Stepek explains.

Posted by martingreen @ 09:34 AM 8 Comments

Estate agents pushing on a string?

Estate agent Today: Asking prices on Rightmove shoot up nearly 3%

Despite most house price indices showing that house prices have gone down, asking prices on Rightmove have shot up by 2.8%. The asking price on Rightmove for houses new to the market over the last month now stands at £239,672, the site reportted this morning. The asking price average compares with £161,132 quoted by Halifax for September and £166,256 quoted by Nationwide for the same month. Both lenders base their average house prices on mortgages agreed. But there is a pronounced north/south divide in Rightmove’s asking prices, with average property prices in the south at £336,743 being more than double those in the north, at £164,347. The gulf is the highest Rightmove has ever recorded.

Posted by khards @ 07:57 AM 23 Comments

Time for FTB's to move North

Citywire Money: House prices: widest ever gulf between north and south

House prices in the south are now more than double those in the north, according to Rightmove. Asking prices in southern regions, such as London and East Anglia, rose by 4.7% in October, while northern regions, including Wales and the West and East Midlands, fell 0.7%. The difference means the average property price in the south is now £336,743, compared with £164,347 in the north – the widest gulf ever recorded, according to the property website. The national average increase, meanwhile, was 2.8%, with prices 1.2% higher than this time last year.

Posted by chapmania @ 12:20 AM 0 Comments

Sunday, October 16, 2011

Interview with Steve Keen

YouTube - Renegade Economist's Channel: In conversation with: Prof. Steve Keen

Some points from this interview: We need to reassess the dominant economic theories used by governments today. The section of society that benefits the most from the current economic system sincerely believe that they are acting for the benefit of us all - changing that perception will be difficult. Keen thinks that we should have a debt jubilee to extinguish household private debt! Keen is worried there is likely to be violence before there is serious change. Keen seems to be in favour of ZIRP policies after a house price bubble has peaked but at some point, very painful private debt deleveraging will be unavoidable. All in all, this is not a cheerful interview.

Posted by quiet guy @ 06:50 PM 1 Comments

Fractional Banking & Currency Debasement

Market Oracle: BOE Quantative Inflation

The government is trying to inflate away the debt, and no amount of Newspeak can't hide the truth of what is happening. The austerity measures are just playing to the gallery, and the inherent growth targets in the Gvt's strategy are a never going to happen.

Posted by there will be blood @ 04:09 PM 0 Comments

Council housing hinders worker mobility

Guardian: 'House swap' plan to help the unemployed uproot in search of work

The government is to launch a "house swap" programme, reminiscent of Norman Tebbit's call for the jobless to "get on your bike", in an attempt to encourage people to move around the country to find work. The controversial plan to tackle the unemployment crisis means people living in social housing will be helped to uproot their families in order to chase jobs. Details of the scheme are yet to be finalised, but it is understood the plan would involve a nationwide database of house swaps and the removal of any barriers to people in social housing moving between regions.

Posted by drewster @ 01:13 PM 10 Comments

Saturday, October 15, 2011

Corporate tenant demand down 50%

Planet Property: Corporate tenant demand down 50%

The faltering economy has hit corporate lets hard, says Savills.

Posted by the planet @ 01:03 PM 0 Comments

The problem with housing

The Guardian: Cathy Come Home's lesson will soon be learned again

"There is no cheap answer to housing but as rent gets more out of reach the state has to find ways for all to afford a home". Polly Toynbee sets outs a summary of the thorny housing issue but doenst provide much in the way of answers.

Posted by greenmind @ 12:35 PM 36 Comments

Fiscal failure

FT (via The Global Mail): Time for some intelligent policy making

This is a Financial Times article by Martin Wolf behind a paywall which is why I've used a Canadian newspaper copy instead. Wolf briefly explores the difference between private debt and national debt, the effectiveness of QE and why we are heading towards a deflationary depression if we don't start thinking about new fiscal policy. More QE will not help much. Getting money to consumers and liquidating excessive private debts would be more effective at getting our economy growing. Also, here's a brief commentary from Tax Reasearch UK: Can Martin Wolf get much more unsubtle and still be polite about the Prime Minister?

Posted by quiet guy @ 10:43 AM 8 Comments

We is all not in this together

Businessinsider.com/: 15 Facts About Military Spending That Will Blow Your Mind

Some good headlines stats, I liked this one...America's defense spending doubled in the same period that its economy shrunk from 32 to 23 percent of global output*

Posted by novice pete @ 03:29 AM 7 Comments

California Dreamin?

Daily Telegraph: Failing dreams: California faces it's own Great Depression

Growing joblessness, homelessness and inequality... grim reading from the US. I don't see how the powers-that-be will be able to keep a lid on this much longer.

Posted by stuartking @ 12:51 AM 2 Comments

Friday, October 14, 2011

Investors apparently have a finite capacity when it comes to panicking.

Cnn: Muni meltdown? No. But don't ignore risks

It's a bit curious in light of some sobering developments in the world of munis recently. This week, Harrisburg, Pa., filed for bankruptcy. That news comes on the heels of the emergency bailout of Franco-Belgian bank Dexia, which is a guarantor of municipal bonds in the U.S.

Posted by mark @ 08:27 PM 0 Comments

Our 83% ownership may become 100%

Telegraph: RBS the 'most vulnerable' bank in Europe, say Credit Suisse analysts

Royal Bank of Scotland is the "most vulnerable" bank in Europe and could be forced to raise £17bn in new money to shore up its capital ratios, more than any other major European lender, according to analysts at Credit Suisse. The state-backed bank is already 83pc owned by the taxpayer and would likely face full nationalisation under the scenario set out by Credit Suisse, which estimates RBS might face a capital shortfall of £16.9bn in a new round of Europe-wide industry stress tests.

Posted by quiet guy @ 07:53 PM 5 Comments

The problem could spread across the country.

LA times: Shaky underground banking system raises fears in China

But an engine of that remarkable success, a thriving underground banking system, has begun to fracture, exposing new fault lines in China's economy. Two heavily indebted Wenzhou entrepreneurs recently jumped to their deaths and nearly 100 business owners have fled their factories, leaving piles of unpaid loans behind, according to state media. This unregulated lending amounts to as much as $78 billion annually in Wenzhou alone; nationally it could be as high as $627 billion or 10% of gross domestic product, according to financial services firm UBS

Posted by mark @ 11:34 AM 2 Comments

Cant even sell the cr4p either

Lancashire Evening Post: Landlord snub to ‘cheap’ flats

after struggling to sell the apartments to landlords or ‘approved persons’ - people who have shown to the council a priority need for low-cost housing. Planning officers told the committee Gladedale had blamed a lack of parking, an “absence of consumer confidence for town centre apartments” and low-income buyers’ problems in getting mortgages for their difficulties in selling the affordable flats.

Posted by mark @ 10:57 AM 3 Comments


North wales daily post: 240 jobs axed at building firm, including 40 at Hawarden

A LONG-STANDING building firm ceased trading yesterday, leaving 240 workers on the scrapheap. Linford Group Ltd axed 40 jobs at its Hawarden branch and 200 in Lichfield, Staffordshire.

Posted by mark @ 10:43 AM 1 Comments

2007 prediction of middle class becoming a revolutionary class

The Guardian: Revolution, flashmobs, and brain chips. A grim vision of the future

Marxism "The middle classes could become a revolutionary class, taking the role envisaged for the proletariat by Marx," says the report. The thesis is based on a growing gap between the middle classes and the super-rich on one hand and an urban under-class threatening social order: "The world's middle classes might unite, using access to knowledge, resources and skills to shape transnational processes in their own class interest". Marxism could also be revived, it says, because of global inequality. An increased trend towards moral relativism and pragmatic values will encourage people to seek the "sanctuary provided by more rigid belief systems, including religious orthodoxy and doctrinaire political ideologies, such as popularism and Marxism".

Posted by sneaker @ 10:35 AM 9 Comments

Transaction levels continue to plummet

Planet Property: Transaction levels continue to plummet

The Halifax may want us to focus on their interpretation of the data – that northern towns are seeing the biggest increase in sales – but the really telling figures here show just how little activity there is in the market

Posted by the planet @ 10:12 AM 0 Comments

Still a long way to go...

Telegraph: House prices fall £5,000 in year to September

''House prices fell by 0.3pc in September, wiping just £594 off the cost of the average home, according to the latest LSL Property Services/Acadametrics House Price Index. This ends a two-month run of modest rises, but on an annual basis the cost of the average home has slipped by 2.3pc – or an average of £5,240 – over the past year. According to research, the average home in England and Wales is now worth £218,650. The largest monthly growth was recorded in Greater London, with a monthly increase of 1.1pc.''

Posted by hpwatcher @ 08:06 AM 10 Comments

Acadametrics: -0.3%MoM, -2.3%YoY

Bloomberg: U.K. Home Prices Post First Drop Since June, Acadametrics Says

U.K. house prices fell for the first time in three months in September as turmoil in financial markets spurred by Europe’s debt crisis undermined confidence, Acadametrics reported. “The most recent economic news is far from positive and we are seeing a rapid tightening in the supply of credit and the emergence of renewed tensions around the banking sector,” Williams said in the report. “This might drive the housing market down, taking house prices with it. Much turns on the success of the interventions now put in place.”

Posted by little professor @ 01:44 AM 1 Comments

Thursday, October 13, 2011

More sense from Nouriel Roubini

Project Syndicate: The Instability of Inequality

How the lessons about the need for prudential regulation of the financial system were lost in the Reagan-Thatcher and growing inequality is leading to social and political unrest. Contrasts this with three decades of relative social and economic stability, from the late 1940s until the mid-1970s, a period when inequality fell sharply and median incomes grew rapidly. (An era, of course, when housing was affordable and plentiful - unlike now.) He warns: 'Any economic model that does not properly address inequality will eventually face a crisis of legitimacy. Unless the relative economic roles of the market and the state are rebalanced, the protests of 2011 will become more severe, with social and political instability eventually harming long-term economic growth and welfare.'

Posted by stuartking @ 10:02 PM 8 Comments

The bust is no illusion....

New Statesman: The boom was the illusion

The world economy is on the edge of a precipice. The best we can hope for now is a managed retreat from the wilder shores of globalisation. The alternative is the collapse of the euro, protectionism – and even war.

Posted by rental john @ 08:39 PM 2 Comments

"wealthy individuals are likely to continue their “love affair” with property"

Portfolio Adviser: Wealthy Britons seek shelter in property

A downbeat assessment of the outlook for the UK is leading wealthy Britons to diversify their investment portfolios, according to the latest Skandia Millionaire Monitor report. The survey found that many respondents are employing a multi-asset approach, with a particular emphasis on property.......Looking ahead, wealthy individuals are likely to continue their “love affair” with property. One-third of respondents plan to increase their investment in property over the next six months. Graham Bentley, the head of investment strategy at Skandia, commented: “People might assume that a lot of millionaire wealth is ‘old money’ and hence it would be natural for a lot of it to be tied up in property. However, that is not the case.

Posted by jack c @ 05:57 PM 4 Comments

More economic woe on the horizon?

Telegraph / Yahoo: UK rating downgrade 'unavoidable'

A downgrade of Britain's top notch credit rating is potentially unavoidable because the country can not grow out of its debts, a leading asset manager has claimed.

Posted by mr g @ 05:55 PM 3 Comments

Another property price prop

Mortgagestrategy: Scottish government pledges extra £4.7m to FTB scheme

The Scottish government has allocated an extra £4.65m of funding to its scheme to help those on low to moderate incomes get on the housing ladder. Its Open Market Shared Equity scheme has now had its budget almost doubled, from £4.75m to £9.4m, and will be able to help over 250 people buy their first homes. OMSE is part of the Scottish government’s Low-Cost Initiatives for First-time Buyers schemes.

Posted by jack c @ 04:55 PM 4 Comments

QE and the mortgage market (by Ray Boulger & Co)

FTAdviser: Boost could do well for housing market

The latest stage of quantitative easing may bolster the stumbling housing market, according to Ray Boulger, senior technical manager for London-based John Charcol. He claimed the Bank of England’s latest round of QE could provide liquidity for banks to offer longer-term fixed-rate mortgages and help to provide more confidence to would-be borrowers.........Paul Hunt, managing director of Phoebus Software, added: “The decision is one that will protect growth and will give lenders greater confidence the UK’s mortgage borrowers will be able to sustain debts in the long term.”

Posted by jack c @ 04:40 PM 4 Comments

A sign of things to come?

Fox news: Pennsylvania's Capital City Files for Bankruptcy

Yes i know it is in the states, but if this spread how would the USA flu effect the UK and ROW

Posted by mark @ 01:21 PM 12 Comments

Not sure what to say...... sunday is not the best day to protest!!!

Bloomberg: Protesters to ‘Occupy’ London Stock Exchange

Protesters are preparing to set up camp outside the London Stock Exchange, expanding Occupy Wall Street demonstrations that began in New York. About 4,000 people have signaled their intent to attend a peaceful demonstration that will start at noon on Oct. 15

Posted by mark @ 12:56 PM 23 Comments

Books Being Fiddled at Krauts Expense

Skynews: Greek Strikes Spark Athens Health Alert

As the Greek capital is gripped by fresh waves of strikes and protests, hygiene officials are warning of a "health time bomb" from tons of uncollected rubbish. Greece's beleaguered socialist government announced the new austerity tariff last month after international debt inspectors suspended talks on further aid disbursement because of deficit gaps spotted during a September review.

Posted by doomdog @ 12:51 PM 1 Comments

Can anyone explain how this creates 200 jobs, i suspect temp ones not perm ones

Lancashire Evening Post: Futuristic superstore gets a seal of approval

Booths, which has had a presense in the town for the past 30 years, says the new store should create up to 200 jobs. It is expected to be completed by summer 2013.

Posted by mark @ 12:49 PM 5 Comments

Adjusted for inflation, house prices have fallen by 25%

Too late to prevent the financial meltdown?

G Pytel: State investment bank and the European banks meltdown (in slow motion)

The politicians are slowly realising that the financial system is BROKEN and the solutions must take that into account. Hence the idea of "credit easing" by Osborne. But it may be simply too late to try out the right things and a collapse, which will take a shape of defaults and high inflation, is inevitable. this is how the middle classes (and their children) will end up completely fleeced by the super rich who are the master of the financial industry. Britain cannot relax. Once the Eurozone will bet taken to the cleaners the UK looks like the next target. (The government spending cuts only mean that there will be more to be extracted by banksters.)

Posted by ant @ 11:10 AM 0 Comments

Time for a Rent Price Crash too

BBC News: Private rents in England unaffordable, says Shelter

Private rents are now unaffordable in 55% of local authorities in England, the housing charity Shelter has said. Homes in these areas cost more than 35% of median average local take-home pay. Chief executive Campbell Robb said: "We have become depressingly familiar with first-time buyers being priced out of the housing market, but the impact of unaffordable rents is more dramatic. "With no cheaper alternative, ordinary people are forced to cut their spending on essentials like food and heating, or uproot and move away from jobs, schools and families." Housing Minister Grant Shapps said the government recognised the importance of private landlords in providing homes.

Posted by little professor @ 08:08 AM 22 Comments

HP keep falling - Need i say more?

Reuters: House prices keep falling

A couple of days old, but it all adds to the mix. Excellent title!

Posted by markj69 str05 @ 06:27 AM 0 Comments

Wednesday, October 12, 2011

Unemployment up, inflation up, house prices down

Mortgagestrategy: House prices to fall 10% by 2013

Weak economic growth and falling employment will cause house prices to fall 10% by 2013, according to Capital Economics. In a Q4 housing market report, Capital Economics predicts that house prices will decline by 5% in both 2012 and 2013. And it says that the threat of another major financial crisis and a return to recession mean that risks to its forecasts are to the downside....It says: “Against this backdrop, house prices have further to fall. While traditional valuation metrics are not a perfect guide to the scale and timing of future price movements, they suggest that housing is overvalued by up to 20% relative to historical norms.

Posted by jack c @ 10:35 PM 7 Comments

Bit Of A Bear Fest Here...

Home.co.uk: Home Sellers Cut Deeper

In view of the UK’s ‘incredible shrinking economy’ it would appear that quantitative easing is not as effective a stimulus as many had wished. Moreover, looking at the overall health of the UK property market it is clear that, despite throwing the kitchen sink at the UK credit problems, house prices and transaction rates are beating a slow retreat.

Posted by rantnrave @ 09:14 PM 8 Comments

Panic over

BBC: Barroso outlines plan to resolve eurozone debt crisis

They've decided that because the banks have run out of money, governments will give them more, so the banks can lend more money to the governments because the governments have run out of money.

Posted by timmy t @ 05:08 PM 5 Comments

Read Their True Story. The Sharps Bus Family

The Sun: Family try to beat recession by moving to a BUS

A family from Coulsdon have decided to move into a Double Decker bus and move to the country.

Posted by sharpsbus @ 03:55 PM 0 Comments

Yet another of these tales with a happy ending

Daily Mail: Real estate dream turns into a nightmare after $45m mansion sells for just $11.5m

"They thought they were building a dream home. But the dream soon turned into a nightmare when a $45million Atlanta mansion was foreclosed and then sold at a massive 75 per cent drop at only $11.5million." What the article doesn't mention is what the vendor spent on buying the land and building the house, this may have been a lot more or a lot less than $45 million, that was just the original asking price.

Posted by mark wadsworth @ 12:49 PM 1 Comments

Protectionism? A Sign of Things to Come?

BBC News: US Tries To Pressure China On Yuan

Okay the Bill will probably fail at the next stage, but the fact the US is l=leaning this way is interesting. The US Senate has voted through a bill that aims to aims to put pressure on China to increase the value of its currency, the yuan. Some lawmakers argue that the Chinese yuan has been kept artificially undervalued, giving the country an unfair advantage and hitting US jobs. The legislation passed the Democrat-led Senate 63-35, putting it through to the House of Representatives. However, the bill is unlikely to be passed by the House.

Posted by fubar @ 11:46 AM 6 Comments

OOH no Gordons bessie mate - YOU'RE FIRED

Reuters: Republican candidates vow to oust Fed's Bernanke

"Bernanke has in secret spent hundreds of billions of dollars bailing out one group and not bailing out another group. I think it is corrupt and it is wrong for one man to have that kind of secret power."

Posted by mark @ 11:33 AM 6 Comments

Should an american be spouting this claptrap - devalue the pound maybe?

Bloomberg: Posen Says Bank of England Is Prepared to Add More Stimulus If It’s Needed

Bank of England policy maker Adam Posen said the central bank’s new round of stimulus is the “right place” to start and officials are ready to do more if it’s needed. “We are going to review it on an ongoing basis,” Posen said in an interview with Bloomberg Television in New York

Posted by mark @ 11:28 AM 0 Comments

All is good now more low paid supermarket jobs to compensate for high unemployment

Lancashire Evening Post: Sainsbury’s to create 50,000 jobs

Supermarket giant Sainsbury’s is aiming to create 50,000 jobs by 2020, double the amount of British food it sells and massively increase fairly traded products under a new £1 billion sustainability plan

Posted by mark @ 10:59 AM 10 Comments

London rents at 76% of average incomes

Planet Property: How high can they go? London rents now at 76% of average earnings

Ok, it's averages... but still. With the squeeze on incomes this is surely not sustainable. Question is: when will rents peak and will they fall thereafter.

Posted by the planet @ 10:40 AM 4 Comments

Why are the welsh so aggressive against housing?

North wales daily post: 500-name petition against £8m Bangor students flats scheme

AN £8m plan to demolish the site of Britain’s biggest cannabis factory and turn it into student flats has been described as “campus Colditz”. Hughes Bros Llangefni, have put in a proposal to demolish the former Jewsons site in Hirael, Bangor – and build 162 flats.

Posted by mark @ 10:39 AM 14 Comments

Hell, hand-carts, etc

BBC: UK unemployment total reaches 17-year high

UK unemployment rose by 114,000 between June and August to 2.57 million, a 17-year high, according to official figures. The Office for National Statistics (ONS) said the unemployment rate also increased to 8.1%. The unemployment total for 16-24 year olds hit a record high of 991,000 in the quarter, a jobless rate of 21.3%.

Posted by phdinbubbles @ 10:12 AM 21 Comments

Tuesday, October 11, 2011

NIESR Heralds A Depression

BBC News: UK economic recovery 'weakest since World War I''

NIESR says the (UK) recession is over, but full recovery will take some time. It says it interprets the term "recession" to mean a period when output is falling or receding, while "depression" is a period when output is depressed below its previous peak. NIESR says the depressed period will last for some time.

Posted by rantnrave @ 05:30 PM 8 Comments

This is why big companies are no good for UK

Action aid: FTSE 100 tax haven tracker

Use the interactive map to see which companies pay the least tax in the UK while milking you as a customer

Posted by mark @ 04:00 PM 7 Comments

UK firms having trouble keeping pace with staggering growth rate

BBC: UK economy deteriorating, says BCC

The UK economy deteriorated in the third quarter and is showing signs of stagnation, according to the British Chambers of Commerce (BCC). The BCC has downgraded its forecast for UK economic growth three times. It's expects the economy to expand by just 1.1% in 2011, compared with 1.9% at the start of the year. Last week, official figures showed the UK economy grew by 0.1% between April and June, less than the 0.2% estimated previously. The balance of manufacturers creating new jobs fell, while in the services sector there was only a marginal increase in employment. There was little optimism in either sector about future recruitment. The Office for National Statistics also revised down growth in the first three months of the year from 0.5% to 0.4%.

Posted by general congreve @ 11:52 AM 15 Comments

Splendid summary on how debt-for-equity swaps would work

City AM: We shouldn’t bail out the banks: Let their lenders pay instead

Not absolutely 100% house price related, but seeing as banks are the flipside of house prices and banks are in a mess, sorting out the banks at nil cost to the long suffering taxpayers and savers seems like a good idea to me. Lengthy but worth a read.

Posted by mark wadsworth @ 11:18 AM 11 Comments

Come on, make yer mind up

StockMarketWire: UK house prices down 0.6% month-on-month, says DCLG

Headline says prices down 0.6% month on month, but the article says "UK house prices decreased by 1.3 per cent over the year and INCREASED (my emphasis) by 0.6 per cent over the month (seasonally adjusted)." Which is it? Does seasonally adjusted turn minus into plus?

Posted by we're all in this together @ 10:32 AM 3 Comments

Was it the sun? was it the rain? maybe it was the hurricane

Bbc: UK manufacturing output down 0.3% in August

Comparing the three months to the end of August with the same period in 2010, growth slowed from 3.3% to 2.5%.

Posted by mark @ 10:26 AM 1 Comments

Crash is coming

Daily mail: House prices: 'We're set for a crash so slow that many will not even see it'

Kauders points to Japan where, although there have been occasional rallies, property prices have fallen for 20 years or more. With overall credit in the system being reduced over time, 'borrowing to buy property is dangerous', he says. 'It's something that should not be done. Borrowing against property works in a rising market - and we have had little experience of anything else.

Posted by mark @ 10:21 AM 13 Comments

Balance minus 23

Reuters: House prices keep falling in September - RICS

House prices in England and Wales continued to fall in September and the number of sales declined for the first time since January, a survey showed on Tuesday, providing further evidence of a weak housing market.

Posted by dill @ 01:21 AM 14 Comments

Monday, October 10, 2011

Most Horror movies usually have an ending...unless it's a Freddy Krueger sequel.....

The Economist: The Europeans are pushing the global banking system to the edge

You know something bad is going to happen in a horror film when someone decides to take a late-night stroll in a forest. The equivalent in finance is a bank boss insisting that his institution is completely solid. In 2008 governments were credible backstops for their banks and the Fed, the central bank at the heart of the crisis, was willing to do everything it could to create confidence. Now the sovereigns are the problem and the ECB’s help is limited and conditional. That is the real horror film.

Posted by rental john @ 03:09 PM 0 Comments


Guardian: Empty homes: help us find out more

If we are suffering a lack of housing, why are there so many empty homes? We [The Guardian] want to hear about those near you to find out what went wrong and highlight the issue on a bigger scale.

Posted by dill @ 02:59 PM 6 Comments

Too hot to shop excuse now next it will be too cold to shop

Daily mail: Indian summer melts retail sales on the beleaguered High Street

The Indian summer has heaped further pressure on the beleaguered High Street, new research has revealed.

Posted by mark @ 01:26 PM 13 Comments

Yeah, but at least he kept the power boat and Range Rover...

Estate Agent Today: Pioneer of 'extreme house selling' takes extreme hit on property price

A man who pioneered a concept called ‘extreme house selling’ and who founded a website called Property Selling Strategy, offering consultancy to help individuals and estate agents (at £1,000 per day plus expenses), has had to concede defeat on the sale of his own property. Jonathan Blain, of Berkshire, had renovated a house in Devon at a cost of £850,000, and in 2008 put it up for sale with a £3m price tag. The house was repossessed last year and has now sold for just £651,000... When he was forced to reduce the price of the property to £1.35m, he even chucked in a free speedboat and a Range Rover to try to tempt buyers of The Old Bakehouse, near Totnes... Blain told the Mail on Sunday that he still felt the house was worth far more than £651,000...

Posted by mark wadsworth @ 12:52 PM 24 Comments

The Property Cycle

Fund Strategy: Lack of clarity cannot hide cracks

The Chinese property market is one of the most important drivers of economic growth, but signs of a bubble proliferate, despite rigorous state control and the opacity of domestic data. Chinese property casts a long shadow over the global economy. The Asian giant is the world’s largest consumer of steel and cement and dominates several other commodity markets, most notably copper. China has replaced America as the largest contributor to global economic growth. This contribution has depended ultimately on China’s booming residential property market. It is no exaggeration to say that Chinese property has become the “most important sector in the universe”.

Posted by jack c @ 12:39 PM 2 Comments

City planners across the country happily embarked on a frenzy of infrastructure projects

Reuters: China's debt pileup raises risk of hard landing

Chengdu, the capital of southwestern Sichuan province, answered the call for stimulus action with a bold plan for a railway hub modeled after Waterloo railway station in London. Except London's Waterloo was not ambitious enough.

Posted by mark @ 11:26 AM 1 Comments

But i thought high house prices were good for an economy!!!!

Bloomberg: Cap on Franc Pushes Switzerland Closer to Repeating 1980s Housing Bubble

A rise in real-estate prices is among the greatest threats to Switzerland’s economy, Swiss National Bank Chairman Philipp Hildebrand said in June. He made the remarks less than two months before the bank lowered rates to zero, after warning more than a year ago about the possibility of a bubble.

Posted by mark @ 10:48 AM 2 Comments

Of possible interest

Telegraph: Boomerang: By the time we're told all is well, all is wrong

Charles Moore reviews Boomerang by Michael Lewis (Allen Lane).

Posted by dill @ 09:11 AM 4 Comments

Alessio Rastani on how to protect yourself

RTE: Alessio Rastani on Irish TV

Date: Sat 8 October 2011 Scroll to: 15:00

Posted by hpwatcher @ 06:57 AM 32 Comments

Sunday, October 9, 2011

We've made London an investment opportunity for rich people

Global Times: London hospitable to Chinese property buyers

London prices continue to rise despite an overall slowdown in the UK. Statistics from the insurance company Halifax show that overall UK prices were down 2.6 percent in August from a year ago. But prices in prime London market are up between 6 and 10 percent in the same period. The world’s wealthiest people are currently putting around 3.3 billion pounds a year into London’s economy by storing some of their wealth in its most expensive residential real estate, according to Yolande Barnes, head of residential research at Savills, a UK-based real estate company. “The world’s new rich are increasing in Southeast Asia and these individuals want to diversify into asset purchases across the world, and London is an ideal choice,” Bailey told the Global Times.

Posted by quiet guy @ 08:41 PM 15 Comments

What part should China play in European debt crisis?

The People's Daily: China Syndrome

Official party newspaper proposing three-pronged help for eurozone. 1. Buy bonds 2. Buy equities 3. Buy euros

Posted by stuartking @ 01:28 PM 15 Comments

EU devotees demonstrate their love for the superstate

Reuters: Spain's indignados protesters reach Brussels

Protesters from Spain's 'Indignados' movement reach Brussels after walking across Europe to demonstrate against austerity cut backs. They walked from Spain. They will now stay in Brussels and be joined by protesters from other European countries.

Posted by general congreve @ 01:22 PM 1 Comments

Off topic maybe but you can support "Occupy Wall Street" with this online petition

Avaaz.org: The World vs Wall Street

Thousands of Americans have non-violently occupied Wall St -- an epicentre of global financial power and corruption. They are the latest ray of light in a new movement for social justice that is spreading like wildfire from Madrid to Jerusalem to 146 other cities and counting, but they need our help to succeed.

Posted by watchman @ 12:33 PM 17 Comments

Banksters and fraudsters must be jailed

G Pytel: It's a pyramid indeed

This is to convince the sceptics who still do not believe that a) the current financial crisis resulted from turning the financial system into a pyramid scheme and b) pyramid schemes are fraudulent financial structures. The master thesis published by ETH in Zurich, a leading university, confirmed just that. Is Serious Fraud Office going to look seriously into it? It is a serious matter. The country is sliding into economic oblivion. Taxpayers are paying through their noses with stiff taxes and cuts in important services and pensions. At the same time all those who caused the crisis are laughing all the way to the bank. Bankers and fraudsters that caused the current financial crisis must be prosecuted. It is not an ideological statement this what must be done to obey law of the land.

Posted by ant @ 11:49 AM 0 Comments

From small acorns...

The Co-operative Party: The Co-operative Housing Tenure Bill

Next Tuesday 11th October, Labour & Co-operative MP Jonathan Reynolds will be introducing a Co-operative Party initiated parliamentary [Ten minute rule] bill to end the essentially feudal nature of England’s land ownership laws and create a new form of tenure, Co-operative Housing Tenure.

Posted by dill @ 11:38 AM 1 Comments

"deja vu"

Guardian: Will UK property prices weather a new recession?

This time homeowners and estate agents are asking not whether house prices will fall but just how far and how fast.

Posted by dill @ 11:08 AM 5 Comments

Saturday, October 8, 2011

Liam Halligan's take on UK austerity

The Telegraph: Talking up austerity will never bring down the UK's debt, Mr Osborne

Decent blog from Halligan (can't believe I just said that!) on the illusion of UK austerity, and the resulting perils that may await when the markets eventually move on from Europe, & take a closer look at the balance of Blighty's account..

Posted by tick tock @ 08:12 PM 3 Comments

The current state of Spanish banking

The Economist: Spain's Banks: Bring out your dead

Three years after Spain’s decade-long construction boom ended, Spain is finally nationalising some of its weakest lenders (having briefly seized two small savings banks earlier in the crisis). On September 30th the state took over three savings banks, or cajas, valuing their equity at close to zero. Banco CAM was seized in July. Others could follow.

Posted by watchman @ 01:50 PM 3 Comments

The herd gets fleeced

Sky: Pensions Worth 30% Less Than Three Years Ago

Private pensions are worth 30% less than they were three years ago, according to new research. Price Waterhouse Cooper (PwC) says a combination of recent falls in stock markets around the world and interest rates at a record low leaves people nearing retirment age "between a rock and a hard place". Recent equity falls are bolstering the gilts market, driving up the cost of purchasing an annuity and pushing down pension incomes, according to PwC. The firm says that given equity-heavy pension pots will in turn be worth less, pension incomes overall could be 30% less than they were three years ago.

Posted by general congreve @ 12:48 PM 21 Comments

Buyers more able to afford more affordable houses

BBC: Midlothian home to youngest first-time buyers

'Bank of Scotland housing economist Nitesh Patel said: "The variation in age between the youngest and oldest first buyers in Scotland is relatively low, just three years compared to almost a decade seen in England and Wales. "In many cases this is due to house prices being typically lower both in absolute terms and in relation to earnings, helping to limit the size of the deposit needed and the time needed to build one up." ' Wow, I think these new results could challenge everything previously assumed about first-time buyers not being able to buy because of the ghastly banks not giving them enough wonga.

Posted by phdinbubbles @ 09:59 AM 4 Comments

Re-grading Ripples?

Telegraph: Banks 'must show they can pay their way in the world'

"Banks have been warned that they will have to prove they can “pay their way in the world” because they cannot rely on bail outs from the government in future". "George Osborne, the Chancellor, spoke out after a major credit ratings agency downgraded 12 British banks – a move that is likely to lead to them having to pay more to borrow money"......"Yesterday there were reports of growing concern in Whitehall that RBS may need a third Government bail-out!" (wonder what their exposure to commercial property might be?).

Posted by alan @ 09:50 AM 4 Comments

Friday, October 7, 2011

Maggies bike is Camerons bus

Daily mail: Cash-strapped family move out of three bed council flat into a BUS after refusing to wait six years for a bigger house

A cash-strapped family of five have decided to beat the recession - and a housing queue - by moving into a converted bus they bought from eBay, Arthur Sharp and his partner Lisa Luke spent £2,000 on a decommissioned Bristol VR and are now turning it into a four bedroom home for their children Albert, 12, Arthur, four and two-year-old Kenny. The family, from near Croydon, south London, had been living in a three-bed council flat but when they requested a larger home they were told they would have to wait for six years.

Posted by mark @ 07:21 PM 12 Comments

Chinese home buyers typically put down at least 40 percent of the purchase price

Reuters: Deflating China's housing bubble

The IMF's housing policy recommendations to Beijing earlier this year were to raise interest rates, develop financial markets, and introduce a broad-based property tax.

Posted by mark @ 01:01 PM 2 Comments

Does it really matter?

Mail: Confidence in UK banking system rocked as agency downgrades 12 bank and building society credit ratings

''Confidence in the UK's banking system was hit today after a credit agency downgraded the debt ratings of a dozen British banks because of doubts over the strength of the Government's support. Just a day after Bank of England Governor Mervyn King said the world was facing its worst ever financial crisis, Moody's Investors Service revealed the downgrades included a two-notch downgrade for government-controlled Royal Bank of Scotland. Lloyds TSB Bank, a unit of part-nationalised Lloyds Banking Group, was the subject of a single notch cut.''

Posted by hpwatcher @ 11:48 AM 23 Comments

In defence of state-protected rationing and monoply rights

FT: Planning policy could bring about the 'dangerous' fall in house prices

"Most UK property prices include a significant site scarcity value. Relaxation of the current restrictions on land use will produce a rapid increase in the supply of building sites... In the medium term, lower house prices should produce benefits for those who cannot now afford to buy. But the shorter-term effect on the economy could be a large negative. The mark to market convention will oblige developers to write down their stocks of houses and land while mortgage lenders will – as Mr Wolf says – have to add to their impair" In other words "Sorry young folks for driving up house prices and rents to keep you on the breadline, but it's for your own good". The letter was written by "Tim Bees", which is one letter away from "Nim Bees".

Posted by mark wadsworth @ 10:50 AM 13 Comments

Laugh of the day?

Liverpool daily post: Liverpool Marathon oldest runner Gordon Brown

Liverpool Marathon oldest runner Gordon Brown, is he really superman lol i expect this to be pulled later today

Posted by mark @ 10:44 AM 6 Comments

Looks like the protests are popping up all around

Las vegas sun: Hundreds march on Strip to protest corporate greed

Lobb was one of hundreds of people who took to the Strip on Thursday afternoon for the Occupy Las Vegas march, an offshoot of the Occupy Wall Street protests that started in New York three weeks ago.

Posted by mark @ 10:26 AM 2 Comments

Article about housing, or somesuch nonsense.

Guardian: What to do if squatters take over your property

Sky-high property prices and soaring rents for those priced out of the housing market have meant that squatting has become a way of life for a growing number of people. The latest government figures put the estimated number of squatters in the UK at 20,000, but the real figure is probably higher. The government has closed a consultation on the criminalisation of squatting, in which proposals range from creating an offence of "squatting in buildings", thereby rendering the activity illegal, to improving the enforcement available under the existing legal framework. Squatting is already a criminal offence in Scotland, punishable by a fine or even imprisonment.

Posted by sibley's b'stard child @ 09:25 AM 24 Comments

More Panic Mongering from Paxman and Co.

Zerohedge: BBC Does It Again: "In The Absence Of A Credible Plan We Will Have A Global Financial Meltdown In Two To Three Weeks" - IMF Advisor

In an interview with IMF advisor Robert Shapiro, the bailout expert has pretty much said what, once again, is on everyone's mind: "If they can not address [the financial crisis] in a credible way I believe within perhaps 2 to 3 weeks we will have a meltdown in sovereign debt which will produce a meltdown across the European banking system. We are not just talking about a relatively small Belgian bank, we are talking about the largest banks in the world, the largest banks in Germany, the largest banks in France, that will spread to the United Kingdom, it will spread everywhere because the global financial system is so interconnected. All those banks are counterparties to every significant bank in the United States, and in Britain, and in Japan, and around the world.

Posted by general congreve @ 02:37 AM 0 Comments

Thursday, October 6, 2011

Stuart Law making an ass of himself - again!

Daily Express: Cheapest ever home loans on way

Let's fix now for two years on the basis that : Stuart Law - “I expect the Bank to announce a series of panic rate rises next year in response to growing inflation, therefore I would advise homeowners to fix now,” Stuart neglects to mention that in two years time you will have to re-mortgage, have no equity and be on the new higher interest rate that you can't afford. I'd put him against a wall blindfolded at dawn.

Posted by pmf170170 @ 09:54 PM 3 Comments

Bailing out homeowners again

Telegraph blogs: With inflation approaching 5pc, do we really want more QE?

Already, the Bank of England has bought up around 20pc of the national debt, equal to some 14pc of GDP. This latest round of QE will expand it to close to 30pc. I worry both that it will be ineffective in terms of stimulating investment and growth, and that we are now perilously close to outright monetisation of the deficit (a policy approach which all economic history shows ends in abject disaster). I worry that ultimately it's bound to be inflationary. As it is, I fear that it will again be the investment bankers who are the major beneficiaries. QE is like a drug; once hooked, it's very difficult to wean yourself off. Just how many fixes are required before you realise you are an addict?

Posted by drewster @ 05:09 PM 22 Comments

They say "Location, location, location"...

T'Yorkshire Post: Park life puts £21,000 on home

... and I say "it's the community which creates land values", for example by having public parks. "Houses close to public parks or open spaces now cost up to £21,000 more, revealing a “green premium”. A survey by finance company ING Direct found that the price difference was higher in cities with less public space as it becomes scarce because of pressure on town halls to sell off land. Julian Hartley, of ING Direct, said: “As planning regulations are relaxed and more local authorities sell off green areas for housing development, we’re likely to see the green premium increase significantly.”

Posted by mark wadsworth @ 02:03 PM 6 Comments

We all agree with you Andy

Yahoo: Andrew Sentance: More QE 'A Mistake'

A former member of the Bank of England's Monetary Policy Committee has told Sky News that expanding quantitative easing (QE) would be a mistake. Andrew Sentance, the one-time hawk on the MPC who repeatedly voted for a rise in the bank's core interest rate to tackle inflation, spoke ahead of the decision about his fears that additional QE - or asset purchases as the Bank calls the scheme - would not boost growth.

Posted by mark @ 01:12 PM 10 Comments

Meanwhile... the NY protests seem to still be going on strong

Daily Mail: Dozens arrested after thousands march on Wall Street

Dozens arrested after thousands march on Wall Street as Herman Cain tells them: 'If you're not rich it's your own fault'. There were 28 arrests as scenes in central New York started to turn ugly with scuffles between police and demonstrators. There are now an estimated 5,000 people in Manhattan, using Zuccotti Park as their base.

Posted by watchman @ 12:54 PM 2 Comments

QE sails again

Dalston Literary Review: Losing interest

Prepare yourselves: this is going to be about interest rates.

Posted by dlr @ 12:17 PM 0 Comments

Feeling a little queasy?

BBC: Bank of England injects further £75bn into economy

The Bank of England has said it will inject a further £75bn into the economy through quantitative easing (QE). The Bank has already pumped £200bn into the economy by buying assets such as government bonds, in an attempt to boost lending by commercial banks. But this is the first time it has added to its QE programme since 2009. There have been recent calls for it to step in again to aid the fragile recovery. The Bank also held interest rates at the record low of 0.5%.

Posted by sibley's b'stard child @ 12:08 PM 46 Comments

Little pig, little pig, let me come in...

Telegraph: Angry savers target Bank of England

Campaigners warned that savers are being taken for "mugs" as soaring energy and household costs have exacerbated the bleak future they are facing. A combination of high inflation and the Bank of England's base rate being held at a historic 0.5pc low has left savers struggling to find accounts which will give them a real return. The consumer price index (CPI), a broad measure of the cost of living, increased to 4.5pc in August, moving closer to a three-year high. Members of campaign group Save Our Savers will voice their anger outside the Bank tomorrow, at the same time as the next base rate decision is announced.

Posted by sibley's b'stard child @ 11:42 AM 7 Comments

Hope they get rid of eastenders lol

Yahoo: BBC To Cut Programmes And Up To 2,000 Jobs

Cuts to programming and 2,000 job losses are expected to be announced by the BBC this morning as part of major savings proposals.

Posted by mark @ 10:20 AM 2 Comments

Merryn Somerset Webb talks some sense on housing and tax

Moneyweek: A solution to the housing 'shortage' – put a tax on luck

"If the affluent all moved out of their big houses into small houses and put their second homes on the market, supply would rise and house prices would fall in a flash. Problem solved...I can't see anyone doing this voluntarily (so) it seems entirely reasonable to chuck a few property taxes into the mix."

Posted by greenmind @ 09:14 AM 15 Comments

Sentance says what he thinks of MPC

The Telegraph: Bank of England causes inflation, claims former MPC rate-setter Andrew Sentance

The Bank of England itself is one of the biggest obstacles to low inflation in Britain, former rate-setter Andrew Sentance has claimed.

Posted by a saver @ 08:16 AM 0 Comments

September 2011 (seasonally adjusted)

Lloyds Banking Group: Halifax House Price Index

Annual change -2.3% Quarterly change 0.1% Monthly change -0.5% Average Price £161,132

Posted by dill @ 08:08 AM 16 Comments

Wednesday, October 5, 2011

Depression edges ever closer

Telegraph: Recession was deeper and recovery slower than expected

FT.com article is better and actually quotes several economists as stating that in some respects, the current recession and weak recovery are actually worse than that in Britain in the 1930s. But I'm for obvious reasons I'm linking to this one which reveals that the ONS has recalculated its stats for the last 15 years because they were wrong! “From the point of view of the consumer, there has been no recovery whatsoever,” said George Buckley, economist at Deutsche Bank. Richard Barwell at the Royal Bank of Scotland pointed out that output contracted by 3.2 per cent in the six months before the financial crisis erupted in September 2008. “In isolation, those two quarters . . . were worse than the entire 1990s recession in terms of lost output,”.

Posted by enuii @ 10:14 PM 1 Comments

Ripples of the impending crisis reach our shores

Al Jazeera: France and Belgium stand by ailing bank

"A huge rescue operation looks imminent for the Franco-Belgian bank Dexia SA, after France's finance minister indicated that a partial solution to save the bank could be announced soon". "Banks face a 148 billion euro capital shortfall under a base case and a 227 billion shortfall under a stressed scenario, according to analysts at JPMorgan, who say Unicredit , Deutsche Bank, Lloyds, Societe Generale and Barclays each face a deficit of over seven billion euros under its stressed scenario, the Reuters news agency reported". Merkel said, "if a given country cannot (recapitalise) and if the stability of the euro is in jeopardy because of the difficulties in that country, then the possibility of the EFSF can be used," she said, referring to the euro zone's rescue fund.

Posted by alan @ 08:35 PM 1 Comments

Every day I find it harder to distinguish the Mash from Reality

Daily mash: Cameron momentarily forgets to pander

"There's nothing wrong with borrowing money and not paying it back. If you need more, you just borrow more. It's not as if the money is going to somehow run out. "I can guarantee that Labour will never tell you to pay off your debts. Not even by accident."

Posted by inbreda @ 04:05 PM 2 Comments

Bubble-free down under, perhaps

Sydney Morning Herald: A crash in property prices? Don't bet on it

Despite a veritable army of doomsayers - as evidenced by the number of websites and chat rooms - salivating at the prospect of a crash in property prices, so far it has stubbornly failed to materialise. Latest numbers show residential prices are down just 3.2% compared with this time last year. Sydney, however, has bucked the trend. Prices have risen strongly over that two-year period. The fearmongers love to compare Australian real estate with America. The logic goes, if it happened there, it is bound to happen here. But you may as well compare Australia with Mars. The main difference is in the way our banks lend. Our mortgages are fully recourse whereas in the US, they are non-recourse. Default on a home loan here, and the bank will chase you for the outstanding cash and bankrupt you.

Posted by drewster @ 03:13 PM 4 Comments

Who'd have thought?

AOL Money: How house prices are destroying family life

The writer almost gets it with her 3 points but it's one of the comment that nails it for me - the fact that very few can get a mortgage with just one partner's salary nowadays so both have to work. Of course family life isn't what it was.

Posted by melinda @ 01:18 PM 0 Comments

What happens if you are too greedy on prices

Home.co.uk: Recently Reduced

This property has been on the market now since April last year, I am fed up of seeing on the listings in my area. They have now reduced again to 900k, it started at 1375K. More of this to come methinks!

Posted by wdbeast @ 12:31 PM 7 Comments

Won't somebody please think of the children

Daily Mail: Negative equity is back: House price falls leave thousands unable to move

Gemma Watkins is now snared by negative equity. The 27-year-old nurse bought her home in Gloucestershire for £92,500 at the top of the market in 2007. She borrowed £100,500 from Northern Rock on one of its now notorious Together mortgages. This loan allowed you to borrow up to 125 per cent of the value of the house. Miss Watkins used some cash to pay off a £12,500 personal loan and the rest to buy her flat. Her fixed rate comes to an end in May and she is struggling to find another lender. Miss Watkins believes this is because the value of her home has fallen by more than £7,000, and due to the structure of the mortgage, which combines a personal and home loan.

Posted by little professor @ 11:14 AM 8 Comments

A handy cut-out-and-keep guide to your faithful MPC team.

Evening Sub-Standard: The Bank still needs to print more money

Unsurprisingly, the ESS is all in favour of further QE. If you click on the swing-o-meter image you get a nifty little resume of the hawks (what few are left) through to the doves.

Posted by sibley's b'stard child @ 10:52 AM 6 Comments

Finally the penny drops

Daily mail: High house prices destroying family life

wow....tell us something we don't know....we hate inflation,but high house prices are okay?!..fact is inflation of basic life items has being rising out of control for 10 years to 2007 and had boe raised interest rates early on and regulated the banks we would not be in this miss.

Posted by taffee @ 10:37 AM 10 Comments

Tuesday, October 4, 2011

Yet another reliable index for MW.

Hometrack: Falling demand marks change in fortunes for house prices

Oh, I do like this comment - 'As the gap between supply and demand widens, we are likely to see an acceleration in the level of price falls as we head towards the end of the year.'

Posted by markj69 str05 @ 10:44 PM 14 Comments

Light at the end of the European tunnel

Economonitor: Core Europe Sitting Pretty in Their PIIGS Drawn Chariot

Article first published at http://neweconomicperspectives.blogspot.com/2011/10/core-europe-sitting-pretty-in-their.html republished on Roubini Nouriel's Global Economics website seems to point to a way out for Greece which doesn't involve default and at the same time protects the banks... basically the ECB buys up the debt, allowing Greece to remain solvent while pursuing possibly a more relaxed austerity route. Of course, this route wouldn't lead to a financial collapse in Europe and, with it, house prices.

Posted by stuartking @ 09:55 PM 0 Comments

No money to lend you - Sorry!

Reuters: EU preparing bank rescues amid Greece doubts

"European finance ministers agreed on Tuesday to prepare action to safeguard their banks as doubts grew about whether a planned second bailout package for debt-laden Greece would go ahead". "More and more European banks are being shut out of the market and relying on the European Central Bank for liquidity". "All roads now point to a mid-November crunch". For Greece, the deeper-than-forecast recession means public debt will be equivalent to 161.8 percent of GDP this year, rising to 172.7 percent next year, by far the highest ratio in Europe.

Posted by alan @ 09:24 PM 3 Comments

No, it can't affect UK house prices - ignore it!

BBC: Ben Bernanke says US economy 'close to faltering'

"US Federal Reserve Chairman Ben Bernanke has told Congress that the US economy is "close to faltering" and more action may be needed". The US Senate has just begun a week-long debate on a bill that would threaten China, and other countries accused of keeping their currencies unfairly cheap, with trade sanctions (oh, right).

Posted by alan @ 09:13 PM 2 Comments

Tip of iceberg?

Liverpool daily post: Credit card giant MBNA cutting 400 jobs

Parent company Bank of America said it was hopeful the redundancies would be achieved through voluntary means. The operation, which employs 3,500 people at Chester Business Park, was put up for sale by Bank of America in August.

Posted by mark @ 06:31 PM 1 Comments

But what does this mean for the Knox and Jacko trials?

Rents can only go up and up, say LSL rubbing their sweaty palms.

Houseladder: Many people 'struggling to pay the rent'

An increasing number of people in Britain are finding it difficult paying the rent every month, new research has shown. National Debtline, which runs the Money Advice Trust, found a significant swell in the number of people calling in for help regarding issues with rental arrears of late. Indeed, the organisation revealed it has seen an 84 per cent leap in such activity since the very beginning of the global economic downturn in 2007. Joanna Elson, chief executive of the Money Advice Trust, said it is clear people are finding it increasingly difficult to meet rising rent costs. The industry figure stated: "A few years ago many people in today's rent market would be planning on buying their first home, but now it seems they are struggling to even pay the rent."

Posted by sibley's b'stard child @ 02:52 PM 7 Comments

Some good news..

MoneyMarketing: Eurozone crisis to constrain UK mortgage lending for a year

The crisis in the eurozone is already affecting UK mortgage lenders’ funding costs and is likely to restrain mortgage lending for the next year, according to Capital Economics. In a UK housing market update published today, Capital Economics says that while mortgage lending has strengthened in recent months, European financial woes mean a full recovery in lending should not be expected any time soon.

Posted by khards @ 12:37 PM 6 Comments

Activity in the UK construction sector slowed to "near stagnation"

BBC: UK construction activity slows to 'near stagnation'

Activity in the UK construction sector slowed to "near stagnation" in September, a closely-watched survey has suggested.

Posted by mark @ 11:14 AM 0 Comments

Why is MoneyWeek magazine so negative about the housing market?

Planet Property: Why is MoneyWeek magazine so negative about the housing market?

Critique is good ... but so is balance.

Posted by the planet @ 11:02 AM 1 Comments

Well, what are you waiting for, the good ship Titanic leaves in five minutes.

Independent: Ignore the doomsayers, first timers, it's easier than you think

News that it is now cheaper to buy rather than rent across 90 per cent of Britain may rub salt into the wounds of many frustrated first-time buyers (FTBs). But are things really as tough as they seem for those wanting to get that first foot on the property ladder? New figures from property website Zoopla show that falling house prices and a jump in rental demand have meant that the average renter in Britain is currently paying 13 per cent more than the average owner.

Posted by sibley's b'stard child @ 10:00 AM 18 Comments

The Wage inflation is here

BBC: London Tube 5% pay offer 'best in public sector'

Merv's plan to have inflation without wage inflation so it doesnt get out of control goes up in smoke, wage rises mean things will have to cost more pushing up inflation in a vicious circle.

Posted by catdog1121 @ 09:34 AM 0 Comments

Monday, October 3, 2011

Mr Bumble, the Beadle says "NO MORE"

Telegraph: No more Greece concessions, warns eurozone finance ministers

"Eurozone finance ministers have told Greece that the debt-crippled nation will be granted no further concessions despite Athens' admission that it will miss its deficit reduction targets". The prospect of a Greek bankruptcy caused the FTSE 100 to collapse below 5,000 points in early trading Monday. "The latest setback to Greek's public finance has forced the eurozone to decide whether to withhold a second €109bn rescue plan until Athens shows more progress". (Sooner or later the props will fail...same with house prices, IMHO).

Posted by alan @ 10:33 PM 2 Comments

Fat lady starting to sing?

BBC: Can we afford to heap bank losses on creditors?

Franco-Belgian bank appears to be in trouble, despite passing 'stress tests' and cost of insuring Morgan Stanley's debt has soared to 2008 levels... lots more instability in the financial sector and no government looks like it wants to bail them out again. Domino collapse to the banking system might not be far off

Posted by stuartking @ 09:22 PM 2 Comments

Landowners' party strikes again

Guardian: David Cameron unveils 'right to buy' revamp to help economy

David Cameron has outlined plans to boost the "right to buy" council house scheme introduced under Margaret Thatcher, increasing discounts to encourage council tenants to buy their homes. The prime minister also highlighted plans to hand thousands of acres of government land to developers to build homes. Cameron said ""The housing market isn't working. Why isn't working? Because of the debt crisis, the banks are bunged up with debt, so the banks aren't lending... So this government isn't just sitting back, we are rolling up our sleeves and saying right, we're going to hand over government land to house-builders on the basis that they can build now and pay for the land when they sell the homes."

Posted by little professor @ 06:08 PM 18 Comments

Just a reminder

Moneyfacts: More house price falls predicted

The struggling economy and falling consumer confidence are resulting in buyers walking away from the housing market.

Posted by dill @ 02:16 PM 4 Comments

The rubbish from estate agents mouths

Lancashire Evening Post: £30,000 wiped off house prices in city

Kevin Allitt, managing director at estate agents Oystons, said the reported falls in Preston property prices was “absolute rubbish.” He said: “We have just had our busiest three months in the last three years and our biggest problem is that we do not have enough properties to keep up with the demand from buyers.

Posted by mark @ 01:16 PM 11 Comments

Interesting how the government can offer grants for Gyspy sites

Chester Chronicle: Cost of Traveller site in Saughall could cost more than £6million

The council aims to meet the minimum requirement of 32 pitches, up to a possible 45, at a cost of about £150,000 per pitch

Posted by mark @ 11:14 AM 7 Comments

Fudge the GDP - Chinas way

Latimes: Amid poverty, Chinese officials splurge on lavish vanity projects

It's a common phenomenon in China. Like teenagers with their first credit card, local officials armed with cheap state loans and money from land sales are splurging on lavish projects of dubious value. In growth-obsessed China, officials' careers are judged by how well they meet development targets set by Beijing. The easiest and fastest way to juice growth figures is to borrow money and build something.

Posted by mark @ 10:54 AM 0 Comments

Spreadsheets and copy and paste.

The Daily Telegraph: ONS rapped for publishing wrong construction figures

The office of notional statistics only really needs Office '98 to come up with the required numbers. Why was an unexpected number not checked? Perhaps because it was a positive and good number?

Posted by ontheotherhand @ 10:10 AM 5 Comments

Unreliable index boasts new reliable look.

Guardian: House prices fall for 15th month in a row

Further evidence of a double dip in the housing market is published today in a survey by property data specialist Hometrack, which revealed that prices fell by 0.1% in September, the 15th consecutive month of price falls. A sharp fall in the number of new buyers, down 2.6% on the month, and a rise in the gap between asking prices and actual sale prices, point to a deepening recession in the market, Hometrack said. The brief recovery that began in mid-2009, largely in London and the south-east, has petered out and nearly all the house price indicators are now showing an increasingly distressed market.

Posted by sibley's b'stard child @ 10:01 AM 6 Comments

Welcome back! Money creation to continue...

Mail: Bank of England to inject an extra £50bn to prop up economy

''The Bank of England is gearing up for another round of quantitative easing – or printing money – as an insurance against a stagnant UK economy slipping back into recession. City economists are confident that the Bank will pump another £50billion into the economy by next month, possibly even this week. This would expand the size of the QE programme to £250billion since March 2009.''

Posted by hpwatcher @ 06:27 AM 11 Comments

Sunday, October 2, 2011

A bubble > than housing

Benzinga: Stresses Seen at the Outer Surface of the Ballooning Commodities Complex

Commodity prices are not a reflection of true demand. Commodity prices don't reflect true inflationary forces, although they temporarily influence inflation figures. Commodity prices are a reflection of the flow of funds where pension and investment money seeks "diversification" Commodity prices are a terrible hedge against inflation.

Posted by bellwether @ 10:00 PM 40 Comments

Why bother with this silly game?

Reuters: Greece confirms it will miss deficit targets

"Greece will miss 2011 and 2012 budget deficit targets set by the EU and the IMF, according to figures published by the finance ministry on Sunday after the cabinet adopted the draft 2012 budget".

Posted by alan @ 08:52 PM 2 Comments

Novellist Robert Harris on the world of the 'quants'

Mail: Frankenstein finance: How supercomputers preying on human fear are taking over the world's stockmarkets

A vast and highly unstable mixture of debt — trillions of dollars of sovereign, corporate and private borrowing accumulated over decades — is strapped to the advanced Western economies like a suicide bomber’s gelignite vest. The task facing our politicians is somehow to defuse this bomb without inadvertently triggering the sequence of defaults and bankruptcies that would set it off. No wonder they walk around the problem scratching their heads, prodding it gingerly here and there. The horrible truth is dawning that the problem may well not be technically solvable.

Posted by wanderinman @ 07:56 PM 4 Comments

Democracy, what democracy?

BBC NEWS: Hundreds of Occupy Wall Street protesters arrested

More than 700 people from the Occupy Wall Street protest movement have been arrested on New York's City's Brooklyn Bridge, police say. Has the US Spring begun?

Posted by will @ 12:52 PM 11 Comments

Choice words to the 'grassroots'

Independent: Top Tory rounds on core support over green belt

Senior Conservative cabinet minister Francis Maude today describes opposition to the Government's controversial planning reforms – from the National Trust and Tory grassroots – as "b-------" [my edit to get past filter], and says he has no sympathy for their position. The remarks, which will raise eyebrows in Westminster and beyond, appear to be backed by David Cameron, who last night described claims made about the planning reforms as "misleading" and insisted the planning regime has become an "enormous regulatory quagmire".

Posted by wanderinman @ 12:05 PM 0 Comments

Dave Wetzel, land value taxer on the BBC

BBC Politics Show: Today's programme from the South East

Apparently, they've invited Dave W to appear on this show, which is broadcast in Kent, Surrey & East Sussex. Fingers crossed.

Posted by mark wadsworth @ 11:22 AM 1 Comments

Build build build

Sky News: Prime Minister Under Pressure On Economy

One scheme which the coalition hopes will kick-start the economy, in particular the housing market, is a 'build now, pay later' plan for homebuilders. Thousands of acres of publicly-owned brownfield land are to be released by the Government, on which up to 100,000 homes could be built. Developers will be able to pay for land after they have sold properties, bypassing the need to acquire hard to come by finance upfront. It is thought the scheme could support as many as 200,000 jobs, aides have indicated. "The Government owns huge amounts of land, mostly brownfield sites, previously developed, either out of use or being run down in some way," Mr Cameron told The Sunday Times. "There's an enormous opportunity to build homes on those sites."

Posted by drewster @ 10:01 AM 5 Comments

Will they want houses in London?

Telegraph: Myners~HSBC retail bank should go to Paris

"Lord Myners, the former City minister, has publicly suggested HSBC should move its UK retail banking operations to France in a bid to avoid the potential repercussions of the Independent Commission on Banking's final ring-fence recommendations".

Posted by alan @ 08:54 AM 2 Comments

Going cheap!

BBC: David Cameron in pledge to boost 'right to buy' scheme

"He will announce proposals to increase discounts offered to tenants in England who want to buy their council house". "The government's aim is to build one new home - to be let at up to 80% of the market rent - for each property sold". (Watch for other gimmicks at the conference).

Posted by alan @ 08:42 AM 3 Comments

Saturday, October 1, 2011

Reintroduction of slavery now official.

Myintroducer.com: Credit Action releases October debt statistics

Key statistics from the release, which shows month-by-month trends, include: - £55,822 is the average household debt (including mortgages) - £29,546 is the average amount owed by every UK adult (including mortgages) - £175m is the personal interest paid in UK daily - 1,775 people are made redundant daily - 849,000 people have been unemployed for more than 12 months - £22.54m is the daily write-offs of loans by banks & building societies - Every 14.6 minutes a property is repossessed - CAB deal with 8,910 new debt problems each working day - £111,500,000 is the daily increase in Government national debt (PSDN) - £1,278,000,000 is the total value of all purchases made using plastic cards today

Posted by novice pete @ 11:21 PM 0 Comments

We got sold out, they got bailed out!

Business Insider: WATCH LIVE: Lots Of Arrests Of Wall Street Protesters As They Take Over The Brooklyn Bridge

Interesting scene happening right now. Protesters are taking over the Brooklyn Bridge. They appear to be confronting police, and several have been arrested.

Posted by novice pete @ 11:13 PM 0 Comments

Rent hype making landlords too greedy

Upad Newsletter: Rents rise but rent arrears rise much faster

A warning to landlords to resist the temptation to squeeze tenants - some rent better than no rent. Implications down the line for house prices if BTL no longer seen as easy money.

Posted by we're all in this together @ 12:32 PM 0 Comments

Irish property prices set to officially halve by end of next year

Irish Times: How low can house prices go?

Ireland’s property boom was the biggest, and the crash the most violent, and according to statisticians, the total decline since the property-price peak in late 2007 is now more than 43 per cent. Auction figures from auctioneer Sherry FitzGerald published this week, are even worse, suggesting that average prices are down by a huge 58 per cent since 2007. Bank stress testing consultants also expect prices to fall a further 20% globally. Since early 1997 Irish property prices quadrupled in 10 years and only two peer countries have see house price rises of remotely similar proportions and these were Britain and Spain. The US saw a much more modest rise over the same period, of about 130 per cent, which was not unusual internationally.

Posted by enuii @ 12:19 PM 4 Comments

Nothing we didn't already know

FullFact.org: Differing claims on house prices by the Guardian, the Express, and the Mail

Over the last week, various headlines have appeared suggesting hugely different current trends in house prices. Who's right? Can they all be? “House prices surge by 68%”, Daily Express, 27/09/11 “House prices are 'treading water'”, The Guardian, 29/09/11 “House prices fall at fastest rate ever across England and Wales”, Daily Mail, 29/09/11 These three, apparently incompatible and entirely contradictory headlines all appeared in the national press within the space of three days. How is this possible? Are at least two lying? Or are they all just talking at cross purposes?

Posted by khards @ 10:45 AM 3 Comments

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