November 2012 Archive

Friday, November 30, 2012

Forget ‘mortgage wars’, there’s only one way to make houses affordable

MoneyWeek: Forget ‘mortgage wars’, there’s only one way to make houses affordable

The government’s ‘funding for lending’ scheme was supposed to get banks lending, boost house prices and kickstart the economy. But it hasn’t worked. There’s only one thing that will, says John Stepek.

Posted by martingreen @ 02:43 PM 3 Comments

Wot MW sed

Estate Agent Today: Funding for Lending little help to first-time buyers

Inexorable march of homeownerism gets another shot in the arm under the guise of altruism. Number of mortgage products for lower-LTV have gone up, and rates down. Number of products for high-LTV go down, and rates up. Something about cloud seeding as well which I skipped.

Posted by sibley's b'stard child @ 02:37 PM 1 Comments

Coventry BS launch a new range of mortgages with low fees Coventry BS launch 4-year fix at 2.99%

The Coventry Building Society has launched a new four-year fixed rate mortgage at just 2.99 per cent amongst a range of new products.

Posted by ben @ 01:06 PM 0 Comments

HSBC two year fix at just 1.99% HSBC offers cheapest ever two-year fixed rate mortgage deal

HSBC is offering its lowest ever rate on a two-year fixed rate mortgage. For borrowers with a deposit of 40 per cent, the rate is just 1.99 per cent but the product comes with a fee of £1,999 or £1,499 for existing HSBC account holders.

Posted by ben @ 01:01 PM 0 Comments

Slightly lower! Hahaha

Mail: Stagnant property market sets house prices up to go nowhere in 2013, says Nationwide

Property prices were flat in November and are likely to remain this way, or edge ever slightly lower next year, according to the latest Nationwide House Price Index.

Posted by happy mondays @ 09:16 AM 8 Comments

Thursday, November 29, 2012

The predetor economy

Fred Harrison: We’re All Taken for a Ride

Fred Harrison latest missive about the lost jobs & lost opportunities created by the rentseekers and the narrative needed to defend the Housing boom

Posted by pete green @ 10:07 PM 1 Comments

Osborne needs to bleed somebody to fund the banksters

Express: OLD AGE Care to cost £75,000

"PENSIONERS could be forced to pay an incredible £75,000 for their old age care, it emerged yesterday". "Currently nursing home costs are unlimited and one in 10 adults faces a lifetime bill of more than £100,000 for their care. Each year an estimated 40,000 people are forced to sell their house to pay care homes bills which average around £700 a week".

Posted by alan @ 03:02 PM 10 Comments

It'll never happen to me..

BBC News: Why do people buy houses in places prone to flooding?

Floods have bought chaos to homes in many parts of the UK. But do house prices dramatically fall in flood areas and if not, why not?

Posted by richy richless @ 02:48 PM 10 Comments

Bear nibbles

Nationwide: November house price index

"The resilience of employment together with the ultra low level of interest rates has been instrumental in preventing a glut of unsold homes from building up on the market and exerting sustained downward pressure on house prices."

Posted by mark wadsworth @ 10:58 AM 1 Comments

Nothing is happening: Average prices have been unchanged this past month

BBC: House prices still falling slowly, says Nationwide

House prices are still falling slowly, according to the latest figures from the Nationwide building society. Its latest monthly survey says average prices have been unchanged this past month at just under £164,000, and are 1.2% lower than in November last year.

Posted by hpwatcher @ 10:26 AM 8 Comments

Consumers pay down debt in October Bank of England reports increase in mortgage approvals

Mortgage approvals increased again in October, according to the latest Bank of England lending report. The number of loans for property purchases went up to 52,982, well above the previous six-month average of 48,880. The total value of the loans increased slightly from £12 billion to £12.1 billion.

Posted by ben @ 09:14 AM 0 Comments

House prices valued at 1.2 per cent less than a year ago Nationwide reports no change in UK house prices

UK house prices remained unchanged in November, according to the latest survey from the Nationwide. House prices are 1.2 per cent below the level they were at 12 months ago, meaning the average UK house is valued at £163,853.

Posted by ben @ 09:12 AM 0 Comments

Wednesday, November 28, 2012

Selfish nimbys get told its your pension or the happiness of your kids and grand kids

BBC news & newsnight: BBC news- planning minister calls for open land development to solve housing crisis

Also on newsnight tonight as the first of a 2 parter. Nick boles the planning minister tells older nimbys they they have a choice to make, keep your ill gotten gains through rampant house price appreciation or forgoe the security of a decent home for your kids and grand kids. There was even some talk of affordability and land banking. And the lobbying of greedy time rich 63 year olds bricking it over the value if there houses reducing if new homes are built. Looking forward to part 2 tommorow night, looks like they will be drilling into the national disgrace of young normal people being priced out of normal housing. I 'heart' nick Bowles.

Posted by ajax23 @ 11:21 PM 0 Comments

Shelock Holmes of Threadneedle St reveals a dirty little non-secret

Guardian: King worried banks helping struggling customers – for the wrong reasons

Mervyn King reveals that; "Bad forbearance is where the banks don't insist on repayment not because they care about their customer but because they're worried about the implications for their own balance sheet, given the accounting conventions under which banks operate," Whilst Investors argue that one reason the share prices of the banks are lower than the value of their assets is because they are nervous about a potential wave of bad debts in the future.

Posted by enuii @ 11:11 PM 4 Comments

An early look at 2013

WSJ: Sterling Braces for a U.K. Credit Downgrade

"Worries that the U.K. could lose its triple-A credit rating next year are putting pressure on sterling, but investors are divided on how lasting the impact could be. Moody's Investors Service and Fitch Ratings have both indicated they could downgrade the U.K. if the government falls short of its efforts to curb government borrowing. Another worry is the struggling economy; the Bank of England last week cut its growth forecast for 2013, and warned that a return to the rates of growth common before the 2008 financial crisis is many years away". (maybe a minor downgrade won't halt the flow of European capital towards prime property in London?).

Posted by alan @ 11:01 PM 0 Comments

Fewer takers for cheap credit...wonder why?

Reuters: UK mortgage approvals highest since January

"Mortgage approvals hit their highest level since January last month, but there was a sharp fall in consumer lending, the Bank of England said on Wednesday, after releasing the figures a day earlier than scheduled". "..and unsecured consumer lending fell by the biggest margin since December last year, dropping by some 463 million pounds after a 1.103 billion pound increase in September. Economists had expected a 400 million pound rise".

Posted by alan @ 10:47 PM 1 Comments

Charles bean says door not closed on QE if economy needs it BOEs Bean welcomes Carney and says door open for more QE

Charles Bean, a member of the Bank of England’s Monetary Policy Committee (MPC) has said that the central bank has not ruled out adding to its £375 billion quantitative easing (QE) programme.

Posted by ben @ 06:34 PM 0 Comments

Is property as good as gold?

MoneyWeek: Is property as good as gold?

In an age where ‘real’ assets trump paper, gold has become an essential part of anyone’s portfolio. But what about property? While it may well be ‘real’, you still need to tread very carefully indeed, says Bengt Saelensminde.

Posted by martingreen @ 05:02 PM 1 Comments

Spanish Banking gets a jolt

Reuters: Bankia junior debt holders' loss at least 10 pct

After the suspension of Bankia shares today, debt holders get a shock. "Sources warn that last-minute talks could still change these figures". All a left-over from the property boom, 'cos you can't go wrong with bricks & mortar. (links may change as updates continue).

Posted by alan @ 01:25 PM 3 Comments

Cycle of economics & life

Renegade economist: The present era is not the first or last

Practically the entire world is under control of powerful money interests, whether they be Chinese, Russian, European, American or other oligarchs or trans national organizations. This has not always been the case.

Posted by happy mondays @ 12:23 PM 0 Comments

Property portal with spiritual dimension to be launched in 2013

Planet Property: Property portal with spiritual dimension to be launched in 2013

Zoopla? Pah! Rightmove … forget it. A new property portal offering a range of spiritual services is about to launch. Future Life Progression, apparently, uses relaxation to take you on an inner journey which will allow you to “fast forward through time to see where life takes you, to discover your career possibilities, your soulmate or even your future home.” That, admittedly, sounds less stressful than, err, phoning agents to arrange a viewing, though presumably you will eventually have to wreck your ying/yang balance by, y’know, cancelling the milk and moving.

Posted by the planet @ 11:01 AM 0 Comments

City job losses hit prime London rents

Planet Property: City job losses hit prime London rents

The prime central rental market in London has been hit by the downturn in financial sector employment caused by the lacklustre UK economy and the ongoing problems in the Eurozone. News that UBS is to cut up to 3,000 jobs in its London offices, combined with similar moves by Credit Suisse and Deutsche Bank, mean this trend is likely to continue, says Knight Frank.

Posted by the planet @ 09:41 AM 0 Comments

The Nimbys will never allow it

BBC: Open land can solve housing shortage, says minister

Most of Nick Boles ideas are what people here have been saying for years. What is more interesting are the readers comments. Nimbyism is still alive and well along with the view that the last thing that should be allowed is for the average young person to be able to afford a house. As for his comments on housing design I suspect that is due to only £80K been left for labour and materials once the land has been bought

Posted by tenyearstogetmymoneyback @ 08:06 AM 17 Comments

Tuesday, November 27, 2012

They own Land - Give them money #1568

Gruaniad: Europe's €50bn bung that enriches landowners and kills wildlife

"By astonishing coincidence, the biggest landowners happen to be among the richest people in Europe. Every taxpayer in the EU, including the poorest, subsidises the lords of the land: not once, as we did during the bank bailouts, but in perpetuity"

Posted by pete green @ 09:40 PM 2 Comments

Academic Hijack!

Guardian: Big business has corrupted economics

"You know the country is in a financial mess when even establishment figures such as Rachel Lomax are calling for revolutionary thinking". She talks about "dismantling a version of capitalism" and replacing it with "Anglo-American neo-liberalism".

Posted by alan @ 07:17 PM 2 Comments

Tenants on benefits

AboutProperty: Are landlords victimising tenants on benefits?

The recession continues to hit some of the poorest sectors of our society the hardest and many UK landlords are adding to their problems by becoming increasingly unwilling to accept tenants receiving housing benefit.

Posted by phil @ 05:26 PM 0 Comments

OECD warns Osborne against further cuts OECD cuts UK growth forecast due to weak global recovery

The Organisation for Economic Co-operation & Development (OECD) has warned that the UK faces higher unemployment as it cut its growth forecast for the British economy.

Posted by ben @ 03:42 PM 0 Comments

ONS confirms UK out of recession but for how long? GDP growth confirmed at 1% in third quarter second estimate

The Office for National Statistics (ONS) has confirmed that the UK economy grew by a full one per cent in its second estimate of GDP for the third quarter. There is still one more revision due which means there could still be a change but the news confirms that the UK has emerged from its double-dip recession, though the economic outlook remains difficult.

Posted by ben @ 03:40 PM 0 Comments

London as a tax haven?

Guardian: Overseas buyers buy up London

Is this what is propping up the capital?

Posted by chrisch @ 10:22 AM 6 Comments

The man who will have destroyed Canada

The Greater Fool: Dear England

"Without a doubt, he provided a stable hand on the tiller while the elected politicians waffled and obfuscated. But he also let us down." "In fact the guy could be called the architect of the situation we have today, when the average Toronto family can’t afford the average home, Vancouver has been destroyed by land speculation and we’re on the verge of a nasty correction." Well, now you have him. On behalf of Canadians everywhere, I would just like to say 'Sorry aboot that'. Oh, and sorry for Justin Bieber as well, but I think you have a lot more than that to worry about now.

Posted by nubbers @ 10:14 AM 6 Comments

On your side?

Reuters: Nationwide takes new £45 million PPI hit

"Nationwide, Britain's biggest customer-owned financial services group, set aside a further 45 million pounds to compensate victims of loan insurance mis-selling". "Losses on our commercial property loans have increased over the past 12 months and, in addition, we continue to see elevated levels of PPI claims," Chief Executive Graham Beale said on Tuesday.

Posted by alan @ 09:25 AM 2 Comments

Monday, November 26, 2012

Second homes solution for MPs

Planet Property: Second homes solution for MPs

Could a government-funded apartment block be the way to put an end to MP's dodgy expenses claims??!

Posted by the planet @ 03:48 PM 1 Comments

Expect lower interest rates and far more QE

BBC News: Carney named as new Bank of England governor

From Wiki: The Bank's decision to provide substantial additional liquidity to the Canadian financial system,[16] and its unusual step of announcing a commitment to keep interest rates at their lowest possible level for one year,[17] appear to have been significant contributors to Canada's weathering of the crisis.[18]

Posted by hpwatcher @ 03:42 PM 18 Comments

Because London is so Reasonable

Guardian: First-time buyer numbers in London hit three-year high

CML figures show 10,000 first-time buyers took out mortgages in the third-quarter of 2012, but the figure remains historically low

Posted by happy mondays @ 03:21 PM 0 Comments

Luxury beach hut for sale for £245,000

Planet Property: Luxury beach hut for sale for £245,000

A tarted up beach hut has come on the market with an asking price of £245,000. It has one-bedroom - a mezzanine sleeping platform that would give a claustrophobic the horrors - and can, says the agent, be rented out to tourists for £120 a night: so there you go: the world hasn't gone completely mad yet.

Posted by the planet @ 01:32 PM 0 Comments

Renting roulette: Which? Call for regulation of letting agents

Planet Property: Renting roulette: Which? Call for regulation of letting agents

Bad practice, unexpected and unfair fees and a lack of consumer protection that fails both tenants and landlords: small wonder Which? want letting agents regulated

Posted by the planet @ 12:40 PM 0 Comments

But low home-ownership

AboutProperty: First-time buyers on the rise in London

London first-time buyer numbers are at a three year high, despite the highest house prices in the country. Figures from the Council of Mortgage Lenders show 10,000 first-time buyers took out a mortgage in the capital in the third quarter of 2012. But... The level of home-ownership in London is the lowest in the UK, largely due to booming property prices and big deposits.

Posted by phil @ 11:34 AM 0 Comments

ABI says its proposal is only "workable" solution ABI slams government for flood insurance "impasse"

The Association of British Insurers (ABI) has criticised government ministers for rejecting the only “workable” solution to the problem of providing affordable insurance to potential flood victims.

Posted by ben @ 11:18 AM 5 Comments

Property flipping master

Telegraph: George Osborne makes £400K profit on constituency home

The Chancellor, George Osborne, has demonstrated how to play the parlimentary expenses system by turning a £400K profit on his second home: "The farmhouse featured in The Daily Telegraph’s expose of MPs’ expenses in 2009 when it emerged that Mr Osborne had “flipped” his second home allowance onto the property and increased the mortgage. He took out a separate £450,000 mortgage on the Cheshire farmhouse in 2003 – reportedly guaranteed by his father Sir Peter Osborne, founder of the Osborne & Little wallpaper chain – and claimed £100,000 on the property between 2003 and 2009 on his MPs’ expensees." And the odds that this super flipper will fix our nation's finances are ... ?

Posted by quiet guy @ 08:48 AM 11 Comments

Sunday, November 25, 2012

Slow Motion Train Crash of the Euro... part 77

Telegraph: Spain to get €35bn in aid as Eurogroup meets to agree Greek aid

"European bailout funds will pump €35bn (£28.3bn) into Spain’s state bank rescue package in return for mass job cuts at four nationalised banks, including state-rescued Bankia, as eurozone finannce ministers meet for the third time to agree on Greek aid". (Anyone for a Spanish timeshare?).

Posted by alan @ 09:10 PM 0 Comments

Low Libor rates have led to mortgage rate cuts Fixed rates slashed in mortgage price war

Analysts are predicting that the cost of mortgages are set to fall even further as a price war breaks out amongst lenders as they fight to provide the most tempting deals to consumers.

Posted by ben @ 12:01 PM 1 Comments

Saturday, November 24, 2012

The UK is broken. People have no respect for each other!

DailyFail: Hard-up father who couldn't afford the rent is JAILED.

A hard-up father-of-three who moved his family into caravans because he could not afford the rent has been jailed - because he refused to move them from the picturesque village in which they lived. Asa Pryke, 47, and his wife Gwen, 48, pitched the campsite after their nursery business went bust forcing them to leave their rented home. But despite the fact that the two-acre plot has been in the Prykes' family for over 300 years, council chiefs told them they would still need planning permission, even to set up camp. The couple and their three teenage children turned to the council for help but say they were only offered a flat that was too small to house a family of five.

Posted by khards @ 11:31 AM 19 Comments

Friday, November 23, 2012

They own land! Give them money!

City AM: Housebuilders welcome further funding boost to spur growth

HOUSEBUILDERS and industry executives welcomed government plans yesterday to provide an extra £225m funding to help unblock a number of stalled schemes to deliver 48,600 new homes... The Confederation of Business Industry said the move should “inject confidence” into the sector by offering some respite to housebuilders struggling to get funding. But the lobby group added: “House builders need the government to deliver on its promises by urgently clarifying how this new funding will work alongside the £10bn of government guarantees, and by championing NewBuy to boost demand.” Clegg also announced that the European Investment Bank will be injecting £400m into the UK affordable housing sector.

Posted by mark wadsworth @ 11:44 AM 16 Comments


Homeowners Alliance: The Death of a Dream – the crisis of homeownership in the UK

The key findings are: UK homeownership in long-term decline; Owner occupation rate peaked in 2002 at 69.7% in UK, has fallen to 64.7%; The majority of households in London now rent; The ‘homeownership gap’ – the difference between those who want to own but can’t – has hit 5 million; UK homeownership ranks in bottom 11 in EU, below Portugal, Ireland and Bulgaria.

Posted by dill @ 11:32 AM 1 Comments

Leeds BS make big rate reductions on two-year fixed rate mortgages Leeds BS cut rate on two-year fixed rate mortgage to 2.54%

The Leeds Building Society has cut the rate on its two-year fixed rate mortgage by 0.41 per cent, down to 2.54 per cent taking it to the top of the best-buy tables.

Posted by ben @ 11:22 AM 1 Comments

"Extortionate Rents"

BBC: Question Time (iPlayer)

The final section of the programme aired yesterday (22/11/2012) which finds Owen Jones ruffling feathers among the mainstream, and possibly planting the first seed of long overdue protest [Approximately 10 minutes in length.]

Posted by dill @ 08:59 AM 3 Comments

How the next bank bailout might happen

Telegraph: Gap in bank reforms puts customers' savings at risk, warns BoE Governor Sir Mervyn King

A loophole in the Government’s planned bank reforms risks leaving the taxpayer on the hook for billions of pounds in the next financial crisis, the Governor of the Bank of England has warned. Sir Mervyn King said protection for depositors whose savings temporarily rise above the £85,000 compensation limit was needed or the Chancellor will come under “enormous pressure” to resort to a state bail-out again.

Posted by quiet guy @ 08:27 AM 1 Comments

Coming out of the woodwork now

BBC: Bristol man with 10 properties jailed for fraud

Why don't the authorities e,g. HMRC seem to know who owns what and where the rent goes?

Posted by chriswov @ 06:41 AM 1 Comments

Thursday, November 22, 2012

Average earnings rise by 1.4% to £26,500, says ONS

BBC News: Real wages falling @ 2.1% yoy

The average annual earnings of full-time workers in the UK rose by 1.4% to £26,500 in the year to April 2012. The figures have been published by the Office for National Statistics (ONS) in its annual survey of hours and earnings. There was a cut in the real value of pay, however, as inflation was higher during the same period, at 3.5%. And the ONS data also reveals that inflation has outstripped the rise in average pay for the past 12 years. The survey results show that since April 2000, average annual pay for full-time workers has risen by 40%, from £18,848 to £26,500.

Posted by khards @ 11:22 PM 5 Comments

Cornish second home owners to pay extra tax

This is Money: Cornwall hits holiday home owners with extra council tax, as empty properties are charged 150% and county is first to scrap second home discount

Owners who leave their properties in Cornwall empty for more than two years will have to pay 150 per cent of their council tax bill, while discounts for second home owners have been scrapped in an unprecedented move taken today. Second home owners currently receiving a 10 per cent reduction on their council tax will be stung for potentially hundreds of pounds extra a year, after Cornwall Council today became the first local authority in the country to approve ending second home discounts. The council's cabinet has also agreed to charge anyone leaves a property vacant and unfurnished in the county for at least two years 150 per cent of their bill, costing those with the most valuable properties around £1,500 a year extra.

Posted by wanderinman @ 06:47 PM 4 Comments

Property prices could fall by half, says Crispin Odey

MoneyWeek: Property prices could fall by half, says Crispin Odey

Hedge fund boss Crispin Odey believes house prices are now at the very top of their cycle, and could fall by half.

Posted by martingreen @ 04:30 PM 4 Comments

"Milton Friedman wrote that savings nowadays took the form of houses"

Guardian: Income inequality is killing capitalism

It is generally agreed that the crisis of 2008-2009 was caused by excessive bank lending, and that the failure to recover adequately from it stems from banks' refusal to lend, owing to their "broken" balance sheets.......

Posted by dill @ 04:22 PM 0 Comments

Lack of regulation and low tenant expectations allow cowboy letting agents to thrive

Planet Property Blog: Renting is Property's Wild West

RICS have today claimed that a complete lack of effective regulation has allowed the lettings sector to become the property industry’s Wild West, putting consumers at risk. RICS’ consumer letting survey (conducted in key marginal constituencies), published today, highlights the potential for rogue lettings agents to cash in on the current rental boom due to a combination of consumers’ low expectations and a total lack of effective regulation.

Posted by property addict @ 11:23 AM 1 Comments

A new Milton Keynes

AboutProperty: Clegg pledges £225m to unclog stalled housing projects

Nick Clegg is to reveal £225m of funding for housing projects in a speech to the National House Building Council today. He will call for a new generation of garden cities and suburbs to be constructed as soon as possible.

Posted by phil @ 10:47 AM 0 Comments

Bear Nibbles

The Move Channel: UK house prices down £4,000 in last three months

The monitor, provided by classified search engine Adzuna's "Market Insights" tool, shows that the average UK property value edged down by 0.2 per cent in November to £294,939, leaving prices £4,048 lower than in September 2012. Despite the overall dip, London, the South and Wales continue to buck the trend, with prices jumping by up to 0.9 per cent. The North East and South West of England saw the sharpest declines, with property prices falling 6.8 per cent from the summer months.

Posted by mark wadsworth @ 10:24 AM 3 Comments

Chelsea BS give FTB's offset option and cashback to pay for stamp duty Chelsea BS offers first-time buyers offset mortgage option

The Chelsea Building Society has launched a new mortgage for first-time buyers that offers an offset option so borrowers can use their savings to pay down their mortgage.

Posted by ben @ 09:55 AM 0 Comments

Wednesday, November 21, 2012

Sales of fat-knotted ties and hair gel set to plummet

Estate Agent Today: Hundreds of high street agents to go out of business, warning

On-line agencies set to increase market share, at the expense of traditional high-street agencies by the hundreds. Says on-line agent.

Posted by sibley's b'stard child @ 04:06 PM 14 Comments

Go Cornwall

Mail: Cornwall hits holiday home owners with extra council tax, as empty properties are charged 150% and county is first to scrap second home discount

Owners who leave their properties in Cornwall empty for more than two years will have to pay 150 per cent of their council tax bill, while discounts for second home owners have been scrapped in an unprecedented move taken today.

Posted by happy mondays @ 03:31 PM 12 Comments

Small Step in the Right Direction

This Is Money: Cornwall hits holiday home owners with extra council tax empty properties are charged 150% and county is first to scrap second home discount

Posted by wilee @ 02:29 PM 0 Comments

Great deal for borrowers with 40% deposit and fee is £999 Co-op unveils five-year fixed rate mortgage at just 2.79%

The Co-operative Bank has cut rates across its mortgage range and now has a five-year fixed rate mortgage deal available at just 2.79 per cent for borrowers with 40 per cent equity.

Posted by ben @ 01:41 PM 0 Comments

They own land! Give them money!

City AM: Mortgage loans see Funding for Lending boost

MORTGAGE lending climbed to an 11-month high in October, according to data out yesterday, as the Funding for Lending Scheme (FLS) entered its third full month of activity... Mark Harris, boss of SPF Private Clients, a mortgage broker, said he expected the mortgage market to ease further and further over the coming year. “This bodes well for next year – as lenders saturate the low loan-to-value (LTV) market with a plethora of rock-bottom rates, they will be forced to turn to the higher LTV bracket,” he predicted.

Posted by mark wadsworth @ 11:25 AM 7 Comments

House prices may by drop 50%.

London Evening Standard: Crispin Odey: David Cameron is not a leader, doesn’t understand power and doesn’t use it

“Property is ludicrously expensive,” he says. “House prices are right at the top of their cycle. I think they could crash. I’m not saying it’ll happen immediately, but I do think they can drop by half.” “House prices are not stable. They have a cycle like everything else. America has understood this much earlier than the UK. There, house prices have already fallen by 50 per cent and they are affordable. Originally posted on the HPC Forum, thanks to RentingForever.

Posted by will @ 11:13 AM 3 Comments

A Quick Guide to Getting a New Mortgage

Leeds Building Society: Mortgage Guide

Buying a new house can be a long, arduous process. With all the mounds of paperwork and legal jargon, it can be very easy to lose track of where you are, so anything that can help speed it up should be grabbed with both hands. Taking in the whole process from selling a property (if applicable) right through to the exchanging of contracts, this creative resource from Leeds Building Society plainly lays out the exact steps you should go through to get a mortgage, in simple, easy-to-understand English. If you're in the market for a new home - and would like to see exactly what you are letting yourself in for - this colourful guide is the perfect starting point.

Posted by m sebbage @ 10:17 AM 0 Comments

Tuesday, November 20, 2012

Oh what a tangled web.................

Moneymarketing: FSA warns of fraud risks in quick property sales

The FSA has warned borrowers in financial difficulties who are looking to sell their home quickly to beware committing fraud. The regulator says it has evidence that some below market value or distressed property sales involve fraud, where the buyer - a company or an individual - asks the seller to state the property has been sold for full market value, rather than the agreed price.The FSA says this is usually done so the buyer can borrow the full amount they have agreed to pay for the property, which would not happen in the current market as lenders require at least a 5 per cent deposit.

Posted by jack c @ 05:22 PM 8 Comments

Is that a good idea?

AboutProperty: CML: Mortgage lending recovery kick started

And Mark Harris, chief executive of mortgage broker, SPF Private Clients, predicts that this improvement is likely to trickle down to first-time buyers who need to borrow more with a smaller deposit. "As lenders saturate the low loan-to-value market with a plethora of rock-bottom rates, they will be forced to turn to the higher loan-to-value bracket if they are going to do any significant levels of business, which will mean cheaper rates and more choice for first-time buyers in particular," he said.

Posted by phil @ 01:36 PM 0 Comments

CML say definite signs of property market pick up CML: Mortgage lending up by 4% in October driven by FLS

The Council of Mortgage Lenders (CML) believes the UK property market is showing signs of picking up. This echoes recent data from Rightmove, the Nationwide and the Bank of England who confirmed an increase in re-mortgage activity and mortgage approvals.

Posted by ben @ 11:52 AM 0 Comments


Youtube: The next financial crash

Plugging his book, however makes sense...

Posted by happy mondays @ 11:28 AM 2 Comments

Soon be bogofs

Mail: Spain offers residency to anyone buying a home worth more than £130,000 in bid to save its housing market

Spain plans to offer foreigners residency permits if they buy houses worth more than 160,000 euros - approximately £128,500 - to try and reduce the country's bloated stock of unsold homes.

Posted by happy mondays @ 11:20 AM 10 Comments

Which is the mansion?

MoneyWeek: Which is the mansion?

A mansion tax on high-end property is a terrible idea - particularly if it comes with whopping rises in stamp duty. What Britain needs is another form of tax altogether.

Posted by martingreen @ 09:10 AM 10 Comments

Monday, November 19, 2012

Landlords are possibly literally an MPs best friend

Channel 4, Dispatches: Landlord list reveals names in new MPs' expenses row

There are now more than 300 MPs claiming rent, dispatches reporter Antony Barnett told Channel 4 News: "We wanted to know who MPs are renting from, we knew there were more than 300 claiming rent expenses but didn't have any details." Dispatches looks in detail at MPs found to have rented out property, then put in a claim for renting another home.

Posted by enuii @ 05:50 PM 3 Comments

Oooh noooo

Daily mail: Taxman to announce a hit squad targeting buy-to-let landlords in the South East

The taxman will tomorrow announce a hit squad to catch people letting properties in the South East who are not disclosing the income on their tax returns. Other task forces will also be launched to probe tax evasion in the rag trade in Wales, the Midlands and the North West and those dodging alcohol duty in Scotland.

Posted by mark @ 01:13 PM 11 Comments

Ouch..Not a happy monday

Mail: House prices up 2% on a year ago as London distorts UK property picture

The property market is showing promising sparks of life, albeit led largely by London's buoyant business in extremely expensive homes, with asking prices 2 per cent higher than a year ago.

Posted by happy mondays @ 11:15 AM 12 Comments

Landlords not making any money!

Dailymail: Worsening plight of the accidental landlords stuck with TWO loans

Not all of these landlords are prospering. Many are surprised by high or unexpected costs, says Before she let the flat she redecorated it. After that, it let relatively quickly at £995 a month, but after the cost of the mortgage, a ten per cent fee to a lettings agent, insurance premiums and one-off expenses such as an energy safety certificate, Milli says there is nothing left.

Posted by mark @ 10:09 AM 4 Comments

House prices down on month but up on year Rightmove data points to UK property market boost for 2013

The latest Rightmove house price index shows that the UK property market is ending 2012 on a positive note with the highest annualized rise in house prices for five years and a rise in search activity and new buyer enquiries.

Posted by ben @ 08:31 AM 0 Comments

Sunday, November 18, 2012

Build 'em up

Telegraph: End of the right to challenge planning rulings

The Prime Minister will put reforms of the planning system at the heart of a drive to place the public sector on a “war footing”. The pursuit of economic growth will now come before all other concerns, just as defeating Hitler’s Germany supplanted all other considerations during the Second World War, Mr Cameron will say. The Prime Minister will tell business leaders that to ensure Britain keeps its place in the top tier of world economies, he is willing to put previous concerns aside and “throw everything we’ve got at winning in this global race”. The number of applications for judicial review rose from 160 in 1975 to 11,200 last year. Only around one in six applications is actually granted, officials said.

Posted by drewster @ 10:46 PM 2 Comments

I own land - why won't they give me money?

Daily Mail: Duke's dissolute son kicks heroin habit... and wins back his birthright - the keys to Blenheim Palace

Blenheim Palace is a 200,000sq ft stately pile in Oxfordshire. It also has an 11,500-acre estate (roughly twice the size of the central London). James, the owner's son, complained that the Environment Agency forced them to rebuild a centuries-old dam, so he lobbied Mr Cameron for a grant. He explained: "It was a hard job to do, not only financially but there was no grant scheme available – not even the heritage division of the Lottery. In fact, I asked the Prime Minister that very question. I said: How are you going to help when, you know, I’m doing all this canvassing for you?" Fortunately for the family, rich toffs don't pay inheritance tax at 40% like the rest of us do.

Posted by drewster @ 06:56 PM 2 Comments

"The most likely vehicle for the tax raid would be through increasing taxes on people’s homes."

Telegraph: Tax raid on Britain's rich 'in next few weeks', Vince Cable says

The Business Secretary signalled that the Coalition was preparing to unveil a new taxation rate for the better off – possibly at the Autumn statement on December 5.

Posted by dill @ 11:21 AM 31 Comments

House hyperinflation?

Mail: The house where Band Aid was born... but do they know it's now worth £6million?

Zachary House, which has six bedrooms and is on the market for £6.25 million, has impressive music credentials. In the Eighties and early Nineties, it was owned by Midge Ure, of Ultravox. He wrote the Band Aid hit Do They Know It’s Christmas? in the lounge, along with Bob Geldof, and recorded the backing track for it in the basement studio. The house also appeared in the 1964 Beatles’ film, A Hard Day’s Night.

Posted by hpwatcher @ 09:43 AM 0 Comments

Saturday, November 17, 2012

Concern over possible "undue influence" in run up to sale of HBOS to Lloyds FSA to probe former deputy chairman over links to HBOS

The Financial Services Authority (FSA), is set to investigate whether its former deputy chairman Sir James Crosby had an “undue influence” on the oversight of failed bank HBOS in the run-up to it being taken over by Lloyds Banking Group.

Posted by ben @ 12:28 PM 0 Comments

Friday, November 16, 2012

"Some will just have to find something completely different to do"

CNBC: Banks Seen Shrinking for Good as Layoffs Near 160,000

Major banks have announced some 160,000 job cuts since early last year and with more layoffs to come as the industry restructures, many will leave the shrinking sector for good as redundancies outpace new hires by roughly 2-to-1.

Posted by dill @ 05:21 PM 4 Comments

Death of a Dream

BBC Radio 4: You and Yours

Skip to 15:40 for a discussion of the declining rate of homeownership. Martin Shankleman of the HomeOwners Alliance presents a report called "Death of a Dream" and argues we need a functional housing market. Meera Ba Hilal (?) argues for the government to help institutional investor landlords to increase private rented supply. All are careful not to discuss the removal of the props to high house prices.

Posted by greenmind @ 03:26 PM 3 Comments

Rent-seekers of the world unite

Telegraph: How to turn high house prices into cash you can spend

Ian Cowie's pseudo-objective fluff piece for equity release firms.

Posted by sibley's b'stard child @ 01:47 PM 1 Comments

Homeowners get £23k for free

Torygraph: Househunters pay £23,000 more to live in a market town

Funny how the government will take up to 47% of an extra £23k in earnings, but 0% of £23k if you get it for free from the price of your house being elevated by the work of others...

Posted by mombers @ 01:02 PM 14 Comments

Rents rise to new record high of £744pm Rental costs rise again but pace of increase slows

The cost of renting a home in England and Wales has edged up further once again in October to reach a new record high.

Posted by ben @ 12:07 PM 1 Comments

£1 million knocked off asking price of Amy Winehouse home

Planet Property: £1 million knocked off asking price of Amy Winehouse home

Amy Winehouse's Camden Square house was put up for sale for £2.7 million earlier in the year but the family have tired of trying to sell it and have now decided to auction it with a guide price of £1.8 million.

Posted by the planet @ 11:26 AM 0 Comments

Get ready for a fresh slide in British house prices

MoneyWeek: Get ready for a fresh slide in British house prices

London property prices have held up surprisingly well since the financial crisis. But that could be about to change, says Matthew Partridge. And it won't just be the capital that suffers. Here's why.

Posted by martingreen @ 10:56 AM 12 Comments

At £16000 annual income, you should not have gotten a mortgage in the first place

Yahoo: Spain suspends home evictions for most needy

Tactical move to delay further houseprice crash in spain. Avoid flooding the market with new properties by keeping the impoverished (ex)owners in. wonder if they will have to pay rent or have a 2 year free ride?

Posted by yopino @ 07:25 AM 3 Comments

Now i'm no Albert Einstein, but!

Telegraph: Home ownership hits lowest level in 24 years

Deep-rooted causes such as shortage of new homes, high mortgage deposits and the gap between people’s earnings and house prices are to blame, said the report, arguing the ten-year stagnation, while accelerated by the financial crisis, is not just a recession-related blip.

Posted by happy mondays @ 07:11 AM 20 Comments

Thursday, November 15, 2012

Affordability will also affect house prices

BBC: UK retail sales fell 0.8% in October

"UK retail sales fell by more than expected in October as shoppers cut back on food and clothing purchases, official data shows". "In October, sales of clothes and shoes fell 2.3% on the month. Food stores reported the biggest monthly decline in sales since November 2011",

Posted by alan @ 08:03 PM 2 Comments

For whom the bell tolls

Estate Agent Today: Zoopla does not yet know how many agents will be paying more

Tl;dr Estate Agents fed-up of being bled dry by Rightmove defect to Zoopla. Get shafted by Zoopla instead. Interesting for the comments alone.

Posted by sibley's b'stard child @ 03:26 PM 3 Comments

Pressure on Osborne ahead of Autumn Statement Moody's warns that UK could lose coveted triple-A credit rating

Moody’s the credit ratings agency has warned that it will look again at the UK’s AAA credit rating early next year as it looks to assess the performance of the UK economy and the impact that the euro debt crisis is having on it.

Posted by ben @ 12:07 PM 0 Comments

Bleak assessment of UK economic outlook in Bank of England's Quarterly Inflation report Governor King issues triple dip and inflation warning

The Governor of the Bank of England, Sir Mervyn King has issued a bleak assessment of the prospects for the UK economy and warned that GDP is likely to contract in the fourth quarter.

Posted by ben @ 12:04 PM 3 Comments

Agents telling porkies again

Rightmove: 3 bedroom semi-detached house for sale

is it a semi or End Mews House ? no it is end terrace is it 3 bedroom or 4 bedroom make your mind up so many porkies and misrepresentations of this property totally shameless

Posted by mark @ 10:31 AM 3 Comments

Planning fees to rise FIFTEEN PERCENT

Communities and Local Government: Planning Costs and Fees: Final Report

Herein you discover the true rate of inflation. I bet this will not form part of the CPI or RPI. On top of this, the Mayor of London is imposing a Community Infrastucture Levy (CIL) of £35 per square metre of new development, and all the Borough's and Districts are planning their own Levy which will add tens of thousands to the cost of building new homes. Welcome to a hell hole Soviet economy.

Posted by libertas @ 08:40 AM 5 Comments

Government decide to destroy residential areas

Communities and Local Government: Extending permitted development rights for homeowners and businesses: Technical consultation

Because 29 Million Bulgarians and Romanians require 8m long extensions to house their extended families. Oh, you think that is an outrageous claim? How else can we house them. The timing is perfect. We have been screwed again for the EU project. Expect permitted extensions to become 15m long when Turkey joins the EU because that is another 80 million folk living in poverty who will suddenly have unfettered access to well paid British jobs, free NHS healthcare and generous welfare for all the family. The consultation claims that this relaxation will save home owners £100m over the period but they completely ignore how the carbuncles which will be approved will wipe billions off property values where properties are blighted by hideous, un-neighbourly extensions.

Posted by libertas @ 08:30 AM 8 Comments

Wednesday, November 14, 2012

Forget Starbucks, these are the real dodgers

Independent: Exclusive: Private landlords evading at least £550 million tax on rental incomes

Buy-to-let and other private landlords are evading over half a billion pounds in tax due on their rental income, new figures reveal. Estimates by HM Revenue & Customs (HMRC) and seen by the investigative website Exaro, reveal that that every year landlords are evading at least £550 million in tax. This compares with £1.8 billion of tax collected on rental income – meaning more than 23 per cent of tax is being evaded.

Posted by drewster @ 09:12 PM 6 Comments

Unemployment means fewer mobiles

NY Times: Vodafone writedown

It must be a deep recession in Spain and Italy if people are giving up their mobile phones. But that's what's happening there! Even unemployed people in Britain seem to have a mobile a piece as a rule, so southern Europe is still very much on the down path.

Posted by plummet expert @ 08:03 PM 0 Comments

Funding for Lending... working

AboutProperty: Mortgage applications approach pre-crunch levels

Mortgage applications are returning to pre-credit crunch levels, according to the latest national mortgage index. Application activity has skyrocketed by 22 per cent in the last month as lenders cut rates and increase product availability.

Posted by phil @ 01:17 PM 0 Comments

Terrible mortgage traps for the unwary older owner. Maybe taxpayers could bail them out?

Daily Mail: 'We've paid our mortgage for 30 years but we're still £40k short': The trap that means older owners face losing their homes

"Tony and Pam Hughes never dreamed they would fail to pay off their mortgage. But after 30 years of paying interest to the bank and having retired, they were still £40,000 short. They have found themselves trapped" After an interest-only mortgage and two equity-releases, old couple in a large house that has risen massively in value may have to consider moving somewhere smaller so they can leave some inheritance to their children. And Peter Wheeler needs to find £300,000 by December or he faces having to move house. He can’t pay off his mortgage after losing £40,000 in property investments, and taking out a £300,000 interest-only mortgage.

Posted by doom&gloom @ 12:46 PM 18 Comments

King - Politics Live

Guardian: Unemployment figures and Bank of England growth forecast

Quarterly Inflation Report - Q's & A's. (on QE, Zombie loans, etc)

Posted by alan @ 11:05 AM 1 Comments

Time to leave the country

Daily Mail: London rents soar by A THIRD in just three years as housing costs in capital leave rest of Britain standing

Renting a home in the capital is 16% more expensive than in October 2010 and 32% higher on October 2009, when the average rent was just £940 per month. The soaring price means the divide between London and the rest of Britain when it comes to renting a home has grown drastically. The average rental cost across the rest of Britain increased by just seven per cent in three years, from £619 per month to £663 per month. On average, tenants in the capital are paying almost double compared to those living in rental accommodation across the rest of Britain. HomeLet says that people locating to London for employment is driving the increasing demand and is subsequently driving up average rents. London and the South East have the highest volume of private sector enterprises in the UK.

Posted by drewster @ 10:47 AM 4 Comments

Don't think I could afford either...

What Is Money: Buying a home 'a bigger commitment than marriage'

Buying a house together is a bigger commitment than getting married for 25-34 year olds, research published today suggests.

Posted by keithhodges @ 10:09 AM 0 Comments

Tuesday, November 13, 2012

Overview of UK property market 2013

London Loves Business: Where should you invest in property in 2013 and beyond?

London property prices just keep on mushrooming – but how long can the boom-times last? Can the London residential property boom really continue? How is the UK property market comparing with Europe?

Posted by sandra @ 09:19 PM 0 Comments

Government to raise mansion council tax bands

London Loves Business: Tory push to raise mansion council tax bands

George Osborne came under pressure from Tory MPs again today to raise the highest rate of council tax.

Posted by sandra @ 08:42 PM 0 Comments

Annualised house price increase in UK falls to 1.7 per cent ONS reports 0.2 per cent UK house price drop in September

Official data from the Office for National Statistics (ONS) published today shows that UK house prices have increased by 1.7 per cent over the past 12 months.

Posted by ben @ 05:28 PM 0 Comments

Now what would de-risk the book?

Reuters: BoE's Cohrs: pushing banks too hard to lend will raise defaults

Pressuring British banks to lend out more money will lead to a rise in defaults while creditworthy firms and households are reluctant to borrow, a Bank of England financial regulator said on Tuesday.

Posted by dill @ 01:15 PM 2 Comments

Rates cut by 0.10% on all mortgages for those with a 30% deposit Nationwide cuts mortgage rates for third time in four weeks

Nationwide has announced its third round of mortgage rate reductions in just three weeks. From today, all fixed and tracker mortgages available to borrowers with a 30 per cent deposit will see mortgage rates recued by 0.10 per cent.

Posted by ben @ 12:33 PM 0 Comments

Luxury estate agent...

AboutProperty: What is going on in the property market?

"I think house prices will continue to reduce. Transaction levels will stay the same, but the selling prices will reduce by two to five per cent. Although sellers are excepting prices to go up."

Posted by phil @ 10:15 AM 0 Comments

Euro issue will not go away

Guardian: Greece gets more time as IMF and EU clash

Quote from the City: "As we have argued for a very long time, the Greek debt situation will always be unsustainable until its existing pile of debt is written down or off to below 80% of GDP, and this will have primarily to involve public sector holdings." In other words, the Eurozone crisis lurks as ever. The markets don clothes pegs on their noses, but the whiff of the Euro decomposing under the floorboards gets ever stronger ...

Posted by voiceofreason @ 09:47 AM 2 Comments

Small businesses have higher inflation...

BBC: UK inflation rate rises to 2.7% in October

"The UK's inflation rate as measured by the Consumer Prices Index (CPI) jumped to 2.7% in October, up from 2.2% the month before"

Posted by alan @ 09:46 AM 6 Comments

It's Magic !

Mail: If this is the next 'Great Depression', why have house prices not fallen further?

The real explanation is that, as with the labour market, there is a great deal of treading water going on.

Posted by happy mondays @ 08:04 AM 19 Comments

Zombie economy - zombie housing sector?

BBC: 'Zombie' companies eating away at economic growth

You may have seen zombies in horror movies - the bodies of lost souls, neither alive nor dead - but experts are increasingly talking of a zombie colony in the UK economy, which is expanding and threatening to impede recovery and a return to growth. The rise of so-called zombie companies is, to some extent, a consequence of the UK's current record low interest rates.

Posted by hpwatcher @ 07:07 AM 0 Comments

Love it “principal forgiveness”

FT: Obama election sparks ‘DeMarco trade’

Investors in the US are marking down the prices of securities backed by mortgages written before the financial crisis

Posted by sosoon @ 07:00 AM 1 Comments

BOE now prints money for UK Government on demand

Money week: Britain has taken another step down the road to hyperinflation

As a result of quantitative easing (QE), the UK government owes the Bank of England a lot of money. Since March 2009, the Bank has printed enough money to buy up around a quarter of the government’s total outstanding debt. It now holds £375bn in British government IOUs, (also known as gilts). So what’s it been doing with the interest payments on that debt? Nothing really. Up until now, the money has just been sitting in a bank account (called the ‘Asset Purchase Facility’, or APF). By March next year, the Bank will have racked up £35bn in interest payments.

Posted by hpwatcher @ 06:18 AM 2 Comments

Monday, November 12, 2012

Everything that can be traded is rigged

Telegraph: Whistleblower claims that energy market is rigged

The Financial Services Authority Ofgem have launched investigations into claims that wholesale gas prices, used as the basis for domestic energy bills, were being manipulated by some of the big power companies. The FSA launched its investigation after whistleblower Seth Freedman told them he saw evidence that suspect trading had taken place on September 28, which is an important date as it marks the end of the gas industry’s financial year and can influence future prices.

Posted by enuii @ 11:17 PM 1 Comments

Housing Trends

FTAdviser: The decade that was

With the initial findings of the 2011 census released back in July this year, and a second wave of more detailed local data set to be published in the autumn, in the interim, Hometrack has laid out an insight paper that looks at what the forthcoming data is likely to show about the past decade’s changes in the housing market. Within the insight paper, there are three headline trends identified that it expects to dominate the census findings when they are published later this year.The first is growth in outright homeownership The second trend is accelerated growth in the private rented sector over the downturn. The last trend is a growing imbalance between three- and four-bedroom family houses

Posted by jack c @ 11:35 AM 1 Comments

New CML figures

AboutProperty: Lending down in September but up for Q3

House purchase lending fell in September, but this was not enough to detail overall growth in Q3, revealed Council of Mortgage Lenders (CML) figures. A 13 per cent rise across July, August and September has been driven by a surge in lending to first-time buyers and home movers.

Posted by phil @ 11:27 AM 0 Comments

Well people do we have any questions for Son of Shapps?

The Speccy: Your chance to grill the housing minister

Mark Prisk took over as housing minister in September’s reshuffle, and has quite a task on his hands to get housebuilding figures looking healthy again. The Conservative MP was previously in the Business department as Construction Minister, so he knows all about the challenges of getting Britain building. He has bravely put himself up for a grilling by Coffee House readers, and will be answering a selection of your questions posted in the comments below. Please post your questions below by 5pm Friday 16 November, and we will post Prisk’s answers next week.

Posted by montesquieu @ 10:53 AM 4 Comments

I needed a positive monday morning fix :)

Youtube: BBC News - 10-10-12

Got this of the main forum..

Posted by happy mondays @ 08:08 AM 1 Comments

Sunday, November 11, 2012

HMRC go after tax avoiders

Guardian: HMRC launches ad campaign aimed at tax evaders

The government will unveil an aggressive billboard campaign on Monday targeting individuals who evade tax. Designed by the ad firm M&C Saatchi, the campaign forms part of a wider £917m evasion and avoidance-busting programme which aims to raise an additional £7bn in tax receipts each year by 2014/15. "Most people play by the rules and pay what they owe, but HMRC is cracking down on those who don't," said the Treasury minister David Gauke. HMRC's new head of enforcement, Jennie Granger, added: "Our message to the small percentage who don't [pay the right tax] is a simple one: the net is closing in. We will detect you if you haven't put a job through the books, if you haven't declared investment income, if you've hidden assets offshore or if you haven't even registered for VAT.

Posted by kj @ 11:00 PM 0 Comments

Forget HPC - Bonanza for Buy To Let on the way!

Telegraph: Britain powerless to stop tens of thousands of Bulgarians and Romanians moving to UK next year, Theresa May admits

Britain is powerless to stop tens of thousands of Eastern European immigrants from coming to live in Britain from next year, Theresa May has admitted.Five year old quotas limiting the number of people from Bulgaria and Romania who can move to live in Britain are due to expire in just over 12 months' time.

Posted by hpwatcher @ 06:50 PM 37 Comments

Further strain on housing when restrictions lifted?

BBC NEWS: UK will not extend Romania and Bulgaria migration curbs

Bulgarians and Romanians will gain the unrestricted right to live and work in the UK from December 2013, Home Secretary Theresa May has confirmed.

Posted by david20040_0 @ 05:25 PM 0 Comments

Saturday, November 10, 2012

Accounting for Hard Times?

Independent: How can Viagra maker Pfizer pay no UK tax?

"Pfizer, the company behind the best-selling drug on the UK market, Lipitor, and impotence drug Viagra, had a turnover of £1.8bn on its sales in the UK last year. But despite its huge business in this country, the accounts of the company's British-based subsidiary suggest it made an operating loss of £59m in 2011 and £46m in 2010". (In other news, the Government intends to transfer cash that has accumulated at the Bank of England thanks to its £375bn money-printing programme to the Treasury, where it will be used to reduce the Government's borrowing. Is this the area "funny money"). Will the EU will ever get any accounts audited?.... and so, I ask what are our houses really worth?

Posted by alan @ 09:06 PM 13 Comments

Scary article on Evening Standard yesterday about 30% rise in house prices in the next 4 years

Evening Standard: Clapham and Fulham fuelling house price rises as London boom will see 25% lift in hotspots

Clapham and Fulham fuelling house price rises as London boom will see 25% lift in hotspots

Posted by alex @ 03:03 PM 0 Comments

Housing affordability cited

Telegraph: The new brain drain (and who can blame them?)

Most Britons who move abroad head for Australia (22%), with others settling in the USA, Canada, New Zealand and France. So why do so many professionals emigrate? We asked six British professionals living abroad what drove them overseas. Rudi, 33, and wife Hannah: "Hannah and I had been in London. She was teaching at a primary school in Chelsea and I was working in advertising. Our first son had been born and as we were struggling to get on to the property ladder, we felt our prospects might be better elsewhere. We decided to move to Hong Kong in 2008."

Posted by drewster @ 10:25 AM 11 Comments

Clutching at straws

Telegraph: Almost half of first-time buyers are forced to opt for affordable housing schemes

Forty-six per cent of those buying a home for the first time are turning to shared ownership or shared equity. One in four of those that were considering shared ownership and shared equity schemes said it was their only option if they were to get a foot on the property ladder, and that without the schemes they would have no hope of being accepted for a mortgage on the open market. A further 24pc said the schemes would allow or had allowed them to purchase a home in an area that would otherwise have been out of their reach financially.

Posted by drewster @ 10:20 AM 3 Comments

One off or Endemic of society... both her and the banks?

Daily Mail: Tears of a conwoman: Fraudster who stole £15million weeps on her police mugshot

The question is maybe the bank staff saw the commission pot of gold, and turned a blind eye , because if the loans were being paid and the mortgage was secured on property then everyone's a winner? Wait though... "The banks which lent her the money thought they were going to get it back when Michaela sold on the properties at a profit. However, the bankers were unaware that she had bribed chartered surveyor Mary-Jane Rathie, a policeman’s wife, to write fictitious reports in which she doubled the real value of the properties. This meant that Michaela, who is from Mauritius, received loans which were far higher than the cost of the houses she bought." - aha et voila!

Posted by techieman @ 08:59 AM 1 Comments

Is this safe?

Telegraph: UK Pension Funds in Historic move to Safe Havens

So pension funds are moving to gilts and bonds, away from shares because shares are volatile. I don't think this is so safe because the only possible move for interest rates is up, they cannot go lower, in which case all debt instruments will lose value. So the pension funds are sitting on an inevitable loss by holding debt now, the one thing you really don't want to do I would have thought.The fact that shares are bad does not mean therefore debt is good.. which seems to be the reasoning although regulations probably have a lot to do with it.Pension funds then have been selling out of the stock market, although the ftse100 has been heading up..The looting continues basically. Additionally shares priced in gold are near their cyclical bottom .Telegraph has a different take on this to me.

Posted by stillthinking @ 06:42 AM 1 Comments

Friday, November 9, 2012

Interest Only = Mis-selling scandal?

BBC: You and Yours

Today - we'll be talking about interest only mortgages. Four out of ten mortgages across the UK are interest only (much higher in the South East), seven out of ten families have no way of paying them off when the mortgage term ends. Is this shaping up to be the next mis-selling scandal? (Mis-selling part towards the end of the show - Interest Only #2 )

Posted by mken @ 07:49 PM 6 Comments

In the long term this policy was always going to be a disaster

Moneymarketing: FSA: 'Forbearance could leave thousands worse off'

FSA principal risk specialist Karen Wilshere says lenders may have left “hundreds of thousands” of borrowers in a worse position by providing forbearance when they have experienced money problems.Since the financial crisis, the Government and regulator have pushed banks to employ forbearance measures such as payment holidays, temporary reductions in monthly repayments, temporarily switching borrowers to interest-only mortgages or extending mortgage terms for struggling borrowers to increase their chances of remaining in their homes.

Posted by jack c @ 05:47 PM 4 Comments

Friday night bear nibbles

Moneymarketing: Inflation to wipe out house price growth by 2017

Inflation is expected to drastically erode UK house prices over the next five years, leading to a 3 per cent drop in real price growth, according to Savills World Research. Savills forecasts an 11.5 per cent rise in property prices in the five years ending 2017. Once measured in real terms however, homeowners are predicted to find themselves in a worse position.House prices are currently 11 per cent below 2007 levels but, adjusting for inflation, they are 24 per cent lower.

Posted by jack c @ 05:26 PM 5 Comments

Back-door access to the savings of millions of UK savers...

Mail: George Osborne bags £35bn windfall from QE

The Chancellor has bagged a £35bn windfall that will reduce public borrowing by reclaiming the surplus cash sitting in the Bank of England's £375bn quantitative easing programme. The change in policy will cut both the public debt and budget deficit, flattering the public finance figures when the Office for Budget Responsibility updates its outlook at the Chancellor’s Autumn statement next month.

Posted by hpwatcher @ 04:10 PM 6 Comments

House prices to stabilise in 2013 but inflation will continue to erode value

Planet Property: House prices to stabilise in 2013 but inflation will continue to erode value

Average house prices will struggle to show inflation-beating growth for the foreseeable future, says Savills who today published their five year residential market forecasts.

Posted by the planet @ 12:17 PM 0 Comments

Shut up and Keep your hands off our land! Its the Only Way

East Essex Guardian: Chigwell residents continue their fight over Local Plan houses at Epping Forest District Council meeting

Actually i noticed this when driving through Chigwell the other day - the "Vote Conservative" plaques have been replaced by "Hands off Chigwell" - subtle! please vote for the following reasons for the vehement opposition to 1,250 new homes being built: 1. There are not enough schools and facilities here (at least not enough public ones!). 2. We dont want to use the green belt - our trees and grren open spaces will be destroyed - think of the children 3. Our houses prices may fall, Mark W - I dont know much of the background of this - since you are in the area too - do you know?

Posted by techieman @ 12:02 PM 11 Comments

Rents forecast to rise 18% over next five years

Planet Property: Rents forecast to rise 18% over next five years

Average rents are expected to rise by 2.5% in 2013 and 18.2% over the next five years, says a new report ... weren't the housing benefit changes supposed to stop this happening?!

Posted by the planet @ 11:55 AM 0 Comments

House purchase loans up 10% in October

Planet Property: House purchase loans up 10% in October

House purchase lending in October increased 10% compared to September ... but are still 38% below the market at its peak

Posted by the planet @ 11:39 AM 0 Comments

Scottish ‘ghost village’ Pollphail sold for £250,000

Planet Property: Scottish ‘ghost village’ Pollphail sold for £250,000

The ghost town of Pollphail - built by the oil industry to house workers and quickly abandoned - has been sold for £250,000 … nice views!

Posted by the planet @ 10:59 AM 0 Comments

A generation of landlords

BuyToNet: Four in five landlords to use property as pension

Sixty-one per cent plan to live off the rental income and just five per cent will sell all of the properties in their portfolio.

Posted by phil @ 10:21 AM 0 Comments

Stop these vampires.....

Mail: 'Landlord loans' reach all-time high as one in eight mortgages are for buy-to-let deals

Britain is issuing the largest number of 'landlord loans' since records began, official figures have revealed. One in eight mortgages now a buy-to-let loan deal - an all-time high, the report said. Of the 11.3million mortgages in this country, 1.44million are buy-to-let loans, rather than standard residential mortgages.

Posted by hpwatcher @ 06:10 AM 20 Comments

Thursday, November 8, 2012

Would our broken tax system be better with LVT?

Guardian: Caroline Lucas calls on government to consider land tax

"The government will come under pressure on Friday to consider a tax on land as a fairer response to the financial crisis by shifting the burden of taxation to wealthy businesses and individuals. Supporters of a private member's bill calling for a feasibility study also claim the new tax would allow the government to cut income tax on low and middle incomes".

Posted by alan @ 08:17 PM 7 Comments

'Under-used' holiday homes should be seized

Daily Mail: 'Under-used' holiday homes should be seized back from owners by councils to ease local housing shortages, union boss declares

Should pilot this in Mayfair, Belgravia & Chelsea ... "Under-used holiday homes should be compulsorily purchased by councils in areas with an acute shortage of properties, a leading union suggested today. More than 170,000 people own a holiday home in the UK, with the highest numbers in the South West and Wales - and the GMB said that if these are almost permanently empty there is no monetary benefit to the local area. Paul Kenny, general secretary of the GMB, said: 'In many areas urgent action is needed to ascertain if properties used as holiday homes are actually in use at all."

Posted by doomwatch @ 03:34 PM 2 Comments

Whata a difference a pound makes.

Irish Times: Irish inflation rate slows to 1.2%

AIB savings account pays 2.5%. Ireland's inflation rate declined for a second month in October, helped by lower energy prices. The annual inflation rate eased to 1.2 per cent in October, falling from 1.6 per cent recorded in September. The rate of price hikes also eased month on month, with prices falling by 0.1 per cent last month compared with September. This compares to an increase of 0.3 per cent the same time last year. The most notable changes in consumer prices in October, as measured by the consumer price index (CPI), were in transport (-2.7%) and education (+4.6%). The most significant changes in the year were increases in education (+6.7%), transport (+5.8%), and alcoholic beverages and tobacco (+3.5%). There were decreases in communications

Posted by khards @ 03:26 PM 0 Comments

Everyone is propping up the market

BBC: Home repossessions drop to five-year low, lenders say

"The Council of Mortgage Lenders (CML) said there were 8,200 repossessions in the third quarter of 2012, the lowest quarterly number since 2007".

Posted by alan @ 01:53 PM 11 Comments

No more QE, Rate Rises, ur all mad !

Mail: The end of QE? Bank rate setters reject new cash injection as former colleague tells them to plan for rate rises

The Bank of England today stopped short of printing yet more money to boost the economy, despite worsening economic data, as a former colleague told them to lay out plans for interest rate rises.

Posted by happy mondays @ 12:17 PM 1 Comments

Wednesday, November 7, 2012

Leeds BS reduce mortgage rates Leeds BS cut fixed rate mortgages by up to 0.31%

Leeds Building Society has cut the rates attached to its three-year fixed rate mortgage range. Some of the new rates are available to borrowers who need to be lent 85 per cent of the property.

Posted by ben @ 06:08 PM 6 Comments

Is home ownership still an affordable dream in the UK?

Angloberry: Home Ownership in the UK - is it still a realistic dream for most Brits?

Home ownership is still a dream that most Brits aspire to. And why wouldn’t they want to buy a home? Living as a renter provides risks such as rent hikes, evictions and poor living standards. However it may not be an affordable dream for the average British household anymore. The average home now costs more than six times the average salary in London and the average deposit is now £27,000 according to Shelter. Coupled with increasing rents first time buyers are unable to afford to rent whilst maintaining a comfortable living standard. The National Housing Federation found that the cost of privately renting went up by 35% in the past 5 years and will increase another 35% in the next 6 years.

Posted by sam @ 02:14 PM 5 Comments

A guide to understanding the UK housing crisis


As part of the recession the property market has been hit. This has pushed the housing crisis to the extremes putting households at risk of soaring house prices, increasing rents and fears of homelessness

Posted by sam @ 02:11 PM 1 Comments

Knight Frank predict fall

HomePurchaser: Knight Frank predict further correction in house prices

Gráinne Gilmore, head of UK residential research at Knight Frank, said that there is a need for "further correction" in prices, to help bring them back in line with average earnings.

Posted by phil @ 01:59 PM 3 Comments

Can they?

AboutProperty: Mortgage lenders can 'self-regulate' says industry leader

Speaking at the Council of Mortgage Lenders' annual conference, chairman Martijn Van der Heijden told delegates that the industry is capable of reflecting on its practices and improving them. He acknowledged that many borrowers currently see the mortgage industry as the cause of problems rather than the provider of solutions, but said that work could be done to increase the relationship of trust

Posted by phil @ 01:57 PM 3 Comments

Further falls likely before house prices return to 2007 peak in 2019

Planet Property: Further falls likely before house prices return to 2007 peak in 2019

UK house prices will not reach their 2007 peak until 2019: the longest housing market recovery on record ... but a sudden rise in interest rates could push the market - and with it many mortgage holders - over the edge

Posted by the planet @ 11:29 AM 1 Comments

Tuesday, November 6, 2012

Co-op get Funding for Lending Scheme moving for FTB's FLS hope as Co-op launches 2-year fee-free fix at 3.99% for FTB's

First-time buyers have finally been offered a competitive mortgage deal through the Bank of England’s Funding for Lending Scheme (FLS).

Posted by ben @ 05:58 PM 0 Comments

Depression to last for another two years Niesr warns UK will not see sustained recovery until 2015

The National Institute of Economic and Social Research (Niesr) says that the UK economy is likely to remain in depression for another two years, even though it admits it has come out of recession.

Posted by ben @ 05:56 PM 0 Comments

Participant update (29/10/2012)

BoE: Funding for Lending Scheme – Usage and lending data

The Bank will publish on this page quarterly data showing, for each group participating in the FLS, the amount borrowed from the Bank, the net quarterly flows of lending to UK households and firms, and the stock of loans as at 30 June 2012. The first such publication will be on 3 December 2012 (for Q3 2012 data). [NB Lloyds Banking Group has a third of allocation.]

Posted by dill @ 02:42 PM 1 Comments

Can't sell, won't sell.

AboutProperty: Huge fall in properties on market since recession

The number of properties on the market has dropped drastically since the start of the recession, say estate agents. A report from the National Association of Estate Agents (NAEA) records a 38 per cent decrease since the peak of the housing market.

Posted by phil @ 10:22 AM 0 Comments

This money stuff is getting more and more mainstream

This Is Money: We need to return to 'real' money to solve the economic crisis

It's even made it to the Daily Mail. Which is nice.

Posted by frizzers @ 09:20 AM 26 Comments

House prices dip by 0.7% in October Halifax reports accelerated decline in UK house prices

House prices suffered another minor fall in October, according to the latest house price index from the Halifax. House prices fell by 0.7 per cent and they slipped by 1.2 per cent on a quarterly basis, in the three months to October.

Posted by ben @ 09:12 AM 0 Comments

Downtrend confirmed

LBG: Halifax House Price Index (pdf)

Annual change -1.7% Quarterly change -1.2% Monthly change -0.7% Average Price £158,426

Posted by dill @ 08:15 AM 33 Comments

Monday, November 5, 2012

“How to Avoid Being Gazumped” - disingenuous advice from an agent

Conran Estates bulletin: “How to Avoid Being Gazumped”

This agent manages to massage a rather incredible number of its own interests in this "article", with advice to (1) offer asking price, (2) purchase a formal first right of refusal from the vendor and/ (3) rent (the agent also does lettings...)

Posted by wingedvictory @ 01:03 PM 0 Comments

Surprise surprise

AboutProperty: Stamp duty doesn't hold up prime central London

The increase in stamp duty on homes over £2m appears not to have derailed price growth in prime central London, Knight Frank's latest report suggests.

Posted by phil @ 11:03 AM 0 Comments

It’s not just the boomers shafting the younger generation!

Telegraph: Households face £1,230 bill to plug public sector pension black hole

“Why should future generations pick up the bill for the pensions of public sector workers, people who on average are likely to be far better off in their retirement than their wealth-creating private sector peers?”

Posted by mr g @ 09:18 AM 33 Comments

Sunday, November 4, 2012

Obviously no shortage of cash buyers

Telegraph: Prime location and a sea view and just £50,000 – shame it's for your car

With a sea view along a palm tree-lined road in the heart of a Cornish resort, an asking price of £50,000 seems like a bargain – until you realise that it is just for the parking. Five car spaces in the much-sought after St Ives have gone on sale for a staggering £50,000 each – more than double the average wage in Cornwall. But the sale has sparked anger among local residents who say they are being priced out of buying homes and land because the value is being forced up by out of towners. One local councillor said it “sticks in the throat” and is creating a divide between locals on low wages and wealthy second home owners. The sale of the five parking spaces, which are just a 30 seconds walk from the town centre, comes just three months after another space sold for £55,000.

Posted by drewster @ 10:12 PM 3 Comments

Caught out - who cares? Morality is worth ??

Telegraph: HSBC to face £1bn fines over money-laundering

"HSBC is set to face a final bill for fines as high as $1.5bn (£937m) for the “shameful and embarrassing” US money-laundering scandal that has engulfed Britain’s biggest bank". (OK, and how did you think that drug debts and payments for child trafiking get settled?). "HSBC refused to comment." See also Sky breaking news...

Posted by alan @ 08:56 PM 1 Comments

So you want a mortgage, do you?

Telegraph: British banks face new crisis as a result of accounting rules

"British banks are to be forced to raise tens of billions of pounds in fresh capital as a result of new accounting rules due to be announced early in the new year".

Posted by alan @ 10:41 AM 4 Comments

Friday, November 2, 2012

How to waste more money keeping prices up

Reuters: Use QE to buy "bad mortgages".

"Policymakers need to boost the UK economy by buying bad mortgages says Fathom Consulting's Danny Gabay. Former BoE mpc member Charles Goodheart adds UK may benefit from plan similar to U.S. TARP". Video.

Posted by alan @ 03:57 PM 10 Comments

Surprise from ONS

ONS: New inflation index including owner occupiers' housing costs to be launched

The ONS has announced that it will introduce a new inflation measure called CPIH in March 2013. CPIH will be designed to include housing costs. This has been planned for some time. What I didn't expect is that the housing component of CPIH will will measure owner occupied housing costs "using the rental equivalence method. This method uses changes in rental prices to measure the costs of owning, living in and maintaining a property." My guess is that this inflation measure is likely to rise in the next few years even if property prices stagnate or fall a bit.

Posted by quiet guy @ 02:27 PM 4 Comments

Tyrie says Bank reports are "too little, too late" Tyrie slams BofE reports as "well short of what is required"

Andrew Tyrie, the Chairman of the Treasury Select Committee has called the governance of the bank of England “defective” following the publication of three independent reviews into the performance of the central bank.

Posted by ben @ 01:41 PM 0 Comments

Sign of the times: boom in offices being converted into homes

Planet Property: Sign of the times: boom in offices being converted into homes

The number of office blocks being converted to domestic accommodation is soaring, says a new report from DTZ

Posted by the planet @ 11:46 AM 0 Comments

Prime London heading for hard landing?

Planet Property: Prime London heading for hard landing?

More stock, fewer buyers and bigger discounts: has the booming prime market started to stall?

Posted by the planet @ 11:19 AM 0 Comments

Thursday, November 1, 2012

Believe it or not

BBC: RICS survey reveals 'total lack of trust' in estate agents

There is a "total lack of trust" in estate agents, according to a survey by the Royal Institution of Chartered Surveyors and 'consumers' are not confident that agents act in their best interests. However by the tone of the interview I take 'consumers' as being the purchasor rather than the vendor.

Posted by enuii @ 10:45 PM 12 Comments

I thought the recession was over - Doh!

Sky: Comet Electricals Chain On Brink Of Collapse

"Comet, the electricals chain, is to go into administration next week after struggling to stock up for Christmas".

Posted by alan @ 05:53 PM 10 Comments

Fans of cat-swinging need not apply

Not-so-Independent: Question: FTBs do you really need all that space?

Rupert Winthrop, CEO of Rabbit Hutch Inc dismays at the over-inflated ambitions of today's first-time-buyers. 'Apparently, they keep expecting to have the same standard of life as their parents; which is making it very hard to shift our one-bed aspirational executive apartments'. Rupert hopes that a series of fluff pieces in respected newspapers will go some way to gently massaging the youngs' expectations. Coupled with a fictitious though plausible FTB story called Mandy, who can barely disguise her disgust at the me-me-me generation should go some way to achieving this goal.

Posted by sibley's b'stard child @ 01:06 PM 5 Comments

Lifetime of debt slavery - Home-Owner-Ism enters final phase

CityWire: Are you facing a mortgage 'time bomb' in retirement?

"Analysis by equity release lender More 2 Life shows 103,000 over-65 households are still repaying mortgages, including 81,000 65- to 74-year-old households, and 22,000 households of 75 years plus. The number of people still repaying mortgages in retirement is reflected in changing work patterns, as more people work past the traditional retirement age and the age of a first-time buyer increases. As people live longer and work into older age the number still paying their mortgage in retirement will increase, exacerbated by the number of interest-only mortgages that are coming to the end of their term." But... but... this is what we want, isn't it? Pay rent until you're forty and then pay a huge mortgage until you're eighty? That's what "aspiration" is all about, isn't it?

Posted by mark wadsworth @ 12:17 PM 4 Comments

Public don't trust estate agents shocker!

Planet Property Blog: Public don't trust estate agents shocker!

A survey by RICS has found majority want better protection from cowboy estate agents

Posted by property addict @ 10:59 AM 0 Comments

Westminster Council to crack down on luxury residential property

London Loves Business: Westminster to crack down on luxury construction

The council is worried that the high-end residences are making the area unaffordable for smaller and medium-sized companies

Posted by sandra @ 10:33 AM 0 Comments

Nationwide's monthly stats

Reuters: House prices up 0.6% in October, outlook tough

"House prices rose faster than expected in October, data from mortgage lender Nationwide showed on Thursday, though a sustained recovery of the housing market still looks far from certain.House prices in Britain were 0.6 percent higher than in September, Nationwide said, though they were still 0.9 percent lower than in October 2011"

Posted by alan @ 09:21 AM 5 Comments

House price annual fall now just 0.9% Nationwide: House prices up by 0.6% in October

UK house prices rose by 0.6 per cent in October, according to the latest Nationwide house price index. This means the average house in the UK now costs £164,153, a 0.9 per cent decline on 12 months ago.

Posted by ben @ 09:12 AM 0 Comments

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