October 2012 Archive

Tuesday, October 30, 2012

Gutted condition, but no reserve.

Yahoo Finance: The £750 semi-detached house

What could become the cheapest house in Britain is up for sale tonight - with a starting bid of less than £1,000. Robinsons estate agents, based in the North East, has this bargain property listed as "lot 55" last in its auction tonight - with a starting bid of just £750. "Ideal investment opportunity," the estate agent claims.

Posted by rental john @ 04:57 PM 0 Comments

The Latin building boom

MoneyWeek: Two ways to play the Latin building boom

While Britain wallows in debt, Latin America is forging ahead with massive infrastructure projects, says James McKeigue. Here, he reveals a great story that most investors are missing out on.

Posted by martingreen @ 03:59 PM 1 Comments

Mortgage approvals rise in September

Myfinances.co.uk: Consumer credit rise points to UK households opening wallets

UK households have arranged to borrow an extra £1.2 billion more than normal through credit cards, personal loans, overdrafts and other borrowing in the run up to Christmas, according to official figures released by the Bank of England today.

Posted by ben @ 10:03 AM 0 Comments

Socially Useful Banking (?) (!)

Telegraph: Occupy protesters were right, says Bank of England official

The anti-capitalist protesters who occupied St Paul’s Cathedral were both morally and intellectually right, a senior Bank of England official said last night. [It's interesting that Haldane is prepared to make speeches like this, while the Establishment is so determined to hang onto the product of all the malfeasance - over-priced housing.]

Posted by dill @ 08:14 AM 21 Comments

Monday, October 29, 2012

Hometrack's -0.1% fall

Telegraph: House sellers cut prices to get property market moving

"The number of agreed house sales jumped sharply this month as sellers dropped their prices to shift homes which have been lingering on the market, a study has found".

Posted by alan @ 02:54 PM 4 Comments

Good article that

Scotts Buzz: What have future generations ever done for us?

..that doesn't even bother with the pretence that our economic ills are over.

Posted by stillthinking @ 12:35 PM 0 Comments

Second step on property ladder increasingly difficult to take

Planet Property: Second step on property ladder increasingly difficult to take

Lack of equity and price of trading up are combining to make it increasingly difficult to take the second step on the property ladder (presuming you've managed to make the first, of course!)

Posted by the planet @ 11:03 AM 0 Comments

Keeping it going...

Telegraph: UK consumer lending hits 4-year high

Lending to UK consumers rose at the fastest pace in four and a half years in September and mortgage approvals hit a four-month high, according to official data. The figures published by the Bank of England on Monday showed that consumer credit rose by £1.2bn last month, the strongest rise since February 2008 driven by a £893m increase in overdrafts and loans. Mortgages also saw a boost with lenders granting 50,024 last month, compared with 47,921 in August, beating economists surveyed by Bloomberg who forecast 48,700. Mortgage lending grew by £491m, beating analyst forecasts of a £450m.

Posted by hpwatcher @ 11:00 AM 6 Comments

Human Stupidity & house prices

Youtube: House Prices: Why are they so high?

We all know this, but nice to watch...

Posted by happy mondays @ 09:42 AM 8 Comments

House prices down 0.1 per cent in October

Myfinances.co.uk: Hometrack: House prices down in October despite jump in sales

House prices dipped slightly again in October, according to the latest survey by property analysts Hometrack.

Posted by ben @ 09:10 AM 1 Comments

Australian Housing bubble blows.

The New Australian: Is this Australia’s Northern Rock moment?

And here http://www.theaustralian.com.au/national-affairs/banksia-burnt-by-bad-debts-properties/story-fn59niix-1226504230854 . Australia is very different to the UK but perhaps they will struggle to reflate. Indeed, as one savvy commentator on this very site pointed out the AUD is going to need some relief.

Posted by stillthinking @ 03:17 AM 2 Comments

Rightmove confidence

AboutProperty: Rightmove: Mortgages boost housing market optimism

Property market optimism is growing in tune with the government's mortgage stimulus, suggests Rightmove's latest consumer confidence survey. The proportion of people who believe that house prices will be higher in a year's time jumped from 22 per cent last year to 29 per cent in 2012. However the majority still believe that house prices will be lower or the same.

Posted by phil @ 01:39 AM 0 Comments

Saturday, October 27, 2012

In a recession, house prices rise.....so how does that work?

Daily Mail: House prices at 2-year high: Biggest jump since 2010 takes typical price to £162,561

London drove the market with the biggest increase Annual increases concentrated around the South, while the North, the Midlands and Wales saw falls The Olympics and Queen's Jubilee celebrations have been blamed for disrupting house sales recently House prices have recorded their biggest annual growth in almost two years, the Land Registry has revealed. The 1.1 per cent rise in September for England and Wales was the biggest year-on-year rise since November 2010. It took typical prices to £162,561. The annual increases were concentrated around the South – with the South West, the South East, London and the East seeing rises.

Posted by hpwatcher @ 10:46 AM 8 Comments

Remaining dregs of your pension fund to be set on fire

The Daily Mash: Remaining dregs of your pension fund to be set on fire

The Future Homes Commission has called for pension funds to be used to build hundreds of thousands of houses, in a move that will immediately drive down the value of hundreds of thousands of houses.

Posted by tick tock @ 08:01 AM 0 Comments

Friday, October 26, 2012

For September 2012

Land Registry: House Price Index (pdf)

Index 261.0 Monthly change -0.3% Annual change 1.1% Average price £162,561

Posted by dill @ 04:50 PM 11 Comments

Britain’s biggest economic disadvantage - our property market

MoneyWeek: Britain’s biggest economic disadvantage - our property market

Despite technically emerging from recession, Britain's economy remains paralysed. And it's down to one thing, says John Stepek: house prices.

Posted by martingreen @ 02:31 PM 4 Comments

And two-year deal at 2.39% for 60% LTV's

Myfinances.co.uk: Yorkshire BS launch five-year fix at 2.99%

The Yorkshire Building Society has released four new mortgage products aimed at borrowers with high levels of equity.

Posted by ben @ 10:47 AM 0 Comments

Reasons to be cheerful, reasons to be fearful...

Myfinances.co.uk: GDP: Let's celebrate end of double-dip but fear triple-dip too

We can forgive the government for enjoying their moment of satisfaction on the release of GDP figures yesterday that showed the economy had grown by a full one per cent in the third quarter.

Posted by ben @ 09:36 AM 0 Comments

Social housing pathway removed

Guardian: New homeless rules a 'profound and astonishing' shift in housing policy

From 9 November, the responsibility of councils to homeless households will change. Why has nobody noticed?

Posted by dill @ 09:03 AM 1 Comments

Ambition

Guardian: Architects urge use of £10bn council pension funds to build 6m homes

RIBA commission pushes for council workers' retirement savings to be invested in 20-year 'surge of quality home building'

Posted by dill @ 01:01 AM 14 Comments

Thursday, October 25, 2012

No HPC for HS2 vanity project

Independent: £1.3bn for those living on high-speed rail route

People who live in the countryside - but not residents of built-up areas like north London - that are between 60m and 120m away from the track will be entitled to the full unblighted value of their homes plus reasonable moving costs up to £47K. To entertain Mark W the article even has the obligatory widow with 7 kids.

Posted by enuii @ 09:10 PM 10 Comments

A call for housebuilding

Vox: Returning to growth in the UK

"If there is one area that could deliver short-term stimulus and long-term efficiency gains, as in the 1930s, it is surely private house building. The evidence suggests that draconian planning restrictions mean that the stock of houses is three million below and real prices are 35% above the long-run free market equilibrium (Hilber and Vermeulen 2012). The welfare gains from some relaxation of these planning rules are huge and the employment implications of steadily addressing the housing shortfall could be considerable – building 200,000 extra houses per year might employ 800,000." Nicholas Crafts - Professor of Economics and Economic History at the University of Warwick

Posted by chrisch @ 02:17 PM 10 Comments

FSA unveils mortgage market review

Myfinances.co.uk: FSA mortgage review will "hard-wire common sense" into market

The Financial Services Authority (FSA) has outlined how it will attempt to more effectively regulate the UK mortgage market in the future and to stop borrowers taking out loans that they cannot afford.

Posted by ben @ 01:34 PM 0 Comments

Bear nibbles

FT Adviser: Mortgage lending continues to plummet: CML

"Data from the trade body said gross mortgage lending stood at £11.6bn last month, 15 per cent down on September 2011. While the CML said gross lending for the third quarter was estimated to be £37.3bn, up 8 per cent form the second quarter of 2012, this was a 5 per cent decrease year-on-year. Bob Pannell, chief economist for the CML, said: “There have been hints of demand softening over recent months, but monthly patterns may have been distorted by the Olympics..." Ah, right, the Olympics.

Posted by mark wadsworth @ 10:59 AM 0 Comments

Mortgage Market Review Final

FSA: FSA confirms new rules that will hard-wire common sense into the mortgage market

The Financial Services Authority (FSA) has published new rules that put common sense at the heart of the mortgage market and will prevent future borrowers ending up with a mortgage they cannot afford.

Posted by dill @ 10:56 AM 1 Comments

UK emerges out of recession due to one-off factors

Myfinances.co.uk: GDP: Now the really interesting time for the economy begins

The UK has emerged from recession in the third quarter after posting growth of a full one per cent in the three months ending in September, according to official figures from the Office for National Statistics (ONS).

Posted by ben @ 10:51 AM 0 Comments

"Common sense"

AboutProperty: Lenders must improve checks on borrowers' salaries

Mortgage lenders are to be made to check borrowers' incomes and ensure there is a credible repayment plan for interest-only loans, under new Financial Service Authority (FSA) rules. The regulator is aiming to "hard-wire common sense into the mortgage market" and the changes will come into force in April 2014, a year later than expected.

Posted by phil @ 10:08 AM 0 Comments

Why Interest Only deals are now out of favour

Mail: FSA report reveals interest-only deals have turned into a £100bn 'time bomb'

"Millions of families who took out interest-only mortgages during the boom years may never be able to repay them, a damning report warns today. A ground-breaking investigation by the financial regulator into Britain’s home loan market reveals that these deals have turned into a £100billion ‘ticking time bomb’ ".

Posted by alan @ 09:25 AM 5 Comments

Wednesday, October 24, 2012

Tory MP explains to Max Keiser why low interest rates are a political necessity

The Keiser Report: Episode 357

Skip to the last 4 or 5 minutes: Tory MP Kwasi Kwarteng refutes Max Keiser's claim the City of London is a racket and makes the point that low interest rates are needed to keep the majority of his constituents happy in their homes.

Posted by greenmind @ 10:53 PM 5 Comments

More QE - as predicted coming next month

Independent: Mervyn King signals BoE is preparing for new round of QE

"Sir Mervyn King has given the clearest signal yet that the Bank of England is poised to launch another round of quantitative easing to boost the ailing UK economy" (I'm guessing the Eurozone and the US will print after the American election too).

Posted by alan @ 03:29 PM 47 Comments

House price collapse

Yahoo: 'Bargain' house in cliff collapse

Nice house, pity about the obvious downside (excuse the pun). Comments at the bottom are worth a read.

Posted by crash n burn @ 01:03 PM 1 Comments

Urther small cuts across mortgage range

Myfinances.co.uk: Halifax launches £1,000 cashback offer for FTB's

Halifax has announced that first-time buyers who take out 75 – 90 per cent two-year loan-to-value (LTV) mortgages and 85 – 90 per cent seven-year LTV deals can qualify for £1,000 cashback.

Posted by ben @ 12:53 PM 0 Comments

Further cuts for 70% LTV borrowers too

Myfinances.co.uk: Nationwide cuts mortgage rates for first-time buyers under NewBuy scheme

The Nationwide Building Society has announced its second cut in mortgage rates on some of its products in just two weeks. The majority of its tracker rate mortgages will see a drop of 0.20 per cent and tracker rates will fall by up to 0.10 per cent.

Posted by ben @ 12:28 PM 0 Comments

It's all at the top though.

AboutProperty: Welsh house prices drop - but sales rise

Welsh house prices fell for the fourth consecutive month, but sales rose 12 per cent according to the latest house price index from LSL/Acadametrics.

Posted by phil @ 11:44 AM 0 Comments

Consumers continue to repay capital

Myfinances.co.uk: BBA reports small rise in mortgage borrowing

There was a small increase in the number of mortgage approvals in September, according to the British Bankers Association (BBA). However, the minor increase from August’s level of 30,683 to September’s number of 31,175 reflects the continued subdued activity in the UK property market.

Posted by ben @ 09:49 AM 0 Comments

Ricardo's Law of Rent in action

BBC News: National Housing Federation warns of rising rent prices

The cost of renting property in the South East and South West of England could rocket over the next decade, the National Housing Federation has warned. It said house prices rising well above salaries meant more people had been forced to rent, driving prices up. It estimates rents in the South East which now average £846, could go up to £1,315 by 2022. In the South West, the figure could rise from £661 to £981. BBC film clip tells the story of Aimee Watts from Basingstoke who had to move back in with her parents because she could not afford to pay rent on a property. The job centre advised her to chuck in her job because she'd be better off on benefits.

Posted by greenmind @ 08:46 AM 16 Comments

But !

Mail: The never ending mortgage drought: New crackdown will make tough lending rules 'a permanent feature' for millions

In August 2007 – the month the credit crunch struck – 103,000 house purchase loans were made available. In August this year, there were only 55,300.

Posted by happy mondays @ 07:38 AM 1 Comments

Rebuff of gilt cancellation by King

Sky News: Sir Mervyn King Hints Recession May Soon Be Over

King suggests recession is soon over, I hope so but don't believe him. Dismisses gilt cancellation, due to the need for monetary control ( he can give 50 pounds out to people on the street but can't get them back) but doesn't explain how exactly he would be able to sell the gilts back into the market, when the only realistic option is to hold them to maturity. My own view reading between the lines is that King is starting to worry about future inflation, as after all he has been very convincing in creating the belief. Who wants pension funds in sterling? Sterling is not a reliable store of value, yes, I believe him now my deflation ideas were wrong. What next? Government needs to monetise debt in 4 years and counting.

Posted by stillthinking @ 06:27 AM 3 Comments

Tuesday, October 23, 2012

Guess What

BBC News: National income per head 'down 13% in four years'

All things being considered the ONS has calculated that national income per head, taking inflation into account, has fallen more than 13% since the start of 2008. Unsurprisingly this is the result of the recession as well as high levels of inflation and that national income per head dropped much more sharply in the four years to mid-2012 than it did after the recession which came in the wake of the Winter of Discontent and the 1979 oil shock. Brendan Barber of the TUC responded to the figures by with the pearl of wisdom that, "An over-reliance on the housing bubble and personal debt exaggerated income growth in the run-up to the recession,"

Posted by enuii @ 05:40 PM 2 Comments

Overseas buyers boost London property market

London Loves Business: Overseas buyers in diversifying boost for London property

London construction firm Telford, today announced that 40% of its business had come from abroad this year.

Posted by sandra @ 02:55 PM 0 Comments

"...no appetite to take on more/new debt."

BBA: High Street Banking Statistics September 2012 (pdf)

Mortgage approvals for house purchase showed a small upturn from August, but in September were still 6% lower than a year ago.

Posted by dill @ 11:58 AM 0 Comments

Fragility

Independent: One in four people are worried about their home being repossessed

Half the population concerned about the effects of a possible rise in mortgage rates, says new report.

Posted by dill @ 10:30 AM 1 Comments

Looking at Financial Markets and Foreign Buyers

1PercentBlog: London House Price: Still Going up

The financial market doesn’t expect an interest rate of 1% until September 2014 and that is if we include both the inflation during the period, and the fact that over a long period of time, the market will assume economic normalisation (hence why the Sep 17 future implies an interest rate of around 2.5%).

Posted by jordanshl @ 09:51 AM 0 Comments

One in four concerned about repossession

Myfinances.co.uk: Which? wants FLS benefits to be passed onto borrowers

Consumer group, Which? is calling for the government to protect homeowners by forcing lenders who are taking part in the Funding for Lending Scheme (FLS) to reduce fees and have tougher regulations enforced on them.

Posted by ben @ 09:39 AM 0 Comments

Farmland prices continue to ... grow

Planet Property: Farmland prices continue to ... grow

Sorry – atrocious pun. But there’s gold in them thar hills. An acre of GB now costs £7,200…. 8.5% more than a year ago

Posted by the planet @ 08:34 AM 0 Comments

One in four worried about having their home repossessed

Planet Property: One in four worried about having their home repossessed

Half the population are worried about mortgage rates and a quarter (26%) of people with mortgages fear having their home repossessed, says Which?

Posted by the planet @ 08:06 AM 0 Comments

Monday, October 22, 2012

No - I'm Spartacus

Geophilos: Crassus - The Cheat of Rome

Marcus Licinius Crassus, the man who defeated Spartacus, was Rome's richest man. He made his money as a property speculator, He forced the people off the land & into slums, then invented lots of ways to buy up the slum property. This was the really clever wheeze, he would then get the state to hand out doles to the people, thus increasing his rents. I'm so glad we have learned so much in the last 2000 years. Of course our civilisation will never fall, no matter how much of our wealth is appropriated by unproductive plutocratic landlords....

Posted by pete green @ 11:31 PM 3 Comments

Londoners must wait longer to buy first home

London Loves Business: Londoners must wait twice as long to buy first home

Londoners on average have to wait 18 years and 10 months to save enough for a deposit on their first property, the Yorkshire Building Society revealed today.

Posted by sandra @ 05:16 PM 0 Comments

Housing benefit will eat the world...

Mail (this is money): Housing bill doubles

Rents will go up for ever even as house prices fall. The taxpayer has limitless money to give away. Nothing can ever go wrong with this new business model which will save us all from the nasty Tory cuts and the horrid Labour overspending.....

Posted by chrisch @ 03:07 PM 6 Comments

Census data on second homes

BBC: Second addresses recorded by 1.57 million, census shows

Just over 1.57 million people living in England and Wales have a second address in another local authority, the Census 2011 has shown.

Posted by ontheotherhand @ 12:51 PM 0 Comments

But inflation is under control right?

Grauniad: Extra 10,000 working people a month reliant on housing benefit, says report

The number of working households forced to rely on housing benefit since the recession began in 2008 has doubled – a trend that will lead to a million earners being dependent on welfare to keep a roof over their heads by the next election, according to a report. As private rents rise faster than wages, another 10,000 working people a month need housing benefit to afford their rent. By the next election, the study warns, 1.2 million "strivers" will only be able to stay in their homes through welfare payments. The federation's analysis is that housing is becoming unaffordable as supply is outpaced by demand. The number of households in Britain is growing three times as fast as the number of homes being built.

Posted by richy richless @ 12:41 PM 1 Comments

Second homes...

AboutProperty: Over 1.5m own a domestic second property

Over 1.5 million people in England and Wales have a second property in another local authority, the Census 2011 has revealed.

Posted by phil @ 11:38 AM 0 Comments

The big threat to your stocks, pension and mortgage

MoneyWeek: The big threat to your stocks, pension and mortgage

So much of our wealth depends on government bonds that trouble in the bond markets could cause carnage. But trouble could soon be on the way, says Bengt Saelensminde. Here, he explains why, and how to protect your wealth.

Posted by martingreen @ 11:13 AM 0 Comments

Figures for 2011, etc.

Eurostat: Euro Area Government Defecits & Debt

In the eurozone the government debt to GDP hit 87.3pc at the end of 2011, up from 85.4pc at the end of 2010, while the EU hit 82.5pc, up from 80pc. (guesses for 2012, anyone?).

Posted by alan @ 11:06 AM 0 Comments

Sarah O'Grady's take on things

Express: New bounce in housing market

The Express suggests economic confidence is encouraged by upward House Prices (Felixtowe = good, Salford = bad).

Posted by alan @ 09:26 AM 3 Comments

Markit and Deloitte surveys show improvement in consumer spending

Myfinances.co.uk: Squeeze on household finances ease but outlook remains bleak

A new survey that analyses the current state and outlook for UK household finances says that the situation has improved and the squeeze is the lowest for two years.

Posted by ben @ 09:14 AM 0 Comments

Serious challenge to fractional reserve banking

Telegraph: IMF's epic plan to conjure away debt and dethrone bankers

Hmmm, mainstream economists seem to finally be waking up and smelling the coffee. This is the kind of thing Positive Money (Google it) have been trying to educate us about for ages.

Posted by voiceofreason @ 09:07 AM 2 Comments

Over priced property, high rents, No Brainer

Mail: Working families on housing benefit soar: Number of applications rising by 10,000 every month

Since 2009 there has been an 86 per cent rise in housing benefit claims by working families, with 417,830 more households now receiving the payments. A further 10,000 are applying every month.

Posted by happy mondays @ 08:19 AM 3 Comments

Sterling collapse

Moneyweek: How the pound has fallen

Rather scary list detailing the loss of sterling value against other currencies,and sterling has lost value against nearly all other currencies. Savers are worse off with sterling than with the Kazakhstan Tenge or the Bangladesh Taka ... we have only just managed to be a better bet than the syrian pound (yes the place wrecked with armed conflict). Amazingly this is the point we hear the leaders suggest monetising government debt.

Posted by stillthinking @ 06:29 AM 5 Comments

Workers need housing benefit

BBC: Benefits warning over workers

Surge in workers heading up to a million who also need housing benefit. Conclusion that rents would be lower if housing benefit wasn't stuffed in at every possible opportunity to ramp up the price, is not drawn. If you like these workers tax contributions are diverted to their landlords.

Posted by stillthinking @ 04:37 AM 3 Comments

Sunday, October 21, 2012

Get your violins out

Irish Times: Stories of negative equity, mortgage arrears and the banks

Sorcha Donohoe bought her two-bedroom house for €400,000 with a 37-year €310,000 mortgage. Herpay has been cut, and with a new child she is no longer able to rent out her second room, so she does not receive the €500 in rent that had previously gone towards her interest-only mortgage. The house has fallen in value and is “probably worth about €170,000 at a push” leaving her in €140,000 negative equity. The Government's advice line suggested she sell the property to a housing association on a mortgage-to-rent scheme. “I just wouldn’t do it. I purchased a house and I want to keep my house. I don’t think mortgage-to-rent is a solution because people invested a lot of money in their house and to hand their house over to anyone is not viable for anybody,” says Sorcha.

Posted by little professor @ 02:50 PM 6 Comments

Saturday, October 20, 2012

Figures

Telegraph: Financial distress in Britain: the best and worst sectors

Construction and Housing Services Britain's construction and housing sector continues to drag down growth. Official data last month showed that construction provided the largest negative contribution to second quarter GDP. According to Begbies Traynor, 35,959 businesses in the housing and property services industry experienced financial distress* in the third quarter. This represents a 108pc increase. The construction industry saw a 33pc rise, with the number of companies in financial distress rising to 23,190. Companies experiencing "financial distress" have at least one county court judgment (CCJ).

Posted by dill @ 12:00 PM 2 Comments

Friday, October 19, 2012

Another banking gaffe!

Reuters: Lloyds may face further $3.2 billion PPI hit

"Lloyds Banking may need to increase the funds it has set aside to compensate Britons sold unwanted insurance policies by more than 2 billion pounds, according to some analysts". "Barclays hiked its provision on Thursday for the mis-selling of PPI by 700 million pounds to 2 billion pounds, prompting widespread speculation that other banks will follow suit and the total cost for the industry could hit 15 billion pounds". (HSBC and Santander are also in line for a hit)

Posted by alan @ 07:22 PM 0 Comments

Have a nice Friday ;)

Frank knight: Abrupt end to summer optimism over house prices

“Once again, the economic recovery appears to be missing the vital ingredient of confidence. The future outlook is clouded by confusion over the current health of the economy and the appropriate policy response, as well as worries about the impact of austerity and the eurozone’s crisis.”

Posted by happy mondays @ 03:59 PM 3 Comments

Struggling seller resorts to comical Youtube song

Planet Property: Struggling seller resorts to comical Youtube song

Favourite line: "the wallpaper might make you go wowsers, but there's quite a lot of room for storing your trousers".

Posted by the planet @ 03:28 PM 0 Comments

Renters struggling to stay afloat as prices keep rising

Planet Property: Renters struggling to stay afloat as prices keep rising

The cost of renting a home has risen for to a new record high - and the number of renters struggling to keep a roof over their heads is also soaring

Posted by the planet @ 03:06 PM 0 Comments

It'll never happen of course

The Speccy: Exclusive: No10 advised to punish land hoarders

Though the government’s planning reforms will make it easier for developments supported by local communities to gain planning permission, one of the big blockages in the system is made up of developers themselves. The government is becoming increasingly aware of this, and one ministerial aide close to housing policy has come up with a solution.

Posted by montesquieu @ 02:23 PM 3 Comments

Finding a home gets harder for 5 million on housing benefit

Planet Property Blog: Only 1% of UK rentals accept benefits claimants

According to figures from Easyroommate.co.uk 99% of properties listed in August were not available to tenants on housing benefit claimants. Jonathan Moore, director of Easyroommate, says, ’Since the beginning of the year we have seen a steady decline in the number of properties accepting housing benefit tenants, despite the number of properties on the website increasing.'

Posted by property addict @ 02:08 PM 0 Comments

Another gaffe from our highly paid elite

BBC: Bank of Scotland fined £4.2m over Halifax mortgage errors

"Bank of Scotland has been fined £4.2m for failing to keep accurate records of the mortgage payments of 250,000 Halifax customers".

Posted by alan @ 12:28 PM 1 Comments

More misery for rental tenants as FTB's struggle to get on property ladder

Myfinances.co.uk: Rents increase to new record high of £741 per month

The cost of renting a home has risen for the sixth month in a row to a new record high of £741 a month. The new data for September released by LSL Property Services reveals a further 1.1 per cent increase in the cost of renting in England and Wales.

Posted by ben @ 12:16 PM 0 Comments

Couples trapped in house shares can’t start a family

Planet Property: Couples trapped in house shares can’t start a family

44% of couples who have no choice but to live in flat or houseshares say the predicament is affecting their aspirations to settle down and start a family.

Posted by the planet @ 10:01 AM 3 Comments

California ahead of the curve

Dr Housing Bubble: Are we seeing an echo housing bubble in California

Flagged up on the Keiser Report: Southern California home prices are up a solid 12.5% year-over-year. With incomes being stagnant you need to ask where this jump in price is coming from. Two main places: (1) Low inventory selection (also decline of distressed inventory as percent of sales); (2) Incredibly low interest rates. Does it make economic sense? Of course not and most of this is behaviorally driven but this is part of living in an area prone to boom and bust.

Posted by greenmind @ 09:54 AM 3 Comments

The beginning of the end of the madness? Very tough times ahead....

Mail: The cheapest mortgage in Britain: Tesco starts price war with 1.99% rate (but you do need a 40% deposit!)

''The deal would leave a typical borrower with a £150,000 mortgage £2,300 a year better off than the average two-year fixed rate of 4.44 per cent. The Tesco Bank deal is fixed for two years and requires a 40 per cent deposit and carries a fee of £995. Britain’s cheapest mortgage will be launched today by Tesco at a rate of just 1.99 per cent. The deal would leave a typical borrower with a £150,000 mortgage £2,300 a year better off than the average two-year fixed rate of 4.44 per cent. Peter Gettins, of broker London & Country, said: ‘If you are looking for a mortgage this is an absolute cracker. Taking it out is a no-brainer. Hopefully, other lenders will try to match it.’"

Posted by hpwatcher @ 08:42 AM 11 Comments

Easing or squeezing?

Guardian: Is funding-for-lending meant to help the well-heeled get a cheaper loan?

Tesco would like to thank HM Government and the Bank of England. Their funding-for-lending scheme, says the supermarket, has allowed it to "break the 2% barrier" on mortgages. Specifically, if you want to borrow 60% or less of the mortgage valuation of your house, Tesco's rates start at 1.99% fixed for two years.

Posted by dill @ 07:08 AM 0 Comments

Thursday, October 18, 2012

"MPs build up property nest eggs at the taxpayer's expense"

Sky News: MP Expenses: Attempt To Block New Rent Details

The House of Commons Speaker is trying to block the publication of details of MPs' expenses which could show if they are renting their taxpayer-funded homes to each other. John Bercow has written to the regulator urging it not to release documents revealing the identities of MPs' landlords for security reasons. Disclosure would expose the extent to which MPs are taking advantage of a "loophole" which allows them to rent properties to each other.

Posted by jack c @ 09:26 PM 7 Comments

Mortgage boom lifts US banks

MoneyWeek: Mortgage boom lifts US banks

American banks report better than expected third quarter earnings following the Federal Reserve's intervention in the housing market.

Posted by martingreen @ 03:46 PM 12 Comments

CML: Less lending.

AboutProperty: Mortgage lending down in September say CML

Gross mortgage lending fell by 10 per cent in September, according to Council of Mortgage Lenders estimates.

Posted by phil @ 10:46 AM 0 Comments

RBS economist proposes brilliant new way to spend tax-payers money

Planet Property: RBS economist proposes brilliant new way to spend tax-payers money

The UK government should set up a body to buy up the properties of homeowners struggling to pay their mortgages, says an RBS economist ... stop sniggering back there, he's serious ....

Posted by the planet @ 10:10 AM 0 Comments

Abandoned church, pumphouse and even a pub head list of our 10 most threatened Victorian and Edwardi

Dailymail: These would make great apartments

ome of Britain's most iconic Victorian and Edwardian structures are under threat of falling into a state of severe disrepair, a public survey has revealed. The Victorian Society has published a list of the 10 most threatened buildings after calling on the public to highlight cases at-risk heritage buildings in England and Wales. Among the threatened structures are an ivy-shrouded cemetery chapel, a London street scheme and a reservoir 'spillway' resembling an immense staircase.

Posted by mark @ 09:37 AM 0 Comments

Ok, which one of you jokers was it?

BBC News: US Federal Reserve 'bomb plot' foiled by FBI

US officials have arrested a man for plotting to detonate what he thought was a massive bomb in front of the Federal Reserve building in New York. Quazi Mohammad Rezwanul Ahsan Nafis, 21, of Bangladesh, travelled to the US with the intent of planning a terrorist attack, the FBI said. Mr Nafis had entered the US on a student visa by purporting to be a college student in Missouri. In a statement intended to claim responsibility for the would-be attack, he allegedly said he believed the most efficient way of destroying America was to target the US economy.

Posted by drewster @ 12:23 AM 5 Comments

Wednesday, October 17, 2012

Plankton

Guardian: A warning to investors: the era of buy-to-let is over

Investors must use cash assets, avoid gearing and only pay a fair price for property to avoid an all out market crash

Posted by happy mondays @ 10:33 PM 0 Comments

It only hurts when I laugh

Telegraph: Banks should be thanked for helping struggling homeowners

Andrew Bailey, chief executive designate of the Prudential Regulation Authority, said lenders use of "forebearance" to allow individuals and businesses in financial difficulty to continue servicing their debts meant they deserved the publics' thanks.

Posted by dill @ 02:17 PM 4 Comments

House takes spooky kitsch to new level

Planet Property: House takes spooky kitsch to new level

We thought we’d seen it all … then we saw this…

Posted by the planet @ 01:22 PM 0 Comments

Crossrail predicted to boost property values by up to 25%

Planet Property: Crossrail predicted to boost property values by up to 25%

According to new report property in central London locations will see value increase by 25% while homes in the suburbs will rise by 20% (above baseline).

Posted by the planet @ 01:21 PM 0 Comments

Employment data

ONS: Labour Market Statistics October 2012 (pdf)

Between June to August 2007 and June to August 2012: • the number of people in full-time employment fell by 355,000 • the number of people in part-time employment increased by 724,000 • the number of unemployed people increased by 883,000 • the number of economically inactive people, aged from 16 to 64, fell by 112,000 [PS Household population aged 16+ increased by 1.853 million seasonally adjusted over the period] [PPS The number of people in employment has not been higher since comparable records began in 1971, but the employment rate of 71.3 per cent, for those aged from 16 to 64, is lower than the pre-recession peak of 73.0 per cent recorded for March to May 2008.]

Posted by dill @ 12:26 PM 0 Comments

How likely is a house sale to fall through?

Planet Property: How likely is a house sale to fall through?

You might be surprised by the numbers ....

Posted by the planet @ 09:56 AM 0 Comments

The land of false markets

Telegraph: Britain will feel the pain when the QE bubble finally bursts

Money creation on a massive scale has become the new normal, the only way the economy can cope, and a convenient crutch for a chancellor whose grip over the public finances remains frighteningly fragile.

Posted by dill @ 07:22 AM 25 Comments

Tuesday, October 16, 2012

Steve Keen debunks Neo-classical economics and explains how runaway bank lending led to the housing

2012 American Monetary Institute Conference: Steve Keen 2012 American Monetary Institute Conference

I first heard about Steve Keen when he appeared on a BBC Radio 4 Analysis program live debate about Keynsian vs Austrian economics a while back. Not sure if he's been mentioned on here before.. He's a well respected economist who uses basic evidence and date to show that Neo-classical economics (ie the prevailing mainstream) is completely flawed as it doesn't include the fact that private banks create money through double entry accounting in it's models. That's why the current situation can't be explained or predicted or solved by mainstream economists which is a bit worrying. Good thing is that he believes a houseprice correction is inevitable. He shows the graph of mortgage lending to house prices at the very end (50min mark). Be very interested to here peoples thoughts on this guy.

Posted by peppersauce @ 08:08 PM 9 Comments

Downton Abbey... or two metres of Westminster?

AboutProperty: One square metre of property... for £7,586.

Buying one square metre in Westminster would set you back a huge £7,586, the same price as a car or dream holiday. For the price of two square metres of Westminster real estate you could afford to rent out Downton Abbey (Highclere Castle) for a wedding.

Posted by phil @ 03:53 PM 0 Comments

The only thing growing in Britain is hunger

Guardian: Number of UK poor receiving emergency food aid doubles

Figures from Trussell Trust, which operates food banks, show 110,000 were referred for help between April and September.

Posted by dill @ 03:23 PM 5 Comments

UK house prices up 1.8% year-on-year

Myfinances.co.uk: ONS reports muted growth in UK house prices

The Office for National Statistics says that in the 12 months to August 2012, house prices in the UK have risen by 1.8 per cent. This is down from 2.0 per cent for the 12 months to July 2012.

Posted by ben @ 03:02 PM 0 Comments

Latest

ONS: House Price Index August 2012 (pdf)

In the 12 months to August 2012 UK house prices increased by 1.8 per cent, down from a 2.0 per cent increase in the 12 months to July.

Posted by dill @ 01:07 PM 1 Comments

Things we have enough land for

BBC: Cold War missile sites get listed status

Two Cold War nuclear missile sites are to get listed status. The two sites still have concrete launch pads and blast walls, along with mounting bolts for the platforms that would raise the missiles into a vertical firing position. - - OK in reality we have enough land to spare to preserve this concrete and build lots of houses, but lets just say we could only do one... Should we build house on MOD land and take photos of the concrete structures for posterity, or keep bunkers so that 4 visitors a year can see them?

Posted by ontheotherhand @ 12:07 PM 0 Comments

Inflation is now officially 2.2%

Sky: Economy: Inflation Nears Three Year Low

"The headline rate of inflation has eased to a near three year low of 2.2% in a welcome development for household budgets but not for people claiming benefits or the state pension. As inflation falls further there are warnings that living costs are set to rise again in a fresh headache for the Bank of England". (Yes, just got my new price rise from BT).

Posted by alan @ 11:22 AM 8 Comments

Well, that's convenient

BBC News: Inflation slowdown hits benefits

The inflation rate in the UK has fallen to its lowest level in 3 years. The Consumer Prices Index (CPI) measure of inflation stood at 2.2%, down from 2.5% in August. The CPI level in September is usually used to work out the rise in a range of benefits from Jobseeker's Allowance to income support.

Posted by little professor @ 11:21 AM 1 Comments

Big drop for Northern Ireland.

HomePurchaser: Office for National Statistics: House price growth contracts

Generally the picture is one of relative stability, with just a slight recalculation of yearly growth figures from two per cent to 1.8 per cent. The two exceptions to this are London, as the capital continues to act independently of the national picture, and Northern Ireland. Prices continued to plummet, reaching a year-on-year decline of 12.8 per cent.

Posted by phil @ 11:14 AM 2 Comments

Petition

Spectator: Vince Cable continues public campaign for a mansion tax

Perhaps Vince Cable wasn’t listening to the bit in George Osborne’s speech at the Tory conference last week where the Chancellor ruled out a mansion tax. The Business Secretary has just sent an email out promoting the idea and calling for signatures on a petition for ‘fairer tax’.

Posted by dill @ 10:19 AM 3 Comments

Nominal house price target

Bloomberg: U.K. Should Buy Homes to Stimulate Economic Growth, RBS Says

RBS suggests that the government directly buys housing, targetting those in negative equity. So if you owe more money on your house than the house is worth, the government would pay you an amount over the market value, enough over to cover your losses and then some. This profit would then be a considerable boost to UK consumption. No really that is the suggestion. Who would have thought the solution was so obvious ! They are admittedly a bit sparse on details where the funding would come from, council becomes BTL etc, probably diverting funds from additional housing would be best.

Posted by stillthinking @ 04:18 AM 6 Comments

Monday, October 15, 2012

Emmmmm Not Good! Any thoughts?

Moneyweek: Urgent! Protect yourself now from the mad experiments of central bankers

The idea is that the Bank of England (or the Federal Reserve) would just cancel all the government bonds they’ve bought already. So the government wouldn’t owe the money anymore.

Posted by happy mondays @ 02:40 PM 8 Comments

Property market revival predicted to begin in spring

Myfinances.co.uk: Item Club: UK economy set to grow as consumers spend more

A new report by Ernst & Young’s Item Club forecasts that the UK economy will return to growth in the second half of this year helped by a revival on the high street due to higher consumer spending.

Posted by ben @ 09:51 AM 5 Comments

Largest jump in asking prices for 8 months

Myfinances.co.uk: Rightmove urges property sellers to price homes realistically

Signs that the UK property market is undergoing a revival are revealed by the latest Rightmove house price index that shows sellers have increased asking prices by 3.5 per cent in October, the largest monthly increase seen for eight months.

Posted by ben @ 09:45 AM 5 Comments

Mobile Home Sites Under Scrutiny

BBC News: Mobile home residents 'out of pocket', says a watchdog

Residents of mobile home sites suffer unscrupulous, intimidating or even criminal behaviour from site owners and operators, a watchdog report claims.

Posted by jail them all @ 08:52 AM 0 Comments

Autumn bounce?

Daily Mail: Asking price for a home leaps by more than £8,000 in biggest jump for eight months

''House sellers hiked their asking prices by more than £8,000 in October in the biggest jump seen in eight months, Rightmove said today. The typical property asking price rose by 3.5 per cent month-on-month to £243,168, as all regions across England and Wales saw prices increase. The property search website said the autumn rebound showed 'evidence of some life in the market', although it suggested the upturn is most likely to be due to a lack of properties for sale, meaning would-be buyers have less choice.''

Posted by hpwatcher @ 06:01 AM 7 Comments

Sunday, October 14, 2012

More economic analysis, but still no plan or a leader

Telegraph: Euroland's debt strategy is an economic and moral disgrace

"The International Monetary Fund has demolished the intellectual foundations of Europe's debt crisis strategy" (Ooops, riots ahead, methinks). On drastic fiscal tightening..."Greek GDP contracted by 4.5pc in 2010, 6.9pc in 2011, and is expected to shrink a further 6pc this year, and 4pc next year. If the Troika were a doctor, it would face manslaughter charges". It gets worse....

Posted by alan @ 08:44 PM 0 Comments

QE & a slow death

Property crumble: Will house prices in 2013 be maintained by central bank easing?

Mohamed El-Erian writing in the FT said that the Fed and other central banks’ action to print money is maintaining an asset bubble. And yes, that includes property prices and this concept needs to feed into any forecast of property and house prices for 2013 and beyond.

Posted by happy mondays @ 03:12 PM 13 Comments

London renting levels are now 87.8% more expensive than the rest of the UK

London Loves Business: London rent soars to almost double rest of UK

The September HomeLet Rental Index shows renting a home in Greater London is 6.3% higher than the same time last year, and now stands at £1,273 a month – which is another all-time high cost for tenants living in the region.

Posted by sandra @ 01:44 PM 0 Comments

Teh recovereh is here

Express: PROPERTY PRICES ‘TO RISE BY 4.4%’

HOUSE prices will rise by 4.4 per cent next year, according to an influential City organisation. In a report out tomorrow, the Ernst & Young ITEM Club predicts that the property market will finally recover, after plunging 19 per cent in value since its peak in 2007.

Posted by little professor @ 12:13 PM 9 Comments

Yes of course.

Observer: Lord Turner "banks should have had more"

Adair thinks that bankers marginal propensity to consume is greater than poor people and they deserve a Keynesian stimulus.

Posted by chrisch @ 11:33 AM 1 Comments

Irresponsible mess makers want a bailout

Independent: Escape routes for pensioners caught in a mortgage trap

We all recognise the plight of the first-time buyer trying to get their foot on the housing ladder but increasingly, pensioners face just as serious a battle simply to stay put. More than 100,000 homeowners aged over 65 are on interest-only mortgages and face losing their home as they have no way to repay at the end of the term. With rapidly dwindling options experts are warning that Britain faces a mature mortgage crisis.

Posted by dill @ 10:33 AM 1 Comments

The reality of the zoo keepers

Reuters: FSA's Turner plays down writing off QE gilts

The reality of the search for the next BoE is that really it's a search for an identical Mervyn. Nobody who supports sound money need apply. This guy is already making clear the goodies he would be prepared to offer a supportive government. It's thje same with the IMF, supposedly a rescue function for overspending governments, the mantra of fiscal reponsibility. In fact not and unlikely every to be, Lagarde is originally a labour rights lawyer from France.

Posted by stillthinking @ 04:36 AM 1 Comments

Saturday, October 13, 2012

Christine says (and other economic gobbledegook)

Guardian: George Osborne's austerity is costing UK £76bn, says IMF

"George Osborne's drastic deficit-cutting programme will have sucked £76bn more out of the economy than he expected by 2015, according to estimates from the International Monetary Fund of the price of austerity. Christine Lagarde, the IMF's managing director, last week caused consternation among governments that have embarked on controversial spending cuts by arguing that the impact on economic growth may be greater than previously thought (playing with numbers...but to what political agenda?).

Posted by alan @ 09:15 PM 0 Comments

Gap Between Rich And Poor

The Independent: What's Killing Our Economy? Money

I subscribe to George Orwell’s view that “On the whole human beings want to be good, but not too good, and not quite all the time.” But if man is “mostly good”, I ask myself, why is it so easy to look around at the world and find so much to be troubled by? Wars, waste, famine in one part of the world, obesity in another, excess consumption, a financial system that’s out of control – and so on. My particular bête noire is the unequal distribution of wealth ...

Posted by frizzers @ 02:47 PM 4 Comments

Be home by 10.30 or I'll smack you!

BBC: 1.6m people aged 20-40 'living with parents'

"More than 1.6 million people aged between 20 and 40 are still living with their parents, a report suggests. More than 5,000 people were surveyed by YouGov for housing charity Shelter. Campbell Robb, chief executive of Shelter, said: "These figures paint a vivid picture of 20- and 30-somethings in arrested development."

Posted by alan @ 01:03 PM 7 Comments

100,000 homes

Telegraph: Ed Balls's housing plan could win Labour the election

"the UK debt is so big there is no point paying a small amount in..." . First,nobody mentions that this 4bn comes from people using phones. Its a tax levied on UK telecoms payable by the taxpayer. Its not a windfall. Its a deliberate tax in the same way as the railway auction, not a windfall, comes from ticket prices. One of the comments points out 40K is required for council payments in red tape per house, before breaking ground, so his figures are additionally wrong. My view is that immigration benefits New Labour electorally so much they will not be able to resist once in power, which will blow away any meaningless pie in the sky scheme. If they really want housing relax planning as everybody knows.

Posted by stillthinking @ 05:26 AM 4 Comments

Friday, October 12, 2012

Surprise, Surprise

Telegraph: RBS branch sale to Santander collapses

Santander gets the wobbles and pulls out of RBS deal blaming technical problems, at the same time Steve Pateman, finance director of Santander UK said withdrawing from the deal would free up more than £2bn in spare capital that had been set aside for the transaction.

Posted by enuii @ 09:25 PM 2 Comments

Water pistol

AboutProperty: CML: House purchase lending up but weak remortgaging figures

David Whittaker, managing director of Mortgages for Business, said: "It’s encouraging to see a rise in first time buyer numbers, this section of the market is the lifeblood of the property sector and a boost is welcome. "We shouldn’t get ahead of ourselves though. This rise is like bringing a water pistol to a gun fight, it might look the part but it’s not going to save the day.

Posted by phil @ 11:30 AM 0 Comments

Home-Owner-Ist drivel from the usual suspects

Spectator: Why George Osborne had to kill the mansion tax

"The fundamental problem is that people with significant assets don’t necessarily have significant incomes. Particularly later in their life, plenty of people have built up valuable properties over time but don’t make that much money each year. You pay taxes out of your cash income, not your net wealth." Oh! The Poor Widow Bogey! How supremely original! Let's base our entire tax system on the narrow interests of a few thousand pensioners in the South East shall we? I'm sure the other 61 million of us will be able to construct the entire basis of our economy and tax system to pander to their interests.

Posted by mark wadsworth @ 11:06 AM 17 Comments

Households take in more lodgers to help with mortgage payments

Myfinances.co.uk: Lodger numbers double in 2012 as households struggle with bills

New research from LV= details one of the side-effects of the recession, the dramatic increase in the number of people taking in lodgers to supplement their income.

Posted by ben @ 10:52 AM 0 Comments

The Olympic effect

HomePurchaser: LSL: Olympics drives transactions down

Transactions fell 24 per cent in September, as the property market felt the effects of the Olympic hangover. The LSL Property Services house price index recorded the notably high September fall, much larger than the average seasonal monthly fall of nine per cent.

Posted by phil @ 10:23 AM 0 Comments

Massive debt forgiveness

BBC News: Turner: Time for helicopter money?

Speculation mounts that the QE programme will be unmasked as what is really is - printing money. Will this help house price / earning ratios return to mean ? I can't see it.

Posted by voiceofreason @ 08:12 AM 20 Comments

Thursday, October 11, 2012

It all tots up

Telegraph: British Gas to hike prices as early as tomorrow

Gas will go up between 63-100 from tomorrow. I would not be surprised if by the time you add up food, auto-government-tax (sorry enrollment), rails, fuel and what have, if UK disposable income, never really capable of running without debt, does not take a dive next year.

Posted by stillthinking @ 04:10 PM 6 Comments

One in three private rented homes not ‘decent' to live in

Planet Property: One in three private rented homes not ‘decent' to live in

According to government figures, 1.4 million private rented homes (37%) do not meet the basic standard of being a ‘decent home'.

Posted by the planet @ 10:29 AM 0 Comments

An Englishman's home is his prison

ITV News: ITV Tonight: The Property Trap

Britain's housing market is facing a "perfect storm" with potential buyers and sellers left in limbo and property prices flat lining, ITV’s Tonight programme has been told.

Posted by dill @ 08:49 AM 13 Comments

Wednesday, October 10, 2012

No mortgage cash for you sonny boy!

Bloomberg: IMF Sees European Banks Facing $4.5 Trillion Sell-Off

"The IMF said European banks may need to sell as much as $4.5 trillion in assets through 2013 if policy makers fall short of pledges to stem the fiscal crisis, up 18 percent from its April estimate. Failure to implement fiscal tightening or set up a single supervisory system in the timing agreed could force 58 European Union banks from UniCredit to Deutsche Bank to shrink assets, the IMF wrote in its Global Financial Stability Report released today. That would hurt credit and crimp growth by 4 percentage points next year in PIIGS & Cyprus". "So far, the IMF estimates that deleveraging among sample banks has reached more than $600 billion in the year through June".

Posted by alan @ 07:39 PM 5 Comments

HSBC responds to Tesco Bank move into mortgage market

Myfinances.co.uk: HSBC slashes the cost of its fixed rate mortgage range

HSBC has announced further cuts to interest rates attached to many of its fixed rate mortgages. The move seems to be in response to the announcement from Tesco Bank yesterday that it was launching two new fixed rate mortgages.

Posted by ben @ 12:19 PM 1 Comments

Sharks circling

AboutProperty: Warning over quick sale of homes

Quick sales are knocking huge amounts off the value of properties as homeowners attempt to dodge the long wait for a buyer. Confused.com is warning customers of quick sale companies that they may be being offered as little as 75 per cent of the true value of their home.

Posted by phil @ 10:34 AM 6 Comments

"With prices now plumbing levels last seen in 2004"

Market Oracle: Netherlands House Price Crash Underway; Will France Follow?

"Values have fallen 15 percent from a peak in 2008 and are back to about the same level as eight years ago, CBS said. Prices had already dropped 5.5 percent in May from a year earlier. The Dutch Central Bank forecast in March that house prices will continue to drop through 2014 because of stricter mortgage lending rules and a reduction of a homeowner tax break that spurred the lending boom. Values may fall another 5 percent next year, ING Groep NV economists said in a note Aug. 9." Back to 2004, eh? A bit like the UK then. The fact that the Netherlands is teh "most densely populated country in Europe" doesn't seem to be helping them either.

Posted by mark wadsworth @ 10:26 AM 13 Comments

UK needs to face up to limits of monetary policy

Myfinances.co.uk: Governor King suggests an end to inflation targeting

Sir Mervyn King, the Governor of the Bank of England has suggested in a speech that the central bank could drop inflation targeting from being the central focus of monetary policy.

Posted by ben @ 09:47 AM 2 Comments

Printing money sucks

Mail: Annuity rates ‘have gone into freefall’: Money-printing triggers slump - and it may get worse

Experts blame the Bank of England’s £375billion money-printing policy, called quantitative easing, which began in March 2009, for triggering the dire retirement payouts.

Posted by happy mondays @ 09:12 AM 5 Comments

Tuesday, October 9, 2012

Mervyn wriggles under accusations

Telegraph: Bank of England's Mervyn King defends low interest rates pre-crisis

"Bank policy-makers have faced questions as to whether interest rates should have been set higher during the “Great Stability” that preceded the financial crisis, in order to slow rises in house prices and other assets, and to curb the growth in lending". (NOT my fault Mervyn tells the LSE).

Posted by alan @ 10:44 PM 10 Comments

'Builders' are actually land bankers

Reuters: Analysis - Tough rules and tight credit may thwart housing hopes

This review of the UK housing market and the role that building could play in boosting the economy reveals why building houses may not help get the economy moving much: "Local authorities say they have given permission for 400,000 homes that developers have yet to build, with some sitting there waiting for prices to rise." A while back, I recall reading on the Renegade Economist site that UK builders aren't really interested in building as much as land banking. The money is in land not producing things.

Posted by quiet guy @ 07:04 PM 4 Comments

Rates from 2.64 and 3.19%

Myfinances.co.uk: Tesco Bank launch new two and five-year fixed rate mortgages

Tesco Bank has announced that it is to launch new products in its mortgage range. It will now offer two and five-year fixed rate mortgages for borrowers with a 60 per cent loan-to-value (LTV) ratio.

Posted by ben @ 05:50 PM 0 Comments

How to Own Your Own Home with Part Buy Part Rent

Driver with Van: How to Get Your First Own Home

If you want your own property but cannot afford it you should look at part rent part buy options. If you cannot buy your own home because you are refused a mortgage and the house prices are too high this is your best option to get you on those first steps of the property ladder. You may be surprised what affordable homes are in your area.

Posted by christoph goulds @ 02:14 PM 0 Comments

Housing Assistance for Keyworkers

Approved Business: Help Given to Private Sector First Home Buyers

If you or someone in your household works in the public sector you may be eligible for housing assistance as a key worker. A key worker is generally someone working for the public sector in a qualified job. They could be a policeman, solider, teacher, prison officer or an NHS nurse but generally they are not doctors, dentists or those in high paying roles.

Posted by christoph goulds @ 01:37 PM 0 Comments

Lm(ffl)ao

BBC News: UK house sales set to rise, says surveyors body Rics

The vested interests at RICS have rolled out a report that house prices will rise in the next 3 months (Crystal ball muts be broken). Confirming that sentiment in the broken market is well and truly shot.... it will be interesting how much take up there is of the goverment supported intervention in funding for lending... given that affordabilty has been the issue since 2007.

Posted by will @ 12:27 PM 7 Comments

What happens when the Bank of Mum & Dad goes bad

Bloomberg: Spain Foreclosures Spread to Once Wealthy: Mortgages

Home foreclosures in Spain, which disproportionately affected lower-income immigrants after the real estate bubble burst, are spreading to formerly well-to-do families and businessmen as they run out of ways to pay mortgages in a deepening recession. foreclosure. Loan guarantors, often parents who used their houses as collateral to help their children become homeowners when real estate was booming, now represent a fifth of foreclosures, AFES data show. Bloated prices had forced thousands of first-time homebuyers to seek parental help to get a foot on the property ladder, according to Jose Luis Ruiz Bartolome, author of “Adios Ladrillo Adios,” which means “Goodbye, Real Estate, Goodbye,” a 2010 book on the rise and fall of Spain’s property market.

Posted by fletcher @ 11:37 AM 0 Comments

Surveyors most optimistic on UK property market for two years

Myfinances.co.uk: RICS reports uplift in expectations for UK property market

The Royal Institute of Chartered Surveyors (RICS) says that the outlook for the UK property market is at its most positive for more than two years.

Posted by ben @ 09:33 AM 0 Comments

Expects a contraction of 0.4 per cent in 2012 and growth of 1.1 per cent in 2013

Myfinances.co.uk: IMF cuts forecast for UK economic growth

The International Monetary Fund (IMF) has cut its growth forecast for the UK economy for 2012. It says the UK economy will shrink by 0.4 per cent rather than grow by 0.2 per cent as it predicted just three months ago in July.

Posted by ben @ 09:11 AM 0 Comments

UK house sales predicted to rise

BBC News: UK house sales predicted to rise

Surveyors expect sales of homes in the UK to pick up in the next three months owing to support for mortgage lending.

Posted by ayahuasca @ 09:02 AM 0 Comments

Debt forgiveness ? WTF

Telegraph: Financial regulation new frontline for growth

Much of that is down to forbearance, the practice of giving struggling borrowers easier terms on a temporary basis. The Bank has estimated that as much as 8pc of UK mortgages are in forbearance, equivalent to about £100bn of debt. On commercial real estate loans, it reckons a third are in forbearance – or roughly £75bn.

Posted by happy mondays @ 08:51 AM 3 Comments

Monday, October 8, 2012

Stupid,stupid nation

ThisIsMoney: Confidence in property market grows as house prices continue to fall

Nearly two thirds of homeowners expect property prices to rise by an average of 3.4 per cent over the next six months, according to a new report.

Posted by dill @ 07:54 PM 4 Comments

Yorkshire BS cuts mortgage rates again

Myfinances.co.uk: Yorkshire BS cuts mortgage rates or 90 & 75% LTV borrowers

The Yorkshire Building Society has announced that it is to cut some mortgage rates for borrowers with small deposits.

Posted by ben @ 04:36 PM 0 Comments

How about some houses instead?

Bloomberg: Group Plans $3.2 Billion Entertainment Park

London Resort Company Holdings Ltd. said it’s planning to build a 2 billion-pound ($3.2 billion) entertainment complex on the Swanscombe Peninsula in Kent, England. Developing the 872-acre former industrial site about 23 miles southeast of London

Posted by mark @ 04:05 PM 4 Comments

Buyers' Strike gains momentum

Estate Agent Today: Viewers boycott homes they feel are overpriced

tl;dr - Would-be-buyers fed up with kite-flyers and their ridiculous asking prices.

Posted by sibley's b'stard child @ 04:04 PM 16 Comments

Buy to let is also a road to ruin?

Daily mail: Btl landlords £6 million loss

so buy to let goes wrong as well....imagine if rates had been left at 5.75%!...omg then our kids would have been able to buy and grow the economy...can't have that..imo btl is the next financial disaster...prices are falling and eventually people will buy at much lower prices with 90-100% mortgages...who then will want to rent?

Posted by taffee @ 11:54 AM 1 Comments

How the interest-only timebomb could hit the housing market

MoneyWeek: How the interest-only timebomb could hit the housing market

Mortgage lenders are increasingly keen to purge their books of 'interest-only' customers. That could hit Britain's fragile housing market hard, says John Stepek – here's what that means for you.

Posted by martingreen @ 11:45 AM 2 Comments

Smaller homes = smaller bills

Cash Compass: Homeowners 'downsizing to save money'

Homeowners across the UK are planning on downsizing in order to save money and raise funds for retirement.

Posted by keithhodges @ 10:54 AM 0 Comments

This cheered me up no end

Metro: Two thirds back Mansion Tax on £1m homes

"Although such a levy has been ruled out by both David Cameron and chancellor George Osborne, their Liberal Democrat partners are all for it – as are 57 per cent of those questioned in the Harris Interactive poll for Metro. The same number would support higher levels of tax on foreign-owned second homes, while 45 per cent back the idea of an increased levy on empty properties. Some 70 per cent of those polled would back fines of £100,000 for tax dodgers who own properties worth more than £1million."

Posted by mark wadsworth @ 10:47 AM 4 Comments

Whatever you do don't let the prices fall !!!

Telegraph: London has turned its back on the very people it needs most

Will anyone ever say publicly that it would be a damn good thing if London property prices fell to a level where £60K household income could buy a house eh ?

Posted by voiceofreason @ 09:01 AM 9 Comments

Politicians & VI's

Ft: Housing campaigners target Tory landlords

More than a quarter of Tory MPs are private landlords too self-interested in keeping house prices high to take steps that could help first-time buyers get a foot on the housing ladder, according to a group campaigning for affordable housing.

Posted by happy mondays @ 07:58 AM 0 Comments

Next stop London ?

ZeroHedge: Aris Luxury Apartment Prices Slide

Often said that the upper london market with the inflow of hot money is supporting the rest of the London property market, and possible the South East. With the rejection of the manion tax, maybe more of this money will come to London. Assuming labour win the next election, possibly with the lim dem as partners, could be the ideal mix to implement these policies here. Hopefully we will be able to watch the slow implosion of France and draw some conclusions.

Posted by nod2glod @ 04:46 AM 1 Comments

Sunday, October 7, 2012

Rocks and hard places

ThisIsMoney: A near-impossible balancing act for the housing market

Analysts at investment bank Morgan Stanley have warned that plans being mooted by the Treasury and regulators to increase the amount of capital that banks must set aside to cover their mortgage lending risks could deal another blow to the ailing housing market.

Posted by dill @ 12:45 PM 9 Comments

Party of the landowners looks after the landowners

Daily Mail: My tax gift to Middle England: Osborne pledges NO mansion tax, NO wealth tax and FREEZE on council tax

"Chancellor George Osborne announced the tax breaks in an exclusive interview with the Mail on Sunday. Wealth and mansion taxes ruled out, council tax frozen and rail fares capped in package worth £500 million. He said demands for a wealth tax were ‘the politics of resentment’" Of course, the Tories have continued Labour's splendid policy of having a stealth wealth tax on cash savings, it's called negative real interest rates, which is much the same as a couple of per cent wealth tax every year. But that's a Home-Owner-Ist wealth tax which transfers wealth from savers to landowners and especially leveraged land price speculators, so that's OK.

Posted by mark wadsworth @ 12:29 PM 6 Comments

Party of the rich look after the rich

Independent: Cameron rules out mansion tax

Tax mansions? Oh my goodness no. Squeeze the middle a bit more Gideon old boy.

Posted by chrisch @ 09:59 AM 5 Comments

UK Financial Management

MyFinances: Will interest-only mortgages become the next mis-selling scandal?

But needless to say, for those who realised that there was no capital repayment vehicle in place and didn't grasp the loan, there will be "nada". Can the UK even do this? How can an out of control bankrupt UK state even consider handouts for interest only, the tab would be staggering.

Posted by stillthinking @ 05:07 AM 2 Comments

Britain Golden Age of Engineering?

BBC News: Is Britain experiencing a golden age of engineering?

Evan Davis has been climbing bridges and tunnelling underground investigating Britain's creaking infrastructure and offers a personal view on why we may be about to embark on a new age of epic engineering projects.

Posted by jail them all @ 03:59 AM 0 Comments

Saturday, October 6, 2012

More wee for me?

Scotsman: Owners look to downsize

But who will buy the big ones?

Posted by chrisch @ 04:33 PM 1 Comments

Interesting viewing

Micro-market malaise

York Press: Surprise at ‘falling house prices’ claims

HOUSING market experts in York say they are baffled by new figures which put the city as the fourth worst in the UK for tumbling property prices. [...with a notable quote from the article, "At the beginning of the year people would look anyway and make a bid, now unless the price is right people will simply not make the effort to view.”]

Posted by dill @ 11:17 AM 3 Comments

Friday, October 5, 2012

Foreign Bankers set to rape and pillage Portugals rental sector

Las Vegas Sun: Portugal scraps rent controls, alarms low-earners

The change in rent laws was one of the steps demanded by Foreign Bankers in return for the 'financial lifeline' they provided. They identified rent controls as one of the handicaps keeping Portugal mired in stagnation. They want to free up rental accommodation, making it easier for workers move around the country, help people avoid racking up mortgage debt, put prime real estate to more productive uses; encourage owners to renovate buildings and provide work for hard-up construction companies. However, rent controls have long enabled those on a low income to live cheaply in one of western Europe's poorest countries and with the minimum wage at 485 euros and the average wage at 800 euros many now fear for the roofs over their heads.

Posted by enuii @ 06:26 PM 6 Comments

Where were you on the night Taylor Wimpey pushed this puff piece?

Family Investments: Family Friendly Hotspots Report 2012

It would appear that the top place to raise a family this year is Wokingham, with plenty of unsold Taylor Wimpey housing stock. A quick check of a few others reveals loads of other unsold stock either in those places or nearby. Also it claims somewhere near me is a good place to raise a family (with lots of unsold for the last 3 years Taylor Wimpey homes) and knowing it well I can confirm it is actually a sh1t place to live from the age of 12 onwards. Liars.

Posted by general congreve @ 06:22 PM 3 Comments

The £12m council flat

Daily Mail: Pop star Duffy forced to flee blaze at her £12m London penthouse

The penthouse sits atop a 1960s block in upmarket Kensington. The rented apartment has its own swimming pool, cinema, and two outdoor terraces. But it's still a flipping council block. Insurance job possibly?

Posted by drewster @ 06:02 PM 0 Comments

House Price Crash Postponed until the Blackout

Telegraph: Millions of British households face blackout, warns Ofgem

Ed Davey the new 'Energy Secretary' stated “That is why the Government is reforming the electricity market to deliver secure, clean and affordable electricity.” Unfortunately it looks increasingly likely that he cannot tick any of those boxes any time soon. The government was warned over 10 years ago and did nothing as it waited for private sector investment.

Posted by enuii @ 05:27 PM 5 Comments

Will the tax system be reformed so that there's no free lunch for landowners?

Torygraph: Will ‘mansion tax’ do to house prices what Gordon Brown did to pensions?

Interesting how Mr Cowie acknowledges that house prices are higher where the government provides good services (http://blogs.telegraph.co.uk/finance/ianmcowie/100019874/how-i-made-a-profit-out-of-paying-public-school-fees/) but balks at the idea of those enjoying such free money (in some cases up to £100k (http://cashcompass.co.uk/financial-planning/2012/09/10/top-schools-cost-34-000)) having to pay. No problem with a family having to pay massive tax on earned income, then hand over an extra £100k to get their kids into a good state school. Ditto Tube Stations, parks, etc.

Posted by mombers @ 01:22 PM 3 Comments

Duck! Here comes the hyperinflation.

Atimes: Hyperinflation stalks Iran while Israel wavers

The collapse of Iran's currency, coupled with rising discontent of workers inside the country, is by far the biggest recent news in that respect. In the last few days, the rial lost 30% to 50% of its street value - 15% on Monday alone - sparking riots and clashes between police and protestors in Tehran Wednesday. Over the past year, the Iranian currency has depreciated by about two-thirds, severely affecting imports and financial stability in the country. People are starting to lose faith in Fiat currencies, is there a possibility that this could spread rapidly?

Posted by khards @ 11:19 AM 8 Comments

A good deed?

Thrifty Finance: Santander study shows benefits of financial education

Providing financial education could result in social housing tenants becoming £36 million better off each week, new findings suggest.

Posted by keithhodges @ 11:16 AM 0 Comments

The bank of mum and dad is back!

What Is Money: Mum and dad 'funding home improvements'

The new generation of homeowners are calling on parents to carry out home improvements as they struggle to get to grips with DIY, according to research released today.

Posted by keithhodges @ 11:15 AM 0 Comments

Nationwide to scrap interest-only loans

City AM: Nationwide to scrap interest-only loans

ONE of the UK’s biggest mortgage lenders yesterday said it would withdraw interest-only mortgages to future homeowners from next week, in a further sign of the squeeze on higher risk lending. Nationwide Building Society, the third biggest mortgage lender in the country, wrote to brokers yesterday saying it would stop offering the mortgage on 11 October with final applications available to borrowers until 5pm on 10 October. The announcement is a blow to hopes that mortgage lending would jump sharply on the back of the government’s new Funding for Lending Scheme, which aims to encourage banks to offer more loans at lower rates. The scheme offers banks and building societies cheap finance if they increase lending to businesses or households.

Posted by warren g @ 09:22 AM 0 Comments

Outside prime London, house prices are falling back to earth

City AM: Outside prime London, house prices are falling back to earth

The average home in Britain sold for £163,910 in the third quarter, according to Nationwide. That is 11 per cent below the all time high reached at the height of the boom, when the average home was changing hands for £184,131 in the third quarter of 2007. But these figures are in nominal terms. Since then, inflation has substantially eroded the purchasing power of the pound. The inflation-adjusted figures reveal that the peak to trough real terms decline has now reached around 24.2 per cent. Average house prices are back in real terms to levels last seen in the first quarter of 2003. In other words, all of the gains incurred over the past nine years have been completely wiped out. For most people in Britain, housing has been a poor investment over the past decade.

Posted by warren g @ 09:21 AM 0 Comments

Thursday, October 4, 2012

Average house prices fell by 0.4% last month

London Loves Business: House prices tumble in September

House prices continued to fall for the third month in a row, according to mortgage lenders Halifax.

Posted by sandra @ 10:16 PM 0 Comments

Tracker deals have been rising in the last two years

Myfinances.co.uk: The top ten tracker mortgage deals for all borrowers

A tracker mortgage is one that is linked to the Bank of England base rate, either for a fixed term or for the whole period of the mortgage. The advantages of a tracker are obvious, especially while base rate is as low as it is, at a record low of 0.50 per cent.

Posted by ben @ 07:26 PM 0 Comments

Capital conscious

Guardian: Nationwide abolishes interest-only mortgage deals

Nationwide building society has announced it will no longer sell mortgages on an interest-only basis. The rule change, which will come into effect on 11 October, is the latest move by lenders to make sure borrowers are not taking on loans they cannot afford to repay.

Posted by dill @ 04:47 PM 8 Comments

Don't hold your breath for an analysis

Politicians of all persuasions need to learn one simple lesson on housing

This is money: TERRY SMITH: Why don't politicians get it? House prices need to fall

Nick Clegg's idea to allow parents to lend part of their lump sum from pension entitlements to their children to buy property is downright dangerous, says Terry Smith

Posted by alex @ 12:38 PM 6 Comments

MPC keeps thing as they are

Myfinances.co.uk: Bank decides QE to remain at £375b and base rate at 0.50%

The Bank of England’s Monetary Policy Committee (MPC) has voted to keep base rate at 0.50 per cent for the 44th consecutive month and to keep its programme of quantitative easing at £375 billion.

Posted by ben @ 12:03 PM 0 Comments

House prices down 0.4% in September

Myfinances.co.uk: Halifax reports third consecutive monthly fall in house prices

Halifax reports that house prices fell by 0.4 per cent in September, the third consecutive fall, continuing the trend of declining house prices shown by separate reports from Hometrack and Nationwide this week.

Posted by ben @ 10:13 AM 0 Comments

September 2012 (seasonally adjusted) trending down

LBG: Halifax House Price Index (pdf)

Annual change -1.2% Quarterly change -0.5% Monthly change -0.4% Average Price £159,486

Posted by dill @ 08:24 AM 24 Comments

Wednesday, October 3, 2012

QE set to stay at £375b and base rate at 0.50%

Myfinances.co.uk: Bank of England to sit tight on QE and base rate

The Bank of England is expected to sit tight when its Monetary Policy Committee (MPC ) concludes its October rate-setting meeting tomorrow morning. The quantitative easing (QE) programme is expected to remain at £375 billion and base rate will remain at 0.50 per cent for a 44th consecutive month.

Posted by ben @ 08:01 PM 0 Comments

Do they?

Alas, the government are not following this example

Telegraph: Households pay off £9.8bn of mortgage debt

"Households injected £9.8bn into their properties in the three months to June as borrowers persisted with efforts to repay their debts". "Bank of England figures showed that there was the net housing equity injection for a seventeenth quarter in a row, with the sums creeping back up to the record high of £10.2bn in spring 2011. Since the second quarter of 2008, households have repaid a total £133bn of mortgage debt".

Posted by alan @ 06:35 PM 2 Comments

That's gotta hurt!

Mail: Interest-only mortgage borrowers forced on to more expensive repayment plans

Banks have begun to force struggling interest-only mortgage borrowers into expensive home loan repayment plans.

Posted by happy mondays @ 05:18 PM 1 Comments

Rental properties used as cannabis farms: Damage costs hit £50,000

Urbanpad.co.uk: Rental properties used as cannabis farms

An increasing number of residential landlords are suffering property damage at the hands of criminals, who use their rental properties to set up cannabis factories. The damage caused by these factories is on average £15, 000, though in some cases the final bill can be as high as £50, 000 as well as the devaluation of the property.

Posted by jessbrown @ 04:13 PM 0 Comments

Housing Equity Release data shows lack of appetite for new debt

Myfinances.co.uk: Bank of England data shows UK households pay down mortgage debt

The trend of homeowners repaying existing debt rather than taking out new loans continued in the last three months.

Posted by ben @ 01:31 PM 0 Comments

Trade deficit is very serious

BDaily Business Network: Government can’t get complacent on trade gap

The UK trade deficit is very serious but practically ignored. " A solution that is staring the Government in the face is to use unemployed people to make some of the things we currently import" DOH! Elsewhere you may read that the end game to balanced trade at the current level of UK imports is a natural rate of unemployment at 8% to stop external purchasing. Perversely, immigration, by increasing unavoidably food and later on oil imports, has the consequence of increasing the natural rate of unemployment in the UK.

Posted by stillthinking @ 11:52 AM 0 Comments

Interesting looking at the LTV 75% max

Mortgages: House prices suffer further fall in September

However, he explained an improving UK economy helped by the Olympics should help the housing market over the year to come and that should mean "a gradual recovery over the next 12 months with house prices remaining relatively flat or declining only modestly over the same period".

Posted by happy mondays @ 11:24 AM 1 Comments

Falls everywhere but you wouldnt get that from the title.

Daily Mail: Nationwide collapse on house prices leads to widest North-South divide ever at £100,000

A nationwide collapse in house prices has led to the widest ‘North-South’ divide since records began, research revealed yesterday. Prices have fallen in every region since the peak in 2007, with property values in Northern Ireland crashing by 53 per cent. But falls in the North have been far greater than in the South.

Posted by rubadubdub @ 10:17 AM 0 Comments

Santander SVR mortgages now cost an extra £312 a year

Myfinances.co.uk: Santander raises cost of SVR mortgages by 0.50%

Santander is to raise the cost of its standard variable rate (SVR) by 0.50 per cent affecting hundreds of thousands of customers.

Posted by ben @ 10:08 AM 0 Comments

Tuesday, October 2, 2012

How do you like your crisps?

Telegraph: UK hooked on debt, PIMCO boss warns

"Britain is part of a debtor nation “ring of fire” where bondholders are at risk of being “burned to a crisp”, the head of the world's biggest bond house has warned". Bill Gross, PIMCO’s founder and chief investment officer, compared the UK to a drug addict who is hooked on debt and struggling to kick the habit in his monthly investment outlook. His comments were part of a broader warning that the US would turn into Greece within a decade if the government did not find $1.6 trillion (£990bn) of savings “over the next five to 10 years”. Maybe rating services, dollar reserve holding nations and bond vigilantes may together force a resolution that ends in tears?

Posted by alan @ 10:20 PM 26 Comments

Where you can get a 20% yield on property

MoneyWeek: Where you can get a 20% yield on property

Bolstered by rising house prices and record-high rents, Birmingham is in the throes of a property revival, says Tom Bulford. And these penny shares are out to clean up.

Posted by martingreen @ 02:12 PM 2 Comments

Two-year fixed rate down to 3.29%

Myfinances.co.uk: Barclays cuts rates on fixed rate mortgages

Barclays is to launch three new fixed rate mortgage products tomorrow. Its two-year “Great Escape” mortgage product will now charge just 3.29 per cent, down from 3.49 per cent. The deal is available to borrowers with a deposit of 30 per cent.

Posted by ben @ 11:21 AM 0 Comments

Halifax new two-year mortgage comes with a £1,995 fee

Myfinances.co.uk: Halifax launches two-year fixed rate mortgage at just 2.44%

Halifax has launched a new two-year fixed rate mortgage with an interest rate of just 2.44 per cent for borrowers who have a loan-to-value (LTV) ratio of 60 per cent.

Posted by ben @ 10:38 AM 0 Comments

Will they ever find a solution?

What Is Money: Parents 'funding first time buyers'

Parents have funded almost 20% of first time buyer purchases in the last 12 months, according to figures from a leading mortgage provider.

Posted by keithhodges @ 09:57 AM 2 Comments

House prices down 0.4% and 1.4% annually

Myfinances.co.uk: House prices fall in September as regions see quarterly dip

House prices in the UK slipped by 0.4 per cent in September, according to the Nationwide Building Society. Nationwide says that the average home in the UK is now worth £163,964, 1.4 per cent less than in September 2011.

Posted by ben @ 09:44 AM 0 Comments

Everyone getting bent over a Barrel!

Mail: 1.5m families hit by mortgage rate rises: Cost of borrowing has soared to a 42-month high

David Hollingworth, from the mortgage adviser, London & Country, said: ‘No SVR is safe at the moment. There is every chance that there will be other banks and building societies which increase their rates in the next few weeks and months.

Posted by happy mondays @ 09:09 AM 0 Comments

"UK house prices slip back a little in September"

Nationwide: House Price Index (pdf)

Monthly Index (Seasonally adjusted) 325.4 Monthly Change (Seasonally adjusted) -0.4% Annual Change -1.4% Average Price (not seasonally adjusted) £163,964

Posted by dill @ 07:58 AM 5 Comments

House price as function of working age population

Mindful money: To awaken its dormant economy, Japan must confront an age-old problem

Apart from this, I sometimes read that the primary driver of all of these trends is demographic, and that Bernanke will not be able to prevent the US from slipping into a lengthy period of deflation, because he will never be able to turn around the tide of retiring non-spending baby boomers. For the UK, our demographic is not quite so bleak following immigration. Here is why Chinese won't rescue anybody http://ftalphaville.ft.com/blog/2010/08/12/314286/get-off-my-global-savings-glut-you-damn-kids/ and UK is ..I can 't find a graph form of working age for the UK. I would be interested.

Posted by stillthinking @ 05:57 AM 1 Comments

Monday, October 1, 2012

To get on the ladder, you'll have to speculate

USA Today: Bernanke strongly defends Fed rate policies

In a speech today to the Indiana Economic Club, Ben Bernanke slammed the door shut on interest rate rises by the Federal reserve for the foreseeable future and asserted that he intends to boost asset prices including property: "It [the Federal reserve] also decided to keep its benchmark short-term interest rate near zero through at least mid-2015 ... Bernanke reiterated his argument that lower rates boost growth by helping increase prices of stocks, homes and other assets. That, in turn, increases household wealth and tends to make consumers and businesses more willing to spend." I will refrain from passing judgement on this policy but if the Fed stays with ZIRP, I think it is highly likely that most developed economies will as well. This a blunt message from the Fed. Plan accordingly.

Posted by quiet guy @ 08:56 PM 4 Comments

Going down

This Is Money: Hometrack: House prices fall for the third month in a row as new buyer interest dwindles

Property prices fell for the third month in a row in September as buyer demand weakened, the number of sales agreed fell and houses took longer to sell, data has found.

Posted by wilee @ 08:10 PM 0 Comments

Spend, Spend, Spend?

BBC: Ed Balls calls for stamp duty break

Labour conference ~ Shadow chancellor Ed Balls has called for 100,000 new affordable homes and a two-year stamp duty holiday for first-time buyers to kick-start the economy. But GMB union leader Paul Kenny turned his fire on the shadow chancellor on Sunday, saying: "He would give an aspirin a headache, wouldn't he?" In a speech to delegates on Monday, Mr Kenny will say Labour must go into the next election with a leadership the public can connect with, not those "damaged or dented by past mistakes which have not been owned up to".

Posted by alan @ 04:50 PM 2 Comments

FLS fails to make immediate impact

Myfinances.co.uk: FLS fails to ignite property market as consumers pay back debt

The Bank of England’s new initiative to try and breathe some life into the UK property market has failed in the first month, according to official data. The Funding for Lending Scheme (FLS) aims to provide cheaper credit to banks and other lenders that is passed onto consumers as cheaper loans and better products for the UK mortgage market.

Posted by ben @ 04:14 PM 0 Comments

End of HPC in Greater Manchester?

Telegraph: Tooting postcode tops income list

"Meanwhile a postcode in Salford Quays in Manchester was found to have the sixth highest average household income in the UK at £63,700 due to the BBC moving much of its operations there." Could the increase of BBC staff in the Greater Manchester area start to push house prices higher?

Posted by mr g @ 11:08 AM 4 Comments

Avoid housebuilders - the rally is built on shaky foundations

MoneyWeek: Avoid housebuilders - the rally is built on shaky foundations

The share prices of Britain’s major builders have soared recently. But the housing market isn't out of the woods yet, says Phil Oakley. And this rally can't last much longer.

Posted by martingreen @ 09:47 AM 0 Comments

Death of a 1000 cut's (financial that is)

Telegraph: House prices fall for a third month in a row

"Pricing will remain under slow, downward pressure but the tightening of supply will limit the scale of price falls in the short term."

Posted by happy mondays @ 08:52 AM 9 Comments

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