April 2012 Archive

Monday, April 30, 2012

They're coming to Britain too

NY Times: Brain Drain Feared as German Jobs Lure Southern EuropeanS

While much of southern Europe is struggling with soaring unemployment rates, a robust Germany is desperate for educated workers, and it has begun to look south for the solution. In the last 18 months, it has recruited thousands of the Continent’s best and brightest, a migration of highly qualified young job-seekers that could set back Europe’s stragglers even more, while giving Germany a further leg up. One of those is Cristina, 36, a newly arrived engineer from Spain, where unemployment just hit a depression-level 24.4 percent. She is working at an industrial company in Germany. For the most part, engineers are being offered twice the salaries they could make in Spain, though taxes are higher in Germany.

Posted by drewster @ 09:39 PM 2 Comments

Cameron's housing boom takes off

Daily Mail: First buyer to benefit from Cameron's housing plan tells of joy at her big move Read more: http://www.thisismoney.co.uk/money/mortgageshome/article-2136693/First-buyer-benefit-Camerons-housing-plan-tells-joy-big-move.html#ixzz1tYPjtqgG

Heena Rai, 27, is the first buyer to complete a NewBuy purchase, moving into a two-bedroom flat on the Bovis Homes Oasis development in Hampton, Cambridgeshire. She had not heard about NewBuy until one of the sales agents for the flat mentioned the scheme. Heena signed up for a NewBuy loan with Nationwide Building Society and putting down a five per cent deposit on the £112,000 property meant she could use some of her savings to cover the costs of furnishing her new home. Yipee, new curtains! Just around the corner, she could have bought a similar two-bed flat for £86,950, gazumping the current offer of £82,500. http://www.connells.co.uk/buy/property-details?r=HAH302148

Posted by stuartking @ 08:39 PM 19 Comments

Change or die

Huffington Post: Why Societies Fail: The 'Other' Consequences of Debt

An interesting blog posting on the Huffington Post website from the American Anthropological Association, which looks into debt and growth. It doesn't directly deal with house prices but explains rather neatly, I think, why prices of anything cannot keep going up without adding to debt to support those price rises. Unless there is major change in the way societies operate, "we face the continuing choice between periodic economic collapse or rising inequalities and social chaos." It reminds me of Nouriel Roubini's article on Project Syndicate last year, entitled "Is Capitalism Doomed" http://www.project-syndicate.org/commentary/is-capitalism-doomed-

Posted by stuartking @ 08:06 PM 2 Comments

Shock, horror, unexpected (2)

Telegraph: Mortgage rate misery for one million borrowers

"The majority of victims of this unprecedented affront to every Englishman's main asset are Halifax customers, who could typically find themselves paying nearly £200 extra a year - that's £4 a week - following a series of recent rate rise announcements from rapacious lenders, who are probably motivated by envy of the noble landowner. The Co-operative Bank, Clydesdale Bank and Yorkshire Bank are also among those raising rates from tomorrow, blaming the weak economy and the increased cost of funding a mortgage. Fears have been raised that hard working, hard pressed freeborn Englishmen could struggle to switch to a better deal as lenders have already started tightening their borrowing criteria, triggering a fall in the proportion of mortgages being approved."

Posted by mark wadsworth @ 05:14 PM 8 Comments

Shock, horror....Unexpected?

Daily Express: HOMEOWNERS SUFFER AS MORTGAGE HIKE KICKS IN

MORTGAGE payments will climb for more than a million homeowners in Britain tomorrow as lenders bump up interest rate charges. Among the worst hit will be 850,000 Halifax customers, many of whom may have to pay nearly £200 extra a year. Yorkshire Bank, Clydesdale Bank, Co-operative Bank and the Bank of Ireland will all bring in rate hikes. Earlier this month 10 lenders announced plans to raise rates from May 1. Some claimed a weak economy and the growing cost of funding a mortgage had compelled them to act. But falling house prices and stricter borrowing criteria have raised fears that homeowners could find it harder to swap to cheaper deals. Stuart Gregory, of Lentune Mortgage Consultancy, said: “People think they can wait until the Bank of England raises base rates......

Posted by khards @ 05:05 PM 6 Comments

Australians aren't Convinced of our Recovery

BBC News: Clydesdale and Yorkshire banks to axe 1,400 jobs

It blamed the fall on deteriorating commercial property loans and an increase in the cost of funding after Clydesdale's credit rating was downgraded last September. Hmmm, not looking so good.

Posted by str 2007 @ 12:02 PM 0 Comments

Quick, look over there!

Independent: Eurozone crisis has a long way to go, warns Cameron

David Cameron issued a stark warning yesterday that the eurozone is facing a renewed threat of collapse as he blamed economic woes on the Continent for Britain's double-dip recession. In comments which will infuriate other European leaders ahead of elections in France and Greece next weekend, the Prime Minister said Europe was not "anywhere near half-way through" its currency crisis. And he predicted that the euro could yet fall apart as countries such as Spain, Greece and Italy struggle to cope with the economic constraints imposed upon them.

Posted by general congreve @ 11:46 AM 3 Comments

Government announce taskforce to tackle "beds in sheds"

Planet Property: Government announce taskforce to tackle "beds in sheds"

A new national taskforce will be set up to tackle back garden slums rented out illegally to migrants ...while a shed in Highgate goes on the market for £259,950...

Posted by the planet @ 11:24 AM 0 Comments

Mortgage prisoners, forced sellers and now hijacked property

Estate Agent Today: Watchdog warns of growth in property hijacking

The Financial Services Authority has sent out a warning about ‘property hijacking’ – the practice whereby fraudsters try to raise mortgages on empty properties that they do not own. The FSA says it has seen an increase in cases of property hijacking. The warning has gone out to smaller mortgage broking firms, but agents and landlords should also be aware of the potential for fraud. In its smaller firms regulation round-up for April, the FSA warns mortgage brokers: “There have been attempts by fraudsters to raise mortgages on unencumbered properties which they do not own – property hijacking

Posted by sibley's b'stard child @ 11:02 AM 2 Comments

Vampire squid still active

Reuters: Goldmans jim o'neill approached for boe job

OMG goldman sachs LOBBYED for o'neill to be approached...5 years on from the credit crunch caused by the likes of goldman sachs and the master of the universe still got their fingers in all pies.Until this stops,nothing will change

Posted by taffee @ 10:16 AM 1 Comments

Another serving of yesterday's bear breakfast

City AM: Double dip set to push house prices lower

HOUSE prices slowed to a crawl this month and will slump again through the second half of 2012, a new report warns today. The double dip recession is dragging down demand and consumer confidence is draining out of the market, according to Hometrack, just as supply is starting to pick up. Prices rose just 0.1 per cent in April, down from 0.2 per cent in March, the survey of estate agents found. London remained the strongest region with prices rising 0.3 per cent, while the South East saw increases of 0.1 per cent and every other area saw stagnation or decline.

Posted by mark wadsworth @ 09:37 AM 2 Comments

Hometrack analysis

Bloomberg: U.K. House Prices Rise in Demand Boost That May Fade

"U.K. house prices rose in April for a second month, according to Hometrack Ltd., which said gains may not be sustained as demand fails to keep up with supply. Values rose 0.1 percent from March, when they increased 0.2 percent, the London-based property research company said in an e-mailed report today. An indicator of demand rose at half the pace seen in the previous month.

Posted by alan @ 08:29 AM 0 Comments

Return of the Comedy Club

Assetz: UK house prices grow by 3% in first quarter

Assetz House Price Watch reveals that the housing market has had a strong start to the year despite continued economic gloom, with a 3% rise in house prices since the end of last year. Stuart Law, Chief Executive of Assetz, said: “The year has got off to a strong start. The UK buy to let community is still one of the main beneficiaries of this double dip recession, with the overall depressed mortgage market driving the private rented sector onwards and upwards. We continue to see strong demand from both experienced and first time investors looking to buy in this strong market.”

Posted by little professor @ 08:17 AM 2 Comments

Unfortunately

Guardian: Chancellor, this new recession isn't Labour's mess – it's yours

Unfortunately although this simply isn't true, the Coalition have absolutely failed to offload what will be a generational decline onto the root cause, New Labour. They cannot defend themselves because they have given the impression that all that is needed is the steady hand on the tiller, more fiscal responsibility and the recovery follows in due course. The recovery will not follow in due course, and as they are forced into what they should/must have done at the very beginning of their term, they look culpable. By May 2015, you can call that two and a half years in reality, there will not be the required recovery. What is more likely that just as they contest for re-election is when just how dire things are becomes apparent.

Posted by stillthinking @ 06:59 AM 11 Comments

Sunday, April 29, 2012

We are (almost) all in it together

G Pytel: Cardinal O'Brian doesn't get it

Rich are getting richer, foodbanks are thriving. Big society at its best.

Posted by ant @ 08:08 PM 1 Comments

Pension insanity

FT Alphaville: You will buy more Govvies, or else

Private pension schemes are obliged to match liabilities. As yields are pulled down, these private schemes are obliged to purchase more. Effect is to transfer investment funds to government, and also shift -private- pension funds to unfunded government dependent. This is effectively transferring funds out of private companies for the immediate consumption by government. Our government is going through all reserves of capital and replacing with government IOU s. The article doesn't directly state this, but if gilts collapsed, then suddenly UK companies with pensions have to direct even more funding to the government ! This is perverse, the less and less valuable something becomes, the more you are legally obliged to buy...right up to when the pension schemes collapse the host company.

Posted by stillthinking @ 05:17 PM 7 Comments

Big greasy bear breakfast...

Telegraph: Double-dip recession to trigger house price fall

The potential drop in prices is expected to be more significant than that seen recently.

Posted by happy mondays @ 09:00 AM 13 Comments

...

BBC News: London 2012: Missiles may be placed at residential flats

The Ministry of Defence says it is evaluating sites for surface-to-air missiles for the Olympic Games, and could place them at residential flats. Residents at an estate in east London have received a leaflet saying soldiers could be placed there during the Games.

Posted by paranoia blue @ 08:04 AM 0 Comments

Saturday, April 28, 2012

Scam

Sky News: Brits Losing Millions To Land-Bank Fraud

Increasing numbers of UK investors are falling victim to land-bank fraud. Asset Land Investment markets plots of land to the public - land it says is about to receive planning permission to build homes, yielding huge profits for the investor. But the land is often in green belt areas that have little chance of being developed and investors are with plots they cannot sell. A single mother with five children, Ms McKendree-Wright paid £63,760 for two plots in Newbury and Harrogate. "They sounded so plausible. They told me they do all the background work for their customers and they only sell plots that are going to be snapped-up for building. "I was told the plots would get planning permission and that I couldn't lose my investment because it was like putting money in the bank"

Posted by little professor @ 08:30 PM 4 Comments

Hurrah!

Daily Express: £64 a day rise in house prices

We're all getting richer as our houses rise in value and the confidence from this will feed through to the economy and end the recession. Expertz like the Comedy Club'z Stuart Law say so.

Posted by icarus @ 05:59 PM 5 Comments

Countrywide want help from taxpayers

Estate Agent Today: Countrywide boss slams Government over housing policies

“With the market operating at half the long-term average, we call on the Government to take effective action to boost the residential housing market, as the risk of a further drop is increasing. We are also aware that as the year progresses, there are other factors at play which may cause short-term disruption such as increases in Stamp Duty on property sales, the Olympics, Euro 2012 and the Diamond Jubilee. Additionally, widespread predictions indicate that the mortgage lending market for 2012 will be flat at best, and if the banks continue to restrict their lending, there may be longer-term implications. (H/T to TheCrashingIsles on the forums)

Posted by quiet guy @ 02:22 PM 3 Comments

Let's have Land Value Tax

Globe and Mail: A housing crisis of global proportions

Doug Saunders is the chief of the Globe and Mail's London-based European Bureau looks at housing problems across the world, including the UK, and argues: 'If we really wanted housing to be profitable and plentiful, we’d tax owners on the annual rise in value of their property – a Land Value Tax. This has two benefits: First, you’re taxing a non-productive source of wealth, whereas income and corporate taxes can stifle innovation and risk-taking. 'Second, because buyers and sellers know the tax exists, property values stop rising quickly. This makes it easier for newcomers to enter the property market, and for homeowners to buy and sell based on the desirability of housing.'

Posted by stuartking @ 10:34 AM 27 Comments

Nuke the Nimbys

New Statesman: Restrictive planning laws have caused the UK’s housing cost explosion

The explosion in housing costs, and everything that flowed from it, was completely unnecessary. It could have been entirely avoided. The empirical evidence from around the world shows that temporary fluctuations aside, housing costs are largely determined by the severity of planning restrictions. Dealing with the problem "is a matter of confronting vested interests, which, unfortunately, the present coalition is not particularly good at."

Posted by stuartking @ 09:54 AM 9 Comments

CHEAP LAND ! .............At extortionate prices.

Yahoo.com: Brits Losing Millions To Land-Bank Fraud

Some `investors´ never learn, do they ?

Posted by harrythecat @ 09:44 AM 0 Comments

Friday, April 27, 2012

Pffff!

Scotsman: Bad consumer debt equals £1,000 for everybody in UK

Poor old Scotsman newspaper trying to come up with a headline. Nothing. Who cares.

Posted by stillthinking @ 05:58 PM 0 Comments

Kapow!

BBC: Lib Dem Brian Paddick vows 360,000 homes

Demographic shift. The elderly cannot be the only owners and BTLs forever, at some point there is going to be a shift in the electoral majority to something like residential planning automatically granted (made that up~). Lib Dem Paddick must think in London the home owners do -not- have the majority and this is a direct cut-out. Possibly the electorate affected by the housing benefit reforms will get in on this. Everybody in a shared single room. I will be interested to see what the other candidates say. But if this is the case in the capital, then whoever has been doing their admittedly slightly fascist voting sums to work out the sub-group, must also see this pattern starting to appear over the UK generally. In which case we might vote... for... more homes! Great!

Posted by stillthinking @ 04:34 PM 3 Comments

Ooo!

Telegraph: State pension will cost £146,000 per household

Phew! I thought it might be difficult to pay for a minute. Well, no problems clearing that little debt up so we can all relax. Probably the Telegraph didn't mean to lead the question but I wonder if a questionnaire about state pensions being too generous being directly below this article is a bit much. The problem though, is that there is no capital in any of these pension schemes. That is the main issue and it will not go away.

Posted by stillthinking @ 03:25 PM 21 Comments

Ouch!

Wall Street Journal: The U.K.’s (Other) Euro-Zone Problem

Compares North South Europe to North South UK. "This is important because many of London’s jobless on social welfare don’t have the skills to earn the sort of money they’d need to maintain London living standards given to them by the government." Hey we know already !Points out the massive state spending throttling out private sector necessary to maintain New Labour fictitious pretence for the voters (to be fair doesn't mention NL I put that bit in~). Suggests inflation in the South and deflation in the North as a consequence, like an inverted Euro.

Posted by stillthinking @ 01:21 PM 4 Comments

Go directly to jail. Do not pass Go

Telegraph: Homebuyers become ‘prisoners in their own property’

Falling house prices are not the only reason rising numbers of homebuyers have become “prisoners in their own property” as banks’ and building societies’ reluctance to lend after the credit crunch prevent many moving home.

Posted by dill @ 10:36 AM 10 Comments

Is buying such a great idea ?

Daily Mail: OAP furious after neighbour builds 'Dale Farm' garden fence from old tea towels, rags and ribbons... and trains CCTV camera on her property

For six years, Clark and Mary Pickering have endured a bitter dispute with their neighbour. Hedges have been cut down, fences damaged and bottles hurled. At one stage, the warring homeowners had a dozen CCTV cameras trained on each other. But the Pickerings say they are finally at their wits’ end after a massive barrier – resembling the fortified entrance that once stood at the illegal travellers’ camp in Dale Farm – was erected Every time they look out of the window of their £600,000 bungalow in North Weald, Essex......

Posted by khards @ 09:45 AM 3 Comments

Thursday, April 26, 2012

Over the pond Phase II is starting to gather momemtum

Reuters: Insight - Falling U.S. home prices drag new buyers under water

Despite some stories to the contrary the majority of the US is seeing home prices continue to decline and many borrowers, particularly since late 2010, who thought they were buying at the bottom of a housing market have been caught out. Even some loans taken out in December 2011 (about 7.5%) are now under water. The article points out that a significant factor causing recent home loans to slide under water has been the availability of government-insured mortgages that require only a small down payment. "This is creating a new wave of under water borrowers," said Gary Shilling, a veteran financial analyst and well-known housing market bear. "We have all three branches of government trying to keep people in four bedroom houses who can't afford chicken coops."

Posted by enuii @ 10:13 PM 3 Comments

Hooray, interest rates rise

Daily Mail: Sneaky mortgage rate hike on new home plan for first-time buyers - just 43 days after launch

Banks have quietly hiked rates on the Government’s flagship housing scheme for first-time buyers just 43 days after it was launched. NatWest, Woolwich and Nationwide are among those who have increased the interest on their mortgages under the NewBuy scheme by up to 22  per cent. Mike Farley, chief executive of housebuilder Persimmon, says: ‘There’s nothing wrong with the concept of NewBuy, but to make it work we need a lower rate or people will be priced out.’ ‘The rates are around 6  per cent and are so high people won’t be able to afford the repayments.'

Posted by stuartking @ 05:59 PM 4 Comments

Virtue

Arabian Money: UK back in recession, realistically what comes next?

House prices remain stubbornly high thanks to artificially low interest rates. Only the government’s commitment to austerity keeps the bond market compliant with interest rates at such low levels. Realistically the next time the global economy sneezes the UK will catch pneumonia. It’s economic problems are similar to Spain’s but without the euro

Posted by keep walking @ 04:32 PM 0 Comments

Taking it on the chin!

BBC: Santander profit hit by new Spanish property provisions

"Profits hit again....First quarter net profit was down 24% at 1.6bn euros ($2.12bn; £1.31bn). It set aside 3bn euros in provisions, partly to cover rising loan defaults in its home country.

Posted by alan @ 03:55 PM 1 Comments

Approvals at a 10-month low

Telegraph: Mortgage approvals fall in March, outlook weak

"The British Bankers' Association said approvals by major lenders for house purchase fell to 31,888 last month from 32,840 in February. Approvals had hit a two-year high of 37,977 in January, but the BBA said on Thursday that activity had since "dropped back to more normal trend levels" after a temporary boost from first-time buyers seeking to buy before the stamp duty holiday ended on March 24".

Posted by alan @ 03:21 PM 4 Comments

Speech to the Fed

Zero Hedge: Robert Wenzel Addresses The New York Fed, Lots Of Head-Scratching Ensues

Very plain speaking to the Federal Reserve.

Posted by stillthinking @ 02:10 PM 3 Comments

Ethnic cleansing used as subtext for fear of void periods.

Guardian: Squeezed out: London landlords evict tenants hit by housing benefit cap

However, he argues that his landlords are not millionaire property dealers but often professionals who have invested in property instead of paying into pension funds, and are now unable to make the mortgage payments because of the reduced rents, which is why they are evicting in order to find new tenants at the market rate. "These are people who have bought properties with their savings in the hope that they can top up their pensions. Some of them are teachers – how are they going to subsidise it on their salaries?" he said.

Posted by sibley's b'stard child @ 12:22 PM 20 Comments

Ikea launch 'break up room'

Planet Property: Ikea launch 'break up room'

Very funny spoof of the effect that shopping at Ikea has on relationships - tagline says it all: IKEA - We all die alone.

Posted by the planet @ 11:20 AM 0 Comments

Wednesday, April 25, 2012

Dismal decade warning

Shaun Richards Mindful Money blog: Now we are told that the UK is back in recession the real question is are we in a depression too?

Richards comments on the recent ONS data: "There are particular features of a credit crunch that make a recovery harder than a conventional recession. However I feel that all the intervention and extraordinary monetary stimulus that has been provided has simply not worked and via its impact on real wages (which are falling) may have made things worse. Also the banking sector which is the one most responsible for our predicament has been bailed out but crucially not reformed. We have made the mistake of the Japanese in allowing zombie banks to continue and this led to a what is called a “lost decade” for them but now encompasses two decades."

Posted by quiet guy @ 11:37 PM 42 Comments

2 million Euros owed by 71 year old super-speculator.

Bloomberg: Irish Bank Evicts Pensioner After $155 Billion Losses -> Mortgages

"Brendan Kelly’s televised eviction from his Dublin house hit close to home for many of those watching in Ireland, where one in seven mortgages is in trouble". "The country’s 10 largest banks, including four overseas- owned lenders, lost more than $155 billion on soured loans, mainly in commercial real-estate, in the past four years, according to Bloomberg calculations". "“It is right to offer people a way out through restructuring, but that will create sizable losses for the banks,” said Michael Saunders, head of European economics at Citigroup Inc. in London. "While the government “has pledged as far as possible to keep people in their homes,” it has made no promise to those like the Kellys with “21 different homes.”

Posted by alan @ 03:56 PM 6 Comments

This will sort it out....

Telegraph: Roger Bootle: UK economy is stuck

As Britain enters an official double-dip recession after two more consecutive quarters of negative growth Telegraph columnist and Wolfson prize nominee Roger Bootle tells Robert Miller that the UK economy is stuck and that the Bank of England will be forced to extend its QE or asset purchase scheme.

Posted by happy mondays @ 03:03 PM 3 Comments

Oh noes, intensifying woes!!!

Yahoo: Britain in recession, intensifying government woes

The economy has fallen into its second recession since the financial crisis after a shock contraction at the start of 2012, heaping pressure on Prime Minister David Cameron's government as it reels from a series of political missteps.

Posted by general congreve @ 02:35 PM 16 Comments

...and it will only get worse

G Pytel: Crisis? This is how it works

You may or may not agree with it but you should be concerned. It cannot keep going on like this. Where is the end?

Posted by ant @ 12:13 PM 1 Comments

Now, exactly who was saying UK would avoid a double dip?

Telegraph: Britain in double-dip recession as growth falls 0.2pc

'Britain is officially back in recession after the economy shrank unexpectedly by 0.2pc in the first three months of the year.'

Posted by hpwatcher @ 12:06 PM 15 Comments

Halifax housing market confidence tracker predicts rise during next year

Myfinances.co.uk: Brits 'confident that house prices will rise'

Brits are becoming increasingly confident about the prospect of their property values rising, a new study suggests.

Posted by ben @ 11:47 AM 0 Comments

Councils act like gods !! screw the public for what?

Daily mail: 3,000 town hall staff earn more than £100,000 and 52 earn more than £250,000 as salaries boom despite cutbacks

The number of council chiefs earning more than £100,000 a year has now topped 3,000, it was revealed yesterday. Hundreds more town hall staff have been put on six- figure salaries in the past year – at a time when the bulk of local authority workers are enduring three years of pay freezes.

Posted by mark @ 10:01 AM 4 Comments

Inevitable

Guardian: Bernanke says Fed will act if needed as UK sinks into double-dip recession

UK GDP for first quarter comes in at -0.2%, pushing the UK into its first double-dip recession since the 1970s

Posted by magnaman @ 09:41 AM 0 Comments

Technical Recession

ONS: Gross Domestic Product: Preliminary Estimate, Q1 2012

•The chained volume measure of GDP decreased by 0.2 per cent in Q1 2012 •Output of the production industries decreased by 0.4 per cent in Q1 2012, following a decrease of 1.3 per cent in the previous quarter •Construction sector output decreased by 3.0 per cent in Q1 2012, following a decrease of 0.2 per cent in the previous quarter •Output of the service industries increased by 0.1 per cent in Q1 2012, following a decrease of 0.1 per cent in the previous quarter •GDP in volume terms is flat in Q1 2012, when compared with Q1 2011

Posted by dill @ 09:39 AM 2 Comments

Could the UK housing rental market be about to crack?

MoneyWeek: Could the UK housing rental market be about to crack?

Despite a high demand for housing and recent rises in rents, Britain's residential rental market is showing signs of strain, says Phil Oakley. And that could be very bad news for house prices.

Posted by martingreen @ 09:19 AM 2 Comments

So all that wailing re: Mansion Tax was for naught?

Estate Agent Today: London buyers shrug off hike in Stamp Duty, say agents

Last month’s rise in Stamp Duty to 7% on £2m-plus properties has apparently had little effect on the prime central London market. Cluttons said it has seen a number of deals exchange and complete since the new higher tax bracket was introduced and has continued to agree new offers on properties worth in excess of £2m. The firm says there has been no evidence of price renegotiation or buyers requesting that sellers share the additional buying costs. James Hyman, partner for residential sales at Cluttons, said: “Buyers have taken a very mature attitude towards the comparatively small additional cost when purchasing above the £2m mark, accepting it is part of the premium they need to pay in order to secure the property they want

Posted by sibley's b'stard child @ 09:09 AM 3 Comments

Reduced to clear

..because banks created more money

Positive Money: Why are house prices so high?

Nice succinct piece on what we at HPC already know. Question: If mechanism for HP increase was the same in UK, Oz, USA, then why have the falls in prices been so different?

Posted by voiceofreason @ 06:24 AM 1 Comments

Higher borrowing costs

City AM: Profligate states accused of hijacking credit system

As the government takes on actual debt (credit expansion as opposed to future liabilities) to the extent this is inflationary the only way the government can maintain low borrowing costs is to pass on artificially higher rates to the private sector individual. This blocks profitable investments that could have been made otherwise, as all borrowing suddenly becomes effectively taxed through the interest rate. IMO, the Tories will never attempt to reduce state borrowing because to do so immediately gives NL the opportunity for electoral bribing i.e. if NL will always borrow to the max then the Tories cannot succeed at the ballot with a debt reduction strategy. So all looks rather sedate for the UK going forward. On the plus side I read that Alberta is legally mandating a balanced budget.

Posted by stillthinking @ 04:59 AM 2 Comments

Tuesday, April 24, 2012

Fudge

Telegraph: Osborne hits £126bn borrowing target despite March rise

Britain’s public finances deteriorated further with £18.2m of public sector borrowing in the final month of the fiscal year, higher than the £16bn forecast by economists. It was also higher than the £18bn the Government borrowed in March last year.

Posted by happy mondays @ 01:44 PM 20 Comments

Lol

Yourmortgage: Great expectations for house price growth

Confidence in the UK housing market has grown strongly this year, with more people expecting bigger rises in property values than last year.

Posted by paranoia blue @ 12:11 PM 3 Comments

Another 168 at risk....

Northampton Chronicle and Echo: TalkTalk to close offices in Northampton, putting 168 jobs at risk

"Communications giant TalkTalk has today announced its office in Northampton will close, with the potential loss of up to 168 jobs." If I loose my jobs I am moving to Jeopardy, there are a lot of jobs in Jeopardy.

Posted by thecountofnowhere @ 11:30 AM 0 Comments

It's the rich who benefit from QE

Counterpunch: Why Paul Krugman is full of sh1t

Krugman argues that QE is bad for banks because (a) it causes inflation. so loans are repaid in devalued currency and (b) it reduces the (profitable for banks) spread between short- and long-term IRs. But this argument applies only to a solvent banking system that makes loans to creditworthy borrowers and has no shadow banking activity. Since banks have killed the supply of creditworthy customers and made themselves insolvent (if marking to market) the name of the game now is to support asset prices by lowering short- and long-term IRs, getting junk assets off bank books and/or creating false prices for them. QE drives up financial assets and the wealthy, who own them, thereby grab nearly all of the wealth and income gains.

Posted by icarus @ 11:05 AM 1 Comments

The house of cards is falling

North wales daily post: Bangor estate agent wound-up after nine years

Mr Warriner revealed a dip in the property market and a lack of support from banks led to the demise of the firm, a mainstay on the High Street since 2003. He said an estate agent has been in the town centre spot for 25 years, and was devastated to shut. It means the loss of three jobs, including himself, his wife and a secretary. “Since the recession, and with people talking about the eurozone crisis on TV every night, nobody wants to push themselves with offers (for properties),” he said.

Posted by mark @ 08:50 AM 5 Comments

Bartering - It's the future! :)

You tube: Greek Town Develops Bartering System Without Euro

It's a funny old world...

Posted by happy mondays @ 08:44 AM 4 Comments

Cameron understands affordability of houses?

Mail: 'Arrogant posh boys with no interest in lives of others'

"Clique...act as a barrier and prevent Cameron and Osborne and others from actually really understanding or knowing what is happening in the rest of the country". Tory MP Nadine Dorries branded them ‘arrogant posh boys’ who ‘don’t know the price of milk’ (but what about affordability of houses and house prices?)

Posted by alan @ 07:37 AM 15 Comments

...

BBC News: London council's 'social cleansing' of housing benefit tenants

A London council has been accused of starting "social cleansing" in the capital by asking a Stoke-on-Trent housing association to take on up to 500 families on housing benefit. Newham Council says it can no longer afford to house tenants on its waiting list in private accommodation.

Posted by paranoia blue @ 07:08 AM 0 Comments

Unemployment won't fall with a recovery

Wall Street Journal: U.K. a Haven for Europe’s Unemployed

Article makes the point that due to English as a second language, the UK is a magnet for the capable unemployed of Europe. So, any recovery would need to soak up these additional entrants into the job market i.e. the indigenous unemployment rate would remain.

Posted by stillthinking @ 03:27 AM 5 Comments

Monday, April 23, 2012

Yes.

MoneySavingExpert: Is the interest-only mortgage dead?

Mortgage borrowers in the UK are well aware of the tough lending conditions that have dominated the market in the last few years. Banks and building societies have limited their level of lending and tightened their criteria so that getting a mortgage has become significantly harder than in the boom years before the credit crunch. Santander announced earlier this year it would impose a maximum 50% LTV on all new interest-only lending. That means you'd need a 50% deposit. Nationwide, Coventry and Leeds building societies followed suit. A cliff edge approach has been employed, so if the mortgage is greater than half the property value, the whole mortgage must be taken on a repayment basis. ING Direct also imposed a 50% limit last week.

Posted by drewster @ 11:16 PM 1 Comments

Changes to Interest only mortgage criteria

Niche Advice: Changes to Interest only mortgage criteria

Interest only mortgages are becoming a very complex area of home finance. Just a few months ago they were commonplace. All you were required to do was advise the lender of your repayment plan e.g. via saving, downsizing, inheritance or other means. Today it’s a totally different story. With the Mortgage Market Review (MMR) poised to be implemented in the latter part of the year lenders find themselves scrambling to distance their association with perceived areas of lending risk such as ‘interest only’ mortgages. I share the view along with many other Commentators (and indeed many lenders behind closed doors) that this is another display of a ‘nanny state’ intervening and stifling consumer choice and freedom.

Posted by payam azadi @ 07:34 PM 1 Comments

Cheaper cross channel shopping expeditions

Mail: Pound stays at 20-month high against euro as political uncertainty in Holland creates new hurdle

"The sterling is holding steady at a 20-month high against a basket of currencies as disputes over austerity measures in Holland threaten to undermine eurozone recovery plans". (more countries to go the same way soon). "We don’t want to follow Brussels’ orders,’ Wilders said. ‘We don’t want to make our retirees bleed for Brussels’ diktats (at last, a politician with convictions - Osborne couldn't care less about pensioner's savings)!

Posted by alan @ 01:38 PM 19 Comments

Longest monetary contraction in recent history

Bank of england: Trends in Lending

Buried in this report is a rather revealing chart (p7 chart A) showing that the stock of loans owed to the banks, M4L, has been contracting for the longest period since the series was released in the early 1960s. In fact this series shows almost continuous growth even across the generality of business cycles - until 2008 that is. Since almost all money is issused as bank debt, this means money supply is contracting. It's been year on year negative since then. So it seems to me that there is no inflationary pressure due to QE, and the price increases we are experiencing must be cost push, particularly from energy. It also seems to imply that house prices must be kept "afloat" merely by low transactions volumes.

Posted by nickb @ 12:32 PM 9 Comments

Unbiased report on price sentiment.

KnightFrank: Knight Frank/Markit House Price Sentiment Index (HPSI) – APRIL 2012

Key headlines for April UK households perceive a decline in value of their homes for the 22nd successive month Lower prices recorded in ten out of 11 regions… …with London bucking the trend Year-ahead outlook for house prices remains positive Change in current house prices Knight Frank/Markit’s House Price Sentiment Index (HPSI) signalled a further drop in house prices during April. A perceived reduction in home values was reported by 17% of households, versus around 8% indicating a rise. At 45.4, the resulting HPSI figure is down from March’s 20-month high of 46.6. Any figure under 50 indicates that prices are falling, and the lower the figure, the steeper the decline. Any figure over 50 indicates that prices are rising.

Posted by khards @ 12:30 PM 2 Comments

Orly?

Telegraph: No recession, but 'years’ of sluggish growth ahead

Scott Corfe, senior economist at CEBR, said the Bank of England’s rate setters have been dealt “the worst possible hand of cards”. “Almost any decision the [Monetary Policy] Committee makes will be wrong from at least one point of view. They will probably hold base rates until 2014 at least, and hold back on further QE. But even that may not be enough to achieve economic growth at a reasonable rate.”

Posted by sibley's b'stard child @ 11:56 AM 3 Comments

Stamp duty deadline boosts March mortgage lending, says CML

Myfinances.co.uk: Stamp duty deadline boosts March mortgage lending, says CML

The stamp duty holiday deadline aided mortgage lending in March, according to the latest report from the Council of Mortgage Lenders.

Posted by ben @ 11:05 AM 0 Comments

Andrew Sentance says inflation concerns could lead to rate rise

Myfinances.co.uk: Former MPC member Sentance says interest rates may rise

A former member of the Bank of England's Monetary Policy Committee says that recent comments from Adam Posen and Paul Tucker indicate that the bank could be considering a change in policy.

Posted by ben @ 09:51 AM 1 Comments

How to cash in on the land bubble

MoneyWeek: How to cash in on the land bubble

Agricultural land prices are soaring. And they could have a way to run yet. Merryn Somerset Webb explains the best way to cash in - and some investments to avoid.

Posted by martingreen @ 09:41 AM 4 Comments

Markit Household Finance Index

Myfinances.co.uk: UK household finances continue downward course

Markit reports that household disposable income fell in 2011 and is now at its lowest level since the 1970's

Posted by ben @ 08:59 AM 0 Comments

Sunday, April 22, 2012

Here We Go!

Zero Hedge: Spain is About to Enter a Full-Scale Collapse

Spain is about to enter a full-scale Crisis. A few facts about Spain: • Total Spanish banking loans are equal to 170% of Spanish GDP. • Troubled loans at Spanish Banks just hit an 18-year high. • Spanish Banks are drawing a record €316.3 billion from the ECB (up from €169.2 billion in February). Things have gotten so bad that Spanish citizens are pulling their money out of Spain en masse: €65 billion left the Spanish banking system in March 2011 alone.

Posted by magnaman @ 10:07 PM 2 Comments

HousePriceCrash?

Telegraph: New house price increase of 7.7pc fuels fear of a bubble

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

Posted by cornishman @ 05:29 PM 14 Comments

If they didn't waste all their money on iPods, they could move out, right?

Independent: Home stretch: What happens when twentysomethings move back in with their parents?

Spiralling property prices and the collapse of the labour market are forcing many young people (and some not so young) to move back in with their parents. But how are both generations coping with this living arrangement? The figures speak for themselves. According to the Office for National Statistics, almost a third of men and a fifth of women aged between 20 and 34 live at home with their parents. "After uni I moved into a flat with a friend. I thought it would be great. But the whole thing just felt like being a student again. The flat was disgusting. It was cheap and horrible and damp and dark. The kitchen was tiny and the bathroom hadn't been fixed for years and years. It was above an Arabic bookshop that played loud music until midnight every night."

Posted by drewster @ 05:15 PM 8 Comments

Boohoo, they own property but nobody will give them money

Independent: That Olympic ideal rental is far from home and dry

Many people hoping to let their homes for the Games are likely to be disappointed. With fewer than 100 days to go to the Olympic opening ceremony there are real concerns that property owners in London and other host cities are pricing themselves out of rentals or have unrealistic ideas as to the prices to charge and the work that short-term letting entails. "There are so many properties available, we're getting silly [low] offers from potential tenants at the moment," says Mike Malloy at Martin & Co letting agents in Wanstead, east London, about two miles from the Olympic Park.

Posted by drewster @ 04:54 PM 0 Comments

Can't get a mortgage? Discover the latest financial innovation.

Rightmove: 1 bedroom flat for sale in London for £3,900 ("rent to buy")

No Mortgage needed. £3,900 deposit, then £165/week buys this property. Full price £129,900. Suitable for self-employed, immigrants, unestablished credit record. Rent to Buy. No Mortgage needed. Poor Credit Ok. Only £3,900 deposit needed. Self Employed Ok. Move in and make this property yours with our easy Rent to Buy system.

Posted by drewster @ 04:43 PM 3 Comments

Vested Interests try to move the pitch

Telegraph: Mortgage lenders move the goal posts

Home owners are facing unexpected mortgage rate rises as lenders exploit loopholes in original contracts.

Posted by dill @ 09:28 AM 2 Comments

Saturday, April 21, 2012

Velly Rice Houses

Bloomberg: Chinese, Southeast Asians Purchase Half of New London Homes

"Investors from China and Southeast Asia bought one in every two new homes in central London last year as the number of wealthy individuals in the region swells, Jones Lang LaSalle Inc. (JLL) said".

Posted by alan @ 08:39 PM 7 Comments

Inflation is clearly a lot more than the ONS state

Daily mail: The shrinking groceries list of shame: how supermarket products are getting smaller while prices stay the same

However, manufacturers say they are simply responding to increases in energy, transport and ingredients costs. Which? found that a one litre tub of Carte D'Or Vanilla Light, Vanilla and Rum and Raisin ice cream had been slashed by 10 per cent to 900ml and a pack of Magnum ice creams was 330ml instead of 360ml. Meanwhile, a bottle of Ariel Excel Gel with Febreze was 11 per cent smaller with shoppers only getting 592ml instead of 667ml.

Posted by mark @ 04:16 PM 15 Comments

Rising Damp!

Mail: Buy-to-let threat as benefit cuts see landlords struggling to rent

Housing benefit cuts are threatening the buy-to-let market's resurgence as more than half of landlords can no longer afford to rent to tenants reliant on local housing allowance (LHA).

Posted by happy mondays @ 03:09 PM 26 Comments

An extra £4 a week? The world will come to an end!

Daily Mail: Millions of homeowners face higher mortgage payments as lenders hike rates

"Higher mortgage payments are coming for more than a million home owners when lenders impose rate hikes from the start of next month. The worst increases will be felt by Halifax customers, who could typically find themselves paying nearly £200 extra a year. The Co-operative Bank, Clydesdale Bank and Yorkshire Bank are also among those raising rates from May 1, blaming the weak economy and the increased cost of funding a mortgage."

Posted by mark wadsworth @ 12:31 PM 1 Comments

"The idea that rapidly rising home prices are positive is often based on unrealistic expectations"

FT: The property predicament

What would happen if, as so many people are hoping, home prices were to go up dramatically again as they did in the early 2000s? Would such a change really benefit society?

Posted by drewster @ 10:40 AM 4 Comments

Friday, April 20, 2012

Something to cheer up the whining self-pitying lazy youth of South Africa

The Move Channel: South Africa property prices plunge

"But the bank is hopeful that the economy will still grow this year by 2.7 per cent, albeit at a lower rate than 2011's 3.1 per cent growth. Prime mortgage rates are currently at a 30-year low of 9 per cent, but ASBA forecasts that interest rates will "rise further in 2013, with prime and variable mortgage rates to peak at 11% by the end of next year". Similar reports come from the South African mortgage company ooba, who told OPP that "residential property prices crashed by 4.4 per cent in real terms in March".

Posted by mark wadsworth @ 04:55 PM 4 Comments

Affordability is a big blocker for young buyers

Sky: AA - Petrol Prices Exceed Family Food Bills

"The price of petrol at the pumps has risen to a new high, exceeding the cost of an average family weekly food shop for the first time. After a brief halt following weeks of increases, the average cost of petrol has gone up to 142.48p a litre, according to motoring group AA". On inflation - another over-optimistic guesstimate from the BoE bites the dust. (Mervyn will blame those dastardly tanker drivers, for sure).

Posted by alan @ 04:37 PM 2 Comments

How will we get them to buy our houses from us?

BBC: Mortgage rates rise for new deals

At least 10 lenders, including some of the UK's biggest, have announced rate rises in the past week

Posted by ontheotherhand @ 01:53 PM 11 Comments

"Damn squid?"

MoneyObserver: Buy-to-let returns could soar to over 10 per cent

Total annual returns from buy-to-let property in England and Wales could rocket to 10.7 per cent over the next 12 months, equivalent to a return of £17,657 based on the average rental property price of £164,425.

Posted by paranoia blue @ 12:33 PM 4 Comments

Somebody think of the poor pensioners!

Torygraph: Granny tax 'perfectly sensible' as pensioners get better deal than young people, says David Gauke

How about we keep the tax rate on pensioners at half that of working people, but as a quid pro quo, take back all the council houses thrown away under Right To Buy and levy a 'free university claw back' tax.

Posted by mombers @ 12:19 PM 3 Comments

So it never sold, still overpriced?

Bloomberg: Ireland’s Most Expensive House Withdrawn After 75% Discount

The Dublin house which sold for 58 million euros ($76 million) in 2005 was put back on the market last year with a guide price of 15 million euros. The six-bedroom Edwardian house located on Shrewsbury Road, Dublin’s richest street, was withdrawn from the market earlier this year, Iris Keating an agent at Savills Plc, which was jointly handling the sale, said by phone.

Posted by mark @ 12:13 PM 0 Comments

Footage of eviction from prosperous Dublin suburb

Planet Property: Footage of eviction from prosperous Dublin suburb

Distressing footage of elderly couple being evicted from a house in Killiney, Dublin – think Putney or Wandsworth – has appeared on Youtube and generated 1800 fiercely divided comments

Posted by the planet @ 12:02 PM 0 Comments

How to exit the interest-only mortgage timebomb

Myfinances.co.uk: How to manage an interest-only mortgage

The FSA estimates that 1.3 million people are on an interest-only mortgage that is due to end by 2020 - and many people have no plan in place to pay off the capital.

Posted by ben @ 11:23 AM 0 Comments

Great news for the miserable middle class metro-whiners at HPC

BBC: Rents fell back again in March, say letting agents

Ee by Gum, when I were a lad we were glad when t'landlord put t'rent up. He needed it more than we did. There were none of this moaning about new iPods. And we had proper jobs down t'pit, none of your "nail technicians" in my day.

Posted by mark wadsworth @ 10:47 AM 18 Comments

Generational theft

Guardian: This sentimentality over old people is hitting our young

Any whiff of a 'granny tax' causes public uproar, but the older generation are not the real victims of this recession

Posted by catmandu @ 09:44 AM 0 Comments

Dubious stats; quality headline.

Estate Agent Today: First-time buyers may have vanished after Stamp Duty rush

Demand from first-time buyers nudged up in March, according to the NAEA in a report published today. But it said that sellers remained cautious, with 61 properties on the average branch’s books – down from 63 in February. The association’s monthly housing market report found that the proportion of sales being made to first-time buyers increased from 23% in February to 24% in March. It last reached this level in May 2011. The report also found that on average, estate agent branches had 297 house-hunters registered per branch in March compared with 293 in February

Posted by sibley's b'stard child @ 09:28 AM 2 Comments

The rest of the Monetary Policy Committee should be as brave as Adam Posen and resign over their hop

Hannan blog Telegraph: Temporary Spike

The core function of the Bank of England, as it happily states on its website, is to maintain price stability, defined as inflation at two per cent. That figure is now becoming a kind of symbolic, notional target. It's hard to remember when the price rises were last within the pemitted range. Four years ago? Five?

Posted by ontheotherhand @ 07:26 AM 1 Comments

Thursday, April 19, 2012

Whatever next?

Daily Mail: That's one way to get on the property ladder: Family who cannot afford to buy home purchase lock-up garage instead

A growing family desperate for extra living space have found a unique way of getting on the property ladder - they've bought a £6,500 garage and turned it into an extra room. "The garage is just perfect. It gets us on the ladder. Hopefully it will prove to be a great investment. I would not use that kind of money for a deposit - definitely not until property prices come down some more - you don’t buy an asset at its most expensive."

Posted by drewster @ 08:32 PM 6 Comments

The wagons are circling around Britain

Telegraph: Fitch doubts Dutch AAA as property slump reaches 'coma'

Fitch Ratings warns that Holland risks losing its AAA rating. The warning comes as Dutch property tips into deeper slump, with the inventory of unsold homes nearing southern European levels. Household debt is the eurozone’s highest at 249pc of income, compared with 202pc in Ireland, 149pc in the UK, 124pc in Spain, 90pc in Germany, 78pc in France and 66pc in Italy - according to Eurostat data from 2010. Home prices have fallen 11pc from their peak in August 2008, or 15pc in real terms, leaving up to 500,000 people in negative equity. Building permits have dropped 9pc from a year ago, the lowest since 1953. "We expect prices to drop 5pc in 2012." The stock of unsold properties has doubled to 221,000, almost double the declared level in the US on a per capita basis.

Posted by drewster @ 08:25 PM 6 Comments

Adam Posen says he was right about inflation!

Evening Standard: Economic Analysis: Bank’s ‘fireman’ who quelled the flames of crisis

This is a rather extraordinary interview which supports Adam Posen on matters such as inflation (yes really) and ends with a recommendation for him to be made a Deputy Governor of the Bank of England! "Given Posen’s position on the MPC as the man who has largely called the economy right over the last couple of years, the Bank — and Chancellor George Osborne — could do a lot worse." Perhaps the best bit though is the reply in the comments which sees through this effort at spinning the news.

Posted by josieful @ 07:16 PM 0 Comments

Banks must hope Houses Prices don't drop

Sky: Britain Has World's Most Over-indebted Banking System

"Britain now has the world’s most over-indebted banking system, according to new figures from the International Monetary Fund". The Fund’s Global Financial Stability Report has revealed that the total gross debt of Britain’s banks is equivalent to 742% of the UK’s total economic output – equivalent to around £11 trillion. It means Britain has overtaken Ireland, whose banking system’s debt is equivalent to 691% of GDP" says Ed Conway (Its good for earning interest, one hopes the investments are sound, however).

Posted by alan @ 02:33 PM 24 Comments

Sense at last ! If only Uk !

Ft: Repossessed Spanish homes fall in value

“We believe the sooner that house prices correct the better. The construction sector can’t gain momentum until empty properties are sold. A recovery in the construction sector will be better for the overall Spanish economy,” he said.

Posted by happy mondays @ 01:16 PM 5 Comments

Desperate to get on bottom rung of ladder?

Planet Property Blog: Join the garage band?

Once garages were somewhere you kept your car safe from the elements. Then they became too small, and people just used them for storing the lawnmower and tins of paint they'd never need again. And now, according to the Daily Mail, cramped families are buying garages to give them a bit more living space.

Posted by property addict @ 12:51 PM 0 Comments

BTLers unhappy that their unearned income isn't keeping-up with CPI

SPeye: Latest HB figures – £4bn over target and PRS largesse

Claimant count - 4,976,210 now claims and receives HB and this is up 23,950 from the previous month and an increase of 142,740 year on year. A year on year increase of 2.9% - Of the total count 67.6% reside in social housing and 32.4% in the private rented sector (PRS) - Of the 23,950 monthly increase from December 2011 to January 2012 13,120 or 55% reside in the PRS - Of the yearly 142,700 increase in claimant numbers 91,220 come from the PRS or 64%

Posted by sibley's b'stard child @ 11:42 AM 3 Comments

Mentee attacks former mentor.

Telegraph: Mervyn King runs Bank of England like a 'tyrant', says former MPC member David Blanchflower

Blanchflower is often wheeled-out in the ESS ostensibly to defend QE and King, and attack hawks like Sentance and Posen. Strange to see him now launching an attack on Merv. Bit too late fella, eh?

Posted by sibley's b'stard child @ 11:18 AM 5 Comments

Wednesday, April 18, 2012

Mortgage fraud up for fifth year in a row

Citywire Money: Mortgage fraud up for fifth year in a row

The number of fraudulent mortgage applications made increased by 8% last year, the fifth year in a row that mortgage fraud has increased in the UK. For every 10,000 mortgage applications in 2011, 34 were fraudulent, according to data from credit reference agency Experian. This compares to just 15 in every 10,000 applications in 2006.

Posted by mkz @ 08:11 PM 0 Comments

What recovery?

Sky News: IMF Warns Of New Global Credit Crunch Threat

The International Monetary Fund (IMF) has raised the prospect of a second credit crunch worldwide as European banks slash their balance sheets in the face of the euro crisis.

Posted by will @ 05:14 PM 9 Comments

Average House Price in Scotland Feb 2012

LSL Property Services: Scottish House Price Index - Average House Price in Scotland Feb 2012

The latest Scotland House Price Index from LSL Property Services/Acadametrics has been released. The average house price in Scotland was £145,860 in February 2012, a 0.1% increase from January 2012

Posted by lsl @ 03:34 PM 0 Comments

Bob Geldof tries to make sense of the property market

Planet Property: Bob Geldof tries to make sense of the property market

Property investors: they're a bit like Gandhi, says Bob Geldof...

Posted by the planet @ 01:55 PM 15 Comments

Buy a house with that. Go on. Dare ya. Innit

Telegraph: Part-time Britain hits record high as unemployment falls

Record numbers of Britons are being forced to work part-time as they cannot find full-time jobs, while the number of women out of work has soared to a 25-year high, official statistics showed on Wednesday.

Posted by dill @ 01:40 PM 4 Comments

Awesome bit of Home-Owner-Ist special pleading...

Daily Mail: Britain's interest-only mortgage time-bomb

"Walter Harper has lived in his beloved home for two decades — but last July he was forced to put it on the market. He shared the Luton bungalow with his wife and, after she passed away, his partner, and has watched his grandchildren play there. But he is being forced to move because he owes £110,000 on an interest-only mortgage that he can’t afford to repay. Instead of spending his last days in the house he loves, he will be forced to rent elsewhere. Mr Harper, 69, first put his house on the market for £230,000. He has dropped the asking price by £20,000 and even if he gets this, he will still lose half of the money paying off the bank. These are savings he desperately needs, as rent is going to cost him almost £9,000 a year."

Posted by mark wadsworth @ 01:20 PM 25 Comments

Please don't, we need more stimulus ;)

Mail: Curtains for quantitative easing? Bank of England set to turn off cash taps as it admits inflation is 'uncomfortably high'

Adam Posen had surprisingly dropped his long-standing call for more stimulus, and that others were worried the Bank risked losing credibility regarding its commitment to keeping inflation under control. What a Nobber!

Posted by happy mondays @ 12:51 PM 5 Comments

Time for a run on a bank???

Daily mail: As fears grow for Spanish banks we explain what it means for Santander customers

Are my savings safe? The £120billion of UK savers’ money with Santander stays in the UK and is not fed back to Spain. In – what experts say – the unlikely event of Santander’s UK arm going belly up, the first £85,000 (£170,000 for joint accounts) of savers’ deposits is protected by the UK savings safety net, called the Financial Services Compensation Scheme.

Posted by mark @ 12:01 PM 9 Comments

Eurasia or Eastasia?

The Sun: Lib Dems fall behind UKIP

Every few years TPTB offer the electorate two clenched hands; in A a palmful of promises, in B a fist with which to beat them repeatedly until the next election. The majority choose incorrectly and receive a good dose of political pugilism. Next time round they figure that they'll choose the other. Unfortunately, in the meantime TPTB have performed the old switcheroo so back to another 4/5 years of face-slapping. Again, the next time round they figure they'll go back to their original choice. Rinse and repeat.

Posted by sibley's b'stard child @ 11:54 AM 11 Comments

An illogical economy

Yahoo News: UK Home Asking Prices Now At All-Time High

''Asking prices for homes being put on the market have reached an all-time high, breaking a 2008 record, according to new survey. With a rise of 0.5%, the national average asking price is now £243,737 - compared with the last peak in May 2008 at the start of the recession - according to the Rightmove House Price Index. The number of properties for sale increased by 8.1% outside of London but overall supply is still down 30% compared with April 2007.''

Posted by hpwatcher @ 11:42 AM 1 Comments

Will probably be revised down next month

Bbc: UK unemployment falls by 35,000 to 2.65m,

Unemployment fell by 35,000 to 2.65 million over the December-to-February period, according to the Office for National Statistics (ONS).

Posted by mark @ 10:59 AM 0 Comments

Travelers strike again - why do they want a base when they are supposed to travel?

Lancashire Evening Post: Caravan impasse

Sue Whittam, clerk of the parish council, said: “The travellers have told police they’re going to move on quite quickly. But they’ve set up satellite dishes, so I don’t know if that’s an indication they plan to stay a bit longer.

Posted by mark @ 10:28 AM 2 Comments

Doh!

Guardian: Compensate pensioners for savings lost to QE, say MPs

Proposal that government negates the effects of QE, a deliberate BoE policy... To be fair to the Guardian this is reported impartially.

Posted by stillthinking @ 05:13 AM 21 Comments

There is hope!

IMF: Amid Improving Fiscal Outlook, IMF Advises Caution

The virtuous circle is the answer to Europe's fiscal difficulties. All we need is more growth! Easier said than done,

Posted by inflationwatch @ 04:07 AM 0 Comments

Tuesday, April 17, 2012

Released today

ONS: House Price Index February 2012

"In the 12 months to February 2012, UK house prices increased by 0.3 per cent".

Posted by alan @ 10:52 PM 3 Comments

Best looking horse in the glue factory - Well done us!

Yahoo: Pound soars to 19-month high against the euro

Things might not be going swimmingly in Britain at the moment, but that hasn’t stopped the pound hitting its highest level against the euro since September 2010. It’s not a great day for the British economy. A new report from the Ernst & Young Item Club has predicted terrible growth for the economy for the rest of the year while strikes, cuts, record petrol prices and high unemployment all add to the general gloom. But thank goodness we’re not in the euro. Today the pound hit its highest level against the euro since September 2010 – providing a much-needed boost for people heading to the continent or those already living over there and drawing

Posted by general congreve @ 05:40 PM 1 Comments

Rent a Boomer crowd strike again.

This is Hull: Villagers' joy as Tesco shelves supermarket bid for Humber Growers site

CAMPAIGNING villagers are celebrating a dramatic victory over supermarket giant Tesco. The Welton Tesco Fighters action group was set up after Britain's biggest retailer announced plans to build a store on the former Humber Growers salad company site in Common Lane, Welton.Initial proposals put forward by Tesco were withdrawn and replaced with revised designs for a new store, standalone café and petrol station on the same site, next to the A63. The company then submitted an appeal against East Riding Council for failing to decide on the planning application within the statutory 13-week period.

Posted by khards @ 03:43 PM 15 Comments

Too many people borrowed too much!

Mail: Spain under debt pressure amid fears euro crisis will spiral out of control

"The storm clouds hanging over Spain darkened further today after its borrowing costs spiked at an auction of short-term bonds"."Chaos in euroland has pushed the pound to a 19 month-high against the single currency". "Fears are mounting that Spain will be the next country in the single currency bloc to implode as it struggles to prop up its banks and cut its deficit – plunging the eurozone deeper into crisis". (yes, and all those unsold houses on the books of the banks).

Posted by alan @ 03:07 PM 9 Comments

Work doesn't pay

London Evening Standard: Completely given up hope

Housing, particularly the cost of housing, is one of the biggest issues affecting Londoners’ quality of life. Adrian is 30 years old, lives in Rotherhithe, and works as an accountant. His story is typical of many hardworking Londoners who are in danger of being driven out of the capital by the high cost of housing.

Posted by dill @ 02:28 PM 7 Comments

So much for targets!

Reutes: Inflation uptick creates Bank of England headache

"The ONS said that consumer price inflation rose to 3.5 percent in March from 3.4 percent in February, calling a halt to a five-month run of declines from a peak of 5.2 percent in September 2011".

Posted by alan @ 11:21 AM 11 Comments

Pensions, penury and philanthropy.

Citywire: Advice required re: starting a Buy To Let portfolio

Dear All, as my name suggests, I am considering entering into the buy-to-let market and would greatly welcome your advice. My father owns a portfolio of 11 BTL flats, and this provides his entire pension income. I am in my mid 30's and hope to build up a modest portfolio of my own with the same goal in mind. I wouldn't intend to trade or sell properties, rather to buy-and-hold. I would aim to pay down the mortgages over the years, and 20 years down the line, hope to own the properties outright, living off the rental income.

Posted by sibley's b'stard child @ 10:46 AM 16 Comments

They will need to create a lot of new money to pay that back!

Credit Action: DEBT STATISTICS – APRIL 2012 SUMMARY

Outstanding personal debt stood at £1.457 trillion at the end of February 2012. This is up from £1.452 trillion at the end of February 2011. Individuals owed nearly as much as the entire country produced during the whole of 2011. Outstanding secured (mortgage) lending stood at £1.249 trillion at the end of February 2012. This is up from £1.241 trillion at the end of February 2011. The estimated average outstanding mortgage for the 11.2m households that carry mortgage debt stood at £111,358 in February.

Posted by khards @ 09:09 AM 7 Comments

Come on Labour, win it for me and put sterling on fast forward to oblivion!!!

Press Association: Poll gives Labour double-digit lead

Labour has established a double-digit lead over the Conservatives and the Liberal Democrats have been overtaken by the UK Independence Party, according to a new poll. The YouGov survey for The Sun put Labour 11 points ahead, on 43% to the Tories' 32%. It also found that Ukip, with 9% support, had pushed the Lib Dems, on 8%, into fourth place.

Posted by general congreve @ 12:48 AM 3 Comments

Mind your head on the deflation!

Press Association: Minimum wage 'lower than in 2004'

The national minimum wage will be lower than it was in 2004 after inflation is taken into account - even after it increases later this year, according to a new report. The Resolution Foundation think tank said October's 11p an hour rise to £6.19 was the third successive below-inflation increase. The report, written by Professor Alan Manning of the London School of Economics, said that while recent caution on increases was justified, the impact of the minimum wage had now "stalled".

Posted by general congreve @ 12:45 AM 1 Comments

CPI to hold at 3.4%. Get the f*** outta here!!!

Press Association: Inflation hopes set to be dashed

Record petrol costs and higher food bills are set to dash any hopes that inflation figures on Tuesday will show a softening in the cost of living. The consumer price index (CPI) rate of inflation is forecast to hold at 3.4% in March - its lowest rate since November 2010 but still far below the Bank of England's 2% target. Inflation has fallen from 5.6% last September due to the waning impact of the VAT hike at the start of 2011, falling energy, food and commodity prices and a number of bill cuts from utility providers in February.

Posted by general congreve @ 12:44 AM 5 Comments

Monday, April 16, 2012

Bed-sit with view of Olympic metal sculpture for sale

Telegraph: Singapore sovereign wealth fund targets UK property

"Singapore's sovereign wealth fund is preparing to buy up swathes of distressed properties in the UK". " Asian investors, primarily sovereign wealth funds, accounted for 30pc of all commercial property deals in London last year as they targeted a safe haven for their cash".

Posted by alan @ 05:38 PM 5 Comments

New Buy Scheme Offering a Free Lunch?

1 Percent Blog: New Buy Scheme Offering a Free Lunch?

The Halifax have come out with their interpretation of the New Buy Scheme. What does the one percent blog thing of the rates? Well after Halifax stung regular customers with a 50bp increase in rates, don't think first timers are getting out scott free. You have two choices; either one with a rate of 5.99 per cent and a £999 fee, and another with a rate of 6.39 per cent with no fee. With interest rates of £11,400 a year for a £200k property, is this scheme worth it? A quick look a rental rates suggests it is

Posted by redrut @ 04:19 PM 0 Comments

Flexible Home Improvement Loan

They own land! Give them money!: Bracknell Forest Council

Taxpayer subsidised loans for the Baby Boomers down south.

Posted by mark wadsworth @ 11:47 AM 6 Comments

The Housing 'market' isn't fit for social purpose

Telegraph: High house prices trap rising numbers in 'generation rent' – and they are not happy about it.

High house prices are trapping more young and middle-aged people in 'generation rent'. Restricted mortgage availability is also excluding rising numbers from home ownership, despite widespread dissatisfaction with rented accommodation and precious little hope that house prices will fall.

Posted by dill @ 11:07 AM 12 Comments

But that means six out of ten aren't.

AboutProperty: Four out of ten towns affordable for key workers

There are still big affordability problems for key workers in London and the South East. The news comes on the same day as Rightmove's house price index, which shows London is far removed from the rest of the country in terms of house price growth.

Posted by phil @ 10:35 AM 0 Comments

Could this cash be spent in a better way?

Telegraph: George Osborne ready to offer £10bn extra firepower for the IMF

"Britain is close to agreeing a new £10bn commitment to the International Monetary Fund as the Bretton Woods institution seeks to double its war-chest at its spring meeting this week" (anyone seen Spain's debt requirements lately?).

Posted by alan @ 08:34 AM 5 Comments

The Last Throws Of A Bubble?

Citywire: House [asking] prices in England and Wales hit record high

The average asking price in England and Wales is now at an all-time high of £243,737 – up £1,237 on the previous record set four years ago. 'Not a universal signal of a housing market recovery,’ said Miles Shipside, director of Rightmove. -- I see people out and about [in London & the SE] looking at houses too, but how many are 'serious buyers' I'm really not sure. Seems to me that any capital flow is toward more and more 'prime real estate'. Well the buck stops somewhere.

Posted by 51ck-6-51x @ 12:50 AM 11 Comments

Sunday, April 15, 2012

Frank says what he sees

Press Assoc.: MP urges housing allocation review

The Government should review who is given priority in housing queues after figures showed that nearly half of new tenants in some parts of the capital were born abroad, an MP has said. Frank Field, who led a review into poverty in Britain for David Cameron, said those "who have made most contribution to society, who have paid their taxes and whose children have not caused trouble" should be pushed to the front of the queue. His comments came as a study by the campaign group Migration Watch UK showed foreign nationals accounted for 45% of new social housing tenants in Ealing, and 43% in Haringey, last year.

Posted by drewster @ 03:17 PM 8 Comments

Death of the pub?

Cambridge News: 'Mourners' pay visit to 23 axed Cambridge pubs

Almost a quarter of pubs closed in last 5yrs. Due to changes in social behaviour? - Probably. Influenced by large/quick returns through property development? - Most likely. This can't just be happening in Cambridge. Is this profiteering at the cost of society (Something bankers and gov't do well). Or just picking up the pieces of a dying tradition?

Posted by markj69 str05 @ 03:17 PM 9 Comments

Keep the hamster wheel spinning

Independent: Wealth check: "How can I realise my dream of a house in six years?"

Alice is clear that she wants to own her own home before she is 30. The 24-year-old works for a publishing company in London on a salary of £23,000, and has started saving towards her goal of home ownership. So far she has amassed £10,000 in savings, offset by £20,000 in student loans from her university days. At present she is paying £410 a month to rent a room in a four-bedroom house in Tooting Bec, south London. "I'd like to buy somewhere within the next six years." Danny Cox from IFA Hargreaves Lansdown advises: "Under current market conditions, a deposit of at least 25% of the purchase price should provide access to the best mortgage deals. Based on a property – or share of a property – of £150,000, this would be £37,500."

Posted by drewster @ 11:09 AM 11 Comments

...and we are still being fleeced

G Pytel: How City ruined the British industry

It quotes from a new Alex Brummer book: "Britain For Sale: British Companies In Foreign Hands" how the City ruins the British economy. It is time to stop this parasitical arrangement.

Posted by ant @ 10:38 AM 3 Comments

Saturday, April 14, 2012

Nice graphs!

Market Oracle: Could U.K. House Prices Fall Again By Another 20%?

"On top of all that UK is a lot more hospitable to foreigners than the Americans are; for example to Russians and people whose names set off alarms at Kennedy Airport; particularly those who have suitcases full of oil-money, and other sorts of money too, all lined up so they can slap a one-time-payment on a little pad just off the Edgware Road. In America they call people like that “Aliens”… in UK they call them…”Customers”."

Posted by mapp1066 @ 09:18 PM 6 Comments

AAA = no need to change policy

Telegraph: S&P confirms UK's AAA rating but warns on growth

Despite a likely rise in unemployment and the slow rate at which the deficit is being reduced, the Standard & Poor's rating agency has judged the UK's AAA rating as stable. 'S&P warned, however, that such policies would limit growth "over the next few years", while household spending would also be hit by weak wage growth, rising unemployment and a weak housing market. The weakness of the economy was underlined on Friday as respected City economists said "profoundly" weak data from the construction industry put Britain on course for a double-dip recession in the first quarter.' It seems possible to me that more loose monetary policy and very gentle fiscal tightening will allow the housing market to stagger on while inflation chips away at mortgage debts.

Posted by quiet guy @ 12:52 PM 2 Comments

Bargain buy?

Daily mail: There's gold in them there hills... but this 117-acre mountain landscape with its own MINE will cost you $43million (and includes deadly snakes)

This place really is a gold mine - if you've got a spare $43million (£27million). A U.S. estate agency is selling 117 acres of stunning scenery in the mountains of North Scottsdale, Arizona. And the land comes with the added benefit of a gold mine containing a possible $170million (£107million) in the valuable metal.

Posted by mark @ 12:48 PM 0 Comments

Friday, April 13, 2012

Is Britain worth working for?

Guardian: Youth unemployment soars, and it's not just a phase

Next week's unemployment figures are likely to reveal another increase in the number of young people who have found themselves out of a job as a result of the UK's non-recovery.

Posted by dill @ 05:00 PM 18 Comments

It's a funny old game...

Telegraph: Mortgage demand plummets as lenders' funding costs rise

"The tactic boosted activity during last autumn and early part of this year, albeit artificially, and veiled a multitude of underlying weaknesses in the market. Now that the banks can no longer afford to take on extra costs, those weaknesses are beginning to come to bear once again.”

Posted by happy mondays @ 02:53 PM 1 Comments

Will they cancel the gilts?

Economist website: The cunning plan revealed

Discussion of whether the government will simply cancel the gilts bought by the Bank of England.

Posted by david webb @ 02:00 PM 0 Comments

There is a limit to how high rents can go

Planet Property: There is a limit to how high rents can go

Squeezed budgets will curtail rents outside London, says a new report

Posted by the planet @ 12:55 PM 0 Comments

Covers speculation, property taxes and redistribution.

Institute of Economic Affairs: Abundance of land, shortage of housing

Runaway housing costs have become one of the most pressing issues for low-income households in the UK. House prices have doubled in real terms since the mid-1990s alone, from an already very high level 1 . No other developed country except Australia 2 has experienced a price explosion of such a magnitude. Not even Spain, with its notorious house price bubble, has quite paralleled the British experience. In nominal terms, house prices in the UK have increased by a factor of nearly forty over the last forty years (see Table 1). Rent levels have followed suit, since the ratio of house prices to rent levels shows no systematic trend over time (The Economist house price indicators, 2012).

Posted by khards @ 11:02 AM 4 Comments

PIIGS? No, they're GIIPS now...

Telegraph: Time to put the doomed euro out of its misery

Other than that silly bit of politically correct acronym adjustment, I could have written this myself..

Posted by uncle tom @ 10:46 AM 5 Comments

Good news! The price of everything has gone up. We are all richer than before.

BBC: UK producer prices rise 0.6% in March

UK producer prices rose 0.6% in March from February, due in part to rises in the cost of petrol products, tobacco and alcohol, figures have shown. On an annual basis, prices rose by 3.6%, the lowest rate for more than two years, the Office for National Statistics (ONS) said. Annual producer price inflation has been slowing since September last year, when it rose by more than 6%. Input prices rose by 1.9% month-on-month, and 5.8% year-on-year. Separate figures showed output in the construction industry fell by 4.6% in February compared with a year earlier. In other news - wages are static and savings rates are abysmal.

Posted by khards @ 10:41 AM 9 Comments

Is Brazil's property bubble about to burst?

MoneyWeek: Is Brazil's property bubble about to burst?

Brazil has enjoyed soaring property prices for years - but the bubble may be about to burst.

Posted by martingreen @ 09:35 AM 1 Comments

Hurrah for rentierism

Metro: Private rents 'soaking up half' of tenants' wages in parts of London

Average private sector rents in some parts of London have reached 56 per cent of pay, leaving even less for other essentials such as food and fuel. Rents now make up a third of people’s earnings across England but there is a wide disparity across the country. In the capital, rent makes up 41 per cent of pay. The boroughs of Brent, Camden and Westminster have the highest rent to earnings ratio in the country at 56 per cent. London boroughs make up 21 of the 25 highest ratios. Shelter chief executive Campbell Robb said: ‘Families across the country are being stretched to the limit by the high cost of renting. Read more: http://www.metro.co.uk/news/896013-private-rents-soaking-up-half-of-tenants-wages-in-parts-of-london#ixzz1ruKTtUa3

Posted by sibley's b'stard child @ 09:34 AM 2 Comments

Recovereh in full swing

ForexLive: Rightmove: +2.9%MoM, +3.4%YoY

UK house asking prices have returned to record high levels in April, four years after prices crashed as the worldwide lending crisis shook the UK housing market. House asking prices rose 2.9% on the month in April, 0.5% above the previous record of £242,410 posted back in May 2008.

Posted by little professor @ 08:20 AM 17 Comments

And the rest...

Telegraph: Council pension schemes costing £2,000 for every family in Britain

This reminds me of the "boost" to the government on receiving the shortfall liabilities of the Post Office pension scheme plus the assets, the assets being IOUs from the government. Council pensions are the same so whether they are short or not is irrelevant because the whole amount is coming from the future taxpayer. Pension schemes should not be allowed to list government debt as an asset because it implies a restriction of the democratic right of the majority to tell the council workers to get on the state pension like everybody else.

Posted by stillthinking @ 07:59 AM 0 Comments

The false stimulus of sacrificed pensions

Telegraph: Countries must do more to lower debt

As has been pointed out, the pension funds are empty. Principally because they have all been spent to lower the effective tax rate, and to forestall the onset of a negative savings rate. However the point should be made, given that Japan is always used as an example, that none of the Japanese believe that the government will be able to honour their pensions. The main effect of this is that the population saves all the harder, offsetting pension spending... In the case of the UK, lowering debt will cause such an increase in the effective tax rate that the division between rich and poor will be defined by your relationship with the state, and nothing to do with working at all, that tenuous link will start to be lost.

Posted by stillthinking @ 04:03 AM 2 Comments

Thursday, April 12, 2012

The timebomb under Britain’s property market

MoneyWeek: The timebomb under Britain’s property market

Britain's house prices have so far avoided an all-out crash. But as banks begin to raise mortgage rates, we could soon see property prices falling further, says John Stepek.

Posted by martingreen @ 03:10 PM 3 Comments

QE 3 ready

Bloomberg: U.S. Jobless Claims Increase to 380,000, Higher Than Forecast

Jobless claims increased 13,000 in the week ended April 7 to 380,000, the highest since Jan. 28, the Labor Department reported today in Washington. The median forecast in a Bloomberg News survey called for 355,000 claims. The only thing keeping USA going is the QE1,2,3,4,5,6,7,8,9,10

Posted by mark @ 01:47 PM 5 Comments

I have a cunning plan that involves exponential house price growth.

Telegraph: IMF warns of £750bn pensions time bomb

The IMF said yesterday that even a slightly faster than expected increase in life expectancy could impose a huge new financial burden on Western economies such as Britain. “The time to act is now,” it said. Governments and the financial sector have consistently underestimated how quickly average lifespans will rise, IMF researchers found. They believe it has been routinely understated by about three years, which could render public finances unsustainable, they warned. For Britain, the IMF calculated that on the “not unreasonable” assumption that the entire cost would fall on taxpayers, the country’s public debt would rise from 76 per cent of gross domestic product to as much as 135 per cent.

Posted by sibley's b'stard child @ 11:07 AM 17 Comments

Wednesday, April 11, 2012

No answers from Warner

Telegraph: Please, no more help for 'zombie' mortgage holders

Warner dissects the UK housing boom and its associated problems but misses the real point: property speculation is baked into our economy by our tax system. Warner: "The only reliable solution to our problems is time, and lots of it." but the next speculative boom and crash seems likely if we fail to address the real cause of the last property boom. If I live long enough to see the next one, I will be interested to see how quickly it rises and falls because the next time around, players will probably have learnt the rules a bit better: lock in profits by selling to a bigger sucker before it's too late and seek support in the biggest voting crowd.

Posted by quiet guy @ 10:42 PM 17 Comments

What's best - The Dollar or the Euro?

Bloomberg: U.S. Budget Deficit Widened to $198.2 Billion in March

"The U.S. government’s budget deficit widened 5.3 percent in March, as outlays increased on recurring benefit payments and a subsidy re-estimate for the Troubled Asset Relief Program".A reminder "The House on March 29 approved Ryan’s $3.5 trillion fiscal 2013 budget. Ryan says the plan would overhaul Medicare and cut food stamps, Pell grants and other programs for the poor while boosting defense spending and reducing taxes on high earners, in a bid to erase deficits exceeding $1 trillion". (Troubled Assets are at the bottom of both - like property loans).

Posted by alan @ 10:27 PM 2 Comments

Amazing what masquerades as news these days

Stroud Life: Couple say housing market better than 12 months ago

HEADLINE NEWS: Newspaper finds two people who think housing market is improving... as one of the comments says: "I met a bloke the other day and he rekons that there are a couple of houses that have sold down his road so it must be true."

Posted by stuartking @ 08:51 PM 2 Comments

Exchange tips about offsetting buy-to-let mortgages

The Daily Mash: 'I'm shocked, shocked to find that tax avoidance is going on in here!'

"...said he was 'appalled to discover that the cafe was a secret den of loopholes where undesirables can exchange tips about offsetting buy-to-let mortgages'." .... ... "But he stressed that it was his solemn duty to weed-out corruption right up until the point where it was no longer in his interest to do so."

Posted by doomwatch @ 02:52 PM 1 Comments

USA's future depends on scale of property write downs

FT: Housing regulator argues for debt forgiveness

"Edward DeMarco, the head of the Federal Housing Finance agency, said a ”preliminary” analysis showed that Fannie and Freddie might save $1.7bn by forgiving some principal rather than just postponing payments because of increased incentives from the US Treasury and the greater likelihood that such borrowers would repay." We're back to the Goldilocks theory, if the banks ask for too much, they won't get as much as if they keep people just the right side of starving to death. But they don't want to give too much away so that people can live comfortably either.

Posted by mark wadsworth @ 01:58 PM 2 Comments

Spain's future depends on scale of property write downs

Reuters: Investors run scared of Spain's battered banks

"The government has ruled out more state aid for a sector that comprises a motley mix of international lenders and heavily indebted local savings banks. That leaves two options: raising private capital or turning to the EU for bailout funds". Merrill Lynch are getting stressed about property prices falling further. (I thought Ms Legarde said Europe's problems were fixed last month?).

Posted by alan @ 11:47 AM 7 Comments

The new "mews shelters"

Daily mail: The 'Doomsday shelter' being built below Kansas prairie where millionaires will be able to sit out the Apocalypse in style

So far, four buyers have thrown down a total of about $7million (£4.4m) for havens to flee to when disaster happens or the end is nigh. And developer Larry Hall has options to retro-fit three more Cold War-era silos when this one fills up.

Posted by mark @ 09:58 AM 18 Comments

Good news, prices are going up.

FT Adviser: House prices to hit pre-recession levels in 2016

Low interest rates and increasing availability of mortgages will help the housing market edge upwards, according to the CEBR. UK property prices are set to increase by 0.8 per cent this year, confirming a view that house prices will edge up to pre-recession levels in 2016, data from the Centre for Economics and Business Research has revealed. . The CEBR bases its forecasts on a mix of micro and macro factors. . The key macro factors are affordability, employment and mortgage availability.

Posted by khards @ 09:13 AM 8 Comments

A call for planning reform

City A.M.: Time for a few home truths about Britain's housing crisis

We build fewer, smaller houses, in the wrong places, which keeps house prices high. This article points out that there is plenty of space in the UK that could be developed, including in the South East.

Posted by ah-so @ 08:17 AM 0 Comments

More abusive mortgages

Metro: Repossessions to rise as mortgage costs rocket

Brenda, 25, of Northolt continued: "I read all the brochures very carefully before signing up and all my friends told me how lucky I was. But my mortgage has been really abusive recently. At one stage I was on the verge of walking out but it said that if I did, it would hand over the keys to my flat to the bank and I'd never get back in again. It hasn't actually tried physical violence yet, but am very worried it will. I think perhaps my mortgage has got financial problems of its own, it once muttered something about having to hand over all my money to some people in The City."

Posted by mark wadsworth @ 07:41 AM 6 Comments

Tuesday, April 10, 2012

The real root of the housing/debt problem...

Renegade Economist: The Economics Spring

Paul Krugman, a Nobel-prizewinning member of the economics establishment, has been debating with Steve Keen, a radical who’s long argued that the conventional economics taught in universities is woefully unrealistic because it ignores important features of the real world like uncertainty, the role of banks, debt and how money is created.

Posted by neo-serf @ 07:27 PM 0 Comments

In the US, the market has done its work. In the UK, it is just getting started

MoneyWeek: In the US, the market has done its work. In the UK, it is just getting started

Unlike in the US, Britain's housing market has not been allowed to do its work. But the politicians can't keep the tide at bay forever. The house-price correction is coming.

Posted by martingreen @ 04:53 PM 5 Comments

Millions trapped in relationships with abusive mortgages

Daily Mail: The interest-only mortgage timebomb: Hundreds of thousands struggle to pay their debts prompting fears for the health of the property market

Janice, 38, of Camberwell recounted her harrowing experience: "When I first settled down with my mortgage, it promised to help me up the housing ladder and to leave me plenty of money left over for buying food and paying the heating bills. But it's changed and we seem to have drifted apart. It comes home late, it takes nearly all my wages and it keep taking phone calls in the other room. It's just not the same any more, I really want things to go back to how they were but it's not interested, it just wants more every month."

Posted by mark wadsworth @ 04:02 PM 5 Comments

Shocked he's shocked ?!

Torygraph: George Osborne: I'm going after the wealthy tax dodgers

Mr Osborne told The Daily Telegraph: “I was shocked ...." Maybe shocked to find out they're netting out at 90%. Shortly after he was on the phone shouting at his accountant ? Not sure how fiddling with income tax will stop the loop holes of getting "dividends" ? "Several of them offset the cost of business mortgages or borrowing on buy-to-let properties against their income tax bill, while others took advantage of relief on donations to charity."

Posted by doomwatch @ 11:10 AM 11 Comments

Research

IEA: Government’s timid reform will not solve chronic housing affordability problems

Not enough is being done to reduce the extraordinarily high cost of housing in Britain. This is the finding of a new report released today by the Institute of Economic Affairs Abundance of land, shortage of housing. In the research Kristian Niemietz looks at how housing costs in the UK have exploded in recent decades. Real-terms house prices in 2011 were more than two-and-a-half-times higher than in 1975, with rent levels following suit. Nothing about this was inevitable. Many other countries have experienced rising housing costs as well, but in most other cases, the increase has been much lower and/or largely transitory. In the USA, Germany and Switzerland, real-terms house prices are still close to their 1975 levels.

Posted by dill @ 10:14 AM 9 Comments

And now for a Welsh version

BBC: House prices and sales expected to 'fall' in next quarter

House prices and sales in Wales are expected to fall over the coming quarter, according to a new survey. The Royal Institute of Chartered Surveyors (Rics) says demand in the market held firm in March as some first-time buyers looked to beat the stamp-duty holiday. The exemption on paying 1% tax on properties worth between £125,000 and £250,000 has now ended. The flow of new properties coming onto the Welsh market remained stable. Rics said new buyer inquires in Wales continued to rise with 4% more surveyors reporting increases rather than decreases in demand. But it said prices continued to edge downwards across Wales, albeit at a slower pace than in recent months - a trend expected to continue. It said 19% more surveyors reported falls rather than rises in prices, representing.....

Posted by khards @ 09:32 AM 1 Comments

Germany’s house price bubble is only just getting started

MoneyWeek: Germany’s house price bubble is only just getting started

As Germans look for investments to beat rising inflation, they're turning to property. And that's fuelling a bubble. Merryn Somerset Webb explains how you can profit

Posted by martingreen @ 09:30 AM 1 Comments

Misleading reporting from BBC

BBC News: New buyer interest edged up in March, says Rics

The Headline reads "New buyer interest edged up in March, says Rics" The Justification, "The Royal Institution of Chartered Surveyors (Rics) said that, compared with February, 9% more surveyors reported an increase in inquiries from potential buyers." It then follows "But prices in all regions except London continued to fall." Headline should read "House prices in all regions except London continue to fall."

Posted by wdbeast @ 08:30 AM 4 Comments

Monday, April 9, 2012

Volumes

Telegraph: Housing market slows to 2008 level

Activity in the housing market slowed last year to its weakest level since 2008, according to a respected measure, as worries about the economy and problems scraping together a big enough mortgage deposit weighed on demand.

Posted by dill @ 11:29 AM 14 Comments

Sales hotspots slump in 2011

Planet Property: Sales hotspots slump in 2011

Just 40% (202) of the 500 towns tracked in England and Wales were 'property sales hotspots' – towns that recorded a rise in home sales – in 2011.

Posted by the planet @ 09:39 AM 0 Comments

Sunday, April 8, 2012

Schadenfreude of the best kind

Guardian: The game's up as Olympic rentals gold rush tails off into an also-ran

Landlords hoping to make a quick buck by letting out their properties to Olympics visitors at inflated rents could be in for a nasty surprise. Estate agents warn that the 2012 games rental market is being flooded and that a huge number of properties remain unlet. "We physically can't get out to see all these properties because of the number of enquiries coming through from potential landlords," the Foxtons agent responsible for Olympic lets in north London told the Observer when we contacted estate agents, posing as a potential Olympics landlord. Fewer than 10 of the 500 properties Foxtons was offering at a premium rent during the games in the Islington, Clerkenwell and Shoreditch area had been let, he said, adding: "Absolutely do not kick out your tenants for the Olympics."

Posted by drewster @ 09:41 PM 5 Comments

Even wealthy foreign buyers are priced out of London

Scotsman: The coming of the Chinese lairds to Scotland

Leading property agents across Scotland are reporting a rise in interest from rich Chinese and Taiwanese buyers, who have made their fortunes in the Far East boom. Wealthy Russians are also snapping up prime properties in Edinburgh for the first time. “This year so far I’ve been out showing properties [in Scotland] to Chinese, Taiwanese and Saudis. It’s something that we’ve seen growing for a while.” “If you’re a foreign buyer you want to be investing in a tangible asset. They will initially flock to London, tour round and get outbid, get disappointed and begin to look elsewhere. In our Edinburgh market we have sold three properties to Russians in the past six months.”

Posted by drewster @ 09:37 PM 7 Comments

Meanwhile...

Independent: Beating the housing shortage: one home, three generations

More than 500,000 households now contain children, parents and grandparents – and the figure is set to soar.

Posted by dill @ 01:49 PM 1 Comments

Saturday, April 7, 2012

However...

The Guardian: Ending housing benefit for under-25s? A policy with more holes than a sieve

I think it was about ten years ago that I heard about the scam of disowning children/early adults in order for them to qualify for social housing. IMO government panic stations, no money to pay and no housing available. I think though that as a lot of people probably now realise, that if you can't get social housing with a family, then you have no chance as a single person without children, and that the effort of staying out of the workforce long enough to get subsidised housing is no longer worth it, so possibly more support for this than would be recognised. Guardian screams about people without family or backup but I am sure this is for people with family and alternative accomodation.

Posted by stillthinking @ 02:19 PM 10 Comments

Halifax trying to tell us - everything is just fine

This is Money: Cost of running a house hits £10,000 a year despite slump in mortgage repayments

Martin Ellis from the Halifax said, "In 2008, the average annual repayments bill was £4,521. Today it is £3,485 – a drop of more than £1,000. However, this fall has been more than offset by the increase in other bills." So this assumes the mortgage is interest only, so of course it is cheaper as you may never pay back the loan.

Posted by will @ 09:49 AM 3 Comments

Friday, April 6, 2012

Tip of the Iceberg?

Belfast Telegraph: Boom to bust: The Ulster millionaire family who lived a lie

To their friends and neighbours, Samuel and Lorna Moore enjoyed a lifestyle similar to the rich and famous. However, behind the extravagance and big spending the reality was somewhat different, and the couple were living way beyond their means. in January 2008, 12 months before the company went into liquidation a World Rally Championship car was purchased as a company car for £470,000. Then the bubble burst, with the value of development land plummeting by up to 90% while properties owned by the company saw their paper value at least halved leaving a portfolio of empty properties strewn across Northern Ireland.

Posted by enuii @ 09:49 PM 0 Comments

Video

Telegraph: Roger Bootle: UK house prices to fall further

Telegraph columnist and Wolfson prize nominee Roger Bootle has long been a bear of the housing market. He tells Robert Miller why he thinks property prices will fall further.

Posted by dill @ 12:31 PM 6 Comments

Government proposal would hit thousands of vulnerable young people, charities and campaign groups wa

The Guardian: Concern over plan to withdraw housing benefit from under-25s

Housing charities and campaign groups have been outraged by an idea floated by Downing Street to strip housing benefits from under-25s and make them move in with "mum and dad" as a way to "make work pay" and save the UK from growing welfare expenditure.

Posted by loneranger @ 11:39 AM 0 Comments

"53,000 people approaching retirement age in UK have int-only mortgages and no savings to pay"

FTAdviser: Retired Britons are £96bn in debt: MGM Advantage

UK pensioners have more than £90bn of personal debt, making it increasingly difficult for them to maintain a decent standard of living, fresh figures from MGM Advantage have revealed................“I think many expect to inherit money from their parents, who benefitted from the golden age of large house price increases, final salary pensions and free university education, which no longer exist"

Posted by jack c @ 10:31 AM 9 Comments

Thursday, April 5, 2012

"Lenders are apparently adopting the increasingly popular tactic of capitalising mortgage arrears"

Mortgagestrategy: Threat of reducing lender forbearance needs to be tackled

Mortgage forbearance is not new................Paul Diggle, property economist at Capital Economics, recently tried to quantify how important a role forbearance has played in propping up the housing market.

Posted by jack c @ 03:21 PM 4 Comments

MPC outsources decision making to Matt Lucas & David Walliams (computer say's 0.5%)

BBC: UK interest rates held at 0.5%

The Bank of England has continued to hold UK interest rates at 0.5% and announced no change to its quantitative easing (QE) programme. QE is the Bank's scheme to boost the economy by buying bonds. In February, the Bank's monetary policy committee (MPC) boosted the stimulus to £325bn. Rates have been at 0.5% since March 2009. Earlier, data showed a shock 1% fall in manufacturing in February, suggesting the economic recovery may not be easy.The central bank has said that the UK is unlikely to enter recession this year, forecasting growth of about 1% in 2012. But the Bank's governor, Sir Mervyn King, has warned that the economy will "zig zag" between growth and contraction throughout the year.

Posted by jack c @ 01:57 PM 3 Comments

One for Hunger Games fans - buy the ghost town used in the film

Planet Property Blog: Hunger Games' District 12 for sale

Henry River Mill Village in North Carolina which was the setting for the impoverished mining area, Sector 12, in the film The Hunger Games has been put up for sale by its 83 year-old owner.

Posted by property addict @ 01:19 PM 0 Comments

Nice read..Enjoy

Mail: Take cover! The housing market is heading for a bloody and protracted crash

That dip will be protracted, bloody – and furiously resisted by the banks who will demand further bailouts to protect their business models. (Read: protect their bonuses.) When Hometrack comments that the market isn’t ‘firing on all cylinders’, the best response is a cynical laugh. The market will fire again, when prices are sane. For now, stand well back and take cover.

Posted by happy mondays @ 08:44 AM 19 Comments

Wednesday, April 4, 2012

Pesky FTB's

Independent: First-time buyers push house prices up

First-time buyers rushing to jump on the property ladder before the end of a stamp duty holiday helped house prices jump 2.2% in March, the Halifax revealed today.

Posted by happy mondays @ 05:40 PM 10 Comments

Estate agents posed as burglars to sell flats

Evening Standard: Burglars ‘posed as property agents to raid flats’

These are the smartly dressed estate agents being hunted by police after selling £180,000 worth of apartments in south London. The two men, caught on CCTV, are thought to have gained entry to the apartment buildings by pretending to be burglars before selling three homes. Victims of two sales at the Viridian Apartments in Battersea Park Road on February 1 returned to find their flats nicely decorated with lots of yellow stuff and vases full of twigs to attract buyeres.

Posted by mark wadsworth @ 04:50 PM 7 Comments

Ooh Scary

Telegraph: Interest-only loans: how to defuse your mortgage time bomb

'Between 2011 and 2020 the FSA thinks that 1.5m such mortgages, worth £120bn, will be due for repayment. The FSA believes that 80pc of the borrowers have no repayment strategy for these mortgages, and will enter retirement in debt because of this.' This happened because houses cost too much.

Posted by will @ 03:55 PM 5 Comments

NIMBYs strike back.

Estate Agent Today: Local councils launch court battle against high speed rail link

A group of local authorities has launched its fight against the high-speed rail project. The 18-strong consortium, called 51m because they claim that the scheme would cost each parliamentary constituency £51m, has lodged a judicial review of the £33bn HS2. If the High Court decides that the councils have a case, their claim could be heard later this year. The scheme, which would involve the demolition and blight of thousands of properties, is being opposed by councils outside London, and by two London authorities – Labour-controlled Camden and Tory-run Hillingdon. The rail line would begin in Camden – demolishing more than 200 homes and putting a further 200-plus at risk of demolition – and finish in Birmingham

Posted by sibley's b'stard child @ 01:21 PM 1 Comments

CML moves to defuse interest-only ‘timebomb’

Planet Property: CML moves to defuse interest-only ‘timebomb’

Interest-only mortgages are a ‘ticking timebomb’, according to the incoming head of the Financial Conduct Authority. Oh no they’re not, says the Council of Mortgage Lenders…

Posted by the planet @ 11:31 AM 0 Comments

Tenants in arrears close to 100,000

Planet Property: Tenants in arrears close to 100,000

There's been a 20% rise in the number of tenants in arrears

Posted by the planet @ 11:19 AM 0 Comments

Didn't they all get 2.2% richer last month?

Daily Mail: Fears for millions of mortgage prisoners trapped by loans taken out during boom years

* Half of borrowers, who took out loans between 2005 and 2011, could be stuck in limbo - unable to remortgage or find a better deal * New rules could end interest only and self-certified mortgages for millions * Borrowers face 'stress test' to ensure they can afford interest rate hikes

Posted by mark wadsworth @ 10:25 AM 11 Comments

Halifax house price index shows prices down by 0.6% annually

Myfinances.co.uk: Halifax reports house prices stable over past year

Halifax has released its house price index for March which reveals transactions are low causing monthly fluctuations but that over the last quarter prices have fallen by just 0.1 per cent.

Posted by ben @ 08:37 AM 0 Comments

House Price Crash Cancelled!

ForexLive: Halifax: +2.2% MoM, -0.6%YoY

UK house prices got a boost in March. The Halifax index showed prices rising 2.2% on the month and falling 0.6% on the year.. Housing Economist Martin Ellis said: “Efforts by first-time buyers to beat the expiry of the stamp duty holiday at the end of March have probably increased sales in recent months and may have helped to support prices. "

Posted by little professor @ 08:24 AM 14 Comments

Tuesday, April 3, 2012

They've got property, give them money

Western Morning News: 'Roundabout of debt' for South West's pensioners

Asset-rich, cash-starved pensioners in the South West are £14 billion in the red and suffer from some of the biggest levels of personal debt in the country, according to new research.

Posted by stuartking @ 11:47 PM 8 Comments

Rent-only private estates: the future is here

Globe & Mail: Welcome to Ikea-land: Furniture giant begins urban planning project

Where once they placed a couch in a living room, the Swedes now want to place you and 6,000 neighbours into a neglected corner of east London. Their bold, high-concept notion of an urban ’hood could be an important solution to the housing-supply shortages that plague many large cities. But what might make it seem alien to Brits and North Americans is Ikea’s very active role in the neighbourhood’s life – in large part because the houses will be fully owned by Ikea. In a model that is the norm in Sweden and other parts of continental Europe, but alien to English-speaking countries, this will be an all-rental private neighbourhood, run and overseen by a private company.

Posted by drewster @ 10:56 PM 12 Comments

Why did Khards move again?

This is Cornwall: Property prices could see cathedral city turned into 'non-Cornish' zone

Property prices in Truro are now 10x the local average salary....

Posted by mapp1066 @ 10:27 PM 4 Comments

US have hidden their foreclosed homes

Bloomberg: Home Prices Seen Dropping 10% in U.S.

'Sales of repossessed properties probably will rise 25 percent this year from 1 million in 2011, according to Moody’s Analytics Inc. Prices for the homes could drop as much as 10 percent because they deteriorated as they were held in reserve during investigations by state officials'

Posted by will @ 09:05 PM 1 Comments

No Capital

Zero Hedge: The Ugly Truth For Northern Europeans

Interesting article pointing out that if you as a German worker save 50% of your salary to lend to the Greeks to purchase your manufactured goods then you are vendor financing, and if the Greeks cannot ever pay back that vendor financing then you are effectively working for 50% of the wage as you see it. As in, the pensions and so forth of the Germans, or the North per the article, are all vapour. Which is exactly my opinion of the UK except the boomers vendor financed themselves by immediately spending their own savings but rather meaninglessly holding the same savings as due on the books. Irrespective of that there is no capital. This article argues that the political class have no choice other than to monetise, to safeguard their own positions.

Posted by stillthinking @ 02:20 PM 7 Comments

Another desperate effort to prop up the British Ponzi housing market...

Renegade Economist: Council Tenants - the next Ponzi Target

This attempted reinvigoration of the 1980’s right-to-buy scheme is another ad hoc response to short term pressure. Tempting people to take on a huge debt and enter the bottom of the housing market pyramid is a cynical way to attempt to ‘re-boot’ the housing market. Implicit in this action is the view that an inflated housing bubble is actually an optimum national economic condition.

Posted by neo-serf @ 01:53 PM 0 Comments

Bear nibbles

BBC: Sudden drop in mortgage deals on offer

The number of mortgage deals on offer has fallen back suddenly, after rising steadily towards the end of last year. The number of deals peaked at 2,757 in February, the highest monthly figure since 2007, said Moneyfacts. They then dropped back to 2,325 and 2,288 in March and April respectively.

Posted by mark wadsworth @ 01:51 PM 2 Comments

Crime does pay

Northampton Chronicle and Echo: Fraudster who masqueraded as single mum and claimed £104,000 in benefits escapes prison sentence

"A BENEFIT fraudster who pretended to be a single parent and then claimed £104,000 benefits over almost a decade has escaped a prison sentence." This country has gone mad.

Posted by thecountofnowhere @ 01:14 PM 0 Comments

A Sad Day for HPC :(

House Price Crash: Meltdown prior to the 21st March 2012

Well guys i thought i would take a look at an old article or 3 on here and see the comments. Enough said about the tortuous search "facility" ha ha. But now whats happened ? All the articles pre 21st March this year have had the comments deleted .... Whats going on ... Its enough to turn a mild mannered pramatic soul into an Alex Jones conspiraloon..... Have the mods acquired a reptilian guise? Any comments from the mods?

Posted by techieman @ 10:35 AM 13 Comments

Mortgage products double since base rate fell to 0.5%

Myfinances.co.uk: Number of mortgages "doubled in past three years"

The Bank of England reports that the number of mortgages available has doubled in the past three years.

Posted by ben @ 10:26 AM 0 Comments

Just read the comments, this government are not goinf to get re-elected.

Daily Mail: £75,000 discounts offered to council tenants as Cameron revives right-to-buy policy

Mr Cameron will today say he wants to help families who ‘play by the rules’. He will say: ‘I want many more people to achieve the dream of home ownership. In the 1980s, Right to Buy helped millions of people living in council housing achieve their aspiration of owning their own home. ‘This vital rung on the property ladder was all but removed. ‘This Government is now putting it back by dramatically increasing the discount rates.’ "Just when you thought this goverment couldn't come up with any more stupid ideas, they re-introduce the idea of those already fortunate enough to have been allocated a 'council house', to now be given the opportunity to buy that property at a massive discount."

Posted by khards @ 10:26 AM 2 Comments

Construction sector continues to expand

Myfinances.co.uk: Construction data eases recession fears

The construction sector continued to expand in March boosting hopes that the UK will avoid falling back into recession

Posted by ben @ 10:22 AM 0 Comments

Joy For Homeowners As Mortgage Rates Soar

Daily Express: MORTGAGE RISE TO HIT MILLIONS

MILLIONS of homeowners are facing “shocking” mortgage rises as banks ramp up their lending rates. Hard-pressed families will be punished in the coming weeks despite base interest rates being at a record low for three years.

Posted by rantnrave @ 02:42 AM 10 Comments

Monday, April 2, 2012

Choke holds on mortgages tightens

Mail: Mortgage squeeze hits yet MORE homeowners, as now the Co-op hikes monthly payments

The Co-operative Bank has become the latest lender to tighten the squeeze on homeowners by hiking their mortgage payments.

Posted by happy mondays @ 03:02 PM 23 Comments

'Gradually' paying off mortgages...

BBC: Housing equity data points to subdued market

The data suggests that households are now staying put, and gradually paying off their mortgages in line with their repayments schedule, and possibly injecting more of their own money into their properties via home improvements.

Posted by mapp1066 @ 01:29 PM 5 Comments

Not particularly relevant but awesome nonetheless

Daily Mail: Stunning photos show TEN-STOREY tree house...

Apart from the fact it doesn't seem to have windows, let alone lockable doors.

Posted by mark wadsworth @ 12:38 PM 2 Comments

How reckless lending drove up house prices

Planet Property: How reckless lending drove up house prices

A new infographic from Shelter explains one aspect of the boom - but is it the full story?

Posted by the planet @ 11:33 AM 0 Comments

Bank of England reveals sharp drop in mortgage approvals

Planet Property: Bank of England reveals sharp drop in mortgage approvals

Approvals for house purchase fell to their lowest level since June, according to new data from the Bank of England.

Posted by the planet @ 10:57 AM 0 Comments

A lesson in orchestrating one's demise in the race to the bottom.

Estate Agent Today: Four in ten agents say one-third of their homes are over-priced

An astonishing poll of estate agents claims that nearly four in ten believe that property on their books is over-priced. The claim has emerged in a poll of over 200 agents conducted by review site MeetMyAgent. The poll was conducted between March 20 and 24 and claims to show that 38% of agents believe that more than 30% of their stock is over-priced

Posted by sibley's b'stard child @ 09:59 AM 10 Comments

Great housing market video from Shelter

AboutProperty: Lenders claim new mortgage rules too risk averse

Shelter has launched an online animation to illustrate the effects of irresponsible mortgage lending in the past and why we should never go back to the reckless practices seen before 2007.

Posted by phil @ 09:12 AM 0 Comments

Sunday, April 1, 2012

Whos the author? Mark Wadsworth?

New Statesman: Leader: Land reform remains one of the great progressive causes

69 per cent of the acreage of Britain is owned by 0.6 per cent of the population. More pertinently, 158,000 families own 41 million acres of land, while 24 milion families live on the four million acres of the urban plot.

Posted by greenmind @ 04:02 PM 32 Comments

New legislation offers Right-to-Build

24dash: Shapps launches radical grant plans

Housing minister Grant Shapps wants to bypass housing associations in the next funding round by giving housing grants directly to tenants to build their own homes. Hailed as the “final piece of the housing policy jigsaw”, Shapps says the move – outlined in a one-day consultation to be published today – could provide some 1 million new homes over the next four years. New developments will not need to make a normal application for planning permission. Taxpayer-funded RBS will provide low-interest rate mortgages for the scheme. The homes vacated by social housing tenants will be used by housing associations to charge at market rent as the demand for private rented housing soars. The consultation, Growing Communities Through Self-Build, closes at midday today.

Posted by drewster @ 11:22 AM 5 Comments

Main Blog | Archive | Add Article | Blog Policies