November 2011 Archive

Wednesday, November 30, 2011

What were house prices in 2002?

Bloomberg: Britons Enduring 13-Year Squeeze on Living Standards, IFS Says

The IFS says: "Adjusted for inflation and based on current prices, median weekly earnings for a couple with two children will be £606 in 2015 compared with £612 in 2002." This should keep up the downward pressure on house pressure, whatever 'fixes' our home-ownerist Government puts in place

Posted by stuartking @ 11:32 PM 10 Comments

Mortgage, anyone?

Daily Telegraph: Britain has entered second credit crunch, confirms Downing Street

British banks have been warned by the Financial Services Authority, the City watchdog, that they must make preparations for the collapse of the single currency. A spokesman for the Prime Minister said: “Clearly there is a very serious situation in the financial markets at this time. “We are experiencing a credit crunch and that central bank action is about trying to mitigate the effects of that credit crunch. They are ensuring they have the capacity to take action.” The eurozone debt crisis has led to growing fears in financial markets about the stability of major European banks.

Posted by stuartking @ 10:36 PM 15 Comments

Big crash on its way, despite today's central bank actions

Economonitor: MORE SECRETS OF THE TEMPLE: Time to Demand Transparency and Accountability of Our Public Stewards

Roubini's website takes a look at what the bail-out cost the US Treasury - they say $29trillion - where the money went and suggest "with virtually no visual benefits to the US economy. Indeed, if anything, the bail-out has made things worse. Concentration in banking has increased. US inequality has risen. The top one-tenth of one percent grabs ever more of a shrinking economic pie. And we are going to crash again." Scary stuff. If this does happen, the world economy will crash and no one (save the very few) will have any money to buy homes

Posted by stuartking @ 10:15 PM 1 Comments

Debt deflation?

Telegraph: Home owners paid back £92bn on mortgages

Home owners paid back £9.15bn more than they took out from their mortgage in the three months to the end of June, the figures showed. This was the most consumers have ever paid back in a three-month period since at least 1970, when the Bank of England started collecting data. Until the financial crisis families have regularly remortgaged their homes and used the money to fund holidays, new cars, school fees or other big purchases. Housing equity withdrawal, as it is technically called, is one of the most important drivers of the economy because the money unlocked from property then ends up boosting consumer spending.

Posted by drewster @ 04:57 PM 13 Comments

Predicted growth in sales, prices increase less than inflation

BBC News: Housing market to pick-up in 2013, says OBR

Housing market activity will surge in 2013 after a stagnant few years, according to forecasts from the Office for Budget Responsibility (OBR).

Posted by caparn @ 04:51 PM 0 Comments

More tinkering around the edges; heaven forfend the obvious be admitted.

Estate Agent Today: Anger as Government gives up on first-time buyers Stamp Duty break

Using my trusty crystal ball i'll foresee the Express' headline in April 2012. 'Homeowner joy as property transactions soar by 50% in March'. Then in May 2012; 'Homeowner gloom as property transactions tumble by 50% in April'.

Posted by sibley's b'stard child @ 04:11 PM 2 Comments


Yahoo: Coordinated global central bank liquidity drive

The central banks of the United States, euro zone, Japan , Canada, Britain and Switzerland announced on Wednesday coordinated global action to provide liquidity to the financial system, lowering the price on existing dollar swaps.

Posted by mark @ 01:32 PM 47 Comments

...and yet another collapse averted......

BBC News: Central banks join forces to ease financial strains

''The central banks of some of the world's biggest economies have announced a programme of co-ordinated action designed to support the global financial system. The US Federal Reserve, the European Central Bank, the Bank of England and the central banks of Canada, Japan and Switzerland are all involved.''

Posted by hpwatcher @ 01:31 PM 6 Comments

Lancashire seems to be a new house hotspot

Lancashire Evening Post: Dozens object to 200 homes

Planners believe up to 200 homes should be built in Lancashire’s countryside, despite vehement objections from dozens of people. The former Ridings depot and 10 fields on the edge of Longridge, near Preston, has been earmarked for the town houses, detached and semi-detached homes, plus offices for up to 100 jobs, a gym and swimming pool, open space and residential apartments with care.

Posted by mark @ 11:02 AM 8 Comments

Another bubbley bubble frothing and foaming

Dailymail: Landlords continue to grab cheap loans but experts warn of 'buy-to-let-bubble'

Landlords are continuing to cash in on rising rents and cheap mortgages — but experts warn that a ‘buy-to-let bubble’ may be looming. As investors snap up properties out of reach of first-time buyers struggling to save for a deposit, experts warn that annual returns from rent will not always be this high — and could fall drastically.

Posted by mark @ 10:42 AM 12 Comments

Tuesday, November 29, 2011

Give money to the public, not the banks

'Feasta': Debt Cancellation without Chaos

We need a debt jubilee, as a first step to correct the system failure that is the current debt crisis. Giving cash to debtors instead of lenders would be effective and fair if those not in debt also received a boost. It needn't go on a consumer binge either we could insulate people's homes or capitalise renewables projects. And here is Steve Keen saying much the same thing on the BBC:

Posted by nickb @ 11:27 PM 24 Comments

Nationwide is still BOBBINS!

Land Registry: October house prices down 0.9 per cent since September: average house price in England and Wales now £159,999

The October 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 +0.3 per cent. The North East experienced the greatest annual price fall of -7.2 per cent.

Posted by mapp1066 @ 06:55 PM 6 Comments

-0.9% MoM, -3.2% YoY

How The Eurozone Debt Crisis Will Affect Us All

Payplan: The Eurozone Debt Crisis Explained

Unless you have been living on the moon for the past couple of months you will be well versed on the impending doom that is a “double dip” recession. But do any of us really understand what this means for each of us?

Posted by justin butcher @ 05:37 PM 2 Comments

Farewell fleecing measure

BBC: Autumn Statement: Stamp duty concession to end

First-time buyers will no longer receive an exemption from stamp duty from March 2012 as the government says the relief is "ineffective". Documents with Chancellor George Osborne's Autumn Statement reveal the view that the tax relief failed to get more people on the property [snake].

Posted by dill @ 05:31 PM 10 Comments

Mervyn suprised again....

BBC news: Bank governor Sir Mervyn King warns of hard times

Best line of this is "We didnt expect energy supplys to increase by 35%". I think Merv needs a lesson in economics, if you devalue your own currency and buy things in other countries currencies guess what your currency buys less so the same thing costs you more. It really is amazing how many times Merv has said he is suprised and something or didnt expect something. How is he still in a job if he is this useless?

Posted by catdog1121 @ 04:28 PM 0 Comments

Even less help for first-time buyers.

AboutProperty: Osborne ends Stamp Duty holiday for first-time buyers

Grenville Turner, chief executive of Countrywide, accused the chancellor of adding "another barrier" for first time buyers struggling to get onto the property ladder. He said: "A positive antidote to assist the vast majority of homemovers and the resale market would have been a Stamp Duty holiday for all homebuyers up to £250,000. “Whilst the measures announced in the government’s housing strategy are a step in the right direction, they only scratch the surface of the fundamental issues that have restricted the housing market in recent years – housing supply and the high level of deposits required."

Posted by phil @ 03:06 PM 0 Comments

You Lucky B*stards - "life of brian"

BBC: George Osborne: Public sector pay rises capped at 1%

"Chancellor George Osborne has announced public sector pay rises are to be capped at 1% for two years, as he delivers his Autumn Statement. The cap follows a two year pay freeze for public sector staff. Mr Osborne also confirmed that UK economic growth would be lower, and borrowing higher, than was forecast during the Budget in March." Every cloud has ..... a cloud!

Posted by techieman @ 01:26 PM 14 Comments

Cut VAT for builders and create 100,000 jobs?

AboutProperty: Builders urge VAT cut for home improvements

FMB calls for VAT cut to help encourage construction jobs.

Posted by phil @ 12:20 PM 0 Comments

Fantasy growth forecasts throw out fabricated calculations

Telegraph: £50bn black hole as UK seen sliding back into recession

Weak growth has blown a £50bn black hole in the Chancellor's deficit reduction programme, according to the Organisation for Economic Co-operation & Development (OECD). The Paris-based think tank's forecast came as it warned that Britain has already begun to slide back into recession and that the Bank of England will have to pump another £125bn into the economy to salvage the recovery. The collapse in growth will trigger a fresh surge in unemployment next year, now forecast to peak at 9.1pc in 2013 – far above the current 8.3pc and putting another 400,000 workers out of a job, on top of the 2.62m already unemployed.

Posted by general congreve @ 12:18 PM 3 Comments

High cal bear food / candid view for once

Telegraph: House prices up? Hang on, weren't they down yesterday?

Quote: "This latest set of Nationwide house price data is about as misleading as it gets. Low transaction levels and low supply have led this data to bear scant resemblance to reality. "Demand is glaringly weak, and as we enter what could potentially be an apocalyptic year for the global economy, it is likely to weaken further. Rising unemployment, collapsing consumer confidence and consistently high inflation do not make for a robust property market."

Posted by voiceofreason @ 11:37 AM 2 Comments

Less is....less!

Telegraph: Europe's shrinking money supply flashes slump warning

All key measures of the money supply in the eurozone contracted in October with drastic falls across parts of southern Europe, raising the risk of severe recession over coming months.

Posted by dill @ 09:37 AM 37 Comments

Flashmans tipping point?

Mail: Fears grow over unemployment figures as economists predict UK's jobless will reach 3m

Unemployment is set to soar by 400,000 between now and 2013 as Britain sits on the brink of a double-dip recession, according to stark warnings from economists.

Posted by happy mondays @ 08:56 AM 4 Comments

+0.4% MoM, 1.6% YoY

Nationwide: November Index

"Commenting on the figures, Robert Gardner, Nationwide's Chief Economist, said: “UK house prices increased by 0.4% in November, taking the annual rate of growth to 1.6%, up from 0.8% the previous month. The price of a typical home is now £165,798."

Posted by phdinbubbles @ 08:14 AM 31 Comments

Monday, November 28, 2011

HPScam and related others

BBC Iplayer: Youve Been Scammed

Episode expires 9:59AM Tue, 29 Nov 2011

Posted by deepak @ 08:13 PM 1 Comments

CML seeks extension for home seller subsidy

FT Advisor: CML seeks stamp duty extension

Government plans to abolish the stamp duty reprieve for the cheapest properties could destabilise an already fragile market, the Council of Mortgage Lenders has warned.

Posted by mombers @ 01:07 PM 4 Comments

Is this where we are heading? Poverty and Families in the Victorian Era

The causes and the effects of poverty on poor families and children in Victorian Britain. This article covers Population increase , Growth of the cities, The search for employment, The housing shortage, Slum housing, Overcrowding, Society's attitude towards the poor. Interesting article.

Posted by khards @ 01:00 PM 9 Comments

A truly broken system

FT: Lowest housing turnover for 40 years

Avg 26 years between moves Keep up the strike you buyers. Victory is not far now.....

Posted by voiceofreason @ 11:42 AM 12 Comments

Crashy Crashy

Land Registry: Biggest Monthly Fall Since Feb 2009

The data for October shows a monthly house price change of -0.9 per cent, which is the largest monthly fall since February 2009. The annual change now stands at -3.2 per cent. This brings the average house price in England and Wales to £159,999.

Posted by rantnrave @ 11:31 AM 13 Comments

" Investors are starting to price in the endgame for the euro"

Bloomberg: Banks Step Up Warnings on Euro Breakup as Moody’s Sees Ratings Threatened

Not if, but when now... - also, note the IMF is denying the La Stampa report about a 600bn bailout plan for Italy

Posted by uncle tom @ 11:25 AM 4 Comments

Prosecuted for NOT cooking the books

Cnbc: Prosecuted for NOT cooking the books

OMG not only has no-one been prosecuted for the biggest financial scandal in world history..the prosecution coming through are for telling the truth

Posted by taffee @ 10:20 AM 4 Comments


Bloomberg: U.K. Home Prices Fall and Worse to Come as Confidence Ebbs, Hometrack Says

U.K. house prices dropped for a seventh month in November and the pace of decline may accelerate as weak consumer confidence erodes demand, property researcher Hometrack Ltd. said.

Posted by dill @ 09:42 AM 3 Comments

London rents fall for the first time since June 2009

Planet Property: London rents fall for the first time since June 2009

Evidence that the London rental market has peaked?

Posted by the planet @ 09:09 AM 0 Comments

Rail Commuters To London Benefit From House Prices

Britain Loans: Rail Commuters To London Benefit From House Prices

According to the Halifax research, residents who travel 1 hour to work gain in house prices that are less that those in London up to 60pc, or £375,000. The study found that paying cheaper dwelling costs compensates the average £4,400 cost of a train ticket per year.

Posted by emily morgan @ 08:39 AM 0 Comments

2011 could see the lowest level of housing turnover in 40 years

MSN: Housing turnover may dip to new low

A property analyst has warned that 2011 could see the lowest level of housing turnover in 40 years, as new figures showed prices dipped again in November.

Posted by estrader @ 07:27 AM 8 Comments

Sunday, November 27, 2011

Pre-Christmas bounce?

CNBC: Euro Higher on Hopes for Progress in EU Debt Crisis

The euro was swept higher by a wave of short covering in thin trade early in Asia on Monday on hopes yet again that European officials would take a major step towards resolving the euro zone debt crisis this week. Euro zone finance ministers will meet on Tuesday where detailed operational rules for the euro zone's bailout fund are ready for approval, documents obtained by Reuters showed. The approval of the rules will clear the way for the 440 billion euro facility to attract cash from private and public investors to its co-investment funds in coming weeks, which, depending on interest, could multiply the EFSF's resources.

Posted by stuartking @ 11:49 PM 2 Comments

Disaster capitalism for landlords

Independent: Head across the Irish Sea for bargain houses

Ireland may be watching its young graduates leave their homes behind in search of work, but many Britons are peering across the Irish Sea looking for a property bargain. With prices at an all-time low, investors hope that the market has hit the floor and want to snap up cheap homes while they can. "Property prices in Ireland are at their lowest since 2003, so now is a great time," says Tom Whale from Rightmove Overseas. From their peak in 2007, average house prices are down by 43%. Owners of flats in Dublin have been hit hardest, seeing a 59% collapse from peak. Outside of Dublin there are even bigger bargains to be had with three-bedroom semi-detached houses in a Midlands area such as Mullingar going for as little as €90,000 down from €250,000.

Posted by drewster @ 08:01 PM 19 Comments

We're all in this together

Observer: On 9 pay council tax in super rich block

the continuing story of onehydepark the world most expensive block of flats

Posted by taffee @ 10:39 AM 24 Comments

Saturday, November 26, 2011

Apparently there is a chance of riots in Europe

Telegraph: Prepare for riots in euro collapse, Foreign Office warns

"British embassies in the eurozone have been told to draw up plans to help British expats through the collapse of the single currency, amid new fears for Italy and Spain." "A senior minister has now revealed the extent of the Government’s concern, saying that Britain is now planning on the basis that a euro collapse is now just a matter of time." "The Italian government yesterday said that in talks with German Chancellor Angela Merkel and French President Nicolas Sarkozy, Prime Minister Mario Monti had agreed that an Italian collapse 'would inevitably be the end of the euro.'"

Posted by blinktoofast @ 02:38 PM 58 Comments

Uncomfortably overvalued

The Economist: House of horrors, part 2

MANY of the world’s financial and economic woes since 2008 began with the bursting of the biggest bubble in history. Never before had house prices risen so fast, for so long, in so many countries. Yet the bust has been much less widespread than the boom. Home prices tumbled by 34% in America from 2006 to their low point earlier this year; in Ireland they plunged by an even more painful 45% from their peak in 2007; and prices have fallen by around 15% in Spain and Denmark. But in most other countries they have dipped by less than 10%, as in Britain and Italy. In some countries, such as Australia, Canada and Sweden, prices wobbled but then surged to new highs. As a result, many property markets are still looking uncomfortably overvalued.

Posted by quiet guy @ 10:45 AM 7 Comments

Some blunt words about debt

Reuters: Britain eats (leverages) its young

Reuters columnist James Saft lays into the recent Firstbuy scheme to tempt first time buyers into buying new properties at high LTV and he doesn't take any prisoners. "Under the plan both builders and the government would contribute funds to partially indemnify lenders against what I am betting are the inevitable losses. Borrowers, who are almost by definition younger and less well off, will still bear all losses, but will be rewarded with the chance to take out the kind of loan which has proven time and again to be a bad idea. This is utterly wrongheaded — the best possible thing that can happen for first-time buyers, and arguably for most Britons, is for housing prices to fall to a level commensurate with earnings."

Posted by quiet guy @ 10:34 AM 2 Comments

Friday, November 25, 2011

They aren't fussed about inflation, are they?

Telegraph: Martin Weale says Bank of England ready to pump more into economy

"Bank of England policymaker Martin Weale has signalled the Bank is ready to pump more new money into the ailing economy through quantitative easing (QE) in February". "He conceded there was a risk that "as in the past, the Bank has understated the degree of persistence in the inflation rate." Inflation is currently at 5pc but the Bank has forecast a sharp fall in 2012 and said it is more likely to be below the 2pc target than above it by 2013-14".

Posted by alan @ 10:07 PM 17 Comments

Contagion spreading

BBC News: Belgium credit rating downgraded by S&P

"We need a reply that is clear and credible if we are to avoid the worst"

Posted by cynicalsoothsayer @ 09:24 PM 5 Comments

Towns turning into Polo mints

Guardian: I'm leaving it: McDonald's quits Rochdale's ailing town centre

Whats the point of building on the outskirts of towns that are rapidly turning into the urban equivalent of polo mints. Get the bulldozers out and turn the likes of Rochdale into something repectable and fit for the 21st century with decent transport links to other town centres walking distance from cosy energy efficient homes in the middle of town rather than on its isolated outskirts.

Posted by enuii @ 09:18 PM 12 Comments

Albert Edwards gets angry about UK/ US House bubble. Central bankers: pursued by a bear

Were the US & UK central banks complicit in robbing the middle classes? Federal Reserve seem to have concluded that the Fed wasn’t responsible for the housing boom that has turned into the biggest bust since the 1930s. He would like to know if these are the same researchers who in 2005 that there was no housing bubble at all.

Posted by will @ 04:45 PM 5 Comments

Going, going, going.... still going....

Finfacts Ireland: Irish house prices at year 2000 level; Irish mortgage approvals at 1971 level

It is likely that increased price discovery over recent months due to high-profile property auctions has increased transparency in the Irish property market, leading to lower prices. These auctions show that, at the margin, transactions are taking place at prices 60%+ below 2006 levels.

Posted by u.r. dunne @ 02:26 PM 0 Comments

Why Milton Keynes is the answer to the economic slump

Planet Property: Why Milton Keynes is the answer to the economic slump

Build more garden cities on green belt land, says Policy Exchange, to solve the growth problem. Oh, and by the way, "The idea higher house prices are mainly due to credit/demand is false."

Posted by the planet @ 11:15 AM 0 Comments

Hungarian debt downgraded to junk too

BBC: Portugal debt ratings cut to 'junk' status by Fitch

Portugal has had its debt rating cut by Fitch to so-called "junk" status, and warned it could be cut again.

Posted by mark @ 10:56 AM 8 Comments

Loads of crappy houses being built everywhere-need quality ones

Lancashire Evening Post: New homes in heart of the city

It is hoped the site would offer homes for first-time buyers in Preston, where the average price of a new-build flat is currently £122,800 and the average price of a new-build house is £187,200.

Posted by mark @ 10:31 AM 8 Comments

Comments to Grant Shapps MP (@grantshapps) on Twitter

Telegraph: Grant Shapps in on-air 'meltdown' over housing figures

Housing minister Grant Shapps angrily rejected claims he attempted to bury bad news on house building with a major policy announcement as he accused the BBC of a "misleading" report during a live interview. Listeners heard Mr Shapps enter into an extended on-air row with John Humphrys, presenter of the Radio 4 Today programme, over the suggestion that he avoided an earlier pre-booked interview about the issue. Mr Shapps was asked by Mr Humphrys about figures showing that the number of social homes being built in England had slowed to a trickle - which were published the day after the Government made a major house-building announcement.

Posted by khards @ 09:58 AM 11 Comments

Latest developments in Britain's ponzi scheme

Telegraph: Number of first-time buyers falls to three-year low

First-time buyers accounted for just 16pc of overall sales made last month compared with 22pc in September, according to The National Association of Estate Agents' (NAEA) market report for October. This is the biggest slump recorded by the NAEA in nearly three years, when first-timers made up just 10pc of the market share in December 2008.

Posted by dill @ 06:35 AM 8 Comments

CEBR jokers at it again

Daily Express: HOUSE PRICES TO SOAR BY 15%

HOUSE prices are set to increase by 15 per cent over the next five years, say leading economists. Douglas McWilliams, chief executive of the Centre for Economic and Business Research, said: “It's important to realise that the UK has a housing shortage, which is shown by the recent rises in rents. In addition more quantitative easing by the Bank of England, means that gradually mortgages will be easier to come by."

Posted by little professor @ 02:09 AM 14 Comments

Thursday, November 24, 2011

Looking ugly

Telegraph: Death of a currency as eurogeddon approaches

"It's time to think what hitherto markets have regarded as unthinkable – that the euro really is on its last legs ... Investors have gone on strike. The Americans are getting their money out as fast as they decently can. British banks have stopped lending to all but their safest eurozone counterparts, and even those have been denied access to dollar funding. The UK hardly has anything to boast of; it's got its own legion of problems, many of them not so dissimilar to those of the eurozone periphery." Trying to predict exactly what will happen next is folly but unless the Eurozone can re-establish credibility soon, things seem unlikely to be good for the UK economy for the next few years at least.

Posted by quiet guy @ 10:19 PM 62 Comments

European Bank Stress Measures Hit New Peaks European Bank Stress Measures Hit New Peaks

Two indices measuring European financial sector risks have hit all-time highs, far exceeding levels reached after the 2008 Lehman default. This indicates a new peak in concerns over banks' ability to repay their own bond market debts

Posted by paul amery @ 09:32 PM 0 Comments

"..the UK may be unable to avoid a self-sustaining fall in house prices"

Mortgagestrategy: UK housing market could fall into US-style vicious cycle

The UK housing market could enter a similar vicious cycle to that seen in the US, where falling house prices destroy equity and create a further downward pressure on prices, according to Capital Economics.

Posted by dill @ 01:21 PM 12 Comments

More QE please

Yahoo: Bleak exports send factory orders tumbling in Nov - CBI

Factory orders fell at their fastest pace in over a year in November due to a slump in euro zone export demand, the CBI's monthly industrial trends survey showed on Thursday. The Confederation of British Industry survey's total order book balance fell to -19 this month from -18 in October, just below expectations of a reading of -18 and the lowest reading since October 2010.

Posted by mark @ 12:20 PM 1 Comments

Add that to 110 mothercare stores lot of empty space

Yahoo: Sir Philip to close 250 Arcadia stores

Sir Philip Green, the owner of Arcadia, has announced plans to close 260 loss making stores - pushing the Topshop to Bhs owner into the red as the retail group made a £250m provision to cover the closures.

Posted by mark @ 11:48 AM 24 Comments

The number of first-time buyers hits a new low

Planet Property: The number of first-time buyers hits a new low

And that's the National Association of Estate Agents talking.

Posted by the planet @ 11:46 AM 0 Comments

Dublin house sells at 17% of peak price

Planet Property: Dublin house sells at 17% of peak price

Now that's what I call a house price crash ...

Posted by the planet @ 11:28 AM 0 Comments

Repossessed US homes going to pot

Planet Property: Repossessed US homes going to pot

What kind of joints are these?

Posted by the planet @ 11:10 AM 0 Comments

Times digs around onehydepark

Treasure island: The times

I feel the article speaks for itself.It says to me that developments like these are everytthing thats wrong with this country and its dysfunctional houseing bubble

Posted by taffee @ 10:46 AM 4 Comments

Keeping UK wages right down

BBC: Net migration to UK in 2010 at record high

'Annual net migration to the UK in 2010 was 252,000 - the highest calendar year figure on record, figures show.'

Posted by hpwatcher @ 10:22 AM 0 Comments

Coming back to bite you Frustrated housing aspiration is a dangerous thing

Latent truth and consequence from Toby Lloyd, head of policy at Shelter. A name to note.

Posted by dill @ 01:01 AM 1 Comments

Wednesday, November 23, 2011

Printy printy time

ZeroHedge: Goldman's Sigma X Hints Who The Next Contagion Target Is

If this turns out, and it's been pretty accurate, the gilts party will be over. The BoE will attempt to support the governments refinancing costs by printing money to buy the gilts. The sells of the gilts will sell GBP to buy USD, and we will see another round of sterling devaluation, and another spike in inflation. It was also a case of when not if, and the when seems like it might be soon. The only question is how long can the BoE fight the market? All very good for HPC

Posted by nod2glod @ 08:49 PM 18 Comments

Commodities to come under further pressure

Wall Street Pit: Jim Chanos - China's banking system extremely fragile

A Chinese slow down is a matter of if not when. The banking system is woefully undercapitalised - even by Western standards! Increasing evidence of systemic excesses ie bad loans. We are talking on a huge scale. Consumer is not picking up the slack. The sucking noise you hear is the commodity index down on the year and 20% off its April peak. Just wait for the vacuum created by a slow down in China!.

Posted by bellwether @ 07:44 PM 2 Comments

House px for car lol lol lol lol lol - so funny

Ebay: Property forsale telford £2500 cash back PX ESCORT COSWORTH,DB7,RS 500,EVO X


Posted by mark @ 04:17 PM 10 Comments

UK flatsharers face highest costs in Western Europ

Planet Property: UK flatsharers face highest costs in Western Europe

One more great thing about the UK housing market

Posted by the planet @ 04:06 PM 0 Comments

It doesn't matter what the government does - UK house prices will fall

MoneyWeek: It doesn't matter what the government does - UK house prices will fall

The government scheme to help first-time buyers is a waste of time. Britain's house prices are going to fall. John Stepek explains why.

Posted by martingreen @ 03:03 PM 7 Comments

If they can sell up

Yahoo: Is it time to sell your European property?

If the euro weakens further then the value of your property will be worth a lot less in pounds. Should those who own holiday homes in Spain, Greece and Italy be looking to sell up, as the crisis engulfing the eurozone deepens? Thousands of Brits own a second home in the countries hardest hit by debt problems

Posted by mark @ 02:43 PM 4 Comments

MPC's David Miles and Cameron at odds over housing and the economy

Planet Property: MPC's David Miles and Cameron at odds over housing and the economy

The government is desperate to boost growth and turns to housing; Miles thinks lower homeownership is no bad thing...

Posted by the planet @ 11:50 AM 0 Comments

Funny how they can move greenbelt when the council have an interest in the development

Lancashire Evening Post: Land to go for business zone

However, the development at Samlesbury would mean the green belt boundary at the site will need to be rolled back to make way for the new zone. South Ribble Council cabinet members have supported the principle of pushing back the boundary – designed to provide a green wedge between the Preston and Blackburn areas.

Posted by mark @ 11:03 AM 13 Comments

Even this government is attempting to stem inflation

Fox news: Venezuela freezes prices of 18 products

The government began implementing the new regulation in the hope of being able to rein in the country's high inflation rate. Among the products whose prices were frozen are natural water, fruit juices, bleach, soap, liquid dishwashing fluids, cleaners, shampoo, deodorants, toilet paper and throwaway diapers.

Posted by mark @ 10:20 AM 5 Comments

Ouch !

Definitely won't recover with such sky-high prices....

Telegraph: Housing market 'unlikely to recover', says Bank of England expert

'The housing market is unlikely to ever recover from the financial crisis and it may prove economically beneficial for fewer people to own property, a senior Bank of England expert warned yesterday.'

Posted by hpwatcher @ 07:40 AM 5 Comments

Tuesday, November 22, 2011

Whoops, apocalypse

Daily Telegraph: UK's total debt forecast to hit £10 trillion by 2015

With public and private sector debt increasing, as forecast by PwC (and the OBR elsewhere), and mortgage interest rates likely to exceed pre-credit crunch levels in the next five years, households (and the economy with it) could be blown up by the debt bombs they are sitting on

Posted by stuartking @ 08:10 PM 13 Comments

Zoopla UK research

Mail: House sellers collectively slash asking prices by £5bn with 40% of all homes for sale seeing at least one cut

"Over 40 per cent of all UK property currently for sale has been reduced in price at least once, data shows. The average discount off the original asking price has reached a new high at over £19,500, as more sellers are struggling to sell their properties, property website Zoopla has found".

Posted by alan @ 07:38 PM 3 Comments

Expect this to spread...higher rates in Europe soon?

Telegraph: Spanish bond yields surge after debt auction

"...Traders and strategists said this trend was likely to continue with banks looking to lighten their exposure to risk going into year-end..." is a now familiar comment. Everyone in Europe seems to have got themselves grossly indebted! How long before these problems work around to Cyprus and Belgium is simply a matter of time, I believe. Any thoughts?

Posted by alan @ 06:36 PM 16 Comments

Is the the "rate of home ownership in Britain inefficiently high"?

Reuters: Home ownership to suffer lasting fall, says Bank's Miles

"The proportion of Britons who own their own homes is likely to be permanently reduced as a result of the financial crisis, Bank of England policymaker David Miles said on Tuesday. Addressing a property industry conference in York, Miles said banks were unlikely to issue many high loan-to-value mortgages even when the economy picks up due to weak prospects for house price growth".and "tighter mortgage lending policies would improve financial stability".

Posted by alan @ 06:28 PM 0 Comments

Wait till 44 to buy your first house

Daily Mail: Bank chief warns housing market will delay ownership until middle age

The proportion of people owning their own home may never return to its peak, according to a top economist - and typical first-time buyers could soon be in their forties. But David Miles, a member of the Bank of England's Monetary Policy Committee, suggested today that having fewer owner-occupiers could make the economy more stable. Mr Miles added: 'I do not believe that the housing market and the mortgage market will get back to where we were in the years leading up to the crisis. I also do not think we should regret that.'

Posted by little professor @ 06:08 PM 2 Comments

MPC member wants less owner-occupiers

Grauniad: Bank of England calls for less owner occupation. The Treasury wants more…

"MPC rate-setter David Miles wants fewer owner-occupiers to increase labour mobility. But the Treasury wants to reflate the housing bubble" Well, they both want to keep the bubble inflated - the government would prefer to do it by underwriting FTBs - this member of the MPC wants to do it with more BTL.

Posted by phdinbubbles @ 05:29 PM 4 Comments

A discount of nearly £3 billion off initial asking prices up and down the country

Yahoo: House prices: sellers drop prices by £20,000

Sellers are being forced to reduce prices in a bid to find a buyer. Two out of five people who are selling their homes are forced to reduce the price they are asking, new figures have shown. Zoopla, which tracks house prices, said that the average asking price reduction had reached the highest level in two years, at nearly £20,000 below the asking price of the property

Posted by mark @ 01:45 PM 7 Comments

I don't remember them saying this as loudly when Labour were in charge, but hey...

Guardian: Housing: Home help

"The housing bubble is at the heart of Britain's economic crisis. For one happy generation, rapid house-price inflation fuelled by ready money and a shrinking supply was a guarantee of previously unimagined riches. By the peak of the boom in 2007, 75% of us owned our own homes. For the lucky ones who got in early it was an investment that doubled in value and delivered a promise of lifelong security. No government will lightly wake the voters from such a dream, and on the evidence of Monday's housing strategy, the coalition is determined to persist in the deceit that we can return to the heady days of a decade ago."

Posted by mark wadsworth @ 01:34 PM 0 Comments

Every cloud has a silver lining

Standard: Foreign cash is a moneyspinner for De La Rue

Well, deleveraging and deflation aside... somewhat worryingly the company that prints the majority of the world's money has print volumes up 12% on the year...

Posted by stillthinking @ 01:31 PM 0 Comments

Released today - convenient.

AboutProperty: Affordable housing starts down 97 per cent in a year

Affordable housing starts in England are down over 97 per cent in the last year according to figures released today by the homes and communities agency.

Posted by phil @ 12:59 PM 0 Comments

More foreigners buying up prime central London

Telegraph: More than half of City of London owned by foreign investors

Overseas buyers have poured into the Square Mile since the “Big Bang” in the 1980s and the financial crisis has exacerbated London’s status as a safe haven for investment. In 1980, just 8pc of the City’s office buildings were held by overseas owners, but this has increased to 52pc this year, according to research commissioned by property company Development Securities. The last “Who Owns the City?” report in 2006 found 45pc of the Square Mile was in foreign hands.

Posted by drewster @ 11:58 AM 5 Comments

ALTER article on freeloading effect of criminalisation of squatting

Action for Land Taxation and Economic Reform (ALTER): Submission to Ministry of Justice Consultation on Criminal Law for Squatting Document information

Excellent argument that criminalising squatting is a transfer of public resources to landowners without them paying. Of course many of the beneficiaries are non residents who don't pay any tax and just use prime property to launder and/or shelter wealth.

Posted by mombers @ 11:58 AM 1 Comments

Getting ready for WAR by the sound of it - More cost to UK taxpayer for oil

Yahoo: Treasury Set To Break Ties With Iranian Banks

"Iranian banks play a crucial role in providing financial services to individuals and entities within Iran's nuclear and ballistic missile programmes, as companies carrying out proliferation activities require banking services. "London is an important global financial centre and the UK's financial restrictions will make it more difficult for Iranian banks to utilise the international financial system in support of Iran's nuclear and ballistic missile programmes.

Posted by mark @ 10:38 AM 29 Comments

Only 10!!!!

Reuters: UK needs 10 years of austerity to recover - think-tank

The London-based think-tank questioned the plans of the coalition to restore growth by creating a building boom, and urged Chancellor George Osborne to stick to his spending cuts, the Telegraph reported. "Slow growth is inevitable given the levels of debt in the economy," Reform was quoted as saying. "Even under the best economic scenario, the programme of austerity should be at least a 10-year project with the first parliamentary term achieving deficit reduction and the second consolidating the gains," Reform said,

Posted by mark @ 10:30 AM 9 Comments

Dont Panic. Dont Panic....panic

Northampton Evening Telegraph: Don’t panic over house prices

"County estate agents are cautiously optimistic about the future, despite prices paid for homes falling by nearly three per cent in the past year." You can taste the desperation.

Posted by thecountofnowhere @ 09:20 AM 0 Comments


Guardian: Global economy risks deflationary spiral, warns Turner

FSA chief critical of the lax regulation in boom years

Posted by dill @ 08:03 AM 17 Comments

Monday, November 21, 2011

But the UK is much more healthy than Europe & the US, isn't it?

Telegraph: Cameron~our plan to cut debt is failing

"David Cameron and his senior ministers have admitted for the first time that there is a danger they will not be able to tackle borrowing on time". You couldn't make it up, could you?..."That would rule out any significant tax cuts before the next election. It also raises questions about the Coalition’s fundamental purpose". "In the latest escalation of the global economic crisis, shares tumbled on Monday as market fears spread from the eurozone to America’s $15 trillion (£9.6 trillion) government debt". "Wang Qishan, the Chinese vice-premier, said global economic conditions remained “grim”. He warned of a prolonged downturn. “The one thing that we can be certain of, among all the uncertainties, is that the global economic recession caused by the crisis will be chronic"

Posted by alan @ 10:17 PM 7 Comments

And now its the turn of...Hungary

Telegraph: Hungary turns to IMF as stress mounts in Eastern Europe

"Hungary has returned cap in hand to the International Monetary Fund after kicking out inspectors last year, becoming the first country in Eastern Europe to succumb to contagion from eurozone debt stress". "Rising bond yields and a weakening forint has forced the country's Fidesz government to swallow its pride and request a "precautionary" credit from both the International Monetary Fund and Europe, reportedly of €4bn b(£3.4bn)". And...wait for it...."Almost two-thirds of mortgages and household debt are in the uber-strong Swiss franc, creating a lethal currency mismatch with the tumbling forint".

Posted by alan @ 10:08 PM 4 Comments

Are you listening, Mr Shapps?

Daily Torygraph: State-backed mortgages are not the answer to the housing market's problems

The announcement that the taxpayer will support first-time home buyers by enabling them to take out 95% mortgages makes little moral or economic sense. The government will act as an insurer, underwriting potential losses to the lenders. The instinctive reaction of many to the announcement was that it bordered on the insane. Have we learnt nothing from the past 20 years of easy credit or from the sub-prime disaster in America? We have created a property bubble that has pushed up prices to absurd levels and now the Government intends to encourage easier lending than the banks themselves are willing to advance. This plan is likely to keep prices artificially high when the young home buyer needs them them to fall to the point where they can realistically find the deposit.

Posted by little professor @ 10:02 PM 5 Comments

Reinflating the bubble

Money Week: David Cameron is mad to spend £400m on the housing market

Everyone's favourite permabear Merryn Somerset Webb offers up her views on today's ill-thought out initiative.

Posted by overnightwill @ 08:11 PM 0 Comments

Has Occupy London Thought It Through?

Frisby's Bulls And Bears: Occupying London

Interviews with some of the protestors ... Some of them sort of get it. But not really ...

Posted by frizzers @ 06:24 PM 6 Comments

Today's announcement doesn't add up

City AM: Let’s not go back to sub-prime loans

Today’s announcement that the government is going to partly underwrite mortgages for first time buyers and move some risk onto taxpayers is a terrible, short-sighted blunder.

Posted by warren @ 05:37 PM 0 Comments

Huge mess for next generation

AboutProperty: Comment: Housing strategy leaves "huge mess" for next generation

Matt Griffith, PricedOut: "The result is that government and the Bank of England, in throwing the kitchen sink at the banking system, put concerns about financial stability over letting the market fall back to a saner level." "This creates a new post-crisis politics: you bail out the group that benefited most from the boom (lenders, home owners, housebuilders) yet leave a huge mess for the next generation to clean up and pay for – in higher rents and higher house prices."

Posted by phil @ 04:37 PM 0 Comments

Remember, remember the U.S. of America

CNBC: Grand US Deficit-Cutting Effort Ends With a Whimper

Washington's most ambitious effort in years to come to grips with its mounting debt is set to end with a whimper Monday as negotiators plan to announce they have failed to reach a deal.

Posted by dill @ 03:40 PM 11 Comments

"We can't afford to rent never mind buy"

BBC: Jeremy Vine discusses the pros and cons of renting

From today's radio 2 Jeremy Vine show - JV discusses the pros and cons of renting (runs from 12 onwards and ends at 12.30)

Posted by jack c @ 03:40 PM 0 Comments

How much do these guys get paid to come up with this stuff at this late hour?!

Zerohedge: Credit Suisse Goes For Broke: Predicts End Of Euro, Escalating Bank Runs On "Strongest European Banks"

" prevent the progressive closure of all the euro zone sovereign bond markets, potentially accompanied by escalating runs on even the strongest banks. That may sound overdramatic, but it reflects the inexorable logic of investors realizing that – as things currently stand – they simply cannot be sure what exactly they are holding or buying in the euro zone sovereign bond markets...One paradox is that pressure on Italian and Spanish bond yields may get quite a lot worse even as their new governments start to deliver reforms – 10-year yields spiking above 9% for a short period is not something one could rule out. For that matter, it’s quite possible that we will see French yields above 5%, and even Bund yields rise during this critical fiscal union debate."

Posted by general congreve @ 03:03 PM 8 Comments

Is this even legal? CPO for me so i can build a house!!!!

Manchester evening news: Council plans to use compulsory purchase order to ensure Co-op masterplan goes ahead

Town hall bosses are preparing to force the sale of a final slice of land which is standing in the way of controversial multi-million pound redevelopment plans. Council chiefs plan to use a compulsory purchase order (CPO) to ensure the Co-op can go ahead with a scheme to re-route the inner ring road

Posted by mark @ 02:31 PM 2 Comments

Cameron - "Hey Shapps, anyway we can beat Japan?!"

BBC News: UK's debts "biggest in the world"

According to the consulting firm, by the end of March this year, the aggregate indebtedness of the UK - that's the sum of household debts, company debts, government debts and bank debts - had risen to 492% of GDP, or almost five times the value of everything we produce in a single year. That compares with 481% at the end of 2008. So the UK's total indebtedness has increased, and is still the biggest relative to GDP of any of the big economies. That said, Japanese indebtedness is pretty much the same size - at the end of 2010, as opposed to the end of March 2011, Mckinsey says Japan's debts were also 492% of GDP

Posted by richy richless @ 01:32 PM 0 Comments

Euro, at least as we know it, over by Christmas?

Sky: Markets Fall As Fears Over French Debt Grow

European stock indices fell for the sixth day in a row as France's credit rating came under threat and political deadlock in the US weighed on markets. The credit ratings agency Moody's said continued elevated borrowing costs for eurozone economies would heighten the challenge for France which holds large amounts of foreign debt. It added that it could "have implications" for the country's prized triple-A credit rating. The FTSE 100 lost nearly 2% in early trading, while its French and German counterparts fell even further. The CAC40 fell 2.4% and the DAX lost 2.8% of its value.

Posted by general congreve @ 01:28 PM 2 Comments

And here's what Labour were saying two years ago...

Guardian: Ministers consider scheme to guarantee mortgages

First time home buyers could be thrown a lifeline under plans being considered by the Treasury to underwrite 'risky' mortgages, allowing people with only small deposits to buy homes. Since the credit crunch took hold, banks have demanded far tougher criteria for lending, asking buyers to provide between 25% and 30% of the price of a home as a deposit. There were 30,000 loans to first time buyers in the first three months of 2009 against an average of more than 100,000 a quarter in the previous decade.

Posted by mark wadsworth @ 12:56 PM 11 Comments

Mixed reaction to housing strategy

AboutProperty: Government housing strategy: Reactions from around the property world

Round up of the reaction to the government's housing strategy announcement.

Posted by phil @ 12:31 PM 0 Comments

Satire says it best

Daily Mash: Housing market is pretty much all we have left, admits Cameron

THE government is to boost the housing market because there really isn't anything else to do, it has been confirmed. David Cameron and Nick Clegg have unveiled a £400m investment to encourage new building and help first time buyers after realising Britain had long since given up on anything that was not ultimately about houses. The prime minister said: "This package will help to reinflate the house price bubble and give mortgages to people who can't really afford them. Unless anyone has any better ideas?

Posted by general congreve @ 12:10 PM 5 Comments

The detail in full

DCLG: Laying the Foundations: A Housing Strategy for England (pdf)

"A radical new strategy to reignite the housing market and get the nation building again was launched on 21 November by the Prime Minister."

Posted by dill @ 10:56 AM 1 Comments

U.S. economy: Time running out for Q3!

Investment Postcards: U.S. economy: Time running out for Q3!

According to Prieur du Plessis, it is clear that to avoid a recession in the U.S. in the first quarter of 2012 the FOMC needs to do something spectacular without hesitation. It can only be Q3!

Posted by prieur du plessis @ 10:32 AM 0 Comments

More comment on 'the strategy'

Telegraph: Falling house prices, not rising Government intervention, are first time buyers’ best hope

Amid a credit crisis caused by excessive debt, much of it secured to overpriced property, the Government now proposes to encourage laxer lending to people with no history of repaying debt so that they can buy overpriced property.

Posted by dill @ 10:23 AM 5 Comments

Long may it continue Major fall in asking prices: Rightmove

Rightmove has reported that the average asking price of a property coming to market has fallen by £7,528 - -3.1% - in a month, the largest monetary fall since December 2007 and third largest percentage fall on record.

Posted by paranoia blue @ 07:44 AM 1 Comments

Sunday, November 20, 2011

-3.1% MoM,+1.2% YoY

Rightmove: November Index

Well, this cheers me up a bit (stolen from rantnrave's post in the forum) However, it was up 2.8% last month and the YoY remains the same at 1.2%.

Posted by phdinbubbles @ 10:43 PM 5 Comments

Big style Euro funded Boom (fake) and Bust (real)

Guardian: Spanish boom town that went bust

Shiny Audis and BMWs that still line the narrow streets of Benalup the town that once boasted the greatest number of luxury cars per head in the south-western province of Cádiz. Growth is zero and unemployment has hit 33% in Cádiz province and in Benalup 1,500 adults are without work. In a country where 46% of the under-25s cannot find employment, Some of Benalup's youngsters attend a training course designed to turn a dozen locals into graphic designers even though these jobs are not plentiful in Benalup, others are handed money by the town hall or given whatever jobs local politicians can invent. "If we have to dig a ditch we do it by hand, rather than with a digger, because that way we employ more people," said councillor Manuel Moguel.

Posted by enuii @ 08:08 PM 0 Comments

Right to buy at increased discount

People: Council tenants to get 50 per cent discounts on right-to-buy homes

Two million council house tenants will be able to buy their homes at half price. Prime Minister David Cameron and his deputy Nick Clegg will unveil a £6billion scheme this week offering 50 per cent discounts.Currently a right-to-buy tenant’s maximum saving is £38,000 off the asking price, which will double to £76,000. And the average discount for a council home which is now £26,000 would jump to £52,000. The Government would also underwrite 95 per cent mortgages to help young couples get their first foot on the housing ladder.

Posted by jack c @ 03:31 PM 14 Comments

Europe from Germany's perspective

Psy-Fi blog: Stuck In A Weimar World?

"In many ways the problems of the Eurozone are hard to understand... the problem is psychological, and is magnified because the Eurozone is made up of independent countries following their own paths. But at the heart of the problem is Germany, the country that has benefited more than any other from the euro and which is now unwilling to accept the consequences of its Faustian pact. For the Germans it’s heads they win, tails we all lose, because they're stuck in a Weimar world." Not quite the doom-laden EU-explodes-tomorrow talk of our eurosceptic press. And gives more strength to the argument that by 2020 the UK will have ditched the pound and maybe (thanks to Germany) booted out some parts of that tax haven they call the City of London, laying bare our relatively weaker economy.

Posted by dude @ 02:25 PM 3 Comments

Moribund mortgage market

Independent: Mortgage lending slide increases expectations that house prices will drop

Gross mortgage lending fell last month from September's two-year peak, adding to expectations that already stagnant house prices are likely to fall as the economy weakens. Figures from the Council for Mortgage Lenders estimated that gross lending was £13.1bn in October, down 4 per cent from the previous month. Lending was 13 per cent up on a year earlier but the figure was boosted by remortgaging as borrowers snapped up fixed-rate deals at near record lows. Lending is still far down on activity levels seen before the recession. The third quarter's £39.4bn of gross lending was well below the £60.7bn in the same period of 2008.

Posted by quiet guy @ 10:34 AM 1 Comments

Under 24s have problems keeping a job, aside from house buying!

Independent: Babyboomers versus Generation X – the great financial divide

"There's a perception those born in the 1940s and 1950s have had it very good, while their children will struggle. Backing up the perception is the fact Babyboomers have benefited from a record period of house inflation and appear to be retiring on gold-plated pensions". Is it true...?

Posted by alan @ 07:34 AM 1 Comments

This will make things worse Council tenants to get right-to-buy at half price

Advance notice of the government's long-awaited housing strategy paper, due to be published on Monday: millions of council tenants would be allowed to buy their homes at half price under government plans to extend the right-to-buy. this is double the discount currently available. Other measures in the package aimed at reviving the housing market and solving the UK homes shortage include restoring rules allowing first-time buyers to be able to apply for 95% mortgages.

Posted by greenmind @ 12:29 AM 0 Comments

Saturday, November 19, 2011

House prices down 49 percent in Dublin since 2007

Bloomberg: Irish Home Loans Arrears Advance to 8.1% as House Prices Fall

"Irish home loans in arrears for more than 90 days rose to 8.1 percent at the end of September as home owners struggle to repay debt following the collapse of the economy’s property boom. A total of 62,970 loans were in arrears for the period compared with 55,763 residential mortgages at the end of June, according to a statement from the Irish central bank today. That compares with 7.2 percent in June".

Posted by alan @ 06:33 PM 2 Comments

A Trade Union for Mortgage Holders - well I never

Guardian: Irish banks face mortgage strikes

Ross Maguire, co-founder of New Beginning; "The nuclear weapon is for borrowers acting in concert and to say that unless proper and sustainable solutions are put in place which are fair and reasonable, then we should not continue to pay under these current conditions".

Posted by enuii @ 04:34 PM 8 Comments

No worries, the ECB is here to help

Bloomberg: Spanish Banks Have $41B of ‘Unsellable’ Real Estate

"Spanish banks, under pressure to cut property-backed debt, hold about 30 billion euros ($41 billion) of real estate that’s “unsellable,” according to a risk adviser to Banco Santander SA (SAN) and five other lenders". " The banks will face increased pressure if Mariano Rajoy becomes prime minister as expected after national elections on Nov. 20. The People’s Party leader has said the “clean-up and restructuring” of the banking system is his top priority as he seeks to fuel economic recovery by boosting the credit supply". But land “in the middle of nowhere” and "unfinished residential units will take as long as 40 years to sell", Pablo Cantos (Mac Group) said.

Posted by alan @ 12:50 PM 3 Comments

Houses to be priced in Euros soon?

Telegraph: Britain 'will join euro before long’, says German finance minister

"Britain will have to abandon the pound and join the single currency “faster than people think”, Germany’s finance minister has said". "He said he “respects” Britain’s decision to keep the pound, but insisted that the survival and eventual stabilisation of the euro will convince non-members to join the currency club. “This may happen more quickly than some people in the British Isles currently believe,” he added".

Posted by alan @ 12:41 PM 9 Comments

The trend isnt your friend!!

Gallup: Gallup Daily: Obama Job Approval

When Obama first got the presidency his approval rating was 70%.... Now the majority of Americans disapprove of how he is undertaking his job. When inaugurated I amongst others said "posion chalice I'm afraid" : The initial optimism is gone. Actually to be fair i think had he been anyone else his approval rate would be much lower. I think he was well intentioned, but naive if he really believed he could sort the mess out. Maybe a little egotistical, but then you have to be in that job ... right? Although it has nothing to do with race, sadly people way to the right might take that view, and as time goes by that may gain some traction. I hope not.

Posted by techieman @ 08:45 AM 2 Comments

Friday, November 18, 2011

What goes up....

Telegraph: China property market continues to slide

Hopes for the global recovery have been dealt a fresh blow by signs that China's economy is coming off the boil, after the country's property market suffered its worst performance this year. "The turning point of China's home prices has come," Shen Jian-guang, an economist at Mizuho Securities, told Bloomberg. "Prices not only fell for new homes and in major cities, but also in secondary cities and in the existing home market." A slowdown would not only hit household wealth, but also the highly active construction industry. A steep fall, and a consequent slide in China's trend rate of 10pc annual growth, would have damaging repercussions for the global economy.

Posted by drewster @ 09:10 PM 0 Comments

Buy to Let Mortgage Regulation Debate

IPINglobal: The Buy To Let Baloney Challenge

Buy to Let has been making a lot of headlines lately in the UK – the rising number of mortgage products available, higher LTVs, and low interest rates all fuelling debate about the sector along with suggestions that regulation might be round the corner for lenders. The mortgage world has hit back at calls for regulation – basically claiming that no-one understands and the calls would damage the industry, citing that regulation would not protect investors and hinder lending.

Posted by stevej @ 04:34 PM 0 Comments

Take back the Land or suffocate

Guardian: Tax, auction and banking: how to release the value of Britain's land

"The UK consists of 60m acres of land, of which two-thirds is owned by 0.36% of the population, or 158,000 households. By contrast, 24m households live on 3m urban acres – just 5% of UK's total acreage. If economist Kate Barker's target of 250,000 homes were built annually for 25 years (creating 6.3m new households) just 1% of England's land would be used up, according to the Home Builders' Federation."

Posted by dill @ 04:07 PM 4 Comments

House building down - surprised?

AboutProperty: Blow to housing hopes as housebuilding falls

Jack Dromey, Labour's shadow housing minister, said: "House building is falling, which is yet more bad news for first time buyers struggling to find a home, the people on housing waiting lists and those paying rising rents in the private rented sector. "In September last year, Grant Shapps [housing minister] said building more homes is the gold standard upon which the government would be judged. Well, the judgement is in and the government is failing."

Posted by phil @ 03:53 PM 0 Comments

It's Not Just Whom You Sleep With

Index Universe: It's Not Just Whom You Sleep With...

...but also whom they are sleeping with, said Warren Buffett in 2008. The risk of financial market contagion is now at the highest level in over 70 years.

Posted by paul amery @ 02:56 PM 2 Comments

Do you really want to be a landlord?

Dailymail: Tenant from hell trashed home leaving landlord with £20,000 clean-up bill... but won't have to pay a penny

A teenager who smashed windows and doors, ripped off the bannister and threw paint on the walls of the house he was renting has been told he won’t have to pay anything towards the cleaning bill. Lee Davis, 18, trashed the four-bedroom property he was renting, causing damage costing £20,000 to repair. But when he was finally taken to court, Judge Howard Crowson told Davis he wanted to make him foot the bill, but it was impossible because he has no money.

Posted by mark @ 02:49 PM 6 Comments

Bad news for consumer spending

AboutProperty: Mixed feelings on what will happen to house prices

Tim Moore, senior economist at Markit: He said: "People renting from private landlords anticipate higher property values in the year ahead, while those owning their home outright expect prices to fall. "These trends bode ill for consumer spending, especially on big-ticket items, since it suggests homeowners will tighten their belts in the face of worries about their asset values while those looking to get onto the housing ladder may feel the need to postpone spending in order to guard against greater deposit requirements."

Posted by phil @ 02:48 PM 9 Comments

Burlusconi got elected before by getting rid of it.

Reuters: Data chief says Italy risks recession, recommends property tax

Much of Italian wealth is invested "in homes, properties, offices, and since it's in real estate, it's a little frozen", Giovannini said. "How do you get this wealth to produce income and growth? The first hypothesis is a property tax, not a one-off tax, but a permanent one." While some of the parties supporting Monti's government in parliament have backed re-introducing a property tax, Berlusconi's People of Freedom bloc has opposed it.

Posted by ontheotherhand @ 02:40 PM 1 Comments

£5 billion a week

Telegraph: A lot more QE to come

This is a brief audio interview with David Blanchard in which he predicts that UK economic growth rates will be poor for years and we will see lots more QE as a consequence. I cannot see much chance of interest rate rises in the next few years if Blanchard is correct. I will post a transcript in the comments section.

Posted by quiet guy @ 02:04 PM 19 Comments

When is this going to happen in the UK

Yahoo: Irish mortgage arrears climb further in Q3

The number of Irish mortgages in arrears for more than 90 days grew 11 percent in the third quarter, figures showed on Friday, highlighting growing strains on the country's banks and adding to pressure for the government to help struggling borrowers. More than one in 10 Irish home loans are not being fully repaid and the situation is deteriorating as unemployment remains stubbornly high and house prices continue to fall.

Posted by mark @ 12:56 PM 7 Comments

'Negotiating with your hands' finally reaches Britain

Guardian: Occupy London takes over empty UBS bank

Protesters take over massive empty building in central London. Police arrive with machine guns. I wonder how much more empty office space there is in the crapital? HPCers should be in favour; if more people start occupying empty buildings for free then rents and prices will surely fall!

Posted by nickb @ 12:36 PM 11 Comments

Spanish lenders hold 308 billion euros of real estate loans

Bloomberg: ‘Unsellable’ Real Estate Threatens Spanish Banks

Spanish banks, under pressure to cut property-backed debt, hold about 30 billion euros ($41 billion) of real estate that’s “unsellable,” according to a risk adviser to Banco Santander SA (SAN) and five other lenders. “I’m really worried about the small- and medium-sized banks whose business is 100 percent in Spain and based on real- estate growth,”

Posted by mark @ 12:31 PM 1 Comments

Anyone remembers 'balanced budget' idea

G Pytel: Budget. What budget?

'Balanced budget' is gone. And "the debt directly generated to rescue the banks in the UK in real economic terms cannot be considered as additional £65 billions on the government balance sheet but as £455 billion to £650 billion lost opportunity costs of the real economy".

Posted by ant @ 12:01 PM 14 Comments

Is this democracy?

Telegraph: German finance minister predicts end of pound as PM meets Merkel

Wolfgang Schäuble says all of EU will have a common currency 'sooner than people in the British Isles' expect as David Cameron arrives in Berlin for tense talks with Angela Merkel. Farage tells it like it is:

Posted by hpwatcher @ 11:19 AM 20 Comments

More Home-Owner-Ist DoubleThink

Daily Mail: 'Nightmare' for Sharron Davies as she buys £1.1m house and finds a 63-bed care home is to be built at bottom of her garden

A tricky one for the Homeys: 1. Sharron Davies is a Home Owner and therefore has priority over everybody else. 2. Old folks (i.e. Daily Mail target audience) Fought In Two World Wars and deserve a decent taxpayer funded retirement and old age care etc.

Posted by mark wadsworth @ 10:47 AM 9 Comments

Debt is good right? farmers have taken on large debts

Yahoo: Wave Of Suicides Among Indian Farmers

He says the farmers have taken on large debts to buy hybrid seeds More than a quarter of a million farmers have killed themselves in the last 16 years in what is the largest recorded wave of suicides in history.

Posted by mark @ 10:38 AM 3 Comments

Funny how many different angles there are for this

Yahoo: House prices to slump as mortgage lending falls

The Council of Mortgage Lenders said that mortgage lending dropped 4pc in October. House prices on course to fall by up to 5pc in 2012 as mortgage lending fails to recover amid the economic uncertainty.

Posted by mark @ 10:31 AM 0 Comments

CML Gross mortgage lending latest

Mortgagestrategy: October gross mortgage lending up 13% year-on-year

Gross mortgage lending totalled £13.1bn in October, a 13% increase on the £11.6bn lent in October 2010, according to data from the Council of Mortgage Lenders. The figure represents a 4% fall compared to September’s gross lending of £13.7bn. Bob Pannell, chief economist at CML, says: “The underlying picture in the housing and mortgage markets has not changed dramatically over recent weeks. “The immediate direction of house purchase activity is a little unclear, although the story for remortgages, with strong year-on-year increases in activity this year, is for the time being more straightforward.”

Posted by jack c @ 10:06 AM 0 Comments

LSL latest report on rent rises

Citywire: UK rents soar to yet another high

Rents rose for the ninth consecutive month in October, bringing the average UK rent to £720 a month, according to LSL Property Services. The cost of renting in the UK hit £720 a month in October, yet another record high, marking the ninth consecutive month that rents have risen. However, at 0.2%, the rate at which rents are increasing is slowing – down from 0.7% in September and 1.2% in August. This is the slowest rate rents have increased in eight months, according to LSL Property Services, which published the new figures. Annual rental inflation also slowed, down from 4.3% in September to 4.1%.

Posted by jack c @ 09:22 AM 6 Comments

Thursday, November 17, 2011

UK House Prices Set To Soar?


FEARS of contagion in Europe intensified today as the debt crisis spread to Spain. Spain was forced to pay nearly 7 per cent to borrow 3.56 billion euros (£3billion) on bond markets. Italian and French borrowing costs also rose as investors feared the countries may default on their debt repayments amid fears the eurozone is on the brink of recession.

Posted by rantnrave @ 10:00 PM 20 Comments

Is it right for unelected technocratic rule?.. How would we like Merv as PM!

The Economist: Have PhD, will govern

Technocrats may be good at saying how much pain a country must endure, how to make its debt level sustainable or how to solve a financial crisis. But they are not so good at working out how pain is to be distributed, whether to raise taxes or cut spending on this or that group, and what the income-distribution effects of their policies are. Those are political questions, not technocratic ones. And they will not go away just because a technocrat has been made prime minister.

Posted by rental john @ 06:25 PM 0 Comments

There is no fast buck to be made from investing in agricultural land

Yahoo: Warning to investors as land banking scams top £200m

Earlier this year, three directors of a land-banking company were banned from running companies for up to 12 years. Their company, Land Strategy Plc, sold plots of land on a 38-acre greenbelt site at Studley in Warwickshire, marketing the plots as having investment potential if planning permission was obtained.

Posted by mark @ 02:57 PM 0 Comments

Slum clearance

Daily Mail: 'If I can't have it, nobody can': Ex-radio presenter smashes his £200k houseboat day before bailiffs can evict him

Mr Mew said: 'We argued we had a shore tenancy, their side said we floated in, so we could float out. But the boat is old and if we tried to move it now, it would just fall apart and sink. We are walking away with nothing. Absolutely nothing,' said Mr Mew. So if the boat in situ is worth £200k (his figures) and the boat itself is useless (won't float) then the £200k must be location value. Presumably he valued his boat on the basis that he doesn't need to pay rent, but if he has to pay full whack rent of £12,000 a year that soaks up the entire rental value so his residual value is £nil. And who owns that location? Well, the freeholders, who want Mr Mew to either pay the full rent or take his boat elsewhere.

Posted by mark wadsworth @ 02:20 PM 9 Comments

Contagion,contagion,contagion kirstys new show

Reuters: Spanish, French borrowing costs climb, contagion builds

Spain and France struggled with government bond auctions on Thursday, throwing into sharp relief the threat of larger euro zone economies succumbing to the debt crisis that began in Greece and is already lapping at Italy's shores.

Posted by mark @ 01:35 PM 3 Comments

Following on from the Telegraph article

Mortgagestrategy: Property firm offers alternative to 100% LTV mortgage

Property firm the Gentoo Group has launched a product allowing people to buy a property without a deposit or mortgage. The product, Genie, is a home purchase plan to help first-time buyers and long-term renters on to the housing ladder. It is currently only available on 60 new-build homes in the North-East but it is believed the company wants to roll it out nationwide and eventually use brokers.

Posted by jack c @ 12:03 PM 4 Comments

Charity said it had witnessed a three-fold rise in the number of

BBC wales: Shelter Cymru says home repossession help 'up 300%'

Shelter Cymru dealt with nearly 23,000 housing problems last year, a record number of which were due to people facing difficulty making mortgage payments.

Posted by mark @ 11:12 AM 0 Comments

Interesting article

Reuters: Real Estate: Why home prices won't bottom out

It's estimated that some 3.4 million foreclosed homes will be on the books of banks and mortgage companies by the end of this year. As regulators, banks, mortgage companies and state attorneys general move sheepishly to unblock mortgage modifications, refinancings and resales, only one certainty prevails: The open market will not be able to properly price every property until all government restrictions are lifted on their sales and re-financing.

Posted by mark @ 11:02 AM 2 Comments

"Many a true word spoken in jest"

Telegraph: Alex Cartoon

But is Alex right?

Posted by wdbeast @ 10:14 AM 4 Comments

The subprime crisis coming to Europe

MoneyWeek: The subprime crisis coming to Europe

Forget the eurozone sovereign debt crisis for a moment. Europe's banks still hold worrying amounts of bad credit and real-estate assets.

Posted by martingreen @ 09:56 AM 0 Comments

Virgin is buying Northern Rock plc (the so called good part of the Bank)

BBC: Northern Rock sold to Virgin Money

Northern Rock is being sold to Virgin Money for £747m, the government has announced. The bank was nationalised in 2008 following its near collapse at the onset of the global credit crisis. The government subsequently split the bank into two, Northern Rock plc, and Northern Rock (Asset Management), into which was placed its bad debt. Virgin is buying Northern Rock plc and has pledged no additional compulsory redundancies for at least three years

Posted by jack c @ 09:40 AM 2 Comments

Stupid is, as stupid does

Telegraph: First-time buyers to get cheaper mortgages, George Osborne to say in autumn statement

The Chancellor is expected to announce plans to underwrite mortgages, which would make it less risky for banks to lend money to people struggling to raise enough for the necessary deposit.

Posted by dill @ 08:53 AM 26 Comments

Vulture culture

Guardian: The City of London isn't a national interest – it's a class interest

In their resistance even to a Tobin tax, captive British politicians ignore the havoc unleashed by overweening finance.

Posted by dill @ 07:19 AM 10 Comments

Wednesday, November 16, 2011

What is the point of Mervyn King

Telegraph: Sir Mervyn King: Britain on the brink of second credit crunch, Bank of England Governor warns

Mervyn King the chief sage of Threadneedle Street warns Britain is on the brink of a second credit crunch as the Bank of England slashes its growth forecasts for the economy and raises the prospect of a double-dip recession. This short to become apparent fact is something that most people with their heads screwed on have know for more than the last four years or so. Anyone who is the slightest bit interested will have seen the classic graphs of previous recessions and knows that the leg downwards after the 'dead cat' is the big one.

Posted by enuii @ 11:01 PM 33 Comments

So, how come house prices aren't falling?

Evening Standard: Family debts 'equal to half of annual income'

"Paul Goodwin, director of workplace savings at Aviva, said: "Incomes have only risen by £46 since January so to make ends meet, we have found that UK families are cutting out luxuries, economising on spending and reducing the typical amount they save."

Posted by alan @ 09:20 PM 5 Comments

Praise for Merv from Paul Krugman

The New York Times: The Very Brave BoE

The Nobel laureate is impressed by Mervyn King's decision to pursue expansion, not contraction, despite 5.2% headline inflation. Bound to be popular here...

Posted by ferox @ 08:42 PM 1 Comments

Surely not - Van Rumpuy and Barroso have this covered

Telegraph: The Bank of England's forecast is too optimistic. What if the euro crisis escalates?

"In the mean time, the UK is heading not just for a slowdown but a second credit crunch. Banks have been unable to fund in some wholesale markets since August. There are numerous warnings of the damage that will have on the economy if the conditions persist".....of course that won't affect house prices, will it ?.... " The good news, though, was that inflation will fall next year – taking some of the pressure off cash-strapped households"....yes, but core inflation is UP according to SKY, yesterday.

Posted by alan @ 08:15 PM 2 Comments

Before the end of the year, that is all I ask.

BBC: War Of Words As Euro's Fate Hangs In Balance

Heated words are being exchanged between world governments as further signs emerge that the euro might not survive its debt crisis. David Cameron has called for the EU's rule book to be rewritten - and has previously promised to take back powers from Brussels. But the British PM's stance has drawn a hostile reaction ahead of his visit to Germany this week. Volker Kauder, the leader of German Chancellor Angela Merkel's political party, said Britain needs to stop "defending its own interests" and do more to help solve the crisis. He also re-emphasised Germany's support for a financial transactions tax, which the British Government sees as an attack on the City of London.

Posted by general congreve @ 05:31 PM 2 Comments

British Gas is among the so-called 'big six' UK energy providers to have recently hiked prices

Yahoo: British Gas Plans To Axe 850 Service Jobs

On the day the UK's unemployment rate climbed to 8.3%, British Gas has announced plans to cut around 850 jobs. The company says the decision follows a review of resource levels in its services business.

Posted by mark @ 12:54 PM 4 Comments

Will house prices continue to defy gravity?

BBC: UK unemployment increases to 2.62m

UK unemployment rose by 129,000 in the three months to September to 2.62 million, as youth unemployment rose above a million. The jobless total for 16 to 24-year-olds hit a record of 1.02 million in the quarter and female unemployment was at its highest for 23 years. The Office for National Statistics (ONS) said the jobless rate hit 8.3%. The number of people out of work and claiming Jobseeker's Allowance rose by 5,300 to 1.6 million in October. The news comes as the Bank of England's governor Sir Mervyn King said Britain's economy could stagnate until the middle of next year. The Bank cut its 2011 and 2012 growth predictions to about 1%, warning the global economic outlook had "worsened".

Posted by jack c @ 12:36 PM 25 Comments

Not directly house related but is USA putting subtle pressure on China

Reuters: Obama boosts U.S. military in Australia, reassures China

"The United States hopes to militarily strengthen alliance relations with Japan in the north and with Australia in the south, with the clear intention of counter-balancing China," Su Hao, the director of the Asia-Pacific Researcher Center at the Foreign Affairs University in Beijing, told the Global Times, a popular Chinese newspaper.

Posted by mark @ 12:33 PM 1 Comments

The great one speaks rubbish again

Yahoo: Bank's King - Economy may stagnate until mid-2012

Britain's economy could stagnate until the middle of next year and inflation is likely to fall sharply, Bank of England Governor Mervyn King said on Wednesday.

Posted by mark @ 11:11 AM 13 Comments

Tuesday, November 15, 2011

How The Mpc Controls Inflation - Official Boe Game

Bank of England Website.: The MPC Inflation Game

Seriously, this is official, you could not make it up.....

Posted by tjw @ 11:59 PM 0 Comments

Inflation Remains High

SKY: Rise In Living Costs Slows As Inflation Falls

"The Consumer Prices Index (CPI) fell from an annual rate of 5.2% in September to 5% in October, according to the latest figures from the Office for National Statistics". "The headline rate of Retail Prices Index (RPI) inflation, which includes housing costs, fell to 5.4% in October from 5.6% in September".....Meanwhile, Sir Mervyn is also expected to confirm that the Bank's UK growth forecast for 2011 will fall to 1% from 1.5%.

Posted by alan @ 08:04 PM 8 Comments

Young buyers 'trapped' in first homes

Daily Mail: 360,000 young buyers stuck with starter homes bought at property peak - with NO chance of moving up

Around 360,000 young people are ‘trapped’ in homes they bought when property prices peaked four years ago, an alarming report has warned. Over the last four years, they have seen an average of £11,000 wiped off the value of the home, amid fears that house prices will continue to fall. The report, from the banking giant HSBC, warns young people face ‘a near impossible’ task to move from their first home on to the next rung of the property ladder.

Posted by little professor @ 06:50 PM 6 Comments

Panicking Chinese developers offering a free Beemer

Planet Property Blog: Want a free BMW?

All you have to do is buy an apartment in the Central Mansions residential complex in Wenzhou, China. A struggling developer in Whenzou, which has one of the weakest markets in the country, is offering the keys to luxury cars to lure the first 150 buyers.

Posted by property addict @ 04:37 PM 0 Comments

Get your renter's hands off our land!

Daily Torygraph: Hands Off Our Land: stop this planning free-for-all, National Trust warns

David Cameron must not use the “smokescreen” of a planning “free-for-all” as a substitute for a proper strategy to boost the economy, the director-general of the National Trust has warned.

Posted by mombers @ 02:15 PM 7 Comments

Looking a bit more reliable

BBC: House prices falling outside London, says DCLG

Average UK house prices fell by 0.7% in September, according to figures from the Department for Communities and Local Government (DCLG). The fall took the average UK house price to £207,326. Prices were 1.4% lower from a year ago. London was the only region where house prices had risen, with prices up by 2.8% in the year to September. By contrast, the largest price falls were in Northern Ireland, where prices were down by 12%.

Posted by mark wadsworth @ 12:36 PM 0 Comments

Housing crisis size of Birmingham

About Property: Another Birmingham needed to meet demand for homes

A new Birmingham is needed to meet the demand for homes say the Federation of Master Builders - Brian Berry, director of external affairs at the FMB, said: "For too long the housing problem has been overlooked with the result that a person buying a house on their own now needs to be near the top 10 per cent of earners in the country and this problem is only going to get worse until the government takes drastic action to revive private house building."

Posted by phil @ 12:00 PM 6 Comments

Thousands could be homeless by Christmas

Yahoo Finance: Thousands could be homeless by Christmas

Every two minutes between now and Christmas Day, someone in Britain will face the prospect of losing their home.

Posted by doomwatch @ 12:07 AM 5 Comments

Monday, November 14, 2011

Under Water

Telegraph: How to deal with negative equity

"People who bought property in 2007 are at risk of falling into negative equity"."By the end of this month 360,000 homes will be worth less than their mortgages, according to HSBC". But..."If you do hand back your keys, your credit rating will be affected for at least six years and remember that lenders can pursue you for up to six years for any money left owing after they have sold the property".

Posted by alan @ 07:34 PM 9 Comments

The new force at the ballot box

Telegraph: Britain 'to become nation of renters'

More than half (54pc) of Britons questioned in a poll commissioned by Grainger, the UK's largest listed residential landlord, expect that in 15 years more people in the UK will be renting their homes than owning.

Posted by dill @ 05:33 PM 6 Comments

UK commercial property is still a bad bet

MoneyWeek: UK commercial property is still a bad bet

Britain's commercial property sector has been picking up recently. But don't be fooled into getting back in, says David Stevenson. There are better bets elsewhere.

Posted by martingreen @ 01:59 PM 2 Comments

Perception that property is cheaper overseas - IT IS Cheaper

Yahoo: Almost 90% would 'consider moving abroad' for better financial prospects

The current recession combined with the perception that property is cheaper overseas and job prospects better collectively accounted for nearly a third of all reasons for emigrating, according to a survey by Skyscanner.

Posted by mark @ 01:22 PM 9 Comments

Comic take on wests debt problem

Aljazeera: The West's tragedy of capital

While Rome burns citizens should not fiddle, but believe another world may be possible and work together for that world.

Posted by who stole my pension? @ 01:03 PM 2 Comments

I'm surprised it's only a third of a million

Independent: The first time buyers trapped in their homes

"A third of a million people who bought starter homes four years ago – just before the property crash – are trapped in their home by falling prices and a flat property market. Those who have started a family and desperately need more space are being forced to make do with cramped conditions, with no hope in sight of being able to afford to move to a bigger home. Research published today by HSBC reveals that unless 2007's first-time buyers have made some substantial savings or overpayments on their mortgage, it could be impossible for them to move up the property ladder."

Posted by mark wadsworth @ 12:10 PM 5 Comments

The Advertising Standards Authority said any endorsement or testimonial must be genuine

Metro: Housing complex advert quotes bogus homeowners

The advert contained endorsements about the development but homeowners were bemused to find them coming from ‘neighbours’ who they didn’t recognise. One beaming couple claimed they loved the social life, while another enthusiastic new ‘resident’ was delighted to not have to worry about maintenance bills.

Posted by mark @ 11:56 AM 7 Comments

Property a poor investment choice for the short to medium term

Telegraph: Survival guide to global meltdown

There are fears that the crisis in the eurozone could spark a second, more serious credit crisis, "like Lehman Brothers on steroids", as some commentators have said. If banks are concerned about who will be left holding debt that can't be repaid, they will quickly draw their horns in and stop lending to each other, as well as consumers and small businesses. This could mean mortgages cost more and become more restricted, said David Hollingworth of brokers London & Country – particularly for those with relatively small deposits or little equity in their home. Mortgage borrowers have been some of the few winners from the current global instability, thanks to low interest rates. But if you are considering remortgaging soon, don't delay.

Posted by quiet guy @ 10:00 AM 3 Comments

View from non-European news corp.

Russia Today: Socializing losses: Trilateral takeover of Europe?

"So again, irrespective of whether debt collapses are public or private, it is always “We the People” who pay because, under the current system, all profits are privatized and all losses are socialized"

Posted by thecountofnowhere @ 08:11 AM 1 Comments

Sunday, November 13, 2011

Robbed, robbed and robbed again

Reuters: UK seeking $80 billion infrastructure boost

Ministers are drawing up plans for a 50-billion-pound housing and road-building programme harnessing private sector money, the plan is designed to prompt a surge of housebuilding and public sector construction projects, including power stations, social housing, super-fast broadband and toll roads. Osborne hopes private investors, frustrated by low returns from government bonds, will invest and wants money held by pension fund managers and insurance companies to fund the infrastructure programme.Just remember this when your private pension statement lands on the doormat and the official figures of 7.0% per annum growth and inflation at 2.5% are quoted in fund projections.

Posted by enuii @ 07:43 PM 12 Comments

Heads you lose, tails you can't win

PropertyWire: UK property rents set to rise more than prices in next five years

Rising demand from those unable to buy their own homes and those reluctant to commit in the current market means that rents will rise significantly more than house prices in the UK over the next five years, according to international real estate adviser, Savills. Competition among renters will drive rents higher, with growth in mainstream rents forecast to rise by 20.5% by the end of 2016. This growth significantly outpaces house price growth which is expected to total just 6% over the same five years.

Posted by drewster @ 07:30 PM 4 Comments

UK Taxes set by Frankfurt? A new ball game!

Reuters: Merkel wants change to EU charter by end 2012

"German Chancellor Angela Merkel is seeking to speed up reform of the European Union treaty and wants all 27 EU member states to give their approval by the end of 2012, government sources said on Sunday"."Merkel has suggested she would like to see the EU have the right to interfere in national budgets in extreme cases where euro zone stability is put at risk. But Germany has stopped short of that in its proposals and asks rather for sanctions for those that breach deficit rules to be written into the treaty"."Herman Van Rompuy, the president of the European Council, is due to report back in December on how limited treaty change proposals might be carried out. The initial aim was to get the amendments ratified by all member states by mid-2013".

Posted by alan @ 05:34 PM 2 Comments

Time to cut taxes for the rich so they can buy houses?

Telegraph: Cameron hit by double whammy on growth and jobs

"Britain is on course for a double economic blow this week, with the Bank of England set to downgrade its growth forecast and youth unemployment likely to hit one million for the first time". "Labour has accused Mr Cameron of dodging criticism over his record. A short parliamentary break means there will be no Prime Minister’s Questions on Wednesday when the figures are released" (Phew!).

Posted by alan @ 01:41 PM 0 Comments

Kill your saviour: currencies' crisis is looming

G Pytel: Published 1 June 2010 (!!!)

If politically invincible Berlusconi is forced out by the, so-called, "financial markets" it's clear something profound is going on. Not to feel sorry for Berlusconi, but it looks like financial fraudsters took over the running of the democracies. It's likely to lead to a sorry end. This article was written well over a year ago and it reads as if it was written today. It's mind boggling that MSM, BBC, FT, The Economist, politicians and policy makers are so late discussing the real issues. What they discuss today - the risk of eurozone break out - was the issue over a year ago. Are all these guys intellectually deficient or, possibly, supporting this massive financiers scam, the 'largest heist in history"? We have to gear up for a nasty result of this mess: this is what we must discuss now.

Posted by ant @ 09:27 AM 14 Comments

Saturday, November 12, 2011

Pushed ahead of February elections

Guardian: Silvio Berlusconi bows out after Italian MPs vote for savage cuts

Silvio Berlusconi has resigned as prime minister of Italy after a historic vote paved the way for a new government in Rome tasked with shoring up the country's economy and taking it off the frontline in the eurozone crisis. With his formal resignation, which was confirmed by the presidential palace on Saturday night, the 75-year-old billionaire brought down the curtain on a government that has played a significant role in taking the European single currency and the global economy to the brink of catastrophe. So Wednesday's (Thu's?) promise that he'd he'd hold elections in February and not stand for re-election wasn't fast enough for someone with more Powers-That-Be points

Posted by blinktoofast @ 09:55 PM 3 Comments

Wonder waht this extreme scenario would do for UK property prices?

Independent: Apocalypse Now?

This article from the Independent is worth a read! A bit 'Hollywood disaster movie' but seems possible to me.....

Posted by phil k @ 01:03 PM 0 Comments

More housing market interference

Mail online: Houses for our heroes: Minister promises to end scandal of homeless war veterans

Housing Minister calls on local authorities to 'positively discriminate' in favour of ex-servicemen....Government investing extra £16million in fund for injured retiring troops..... David Cameron: 'We've got to strain every sinew to make sure we do right by our armed forces'.... Deal struck with credit agency Experian to help soldiers obtain home loans

Posted by jack c @ 10:49 AM 4 Comments

Censored by fear

The Guardian: Can Europe pull back from the brink?

Newsnight's Paul Mason: "Just because the cost of breakup is so great doesn't mean it won't happen. I was leaked some bank research and the sliding scale of banks that went bust was so frightening I decided it was impossible to report without causing panic." ... and, if that happens, no one will lend anything to anyone. That'll send house prices crashing.

Posted by stuartking @ 01:14 AM 1 Comments

Friday, November 11, 2011

It's going to get worse in Euroland.

Guido Fawkes: Jonah Curses France

The king of helpful interjections has piped up this morning. If France wasn’t already in enough trouble, the Honourable Member for Kirkcaldy and Cowdenbeath has thrown his cursed spanner in the works.

Posted by mr g @ 11:29 PM 3 Comments

Smaller than Italy....but a sign of the times

LA Times: Alabama county has filed largest U.S. municipal bankruptcy

"For months, they labored to cut a deal with their creditors. But $4 billion is a deep hole to negotiate out of...and so, with a settlement seemingly out of reach, Jefferson County, Ala., relented this week, and now is tagged with a long-dreaded superlative: On Tuesday, it filed the largest municipal bankruptcy in U.S. history".

Posted by alan @ 10:14 PM 0 Comments

We own land! Give us money!

Housing Excellence: Shapps shows support for struggling homeowners

Splendid piece of DoubleThink: "The Minister made clear that just as the Government is providing help for people wanting to get on the property ladder, a range of support is also available to keep them in their homes and avoid the threat of repossession." It's bad enough subsidising the haves or the have-nots, but subsidising both is madness.

Posted by mark wadsworth @ 01:42 PM 11 Comments

No wonder Oz property is triple priced... not for much longer though

Business spectator: A Chinese omen for Aussie housing

While most of Australia’s commentators are focusing on Europe and the US, the most immediate danger for Australia is what is happening in Hong Kong and China, because it goes straight to the heart of Sydney's – and to a lesser extent, Melbourne's – dwelling market. And of course, lower Chinese demand has already depressed iron ore and other commodity prices.

Posted by john @ 01:36 PM 0 Comments

Think before you rent or lodge!! How about landlord checks

Dailymail: Landlord set 240-volt booby trap for lodger before attacking him with hammer after row over satellite TV

An 'irrational' landlord tried to electrocute his lodger with a booby-trap after an argument over his tenant's satellite TV subscription. Eric Malcolm, from Royston, Herefordshire, wrapped a live 240-volt extension cable round his living room door handle in a bid to electrocute Tony Gilesnan, before hitting the tenant over the head with a hammer.

Posted by mark @ 01:16 PM 0 Comments

'Wish I were a richman, diddle diddle diddle..."

BBC News: Fermanagh businessman Sean Quinn in bankruptcy move

Mr Quinn was reputedly worth 4.72bn euros (£3.7bn) at the height of his business success. It is believed to be one of the biggest bankruptcy orders of its kind ever made in either the United Kingdom or Ireland.

Posted by will @ 12:55 PM 3 Comments

Property Prices Falling

Reuters: China commods gamble heightens property threat

However, there are still plenty of such loans outstanding to smaller trading firms in copper and steel, exposing banks and traders to the risk that the once-frothy property market could start to see a serious correction. The property market, once a favorite of speculators, is now starting to see prices fall and, with them, revenues for those who had invested in developments, impacting the ability of some investors to repay their loans. Some housing projects in Shanghai have already lowered prices by around 30 percent in recent weeks and some developers have run into problems repaying their debt, according to local media reports.

Posted by mark @ 11:14 AM 2 Comments

How will they get out of this one?

Telegraph: New EU mortgage rules could hit house prices

EU plans to regulate Britain’s booming buy-to-let sector could restrict mortgage availability, force landlords to sell and cause house prices to fall. The EU draft directive on Credit Agreements Relating to Residential Property says BTL should be regulated in the same way as owner occupation. That could prevent lenders and borrowers – including existing BTL landlords seeking to remortgage at the end of fixed deals – from taking anticipated rental income into account when assessing how much mortgage is affordable. Instead, EU proposals would bring Britain into line with Continental practice and force lenders to assess BTL in the same way as mortgage applications by owner occupiers on their prime residence; that is, the main criterion would be the borrower's earnings.

Posted by drewster @ 11:08 AM 8 Comments

Hitting the nail on the head

Inside Housing: The debt burden

The government needs to show political courage in its forthcoming housing strategy - or reap the social consequences.

Posted by dill @ 11:05 AM 0 Comments

Property speculation root of all evil........

BBC: South Korea's household debt rises as rates on hold

Household debt averaged 52m won ($46,287; £29,053), compared with 46m won at the end of February 2010. Households have increased their borrowing over the past few years in a bid to invest in the property sector. However, stagnation in property values has raised concerns that prices may be unsustainable.

Posted by mark @ 11:02 AM 0 Comments

Cast a vote

Guardian: Is the rental market working?

The Guardian has asked a number of people with knowledge of the rental industry for their opinions on whether the market is working correctly. What do you think?

Posted by dill @ 10:45 AM 6 Comments

Anything to keep the bubble going

Telegraph: Let pensions fund homes for first time buyers, says CBI

Potential first-time buyers should be allowed to use their pension savings to buy homes, according to a new report on how the boost the housing market. The number of property sales in the UK has crashed since the recession despite 5m people "languishing on waiting lists", the CBI claims today in its Unfreezing the Housing Market study. John Cridland, CBI director-general, said the fall in sales has accounted for a third of the 6pc drop in UK GDP during the recession. Boosting housing sales could be "a major game-changer for growth", he added. Allowing young people access to their pension pot for mortgage deposits, which would help their chances of getting a mortgage, would drive this boost.

Posted by drewster @ 09:24 AM 12 Comments

Thursday, November 10, 2011

Rates going up again, then!

BBC: Eurozone crisis may affect mortgages, brokers say

"Mortgage rates could start to rise again as a result of the turmoil in the eurozone, brokers are warning. Some lenders, including Woolwich, Halifax and Santander, have pushed up their tracker rates for new borrowers." "The rise in Libor is a consequence of the eurozone's problems and the growing anxiety about funds being available to banks"."It does not mean that people looking for mortgages will have to pay thousands of pounds more, but those borrowers expecting rates to fall will have to rethink."

Posted by alan @ 10:28 PM 0 Comments

HPC in 2012?

Bloomberg: U.K. Home Prices to Fall Next Year as Government Cuts Bite, Savills Says

U.K. residential-property values will fall 2 percent next year as government spending cuts sap the confidence of would-be buyers, Savills Plc said". "The steepest declines will be Scotland and northeast England, where prices will plunge 4 percent and 2.5 percent respectively, the London-based broker said in a report today. At the other end of the scale, homes in the U.K. capital will lose 0.5 percent of their value, Savills forecast. The market will start to recover in 2013".

Posted by alan @ 10:22 PM 1 Comments

Crisis explained in plain English

The Register: Eurozone crisis: We're all dooomed! Here's why

We all thought that it was going to be Spain that would go this way next but no, Italy it is. Waffling about on the subject of austerity, of working back into competitiveness, this doesn't work because it won't work quickly enough. It would take years to rebalance the economy, years of job losses and riots and protests. So, what can we do? The one thing that would work and would work fast (within a week if it was actually done), the ECB printing money and buying bonds, is illegal under the treaties. I'm afraid we're all stuffed [unless the ECB pulls its finger out].

Posted by drewster @ 05:49 PM 11 Comments

Stuart Law admits “Our previous prediction of 5 per cent growth this year is no longer tenable"

FTAdviser: Assetz data reveals 0.7% house price drop

UK house prices have fallen again in the third quarter of 2011 with a drop of 0.7 per cent in the past 12 months, research has claimed. Figures from Assetz revealed the annualised average rate of growth for September stood at 0.9 per cent, although annualised growth rates for three and six months revealed a drop of 2.6 per cent and 0.3 per cent respectively. Stuart Law, chief executive of Assetz, said: “Several of the indices reported sharp price falls in August which has had the effect of bringing down price growth in the third quarter.

Posted by jack c @ 05:22 PM 5 Comments

Savills' five-year forecast: rental boom, but house price growth will be eroded by inflation

Planet Property: Savills' five-year forecast: rental boom, but house price growth will be eroded by inflation

Savills ponder the likely impact of weak economic growth and limited access to mortgage finance and predict that rents will boom....

Posted by the planet @ 05:19 PM 0 Comments

QUICK some more QE or something!!!

BBC: Eurozone crisis may affect mortgages, brokers say

"We could be seeing a significant reversal in rates. Over the summer mortgage lenders were competing harder with each other. Now that is changing."

Posted by ontheotherhand @ 02:36 PM 0 Comments

I have been waiting for weeks to post this!

This Is Money: The important three-month sterling LIBOR is not over 1.0%

The important three-month sterling LIBOR was unchanged at 1.00438% on 10 November, its highest level since July 2009. It raised fears over Crunch Crunch II. It rose steadily by fractional amounts throughout 2011 with the fastest rises in February and, even more rapidly, in August, September and October. These were the periods when markets were most febrile. It finally began to stabilise in late October on hopes of a euro rescue deal. Confidence between banks - which LIBOR essentially measures - was tested by fears of rate rises in early 2011 and then Middle East turmoil. But it was the latest panic about a European sovereign debt crisis in July that spurred the biggest LIBOR rise. Rising LIBOR indicates that banks are eyeing each other with increasing suspicion.

Posted by khards @ 02:04 PM 4 Comments

UK Base Rate on hold (yet again)

BBC: UK interest rates remain on hold at record low of 0.5%

UK interest rates have been held at a record low of 0.5% by the Bank of England's Monetary Policy Committee. Worries about the strength of the economic recovery meant that economists had expected rates to remain unchanged. Interest rates have been kept at 0.5% since March 2009. The Bank did not announce any increase in its policy of quantitative easing (QE). Last month, the Bank said it would inject another £75bn into the economy through QE.

Posted by jack c @ 12:06 PM 22 Comments

FTB's vs BTL

FTAdviser: Lobby runs buy-to-let bubble bust scenarios

The booming buy-to-let market may be heading for a bust because of government and lender attempts to help first-time buyers, a lobby group has warned. Andrew Gold, chief operating officer of Mutual One, which is backed by eight building societies, is urging members to prepare their risk strategies to avoid a buy-to-let bubble. Mr Gold said while the private rented sector has been undergoing a resurgence, increasing attempts by lenders and the government to support first-time buyers could cause a BTL crash if investors lose rental income as a result.

Posted by jack c @ 12:03 PM 6 Comments

Not sure how this could snowball and effects on USA economy

Reuters: Alabama county files biggest municipal bankruptcy

The bankruptcy filing by the southern U.S. county will add to concerns about the risks in the $3.7 trillion U.S. municipal bond market, which was hit recently by the high-profile debt crisis in Pennsylvania's capital of Harrisburg.

Posted by mark @ 11:35 AM 1 Comments


Liverpool daily post: Fears as youth employment reaches “crisis levels”

YOUTH unemployment has reached crisis levels, the government was warned yesterday after new figures showed the jobless count leapt by 70% in the Merseyside area in just nine months.

Posted by mark @ 10:51 AM 1 Comments

Small rise in repossessions

BBC: Home repossessions creep up, mortgage lenders say

''A total of 9,200 homes in the UK were repossessed in the third quarter of the year, a slight rise on the previous three months, lenders have said. There were 100 more homes repossessed than during the last quarter, and the same rise compared with the third quarter of 2010.''

Posted by hpwatcher @ 10:40 AM 2 Comments

Desperate flat hunters resort to providing landlords with CVs ... and cake

Planet Property: Desperate flat hunters resort to providing landlords with CVs ... and cake

The joys of renting: one in twenty prospective tenants in the frantic London market are now providing landlords with a CV, and one tenant even offered to bake the landlord a cake...

Posted by the planet @ 10:38 AM 4 Comments

Irish justice minister loses $500,000 in US housing crash

Planet Property: Irish justice minister loses $500,000 in US housing crash

Alan Shatter, the Irish justice minister, was well named...

Posted by the planet @ 10:32 AM 1 Comments

Wednesday, November 9, 2011

Rhianna cuts price of leaky house by over $2m

Planet Property: Rhianna tries to shift leaking house

When storm clouds gather over the housing market you need a very big umbrella - especially when you're trying to sell a leaky house!

Posted by the planet @ 12:39 PM 3 Comments

An application to build 700 homes on greenfield sites is expected to be submitted

Lancashire Evening Post: Neighbours braced for giant new estate plan

An application to build 700 homes on greenfield sites is expected to be submitted in a “matter of days”. Developers Fox Land and Property (FLP) caused shockwaves last week when plans first emerged to create hundreds of homes, shops, a primary school, and a football pitch on a 33-acre greenfield site off Wigan Road, between Clayton-le-Woods, Leyland and Bamber Bridge.

Posted by mark @ 12:14 PM 13 Comments

Every last measure to hang on to a home huh

Yahoo: Rent a room scheme offers £4,250 a year tax free

Growing numbers of households are taking on a lodger in order to earn some extra cash, often to help pay the mortgage. Many of us are feeling squeezed but the rental market remains buoyant, partly because many people can't get onto the property ladder themselves.

Posted by mark @ 10:54 AM 23 Comments

Not sure what this will do to house prices - for sure it will hit confidence

Reuters: Italian yields over 7 percent, world stocks, euro sink

A 7 percent yield is widely deemed as unsustainable and has previously led to bailouts and talk of default in smaller euro zone economies. The euro sank 1 percent against both the dollar and yen.

Posted by mark @ 10:50 AM 21 Comments

A government with some sense

Bloomberg: Hong Kong Government Won’t Relax Housing Curbs, Chief Executive Tsang Says

The Hong Kong government plans to keep curbs on the housing market even after the value of home sales halved last month from a year earlier, Chief Executive Donald Tsang said.

Posted by mark @ 10:26 AM 3 Comments

Greeks should leave Eurozone

G Pytel: Lord Lawson: Greeks should vote "no" in the referndum

The referendum in Greece is off at the moment. But still a sensible advice from Lord Lawson: leave the euro, devalue and recover. The history is full a good examples: Argentina, Iceland to mention the most recent ones.

Posted by ant @ 10:24 AM 4 Comments

A woeful property market

Mindful Money Blog: Shaun Richards: The UK Housing Market stagnates in nominal terms but is falling in real or inflation adjusted terms

Richards is definitely not a HPCer in his outlook towards the role of house prices in the economy: "Lest we forget recoveries from recessions are usually not only accompanied by an improving house market but are in fact at least partly driven by them." Nevertheless, I think it's worth looking at Richard's overview of where the housing market is now - even if he seems to regret that the cost of living might fall for the priced out. The comments are worth a look if you have the time as well.

Posted by quiet guy @ 09:38 AM 1 Comments

Well here it is...

You know who: House prices soar by nearly £2,000 in October as property market makes welcome recovery Read more:

'Low interest rates have been pivotal in bolstering home values, while the re-emergence of 90 per cent loan-to-value mortgages has helped offset buyers concerns somewhat about the direction of the wider economy. 'With rents at record highs across much of the country, buying a home makes excellent financial sense to those who can secure mortgage finance. 'Long-term investors and homeowners have seen the greatest financial benefits of buying property.' He continued: 'Even accounting for the housing market down-turn, the average homeowner has seen their home increase in value by 75 per cent in the past 10 years. 'As long as the UK’s population growth outstrips the supply of new homes, demand for property will mean homeowners will see strong long-term capital appreciation.'

Posted by khards @ 09:37 AM 5 Comments

Are you watching, Merv?

Yahoo! Finance: China's inflation falls on lower food cost rise

Consumer inflation declined to 5.5 percent from September's 6.1 percent as double-digit rises in food costs slowed, government figures showed Wednesday. Lower inflation gives China's leaders leeway to reverse interest rate hikes and other curbs imposed to cool an economy that grew by 9.1 percent in the latest quarter. Those controls squeezed entrepreneurs and fed fears the economy might slow too abruptly at a time when hopes are pinned on China to prop up global growth.

Posted by we're all in this together @ 08:59 AM 1 Comments

Quite original for a news station

Russia Today: Termination of the Economy

Robert Foster in his unparalleled musical manner targets the ailing global economy. How can it be fixed? Does it need to be? Who has the guts to do what is necessary? ­Special guests of the episode are (sort of) grassroots movement leaders Congressman Ron Paul and the Zeitgeist Movement founder Peter Joseph. (And also surprisingly a homicidal supercomputer on a quest to eradicate humanity and save the Earth).

Posted by general congreve @ 12:01 AM 2 Comments

Tuesday, November 8, 2011

Housing market only treading water thanks to government support

Telegraph: FirstBuy helps Persimmon and Bovis

Persimmon, the UK's second biggest home builder, offered a ray of hope to the struggling housing sector as it reported that first-time buyer visitors are up 35pc since July 1. The increase in people trying to get on the property ladder seen over the last six months is due to the launch of the state-backed FirstBuy scheme, the company said. The shared-equity arrangement sees the Government partner with developers to offer a loan covering 20pc of the purchase price, leaving a 5pc cash deposit to be paid by the buyer.

Posted by drewster @ 09:44 PM 4 Comments

Up then down up then down, i'm confused ..

Mail: RICS: House prices fall as sellers start to face reality and accept lower offers Read more:

‘With the chaotic events in the euro area threatening to spillover to the UK and banks still imposing tough conditions on loans to first time buyers, any recovery in sales is still likely to be relatively modest.

Posted by happy mondays @ 08:22 PM 0 Comments

China’s home prices dropped for a second month in October

Bloomberg: China Home Prices to Fall by 10%-30% Next Year, Impact GDP, Barclays Says

China’s home prices will fall as much as 30 percent in the next year, driven by the government’s housing curbs, according to Barclays Capital Research.

Posted by mark @ 03:20 PM 3 Comments

Revealed: the nation's subsidence hotspots

Planet Property: The nation's subsidence hotspots revealed

The postcodes where your most likely to get that sinking feeling also have some of the highest house prices!

Posted by the planet @ 03:08 PM 0 Comments


Lancashire Evening Post: Homes giant vows to battle residents

He says doing so will, “avoid placing the council at risk of significant costs awards against it at appeal which, combined with the council’s own costs, could be in the order of £100,000, which would clearly be a perverse waste of scarce taxpayers’ money in the circumstances.” Wainhomes first submitted an application for the site in 2010.

Posted by mark @ 01:43 PM 17 Comments

The coffin must be well and truly shot with nails

Dailymail: HMRC target buy-to-let landlords as it launches five specialist teams to combat tax evasion

A new taskforce to combat tax evasion by landlords was announced today by HM Revenue & Customs (HMRC). The taskforce will target tax evasion amongst landlords who own and/or rent more than three properties, focusing on North West England and North Wales. A taskforce has also been set-up to target self-employed builders who suppress sales or over-claim expenses in the same areas of the UK.

Posted by mark @ 10:53 AM 15 Comments

Except for London

Citywire: House prices fell again in October, say surveyors

Some 24% more surveyors reported that prices fell rather than rose in the three months to October, up from 23% in September, Rics said. However, more than half of all respondents indicated that prices were stable, and of those who did report a decline almost three-quarters said the extent of the fall was no more than 2% ... Some surveyors attributed this increase to growing realism from many sellers, who appear to be more willing to take offers in order to secure a sale, Rics said. Though they also noted that the buying process is being slowed down by banks, which – for buyers able to access finance – are taking a long time to agree lending terms.

Posted by quiet guy @ 09:24 AM 1 Comments

Monday, November 7, 2011

Putting 1,100 jobs in jeopardy.

Yahoo: Jobs Threat As Best Buy Closes Down UK Shops

Andrew Harrison, the company's regional head, said the move out of the UK was designed to concentrate the group's investment and strategy into its Carphone Warehouse stores "as they offer a higher and proven rate of return".

Posted by mark @ 03:29 PM 7 Comments

And how much will a rise in interest rates wipe off house prices?

Yahoo: Europe could wipe 10pc off house prices, says builder Taylor Wimpey

British house prices could plunge 10pc in a “worst case” scenario arising from the eurozone debt crisis, the chief executive of housebuilder Taylor Wimpey warned. wonder if he will start begging for something soon

Posted by mark @ 01:53 PM 6 Comments

Learnt a lesson then.

AboutProperty: Desperate first time buyers turn to credit cards

Desperate first time buyers turning to credit cards and bank loans for house deposit.i could swear people buying houses with money they don't have has happened before...remind me how that turned out?

Posted by alangrant @ 11:57 AM 0 Comments

Where the State is the Rentseeker

FT: Shops offered £1 rents on hard-up streets

With the number of boarded-up shops proliferating on high streets, retail landlords have become desperate to avoid paying business rates on empty units and are happy to sacrifice the rent. Typically charged at 40 per cent of a shop’s estimated annual rental value, the business rates system has been heavily criticised by retailers and their landlords. Because it operates on a five-year cycle, the system is slow to recognise falls in rents, yet annual increases are pegged to inflation. This means that bills will go up by 5.6% next April at a time when high-street rents in many areas are falling, making it uneconomic to trade from certain locations.

Posted by ontheotherhand @ 11:57 AM 16 Comments

Buying a house can age you by four years

Planet Property: Buying a house can age you by four years

The cheery side effects of buying property: you'll age, lose your sex drive and argue with your other half.

Posted by the planet @ 11:34 AM 0 Comments

Believe it when I see it...

AboutProperty: FirstBuy boost for home ownership hopes

"Almost half of potential first-time buyers think they are more likely to get on to the housing ladder thanks to the government's FirstBuy scheme, according to research by Rightmove." Hmmm - we'll see.

Posted by prop @ 09:56 AM 0 Comments

Now we're bribing them to build...

BBC News: £500m to boost stalled building projects

Some £500m of public money is being made available to private developers in England to help them get housing and commercial projects off the ground. Ministers say projects have stalled due to problems with road access, contaminated land and flood risks.

Posted by rantnrave @ 08:36 AM 9 Comments

+1.2% MoM, -1.8% YoY

Halifax: October Index

Commenting, Martin Ellis, housing economist, said: "House prices in the three months to October were 0.3% lower than in the preceding three months. There was a 1.2% increase between September and October, according to the more volatile monthly figures, continuing the highly mixed monthly picture. Whilst there have been five monthly price rises, four falls and one month of no change, there has been little change in prices during 2011 overall."

Posted by phdinbubbles @ 08:10 AM 22 Comments

Sunday, November 6, 2011

Even Goldman reckons the Euro is Toast

Reuters: Markets abandoning hopes for lasting euro zone solution

"After another week of confusion and turmoil in Europe, investors are ditching whatever hopes they once had for a conclusive solution to the debt crisis. That may foreshadow a gloomy holiday season in markets, especially if wary investors opt to reduce risk in their portfolios and take refuge in U.S. Treasuries and the dollar". "Alan Ruskin, head of G10 currency strategy at Deutsche Bank in New York, said the focus is likely to shift from Greece to Italy fairly quickly in the weeks ahead, and that should mean more market volatility and unwillingness to take on risk. Italy's debt-to-output ratio stands at 120 percent, second only to Greece in the 17-country euro zone, and its borrowing costs are rising." (Doh!)

Posted by alan @ 09:48 PM 8 Comments

Balancing out the Downward Pressure on UK Buyers

Bloomberg: Buyers Seek a Haven in London Luxury Homes

"Luxury-home prices in central London climbed the most in 13 months in October as overseas buyers seeking a haven from the sovereign debt crisis competed for a smaller number of properties for sale, Knight Frank LLP said". "Mario Draghi, head of the European Central Bank, said Wednesday that the euro area faces a recession because of the debt crisis" and Royal Bank of Scotland Group Plc Thursday reported a larger-than-estimated drop in profit after the turmoil eroded securities-unit revenue. The instability helped push luxury-home prices to a record in October, though Knight Frank expects an increase of only 5 percent next year and little change in 2013.

Posted by alan @ 09:38 PM 2 Comments

The classless society as far as debt is concerned

The Debt Advisor: Insolvency Issue

Company liquidations up 6.5% in third quarter, personal insolvencies down but.... read the article.

Posted by novice pete @ 08:22 PM 3 Comments


Guardian: Changes to affordable housing in England mapped

Affordable housing will be up to 80% of average rents for the area. What does this mean for your area? Here's what the effect of 80% of average rents looks like for different housing types across the country. The map shows annual income of a household (in pounds) needed to pay rent at 80% of current prices and the grey areas are where no information is available.

Posted by dill @ 01:30 PM 2 Comments

Saturday, November 5, 2011

Is the crisis having a 'chilling effect' on the economy?

Telegraph: David Cameron ~ 'British economy is getting worse as euro crisis goes unresolved'

"The British economy is getting worse “every day” that the euro crisis goes unresolved, David Cameron has warned, as he told European leaders that the “world cannot wait” any longer for a rescue package to be agreed". Meanwhile..."President Nicolas Sarkozy warned that a deal involving the eurozone and the IMF could take until February to finalise".

Posted by alan @ 02:46 PM 9 Comments

Tenants could be paying third of their income for a room by 2020

Planet Property: Tenants could be paying third of their income for a room by 2020

Happy days ahead ... even renting a room as a lodger is becoming expensive.

Posted by the planet @ 01:13 PM 0 Comments

Financial system: perpetual fraud machine

G Pytel: Debt dynamics

The financial system is really a perpetual fraud machine which holds the taxpayers, to keep coughing up money, by the throat. Banksters treat the taxpayers like loan sharks their victims. Corrupted politicians are nurturing this scam.

Posted by ant @ 11:14 AM 0 Comments

Rents off the scale in London

Daily Mail: Looking to rent? Let battle begin: Prepare for a fight to secure a home in this brutal market

I am looking for a rental property with my partner in North London. We weren’t naive — we knew prices were going to be steep. According to the housing charity Shelter, the average rent for a two-bedroom home in the capital is £1,360 per month — two-and-a-half times the £568 national average. We found a one-bedroom flat for £460 a week in Highbury — a stretch, but good value considering the space and location. We were the first to view and offered the full asking price. The landlord wanted to wait until he had more than one offer and so we waited and waited — until another couple wanted it. Nik Madan, of John D. Wood, sympathises: ‘The market has shifted from the tenant-led situation of two years ago. Now the landlord is king.’

Posted by drewster @ 10:25 AM 16 Comments

End of an era

New York Times: Cuba to Allow Buying and Selling of Property

Cuba announced a new property law Thursday that promises to allow citizens and permanent residents to buy and sell real estate — the most significant market-oriented change yet approved by the government of Raúl Castro, and one that will probably reshape Cuba’s cities and conceptions of class. The law published on Thursday amounts to a major break from decades of socialist housing. For the first time since the early days of the revolution, buyers and sellers will be allowed to set home prices and move when they want. Owners will be limited to two homes (a residence and a vacation property) and financing must go through Cuba’s Central Bank, which will charge fees, which have not been determined. And a tax of 8% will be split by the buyer and seller.

Posted by drewster @ 10:14 AM 1 Comments

More of the same

Reuters: Greek turmoil opens door for London property deals

Property developers and brokers plan to capitalise on an appetite among less wealthy Greeks to move money into the relative safety of London real estate as political and economic uncertainty grips the country. Jones Lang LaSalle , the world's second-largest property consultancy, plans to start marketing London homes in Greece in coming weeks at prices from 250,000 pounds ($398,940), below the price bracket of the wealthy, many of whom have already moved money into London property. "The euro zone crisis means the London market is not just dominated by Far Eastern buyers." The number of wealthy Greeks looking for London properties has soared since the summer's economic turmoil, real estate brokers and developers said.

Posted by drewster @ 10:09 AM 3 Comments

Friday, November 4, 2011

Noam Chomsky eat your heart out

Telegraph: RBS opts for 'buy British' strategy in splurge on gilts

RBS has given 22bn of savers money to the UK government, who have spent it, and have unfunded obligations without number with a debt about to head north of a trillion. This is presented as admirable. I would personally prefer that they lent the money to somebody else for a change. Which bit about governments don't give the money back is so hard to understand?

Posted by stillthinking @ 06:16 PM 1 Comments

There's a new breed of EAs heading our way.

Estate Agent Today: Taxpayers to fund training for estate agency staff

The estate agents apprenticeship academy Bloom is launching government-funded NFoPP NVQs for people already working in estate agents’ and letting agents’ offices. The move is on top of the apprenticeships scheme, also government-backed. The candidates already working in property can be of any age and would be expected to complete the four units by way of self-study. They would also be expected to complete a level 3 NVQ along with ‘function skill’ training in maths and English. The Bloom assessors will visit the employee in the workplace to conduct the NVQ and assist with the learning material. Taxpayers funds the training, assessor and training material with the cost of the actual exams being met by either the employer or the employee.

Posted by sibley's b'stard child @ 04:40 PM 2 Comments

Is the Housing Minister out of touch?

Moneymarketing: Is Grant Shapps out of touch?

Mortgage experts say housing minister Grant Shapps is out of touch with the mortgage market and should focus on reforming stamp duty to kickstart lending......Some commentators have expressed concern that Shapps does not understand the needs of the market. John Charcol senior technical manager Ray Boulger says: “He clearly feels the need to accept these high-profile speaking events, like the BSA conference, and his challenge is finding something to say. I do not think he really believes we are going to have a lot of people taking out 30-year fixes. Making these kinds of suggestions actually make him look out of touch.”

Posted by jack c @ 01:57 PM 7 Comments

Cuba legalises property sales

Planet Property: Cuba legalises house sales

Welcome to boom and bust Cuba... Viva la revolucion!

Posted by the planet @ 12:49 PM 1 Comments

More downward pressure..

Mail: Owning your own home now 'unrealistic' for millions as lenders warn low-deposit  mortgages are over

Millions of young people and families were yesterday warned they may never be able to buy their own home.

Posted by happy mondays @ 12:21 PM 20 Comments

In true HPC style, change is almost here

BBC News: Personal insolvencies fall slightly

The number of people being declared insolvent in England and Wales fell slightly (1%) in the third quarter of 2011... (however) The debt advice charity the Consumer Credit Counselling Service (CCCS) said increasing numbers of people were likely to go bust soon because of high inflation, wage freezes and redundancies. "There are millions of people teetering on the brink financially, whose household budgets are getting harder to manage every month," said Delroy Corinaldi at CCCS.

Posted by rantnrave @ 11:11 AM 1 Comments

Like LVT?

This is London: Judges asked to review Westminster parking fees

Westminster council is proposing to abolish free parking on single yellow lines and parking bays between 6.30pm and midnight Monday to Saturday, and between 1pm and 6pm on Sundays. Parking will cost up to £4.80 per hour. The High Court action is led by Mayfair estate agent Peter Wetherell. "I believe the damage will vastly outweigh the £7 million which the council hopes to rake in from these charges."

Posted by ontheotherhand @ 10:58 AM 5 Comments

Eurozone crisis put US top for overseas investment

AboutProperty: America surprise second choice for buyers

Eurozone crisis is taking its toll on overseas property investment? US leapfrogs France and Portugal for overseas investors says a report by

Posted by phil @ 09:38 AM 0 Comments

For how long?

Telegraph: Falling house prices and low interest rates protect thousands from insolvency

Falling house prices and low interest rates have combined to keep corporate and individual insolvencies lower than expected, according to leading accountants. “With all the doom and gloom in the headlines, you might be surprised to hear that our insolvency department is not that busy,” said Mike Warburton of Grant Thornton. He added: “Low interest rates reduce the pressure on banks and other lenders to act quickly to prevent debts growing larger and limit their losses. “At the same time, the weak housing market and difficulties in obtaining mortgages mean it is hard to sell houses, which are most debtors’ major asset; another reason for lenders to hold fire.

Posted by khards @ 08:39 AM 13 Comments

Why Iceland Should Be in the News, But Is Not

SACSIS: And I thought they'd all died without the support of all that lovely debt

“We were told that if we refused the international community’s conditions, we would become the Cuba of the North. But if we had accepted, we would have become the Haiti of the North.” In the March 2010 referendum, 93% voted against repayment of the debt. The IMF immediately froze its loan. But the revolution, would not be intimidated. With the support of a furious citizenry, the government launched civil and penal investigations into those responsible for the financial crisis. Interpol put out an international arrest warrant for the ex-president of Kaupthing, Sigurdur Einarsson, as the other bankers implicated in the crash fled the country.

Posted by general congreve @ 12:34 AM 7 Comments

Thursday, November 3, 2011

Does this mean low interest rates for the next 3 years?

BBC: ECB cuts interest rates to 1.25%

Draghi said that Europe's financial crisis and a slowdown in global growth meant the euro area faced an "environment of high uncertainty". Eurozone inflation currently stands at 3%, well above the ECB's target of close to but below 2%.

Posted by alan @ 08:42 PM 7 Comments

"The low-income population is being hit by a double whammy of restricted lending and high VAT rates"

FTAdviser: Borrowers’ double whammy shows no sign of abating: BoE

Data from the Bank of England showed yet another fall in mortgage approvals in September, while figures from the Office for National Statistics showed the poorest fifth of households paid 10 per cent of their disposable income in VAT in 2009/2010, with the richest fifth paying 5 per cent....“Total lending is a shadow of what it was at the 2007 peak, and is showing little sign of recovering soon. Lenders are being squeezed at both ends - with consumer confidence at rock bottom, persuading consumers to take on more debt is proving a tough sell. The funding markets lenders use to fuel their loans are still intensely jittery, which is feeding through into more expensive terms offered to borrowers.”

Posted by jack c @ 03:56 PM 6 Comments

UK Household finances deteriorate ‘at record rate’

FTAdviser: Household finances deteriorate ‘at record rate’

An index measuring the financial wellbeing of UK households has witnessed its worst ever decline during this year’s third quarter.The Alliance Trust’s UK Financial Reality index fell from 79.6 to 56.7, taking the measurement of the state of household finance to its lowest level since the end of 2008, Alliance Trust has claimed. Linsey Thomson, senior economic analyst for the Alliance Trust Research Centre, said the index fell below the critical level of 100 indicating that conditions are below the long-run average. She added weaker GDP growth, stock market losses and a continued erosion of household spending power were the main drivers of the deterioration in the period.

Posted by jack c @ 03:51 PM 0 Comments

"House prices have continued to fall as demand has dropped"

FTAdviser: Economy jitters brings house prices down

...the balance between supply and demand is shifting and pushing down house prices... “The evidence is clear that buyers are drifting away from the market in the face of weak consumer confidence and concerns over the prospects for the economy and their household finances. “The proportion of the asking price has also started to slip back and is now at 92.5 per cent. The further it falls the greater the decline in prices.”Anthony Collins, mortgage specialist for Buckinghamshire-based Salisbury Financial Services, said: “The survey reflects the feeling I am getting. “Speaking to estate agents in my area, they are registering fewer people looking to buy, but still have stocks of housing which are proving difficult to move.”

Posted by jack c @ 03:43 PM 0 Comments

High inflation comes back to bite government

BBC NEWS: Ministers 'consider alternatives' to 5.2% benefits rise

The government are now looking at ways to weasel out of paying the hike in benifits and pensions. Maybe if they had kept a tighter leach on Mr King this wouldn't be a problem, we have used inflation to try to negate the cost of the countries debt but if they manage to get out of this rise it will be at the poorest's cost. Simple solution stop letting inflation get out of control to keep up asset prices and allow a proper crash in property prices so we can start again on a sustainable level.

Posted by catdog1121 @ 03:14 PM 0 Comments

Bankers place man runs roughshod over oldest democracy in the world

BBC: Greek crisis: Papandreou 'to offer to resign'

Greek Prime Minister George Papandreou is expected to offer his resignation within the next half-hour, sources in Athens have told the BBC. Mr Papandreou will meet Greek President Karolos Papoulias immediately after an emergency cabinet meeting has finished. He is expected to offer a coalition government, with former Greek central banker Lucas Papademos at the helm. But state TV reported that Mr Papandreou insisted during the meeting that he would not resign.

Posted by general congreve @ 01:51 PM 15 Comments

Root causes vs. triage...

The Renegade Economist: Our Monetary System

Most people assume that the government directly controls the amount of money in the economy....

Posted by neo-serf @ 01:35 PM 1 Comments

Final nail in housing coffin?

Dailymail: Chaos in eurozone means a 70% chance of 'double-dip' recession in UK, says respected think-tank

Chaos in the eurozone has left Britain teetering on the brink of a new recession, a leading think-tank warns today. There is a 70 per cent chance of a ‘double-dip’ in the UK as Europe ‘muddles through’ the debt crisis, according to the National Institute of Economic and Social Research. The probability of another recession would be even higher if Greece tumbles out of the single currency and the crisis spreads to Italy and Spain.

Posted by mark @ 12:29 PM 3 Comments

Deeside was at risk of becoming like a "ghost town"

BBC wales: Old RAF Sealand site set for 5,000 jobs and 1,100 homes

A multimillion-pound master plan to turn Flintshire's old RAF Sealand site into a major housing, retail and commercial park has been unveiled.

Posted by mark @ 11:59 AM 0 Comments

Homeowners warned about leasing roof space for solar panels

Planet Property: Homeowners warned about leasing roof space for solar panels

You can make up to £1k a year renting your roof, but beware of getting burnt ...

Posted by the planet @ 11:11 AM 0 Comments

Newcastle council put Dansky’s firm under a slum landlord exclusion zone

Manchester evening news: Salford slum landlord swindled thousands in benefits scam

He said: "The company had over 200 properties. The business had grown too fast and there weren’t proper managerial controls in place."

Posted by mark @ 10:44 AM 3 Comments

Wildly overpriced new homes now slightly less wildly overpriced

What House: Completed luxury new homes in Bearsden from Bett Homes now discounted by £34,000

"The latest discount from Bett Homes in Scotland will catch many homebuyers' eyes: a massive £34,000 drop in price for luxury family homes at Academy Grove, the company's prestigious development of new homes in East Dunbartonshire. The five-bedroom ‘Sandringham' homes have been reduced to £730,000 from £764,000, are ready to move into and, as a special offer to anyone reserving in November, come complete with landscaped gardens, carpets and curtains."

Posted by mark wadsworth @ 10:39 AM 6 Comments's a crunch time

G Pytel: Greek recovery: Greece doing Iceland?

It seems that Greeks are getting beck to their senses from the Euro madness. And they - or some of them - may become rich too. Not a bad time. But still colones mat be back in Athens...

Posted by ant @ 10:00 AM 4 Comments

Interesting development

Guardian: Lord Foster reveals £50bn Thames Hub project

Architect Lord Foster and consultant Halcrow have produced a proposal for a massive infrastructure project based upon the idea of a new airport in the Thames estuary built upon reclaimed land with attention to infrastructure, energy and housing. On the face of it, this appears to be a potentially promising idea that will help develop the UK economy so if this plan goes ahead, it could be a good thing. What seems likely is that it will also be good news for land owners near the proposed development site.

Posted by quiet guy @ 08:45 AM 18 Comments

Nowhere plans for nobody

Independent: Alarm raised as house building hits its lowest level on record

The number of new homes being built in England is at its lowest level since records began, official figures revealed yesterday, amid growing warnings that a generation of young people is being excluded from the housing ladder.

Posted by dill @ 08:08 AM 17 Comments

Wednesday, November 2, 2011

Clueless Europe turning into some sort of Franco-Germanic dictatorship

Guardian: Greece given €8bn referendum warning by Merkel and Sarkozy

You vill say Yes or you vill not get ze money.

Posted by enuii @ 11:01 PM 3 Comments

Great! Dont worry, we will sort the baby boomers out, again.

BBC News: Pensions: Ministers claim new offer is 'very big move'

No-one within 10 years of retirement will have to work longer or see their pension income decrease as a result.

Posted by mapp1066 @ 08:37 PM 2 Comments

Never heard of them!

Yahoo: Everything Everywhere to axe 600 staff

Everything Everywhere is to axe 600 staff, in the third round of redundancies under its new chief executive Olaf Swantee. The company, formed 18 months ago from the merger of Orange and T-Mobile, said the cuts would affect employees at its sites in London, Bristol, Hatfield and Darlington, who were briefed on Wednesday about the changes.

Posted by mark @ 05:00 PM 4 Comments

Rising house prices = more homelessness

AboutProperty: Shelter sounds Christmas homelessness alert

Interesting quote on yesterday's Shelter figure (35,000 at threat from homelessness this Christmas) Jacqui McCluskey, Homeless Link - "Although it is difficult to say precisely how far rising house prices and rent costs are contributing to increased homelessness, we believe a lack of affordable housing is a significant factor."

Posted by phil @ 04:46 PM 0 Comments

Everything thats wrong in our society

Dailymail: Alan hanson on 1.5 million a year

I thought terry wogan and bruce forsyth on almost a mill was a this...another example of how taxpayers are being sold down the river imo....I though these pundits paid to go on there!

Posted by taffee @ 03:34 PM 11 Comments

One young woman came in with £28,000 worth of debt spread among 36 credit cards

Daily post: North Wales is drowning in a debt crisis

Figures show unemployment is rising across the region with the number of people chasing a vacancy as high as one in 12 in some parts of North Wales. But as more people try to deal with the increasing financial crisis, advice chiefs fear their ability to help could be crippled next year as the Government considers huge budget cuts.

Posted by mark @ 11:12 AM 10 Comments

Sinking feeling

BBC News: Rich world 'pessimistic' but developing world 'upbeat'

The headline says it all. With the possible exception of London, estate agents are going to have a tough time selling property in a stagnating economy with widespread economic pessimism. Unfortunately, this article seems consistent with the theory that we may be looking at a slow death for the property market over the next decade or so rather than a crash.

Posted by quiet guy @ 08:43 AM 1 Comments

Tuesday, November 1, 2011

Let the People Decide

BBC: Greece's Papandreou in crisis talks over bailout revolt

In brief: "Last week, eurozone leaders agreed on a 100bn-euro loan (£86bn; $140bn) to Athens and a 50% debt write-off. In return, Greece must make deep cuts in public spending, slashing pensions and wages and making thousands of civil servants redundant". "Meanwhile, Mr Venizelos was taken to hospital on Tuesday morning, suffering from stomach pains. His office said he was likely to be released by the evening". (Is he throwing a sickie?)

Posted by alan @ 06:23 PM 20 Comments

Why house prices aren't finished falling yet

MoneyWeek: Why house prices aren't finished falling yet

The UK isn't like Japan, argue some pundits, because we haven't seen the same scale of collapse in house and stock prices that Japan did. But all that proves is that UK asset prices could have a lot further to fall.

Posted by martingreen @ 02:36 PM 18 Comments

Up up and away.

BBC: UK economic growth picks up to 0.5%

The UK economy grew by 0.5% in the third quarter of 2011, according to the Office for National Statistics (ONS). The growth in the July-to-September period compared with a 0.1% expansion in gross domestic product (GDP) in the previous quarter. Output of the production sector rose 0.5% in the third quarter, compared with a 1.2% fall previously. Service sector growth was up 0.7%, against a rise of 0.2% in the previous quarter. The ONS emphasised that growth in the second quarter of the year had been dampened by one-off factors such as the extra bank holiday for the royal wedding. As a result of these factors, analysts said the third-quarter figures should not be interpreted as a big economic rebound.

Posted by sibley's b'stard child @ 11:50 AM 4 Comments

Refreshingly un-Home-Owner-Ist

Yorkshire Post: Crisis hits Yorkshire families as housing cost soars

"A MOUNTING housing crisis has left thousands of Yorkshire families homeless as the region’s property prices have increased faster than anywhere else in the country. T'Government has been warned that it is failing to tackle t'escalating problems as figures released today show that owning an 'ome is no longer an option for many in the region. T'average house price in Yorkshire has risen to £161,466 – an increase of nearly £8,000 in just 12 months – while t'average income is less than £19,700. House prices in Yorkshire have risen faster than in any other region and almost four times faster than regional incomes in the past decade."

Posted by mark wadsworth @ 10:59 AM 3 Comments

Confidence in the housing market weakens

Planet Property: Confidence in the housing market weakens

More people expect house prices to fall rather than rise over the next year, according to the Halifax Housing Market Confidence tracker.

Posted by the planet @ 10:54 AM 0 Comments

+0.4% Mom +0.8% YoY

Nationwide: October Index

Commenting on the figures, Robert Gardner, Nationwide's Chief Economist, said: “UK house prices increased by 0.4% in October, lifting annual house price growth into positive territory for the first time in six months. The price of a typical home was 0.8% higher than October 2010."

Posted by phdinbubbles @ 07:13 AM 20 Comments

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