July 2012 Archive

Monday, July 30, 2012

Deleverage Deleverage Deleverage!

Telegraph: Biggest Fall in mortgage lending in 18 months

Mortgage approvals and lending slumped in June, Bank of England data showed, reflecting broader economic weakness due to extra public holidays and wet weather. Net mortgage lending -£355m, mortgage approvals -5k down on forecasts, M4 -1.6% in June and -5.6% for the year (despite QE). BOE expected to leave rates and QE on hold this week(!)

Posted by bankster @ 04:19 PM 0 Comments

Trouble ahead?

FT.com: Repossession threat to interest-only loans

The proportion of homeowners with an interest-only mortgage who face repossession could rise in the coming years, as those with maturing loans find they cannot refinance them....[not that anybody took on loans they couldn't afford and banks ever turned a blind eye].

Posted by adrian h @ 01:31 PM 0 Comments

Economist suggests lighting match and dropping it on your savings to keep country warm

Telegraph: A dose of inflation could start to look like a cure for our current ills

Some keen observers believe that higher inflation offers the best way out of our plight. Are they right? The usual candidates for leading us out of recession – government and consumers – are weighed down by debt. Their response has been to try to cut spending. But that merely reduces someone else’s income and so pushes the debt problem around the system. Better to get the less indebted to spend more, if you can. Higher inflation appears to offer a credible alternative. Since most debt is fixed in nominal terms, as pay and prices (and therefore money GDP and tax receipts) go up, the ratio of debt to income falls. Accordingly, inflation is the classic way to wipe out debt.

Posted by general congreve @ 12:52 PM 25 Comments

Bank of England mortgage approvals data

Myfinances.co.uk: Mortgage lending drops to lowest level for 18 months

The Bank of England has released details of lending to individuals for June 2012 which shows that mortgage lending has fallen to its lowest level since December 2010.

Posted by ben @ 12:08 PM 0 Comments

NT, CPRE and heart & lungs of England breath sigh of relief

Estate Agent Today: New home starts take a 24% tumble

The house building industry’s serious difficulties have been revealed by new figures for the second quarter of this year, showing that new home registrations were down by 24% on the same period last year. According to the NHBC, private homes were down by 10% on the same period in 2011, while public registrations toppled by half (49%). The figures for June itself were worse still for the private sector. A total of 6,685 new homes were registered, 26% down on June last year, when there were 9,029. During the month, 1,643 new homes were registered in the public sector, compared with 5,536 in 2011 – a 70% drop

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

Yes, it was a bit rainy, wasn't it?

Reuters: June mortgage lending suffers biggest slump in 18 months

"British mortgage approvals and lending slumped in June, echoing broader economic weakness that month due to extra public holidays and very wet weather, Bank of England data showed on Monday. Consumer lending, such as credit card borrowing, held up relatively well, but house purchase activity fell to its lowest in one and a half years and headline money supply figures showed their biggest annual drop since records began in 1983" (..blame the Olympics next time)!

Posted by alan @ 10:15 AM 4 Comments

Hometrack reports 3.4% fall in demand in south-east

Myfinances.co.uk: Property market slowdown extends to London and the south-east

A new survey of the UK property market provides evidence that the slowdown is extending to London and the south-east.

Posted by ben @ 09:53 AM 0 Comments

Bring it on!

Telegraph: House prices fall for first time in seven months

The gap between supply and demand is set to widen following an early and unusually rapid seasonal summer slowdown, meaning prices are likely to fall further in the coming months into autumn, according to property analyst's latest survey.

Posted by happy mondays @ 08:22 AM 4 Comments

Building should be booming, with the housing shortage!

Mail: Building gloom hits economy as more than 1,500 construction firms close this year

Building gloom hits economy as more than 1,500 construction firms close this year

Posted by happy mondays @ 08:18 AM 4 Comments

Eurozone failure could impact the UK

Reuters: Euro zone crisis heads for September crunch

"September 12 is a crucial date in the European diary. On that day the German Constitutional Court is scheduled to rule on whether a treaty establishing the euro zone's permanent bailout fund, the 500 billion euro European Stability Mechanism (ESM), is compatible with the German constitution. A positive ruling is vital, because Germany is the biggest funder of the ESM, and the euro zone would be powerless to protect Spain or Italy without the ESM." Effect on HPC? I'm wondering if we will see another interest rate cut to try to protect our exports to the EU.

Posted by quiet guy @ 07:46 AM 2 Comments

Sunday, July 29, 2012

Credibility ?

EBC: Bumblebee speech by Mario Draghi, 26 July 2012

The euro is like a bumblebee. This is a mystery of nature because it shouldn’t fly but instead it does. So the euro was a bumblebee that flew very well for several years. And now – and I think people ask “how come?” – probably there was something in the atmosphere, in the air, that made the bumblebee fly. Now something must have changed in the air, and we know what after the financial crisis. The bumblebee would have to graduate to a real bee. And that’s what it’s doing. I think I will stop here; I think my assessment was candid and frank enough.

Posted by khards @ 09:43 AM 7 Comments

FTSE 350 Pension minefield

CIO: UK Pension Liabilities Largest Ever Relative to Market Cap

Aggregate liabilities of FTSE350 companies at 35% of market capitalization. This is a strange one because you would imagine that the share price would fall to reflect these liabilities, but as the price falls the liabilities as a percentage would go up ! So maybe its easier to imagine that without pension liabilities the share price would be equivalently higher by around 33%.

Posted by stillthinking @ 03:43 AM 3 Comments

Saturday, July 28, 2012


YouTube: Debt Bomb

Dominic Frisby's hit. (Watch out for those bubbles, chaps!).

Posted by alan @ 05:42 PM 16 Comments

S&P give UK "stable" outlook and retains triple A rating

Myfinances.co.uk: UK retains triple A rating with Standard & Poor's

The UK will keep its triple-A credit rating for the time being, according to ratings agency Standard & Poor’s (S&P).

Posted by ben @ 11:51 AM 0 Comments

Friday, July 27, 2012

Gimme, Gimme, Gimme

Reuters: Spain discussed $366 billion bailout with Germany

"The temporary bailout fund, the European Financial Stability Facility (EFSF), has 259.5 billion euros of lending capacity left, of which up to 100 billion is already earmarked for the recapitalization of Spain's stricken banks. Under current agreements the ESM was to start with only 100 billion euros of lending capacity in July, and its firepower was to rise to 200 billion euros in October as the second tranche of its capital was to be paid in by euro zone governments". (Are the Germans softening?).

Posted by alan @ 06:44 PM 2 Comments

Halifax cut mortgage rates

Myfinances.co.uk: Halifax Intermediaries cut rates across entire mortgage range

Halifax Intermediaries has made further cuts to mortgage interest rates across its entire range of mortgages for the second time this week.

Posted by ben @ 05:24 PM 0 Comments

OK in principle

Telegraph: Academies given power to hire unqualified teachers

Of course this is an OK idea in principle, but in reality probably the UK just legislated that the cheapest idiot in the box is ok just satisfy the budget. So ten years from now a UK youth even more ignorant than today. The ignorant must serve their masters the elderly.

Posted by stillthinking @ 05:07 PM 3 Comments

First Direct cuts mortgage rates

Myfinances.co.uk: First Direct cuts rates on all standard and fee free mortgages

First Direct have announced that they are to cut interest rates across the whole of its standard and fee free mortgage range.

Posted by ben @ 04:52 PM 0 Comments

The press raising concerns publicly? Reminds me of the months before the tech bubble burst.

EA Today: Warning over London housing market 'bubble'

London’s property market is at risk of turning into a housing bubble, because of the amount of money being ploughed in by rich foreigners who buy houses that they don’t live in. New research by the Future of London and the Smith Institute says London’s housing market has become distorted and dysfunctional, pricing out local people. It says that super-rich foreigners buying luxury homes in London are now spending double what they were a year ago, at £5bn. Over 60% of new-build homes in central London are currently bought by overseas investors, mainly from the Far East, with a high proportion being kept empty.

Posted by general congreve @ 12:21 PM 21 Comments

Every little helps

Estate Agent Today: Rethink on empty homes council tax could hit sellers

New plans to give local authorities power to charge council tax on homes as soon as they become empty could hit sellers and landlords hard – and give agents an administrative headache. At the moment, when a domestic property falls vacant, the owner is granted a mandatory period of six months before council tax becomes payable. Ministers want to abolish this mandatory requirement. They could if they wished charge nothing, or the full 100% council tax, or anything in between. The carrot for local councils is undeniable – they would be able to hang on to every penny. After that, full council tax would be payable, as now

Posted by sibley's b'stard child @ 11:06 AM 1 Comments

No Kidding Sir!

Telegraph: Sir Mervyn King admits policymakers made 'major mistakes' in financial crisis

"Mervyn King, governor of the BoE, has said for the first time that the financial crisis was the result of “major mistakes” by economic policymakers and not the bad behaviour of bankers". (...never mind...take some pride in the Olympics!)

Posted by alan @ 10:02 AM 4 Comments

Companies can't invest

CityWireMoney: CBI warns pension costs are damaging UK growth

The UK government legislates that pension schemes buy additional gilts to secure sufficient funding when the yield falls, and the government also artificially restricts yields through QE. So this is certainly a deliberate policy. However, this fleecing of companies with pension schemes takes potential investment money -out- and straight to government day to day consumption. Give a man a fish or a net. "Last Friday Scottish cashmere company Dawson International became the latest company to succumb to its growing pension deficit." I am guessing that a Scottish cashmere company would have every opportunity to be a global exporter, but no, they got bled to death by the UK government and their ability to provide pensions or jobs is over.

Posted by stillthinking @ 04:04 AM 11 Comments

Thursday, July 26, 2012

House prices in the UK, Oz and Canada have a long way to fall

Counterpunch: The trouble with bubbles

"...there is good reason to believe that house prices in these countries (UK, Australia and Canada) will not be sustained anywhere near current levels. All three are likely to see the same sort of house price collapse that has wreaked so much havoc on the U.S. economy.....a collapsed bubble will have the same sort of devastating impact on the economies of these countries and the lives of their citizens as it has in the United States". It would have been so easy for central banks to forestall the bubbles but now there is no way to deflate them without causing considerable pain..

Posted by icarus @ 10:03 PM 13 Comments

Can't lend or won't lend?

AboutProperty: Taxpayer-owned banks cut mortgage lending in 2011

The two big banks part owned by the taxpayer both reduced their mortgage lending by £3.6bn last year despite pleas by ministers to lend more money.

Posted by phil @ 05:20 PM 0 Comments

The cynicism of NuLabour

Guardian: Tony Blair tells London 2012 critics to show 'a bit of pride'

Blair announces that anybody who suggests the 9 billion spent on the Olympics lacks sufficient pride in the UK, while also stating that a decade is needed to see if it was worth it. I think if Blair touched me I would puke on myself. You can't say because this, you can't say because that.

Posted by stillthinking @ 05:04 PM 7 Comments

Put this up, as i'm bored!

Investment sense: Housing round up

“Sellers need to adjust, as this new world is the new norm,”

Posted by happy mondays @ 03:33 PM 0 Comments


Reallymoving: How to land your dream house

As a result of the dwindling property values of the past few years, there has been a noticeable decline in the number of properties coming to the market. Out of the people who would otherwise be selling their homes and moving on, some are trapped in negative equity, and others are biding their time to see if prices do creep back up again before they think about selling. Consequently, with fewer homes being added to the market, buyers may find that there is stiff competition to get to the front of the queue for the most favourable properties. With demand higher than supply, you may need to work just that bit harder if you want your dream residence to become your very own home. Here are some hints to get ahead of the rest.

Posted by danielsomers @ 02:22 PM 0 Comments

Hurrah for political short-termism etc (Part 2)

Evening Standard (MBVNIF): Stars' victory as Hammersmith council scraps town hall development

Stars including Colin Firth, Ralph Fiennes and Joely Richardson are today celebrating the decision to scrap plans for the redevelopment of the Hammersmith Town Hall site. Hammersmith and Fulham council leader Nicholas Botterill went further and apologised for the plans, which included 14-storey towers and the loss of a much-loved Art Deco cinema. He said: “We got it wrong with the previous King Street proposals and we have learned from it. We guarantee the tallest buildings in a new scheme will not exceed the height of the existing town hall extension.” John Jones, chairman of action group Save our Skyline which collected 8,500 signatures opposing the scheme, said: “We welcome the fact that our council and leader are showing a willingness to address the serious concerns etc"

Posted by mark wadsworth @ 01:16 PM 8 Comments

Holy house prices Batman!

Planet Property Blog: How much does Wayne Manor cost?

Great spoof details for Wayne Manor... Using a map of Wayne Manor created as part of a role-playing game released in the early ‘90s Movoto gleaned the size of the property, including 11 bedrooms, 7 baths, a pool, gym, library, ballroom, game room and gallery. However, their calculations don’t include the multi-leveled Batcave, which is outfitted with state-of-the-art technology spread throughout another gym, laboratory, museum, workroom, and cave-front water access, because they believe this would be sealed and kept safe for Batman’s inevitable return.

Posted by property addict @ 01:10 PM 0 Comments

Nationwide in new IT glitch

Myfinances.co.uk: Nationwide customers see payments taken twice

Reports are emerging that some Nationwide customers are seeing debit card payments being taken twice.

Posted by ben @ 12:57 PM 0 Comments

Is Santander really safe?

Reuters: Santander profit halves on property writedowns

"The euro zone's biggest bank, Santander (SAN.MC), said on Thursday first-half profit halved after it took writedowns on deteriorating Spanish real estate assets while deposits in Spain jumped during the quarter". "Santander said it had now completed 70 percent of writedowns against repossessed housing and unrecoverable loans to developers demanded by government in an attempt to belatedly recognise losses from a 2008 property crash". (....and the rest of the Spanish Banks??)

Posted by alan @ 10:36 AM 1 Comments

Hurrah for political short-termism and a big f-you to the next generation

Evening Sub-Standard: Ex-council flats are right to a goldmine

More than 3,600 former council flats in Westminster, bought under the Right to Buy scheme, are now in the hands of private landlords, transforming many council estates into buy-to-let goldmines, the latest figures show. Ironically, private landlords are now making huge profits by renting former council flats back to the council to house its homeless on housing benefits. Westminster has been a champion of Right to Buy and has sold nearly half of its housing stock since the Eighties. Tenants who exercised their Right to Buy and then sold up often profited handsomely because of booming property prices in the borough, which includes some of the capital’s most expensive postcodes.

Posted by sibley's b'stard child @ 09:15 AM 12 Comments

Duckin' and Divin'

BBC: BBA 'warned weekly' about Libor says former rate-compiler

The British Bankers' Association was given weekly warnings in 2008 that the process of setting the Libor interest rates was being distorted. A former member of the Libor compilation team at Thomson Reuters says it regularly warned senior BBA staff about the problem. Its reports regularly highlighted the implausible rate submissions of several banks involved in the Libor process. The BBA denied these had amounted to warnings of wrong-doing. (It suited them to ignore warnings, didn't it?)

Posted by alan @ 09:06 AM 1 Comments

Because he won't change

Press Association: PM appeals for global investment

Because he won't change domestic incentives through the tax system.

Posted by stillthinking @ 04:28 AM 2 Comments

Wednesday, July 25, 2012

UK economy shrinking

Zero Hedge: British Double Dip Accelerates Following "Terrible" GDP Data

The current incumbents to try and rescue what is basically a capsized burnt out ship, but I am put in mind of the excellent quote "austerity is not an elective action". The UK is going to be poor with a 50% tax rate and a housing shortage, basically like any failed socialist country. Please tell your friends.

Posted by stillthinking @ 02:19 PM 12 Comments

Blame it on the weather

AboutProperty: Royals, rain and Euros dent mortgage approvals

A combination of the Jubilee, Euro 2012 and terrible weather led to a big fall in mortgage approvals in June, according to the British Bankers Association.

Posted by phil @ 02:01 PM 0 Comments

Will lack of clean water devalue houses?

Alert Net: Water maps spark concern about "liquid gold rush"

The promoters say the data should help companies use water more responsibly while helping them to manage their exposure to risk. But critics fear the data could will be used to cash in on an increasingly precious natural resource - two thirds of people are expected to face water shortages by 2025

Posted by mark @ 11:39 AM 7 Comments

So wide you can't get around it; so high you can't get over it.

BBC: UK recession deepens after 0.7% fall in GDP

The UK recession has deepened, latest official figures have shown, after the output of the economy fell by 0.7% between April and June. The contraction was much bigger than expected and follows a 0.3% drop in the first three months of the year. The Office for National Statistics said the fall was largely due to a sharp slowdown in the construction sector. However, the ONS said it was not yet sure of the effect of the extra June bank holiday and the poor weather. This means that these figures, which are the first estimate for what happened in the economy between April and June, are more uncertain than usual.

Posted by sibley's b'stard child @ 11:15 AM 19 Comments

Barclays cuts mortgage fees and rates

Myfinances.co.uk: Barclays cuts lending rates and launches zero-fee mortgages

Barclays has today cut the interest rates on a selection of fixed rate mortgages and introduced a new home loan deal with no application fee.

Posted by ben @ 10:59 AM 1 Comments

UK economic contraction accelerates

Myfinances.co.uk: Dramatic 0.7 per cent fall in GDP plunges UK deeper into recession

The UK economy shrunk by 0.7 per cent in the 2nd quarter of 2012, deepening the double-dip recession.

Posted by ben @ 10:38 AM 0 Comments

Tuesday, July 24, 2012

Bubble asset deflation under way

Business Times: Value plunge in ships without precedent: HSBC

From HSBC, the banksters to terrorists, rogue states and drug cartels, a survey showing how prices of shipping have plummeted. Harbinger of worse to come, with world-wide economic depression and trade wars not far around the corner, I suspect. "Daily earnings for very large crude carriers (VLCCs) plunged 99.53 per cent from a high of US$290,336 in December 2007 to US$1,363 as of July 20, Clarkson data show. Capesize vessels are earning US$1,862 a day, a 99 per cent slump from a 2008 high of US$218,955 daily." 2007 was the wrong time to get a mortgage on a boat

Posted by stuartking @ 11:10 PM 20 Comments

As resilient as a Terminator robot?

Reuters: Spain feels debt heat, Greece way off bailout terms

"Spain paid the second highest yield on short-term debt since the birth of the euro at an auction on Tuesday, and EU officials said Greece had little hope of meeting the terms of its bailout, casting fresh doubt on its future in the euro zone". "Greece is hugely off track," one of the officials told Reuters, speaking on condition of anonymity. "The debt-sustainability analysis will be pretty terrible". "Spain's northeastern region of Catalonia, responsible for a fifth of the country's economic output, admitted it had financing needs to meet while its access to markets was shut, but had not decided yet whether to tap a state liquidity line". (If I were in Italy's shoes I'd grab some cash before Merkel gives it all away).

Posted by alan @ 11:09 PM 4 Comments

Warning: makes for depressing reading

Sky News: Revealed: The Key to Happiness in the UK

Thousands of people were quizzed on how they think and feel about their lives by the ONS for its first annual National Well-Being Report. The survey revealed that eight out of ten homeowners - either outright (81.0%) or with a mortgage (79.9%) - reported a medium or high level of life satisfaction, compared with just two thirds (67.8%) of renters.

Posted by drewster @ 08:00 PM 12 Comments

10,000 new homes

AboutProperty: Green light for first new town since Milton Keynes

England’s first new town since Milton Keynes is a big step closer after local councils approved the planning framework for Northstowe near Cambridge.

Posted by phil @ 04:38 PM 0 Comments

Pesky bank hols & wet weather, Olympics etc, they have ruined the economy!

Telegraph: Mortgage approvals slump to 15-year low

The BBA said the public holidays for the Diamond Jubilee and the impact of the wet weather on buyer activity affected the figures while the appetite for borrowing among consumers remained weak in the "subdued" housing market.

Posted by happy mondays @ 03:03 PM 12 Comments

It's all down to the Queen and the bad weather!

Daily Mail: Mortgage approvals slump to a 15-year low as property purchases dive by a fifth

It's all down to the Queen and the bad weather! "The BBA said public holidays for the Diamond Jubilee and the impact of the wet weather on buyer activity affected the figures..."

Posted by photomoose @ 03:01 PM 0 Comments

Some good news from the emerald isles

RTE: Residential property prices fell by 1.1% nationally last month

In the 12-month period up to June, prices fell by 14.4% nationally. This brings the overall decline nationally to 57% since the peak of the market which the CSO estimates as having been in 2007. House prices are 56% lower in the capital and apartment prices are down 62% since the peak. Residential property prices in the rest of Ireland are now 47% lower than the peak. Many analysts had suggested that recent price rises in Dublin were an indicator that the market had bottomed out, but academics have cautioned that prices would need to show signs of stabilisation for at least six consecutive months to establish a definite trend in this regard.

Posted by khards @ 02:03 PM 7 Comments

Mortgage approvals over the last year are at their lowest levels for 15 years

Myfinances.co.uk: Mortgage approvals sink to 41 month low in June

The British Bankers Association has released data that shows mortgage approvals are at their lowest level since January 2009.

Posted by ben @ 12:23 PM 0 Comments

Surely this will end badly?

Daily Mail: Where is everyone? The derelict majesty of Chinese ghost town built to house one million...

I know we've linked to this and similar stories before, but surely the whole thing is nuts? There's an actual surplus of housing but as these are held out of use by Chinese investors (who are a bit superstitious about renting out their shiny new flats) that doesn't help anybody except the construction sector, and in practice, if you are looking for somewhere to rent there is still a huge shortage. Does this not rank as a massive waste of time and money and energy by all concerned? Will this be what pushes China over the edge? (I doubt it, they've survived worse, normal rules don't seem to apply to China).

Posted by mark wadsworth @ 10:27 AM 8 Comments

What advice would you give your younger self?

WhatIsMoney: Would you listen to advice from your 35 year old self?

I love a bit of looking back, reminiscing and thinking of what could of been! I'd probably tell my younger self to save for a deposit on a house earlier, in East London. I'd also invent Google... What advice would you give yourself if you could go back and do it all again?

Posted by keithhodges @ 09:30 AM 0 Comments

Insider trading conviction

Independent: Insider-dealing ring at UBS and JP Morgan facing jail

The big concern is that a flight from equities pushes up interest rates. So currently there is no yield anywhere, and perilously close to people just demanding and holding paper money. Everytime there is a sniff that equity holders are getting fleeced through corruption or market fixing gets closer to the point that there is a general market exit because no point taking the risk for no yield. All of these convictions move closer to a collapse in share prices.

Posted by stillthinking @ 05:23 AM 1 Comments

Monday, July 23, 2012

Other countries do it better, episode #398

Middle East Online: Iraq launches drive to stem massive housing crisis

Baghdad needs 750,000 new homes to make up for a massive housing shortfall, Iraq's investment commission chief said on Sunday as he called for bidders for a new property development project. After decades of war, sanctions and under-investment, Iraq is experiencing a major housing shortfall, and the difficulty in finding a home was one of the reasons protesters demonstrated nationwide last year. - [So what's Britain's excuse then?]

Posted by drewster @ 11:02 PM 3 Comments

Pope may, in fact, be Catholic

Sydney Morning Herald: Housing shortage may, in fact, be a glut

A FEW weeks ago, Morgan Stanley released analysis showing Australia may have a housing glut rather than a shortage. The estimated 228,000-home shortfall, cited by everyone from the construction industry to economists at the major banks as evidence for why prices remain so high, may, in fact, be an excess of 341,000 homes. Whether the new figures are accurate will only become clear in time, as house prices either level off because real estate is scarce, or prices fall and attract more scrutiny about the fundamentals of the market.

Posted by drewster @ 10:59 PM 14 Comments

Grab a bargain

No conspiracy, just more blatant and unashamed market manipulation.

Reuters: Italy reintroduces short-selling ban on financials

Italy's market regulator Consob reintroduced on Monday a ban on short-selling of banking and insurance stocks, citing recent financial market trends. In a statement, Consob said the ban will be effective immediately and remain in place until July 27.

Posted by general congreve @ 01:12 PM 45 Comments

Small island, nice!

Telegraph: Super-rich shell out for island paradise

The UK residential property market may be in a prolonged slump, not so the sale of private islands.

Posted by happy mondays @ 12:08 PM 4 Comments

Rightmove launches new 'Wake up and smell the coffee' app.

Estate Agent Today: Rightmove launches new 'get the price right' campaign

Rightmove is today launching a major ‘get your price right’ campaign aimed at consumers. Aimed at preventing over-ambitious asking prices and to manage expectations, it will encourage sellers and landlords to get their ‘Market Intelligence’ from their Rightmove agent. As part of the campaign, Rightmove has invested in a cutting edge html5 interactive video which allows users to enter a specific postcode and then takes them on a journey around their local area. During the journey, users will be presented with a range of local market intelligence such as local house price trends, rental market yields and property presentation tips

Posted by sibley's b'stard child @ 11:37 AM 5 Comments

The Great British public: still hopelessly optimistic on house prices

MoneyWeek: The Great British public: still hopelessly optimistic on house prices

A new survey reckons that well over half of us expect house prices to rise in the next six months. The reality, however, will be rather different.

Posted by martingreen @ 11:02 AM 2 Comments

Markit Household Finance Index shows improvement

Myfinances.co.uk: Markit Household Finance Index shows squeeze is easing

The latest Markit Household Finance Index shows a slower deterioration in household confidence in the economy. The index rose from 37.0 to 37.5, still well below the 50.0 level that marks a neutral view on the state of their household finances.

Posted by ben @ 10:14 AM 0 Comments

Have you locked up your gnomes and tennis balls?

Cash Compass: Green-fingered thieves 'on the rise'

A wave of plant theft is sweeping the nation as green-fingered thieves take advantage of unsecured gardens.

Posted by keithhodges @ 10:01 AM 0 Comments

Man pays off mortage with ammo box full of pennies

Planet Property: Man pays off mortage with ammo box full of pennies

“I was just praying I didn’t die first,” he revealed. A sentiment anyone with a mortgage can relate to…

Posted by the planet @ 09:27 AM 0 Comments

Free Minstrels with every paper

Express: Mortgage Joy as Rates are Slashed

The Express alleges: "Homeowners could see their monthly mortgage repayments slashed within weeks as banks and building societies embark on a fierce lending war". (more property ramping - front page today).

Posted by alan @ 08:36 AM 5 Comments

Windmills vs Nimbys

Daily Wail: Wind farms DO hit house prices: Government agency finally admits that thousands can be wiped off value of homes

"Wind farms can wipe tens of thousands of pounds off the value of homes, a government agency has admitted for the first time. The Valuation Office Agency has been forced to re-band homes into lower council tax categories, confirming what most residents who live near the giant turbines already know: they are detrimental to property prices." Just another illustration of the Georgist principle in action. If you can't give land owners money, you can always cut their tax bill instead.

Posted by quiet guy @ 08:30 AM 5 Comments

Sunday, July 22, 2012

Should be good for house prices!

Mail: Recession may be even worse than the 1970s with figures set to show the economy shrank for third quarter in a row

‘It is extraordinary,’ said Vicky Pryce, City economist and former head of the Government economic service. ‘But you don’t see the effects now as much as you did then, because we no longer have huge industrial complexes shutting down.’

Posted by happy mondays @ 04:29 PM 9 Comments

It's 'ecomomic integrations fault' - whatever that is?

The Press Association: Blair in admission on economic woe

The ex-Labour leader admitted his Government had not fully understood the impact economic integration could have. 'Economic Integration' is a term I'm not familiar with yet and the article does not elaborate.

Posted by enuii @ 01:34 PM 6 Comments

"Fraud is the lesser evil"

Counterpunch: The meaning of Libor-gate

Libor rigging, interest rate swaps et al are parts of a bigger IR rigging scandal perpetrated by the BoE and the Fed to mask the insolvency of their banking systems (by supporting prices of assets on their balance sheets) and to stimulate demand for their Treasury bonds despite budget and trade deficits. Savers and buyers of IR swaps (incl. municipalities/local authorities - advised by the sellers of those swaps) are harmed by the fraud. Why do politicians collude? Because if they called the BoE/Fed to account the latter would ask: "do you want IRs to rise? have you the money to bail out insured depositors? and what would IR rises do to real estate? and do you want gilt prices to collapse, wiping out bond funds and a lot of wealth? "No", they reply, "fraud is better than collapse"

Posted by icarus @ 10:44 AM 2 Comments

All in this together then

Guardian: $13 trillion hidden by global elite

watched a documentary about greenspan last night who believed that there should be no regulation and that even fraud would be sorted by the market?..showed just how separated from the average person these people are

Posted by taffee @ 09:08 AM 23 Comments

Saturday, July 21, 2012

Hyperinflation, February 2014?

Goldmoney.com: Money supply explosion will lead to accelerating inflation

The second chart shows gold’s established hyperbolic course. This chart was put together by Armand Koolen, a Dutch physicist, after reading James Turk’s and my writings on gold and economics. In Koolen’s words, the hyperbola fits in with the official gold price in the early 1900s, the revaluation to $35 in 1934, the onset of the secular bull market in 2001, the bottom in October 2008 and its approximate track since then. His discovery is interesting. Singularity for this curve, or the point where the gold price goes to theoretical infinity, is in February 2014, only 26 months away. Unless this long-term trend is somehow broken, gold is also telling us the dollar is heading for hyperinflation.

Posted by libertas @ 06:29 PM 19 Comments

Nadeem explains how the inflation mega trend can accellerate towards hyperinflation

Market Oracle - Nadeem Walayat: The Quantum of Quantitative Easing Inflation is Coming!

The next stage is QQE, which will involve the UK government (same applies to the likes of the US) via a number of mechanisms to directly spend money printed electronically by the Bank of England without it going through the mafia banking system i.e. direct transfer from the Bank of England to Government. The exact mechanisms used and what they will eventually be called will only become fully clear in hindsight but the basic outcome will be as I indicate here in that the Government will spend money printed (electronically) without it adding to government debt! If QE is akin to pouring petrol onto the inflation fire then QQE is akin to pouring rocket fuel onto the Inflation fire. It will result in an ACCELERATION of the EXPONENTIAL Inflation Mega-trend.

Posted by libertas @ 12:35 AM 14 Comments

A staggering £38 trillion of potential HSBC money laundering

Daily Mail: HSBC let drug gangs launder millions: First Barclays, now Britain's biggest bank is shamed - and faces a £640million fine

Bear in mind that global GDP is around about this figure. The mind boggles and it is true, much of the growth of government and corporations the past few decades has been from fiat inflation and hard core mafia activity. This is where your business went, this is why you have no jobs, this is why your pound has the purchasing power of a penny. Because your politicians sided with devastatingly evil mass murdering criminals who deal in drugs, sex slavery, extortion, wholesale counterfeit and much, much more. And if you don't like your new found poverty? They have guns, lots of guns and CCTV to halt any outpouring of grief. Only today Spain sprayed rubber bullets on protesters in Madrid who chanted against crooks stealing everything.

Posted by libertas @ 12:24 AM 2 Comments

Friday, July 20, 2012

UBS issues inflation warning for UK and USA

Businesss Insider: UBS: The Risk Of Hyperinflation Is Largest In The US And The UK

The morons who are propping up a failed business model have one flaw. If they continue to abuse the monetary unit like this then confidence is lost. Alternatively they can let interest rates rise and we will see free market forces destroy unproductive speculative bubbles and unprofitable business units. Sure, the big corporate monopolies and banks will be broken up, govt will buy less CCTVs but into smaller more nimble units, run by stronger hands and, the economy, free to no longer prop up failing businesses and ponzi scheme speculative bubbles could focus on growth. Alternatively, we can continue down the route of bailouts, interest rate manipulations and nationalizations of banking monstrosities & eventually reach hyperinflation. Will anybody challenge the morons? Answers on a postcard

Posted by libertas @ 12:02 PM 17 Comments

"Controversial topic"

Telegraph: House prices divide the nation between old and young, haves and have-nots

House prices and their resolute refusal to plunge as relentlessly predicted by housepricecrash.co.uk among others, have become a major source of division between the generations.

Posted by dill @ 11:02 AM 4 Comments

Noone knows what architects do shocker!

Planet Property: Noone knows what architects do shocker!

One, we think, to file ironically in the 'well I never' folder...

Posted by the planet @ 10:57 AM 1 Comments

UK Property: fair value, or overvalued by 30%?

Planet Property: UK Property: fair value, or overvalued by 30%?

By one measure house prices are 30% overvalued, by another they're just about right ... but which view is correct?

Posted by the planet @ 10:19 AM 0 Comments

Financial regrets breakdown, have you made any!?

WhatIsMoney: Expensive cars top the list of financial regrets

Cars, designer clothes and even weddings are some of saver’s biggest financial regrets, according to new research.

Posted by keithhodges @ 10:17 AM 2 Comments

Uk housing slump will deepen

Daily telegraph: Uk housing slump will deepen

good report,but the article is almost 'shock horror' houseprices will fall...of course all this is with 0.5% interest rates had rates remained at 5.75% then prices would have almost certainly crashed 40-60%...and could still do of course

Posted by taffee @ 07:48 AM 1 Comments

Madoff multiplied by a million. The final nail in th coffin of the global economy.

The National Post: Should we be worried about China’s $2.2-trillion shadow banking system?

If economic growth in China continues to slow, rising and sudden defaults on loans made in the country’s shadow banking system could threaten to bring down China’s traditional banking sector and throw the world’s third-largest economy in jeopardy, according to Bank of America Merrill Lynch China Strategist David Chui. The hodgepodge web of non-banks that comprise the shadow nexus in China includes pawn shops, underground banks, various wealth management products, trust companies, and guarantors – many of which don’t take deposits to insure against risky lending activities and operate completely beyond the eye of regulators and authorities.

Posted by hovelinhove @ 02:02 AM 0 Comments

Thursday, July 19, 2012

Locking in HPI

Detlev Schilchter: Central banks: Running out of ideas, road

At the present stage of the credit mega-cycle, more monetary accommodation helps the banks fund overpriced assets and bad loans on their balance sheets. Various ‘bubbles’ – which are uniformly the result of past monetary expansion – are thus sustained and even inflated further. Market forces that would adjust prices, reallocate assets and bring the economy back to balance are thus weakened or impaired completely.

Posted by general congreve @ 04:57 PM 21 Comments

Just third?

AboutProperty: UK third most unaffordable for housing in Europe (behind Greece!)

Only people in Denmark and Greece are worse off than us, according to the Shelter analysis, and we have three times as many people over-burdened by housing costs as France.

Posted by phil @ 12:42 PM 2 Comments

Mortgage lending down 5% on May

Myfinances.co.uk: Mortgage lending fell in June, says CML

The Council of Mortgage Lenders (CML) has released new data that shows mortgage lending fell in June. Gross mortgage lending fell to £11.9 billion, down 4.6 per cent from May’s total of £12.5 billion and down 5.2 per cent from June 2011’s equivalent figure.

Posted by ben @ 10:41 AM 0 Comments

Systems transfer could take around 3 years.

Guardian: Co-op arrives as high street banking presence with Lloyds deal

Co-operative has secured a cut-price deal to take over 632 Lloyds Banking Group branches in a deal heralded as creating a new challenger bank on the high street. Staff will get TUPEd. "The Co-op will pay nominal consideration of £800m (of which only £350m will be paid up front)", What's not to like?

Posted by alan @ 09:36 AM 0 Comments

Helpful neighbours or self promoting hijackers?

Telegraph: US Treasury Secretary Tim Geithner warns Libor reform won't be left 'to the British'

US Treasury Secretary Tim Geithner has warned that reform of Libor will not be left "completely to the British" because their earlier efforts did not solve the problem. "Mark Carney, the Canadian central bank governor and head of the global Financial Stability Board, yesterday said authorities across the world are already beginning to think of alternatives to the interbank rate in the wake of the Libor rigging scandal". "The European Parliament yesterday waded into the debate by threatening to jail future offenders".

Posted by alan @ 09:26 AM 0 Comments

A case for credit force feeding

Fundweb: Fog of uncertainty over QE3 effects

Regarding the problems with more QE, Hirst notes: "If, however, the MPC is still labouring under the belief that the transmission mechanisms that allowed QE1 to succeed are still in place then they could be in for an unpleasant surprise. Whereas during the financial crisis the systemic risks had frozen credit markets and confidence had all-but-evaporated, the problem now is how to move money off corporate balance sheets. With Europe still hanging like a sword of Damocles over the corporate sector, this may yet be some time in coming." From this perspective, more stimulus in the form of bungs for builders (Funding for Lending Scheme) seems plausible.

Posted by quiet guy @ 09:01 AM 3 Comments

Emergence of competing currency

FTAlpha: M-euro, a lesson in money supply from Kenya

In Kenya people are able to transfer phone credit easily. This became an effective currency, people starting using for payments so the need lifted off from just phone use. Interestingly, originally this currency was backed by one minute of air time, which made it kind of inflation proof in a way (you presumably get one minute of airtime a year later). Then back to being backed by the Kenyan shilling.

Posted by stillthinking @ 02:51 AM 4 Comments

Wednesday, July 18, 2012

PwC reckon there will be no crash

PwC: House prices to recover but will take a long time to return to previous peaks

“by 2015, house prices will still be around 8% below their 2007 peak level in cash terms and around 24% lower in real terms after adjusting for inflation. In cash terms, the previous peak might not be exceeded until 2017 in this central scenario. By 2020, the analysis suggests that a gradual easing of credit conditions, combined with housing supply shortages, could push average UK house prices back up to almost 30% above their 2007 levels in cash terms. However, this would still be around 7% below their 2007 peak in real terms (once inflation has been taken into account). The 2007 real peak might not be regained until around 2024 in this central case, although there are large uncertainties surrounding any such long-term projections.”

Posted by quiet guy @ 10:29 PM 5 Comments

One for the General.

Belfast Telegraph.: Shipwreck silver bullion recovered

The General and Titanic Captain have got together and found a record-breaking 48-ton haul of silver bullion has been recovered from a shipwreck three miles beneath the Atlantic off the coast of Ireland. Deep ocean exploration firm Odyssey Marine Exploration found the 1,203 bars of the precious metal on board the SS Gairsoppa which sank in February 1941 300 miles south west of Galway.

Posted by khards @ 10:28 PM 2 Comments

Not all areas are booming!

Daily mail: 4000 pounds for house in wales

'have to go back 50 years to see this sort of deal'....don't think so..uncle sold house similar in the valleys for 7k in 1995

Posted by taffee @ 05:53 PM 3 Comments

Olympics? Nah. This is going to be the greatest show on earth this year.

Telegraph: IMF: eurozone in critical danger, ECB should launch QE

"The euro area crisis has reached a new and critical stage. Despite major policy actions, financial markets in parts of the region remain under acute stress, raising questions about the viability of the monetary union itself," the IMF said. The fund added that the independent ECB, which is legally forbidden to finance governments, could be given full lender-of-last-resort functions, to help break the vicious circle of highly indebted governments borrowing from banks, which in turn become vulnerable due to the risk associated with the bonds.

Posted by general congreve @ 03:02 PM 6 Comments

June's analysis by HP ...saucy!

Henry Pryor: The Month in Numbers – June 2012

The graph on the bottom left of the screen shows an interesting data series re Stamp Duty. Its a bit of a shame its not more up to date, although we can probably guess what it looks like - although i would like a bar chart as to volumes in that bracket too.

Posted by techieman @ 01:56 PM 0 Comments

Bank waits on FLS impact before considering extra new measures

Myfinances.co.uk: Bank of England voted 7-2 for QE and mulled base rate cut

The Bank of England’s Monetary Policy Committee (MPC) voted 7-2 to extend the quantitative easing (QE) programme by £50 billion to £375 billion at its rate-setting meeting last month.

Posted by ben @ 11:37 AM 0 Comments

Similar report to Libor used to set prices

Myfinances.co.uk: Were petrol prices rigged like Libor, asks report

Motorists may have been paying too much for petrol because traders are likely to have tried controlling oil prices in a Libor-style manipulation, an official report has warned.

Posted by ben @ 09:24 AM 0 Comments

Changes to Green Belt restrictions could reduce house prices by 30%

Planet Property: Changes to Green Belt restrictions could reduce house prices by 30%

Interesting to see the debate about the Green Belt and house prices getting another airing - a subject that;s sure to cause bitter argument

Posted by the planet @ 09:09 AM 0 Comments

Healthy markets don't require cheap credit schemes

Telegraph: RBS and NatWest offer cheap mortgages to first time buyers with 5pc deposits

Royal Bank of Scotland (RBS) and NatWest, which taxpayers rescued from the credit crisis, are launching 95pc loan to value (LTV) mortgages for first time buyers and cutting interest rates to market-beating lows. The banks are making use of additional taxpayers’ funds, in the form of the £80bn new Funding for Lending Scheme (FLS), to offer fee-free five-year fixed rates of 4.79pc on up to 90pc LTV mortgages for first time buyers. The same rate will apply on up to 95pc LTV mortgages on properties bought through the government’s Newbuy scheme. Mortgage brokers predicted other major lenders will soon follow suit in an attempt to revive depressed demand from first time buyers and stimulate the housebuilding sector.

Posted by quiet guy @ 08:51 AM 16 Comments

Confident we arent confident

FK: FK Consumer Confidence Index Score - Last 12 months

.... or is that just a confidence trick?

Posted by techieman @ 07:41 AM 1 Comments

Tuesday, July 17, 2012

Cash flows out of Spain & Italy to UK

Telegraph: The euro graph of doom

"The flight to safety has prompted a collapse in yields on government bonds in Germany, the US, Switzerland, Sweden, and to some extent the UK too. Naturally, this has also driven up their currencies, except in the case of Germany, where because of the single currency, no such thing can happen". (It's unsustainable, but how much longer will it last?).

Posted by alan @ 09:51 PM 7 Comments

They paved paradise...

Where will the manipualtion end? I dare not say!

Moneyweek: Annoyed by Libor rigging? You should be raging about this

This Libor thing has really annoyed people. But what’s really happening now is that the general public is getting a look under the bonnet of the financial system. And they’ve discovered that the engine of the sleek-bodied sportscar that delivered them the illusion of wealth in the good times, is in fact a mass of loose screws and unsheathed wiring held together with sticky tape and false promises. I suspect that Libor is just the tip of the iceberg. For example: what if I told you that the vast majority of gains seen in the stock market over the last 18 years were all down to the actions of a single bank?

Posted by general congreve @ 02:53 PM 6 Comments

UK house prices rise by 2.3% annually but flat in last month

Myfinances.co.uk: ONS: UK house price index shows 2.3% rise in last 12 months

The Office for National Statistics ahs released its house price index for May 2012 which shows that in the last 12 months the average price of a UK house has increased by 2.3 per cent.

Posted by ben @ 12:21 PM 3 Comments

Just wait a while longer folks

Bbc business: House prices unchanged in May, says ONS

Flat house prices in May do little to dilute our suspicion that house prices are likely to trend modestly lower over the coming months.

Posted by keith @ 11:09 AM 3 Comments

HSBC allowed drug money to be laundered

Myfinances.co.uk: HSBC "allowed money laundering" says US Senate

HSBC allowed money laundering to occur by a lack of internal controls and the inability of its compliance section to function properly, a US Senate report has found.

Posted by ben @ 10:00 AM 0 Comments

More disinflation

BBC: UK inflation rate falls to 2.4% in June

I'm waiting for the inflationists to explain why the figures are wrong.

Posted by phdinbubbles @ 09:37 AM 12 Comments

The best way to profit from commercial property today

MoneyWeek: The best way to profit from commercial property today

Big investors have been piling in to commercial property recently. But you shouldn't follow suit, says David Stevenson, There's a much better way to profit.

Posted by martingreen @ 09:25 AM 0 Comments

Monday, July 16, 2012

Drop your price to sell...before everyone else does

Sky News: Would-Be Sellers 'Must Drop Asking Prices'

Asking prices for homes have dipped for the first time in six months, according to a new study. Selling prices never went up !!!!

Posted by thecountofnowhere @ 10:26 AM 2 Comments

Asking prices drop by 1.7% in just one month

Myfinances.co.uk: Rightmove: Home sellers slash asking prices by £4,000 in July

House sellers desperate to shift their properties cut their asking prices this month by 1.7 per cent, or £4,138 – the largest price drop in July for four years, new figures reveal.

Posted by ben @ 09:46 AM 14 Comments

Supply and demand, innit.

Estate Agent Today: Sellers chop asking prices as buyers thin out

New sellers have chopped their asking prices by 1.7% – the largest monthly cut in a July for four years, Rightmove said this morning. The average asking price for a newly listed property on the site is now £242,097, which is an average of £4,138 down on last month. Despite the monthly drop, it is 2.3% higher than last July. Even in seemingly unstoppable London, asking prices have fallen – by 3.6% since June, to stand at £460,304, down from £477,440. The cut has come with new sellers outnumbering successful buyers by nearly two to one, highlighting the challenge faced in the sales market.

Posted by sibley's b'stard child @ 09:42 AM 3 Comments

This Must be Music to Our Ears

Yahoo Finance: Woul-Be Sellers 'Must Drop Asking Price'

Asking prices for homes have dipped for the first time in six months, according to a new study. Market trend website Rightmove (Other OTC: RTMVF.PK - news) said the average asking price fell by 1.7%, which amounts to £4,138 for the typical home. The firm said it was also the first July in four years that prices have dropped, and added that the ratio of people trying to sell their homes now outnumbered actual buyers by two to one. Because of the oversupply of homes on offer Rightmove warned sellers that they need to cut prices further to remain competitive.

Posted by house @ 09:10 AM 5 Comments

Looks like no more foreign money left to invest in London

Bloomberg: London House Prices Plunge As Supply Surge Adds To Summer Lull

London home sellers cut prices by a record 3.6% for the month of July as an increase in supply added to pressure on the property market during the traditional summer lull, Rightmove Plc (RMV) said.

Posted by msrx3sjj @ 09:03 AM 1 Comments

Are the blinkers coming off?

BBC News: Home sellers drop asking prices in July, says Rightmove

The average asking price for homes being put up for sale fell this month for the first time since January, says the property website Rightmove. Average prices fell 1.7%, or £4,138, the first drop in July since 2008 Rightmove said that the number of would-be sellers this month outnumbered successful buyers by two to one. It warned that people hoping to sell their homes would have to cut their asking prices further if they wanted to be successful.

Posted by j sek @ 08:06 AM 0 Comments

Sunday, July 15, 2012

Yeah, Petrol rigged, how about House Indexes next?

Telegraph: Was the petrol price rigged too?

"Motorists may have been paying too much for their petrol because banks and other traders are likely to have tried to manipulate oil prices in the same way they rigged interest rates, an official report has warned" (they'll be claiming the X factor is rigged next)!

Posted by alan @ 11:06 PM 15 Comments

Four in 10 renters cannot afford to save

Planet Property: Four in 10 renters cannot afford to save

If you rent, this probably comes as no surprise – according to a new study 4 in 10 who rent can’t afford to save ….

Posted by the planet @ 06:39 PM 0 Comments

Surprise!! Banks manipulate US housing market

Counterpunch: A market in ruins

In the US too the message the banks are putting out in order to save themselves is "houses are affordable but are starting to rise, so don't delay...." But this market is as fake as a Hollywood set.

Posted by icarus @ 10:44 AM 3 Comments

Saturday, July 14, 2012

What's "Anti-Trust" then?

Reuters: Visa, MasterCard, banks in $7.25 billion retail settlement

"Visa Inc, MasterCard Inc and banks that issue their credit cards have agreed to a $7.25 billion (£4.65bn) settlement with U.S. retailers in a lawsuit over the fixing of credit and debit card fees in what could be the largest antitrust settlement in U.S. history". "The defendants denied that any collusion took place". "An estimated 7 million retailers will be affected by the settlement, according to lawyers for the plaintiffs". (Does Anti -Trust means people are rebuffed from trusting these companies?)

Posted by alan @ 03:16 PM 0 Comments

But, but, but the Halifax say FTB houses are at their most affordable in a decade

Daily Mail: A third of first-time buyers are 35 or over compared to one in ten a decade ago

One in three first-time buyers is now over the age of 35 – compared to one in ten a decade ago. The huge increase highlights the struggle young people face as they try to get a foothold on the housing ladder. According to the Government’s English Housing Survey, 32.3 per cent of first-time buyers were aged 35 and over between 2008 and 2011. Of this number, 6.5 per cent were in their late-40s and early-50s.

Posted by wanderinman @ 10:18 AM 7 Comments

Funding to prop up HPI

My Finances: Funding to kickstart the housing market

We must shore up lending to get more idiots to pay over the odds or we are doomed.....

Posted by chrisch @ 10:07 AM 1 Comments

What planet are these people on? FTB's can afford a shack?

Sky News: House Prices Better For First-Time Buyers

Those taking their first step on the property ladder will find homes within their means in 54% of local authority districts, the highest proportion since 2002 when 64% of districts were within buyers' reach, Halifax found. This is up from 40% a year ago and almost eight times the proportion of affordable districts at the peak of the housing market in 2007, when just 7% were in this bracket.

Posted by miken @ 08:41 AM 7 Comments

Friday, July 13, 2012

Now they say they knew about Lloyds too!

Bloomberg: New York Fed Says It Knew Barclays Underreported Libor

"A Barclays employee explained to a New York Fed staff member that “Barclays was underreporting its rate to avoid the stigma associated with being an outlier with respect to its LIBOR submissions, relative to other participating banks,” the New York Fed said in a statement posted today on its website". (...and now Lloyds too). It seems the NY Fed is about as corrupt as some african countries I've visited. What a bunch of "Bankers".

Posted by alan @ 10:16 PM 6 Comments

Jump in, the water's lovely and warm (terms and conditions apply)

Telegraph: HSBC launches lowest-ever five-year fixed rate mortgage

The lowest five-year fixed rate mortgage ever seen in Britain is being launched today by HSBC, one of the biggest banks in the world. Borrowers with a 40pc deposit or that much equity in their home will be able to lock into a rate of 2.99pc fixed for five years. “Funding rates have fallen, so we expect those lenders who have not yet cut their fixed rates to do so in the next few weeks. It’s great news for borrowers looking for extended security.” “Whether people can actually get this rate, that is an entirely different question. Our experience is that HSBC are even more picky than other major lenders, and slow as well."

Posted by drewster @ 01:56 PM 9 Comments

Another throw of the dice

Reuters: Government unveils flagship lending scheme to help firms and households

"The government revealed details of a new scheme on Friday to help make around 80 billion pounds of loans more accessible and cheaper for households and businesses, as part of efforts to lift the economy out of recession. Chancellor George Osborne and Bank of England governor Mervyn King jointly announced the 'funding for lending' scheme last month, under which the Bank will give banks cheap access to finance if they then lend in turn to cash-strapped businesses and home-buyers ... Under the new scheme, banks and building societies will ... be charged a 0.25 percent annual fee for this, but they have to commit to keeping lending steady. If they cut lending, this fee will rise up to 1.5 percent if they reduce lending by 5 percent or more." 1.5% still sound s like money for old rope to me.

Posted by quiet guy @ 12:36 PM 6 Comments

Thursday, July 12, 2012

Any excuse not to lend - what do they know?

Guardian: GE Money refuses mortgages to payday loan borrowers

Sub-prime lender clamps down on payday loans! "Mortgage lender GE Money says it will not lend to applicants who have taken out a payday loan during the previous three months, even if they have paid it back on time and without problem".

Posted by alan @ 10:49 PM 6 Comments

Gypsies, Tramps & Thieves

Reuters: HSBC shares drop on reports of $1 billion U.S. fine

"Shares in HSBC Holdings Plc (HSBA.L) fell on Thursday after the Financial Times reported it could face a record $1 billion (647.4 million pounds) fine following an investigation by U.S. authorities into breakdowns in money laundering prevention". "The Senate panel said on Wednesday it would detail the findings of its inquiry at a hearing on July 17 entitled "Vulnerabilities to Money Laundering, Drugs, and Terrorist Financing: HSBC Case History". (title: apologies to Cher).

Posted by alan @ 05:16 PM 0 Comments

Its ok because our plans go to 2061

Press Association: OBR in warning over £65bn hole

"In its annual fiscal sustainability report, the Office for Budget Responsibility (OBR) said the additional £17 billion in savings by the year to April 2018 would be needed to get Britain's debt back to pre-crisis levels by 2061." Bankrupt bankrupt bankrupt. How absurd to still pretend, and this with the brand new NI payments. The UK voted for a Soviet style administration and did so for a decade. Lap it up time!

Posted by stillthinking @ 05:03 PM 4 Comments

Another example of homeownerism?

CML reports end of stamp duty slump

Myfinances.co.uk: Mortgage lending up after end of stamp duty concession slump

The Council of Mortgage Lenders (CML) has hailed the end of the slump following the ending of the stamp duty holiday at the end of March.

Posted by ben @ 10:32 AM 0 Comments

Beware of the retirement-home debt trap

MoneyWeek: Beware of the retirement-home debt trap

Many thought the market for retirement homes would be insulated from the housing crash. But they can be just another way into property debt slavery.

Posted by martingreen @ 09:20 AM 2 Comments

House price stalemate

Telegraph: Twelve more years for house prices to recover

House prices will not recover their pre-crisis peak until 2024, according to analysis by PricewaterhouseCoopers. The warning that the UK housing market is only at the start of a 17-year, inflation-adjusted slump came as the accounting firm predicted that the economy will flat-line this year before growing just 1.7pc in 2013. Average house prices will have bounced back to their 2007 high in cash terms by 2017, PwC said, but will need another seven years to catch up with inflation. By 2020, headline prices will be up 30pc but still 7pc below their real terms peak.

Posted by quiet guy @ 01:55 AM 7 Comments

Wednesday, July 11, 2012

HPC vigilante once again mentions the crash word

Telegrath: House prices may be falling but homebuyers are digging their way out of debt

House prices may be falling but homebuyers are digging their way out of debt, according to one of Britain’s biggest firms of bailiffs. Six in 10 people who had previously missed mortgage payments are now paying down their debts, according to Ascent, which would rather be called a ‘specialist debt collection agency’ than the plain English monicker I prefer.

Posted by jack c @ 11:03 PM 2 Comments

Mortgage debt relief across the pond

Bloomberg: BofA Give-Away Has Few Takers Among Homeowners~Mortgages

"When Bank of America Corp. sent letters to 60,000 struggling homeowners offering to slice an average $150,000 off their loans, the lender got an unusual response from most of them: silence".

Posted by alan @ 09:12 PM 0 Comments

Ramping to disaster

Sovereign Man: Why we’re light years away from solving our problems

Governments destroying hopes of recovery by trying to prop up house prices

Posted by stuartking @ 06:01 PM 1 Comments

Shock horror!

Estate Agent Today: Agents under fire for 'over-valuing' properties

While this is scarcely noteworthy; bear in mind that Rant'n'Rave and I are constantly rebuked on EAT for suggesting EAs overvalue (or market appraisal to use their wishy-washy terminology). The comments by EAs all agreeing with article are interesting in themselves.

Posted by sibley's b'stard child @ 03:55 PM 19 Comments


Guardian: Landlords and letting agents watch out – your tenants are angry and mobilising

Tenants are wising up and spreading the word: they won't put up with lax rights and worsening housing conditions

Posted by dill @ 01:52 PM 3 Comments

MSM now reporting manipulation goes beyond Liebor, it's treason this time.

Telegraph: Revealed: why Gordon Brown sold Britain's reserves at a knock-down price

A great deal of Gordon Brown’s economic strategy would strike a sane man as troubling. Not a great deal was mysterious. The orgy of consumption spending, frequent extensions of the cycle over which he would “borrow to invest”, proclamations of the “end of boom and bust”: these are part of the armoury of modern politicians, of all political hues. One decision stands out as downright bizarre, however

Posted by general congreve @ 11:53 AM 6 Comments

Another financial disaster in the making?

Dailymail: Ftbs sleepwalking into decade of nequity

whats sad about the whole financial crisis is that had the boe let a recession happen in 2003/2004 and kept interest rates around 5%,we would be coming out of it and returning to some sort of growth.

Posted by taffee @ 07:40 AM 21 Comments

Another prop for the housing market

Daily Mail: Care fees paid AFTER you die: New loan scheme will mean elderly can keep their homes...

"Health Secretary Andrew Lansley hopes the scheme will protect the elderly from the heartache of having to sell their homes during their lifetime." - and avoid flooding a moribund market with houses that only sell at reduced prices...

Posted by cornishman @ 07:38 AM 11 Comments

Tuesday, July 10, 2012

My ponzi scheme is bigger than your ponzi scheme

Telegraph: China heads for a deflationary shock

You can't go wrong with BRICS and mortar!

Posted by bellwether @ 11:41 PM 1 Comments

Desperate times call for desperate measures

New York Times: Housing's Last Chance? Try Eminent Domain

Every second home in San Bernadino County, California, is underwater, meaning the homeowner owes more on the mortgage than the house is worth. It has been clear for some time that the best way to keep troubled homeowners in their homes is by reducing the principal on their mortgages, thus lowering their debt burden and more closely aligning their mortgage with the actual value of the home. Local authorities should buy underwater mortgages using their power of eminent domain [compulsory purchase in the UK] — and then write the homeowner a new, reduced mortgage.

Posted by drewster @ 11:37 PM 1 Comments

Battery farms for human workers

Independent: New York mayor combats housing shortage with 275 sq ft “micro-units”

New York's mayor Michael Bloomberg has announced plans to address the city's growing housing shortage by building “micro-units” measuring around 275 sq ft – that’s a 125 sq ft smaller than the current minimum required by law. In a nation renowned for wide open spaces, pokey-yet-pricey NYC real estate is often the butt of jokes, but 275 sq ft – about half the size of a London Underground carriage - is small even by Big Apple standards. The average UK new build, according to a 2011 report is 807 sq ft with an average area of 175 sq ft per room. Standards laid down by the Greater London Authority in 2010, require a 1 bedroom flat to have a minimum living space of 538 sq ft, nearly twice the size of the proposed “micro-units”.

Posted by drewster @ 11:22 PM 1 Comments

Small Investors and Savers Beware

Wall St Journal: Spain to Give Up Control of Banks Under Bailout

Spain will be forced to give up most of the control over its banks and will be required to impose losses on local investors, as ever these are the small guys who bought the securities through the banks' branches. Holders of senior debt aren't mentioned in the document, implying that they may escape losses as they have in other large Europeaan bank rescues.

Posted by enuii @ 10:13 PM 2 Comments

Very intersting article on types of inflation, most notably 'Currency Destruction'

Chris Martenson: Our Money is Dying

Currency destruction – There is another type of inflation that happens when your state currency is shunned by the rest of the world. While there may be no additional money creation and credit may even be dropping, inflation is still a very serious problem as everything imported goes up in price. There are many reasons that a currency may be shunned. It could be that other countries lose faith in the currency due to mismanagement and overprinting. It could be due to acts of war. Or it could happen at the end of a very long period of excessive credit and money expansion, when that bubble finally bursts and confidence in the associated currency unit(s) is lost.

Posted by general congreve @ 06:50 PM 3 Comments

Much reporting on prime London is hype

Planet Property: Much reporting on prime London is hype

A new report from Savills suggests that the media coverage of the prime London is driven by hype.

Posted by the planet @ 11:56 AM 0 Comments

Rics data piles on gloom for housing market

Myfinances.co.uk: Rics surveyors report fall in sales and house prices in June

The latest survey by surveyors of the UK housing market shows there has been no recovery since the end of the stamp duty holiday in March.

Posted by ben @ 11:20 AM 0 Comments

Looking good

Reuters: June house prices see fastest drop since October - RICS

(Reuters) - British house prices fell last month at their fastest pace since October as demand failed to pick up and the number of properties being put up for sale dropped off, a survey showed on Tuesday.

Posted by happy mondays @ 08:44 AM 24 Comments

When this happens in hot countries, its called 'corruption'

Guardian: Finance industry's multimillion-pound lobbying budget revealed

Injin on the forum boards found this. It is shocking and includes an interested detail on where the government's plans for a mandatory national pension scheme went. Astonishing that banks can lobby politicians like this to act so much against national interests.

Posted by paul @ 07:13 AM 12 Comments

Monday, July 9, 2012

Ever wondered who can afford those sky-high rents? The answer may surprise you.

Reuters: Students trump bankers for luxury London homes

Apartments for rent in London's most exclusive neighbourhoods have traditionally been the preserve of bankers. As the potency of the financial sector wanes, they are increasingly let to children of the international super-rich studying at the city's universities. "I chose the place and then asked my parents whether it was alright," said Sumiro, a 21-year old Indonesian student who will be living alone in the £895/week two-bedroom apartment with the Philippe Starck chairs when he starts university in September. "We didn't want a typical British student pad, we wanted something quite big, quite decent, so that there would be space for our parents and friends when they visited," said Nadine, the daughter of a Lebanese businessman, who lived in a £2,400/month London flat while studying.

Posted by drewster @ 11:06 PM 9 Comments

"Many a true word is spoken in jest"

Telegraph: Top 20 Matt cartoons on property

Some of these are very poignant.

Posted by wdbeast @ 07:06 PM 2 Comments

French Yields Turn Negative As Investors Seek Refuge

Millions, Billions, Trillions then what?

Fundweb: Is Bank preparing for £375bn more QE, asks M&G's Woolnough

Another £375bn in quantitative easing (QE) could be pumped into the UK economy over the next three years if Mervyn King’s outlook is correct, M&G fund manager Richard Woolnough points out......................“If we are not yet half-way through this crisis, then this implies that [interest] rates will stay at these levels for at least another three years to 2015, and a further round of £375bn of QE is potentially on the agenda,” he says.

Posted by jack c @ 05:00 PM 10 Comments


Telegraph: Jobless toll 'could hit 3m by the end of the year'

The number of people placed in permanent jobs fell at the sharpest rate in three years last month, prompting fresh fears that the UK's unemployment toll will hit 3m by the end of the year.

Posted by happy mondays @ 02:55 PM 17 Comments

Someone obviously forget to tell them about the double-dip

Yahoo: So, who's hiring in July?

Conditions in the labour market continue to improve. According to the Office for National Statistics, employment rose by 166,000 in the three months to April and the private sector created 205,000 new jobs. So, if you are looking for a new job, here are 10 companies hiring this month.

Posted by general congreve @ 12:20 PM 1 Comments

Couldn't buy pre-2000? Welcome to the new paradigm in housing allocation.

Estate Agent Today: Home ownership in latest fall as renting rises

The number of owner-occupied households has continued to fall, says the latest English Housing Survey. Covering 2010-11, the survey published this week says there were 14.45m owner-occupied households, compared with a peak of 14.79m in 2005. By contrast, the number of private rental households has rocketed and stands at 3.62m, compared with 2.45m in 2005. Overall, in 2010-11, 66% of households were owner occupiers, 17% were private renters and 17% were social tenants.

Posted by sibley's b'stard child @ 11:32 AM 4 Comments

Spike Milligan's 'ugly' Sussex home for sale

Planet Property: Spike Milligan's 'ugly' Sussex home for sale

Milligan described it as "the ugliest house in the world," "bloody awful" and had the nameplate "The Blind Architect" made for it.

Posted by the planet @ 11:27 AM 0 Comments

Glimpse of what can be done

Guardian: Bank on Dave: one man's crusade to help small businesses raise finance

.. with a little hard work and a can-do attitude and with no help from the establishment. Dave Fishwick - a northerner (it would have to be) gets as close to setting up a bank as the establishment allows. Good on him. I can almost hear Westminster's loud humming, doubtless complete with fingers in their ears .... after all - who will fund their parties now ?

Posted by voiceofreason @ 08:35 AM 1 Comments

Sunday, July 8, 2012

Gold standerd, good or bad?

Bbc: The Gold Standard

As banks collapse and governments run out of money, the popular solution is to print more and more and expand bank balance sheets. But is there another way of fixing our economy? Would the financial system be more stable if each pound in our pocket was backed by gold? The Today programme's business presenter Simon Jack meets the so-called 'gold bugs' who predict the collapse of the paper system as well as those who argue that a return to the gold standard would be a huge mistake. Which makes more sense - placing your faith in a yellow metal or in money created at the push of a button?

Posted by gone-to-colombia @ 06:11 PM 6 Comments

We're all in this together

Dailymail: Revenue chiefs face tax avoidance row

what a shambles this whole episode is....seems clear that politicians,bankers,big companies and hmrc are certainly all in it together.Shows just how out of touch david cameron is.

Posted by taffee @ 12:44 PM 2 Comments

Notes on national accounting

FT Economists' Forum: Governments can borrow without increasing their debt

Increasing the stock of cash in the economy is not inflationary if the private sector increases its liquidity preference. This is precisely what has happened since the financial crisis in 2008, and has been further exacerbated by the sovereign and banking crisis in the eurozone. Banks now want to hold high ratios of cash to other assets, so rising reserves have coincided with very modest growth in lending, and private firms and households are holding higher amounts of cash and restraining their spending. The stock of cash – physical notes and bank reserves – has risen in the UK, the US and Japan by substantial shares of gross domestic product, without any noticeable impact on the price level.

Posted by quiet guy @ 11:39 AM 18 Comments

Critique of UK Govt's austerity failure, versus US Govt's expansion success

The New Republic: The Austere Land

Journalistic analysis of the situation the UK is in - refers to mal-investment: "creditfinanced investment that results from this “mal-investment.” Malinvestment manifested itself mainly in rapidly rising housing and asset prices. These prices were unsustainable, because they were based on debt, not genuine saving. Once the default rates on mortgages went up, the banks found that their AAArated assets had become junk. So they stopped lending." The "Photoshop of Kate" controversy is a storm in a tea harbour. People don't understand that its not about Kate, it's about the UK. We ALL know something is wrong, just nobody is admitting it. Hence the future figurehead of a future failed economic state. Plus it got our attention right?

Posted by at0z @ 10:06 AM 0 Comments

Saturday, July 7, 2012


Telegraph: Bank of England warns UK banks need more capital

Bank of England declares that UK banks need more capital to cover Euro crisis, which is fair enough (particularly as they need more capital to cover their often suggested complete insolvency), but they were also proposing to reduce the capital requirements a few days ago to increase lending. So presumably they must mean the -amount- of capital held must go up, but the -ratio- of capital to loans must go down. This ignores both the fact that people are drowned in debt and staring at usurious rates of taxation for the rest of their working lives, and also that additional credit expansion now will -increase- the Euro losses (UK worker was export to Euro, borrows more gets a new car, Euro disaster then UK worker unemployed, bigger loss) i.e. incoming euro disaster should mean less debt not +.

Posted by stillthinking @ 01:56 PM 5 Comments

'Property ladder' replaced by 'treacherous property rope bridge'

The Daily Mash: 'Property ladder' replaced by 'treacherous property rope bridge'

The traditional ‘ladder’ image, with its attendant sense of robustness, order, and a sturdy place to rest your full body weight without plunging to your death, has been outdated for almost a decade

Posted by tick tock @ 01:53 PM 1 Comments

Libor manipulation has been going on since at least 2005

Zero Hedge: Have Banks Been Manipulating Libor for DECADES?

We've previously noted that Libor manipulation has been going on since at least 2005 ... and continued long after the manipulation was first reported. James Bianco notes today that the Financial Times started reporting on the manipulation in 2007, and the Wall Street Journal in 2008 But as the Economist reports today, the manipulation probably goes back a lot further: "The FSA has identified price-rigging dating back to 2005, yet some current and former traders say that problems go back much further than that. “Fifteen years ago the word was that LIBOR was being rigged,” says one industry veteran closely involved in the LIBOR process. “It was one of those well kept secrets, but the regulator was asleep, the Bank of England didn’t care ...

Posted by libertas @ 10:45 AM 9 Comments

Friday, July 6, 2012

Wachovia Bank laundered $378.4 billion drug money, equal to 1/3 of Mexico's GDP

Bloomberg: Banks Financing Mexico Gangs Admitted in Wells Fargo Deal

You think the banks are coming clean? Truth is, if drugs were legalized and the illicit trade were bought to a halt. If the US and UK army stopped guarding poppy fields (See a video about that on mainstream news here: http://www.youtube.com/watch?v=HNqIrDKnNE8 ), if that was halted, stopping the whopping 60% annual rise in Afghan opium production, the truth is THE BANKS WOULD GO BUST because they are dependent on drug money laundering. The theater right now about Libor is just that because the whole purpose of a central bank is to manipulate Libor, that is what they do when they set interest rates and do quantitative easing!! This is all to throw you off the scent of major money laundering from mega organized crime.

Posted by libertas @ 10:01 PM 16 Comments

Quick! Have another meeting!

Associated Press: Spanish, Italian borrowing rates rising again

Borrowing rates for Spain and Italy rose to distressing levels again on Friday, signaling a resurgence in concern over Europe's debt crisis just one week after markets cheered leaders' decision to help financially weaker states. The rate, or yield, for the Spanish 10-year bond was up 0.22 percentage points to 6.96 percent by early afternoon in Madrid. That level is deemed unsustainable over the long term and could push Spain to seek a full-blown bailout like Greece, Ireland and Portugal. The summit decisions were generally seen as a step in the right direction in the resolution of the crisis, but the feeling is that more needs to be done — and faster. One key concern is that the European bailout fund will not be big enough if Spain or Italy needed rescue loans for their governments.

Posted by general congreve @ 03:31 PM 2 Comments

Home insurance claims by street name...

Nest Finance: 166 Green Way is 'worst place to live'

People living at 166 Green Way are more likely to have to make a claim on their home insurance, according to research from Confused.com

Posted by keith hodges @ 11:56 AM 0 Comments

BoE mortgage approvals and UK house prices

MoneyWeek: BoE mortgage approvals and UK house prices

Lead economic indicators: UK house prices. The Bank of England's monthly 'mortgage approval for house purchase' figures, a useful forward indicator of UK housing market activity.

Posted by martingreen @ 11:52 AM 6 Comments

Barclays finally tells it as it is

Various: Nice to see some honesty from barclays

good to see barclays finally come clean....we need this attitude to let go of the past

Posted by taffee @ 09:26 AM 2 Comments

£12,000 premium for a property 500m from the nearest station

Planet Property: £12,000 premium for a property 500m from the nearest station

Homebuyers in Greater Manchester pay £12,000 premium for a property 500m from the nearest station ...but still less than London.

Posted by the planet @ 08:57 AM 0 Comments

Whitewash ahead

Guardian: MPs vote for parliamentary inquiry into Libor scandal

Where would the rot have stopped? Somewhere near the then Prime minister and Governor I imagine.

Posted by paul @ 07:07 AM 4 Comments

Thursday, July 5, 2012

Shock & Surprise!

Telegraph: Debt crisis-> Greece admits it's off track on bail-out terms, as troika inspects

"Greece's new finance minister, Yannis Stournaras has admitted that the country is "off-track" to meet the conditions of its bail-out agreements". " Mr Stournaras is under intense public pressure to renegotiate the tough austerity measures with the visiting delegation". (You couldn't make it up, could you?). Meanwhile...Russia is offering Cyprus cheaper bail-out loans than the EU and IMF, president Demetris Christofias said on Wednesday.

Posted by alan @ 08:49 PM 3 Comments

Danes say don't give us your money, we don't want it!

Bloomberg: Denmark Cuts Rates to Record Lows as Zero Threshold Breached

Denmark’s central bank cut its main borrowing costs to record lows and brought the rate it offers on certificates of deposit below zero, as policy makers test uncharted territory to fight a capital influx. The benchmark lending rate was cut to 0.2 percent from 0.45 percent, while the deposit rate was reduced to minus 0.2 percent from 0.05 percent, Copenhagen-based Nationalbanken said in a statement today. The move followed a quarter of a percentage point cut in the European Central Bank’s main rate to 0.75 percent. Nationalbanken doesn’t hold scheduled meetings and only adjusts rates to defend the krone’s peg to the euro.

Posted by general congreve @ 07:15 PM 3 Comments

Architectural masterpiece of portent of doom?

Telegraph: The Shard developer says London 'owes a debt' to Qatar

This is a bit of topic but I cannot help remember a study by Barclays Capital that notes a curious correlation between high rise glamour buildings and economic problems: '"Often the world's tallest buildings are simply the edifice of a broader skyscraper building boom, reflecting a widespread misallocation of capital and an impending economic correction," Barclays Capital analysts said.' This seems potentially appropriate considering what has happened to our economy in the last few years.

Posted by quiet guy @ 06:58 PM 6 Comments

Housing Research Fodder

CLG: English Housing Survey: Household Report 2010-11

Detailed report of the english Housing Survey. Some key findings include: Owner occupiers buying with a mortgage made average weekly mortgage payments of £143. This compared to average weekly rent payments of £160 made by privately renting households, and £79 by social renters. 59% of private renters and 23% of social renters said they expected to buy a home in the UK, at some point. Of these, 16% had considered applying for a mortgage in the last 12 months.

Posted by greenmind @ 04:26 PM 0 Comments


Wall Street Journal: China Cuts Key Interest Rates

There was an interesting piece on zerohedge or maybe somewhere else (oops~ ) that the Chinese officials are systematically looting prior to jumping ship to Canada, and that the main mechanism is negative interest rates for the general population, while allowing direct subsidy to the borrowing state owned businesses. Negative returns on savings with negative borrowing costs would seem the fleecing mechanism of choice. So that is the state of China and also our very own state apparatchik interatun von controller seems to have pumped some more cash into to keep those pesky prices on their eternal upward march. China also seems partial to just dropping the reserve requirements because hey, you always get the money back on a negative interest rate right !

Posted by stillthinking @ 03:45 PM 0 Comments

Time for UK to default?

Bloomber: Devaluing the Pound Isn’t a Solution, It’s Default

Official net U.K. debt excluding the effect of financial interventions such as bank bailouts is about 1 trillion pounds ($1.57 trillion), or 36,000 pounds per household. A recent analysis of U.K. pension accounts by Ros Altmann of Saga Group Ltd., an enterprise focusing on financial services for those aged over 50, estimated that the 5 trillion-pound to 7 trillion- pound cost of U.K. unfunded state pensions amounts to at least an additional 180,000 pounds per household. The U.K. government must either default or modify unfunded promises if it is to resolve those debts. Devaluing the pound would be one way to achieve that.

Posted by allillanchoo @ 12:33 PM 0 Comments

Another brick in the wall

BoE: Bank of England maintains Bank Rate at 0.5% and increases size of Asset Purchase Programme by £50 billion to £375 billion

The Bank of England’s Monetary Policy Committee today voted to maintain the official Bank Rate paid on commercial bank reserves at 0.5%. The Committee also voted to increase the size of its asset purchase programme, financed by the issuance of central bank reserves, by £50 billion to a total of £375 billion.

Posted by dill @ 12:19 PM 10 Comments

Average UK house price is now £162,417

Myfinances.co.uk: Halifax reports surprise 1% increase in house prices in June

Halifax reports a surprise one per cent increase in UK house prices in June but the underlying annual trend is still falling.

Posted by ben @ 09:45 AM 0 Comments

June 2012 (seasonally adjusted)

LBG: Halifax House Price Index

Annual change -0.5% Quarterly change -0.3% Monthly change +1.0% Average Price £162,417

Posted by dill @ 09:00 AM 4 Comments

Increase in tax of foreign-owned second homes.... Spain next?

Telegraph: Francois Hollande announces French tax grab on holiday homes

British owners of holiday homes in France are to be hit with punitive tax rises under plans announced by the new Socialist government. EU when you feel like it....

Posted by tom101 @ 08:56 AM 5 Comments

Spectre of deflation like japan

Dailymail: Is deglation the new threat

I can see uk going down the same road as japan as the two situations are so similar in so many ways...despite all the money printing and zero interest rates property is still 40% less than 1991

Posted by taffee @ 08:05 AM 24 Comments

Wednesday, July 4, 2012

The fan is spinning - but who throws the first turd?

The Spectator: Crony Conservatism

Today's hypocrisies cannot last for two reasons. First the gap between what Conservatives say and what they do will soon become an electoral liability. No centre-right party can expect to prosper if it puts the interests of the state-subsidised rich before the interests of the middle class. Second, inertia is destroying what's left of the City's reputation. Unless radical reform begins soon, the world will see it as a pirate state which you visit, rob or be robbed but never to conduct honest business.

Posted by rental john @ 10:08 PM 0 Comments

World War has been cause in the past - World Meltdown now?

New Statesman: Chart of the day: Nowhere to call home

Full article at New Statesman

Posted by rental john @ 09:55 PM 0 Comments

Meanwhile struggling renters can GTFO

Lancashire Telegraph: Call to help struggling East Lancashire homeowners in negative equity

Local MP Graham Jones has demanded more help for East Lancashire home owners whose mortgage is bigger than the current value of their property. "Rates of negative equity in the North are four times higher than those in London. There are hard-pressed families in these regions struggling to pay their mortgages. What help is the Housing Minister going to give them?”

Posted by little professor @ 08:47 PM 7 Comments

A warning from Austria

Daily Paul: Austria 1938 ... USA 2012?

In 1938, Austria was in deep Depression. Nearly one-third of our workforce was unemployed. We had 25% inflation and 25% bank loan interest rates. Ninety-eight percent of the population voted to annex Austria to Germany and have Hitler for our ruler. Totalitarianism didn't come quickly, it took 5 years from 1938 until 1943, to realize full dictatorship in Austria . Had it happened overnight, my countrymen would have fought to the last breath. Instead, we had creeping gradualism. Now, our only weapons were broom handles. The whole idea sounds almost unbelievable that the state, little by little, eroded our freedom.

Posted by libertas @ 08:40 PM 1 Comments

A sound ticking off should sort this global multi-millionaire gangster out, make no mistake!

Sky: Bob Diamond To Get Rough Ride From MPs

Bob Diamond is expected to come out fighting in a showdown with MPs, following his surprise resignation as Barclays chief executive in the wake of the rate-rigging scandal. Mr Diamond and his right-hand man Jerry del Missier both quit with immediate effect as the storm surrounding the Libor fixing dragged in the Bank of England . The multimillionaire former Barclays head is due to face the powerful Treasury select committee. At his appearance before the committee of MPs, chaired by the Tory Andrew Tyrie - also expected to lead a parliamentary inquiry into banking - the former boss will attempt to account for the sequence of events between 2005 and 2009, when the bank tried to fix the London interbank offered rate (Libor) in its favour.

Posted by general congreve @ 07:04 PM 1 Comments

Max Keiser tells it how it is

Al Jazeera: Inside Story - Rigged bank rates: Is there more to come?

Right about 12mins in, Max explodes! Calming down, later on, he notes that we have over $800tn of derivatives and other financial instruments resting on LIBOR. He puts forward the simple question, do we want free markets or a command and control economy. Max states that the economy sought by Mervyn King and all his buddies is a Soviet economy. He states that savers, pensioners, investors and entrepreneurs have been subsidizing these gambling trades and calls for government to get out of the way and let markets decide rates. A comment from me, if government stop subsidizing real estate bets, government bonds and their prolific wasteful spending, then maybe, just maybe, we might get investment in mining, factories and retail operations. Maybe, just maybe getting the economy back on track.

Posted by libertas @ 05:51 PM 17 Comments

The house-price reality gap

MoneyWeek: The house-price reality gap

Reality is starting to bite. House sellers can't sell their homes for the prices they want. And the gap between expectation and reality is getting wider.

Posted by martingreen @ 05:16 PM 6 Comments

Liebor~what's the answer?

Sky: Banks Draw Battle Lines Over Rate Row

PMQ: Milliband claimed the Tories were a party "bankrolled by the banks", adding: "If he fails to order a judicial inquiry, people will come to one conclusion: he simply can't act in the national interest." Mr Cameron countered: "Labour want to talk about absolutely everything except their own record... We may have found the Higgs Boson particle, Labour have not found a sense of shame."

Posted by alan @ 03:39 PM 3 Comments

The Ultimate Punishment

Bank of England reports fewer people releasing equity from homes

Myfinances.co.uk: Brits repay £122b more on homes than borrowed since 2008

Housing equity withdrawal (HEW) was negative again in the first three months of 2012, according to latest Bank of England data.

Posted by ben @ 12:34 PM 0 Comments

Schadenfreude ist die schönste Freude...

Guardian: Andy Coulson falls victim to the London property slump

But I thought that "The London market is powering ahead"?

Posted by mark wadsworth @ 12:27 PM 3 Comments

Beware the shared ownership trap

Planet Property: Beware the shared ownership trap

Shared ownership schemes run by housing associations to help people onto the housing ladder can become a trap for buyers

Posted by the planet @ 09:55 AM 1 Comments

Rental arrears up, according to surveyors Templeton LPA

Myfinances.co.uk: Number of tenants in severe rent arrears soars by 24%

More than 100,000 tenants across England and Wales are now in severe rent arrears, research shows.

Posted by ben @ 09:37 AM 3 Comments

Tuesday, July 3, 2012

Flat-sharers seek similar, BBC is surprised to learn

BBC News: Flat adverts that may be breaking the law

"To let" advertisements that specify a particular race or religion are visible in newsagents windows in many areas of London. But are they breaking the law? Newsagents in different areas of London carry adverts saying: - "Double bedroom available… Asian only" - "Double room to let Gujarati (Indian) only" - "Close to the station and bus stops (Filipino only) - "Professional single lady or Sri Lanka professional couple" - "House for rent… only Asian families" They only represent a small proportion of flat ads but it's hard to imagine even a single similar advert saying "whites only" not drawing complaints. While adverts specifying ethnicity are not common, those that say "female only" or "male only" are widespread. These also may now be against the law.

Posted by drewster @ 11:01 PM 13 Comments

London property report

The Economist: Home is where the money is

"High house prices make life difficult for Londoners and threaten the city’s prosperity"

Posted by rumble @ 08:49 PM 3 Comments

Landlords feel the pinch

Dailymail: Buy to let landlords in trouble

and there we were thinking buy to let was a one way ticket to riches beyond ones expectations

Posted by taffee @ 05:08 PM 9 Comments

Out of the mouths......

Youtube: Victoria Grant

A twelve-year-old girl gives the bankers a roasting. Her message is that banks create money out of thin air and lend it to people and governments at interest. If governments borrowed from their own banks they could keep the interest and save a lot of money for the taxpayers...and more.

Posted by icarus @ 03:08 PM 8 Comments

Prepare the Doom Loop! HA, HA, HA, HAHAHAHAHA!!!

Moneyweek: How to protect yourself from an exploding gilt bubble

Some recently published reports from Hinde Capital note that, if anything, Britain has become more vulnerable to shocks since the financial crisis. And once again, much of the danger is centred around the UK housing market. The problem is that, following the crisis, more and more houses have moved from fixed-rate loans to variable or tracker-rate loans. In fact, fixed-rate loans now account for “less than 30% of mortgages” from more than half (by outstanding balance) before the crisis. All of this means that the housing market is much more sensitive to any shift in interest rates. In all, this leaves “UK property vulnerable to another correction”. And that’s where we get back to the question of the gilt market, the bank-sovereign-bank ‘doom loop’.

Posted by general congreve @ 02:59 PM 1 Comments

Over in Ireland...

Irish Examiner: House price crash hit starters hardest

We all know that it's game over in Ireland but seeing the numbers really brings it home, eg: "The price of an average one-bed apartment fell 62% since 2007 from €231,000 to €88,000." The home buyers who bought at peak are in the dreaded negative equity trap. While over here the Daily Flail continues talking up the market, the great unravelling is nigh - witness the City of London earthquake (as one paper called it this morning) and note the governor of the Bank of England saying we are on for a five year recession. Bubble. Burst. Back to affordable housing...

Posted by bloik @ 02:04 PM 0 Comments

Bank of England lending figures show fall in mortgage lending

Myfinances.co.uk: Lending rises but mortgage approvals fall, figures show

Lending to UK consumers rose last month while approvals for mortgages fell, latest Bank of England figures reveal.

Posted by ben @ 11:43 AM 0 Comments

Land Registry figures show small annual drop in house prices

Myfinances.co.uk: House prices up 0.5% in May, says Land Registry

House prices rose by 0.5 per cent in May, latest available figures from the Land Registry indicate. The cost of a typical home in England and Wales is now around £161,677, which is 0.4 per cent lower than the same time a year ago.

Posted by ben @ 09:24 AM 0 Comments

Economic textbook theory under fire

Reuters: Special Report - Crisis forces "dismal science" to get real

There's quite a lot in this article but the gist is that it's getting hard to ignore the gulf between economic theory as taught and the real world. Perhaps someday we'll realise that blowing property bubbles isn't so clever. 'Roger Farmer, a professor of economics at the University of California in Los Angeles, was at a dinner at the Bank of England to celebrate the "Great Moderation", a term coined to describe an era in which some politicians claimed monetary policy had ended boom and bust. "We had entered a new era of economic prosperity," he recalled in a paper this February. That night, British building society Northern Rock went under, heralding the start of Europe's crisis and a global backlash against economists.'

Posted by quiet guy @ 08:25 AM 14 Comments

Monday, July 2, 2012

Landlords evict good tenants ahead of the "greatest show on earth"

Channel 4: Dispatches: Cashing in on the Games

The Olympics could be a once-in-a-generation opportunity to show off the best of Britain and boost our ailing economy. But in the rush for gold, will retailers and businesses out to make a quick profit tarnish our reputation? Channel 4 Dispatches turns back the covers on budget hotels planning massive mark-ups, goes undercover to expose illegal ticket touting, and meets the people losing their homes ahead of the Games. Reporter Morland Sanders goes in search of the people cashing in on London 2012, and examines whether the overall economic benefits of hosting the event have been oversold.

Posted by drewster @ 09:06 PM 5 Comments

Surely not? (said with Sean Connery accent…)

Mortgagestrategy: 41% year-on-year fall in £1m plus property sales

The latest data from the Land Registry for sales data in March has revealed that year-on-year £1m plus property sales fell by 41% in England and Wales. There were just 501 properties sold over the period, compared to 845 in March 2011. But overall completed property sales rose by 25% year-on-year from 46,572 in March 2011 to 58,609 in March 2012. In terms of house values for May compared to April, house price went up 0.5% and now stands at £161,677.

Posted by jack c @ 08:10 PM 2 Comments

Another smokescreen inquiry to allow party funders to escape justice

BBC: Banking – stand by for an inquiry

The Prime Minister is proposing that a joint committee of MPs and peers will investigate the banking industry.

Posted by micasasucasa @ 05:53 PM 14 Comments

Hope springs eternal?

AboutProperty: First-time buyers hopeful of getting on ladder

Meanwhile the average age of those expecting to get on the ladder has fallen from 32 in October 2011 to 21 now.

Posted by phil @ 11:11 AM 0 Comments

Hometrack survey reveals fall in demand

Myfinances.co.uk: House prices flatline in June amid falling demand

House price growth stalled in June for the first time in four months, as economic uncertainty and a seasonal summer slowdown hit the property market, new figures show.

Posted by ben @ 10:17 AM 7 Comments

Prime London rents in negative territory for first time in 2 years‏

Planet Property: Prime London rents in negative territory for first time in 2 years‏

Annual prime London rental growth has slipped back into negative territory for the first time in two years, says Savills

Posted by the planet @ 09:33 AM 2 Comments

Listen up Mr FT: It's "hopes" not "fears"

FT: House price growth halts as demand falls

"House price growth across England and Wales stalled in June, a survey has shown, prompting fears that the value of houses may soon start to fall." Reminds me of the Dead Housing Market sketch "Listen matey, this market would'nt voom if you put £1000 billion through it"

Posted by voiceofreason @ 09:08 AM 1 Comments

Hometrack survey

Bloomberg: House Prices Stagnate on Subdued Demand

"A seasonal slowdown curtailed activity in a market that now faces “downward pressure,”

Posted by alan @ 08:31 AM 0 Comments

Sunday, July 1, 2012

Taps on full flow

Telegraph: Bank of England prepares £200bn economic stimulus

The Bank of England is preparing to unleash a £200bn stimulus package for the economy by printing more money this week and relaxing financial regulations. Details in the Bank’s Financial Stability Report (FSR), released last week, showed that the decision to let banks tap reserves of cash and liquid assets could provide as much as £150bn for new lending – a sum equivalent to the entire stock of loans to UK small and medium-sized businesses. Rate-setters on the Bank’s Monetary Policy Committee are also expected this week to unveil a further £50bn of quantitative easing (QE).

Posted by drewster @ 10:14 PM 16 Comments

Terminator IV

The Sunday Herald: The global scam that may prove terminal for Barclays, Lloyds and RBS

Banks could face civil and criminal cases across the world, according William K Black, an associate professor of economics and law at the University of Missouri-Kansas City, and a world-leading expert on financial crime. Indeed, some class actions are already in the pipeline. Should that be the case, I wonder what it would do for the availability of mortgages

Posted by stuartking @ 09:58 PM 7 Comments

Another voice in favour of LVT

Telegraph (blogs): How our tax system hurts workers and rewards rentiers

Here's a hypothetical question: if you inherit a house, worth a million pounds, and rent it out for £50,000 a year, should you pay more tax on that income or less than someone who works an 80-hour week for the same salary? Some readers may disagree, but I think that you should pay more. You've done nothing to earn that money – you simply own a property that somebody else finds useful. But if you own a property, you only pay income tax on the rent you earn from it. If you work for your income, you pay three income taxes – there is national insurance and, effectively, employers' national insurance too. That brings the effective tax rate paid on PAYE income up to 40pc for basic rate payers, compared to 20pc on non-PAYE income. The worker pays a higher tax rate than his landlord.

Posted by drewster @ 05:58 PM 9 Comments

260 construction jobs - not seen this in MSM

The Construction Index: 260 go as John Doyle collapses

My brother is worried as he is a freelance professional in the construction industry working on Crossrail. He is thinking of becoming salaried now as he said there will be 260 people all looking for jobs now on the freelance market.

Posted by longtermrenter @ 11:29 AM 1 Comments

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