December 2012 Archive

Sunday, December 30, 2012

Spent too much over christmas - join the club!

Telegraph: The US 'cliff' - one small part of a huge debt crisis

A nice article on why the US has gridlock.

Posted by alan @ 08:09 PM 5 Comments

FTB's in 2012 at 5-year high but still barely half of pre-credit crunch levels Cheap mortgages help first-time buyer levels reach five-year high

A new study of the UK property market in 2012 by the Halifax has found that the number of people buying their first home in 2012 was the highest since 2007.

Posted by ben salisbury @ 11:26 AM 2 Comments

Saturday, December 29, 2012

This is gonna hurt a few ftb's

Guardian: First-time house buyers at five-year high in 2012

The Council of Mortgage Lenders recently estimated that 65% of first-time buyers had financial assistance in mid-2012, compared with 31% seven years earlier.

Posted by happy mondays @ 03:05 PM 13 Comments

Councils know whose interests to look after

AOL: Housing targets 'cut by 270,000'

Councils in England have cut their home-building targets by more than 270,000 since the abolition of regional planning in 2010, according to research by the Policy Exchange think tank. The radical reductions could result in the lowest level of house-building since the 1920s, the think tank warned.

Posted by quiet guy @ 12:59 PM 6 Comments

Friday, December 28, 2012

What went wrong with our pension pot?

Mail & others: Costa del Crash! Spain's property prices set to slump 50pc

"Up to 2million properties languishing on the market that cannot be sold 400,000 Britons either live in Spain or own a holiday home. Experts warn house prices may not begin to recover for up to 15 years". (Reuters report Spanish banks in new malaise). Nationalised Bankia's share price dropped 14 per cent on Thursday after it was described as having 'negative value' of -£3.5billion (Telegraph). "Santander recently attempted to get rid of its unsold property portfolio by cutting prices by 60 per cent" the Mail continues.

Posted by alan @ 07:35 PM 5 Comments

London commuter towns top property increase tables in 2012 Southend property values rise fastest in 2012, says Halifax

Property in Southend experienced the biggest annual price increase of any town or city in the UK in 2012.

Posted by ben @ 10:39 AM 1 Comments

Money Printing For Beginners

BullionVault: Money Printing For Beginners

This came through from Paul Tustain. He is very sober in his analysis. Stick with it - it's tricky at first - through to the end. It's worth it. It begins with this disturbing stat : For every one of all 25 million working people in Britain the government is printing £16 of brand new money – every day. Via the public sector the government is showering the economy with this new cash and shunting the resulting debt into the sovereign bond market, where somehow these highly questionable assets still find buyers. How come the bond market has not yet got indigestion? That is a complicated question, and one which this Christmas I have sought to address in my annual seasonal review.

Posted by frizzers @ 10:39 AM 12 Comments

Thursday, December 27, 2012

The Only Way is Essex!

Telegraph: Southend-on-Sea tops house price table, says Halifax

"Southend-on-Sea recorded the biggest rise in house prices across Britain this year, as homes close to London saw double digit increases, while prices in the North continued to lag behind". (aaah! it's NOT Brentwood, sorry!).

Posted by alan @ 11:29 AM 3 Comments

Wednesday, December 26, 2012

Research by ING Direct

Mail: One in ten elderly forced to sell or downsize their home to make ends meet

"One in ten pensioners in Britain has sold or downsized their home to help make ends meet, according to research. Cash-strapped Britons are reassessing their retirement plans because of the state of the economy, according to a survey of 1,000 adults in 12 European countries, which found that more people in this country are planning to use their property to fund their pension than in most other European nations"

Posted by alan @ 10:17 AM 35 Comments

Monday, December 24, 2012

Hometrack Monthly Results and Forecast

Bloomberg: House Prices Fall as Hometrack Sees Further Decline in 2013

"House prices fell for a sixth month in December. Prices in England and Wales slipped 0.1 percent, the same as November, the property researcher said in a statement today. It forecast that values will fall 1 percent next year after a 0.3 percent decline this year. London will outperform the national market, though price growth will moderate to 2 percent".

Posted by alan @ 09:16 AM 2 Comments

Would this kick start HPC?

Telegraph: Pressure increases for UK interest rate rise in 2013

The Bank of England will defy expectations and raise interest rates next year on the back of a solid recovery and rising inflation, senior economists have warned. Two highly unlikely scenarios: Raising interest rates and a solid recovery. One highly likely scenario: Rising inflation.

Posted by mr g @ 12:54 AM 6 Comments

Sunday, December 23, 2012

What does 2013 hold?

Guardian/Observer (Online): House prices to stay in doldrums for 2013, estate agents predict

"House prices to stay in doldrums for 2013 According to this article published a few days ago, this is the “unanimous” opinion of EAs and property consultants. Who would have thought, at the time of the credit crunch 5 years ago, that this is where we’d be in now? Somehow, the powers that be have managed to keep prices from crashing. So why should the next year (or 5) be any different? At this festive time of year I thought it might be fun to ask the users of HPC to post their views on what 2013 holds. I suggest breaking this down into categories and being as brief as possible: 1. What will happen to house prices in 2013? 2. Top 3 (in order) reasons why I believe this will be the case 3. What, realistically, might change all that and lead to a real HPC in 2012?

Posted by grumpybob @ 12:23 AM 10 Comments

Saturday, December 22, 2012

High Debt, Flat Wages and Rising Interest Rates but what about Inflation

Guardian: Christmas food handouts double as millions face 'financial precipice'

Article discusses Food Banks but contains much more than the title suggests. Excellent underpinning information comes from various sources including the Resolution Foundation who are well worth checking out. The foundation calculates that millions of households with low to middle incomes will be pushed close to the edge if they are unable to reduce their debts, before the cost of borrowing returns to more normal levels. Inflation is also mentioned but the connection is not made to the double edged sword the UK is balanced on especially when 2.4 million households with a mortgage (one in five) are spending more than 25% of their gross income on mortgage repayments when interest rates are at just 0.5%. Before the 2000s debt boom only 15% of households were in this position when IRs were 7%.

Posted by enuii @ 09:03 PM 6 Comments

Average age of first-time buyer

BBC podcast: More or Less

(14 minutes into the programme): For once, it seems, Grant Shapps and much of Fleet St have got it wrong.

Posted by greenshootsandleaves @ 11:29 AM 3 Comments

Friday, December 21, 2012

So why are stocks so high? Time for a correction or is this time different?

Trust Net (lol): FTSE will surge above 6,500 next year, say experts

As 2012 draws to a close, fund managers and investment analysts tell FE Trustnet where they think the FTSE 100 will be this time next year. Investors will easily surpass its current levels by this time next year, according to industry experts, with some estimating the index will climb as high as 7,000. At the time of writing, the FTSE 100 index is at 5,966 points. With this in mind fund managers and investment analysts told FE Trustnet that they think this progress will continue over the next 12 months. Though all the experts were light-hearted in their forecasts, they say UK equity markets should perform strongly in 2013, with three of the five saying it will surpass 6,500.

Posted by khards @ 04:12 PM 11 Comments

Double dose of bad news for Chancellor brings no Christmas cheer Double dip for Osborne as GDP down and government borrowing up

The end of the world may not have happened today but it has been a grim Friday for the government as their hopes of Christmas cheer were dashed by two sets of worrying figures on the shortest day of the year.

Posted by ben @ 02:59 PM 0 Comments

Chelsea offer reduced rates but with high fees Chelsea BS cut mortgage rates on two-year fixed rate deals

The Chelsea Building Society has announced that it is to cut mortgage rates on a range of its products today.

Posted by ben @ 02:58 PM 0 Comments

All I want for Christmas is a bailout

WSJ: Leading Greek Banks Need $17.2 Billion Capital Boost

"Eurobank, the country's second-largest lender by assets, will need €5.8 billion, while Piraeus Bank will require €7.3 billion, they said separately. They reported combined losses of €1.7 billion for the first nine months of the year, on high loan-loss provisions and weaker banking income". (Yes, more requests to Santa Merkel next week).

Posted by alan @ 01:18 PM 3 Comments

Carry on spending

Telegraph: Fiscal cliff~were the Mayans right after all?

"America now looks set to go over the fiscal cliff. The Mayans might have been wrong about the end of the world, but they might be on target about the end of John Boehner’s career. Aside from being very bad news for America’s economy, this is a disaster for Republicans".

Posted by alan @ 01:09 PM 0 Comments

Value of home MUST be mentioned in any Daily Mail story

The Daily Mail: Fresh heartache for BBC's Robert Peston as burglars steal his late wife's vintage 1920s wedding and engagement rings - and a work laptop

BBC business editor Robert Peston said he was heart-broken last night after his late wife’s wedding and engagement rings were stolen in a burglary. The award-winning journalist appealed for the return of the ‘irreplaceable’ family heirlooms which were taken along with other jewellery, two laptops and an iPad from his £1.5million home in North London. A second house in the upmarket area, which has views of Alexandra Palace and is popular with families, was also targeted on the same evening.

Posted by ontheotherhand @ 09:45 AM 4 Comments

Planning rules might be tweaked very slightly

Telegraph: Planning rule book is torn up

Lord Taylor was appointed to review thousands of pages of planning guidance which underlies the NPPF [National Planning Policy Framework]. His review found that existing guidance was “not fit for purpose” and that the “historic accumulation of out-of-date, contradictory and unmanageable material must be brought to an end”. There are 7,000 pages of guidance, much of it contradictory and dating from the 1960s. Lord Taylor conceded that the changes to the guidance would be “entirely neutral”, although he admitted “there will be some arguments about what they should say”, adding “what goes into it may or may not increase or reduce protection”.

Posted by drewster @ 01:30 AM 3 Comments

Thursday, December 20, 2012

Top 5 items stolen by burglars at Xmas

Planet Property: Top 5 items stolen by burglars at Xmas

Nice infographic of top 5 items nicked by burglars at Xmas .. bikes are top ... ahead of laptops and diamonds ... really?!

Posted by the planet @ 06:53 PM 0 Comments

Government debt - again - at root of the South Sea Bubble

BBC Radio 4: In Our Time: The South Sea Bubble

Melvyn Bragg and his guests discuss The South Sea Bubble, the speculation mania in early 18th-century England which ended in the financial ruin of many of its investors. The South Sea Company was founded in 1711 with a view to restructuring government debt and restoring public credit. The company would ostensibly trade with South America, hence its name; and indeed, it did trade in slaves for the Spanish market even after the Bubble burst in 1720.

Posted by hpwatcher @ 02:56 PM 2 Comments

Property transaction and values above CML 2012 predictions CML forecasts growing property market in 2013

The Council of Mortgage Lenders (CML) reports that gross mortgage lending in November reached £12.9 billion, the highest level for a year and up slightly from October’s lending figure of £12.78 billion.

Posted by ben @ 01:51 PM 0 Comments

Five Tips to Sell Your Home on a Budget Five Tips to Sell Your Home on a Budget

1) The Illusion of Space One way to make your home shine for potential buyers is through the Illusion of space. Cluttered rooms, certain darker colours and even furniture position, can make the rooms in your house look small. Have no fear as there are some quick and easy fixes to make your rooms look larger:

Posted by @ 12:12 PM 0 Comments

Good news

BBC News: Home extensions: MPs warn of confusion over relaxation plan

It announced in September that the maximum length of single-storey extensions built without planning permission would be doubled from three to six metres. For detached homes the new limit would go from four to eight metres.

Posted by house owner @ 09:56 AM 0 Comments

BTL on the way down - mwahaaa haaaa

Daily Mail: Thousands of famalies face ruin from the BTL timebomb

With the market flooded, rents falling and no hope of a cut in interest rates to boost sales, it is advice that will come too late to save many thousands of Britain's buy-to-let investors who had sought security in bricks and mortar, but were rewarded with only heartache and despair. Read more: Follow us: @MailOnline on Twitter | DailyMail on Facebook

Posted by adam @ 08:24 AM 2 Comments

Wednesday, December 19, 2012

Meanwhile, across the pond

Bloomberg: Bank of America Delinquent Loans Mean Losses ~ Mortgages

"Bank of America Corp. has amassed $64 billion of mortgages that are at least six months delinquent and have yet to enter foreclosure, more than twice the amount held by its four largest competitors combined. The loans are monitored as part of February’s $25 billion settlement between the top five U.S. lenders and state attorneys general over allegations of abusive foreclosure practices. BoA’s stockpile of deteriorating debt is mostly from its 2008 acquisition of Countrywide Financial Corp., once the nation’s largest mortgage provider. Wells Fargo & Co. (WFC), the biggest U.S. servicer, has $15.3 billion of such unpaid loans".

Posted by alan @ 09:46 PM 3 Comments

Didn't someone say London was getting expensive?

Reuters: BoE to pay new chief more than $1,000 a day for housing

"The payments to the former Goldman Sachs investment banker will be well above what current Bank governor Mervyn King receives - a salary of 305,000 pounds and a generous pension". B B B But the little girl next door could "leave rates unchanged" and "introduce more QE". ~ what a joke!!

Posted by alan @ 04:59 PM 8 Comments

With this fake market how can you talk about a 'rebound?

Counterpunch: The mysterious new housing bubble

The US housing market has never cleared or been allowed to work, so any 'rebound' is fake, driven by govt loans to underwater home owners. substantial Fed purchases of mortgage-backed-securities, artificially low IRs and inventory of available properties, highly leveraged buyers and Private Equity bandits getting easy terms for buying 'distressed' properties to rent to their former owners (and preventing FTBs from getting these good deals). Fed policies have led to a surge in short-term speculation in housing, more absentee landlords, fewer FTBs and,crucially, fewer mortgaged 'repeat buyers' moving up the ladder. Not much solid support for a 'rebound' then.

Posted by icarus @ 01:07 PM 3 Comments

Tuesday, December 18, 2012

Kensington and Chelsea?

Mail: UK's property market imbalance laid bare: House prices jump 3.4% in London but slump 11.7% in Northern Ireland

The imbalance in Britain’s property market was laid bare today by official figures showing house prices were up 1.5 per cent in the year to October – but more than half of the rise was delivered by London and the South East. The ONS figures, which lag other major house price reports by at least a month, showed a 0.2 per cent monthly rise to a UK average of £231,000.

Posted by hpwatcher @ 09:01 PM 4 Comments

Liars & thieves to be exposed.... at long last?

The Guardian: London rental sector "needs greater regulation"

Private tenants groups urge assembly to consider rent controls, longer tenancies and ban on "bogus and opportunistic" letting agent fees Those pesky tennants in London should finally get some security and protection from immoral landlords/lettings agents. I dont rent in London but know people who do/have.... poor buggers, at least some of them got on the ladder after help from BOM&D before it went crazy.

Posted by ajax23 @ 04:30 PM 0 Comments

CPI Inflation unchanged

SKY: Higher Food Costs Add To Inflation Woes

"The main rate of inflation remained unchanged in November as falling petrol prices failed to offset rises in many basic foodstuffs and home energy costs. The Office for National Statistics calculated that the CPI measure remained at an annual rate of 2.7% in November." "The RPI measure of inflation, which includes housing costs, fell to 3% in November from 3.2% in October as transport costs and mortgage interest payments fell".

Posted by alan @ 01:00 PM 3 Comments

Home buyers 'nervous about year ahead'

BBC NEWSS: Home buyers 'nervous about year ahead'

Looks like the Aunty tried to sneak this bearish article in on the quiet. One in four prospective first-time buyers believe it will take them at least 10 years to have a deposit in place, a survey has suggested.

Posted by mr x @ 07:43 AM 1 Comments

Monday, December 17, 2012

London-centric views

Evening Standard: When my dad was my age he owned a four-bed semi - so why am I still in a rented dump?

So much for Margaret Thatcher’s property-owning democracy. While once a young citizen might have aspired to join the lawnmowing classes, now they tread their laminate flooring, eyeing the patch of damp, wondering if the landlord will sort it out in time for the next tenant. We are becoming a nation of tenants; mine is one of those pokey one-beds in Hackney. My dad, noting the difference between generations, recently observed that when they were my age — i.e. after around a decade in the working world — they had acquired a four-bedroom suburban house, two cars and three children. Now so much policy is aimed at protecting them: any rise in house prices is still greeted as fabulous news, while there is a depressing lack of acknowledgement of this growing demographic split.

Posted by drewster @ 11:52 PM 17 Comments

Moneyfacts finds FTBs missing out on FLS funds FLS bank lending reserved for low-risk mortgage borrowers

A new analysis of the Bank of England’s Funding for Lending Scheme (FLS) concludes that there has been very little benefit for first-time buyers and homeowners with little equity in their property. The study found that the vast majority of funds borrowed by lenders under FLS has been passed on in loans to low-risk customers.

Posted by ben @ 05:47 PM 0 Comments

Land grabbing Pesky Normans

Guardian: High house prices? Inequality? I blame the Normans

William the Conquerer's descendants are still doing well out of a land grab that created the unequal England we know today

Posted by happy mondays @ 05:19 PM 15 Comments


Evening Standard: Cheap loans scheme fails to reach first-time buyers

First-time buyers and those with small deposits have seen barely any of the benefit of cheaper loan costs from the Bank of England’s Funding for Lending scheme, according to new figures.... Seen barely any benefit - are they having a laugh? All this has done is give homeowners cheap cash to move or remortgage, keeping house prices high. What would have worked is leaving the market to sort itself out. Credit would have dried up and prices would have fallen - now that just might have helped. If it ain't broken don't fix it, but if it is broken, don't try to fix it with the thing that broke it!

Posted by timmy t @ 03:24 PM 1 Comments

Illogical to work in London to keep your own rent high

Telegraph: Boris Johnson: keeping out immigrants to reduce house prices 'illogical'

To be fair, he is more than clear. Immigration supports house prices. However, I think, having lived in London, that prices in London are dictated by levels of housing benefit more than anything else so this is an ingenious explanation. If you gradually reduced the housing subsidy in areas of high unemployment then prices would certainly go down. Housing benefit in London is high because it has to compete with housing benefit which is why the bill spiralled off to the sky.

Posted by stillthinking @ 02:18 PM 5 Comments

How others see us

Washington Post: ‘Fiscal cliff’? Britain has already jumped

"Two-and-a-half years into Britain’s budget-cutting plan, the world’s seventh-largest economy has just emerged from a double-dip recession with economists warning that a third downturn could be on the way this winter".

Posted by alan @ 01:25 PM 1 Comments

You paying attention Osbourne?

The Grauniad: Secret film shows how buyers of luxury London homes can avoid millions in tax

Deals to sell ultra-luxury houses on a street dubbed "the world's most expensive terrace" have been structured by their developer in a way that would allow buyers to avoid millions of pounds in stamp duty, the Guardian has learned.

Posted by richy richless @ 12:20 PM 1 Comments

Largest Christmas asking price fall

AboutProperty: Rightmove: Biggest December drop ever

Sellers chopped more than ever before off December's asking prices, a huge 3.3 per cent.

Posted by phil @ 11:07 AM 1 Comments

The gift that keeps on giving

Daily Mail: 'Just don't bring a terrorist in the house': Family's warning to estate agent who then rented home to Abu Qatada

Just so that Mail readers can make a fair comparison between the value of homes in which American mass murderers and UK-based hate preachers live... •Terror preacher put up in £450,000 north London house without owner's knowledge •Landlady vows to evict 52-year-old and family, who are in property on six-month lease

Posted by mark wadsworth @ 10:51 AM 6 Comments

2013 house prices to rise (Of course they will, now here's your tablet & rest now)

Sellers drop prices to encourage pre-Christmas sales Rightmove reports record monthly fall in asking prices

House prices in December fell by the largest amount ever recorded in one month by Rightmove’s house price index, according to the property website.

Posted by ben @ 08:41 AM 0 Comments

Sunday, December 16, 2012

Thousands of families falling behind with rent or mortgages in the capital, where the risk is double

London households face highest eviction risk, charity warns: The Guardian

Households across London are at serious risk of losing their home, a leading charity has warned, with England's top 15 "eviction hotspots" all London boroughs.

Posted by alex @ 10:17 AM 0 Comments

The ‘mortgage prisoners

This is Money: 'We paid £180,000 for our house and now it is priced at £115,000': The two million who can't sell or move on

They cannot sell. They cannot move. Nor can they switch to a cheaper mortgage, or protect themselves against future interest rate rises. This is the plight of an estimated two million households – and, as Financial Mail reveals, their situation is set to get worse next year unless action is taken.

Posted by alex @ 10:06 AM 0 Comments

Friday, December 14, 2012

The US property recovery is here to stay – here’s what to buy

MoneyWeek: The US property recovery is here to stay – here’s what to buy

After a long and painful slide, US property prices have started to pick up this year. And this recovery is set to last. Here, Matthew Partridge picks the best ways for you to profit.

Posted by martingreen @ 04:05 PM 4 Comments

Boris proposes new 'London Rental Standard'

Planet Property: Boris proposes new 'London Rental Standard'

Interesting idea, but BoJo's approach seems to be heavily weighted towards the rental industry and property professionals rather than tenants ....

Posted by the planet @ 02:09 PM 0 Comments

Rics expects a three per cent rise in transaction levels in 2013 RICS: Rents to rise twice as fast as house prices in 2013

The Royal Institute of Chartered Surveyors (Rics) is predicting that the cost of renting a home in 2013 will increase by double the amount that the cost of buying a home will increase by.

Posted by ben @ 01:03 PM 0 Comments

2013 road to recovery

Telegraph: House sales to rise to highest since crash

In its housing market forecast for 2013, RICS predicted that there is likely to be a 3pc year-on-year increase in sales, with 960,000 transactions forecast to take place next year, which would be the highest number since 2007.

Posted by happy mondays @ 09:00 AM 5 Comments

Thursday, December 13, 2012

Yes, it's property based - no surprise there!

SKY: Maria Miller~Expenses Probe Is Launched

"The decision to investigate follows revelations that Mrs Miller claimed more than £90,000 for the cost of a house her parents had apparently been living in. She received £90,718 between 2005 and 2009 - almost the maximum allowed - for mortgage payments, bills and other costs at the property in south London".

Posted by alan @ 04:45 PM 2 Comments

Deliberate deleveraging

BBC: Many mortgage borrowers overpaying, lenders say

"A substantial minority of recent mortgage borrowers have taken advantage of low interest rates to pay off their loans more quickly, lenders say. Research by the Council of Mortgage Lenders (CML) shows that one third of the nearly seven million new borrowers since 2005 have deliberately overpaid".

Posted by alan @ 04:39 PM 3 Comments

Not towing the company line?

BBC News: Extent of housing development 'not worrying', says planning minister

The amount of built-upon land in England is "not worryingly high", Planning Minister Nick Boles has said.

Posted by richy richless @ 02:50 PM 4 Comments

Always up they say

AboutProperty: Is a "new normal" on the way for the property market?

Forecasters say the property market is heading towards a "new normal" in 2017, which will not bear much resemblance to the pre-credit crunch market of 2007. Gross mortgage lending will rise, but not reach anywhere near the levels seen in 2007. House prices will go up by 11.9 per cent compared to 2007, although that is a small increase over a decade if you consider the spiralling growth of the 1990s and early 2000s.

Posted by phil @ 01:45 PM 0 Comments

They own land; you know the rest

Unlocking the Potential of Empty Homes: Big house builders, Less houses, more profit

Borrowed from main forum. State gaves taxpayer money to landholders; they build fewer houses while increasing profit margins. Nice work if you can get it; this land cartel gig.

Posted by sibley's b'stard child @ 01:36 PM 4 Comments

New Accomodation for Working Londoners

Bloomberg: Qatar Fund, Canary Wharf Plan $1.6 Billion London Project

"Canary Wharf Group Plc and Qatar’s sovereign-wealth fund plan to build as many as 790 homes at the site of Royal Dutch Shell’s London headquarters to gain from surging prices and rising rents in the U.K. capital. Canary Wharf, which controls the financial district of the same name, and a unit of the fund will spend more than 1 billion pounds ($1.6 billion), including land purchased last year, to develop eight buildings on the south bank of the River Thames. Six of the buildings, including a 37-story tower, will be residential properties". "London home prices have risen 24 percent from a May 2009 low as a resilient job market fueled demand".

Posted by alan @ 10:23 AM 3 Comments

Panorama tonight

BBC News - Panorama: Britain's Hidden Housing Crisis

Britain is in the grip of a housing crisis of a sort not seen before - where even the most unexpected people are finding themselves homeless. Every two and a half minutes someone in Britain is threatened with losing their home. This Panorama Special follows four stories over five months and reveals the devastating impact of being evicted from your own home and losing everything - from an investment banker now sleeping rough in a park in Croydon; to a businessman who lost his company in the recession; and a grandmother who gets cancer, has to stop working and then has her house repossessed

Posted by richy richless @ 08:57 AM 12 Comments

Doomsters denied?

Guardian: UK unemployment falls as private sector jobs hit all-time high

It's hard to see how we can have a full on HPC with rising employment. Even if some of the new jobs are low pay and topped up with benefits, today's employment news seems to pretty much bury the chances of significant house price drops from here. Anybody care to argue otherwise?

Posted by quiet guy @ 12:01 AM 5 Comments

Wednesday, December 12, 2012

Print or twist?

Bloomberg: Fed Expands Asset Buying

"The Federal Reserve said it will buy $45 billion a month of Treasury securities starting in January, expanding its asset-purchase program, and for the first time linked the outlook for its main interest rate to unemployment and inflation". "The trade deficit widened in October as exports slumped the most in four years, a Commerce Department report showed yesterday. Spending on business equipment and software dropped at a 2.7 percent annual rate from July through September, the worst performance since the three months to June 2009, when the recession ended, according to another Commerce Department report". (Expect the BoE to follow suit in 2013).

Posted by alan @ 06:33 PM 2 Comments

Words fai

BBC: Hector Sants joins Barclays to improve its reputation

Hector Sants, the former chief executive of the Financial Services Authority, is joining Barclays bank. He has been given a new top job to improve the bank's reputation with governments and regulators internationally. His salary is not being disclosed, as he will not be a board director.

Posted by mark wadsworth @ 06:12 PM 4 Comments

I reckon at least 30% BTL is in the same boat.

DM: Slum landlord faces letting ban ASBO

McCabe, of Plymouth, Devon, leased rooms with only basic furniture, and sometimes not even a bed to vulnerable people on benefits - many with alcohol problems, it was said.

Posted by peter_2008 @ 06:02 PM 0 Comments

Buy - before inflation soars?

Telegraph: Mortgages for first-time buyers rise by nearly a fifth

"Mortgages for first-time buyers jumped by nearly a fifth in October, with banks advancing 20,000 loans worth £2.5bn, the Council of Mortgage Lenders said". (or is it wise to wait for a fall in prices?).

Posted by alan @ 03:46 PM 2 Comments

Top Christmas insurance claims ... reindeer damage fails to feature

Planet Property: Top Christmas insurance claims ... reindeer damage fails to feature

We hoped for roofs damaged by reindeer and fat men stuck in chimneys, but no such luck, according to this infographic on xmas claims. Bah, humbug!!

Posted by the planet @ 02:00 PM 0 Comments

"keep rates on hold for an extended period of time" - So what is 5 years?

FT: Carney broaches dumping inflation target

Mark Carney, the next governor of the Bank of England, has suggested he will act much more aggressively to revive the UK economy when he takes charge next summer, including dumping the BoE’s much-vaunted inflation target if growth fails to pick up. In a clear break with the views of the BoE’s current senior management, Mr Carney, now governor of the Bank of Canada, said on Tuesday that central banks should consider more radical measures – such as commitments to keep rates on hold for an extended period of time and numerical targets for unemployment – when rates are near zero. More If those measures fail to have the desired effect, Mr Carney said central banks should consider scrapping their inflation targets – a cornerstone of economic policy around the world in recent decades

Posted by hpwatcher @ 01:13 PM 13 Comments

Homeys wail about lack of affordable housing


“Downsizing is great in theory but is a bit trickier in practice. It may mean moving away from your friends and family, often to a smaller property with no space for children or grandchildren to stay over.” Why on does "downsizing" mean moving to a different area? Is it so hard finding somewhere cheaper near where your friends and family live? The choice is: smaller home in same area or same size home a bit further away, not both. And if you live near your children and grandchildren, why would you need a spare room for them? Homey non-logic at its worst.

Posted by mark wadsworth @ 12:23 PM 5 Comments

Back of the net, say landowners.

Estate Agent Today: Home ownership falls as more turn to renting

Home ownership has declined to 64% among households in England and Wales, with numbers of private tenants sharply up, according to the latest Office for National Statistics figures. Working to the results of the 2011 census, the ONS says that 14.9m households owned – either outright or with a mortgage – their own homes last year, a decrease of 4% since 2001. In London, home ownership has fallen to the extent that in inner London, only just over one-third of homes are owned. In Hackney, the lowest level of home ownership in the country is recorded at just 26.1% of households

Posted by sibley's b'stard child @ 12:03 PM 6 Comments

CML say lending up

AboutProperty: Funding for Lending fires up mortgage market

Lending to first-time buyers picked up during October, suggesting that the government's Funding for Lending scheme may be coming to fruition. Following on from a slow September, the Council of Mortgage Lenders (CML) report loans to first-time buyers are up 14 per cent in October.

Posted by phil @ 11:59 AM 0 Comments

European housing markets weakest in the world

Planet Property: European housing markets weakest in the world

Nine of the weakest housing markets in the world are European and price falls are actually accelerating in 6 of them .... Ireland the weakest of the lot; UK ranked 31 out of 44 (descending order).

Posted by the planet @ 11:42 AM 0 Comments

Private rented sector "not a panacea" for ills of housing market.

Planet Property: Private rented sector "not a panacea" for ills of housing market.

Figures from Hometrack show that 75% of private lettings last year were concentrated in a quarter of the UK. This has considerable significance for investors, and for those who think the rental market can solve the housing crisis.

Posted by the planet @ 10:54 AM 0 Comments

CML data shows slight rise in other lending figures CML reports rise in lending to first-time buyers

The number of mortgage loans to first-time buyers increased in October, according to the latest report from the Council of Mortgage Lenders (CML).

Posted by ben @ 10:52 AM 0 Comments

OBR plays down impact of loss of AAA rating OBR says loss of AAA rating would not raise borrowing costs

The Office for Budget Responsibility (OBR) has suggested that the UK would not face a major increase in borrowing costs if it lost its AAA credit rating.

Posted by ben @ 10:48 AM 0 Comments

Tuesday, December 11, 2012

Finally its mainstream - 12 years too late...

Daily Telegraph: Britain’s monumental housing crisis is the scandal of our age

Homelessness has risen by more than a quarter in three years, with the number of families forced to live in B&Bs, often in conditions reminiscent of the Dickensian workhouse, up by 57 per cent in the past 12 months.

Posted by eric pebble @ 11:30 PM 0 Comments

Mugabe's ghost re-appears

Telegraph: Mark Carney hints at need for radical action to boost ailing economies

"Mark Carney, the incoming Governor of the Bank of England, has suggested abandoning inflation targeting to rescue ailing economies in a speech that rewrote the central banking rulebook". "Mr Carney stressed that he saw inflation targeting as “flexible” and that monetary policy should “lean against” asset bubbles such as property booms even if it meant missing inflation targets". (Let inflation rip, print money, keep benefits indexation at 1%, uncork another bottle of claret).

Posted by alan @ 10:23 PM 9 Comments

Britain is becoming a nation of renters and overseas investors gobble up the housing stock

Telegraph blogs: Britain is becoming a nation of renters and overseas investors gobble up the housing stock

"Lack of mortgage finance is not the main issue here. Indeed, there is much merit in going back to a system where mortgages are properly priced and a reasonable dollop of equity is demanded. Rather the problem lies with unduly oppressive planning restrictions and still unsustainably high house prices."

Posted by becky @ 02:31 PM 11 Comments

Global property market?

Mike Shedlock (Mish): Home sellers get realistic in Australia

'Real estate agents in Australia who assured everyone for years there was no housing bubble and home prices would only ever go up because there was a "shortage of houses" are now telling everyone who is stuck in a house they cannot afford that they have prices too high.' "Many are not willing to accept where the buyers are at. They can't handle, psychologically, that this is what their property is worth,"

Posted by will @ 11:40 AM 0 Comments

Robbing Peter to pay Paul & 3 day weeks in low paid service jobs to save the UK

The Guardian: House prices and jobs surveys offer UK economy glimmer of hope

Unfounded blind optimism from the vested interests.....yet again. Apprarently an economy based on service industries and part time working offers a glimmer of hope in the jobs market. Confirming manufacturing has slid beyond recovery. All the while, goverment/bank sanctioned theft (in the form of QE/forebearance/Low IR etc etc) from savers and pensioners to bail out the greedy and feckless cause the ruination of the countrys socail and financial fabric. We are over half way through the 'lost decade' now and 2013 will be far worse with no one off Royal or Olympic factors to trumpet. All starting to look a bit like the opening credits in the Film 'The Running Man'.

Posted by ajax23 @ 10:47 AM 0 Comments

Rics says confidence growing slowly Rics reports increase in enquiries from potential buyers

The latest survey from the Royal Institution of Chartered Surveyors (Rics) suggests that confidence is returning to the property market as interest from buyers grew again in November.

Posted by ben @ 09:25 AM 3 Comments

Capital's house prices fall... but Edinburgh not London.

AboutProperty: House prices fall in Scottish capital

Edinburgh's house prices took another tumble during November, leaving them 6.1 per cent below the same period last year.

Posted by phil @ 09:20 AM 2 Comments

For November 2012

Bloomberg: U.K. House-Price Gauge Declines as Demand Weakens, RICS Says

The index slipped to minus 9 from minus 7 in October, London-based RICS said in an e-mailed report today, citing a monthly poll of property surveyors. A result below zero means more of them saw values drop than increase last month. A measure of new buyer inquiries fell to 11 from 17.

Posted by dill @ 08:45 AM 5 Comments

Monday, December 10, 2012

Survey reveals grim cost of housing crisis on young people

This is Money: Living with their parents, unable to afford children and no prospect of owning a home

Thousands of young couples are putting off having children because they cannot afford to have a baby and pay the rent, according to a new study which reveals the crippling social cost of the housing crisis on young people in the UK

Posted by alex @ 09:53 PM 1 Comments

No new news

The Grauniad: Generation Rent: why millions are locked out of owning homes

Re-hash of some existing stats so not a lot new but there are amusing comments... "i do however maintain i wish to punch the next landlord squarely in the ****ing face whos "hiking up prices" to take advantage of the market."

Posted by richy richless @ 01:42 PM 6 Comments

Yet another gift to homeowners from taxpayers...

Torygraph: Autumn Statement: Osborne delivers an early present to homeowners

“We estimate that proximity to a Tube station can add 10 to 15 per cent to the value of properties,” So why pray tell should tax payers pay a cent to build the extension?

Posted by mombers @ 01:25 PM 4 Comments

Subscribers content - Where to now for the British property market?

MoneyWeek: Where to now for the British property market?

What next for British property? Will the gap between London and the rest of the country close? John Stepek discusses with a panel of experts what lies in store for Britain's housing market.

Posted by martingreen @ 12:22 PM 3 Comments

Freeing up homes

AboutProperty: Housing for older people could solve first-time buyer crisis

The government is missing a trick by not focussing more on housing for older people, according to a retirement rental specialist.

Posted by phil @ 11:30 AM 0 Comments

Unstettled ‘generation rent’ locked out of home ownership

Planet Property: Unstettled ‘generation rent’ locked out of home ownership

Not sure about the slightly whingy narrative style of this IPPR video … but the points raised in it, and in the accompanying report, about the social and personal consequences of creating a 'generation rent' are beyond dispute.

Posted by the planet @ 10:32 AM 0 Comments


WSJ: U.K. Is New Recruit on Europe's Sick List

"The U.K. has avoided the misery suffered in parts of the euro zone, but five years into the crisis it is looking as though tough decisions are being avoided by a political elite happy to hide behind the convenient fiction that a slump caused by the biggest credit and housing bubble in the country's history is mainly cyclical."

Posted by dill @ 10:15 AM 1 Comments

Sunday, December 9, 2012

Follow the money

Mirror: Prime Minister David Cameron vetoes plans for new property tax after fund-raisers' threat

DAVID Cameron personally vetoed plans for a new property tax after donors threatened to ban Tory party fund-raising events from their mansions. Super-rich donors warned the Prime Minister that if he taxed their London townhouses and sprawling country estates they would refuse to host dinners to boost the Conservative Party's coffers. A senior insider revealed: "The message went out - tax our mansions and you can forget us ever holding another black tie event for you at our homes ever again. Lib Dem peer Lord Oakeshott accused Cameron and Osborne of "performing a hand-brake turn on donor orders". He told the Sunday Mirror: "The Tories are too scared to make their backers pay more than a £26-a-week council tax on their multi-million pound Mayfair mansions."

Posted by drewster @ 11:56 PM 7 Comments

Preview of Panorama ~ due this week

Independent: Homeless banker hits rock bottom

"Britain's Hidden Housing Crisis", to be broadcast on BBC1 this week (Thursday 9.00pm). "Almost 150,000 homes have been repossessed since 2009, and more than 51,000 households are living in temporary homes".

Posted by alan @ 01:32 PM 2 Comments

Saturday, December 8, 2012

Expect years and years of this...

Mail: Welcome to Zombie Britain? Flatlining economy leads to paralysis in jobs market, housing and youths leaving home

The flatlining economy may be in a worst state than it looks, according to a new method of assessing the nation’s fortunes. Jobless figures, house prices and government debt do not show the whole picture, say creators of the so-called zombie index.

Posted by hpwatcher @ 08:38 AM 1 Comments

Friday, December 7, 2012


DM: Land banking fraud jailed

Two men have become the first in Britain to be jailed for land banking fraud today after conning elderly and vulnerable people out of £3million. Well, this has been ravaging for years and I can still see thousands land bank ads on rightmove. I am shocked that only one is caught so far. Crime really pays, I suppose.

Posted by peter_2008 @ 02:29 PM 7 Comments

Nah. Can't be - housing is still better than ever...

FT: Manufacturing data stoke triple dip fears

Dire figures suggest UK economy will shrink in final quarter

Posted by hpwatcher @ 12:17 PM 9 Comments

Taken from forum.. Interesting viewing

One step at a time.....

BBC: Council tax on second and empty homes in Camden to rise

London's Camden council has announced plans to remove some council tax benefits currently enjoyed by owners of second and empty homes.

Posted by tom101 @ 12:38 AM 7 Comments

Thursday, December 6, 2012

Expecting trouble?

Mortgagestrategy: AS 2012: Govt extends support for mortgage interest scheme until 2015

The Support for Mortgage Interest scheme, due to expire next month, has been extended until March 2015.

Posted by dill @ 11:48 AM 20 Comments

Was it?

HomePurchaser: Autumn statement 'missed opportunity'

Yesterday's autumn statement was a missed opportunity to tackle the country's "chronic" undersupply of homes, say housing chiefs.

Posted by phil @ 11:30 AM 0 Comments

Tullett Prebon say

Public Finance: Autumn Statement: lemmings in denial

Dr Tim Morgan is head of global research at Tullett Prebon. His analysis starts:"The chancellor tried to be upbeat today, but the serious state of the economy cannot be hidden. Neither George Osborne nor Ed Balls is addressing the real problems of our obsession with consumption, lack of focus on production and acceptance of ‘spiv capitalism’......."

Posted by alan @ 09:58 AM 3 Comments

What did Osborne say in his "fiscally neutral" statement? Autumn Statement: Key points at a glance

George Osborne outlines his Autumn Statement to parliament this afternoon as he tries to square the circle between cutting government borrowing and spending on investment vehicles that will help the economy grow and hopefully cut the deficit organically.

Posted by ben @ 09:57 AM 0 Comments

-1.3% YoY +1.0% MoM

Halifax: House Price Index November 2012

Commenting, Martin Ellis, housing economist, said: "There has been very little change in house prices overall during the past year with the average UK price in November almost identical to that in November 2011. Prices in the three months from September to November were 0.7% lower than in the preceding three months. "Both demand and supply pressures in the market have altered little during the course of 2012, and this has been the key reason for the lack of anything other than modest changes in house sales and prices at a national level compared with a year ago.

Posted by quiet guy @ 09:54 AM 7 Comments

Who has gained and who has lost from Mr Osborne's statement Autumn Statement: Winners and losers

Inevitably as with any financial statement or budget from a government, there will be some people who benefit more than others from the announcements. George Osborne’s Autumn Statement has been tagged as “fiscally neutral”, which means any new spending commitments are balanced out by savings and tax rises in other areas.

Posted by ben @ 09:54 AM 0 Comments

Wednesday, December 5, 2012

Fast track federalisation?

Telegraph: Euro blueprint gives Brussels economic sovereignty over members

Eurozone countries would lose the right to set their own budgets and end up surrendering economic sovereignty to Brussels under a blueprint to “complete” the European Union’s single currency.

Posted by dill @ 10:58 PM 3 Comments

Top stuff from the ALTER secretary

Prospect Magazine: The Rise Of The Freeloaders

Recent calls by the Business Secretary Vince Cable to introduce a mansion tax are welcome, and are the only serious attempt by any major party to tax property progressively. However, a mansion tax fails to target freeloading since, like council tax, it is based on the buildings as well as the land. Cable is fully aware of this, but shies away from the political battle that would be needed to promote a fully fledged land value tax.

Posted by mark wadsworth @ 06:24 PM 5 Comments

Could a Property Tax like this work for the UK?

BBC: Ireland budget: Local property tax introduced

"The Irish government has announced a fresh package of spending cuts and tax rises worth billions of euros in its budget for 2013. These include a new property tax of 0.18% of the value of a home up to 1m euros ($1.3m; £800,000)". "Ireland has gotten this tag that it is willing to do whatever it takes to remain on track, even if some of the measures are unpopular. They are taking a few measures that some other countries have been unwilling to look at."

Posted by alan @ 06:20 PM 2 Comments

Give us an L, give us a T... wot no V?

Estate Agent Today: Stamp Duty is set to be reformed in Scotland and replaced with a new regime.

Stamp Duty is set to be reformed in Scotland and replaced with a new regime. The Scottish Government, which is currently setting the UK political agenda for the private rented sector, has introduced the Land and Buildings Transaction Tax (Scotland) Bill.

Posted by rantnrave @ 05:46 PM 0 Comments


AboutProperty: Autumn statement: Reactions in full

Today's autumn statement from George Osborne has, as ever, divided the property industry...

Posted by phil @ 05:10 PM 0 Comments

Arguments against property taxes from an MP

City AM: The Treasury will gain nothing from property tax hikes

The private rental sector 'actively fuels economic growth'. The increased costs for landlords will result in higher rents. Cable’s glib comment that it is easier to tax property because it cannot be transported to Liechtenstein completely misses the point (apart from when we are talking about Starbucks of course).

Posted by ontheotherhand @ 02:58 PM 5 Comments

Housebuilding - another failure?

AboutProperty: Chancellor missing "golden opportunity" say housing chiefs

The chancellor has missed a golden opportunity to address the "urgent housing shortage" in today's autumn statement, say the Chartered Institute of Housing (CIH). George Osborne announced £225m to boost the construction of 50,000 new homes in his budget speech to the House of Commons, but the CIH accuse him of failing to recognise the scale of the problem.

Posted by phil @ 02:56 PM 0 Comments

Tuesday, December 4, 2012

UK Debt Dynamics

Market Oracle: Budget Deficit Crisis is Pure Propaganda

"The focus of this article is on Britains debt dynamics as the people of Britain continue to be bombarded with propaganda in respect of the unfolding Inflationary Depression that the country has been immersed in since at least early 2008. In terms of politics, propaganda takes the form of declarations for ever greater needs for economic austerity by the Coalition government whilst the Labour party as usual takes the opposite line, when the reality is that there has been no real net economic austerity in Britain". (Lots of graphs & analysis - enjoy)

Posted by alan @ 07:40 PM 10 Comments

Time for a tax revolt!! ??

Yahoo: Britain’s families are ‘most taxed on the planet’

The report demonstrates that the UK's marginal effective tax rate – that is to say what people pay per pound earned - is much higher than the countries with the second and third highest tax rates: Ireland (64%) and Canada (61%). By comparison, Chilean families with one bread-winner pay just 7% tax - the lowest in the developed world, according to CARE's research.

Posted by mark @ 10:17 AM 30 Comments

New orders for housebuilding drop Construction PMI dips to lowest level for almost four years

Activity in the construction sector declined in November and is now at its lowest for four years, according to the latest Markit Purchasing managers’ index (PMI). The PMI dropped to 49.3 down from October’s reading of 50.9 and is at its lowest level since August.

Posted by ben @ 10:15 AM 0 Comments

But still a 2% rise expected

BuyToNet: Rental rises to slow in 2013

Miles Shipside, director at Rightmove said: “Landlords appear to be becoming increasingly aware of the need to strike a balance between long-term security and short-term gains. They need to weigh up whether it is better to ‘stick’ and hold rents for a model tenant or ‘twist’ and chance a rise and run the risk of ending up with a less desirable occupant, or even a void."

Posted by phil @ 09:23 AM 0 Comments

Monday, December 3, 2012

Lack of talent deters business from London?

BBC: London rents 'deter' talented executives, says Vodafone

The high cost of renting a home in London is deterring talented executives from moving to the capital for work, ... ...London could be "on the edge of a housing crisis".

Posted by rumble @ 10:35 PM 15 Comments

The value of your property investment may go down as well as up

BBC News: Complaints over quick house sale companies

In a television advert, Gateway Homes UK said a sale could be "finalised in as little as seven days". Pat Hardy, from Teesside, said: "The day before the removal men were due to arrive I got a phone call. I had agreed to sell the property at £75,000 - they offered £40,000. The next day the price was increased to £50,000 but the deal still collapsed." Mrs Hardy said: "They made me feel like I was worthless. What we had worked for for years to put into the property - they were saying it was worth nothing."

Posted by drewster @ 04:28 PM 2 Comments

You can rig supply, but you can't force demand

Guardian: 'White elephant' funding for lending scheme fails to boost loans

Data shows the six banks and building societies that used FLS funds sucked a net £1bn out of economy [Check the official page:]

Posted by dill @ 03:56 PM 1 Comments

Nationwide makes 4th mortgage rate cut in two months Nationwide cuts mortgage rates for first-time buyers

Nationwide has cut the rates on its first-time buyer mortgages by 0.70 per cent on some of its range of products. There will be cuts across all loan-to-value (LTV) tiers including both fixed rate and tracker mortgages.

Posted by ben @ 01:57 PM 0 Comments

Won't someone please think of the junior negs?

Estate Agent Today: Agents could go to the wall next year, warning

Some regional estate agents could go to the wall next year, a leading restructuring expert has warned. He said property agents, along with accountants and law firms, were at risk. He said: “I think we’ll see some failures in 2013 in the accountancy, legal and [property] agent sectors. If businesses are burying their heads in the sand, then it’s looking at death by a thousand cuts.” Firmin also said businesses across most sectors would have flat margins next year. He went on: “A lot of people are asking, are we going to be a Japan and have a lost decade. It’s not inconceivable.”

Posted by sibley's b'stard child @ 01:35 PM 4 Comments

One of Thatcher's seven wize men, Patrick Minford, says they're going to jump 29% by 2016

Western Daily Press: Surge in house prices predicted for West homes

Property owners in the South West can expect a big jump in the value of their homes over the next few years, according to new research. Industry experts says house prices in the region are set to jump a cumulative 29 per cent between now and the end of 2016. The forecast comes in the BNP Paribas Real Estate’s recently published Housing and The Economy report pulled together by Professor Patrick Minford, a former economics adviser to Margaret Thatcher and current Professor of Economics at Cardiff Business School.

Posted by hatonthebed @ 12:49 PM 2 Comments

Get yer bear snacks! Get yer bear snacks!

City AM: London house prices slide as gloom sets in

House prices fell 0.2 per cent across Greater London in November, Hometrack said, faster than the 0.1 per cent national fall. And the housing dynamo of central London was behind this decline, the property analytics firm showed. “The driver of price falls emanated from central London where they slipped 1.2 per cent over November,” said Hometrack research director Richard Donnell, who blamed rising supply, stamp duty hikes, and the fear of even more taxes and charges coming in.

Posted by mark wadsworth @ 10:51 AM 3 Comments

We own land! Give us money!

City AM: State urged to support first time buyers

GIVING support to first time buyers (FTBs) would ease the pressure on the hardest hit sector in the housing market and give a strong boost to the industry, economists from the Ernst and Young Item Club argue today. The respected analysts are calling on George Osborne to reinstate the stamp duty holiday for FTBs on houses under £250,000, a programme which expired in March. Alternatively the report suggests expanding the First Buy home equity scheme, again giving FTBs a better chance of getting on the ladder.

Posted by mark wadsworth @ 10:48 AM 5 Comments

Predictable. Time for a LVT?

Prime Resi: SDLT avoidance schemes double

"The March budget’s assault on prime property owners and investors has caused the number of stamp duty avoidance schemes to double this year, according to legal bods Pinsent Masons.Ten schemes, including setting up offshore LLPs as property investment vehicles, have been reported to HMRC since March, compared to just five in the half-year prior to the budget. The overall number of SDLT avoiders has, however, been reduced by the Treasury’s clampdown"

Posted by alan @ 10:33 AM 3 Comments

Osborne will not get deficit down as proportion of GDP Autumn Statement: Osborne will admit he has missed targets

The Chancellor, George Osborne gave a clear indication that he will admit that he is going to miss one of his vital deficit targets in an interview with Andrew Marr on the BBC yesterday.

Posted by ben @ 10:09 AM 0 Comments

The hidden sub-prime mess sees the light of day

Telegraph: HSBC to start selling £25bn of toxic US debt

"HSBC is preparing its first sale of sub-prime loans since the height of the financial crash, as Britain's largest bank begins to off-load more than $40bn (£25bn) of toxic US debt it still holds on its books". "The disposals will mark the first time HSBC has sold any of its holding of sub-prime debt since the collapse of Lehman Brothers in September 2008 and is intended to kick off the sale of the $44.2bn of toxic debt still held by the bank. HSBC was one of the first banks to recognise the problems in the US sub-prime housing market, where millions of Americans were given loans to buy properties they could not afford".

Posted by alan @ 09:53 AM 1 Comments

Interest-only set to become "niche" product NatWest and RBS pull out of interest-only mortgage market

Three major mortgage lenders have thrown the future of interest-only mortgages into doubt by pulling out of the market. The Royal Bank of Scotland (RBS) NatWest and the Coventry Building Society have all withdrawn interest-only mortgages from their portfolio of products.

Posted by ben @ 09:36 AM 0 Comments

10% of GDP? Why, that is my house deposit!

UKIP: How much does the European Union cost Great Britain?

UKIP reckon Europe is costing Britain 10% of her GDP. This could be conservative when you take into account not primarily the taxes but, also the regulations and being forced to extend our welfare state to non-citizens. Regarding regulations, a friend of mine list his job because Europe bought in a new regulation requiring the registration truck door designs. He was an engineer building back doors for trucks with hydraulic lifts. His company couldn't afford to register their patented designs with the EU and where consumers once had 100's of options then now have a handful. Obviously, big producers were able to pay hundreds of thousands to register their design. Yet another example of the EU being a government for and by the corporations, yet it is nimble small business which made Britain.

Posted by libertas @ 07:26 AM 7 Comments

Sunday, December 2, 2012

The "Cliff" will affect the UK and it's worsening debt position

Telegraph: Timothy Geithner warns US could fall off 'fiscal cliff'

"US Treasury Secretary Timothy Geithner has pressed Republicans to offer specifics on deficit reduction, though he admitted that he "can't promise" that the country won't fall off a looming "fiscal cliff" of sharp tax hikes and spending cuts".

Posted by alan @ 08:57 PM 4 Comments

Not all lenders stick to their bargain

Mail: Offset mortgage borrowers warned not to overpay as lenders shut door on releasing funds

"Hundreds of thousands of borrowers with ‘flexible’ mortgages are being warned not to overpay – because lenders are increasingly likely to prevent them borrowing again in future. They were hugely popular before the financial crisis, with most lenders offering one or more versions. Borrowers could overpay when they had spare cash, bringing down the total cost of interest. But crucially, they would then be able to ‘take their overpayments back’ if they needed to at a later date", ...but

Posted by alan @ 04:08 PM 0 Comments

Saturday, December 1, 2012

MP's 2nd homes ~ sleight of hand

Telegraph: How MPs avoided expenses payback

"In 2010, MPs were told that at the end of two years they would no longer be allowed to claim mortgage interest on expenses. Dozens who continued to claim during this period were told that if the value of the second home increased, they must hand over the “capital gain” to parliamentary authorities. But The Sunday Telegraph (ST) has found that a number of the MPs told parliamentary authorities that the value of their second home had fallen in the two-year period — meaning they did not have to pay back a penny. ST's investigation found that in some cases the MPs’ house prices had fallen despite increases of as much as 12.65 per cent in average values in their neighbourhoods in the same period!"

Posted by alan @ 11:02 PM 3 Comments

Stability downgraded?

Telegraph: Moody's downgrades eurozone's rescue funds

"The eurozone was dealt a fresh blow as Moody’s Investors Service downgraded the region’s rescue funds and unemployment hit a new record high". "It also lowered the European Financial Stability Facility’s provisional rating to (P)AA1 from (P)AAA". "Meanwhile, the German parliament approved a debt deal for Greece, paving the way for a further €44bn (£36bn) of rescue money" ( the can is kicked further down the road for a month or so).

Posted by alan @ 08:52 AM 3 Comments

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