January 2013 Archive

Wednesday, January 30, 2013

Spinal Tap economics

Shaun Richards at Mindful Money: What is the state of the UK’s housing market and monetary system?

"If we look at the level of official support in this area it may not quite be at the “turn up to eleven (out of ten)” scale pioneered by Spinal Tap but it is not far off. Measure has followed measure and whilst much of this has been yet another disguised aid package for our banking sector some has flowed also into the housing market. New buyers have the prospect of some lower mortgage rates although existing ones have seen higher and not lower rates. Frankly this looks an utter mess to me. After all if we tempt people into the housing market and hold it up by any means what happens next? They will not thank us if we then see house prices fall as the stimulus measures are withdrawn. This poses the question how will they be withdrawn which quickly morphs into an if they are?!"

Posted by quiet guy @ 11:18 PM 1 Comments

How much inflation can they print?!

Market Oracle - Nadeem Walayat: Going Beyond the Proton Gradient - Stocks Stealth Bull Market Analysis 2013 Part1

"The overall big picture of one of exponential inflation as a consequence of government money printing fraud and the technological human productivity boosting mega-trends brought to competitive markets around which asset price booms and busts oscillate ever higher. Therefore investors need to protect themselves from Government wealth consumption (taxes) and inflation (loss of purchasing power) by channeling their wealth into assets that are leveraged to wealth creating innovation (technology stocks) and are tax efficient such as ISA's in the UK." - I would add, that gold bullion should form a major part of that portfolio. USA, Britain, Europe and Japan can print more, because of their global reserve status. However, eventually, this pumps up commodities, e.g. gold, to replace paper "money"

Posted by libertas @ 06:56 PM 0 Comments

First France, now Zimbabwe, UK next?

Independent: Zimbabwe finance minister reveals country has just £138 left in the bank

"Zimbabwe’s finance minister has revealed the extent of the country’s economic plight by announcing it has just £138 remaining in its bank account".

Posted by alan @ 02:39 PM 4 Comments

Nationwide makes fourth January cut of mortgage rates

Myfinances.co.uk: Nationwide cuts rates on fixed and tracker mortgage deals

Nationwide has announced further rate cuts to some of its mortgage products. It is cutting tracker rates by up to 0.50 per cent and selected fixed rate deals by up to 0.30 per cent.

Posted by ben @ 01:17 PM 0 Comments

Signs that FLS is working?

Myfinances.co.uk: Mortgage approvals rise to highest level since January 2012

The Bank of England reports that mortgage approvals rose in December to the highest figure since January 2012. There were 55,785 mortgage approvals in December up from November’s figure of 54,011.

Posted by ben @ 11:57 AM 0 Comments

Transaction levels slide in latter half of 2012

Planet Property: Transaction levels slide in latter half of 2012

The number of properties sold slipped significantly in the second half of last year, says Land Registry data. This is a market in recovery?

Posted by the planet @ 10:37 AM 0 Comments

Consequences of building more roads and houses

Grauniad: Hedgehog population in rapid decline

Hedgehog population is down from over 36 million in 1950s to less than 1 million today. Causes include habitat loss and fragmentation due to development, including housing and roadbuilding. (So, need to preserve the greenbelt and get house prices down by credit controls, LVT and higher interest rates. Not the thoughtless response of just building more houses anywhere.) Cue derision from car lovers and people who think house prices are high because of supply shortage.

Posted by nickb @ 10:18 AM 9 Comments

Tuesday, January 29, 2013

Land Registry reports annual house price increase of 1.7 per cent

Myfinances.co.uk: Land Registry: House prices rise by 0.8 per cent in December

The Land Registry says that UK house prices went up by 0.8 per cent in December and by 1.7 per cent in 2012. The Land Registry bases its figures on actual sales, whilst the Halifax and Nationwide use their own mortgage approvals figures.

Posted by ben @ 07:13 PM 0 Comments

Price of supporting House Prices & Banks

Telegraph: QE has left companies with a £90bn pension bill, MPs told

"The Bank of England's £375bn policy of quantitative easing has left companies having to find £90bn to fill pension fund deficits, MPs were told". (UK oldies benefit from house prices staying high, but have reduced pensions to spend).

Posted by alan @ 05:49 PM 3 Comments

But Mr Assetz said to buy in Detroit !

Daily mail: Blighted home that says Detroit is going bankrupt

A vandalised home covered with red spray paint and smashed windows, sits vacant in an east side neighborhood of Detroit. The street used to be a busy hub of families, but its occupants have fled their homes leaving whole blocks empty and dark. The city's budget problems have deepened to such an extent that it could run out of cash in a matter of weeks or months and ultimately be forced into what would be the largest-ever Chapter 9 municipal bankruptcy filing in the United States.

Posted by mark @ 12:48 PM 3 Comments

Not changed since 1997

AboutProperty: Stamp duty 'bunching' could hit property market

The stamp duty bar must be raised or there is a risk that properties will begin to bunch at just under the £250,000 line, warns the CEO of the London Central Portfolio. Currently stamp duty jumps from one per cent to three per cent when a property sells for over £250,000, but when that line in the sand was set in 1997 the average house price was much lower.

Posted by phil @ 12:09 PM 2 Comments

Treasury Select Committee says QE raid poses threat to MPC independence

Myfinances.co.uk: MPs warn Osborne to stick to March budget for tax changes

The Treasury Select Committee (TSC) has criticised the way that George Osborne uses his “mini budget”, the Autumn Statement, as a method to add to the main budget. The TSC say that the Chancellor should make all tax decisions in his March budget and make good on his commitment to restore the spring budget to its place as the central vehicle for making economic and financial policy.

Posted by ben @ 10:41 AM 0 Comments

Monday, January 28, 2013

So where are we now?


Very interesting to see this from 2009 - I guess that Jonathan Davis didn't think that UK government would be so stupid to keep interest rates at an all time low for 5 years, and then print and then pump billions and billions (£80,000,000,000) into the banks to provide cheap mortgages - FLS. Well, if a house price bubble can work for Blair - and keep him in power - then why not for Cameron?

Posted by hpwatcher @ 08:28 PM 39 Comments

Chelsea cut rate for 40% LTV borrowers to 1.99%

Myfinances.co.uk: Chelsea BS offer two-year fixed rate mortgage at 1.99%

The Chelsea Building Society has cut the rate on its two-year fixed rate mortgage for borrowers with a loan-to-value ratio of 60 per cent to just 1.99 per cent.

Posted by ben @ 07:10 PM 0 Comments

Kom Pen Say Shun (hat tip to Littlejohn)

Telegraph: Homeowners can claim compensation if HS2 northern extension hits house prices

"Homeowners worried that house prices may be hit by the controversial HS2 railway’s northern extension, whose proposed route was announced by the Government today and may be able to claim compensation – but the devil is in the detail, with just a few yards dividing winners and losers".

Posted by alan @ 02:35 PM 5 Comments

Meanwhile...back on planet Earth

The Guardian: Estate agents upbeat about property prospects for 2013

Survey reveals Estate Agent housing market optimism for sales in new year despite sellers having to drop asking prices in January.... And in other news Pig farmers say eat bacon, Car salesman say you need a new motor and Snake oil is apparently a tonic for any ill. Good news asking orices are done mind you.

Posted by ajax23 @ 01:19 PM 0 Comments

Not very reliable house price related article

Hometrack: Prices flat in January but 79% of agents optimistic about spring market

Following price falls over the second half of 2012, house prices were unchanged in January. New buyer registrations and property listings were down over the month, but the majority of respondents to the survey (79%) are optimistic about the prospects for the spring market – primarily in relation to sales volumes rather than price growth... 79% of survey respondents said they felt more optimistic about the forthcoming spring market than they did this time last year. 21% were more pessimistic.

Posted by mark wadsworth @ 12:13 PM 0 Comments

Hometrack predicts rising sales for 2013

Myfinances.co.uk: Estate agents optimistic over property market heading into 2013

A new survey of the UK property market points to an increase in optimism and sales for 2013 even though sellers have dropped their asking prices in January.

Posted by ben @ 11:18 AM 0 Comments

Devil in the detail

AboutProperty: Green Deal launches - is it good news for homeowners?

A new government loan scheme to help homeowners be more energy efficient and cut bills is launching today. The Green Deal aims to cut the UK's carbon footprint and save people money on rising energy bills, through a system of cheap loans to cover the upfront cost of becoming more environmentally friendly.

Posted by phil @ 10:27 AM 0 Comments

Sunday, January 27, 2013

Revealed: top 20 postcodes with highest burglary insurance claims

Planet Property: Revealed: top 20 postcodes with highest burglary insurance claims

Do you live in a burglary hotspot? new research reveals the UK's worst burglary home insurance claims hotspots. Not pretty reading for Leeds, Bradford and London ...

Posted by the planet @ 07:22 PM 0 Comments

Carney to put growth top of list

Telegraph: Growth in inflation now top of list

The new Governor of the Bank of England has signalled that he will put growth at the heart of his approach to the job and is willing to see higher inflation for longer in order to support the economy. Mark Carney was making some of his most detailed comments since he was announced as the surprise choice for the post in November.

Posted by hpwatcher @ 06:22 PM 26 Comments

Saturday, January 26, 2013

Move house, fit new bathroom but don't pay your mortgage off

Channel 4 News: Getting and spending - the key to recovery

Apparently we don't move house often enough as a society and are failing to invest in new bathrooms every time we move, if we fixed these two minor issues all will be well. But one thing we must not do is pay off our mortgages early as this deprives the economy of money we could have otherwise spent on stuff.

Posted by enuii @ 10:48 AM 1 Comments

Friday, January 25, 2013

Now THIS is house-market manipulation

Counterpunch: The all-powerful Fed

"Basing one’s views of a housing recovery on such thin gruel as “prices” and “inventory” (without taking into account the extreme meddling of the Fed and the banks) is as silly as insisting that Lance Armstrong deserves to keep his 7 Tour de France trophies for crossing the finish line first.

Posted by icarus @ 05:33 PM 2 Comments

Office blocks into homes

AboutProperty: Comment: Office block conversions CAN ease crisis

From spring this year developers will be able to convert office blocks into homes, as the government attempts to ease the growing housing crisis. Will that move pay off?

Posted by phil @ 05:30 PM 0 Comments

Pain, Inbound

CNBC: Interest Rates Will Spike This Year ~ Soros

"There will be a dramatic rise in interest rates as soon as there are clear signs the U.S. economy is picking up, billionaire financier George Soros told CNBC".

Posted by alan @ 02:55 PM 8 Comments

Best buy now then

Mail: 'A whole generation could be priced out of home ownership': First-time buyers will need a £60,000 deposit by end of decade

He said: ‘We see 1.6million young people - people in their 20s and 30s - still living with Mum and Dad because they can’t afford their own place. That cannot be right.’

Posted by happy mondays @ 08:30 AM 6 Comments

Thursday, January 24, 2013

GDP preview: Is the UK heading for a triple-dip?

Myfinances.co.uk: GDP: UK economy likely to have shrunk by 0.2% in 4th quarter

On Friday, the Office for National Statistics (ONS) publishes its first estimate of GDP for the fourth quarter of 2012. The data is likely to show that the UK economy shrank by 0.2 per cent in the final three months of last year adding to the pressure on George Osborne to come up with a credible growth strategy to try and influence the UK economy in 2013.

Posted by ben @ 05:57 PM 3 Comments

Shared ownership product available to borrowers with a 5% deposit

Myfinances.co.uk: Leeds BS unveils 4.99% fixed rate deal for first-time buyers

Leeds Building Society has reacted to new mortgage products being offered to borrowers with just a five per cent deposit by cutting the rate on its similar deal. The Leeds BS has reduced the rate on its two-year fixed rate shared ownership mortgage available to borrowers with just a five per cent deposit by 0.70 per cent to 4.99 per cent.

Posted by ben @ 05:55 PM 0 Comments

Are tower blocks really what causes crime and social alienation?

Planet Property: Are tower blocks really what causes crime and social alienation?

Yes, says a new report from Policy Exchange ... but interesting counter-argument here on the viability of high-rises.

Posted by the planet @ 02:02 PM 20 Comments

It’s official – we’re more interested in the price of houses than world news.

Planet Property Blog: Rightmove more popular than the BBC

The latest league table of the UK’s websites compiled by Experian Hitwise puts Rightmove in 6th place, just beating the BBC news site, and three places ahead of the main BBC site.

Posted by property addict @ 01:48 PM 3 Comments

MPs debate housing crisis - highlights

AboutProperty: Housing debate - the best bits

A booming private rented sector is very good news for landlords – but it has also brought problems, which are regularly raised when MPs head back to their constituencies to speak to local people. The rental sector is changing and there are now an estimated 8.5 million people renting in the UK and one million families with children, who are demanding more and more from landlords. With rising rents and high house prices many people find themselves caught between rental costs they cannot afford and a deposit they don't have a chance to save toward. That opens the door to rogue landlords and all sorts of problems - so cue a housing debate in parliament.

Posted by phil @ 01:23 PM 1 Comments

About 33% down on 2008

AboutProperty: Five-year fixed mortgage rates at record low

Five-year fixed mortgage rates are at their lowest point since the start of the financial crisis, according to the Mortgage Advice Bureau (MAB). At 4.27 per cent the typical five-year rate is 0.34 per cent lower than at the start of 2012 and at its lowest since the MAB began gathering data in June 2007.

Posted by phil @ 10:19 AM 0 Comments

The Rent is too Damn High

BBC - One Show: Why the UK high street is going bust

Last nights BBC One Show hits the nail on the head. Rental values are the real problem on the high street and landlords will not cut the rent as this will then trigger problems with the properties value and their commitments to their banks. A nasty vicious cycle that is ruining our high streets http://www.unsustainablefuture.com/forum/index.php?action=post;board=1.0

Posted by pete green @ 09:27 AM 18 Comments

Wednesday, January 23, 2013

Debate in Commons - rogue landlords etc

AboutProperty: Private rented sector in "crisis" says MP

The shadow housing minister has accused the government of "failing to rise to the challenge" of fixing the "crisis" in the private rented sector. Jack Dromey, a Labour MP, told the House of Commons that action has "never been more badly needed", but that the government is not stepping up to the plate.

Posted by phil @ 05:44 PM 0 Comments

Downward spiral?

Sky News: Flybe: 300 Jobs Cut Amid Outsource Plan

Flybe intends to cut 10% of its workforce as it struggles for profit Regional airline Flybe is to cut 10% of its workforce in an attempt to save £35m and return to profit. The Exeter-based carrier has announced plans to cut 300 jobs from its 3,000-strong UK workforce and is considering outsourcing further support functions, including ground handling and onboard catering. I think events such as this (along with HMV, Blockbuster, etc.) are a much more reliable gauge of the state of the economy/country than the empty words of the Chancellor, Clarence at the BoE, etc. I'm a SCUBA diver and I find that a very reliable gauge of how things are are the number of special offer price trips I get emailed. I've been getting a lot lately ...

Posted by grumpybob @ 11:55 AM 2 Comments

Britain's got talent!

Telegraph: Two million quit Britain in 'talent drain'

"Two million people of working age have left Britain over the last decade in a “drain of talent” that is damaging the economy and forcing employers to rely on immigrant workers, a senior Conservative has warned". (many have let their homes in UK as they plan to return if things improve). Nick added: “Questions have to be asked as to why, even in a truly global economy where labour markets are relatively open, we here in the UK cannot hold onto our own home-grown, home-educated talent.” (maybe its because our leaders want to behave like celebs instead of getting on with leading change on things that need changing)!

Posted by alan @ 11:48 AM 11 Comments

Bleak outlook

AboutProperty: Cuts on the horizon for building firms

Job cuts appear to be inevitable for many building firms in 2013, as the recession continues to hit the construction industry. A third of all small to medium sized firms surveyed by the Federation of Master Builders (FMB) said they'd need to reduce staffing levels this year.

Posted by phil @ 10:04 AM 0 Comments

Tuesday, January 22, 2013

New 95 per cent mortgage offer from Principality BS

Myfinances.co.uk: Principality BS offers 95% LTV 5-year fix to Welsh FTB's

The Principality Building Society has announced the launch of a new 95 per cent loan-to-value (LTV)mortgage product designed to help first-time buyers get on the property ladder in Wales.

Posted by ben @ 05:51 PM 0 Comments

Anti-social housing?

Shropshire Star: Bedroom tax will see thousands in Shropshire lose out

Are social tenants with empty rooms to try to get in lodgers? Isn't sub-letting illegal? Or am I clutching the wrong end of a sh1tty stick? Also see this link: www.housing.org.uk/policy/welfare_reform/bedroom_tax.aspx

Posted by rental john @ 04:57 PM 5 Comments

More borrowing: where does it all end?

Reuters: Public borrowing higher than expected in December

"Britain's government borrowed slightly more than expected in December as the economy continued to struggle, thwarting efforts to erase a large budget deficit and adding to pressure on the UK's credit rating". "The figures are unlikely to deter speculation that Britain will lose its coveted triple-A credit rating, which is already on negative outlook with all three major ratings agencies".

Posted by alan @ 01:26 PM 4 Comments

Igloo listed on Rightmove

Planet Property Blog: Igloo for sale

Anyone with £150 to spare searching for a bijou, but chilly detached residence on the Stray in Harrogate need look no further.

Posted by property addict @ 01:03 PM 1 Comments

Monday, January 21, 2013

Calls getting louder. Yet reponse is deafening silence

Guardian: I agree with Churchill: let's get stuck into the real shirkers

As Winston Churchill, Adam Smith and many others have pointed out, those who own the land skim wealth from everyone else, without exertion or enterprise. They "levy a toll upon all other forms of wealth and every form of industry". A land value tax would recoup this toll.

Posted by stuartking @ 10:20 PM 23 Comments

Time to stop FFL before it's too late, easy money got us into this mess in the first place

Thisismoney.com: House prices to surpass their pre-financial crisis peak for the first time next year and 'will be 19% higher by 2018'

Property prices will race ahead in the next two years and are set to surpass their pre-financial crisis peak for the first time in 2014, economists predicted today. Bullishly, the Centre for Economics and Business Research also forecast that in five years' time a typical home will cost £261,000, representing an increase of 19.1 per cent compared with this year. Average prices this year are expected to edge up to £219,000, marking a 0.8 per cent increase compared with 2012, the CEBR said.

Posted by alex @ 07:26 PM 1 Comments

Lloyds take advantage of FLS and NewBuy

Myfinances.co.uk: Lloyds pledge £6.5bn to FTB's in 2013 but doesn't cut rates

Lloyds Banking Group has pledged to lend £6.5 billion to first-time buyers in 2013 to help get their foot on the property ladder. The financial group which owns the Halifax, Lloyds TSB and the Bank of Scotland said that it is rolling out its ‘core range’ of mortgage products to borrowers who only have a ten per cent deposit.

Posted by ben @ 03:49 PM 0 Comments

CEBR says house prices will surpass 2007 record highs in 2014

Myfinances.co.uk: CEBR predicts UK house prices will rise by 20% by 2018

The Centre for Economics and Business Research (CEBR) has today published a report that predicts house prices will reach and then surpass the levels they were at before the financial crisis during 2014. It also predicts that house prices will rise by almost 20 per cent by 2018.

Posted by ben @ 03:45 PM 0 Comments

& now for something completely different !

Mail: House prices to surpass their pre-financial crisis peak for the first time next year and 'will be 19% higher by 2018'

House prices to surpass their pre-financial crisis peak for the first time next year and 'will be 19% higher by 2018'

Posted by happy mondays @ 11:39 AM 14 Comments

Why Rightmove's figures don't add up

Planet Property: Why Rightmove's figures don't add up

Their latest report says more property for sale and stagnant prices represents good news for the housing market. Really?

Posted by the planet @ 11:30 AM 1 Comments

Latest stats from Rightmove

AboutProperty: Property market thawing in snowy January

Despite the snowy weather the property market appears to be thawing, with Rightmove reporting a 27 per cent increase in traffic over the first two weeks of January. Property coming to market is up 22 per cent year-on-year, but sellers have increased asking prices by just 0.2 per cent. This pragmatism appears to be stimulating the market and Miles Shipside, director and housing market analyst at Rightmove, praised the pricing approach many are taking.

Posted by phil @ 11:13 AM 1 Comments

Lending dips in 2013 but prospects bright for 2013, says CML

Myfinances.co.uk: CML expects 9% increase in property lending in 2013

Gross mortgage lending in December was £11.7 billion, according to the latest figures from the Council of Mortgage Lenders (CML). This is slightly lower than the corresponding figure from December 2011 when gross mortgage lending was £12.25 billion.

Posted by ben @ 10:52 AM 0 Comments

Rightmove says "pragmatic" asking prices should help property market

Myfinances.co.uk: Rightmove reports 22% rise in number of properties for sale

Property website Rightmove says that the number of new homes arriving on the market has risen by 22 per cent on 12 months ago in a sign that the UK property market is showing signs of recovery as we head into 2013.

Posted by ben @ 10:51 AM 2 Comments

CML say

BBC: UK mortgage market 'now more robust'

"Gross UK mortgage lending reached an estimated £11.7bn in December, pushing the total for the year to £143bn. This was £2bn higher than the previous year. But greater availability of mortgages at cheaper rates at the end of the year mean a continued pick-up is expected".

Posted by alan @ 10:42 AM 2 Comments

Sunday, January 20, 2013

Need an excuse - blame the weather

Politics.co.uk: Snow threatens triple-dip recession

Disruption caused by snow could see the UK slip back into recession once again. If the snow pushes the UK into another quarter of economic contraction in the first three months of 2013, Britain's economy will have been shrinking five of the last six quarters. 2012 saw the double-dip recession begin in October 2011 and continue for the first half of the year, before being alleviated by growth of 0.9% as a result of the Olympic Games causing a statistical reset.

Posted by enuii @ 02:26 PM 14 Comments

Saturday, January 19, 2013

The path to economic recovery?

AboutProperty: Lower house prices boost mortgage affordability

Lower house prices have increased mortgage affordability, meaning homeowners have more money in their pockets. According to the Halifax Affordability Review the proportion of income spent on mortgages is now down to 28 per cent, far less than the 48 per cent average in 2007. The practical economic effect of this is increased disposable income, which can allow for higher consumer spending.

Posted by phil @ 06:13 PM 0 Comments

Percentages, Average, Regionally, Typical, Affordable

This is Money: Mortgage payments drop to most affordable level for a decade as lenders slash rates

Misleading article which quotes percentages everywhere and seems to regard disposable income as all of the average wage. The average monthly mortgage payment for someone with a 30 per cent deposit is £580, while the typical take-home wage is £2,062. Somehow I don't think the two statements are typically connected. Anyway Novembers fist time buyers took out £125K mortgages on average.

Posted by enuii @ 03:20 PM 3 Comments

What price a greater Europe?

Mail: Heartstopping moment would-be assassin aims gun at Bulgarian opposition leader's head and pulls the trigger... but victim survives after weapon misfires

A man jumped on stage and pointed a gun at the leader of Bulgaria's ethnic Turkish party before security guards wrestled him to the ground during a televised conference on Saturday. Ahmed Dogan, the long-time leader of the Movement for Rights and Freedoms (MRF) escaped unscathed, and it was not immediately clear why the attacker had targeted him at the party congress in downtown Sofia.

Posted by hpwatcher @ 03:14 PM 5 Comments

Mine the economy, leave before the explosions damage your CV

Counterpunch: How central banking works

Our new BoE governor (£874k p.a) is leaving the BoCanada just as Canada's housing market wilts and the its economy goes into recession. But why did so many economies blow bubbles, and produce similar 'remedies', at the same time? Central bankers meet regularly and the writer argues that blowing bubbles, was part of a bigger plan, centred on them, to restructure economies in favour of the wealthy.

Posted by icarus @ 11:22 AM 4 Comments

Clydesdale Bank bucks trend to unveil interest-only mortgage that reverts to repayment model

Myfinances.co.uk: Clydesdale Bank launch interest-only mortgage option

The Clydesdale Bank has bucked the trend in the residential mortgage market by introducing an interest-only mortgage option at a time when other lenders are pulling similar products from the market. The new deal is being unveiled on Monday January 21st and offers borrowers the opportunity to fix their mortgage for three years on an interest-only basis.

Posted by ben @ 09:43 AM 0 Comments

Rate cuts on residential and buy-to-let mortgages

Myfinances.co.uk: Platform cuts rates on fixed rate mortgage products

Platform, the Co-operative Bank’s mortgage subsidiary has announced that it is cutting rates on a range of mortgages.

Posted by ben @ 09:25 AM 0 Comments

Well argued piece by a Cobden Institute speaker

Youtube: 'Collapse of UK debt-ridden social system only matter of time'

Collapse isn't imminent, argues that the current system is going to collapse within our lifetimes unless we roll back the state.

Posted by stillthinking @ 04:04 AM 11 Comments

Calls for higher interest rates to pop the Nordic housing bubble

Market Oracle: The Oslo Housing Market Bubble Syndrome

The Stockholm syndrome is a psychological phenomenon whereby hostages develop irrational sympathy toward their captors even to the point of defending their captors in subsequent investigations and criminal trials. While this applies to individuals or small groups, the Oslo syndrome applies to whole national populations.

Posted by libertas @ 12:03 AM 0 Comments

Friday, January 18, 2013

"Whatever it takes"?

Telegraph: Greece needs more European money to help with debts, says IMF

"There is a gap according to our preliminary projections for 2015-2016" of up to "€9.5bn," Poul Thomsen, the IMF's mission chief for Greece, told a conference call. The EU and IMF have committed a total of €240bn in rescue loans to Greece since 2010, but with its economy entering a sixth year of recession it is still having trouble making budget ends meet, AFP reported". "To avoid further wage and pension cuts, which could threaten the cohesion of the coalition, it is "critical" for the government to "seriously" tackle tax evasion and complete a downsizing of the bloated public sector, Thomsen said." (Hasn't someone already said this?).

Posted by alan @ 07:16 PM 1 Comments

Savills forecast for regional prices at a click of your mouse

Planet Property Blog: Look into the future of house prices

Just click on the relevant years to find out what the future has in store - minus the effects of inflation of course, which negates most gains.

Posted by property addict @ 01:21 PM 2 Comments

Gap closing... not in a good way.

AboutProperty: No let up for Northern renters - prices up

The gap between North and South is closing – but only in terms of rent, as prices rise in the North. Yorkshire and Humber had the highest rental price increase last year, jumping 12 per cent, according to the Move With Us rental index.

Posted by phil @ 10:45 AM 0 Comments

Rents slide as tenants struggle to pay

Planet Property: Rents slide as tenants struggle to pay

Signs that the rental market may be responding to squeezed incomes are evident in a new report from LSL Property Services: in December, rental prices slipped as the total amount of rent late or unpaid grew to the highest level since August 2012

Posted by the planet @ 10:13 AM 0 Comments

Thursday, January 17, 2013

Market continues to benefit the equity rich

Planet Property Blog: House prices to stabilise in 2013

In their five year residential market forecasts Savills offer little to cheer the average property owner.

Posted by property addict @ 08:56 PM 0 Comments

What's the answer to the housing crisis? More freebies for builders and help for landlords!

The Speccy: Grill the Housing Minister: Mark Prisk answers Coffee House readers’ questions

Mark Prisk it seems is a less talented version of Grant Shapps (if that's possible), no cheesey grin or amusing back story, just the same old platitudes and lack of imagination. Fail.

Posted by montesquieu @ 07:33 PM 3 Comments

Even estate agents are beginning to get it!

Philadelphia Business Journal: Allan Domb to take over as president of Phila. Realtors association

Allan Domb of Allan Domb Real Estate is set to become the 88th president of the Greater Philadelphia Association of Realtors. Domb’s official inauguration is scheduled for tonight and is expected to be attended by members of City Council as well as members of the Philadelphia real estate and business communities. And here's the good news: The Greater Philadelphia Association of Realtors is considered the voice of the residential real estate community in Philadelphia.... supports 'implementing a land value tax and lowering the city wage tax'

Posted by stuartking @ 06:41 PM 2 Comments

Funding for Lending has desired effect

Estate Agent Today: First-time buyers 'yet to benefit from Funding for Lending'

As a proportion of total house purchase lending, loans to borrowers with small deposits (of 15% or under) in the second half of the year dropped to 9.8%, compared to 11.2% in the first half of the year. Overall house purchase lending also dipped sharply in December. Purchase approvals fell 9% to 49,113 from 54,036 in November, and there were 7% fewer loans than in December 2011, making it the third weakest December since records began in 1993. Richard Sexton, director of e.surv, said he was hopeful that Funding for Lending will have more impact this year. He said: “Funding for Lending hasn’t yet equated into more loans to first-time buyers. But this still remains a realistic prospect.”

Posted by sibley's b'stard child @ 04:06 PM 10 Comments

Not enough of them though

BBC: Property fraudsters go to jail

This BTL thing is a cracking idea.

Posted by chrisch @ 01:56 PM 3 Comments

Money to money

AboutProperty: Buy-to-let booming as landlords cash in

Landlords are investing more in buy-to-let, as increasing confidence floods the market. The size of the average portfolio climbed to eight properties during 2012, up from seven at the start of the year. Twenty nine per cent of landlords say they have bought a property in the past year, compared to 25 per cent at the end of 2011. This is likely to be in no small part due to the problems first-time buyers are facing, forcing many to continue renting for longer.

Posted by phil @ 01:42 PM 3 Comments

Five-year fix from just 2.95 per cent

Myfinances.co.uk: Coventry BS cuts fixed mortgage rates and fees

The Coventry Building Society has reduced fees and interest rates on a range of its mortgage products.

Posted by ben @ 11:53 AM 1 Comments

50% slump oop north!

BBC News: Woman told to give up £600,000 Littleborough mansion

"The former girlfriend of a drug smuggler has been told to hand over a £600,000 mansion she knew had been paid for by crime. Daniella Green, 36, had taken over the home on Higher Starring Lane, Littleborough, which was built after she bought the land in 2003. The property, built in 2005, was originally valued at £1.2m but is now thought to be worth about £600,000." £600k is a lot of doe - especially for a house in Oldham! It was clearly never worth £1.2m!

Posted by happyrenting @ 11:53 AM 1 Comments

Post Office launches its lowest ever rates on 2.3 & 5 year fixed rate mortgages

Myfinances.co.uk: Post Office unveils its best ever mortgage deals

The Post Office has added three new mortgage products to its range including its lowest ever two-year fixed rate mortgage deal at just 2.35 per cent. It is also launching its lowest ever three-year and five-year fixed rate mortgage deals as competition in the fixed rate market hots up in the New Year. The Post Office has also announced cuts to mortgage fees.

Posted by ben @ 11:52 AM 3 Comments

"This time next year, Rodders, we'll be millionaires"

FTadviser: Safe as houses

It has always been known that the British hold property ownership dear. Now it appears this is even more so since the financial crisis.Despite an uncertain overall property market last year, Zoopla.co.uk, the property website, claims there are now 300,000 property millionaires in Britain. Not surprisingly a significant proportion of those are based in London, making up 64 per cent of the 300,142 property millionaire across the country.................... The dominance of London on the list of property ownership is highlighted by Nationwide in its housing market figures early in January. Here the London average of £300,361 is nearly twice the national average of £162,924.

Posted by jack c @ 11:36 AM 8 Comments

Wednesday, January 16, 2013

Rampant inflation forecast by end of year

Press Association / Yahoo: Lotto line cost will double to £2

More unnecessary cr*p for the ONS to use in the inflation figures and more household costs therefore HPC looms ever nearer on the horizon.

Posted by mr g @ 11:57 PM 6 Comments

Inflate away!

Guardian: Politicians stoke next housing bubble

Britain's biggest house builder is in rude health. In a trading update on Wednesday Barratt Developments said pre-tax profits in the first six months should more than double to £45m. Contrast this with 2008 when the company almost went bust. Back then Barratt, which accumulated huge debts at the height of the boom buying rival developers, was effectively in the hands of its banks. But through the goodwill and economic sense of the taxpayer, via Gordon Brown's office in the Treasury, Barratt was saved. The government told the banks to lay off indebted businesses, especially property firms (to save the housing market). It also came up with a £1bn lending scheme and grants for the building industry.

Posted by trevman @ 09:58 PM 0 Comments

Blockbusters tip of the iceberg for retailers destroyed by extortionate 20% VAT

The Guardian: 140 UK retailers in 'critical condition'

Palmer declined to identify any of the 140 under immediate threat, but said they were a mixture of well-known names and smaller retailers. "Experiences teaches us that a high proportion [on the critical list] will fall into some sort of insolvency proceedings," she said.

Posted by libertas @ 08:34 PM 18 Comments

Go directly to jail. Do not pass GO. Do not collect £375 (million)

Independent: Taxpayers face £500m bill for RBS Libor fraud

US(!) authorites are collecting £500m in fines from RBS (i.e.UK taxpayers) in fines for libor-fixing. And get this - "It is understood that RBS bosses are keen to avoid any repeat of what happened at Barclays, where the Libor storm ultimately cost the jobs of (the culprits)". See the 'related article' entitled 'We should not pay a penny of RBSs fraud fine', where it's pointed out that the RBS bonus pool is £375m - which would go a long way to paying the fine if it were not ring-fenced to enable RBS to pay bonuses to retain the incompetents who 'didn't know' (if not, why not?) all this was going on.

Posted by icarus @ 07:16 PM 0 Comments

Still, so long as we keep house prices high the economy is saved

City AM: Blockbuster collapses into administration

DVD rental firm Blockbuster has become the latest retailer to bite the dust, and today appointed Deloitte as its administrator. The collapse of Blockbuster, which employs 4,190 staff across 528 stores in the UK, comes just two days after high street stalwart HMV hit the rocks. Lee Manning, Matthew David Smith and Neville Kahn, partners at business advisory Deloitte, have been appointed joint administrators. “In recent years Blockbuster has faced increased competition from, internet based providers along with the shift to digital streaming of movies and games,” said Manning, joint administrator and partner in Deloitte’s restructuring services practice.

Posted by sibley's b'stard child @ 03:34 PM 13 Comments

How to manage the regulators EU style

WSJ: EU to Tighten Ratings Rules

"European lawmakers are set to approve new rules on credit-rating firms Wednesday that will restrict the firms' freedom to change sovereign-debt ratings and make them more vulnerable to lawsuits". (This should stop the ratings agency from dropping EU ratings any further). Another attempt to manipulate poor results - a growing trend....

Posted by alan @ 02:29 PM 0 Comments

Designer beach pods in Boscombe have prices slashed by 72%

Planet Property: Designer beach pods in Boscombe have prices slashed by 72%

The Wayne Hemingway designed scheme has run into the sand ... agents now offering massive discounts

Posted by the planet @ 01:48 PM 0 Comments

Panto season provides mixed messages on Funding for Lending Scheme and first-time buyers

Planet Property: Panto season provides mixed messages on Funding for Lending Scheme and first-time buyers

Life is getting easier for first-time buyers thanks to the Funding for Lending Scheme. Oh yes it is! Oh no it isn’t!

Posted by the planet @ 12:23 PM 0 Comments

The only ones who can afford it...?

AboutProperty: Growing Asian investment in London's new builds

Asian investment is the driving force behind London's new build market, says a report from Knight Frank. Overseas investment has long been a feature of London's burgeoning property market, but it appears the appetite for a slice of the capital is stronger than ever.

Posted by phil @ 11:52 AM 0 Comments

No limit to the stupidity of Gordon Brown

Telegraph: Labour overpaid massively for bank bail-out, claims Grant Shapps

Taxpayers are sitting on a loss of £18 billion on government shareholdings in RBS and Lloyds Banking Group, which were acquired during the financial crisis. Grant Shapps, the Conservative Party chairman, compared the bank bail-out to Labour’s decision to sell the country’s gold reserves. “Labour sold gold at a record low price and now it seems they massively overpaid for the taxpayer stakes in the banks,” he said.

Posted by hpwatcher @ 07:10 AM 9 Comments

Tuesday, January 15, 2013

Property muppets get their comeuppance

Torygraph: Judge rejects claim couple were 'ruined' by Barclays

The couple, both 66, claimed Barclays wrongly told credit reference agencies Mr Gatt was over his agreed overdraft limit, ruining his credit rating and killing their business. They sued for more than £3 million, but instead, Mr Gatt and his wife have been landed with a near £1 million bill of their own. Judge Patrick Moloney QC rejected claims of negligence, breach of contract and defamation and said the couple probably would have lost their assets in the credit crunch anyway. The Gatts had "borrowed beyond their means" and their business would have been unlikely to survive the crash in the property market, he said.

Posted by montesquieu @ 04:57 PM 9 Comments

The only way is up......

Telegraph: London house prices up 5pc, official figures show

The ONS says house prices in London and the South-East are still rising while the influential RICS study suggests the market may be "over the very worst”.

Posted by tom101 @ 04:32 PM 3 Comments

BoE gets more choices under the 'Do nothing' option

Grauniad: Bank of England gets sweeping powers to prevent next house price bubble

So as we approach the 3rd anniversary of the last change in interest rates the BoE is to get more options to do nothing? They've not used the biggest option they've had for 3 years so now there get some more to tinker with. All sounds very nice and prudent but then hindsight commonly is..

Posted by richy richless @ 12:41 PM 2 Comments

Assuming you believe the figures, that is...

Reuters: Inflation sticks at 2.7 percent for 3rd month in December

"The Office for National Statistics said utility prices rose 3.9 percent on the year while fuel costs fell by 0.2 percent. It said the biggest downward pressure on the index came from a fall in transport costs as airlines cut fares". (Ooooh, transport costs DOWN? How about those rail fares?)

Posted by alan @ 12:16 PM 4 Comments

Cloud cuckoo land

AboutProperty: House prices 'will rise' say homeowners

The perception that property prices will continue their spiral upwards continues, with 65 per cent of homeowners anticipating a price rise in the next six months. Just one in five told the Zoopla.co.uk housing market sentiment survey that they expected a drop in house prices during the first half of 2013.

Posted by phil @ 11:45 AM 0 Comments

National price balance positive for first time since June 2010

Myfinances.co.uk: RICS: House prices set to rise in first quarter of 2013

The Royal Institute of Chartered Surveyors (RICS) latest survey of its members shows that a balance of 24 per cent more surveyors predict that house sales will increase over the next three months.

Posted by ben @ 10:24 AM 0 Comments

Of course they will! No more boom & bust

Mail: Bank of England ready to put curbs on lenders to guard against a new credit and house price bubble

The Bank of England yesterday signalled it is ready to take aggressive action against UK lenders to protect the economy from a future property boom and bust.

Posted by happy mondays @ 08:08 AM 3 Comments

Nice :)

Mortgage stategy: Capital Economics forecasts 5% drop in house prices in 2013

The analysis delivers an increasingly bleak outlook for the year ahead as predictions of rising unemployment are connected to mortgage arrears and possessions figures and a deteriorating labour market is expected to drive house prices down.

Posted by happy mondays @ 08:04 AM 5 Comments

Britain’s bargain homes (Need to click on the photos)

MSN: Britain’s bargain homes

As house prices stay flat, now could be the perfect time to snap up a property bargain…

Posted by peter_2008 @ 12:11 AM 0 Comments

Monday, January 14, 2013

Yorkshire cut rates on 2-year fix for 60% LTV borrowers

Myfinances.co.uk: Yorkshire BS launches two-year fixed rate mortgage at 1.99%

The Yorkshire Building Society has announced further mortgage rate cuts for borrowers with at least 40 per cent equity in their homes. It has unveiled details of a two-year fixed rate product with a rate of 1.99 per cent, with an offset alternative of 2.19 per cent.

Posted by ben @ 05:27 PM 0 Comments

I can't believe the stats anymore :(

Telegraph: Eurozone factory output dips but IMF insists economy is 'improving'

"IMF chief Christine Lagarde has insisted the eurozone economy is 'improving' as latest figures show a third consecutive month of falling factory output". (Personally, I'm SOooo fed up with spin. I can't believe any stats anymore. It looks like LESS tractors produced so output is UP). "Her words will likely provoke disbelief in the markets" says the Telegraph. (Does anyone still believe CPI or even the House Price indices?)

Posted by alan @ 04:38 PM 5 Comments

See, it can be done.

Bbc: Singapore steps up property curbs to bring down prices

notice how unbiased bbc is when it is not the uk property market.

Posted by peter_2008 @ 12:53 PM 1 Comments

Landlord's list of house rules goes viral

Planet Property: Landlord's list of house rules goes viral

Actor and tenant, Laura Evelyn's tweet about the list of 31 house rules she received from a landlord offering a room ... no pork in house: EVER!!!

Posted by the planet @ 11:08 AM 4 Comments

Another hit for renters

AboutProperty: Quarter of rents to rise above inflation

A third of all UK landlords plan to bump up rent this year and a quarter will push it up above inflation. A rise of over three per cent would likely outstrip levels of inflation in the UK this year.

Posted by phil @ 10:59 AM 2 Comments

Housing haunts political both parties as Ed Miliband targets 'generation rent'

Planet Property: Housing haunts political both parties as Ed Miliband targets 'generation rent'

Both parties are targeting housing as a key issue ... but do either side have a coherent answer to the issues?

Posted by the planet @ 10:48 AM 1 Comments

Sunday, January 13, 2013

Much needed boost for UK housing on the way!

Mail: Eric Pickles: Influx of migrants will 'cause problems' for the housing market

An “influx” of Romanian and Bulgarian migrants will pile pressure on the UK’s housing market, a Cabinet minister has admitted. Eric Pickles, the Secretary of State for Communities and Local Government, refused to say how many migrants from the two countries are expected to arrive in Britain in 2014, but said they “will cause problems”.

Posted by hpwatcher @ 03:25 PM 25 Comments

Saturday, January 12, 2013

Central banks will inflate their way to, inflation.

Market Oracle - Nadeem Walayat: U.S. Housing Real Estate Market House Prices Trend Forecast 2013 to 2016

US House Prices Forecast Conclusion - As your read this, the embryonic nominal bull market of 2012 is morphing into a real terms bull market of 2013, with each subsequent year expected to result in an accelerating multi-year trend that will likely see average prices rise by over 30% by early 2016, which translates into a precise house prices forecast based on the most recent Case-Shiller House Price Index (CSXR) of 158.8 (Oct 2012 - released 26th Dec 2012) targeting a rise to 207 by early 2016 (+30.4%).

Posted by libertas @ 09:36 PM 12 Comments

Still overpriced

Economist: Home Truths

'British house prices have posted only modest overall declines over the past five years (although rising rents and incomes have also helped bring things closer to fair value). But the British market may do rather better than still-stretched valuations suggest. For one thing, it does not suffer from the glut of empty homes that has created ghost towns in Ireland and Spain. And according to the Bank of England’s latest credit-conditions survey lenders are more willing to make mortgage finance available than at any time since the financial crisis. The number of mortgage approvals for new purchases is at its highest for almost a year.' I'm not sure that the figures in this article match my personal experience. I would not now be able to buy the house that I bought in 2000.

Posted by nubbers @ 10:50 AM 7 Comments

Milliband acknowledges New Labour Failings

BBC: Miliband to outline plans to protect private tenants

I have long been of the opinion that everything wrong with the economy and housing market is ultimately Gordon Browns fault. Now even Ed Milliband is acknowledging the New Labour shortcomings. p.s. Four years in the same rented accomodation would have been wondeful. My first lasted 7 months before I faced a £1000 removal bill.

Posted by tenyearstogetmymoneyback @ 07:24 AM 6 Comments

Friday, January 11, 2013

11 lender rate cuts for first 11 days of 2013!

Myfinances.co.uk: New Year mortgage sale tempts all types of borrowers

The start of 2013 has seen an avalanche of mortgage rate cuts from lenders in a sign that the Bank of England’s government backed Funding for Lending Scheme (FLS) is beginning to have a positive impact.

Posted by ben @ 04:58 PM 0 Comments

Property prices go up the nearer you live to the Circle Line in London

Myfinances.co.uk: Nationwide finds £26k premium for living near tube in London

New research from the Nationwide suggests that residents in London are paying an extra £26,000 to live just 1000 metres closer to a tube station. The research also indicates that there is a big difference in price depending on what tube line the property is near to.

Posted by ben @ 03:29 PM 0 Comments

Reduced fees for First-time buyers and 0.1% cuts on mortgage rates

Myfinances.co.uk: Nationwide becomes latest lender to cut mortgage rates

Nationwide Building Society has cut mortgage rates by 0.1 per cent on a range of fixed rate mortgage products.

Posted by ben @ 11:54 AM 0 Comments

But that's no help to first-timers

AboutProperty: Housing market shows 'encouraging' signs

Last year was the "most encouraging" for the housing market since the financial crisis, says a leading industry figure.

Posted by phil @ 10:25 AM 3 Comments

Three reasons property prices will struggle this year

MoneyWeek: Three reasons property prices will struggle this year

UK house prices have been flat for two years now. And things are unlikely to get much better in 2013, says John Stepek. Here, he gives three reasons why.

Posted by martingreen @ 09:42 AM 0 Comments

Thursday, January 10, 2013

They don't like it up em!

Torygraph: Nick Boles's supply-side planning reforms will lead to falling house prices. Is that politically wise?

The logic of Mr Boles’s evangelical supply-sider approach to the housing market will be a fall in house prices. That would achieve his objective of increasing house sales. It would also hugely antagonise a great many voters; the political consequences of such a fall in prices were rather vividly demonstrated in the 1997 General Election. No wonder some of Mr Boles' ministerial colleagues are privately unnerved by his approach.

Posted by montesquieu @ 09:38 PM 12 Comments

Generation Rent

ITV 1: Generation Rent: ITV "Tonight"

Generation Rent is transforming the British housing landscape, and the latest figures confirm an increasingly bleak future for people who are trapped in rented homes by high prices and unattainable mortgages. The charity Shelter has revealed that the average London tenant is now paying 59% of their earnings on nothing more than paying their rent. Beth King and her family are trapped in Generation Rent. Their dream of buying a home is impossible, even though they have a family income of about £80,000 a year.

Posted by jack c @ 08:55 PM 7 Comments

Yorkshire BS offer five-year fix at 2.99%

Myfinances.co.uk: Yorkshire BS cuts rates on fixed mortgage deals

The Yorkshire Building Society has cut rates across its range of mortgage products for the New Year. It is reducing rates on its mortgage products by up to 0.35 per cent including fixed rate, tracker and offset mortgages at loan-to-value (LTV) ratios of 75, 85 and 90 per cent.

Posted by ben @ 04:15 PM 1 Comments

Water off a duck's back, isn't it?

BBC: RBS braced for hefty Libor fines

"The Royal Bank of Scotland is in negotiations with UK and US regulators over fines to be paid for its Libor transgressions". "Last month, UBS paid £940m in fines for attempted Libor rate manipulations". "It is understood that the FSA is arguing that some bonuses earned by executives and investment bankers should be repaid or clawed back" (fat chance of any personal responsibility being taken).

Posted by alan @ 01:52 PM 5 Comments

All mouth no trousers?

BBC News: Communities to be offered cash incentives to accept new homes

Local neighbourhoods could win control of infrastructure budgets worth up to £300,000 in return for allowing homes to be built, the planning minister will suggest on Thursday as he warns that there is "no painless way to make homes affordable for working people earning ordinary wages"

Posted by richy richless @ 12:56 PM 6 Comments

Highest level of sales for five years...

AboutProperty: Falling house prices speed up sales in Scotland

Tumbling house prices are reinvigorating the property market in Scotland, with sales up across Edinburgh, the Lothians and Fife. A year-on-year house price decline of 8.5 per cent in the capital, Edinburgh, has encouraged a jump in sales to the highest end of year level since 2007.

Posted by phil @ 11:09 AM 0 Comments

Nimby's watch out or is it another good will gesture..

Telegraph: Planning threat to grandparents

Mr Boles will claim that the inflation in house prices in recent decades has been unacceptable and was caused by artificial restrictions on building. He will highlight figures showing that if the price of food had risen in line with housing over the past 30 years, a chicken would cost £47 and a jar of coffee £20.

Posted by happy mondays @ 08:19 AM 6 Comments

Wednesday, January 9, 2013

Barclays launch Family Springboard

Myfinances.co.uk: Barclays unveils 5% mortgage deal for first-time buyers

Barclays has unveiled an almost unique mortgage offer for first-time buyers. It is offering first-time buyers the chance to get on the property ladder with just a five per cent deposit.

Posted by ben @ 05:19 PM 1 Comments

Most likely...

AboutProperty: Are high French taxes a positive for London?

A flood of French investment is coming into London as new president Francois Hollande's taxes begin to bite... It's the reverse of that classic: "all the bankers will leave London if hit with high taxes" line.

Posted by phil @ 04:56 PM 3 Comments

Another one bites the dust

Yahoo: Jessops Slashes Jobs And Ignores Gift Vouchers

Professional services firm PwC confirms its appointment as administrator for troubled high street photography retailer Jessops.

Posted by mark @ 04:15 PM 10 Comments

Landlords warned that tuition fees could cut demand

Planet Property: Landlords warned that tuition fees could cut demand

University applications for 2013 have dropped by 6% ... which may mean empty properties for some landlords.

Posted by the planet @ 11:44 AM 21 Comments

Fitch’s house price predicitions: more crash and correction to come

Planet Property: Fitch’s house price predicitions: more crash and correction to come

But ... and this may not be welcomed by all ... they reckon the UK market will be resilient due to under-supply of homes ... especially in London and the SE.

Posted by the planet @ 11:42 AM 0 Comments

A few predictions... some better than others.

AboutProperty: What will happen to the UK property market in 2013?

Just what will happen to the UK property market in 2013? Is it a brave new world? Will house prices go up? Will they go down? Are landlords going to slash rents in half? Well actually, there's a bit of disagreement on all of those (except the last one).

Posted by phil @ 09:59 AM 1 Comments

Tuesday, January 8, 2013

Print $1 trillion coin solves the crisis!

Daily mail: US to print $1 trillion coin

I'm not sure I can find words to describe this,but the economics of madness would seem appropriate

Posted by taffee @ 04:03 PM 21 Comments

Another provides follows suit with a New Year sale

Myfinances.co.uk: Accord cuts rates on fixed rate mortgages for FTB's

Accord is the latest mortgage lender to start off 2013 with cuts to mortgage rates across its entire range. Reductions of up to 0.40 per cent are being made on fixed rate mortgages for loan-to-value (LTV) ratio borrowers at 75, 85 and 90 per cent levels.

Posted by ben @ 11:34 AM 0 Comments

Rates and fees cut in New Year sale

Myfinances.co.uk: BM Solutions revitalise buy-to-let mortgage range for 2013

BM Solutions has re-launched its buy-to-let mortgage range for 2013 with reduced rates across its range of products and a reduction in fees.

Posted by ben @ 11:30 AM 0 Comments

Platform leap into residential mortgages

Myfinances.co.uk: Platform launch competitive residential mortgage range

Platform, the mortgage subsidiary of the Co-operative Bank has re-launched its mortgage range for 2013 with the focus on the residential market.

Posted by ben @ 09:57 AM 0 Comments

Monday, January 7, 2013


Money Week: The End Of Britain

Britain is about to be flattened by a tidal wave of debt. It doesn't matter if you vote Conservative, Liberal, Labour, UKIP – or for no party at all. The facts are the facts ...

Posted by greenmind @ 11:54 PM 20 Comments

House prices down 50%...

Northampton Chronicle and Echo: Threat of HS2 railway line halves house prices in parts of Northamptonshire

House prices dropping 50% seems to not be welcome. So much for more affordable housing.

Posted by thecountofnowhere @ 07:04 PM 1 Comments

Cambridge BS is latest lender to freshen up mortgage range for 2013

Myfinances.co.uk: Cambridge unveils fixed rate mortgage range with fee-free options

The Cambridge Building Society has launched a new range of mortgages for the New Year. It has reduced rates on some mortgage products by up to 0.70 per cent and has also refreshed its mortgage range to include fee-free mortgage deals with no application fees and no standard legal or valuation fees.

Posted by ben @ 06:12 PM 0 Comments

Hmm wonder why they crashed?

Cnn: Hedge funds win big with subprime mortgages

Subprime mortgages may have been the most lucrative bet of 2012 for hedge funds, with some gaining more than 20% by buying up troubled financial crisis era mortgages.

Posted by mark @ 05:05 PM 0 Comments

Meanwhile back on planet Earth

This is Plymouth: Student landlords urged to consider their strategy

Landlord Assist, the nationwide landlord services firm, is urging student landlords to keep a close eye on university admissions in their area following news that university applications for 2013 have dropped by six per cent with less than a month to go before the deadline. Data from the Universities and Colleges Admissions Service (UCAS) showed there were 265,784 university applications by UK-based candidates up to December 17, down by 6.3% compared to the same period last year. This is the second successive year that student applications for university places have fallen, following an 8.7% drop in the total number of applicants for all courses in 2012.

Posted by sibley's b'stard child @ 04:31 PM 2 Comments

£800 completion fee removed and free standard valuation

Myfinances.co.uk: Leeds BS New Year sale cuts fees on two-year fixed rate deals

The Leeds Building Society has launched a New Year mortgage sale that cuts fees for its two-year fixed rate mortgage deals. The changes mean that the £800 completion fee has been removed and applicants get a free standard valuation fee worth up to £335.

Posted by ben @ 02:52 PM 0 Comments

Expanding... and complaining.

AboutProperty: Half of landlords to grow empire next year

Over half of landlords are planning to expand their portfolio next year, as the difficulty of securing a mortgage forces potential first-time buyers to continue renting. However despite having plans to grow their empire, three quarters of landlords say that mortgage lenders aren't doing enough to support property investors.

Posted by phil @ 01:00 PM 2 Comments

Tories will lose next election over this

Daily Mail: Child benefit 'shambles' drags hundreds of thousands more families into tax return misery

This has broken the fundamental rule of how the tax system taxes an individual. Utter shambles & shameful grab of short term cash breaking the tax system. Meanwhile, tax cuts to the super rich cronies.

Posted by doomwatch @ 11:42 AM 18 Comments

Its five-year fix for 85% LTv borrowers is just 3.99%

Myfinances.co.uk: Coventry BS offer five-year fixed rate mortgage from 2.49%

The Coventry Building Society has cut the rates on its two and five-year fixed rate mortgage deals for borrowers with a loan-to-value (LTV) ratio of between 65 and 95 per cent.

Posted by ben @ 11:25 AM 0 Comments

Halifax House Prices

Bloomberg: Prices Advanced for Second Month in December

"U.K. house prices rose for a second month in December and will probably remain little changed in 2013 as the uncertain economic outlook constrains property demand", according to Halifax. Property prices were 1.3% higher in December than they had been in November, with the average home valued at £163,845. Overall for the year -0.3%

Posted by alan @ 09:28 AM 3 Comments

Halifax reports house prices rise by 0.6% on a quarterly basis

Myfinances.co.uk: Halifax: House prices up 1.3% as market confidence improves

House prices rose by 0.6 per cent in the final quarter of 2012, according to the latest house price index from the Halifax.

Posted by ben @ 09:21 AM 0 Comments

New year message to renters from our PM

Telegraph: PM: Interest rates 'real' economic test

"The ratings you have are all hugely important, I wouldn't deny that for a minute, but in a way the real test is what are the interest rates the rest of the world is demanding in order to own your debt and our interest rates are extremely low, the lowest they have been really for centuries. The key thing this year is to try and make sure those interest rates are passed on properly to the business and the home owners."

Posted by quiet guy @ 02:46 AM 5 Comments

Sunday, January 6, 2013

Right wing think tanks wrestle with housing policy, when the answer is starring us in the face

Grauniad: Green belt housing gamble – a bet too far?

A fair appraisal of the problems of the Tories and housing policy Last paragraph is excellent though: "The Organisation for Economic Co-operation and Development, the International Monetary Fund and the Institute for Fiscal Studies have in the past couple of years concluded that only an annual tax on land can end the obsession with property. Once landowners face a tax, they will free up land they are sitting on, rather than wait for a rising market to make a killing."

Posted by pete green @ 09:52 PM 2 Comments

In a zombie economy.

Mail: Britain faces slowest housing market recovery on record with some property prices not set to peak again until 2021

Homeowners in Wales will not see prices recover fully for eight years. Prices in London should hit 2007 prices next year. Property prices could take another eight years to recover from the recession and regain their 2007 value, according to forecasts by an estate agent. Homeowners in Wales, North Yorkshire and the North West will wait the longest to see the value of their property return to pre-recession value according to Knight Frank. In Wales, prices won't return to their average peak of £154,696 until 2021 with the current market value more than £20,000 down to less than £132,000.

Posted by hpwatcher @ 02:18 PM 3 Comments

Liverpool house price falls ahead of only Manchester and Bradford in Nationwide's league table

Liverpool Daily Post: Liverpool house prices fall in 2012

HOUSE prices fell sharply in Liverpool last year. Estate agents confirmed the market had declined as figures released yesterday by Nationwide showed city properties suffered the third-largest fall in value in the UK in 2012 to an average £144,050. Liverpool was ahead of only Manchester and Bradford in the national league table, suffering an 8% drop overall. Agents said they were hoping first-time buyers would seize the opportunity to get on the housing ladder in the coming months (yeah, right).

Posted by overnight will @ 10:40 AM 1 Comments

Friday, January 4, 2013

HPC this year?

Telegraph: Waitrose boss: Britons should brace themselves for 'massive' food price hikes

Britain's recent food price rises are "just the tip of the iceberg," and consumers should brace themselves for "massive" hikes in some commodities this year. On a completely different topic with no connection to housing. If any readers took advantage of the offer in October 2012 of 4% AER interest on the Lloyds TSB Vantage current account, I suggest that you check what interest you are receiving. I don’t know whether this was an individual branch problem or across the branch network but thanks to errors by Lloyds, I have learned that a number of customers are receiving 3% rather than 4%. After a good rollicking, Lloyds admitted they have a problem with staff not understanding how to set up these accounts therefore it might be in your interests to check.

Posted by mr g @ 07:14 PM 26 Comments

Which index can you believe

Sky News: House prices

Not a bad summary of the pro's and con's of the market from the BBC's man this time on Sky.

Posted by charles lister @ 05:59 PM 0 Comments

850,000 empty properties in the UK

Dailymail: Britains ghost town

2 up 2 down not wanted by people versus vaste amount of rabbit hutch flats built then?bet people in hostels or bed and breakfast wouldn't say no....something doesn't seem right about the uk high houseprices and housing 'crisis'

Posted by taffee @ 04:05 PM 9 Comments

Not good advertising for Gilts

Torygraph: Bond bubble fears and why I took the biggest bet of my life

Gilts yields just went up over 2%. This guy, has announced he has dumped all of his gilt holdings because they are going to get slaughtered and moved into equities. Also advises readers that as they don't legally have to purchase an annuity any more they shouldn't do so. Hmm. Not exactly what the government debt issuing office wants people to read. Canadian Carney may feel he has misjudged his new position if he is forced to raise interest rates soon after landing at the airport.

Posted by stillthinking @ 02:42 PM 4 Comments

Will foreclosures rise in 2013?

SKY: Mortgages: Millions 'Struggle With Payments'

"Almost a million people are resorting to high-interest 'pay day' loans to make ends meet after falling behind on housing payments". says Shelter, and "Nearly eight million people in Britain are struggling to keep up with mortgage or rent payments each month". (...this could be true, I know people struggling to pay rent & mortgages after spending hundreds on cheap Taiwanese Christmas presents for their kids).

Posted by alan @ 12:42 PM 4 Comments

Going behind the BOE's latest report

Mindful Money: The UK housing market is about to lift off according to the Bank of England

Although the overall numbers hide some large regional differences as prices in London rose by 0.7% -is the London property bubble fading?- whilst Northern Ireland saw prices fall by 8.2% in 2012, continuing the heavy falls seen there. A little more of this would make London prices overall treble those in Northern Ireland.

Posted by se10 @ 10:47 AM 1 Comments

Shelter survey shows precarious grip on homes

Myfinances.co.uk: One million people use payday loans to pay for mortgage or rent

Homeless charity Shelter has published a report that warns around 7.8 million Britons are struggling to make their rent or mortgage payments.

Posted by ben @ 10:41 AM 1 Comments

Bank of England reports rise in mortgage approvals

Myfinances.co.uk: FLS impact helps mortgage approvals post 5th consecutive rise

Lending rose in November, according to the latest data from the Bank of England in a sign that the bank’s Funding for Lending Scheme (FLS) is beginning to have an impact.

Posted by ben @ 10:38 AM 0 Comments

BoE Propaganda machine speaks....

Telegraph: Bank of England's top minds raise questions over QE

The inflation risk posed by the Bank of England’s £375bn money-printing effort may be greater than thought, according to “stark” new findings from some of its leading thinkers. The problem, according to the new report, is that previous research may have misdiagnosed the causes of the UK’s poor recovery from the global financial crisis – which has implications for how the Bank wields tools such as QE.

Posted by hpwatcher @ 09:20 AM 7 Comments

Thursday, January 3, 2013

Rosamund Urwin Advocates "hefty tax on multiple home ownership"

London Evening Standard: Rosamund Urwin: As house prices rise our dreams of a home crash

Rosamund Urwin has come to the realisation that the correction in the property market must be engineered by an interventionist approach to the property unaffordability problem, not simply allowing the market to find its way. This includes a hefty tax on multiple home ownership, alongside a major building scheme aimed at being rented to low paid workers and the young.

Posted by cxcx @ 10:29 PM 1 Comments

Fix for the long term with Leeds BS new offer

Myfinances.co.uk: Leeds BS offers 10-year fixed rate mortgage at 4.29 per cent

The Leeds Building Society has launched a new ten-year fixed rate mortgage deal at a market-leading rate of 4.29 per cent. The rate has been reduced by 0.29 per cent from 4.58 per cent and is available to borrowers with a loan-to-value ratio (LTV) of 75 per cent.

Posted by ben @ 05:40 PM 0 Comments

Fee-free mortgage deals for existing HSBC customers

Myfinances.co.uk: HSBC offers mortgage rate cuts for first-time buyers

HSBC has cut rates on a range of its mortgages for first-time buyers or borrowers with just a ten per cent deposit at the start of 2013.

Posted by ben @ 05:38 PM 0 Comments

We're all in it together...

AboutProperty: Over 300,000 property millionaires in UK

Property millionaires were the biggest winners of 2012, despite the difficulties of an economic recession and stagnant property market. Price rises at the top end of the market helped create 47,024 new British property millionaires. That brings the total number to just over 300,142, a big increase on last year.

Posted by phil @ 12:06 PM 4 Comments

Too many old people; not enough young people to buy their overpriced cr*p

Telegraph: Demographic timebomb puts paid to hopes of house price revival

Most households continue to believe that, in time, the UK property market will recover, and that, given even more time, we will eventually return to the easy property gains of recent decades. This belief may, in turn, be one of the reasons why housing transactions remain so depressed, at roughly half their pre-crisis high and some 35pc below their 20-year average; those who might sell hold back because they think that if they wait long enough, peak 2007 prices will again return.

Posted by sibley's b'stard child @ 10:43 AM 20 Comments

Massive drop in residential house building

Myfinances.co.uk: New construction business falls at fastest pace for 44 months

Activity in the UK construction sector declined to a six-month low as housing activity fell sharply.

Posted by ben @ 10:30 AM 1 Comments

Nationwide reports house prices fell by one per cent in 2012

Myfinances.co.uk: Nationwide: House prices back to levels seen two years ago

House prices in the UK fell by one per cent in 2012, reversing the one per cent rise seen in 2011 and taking them back to the same average value as they were at the end of 2010.

Posted by ben @ 10:29 AM 1 Comments

Slightly reliable

BBC: UK house prices fell 1% in 2012, Nationwide says

The building society said that the average property was valued at £162,262 at the end of 2012, following a 0.1% drop in December. Buyers nervous about the economy and a lack of mortgage availability meant there was little housing market activity during 2012. The 1% drop reversed a 1% average price increase in 2011, the Nationwide said. However, the average price masked significant differences in property price changes in the different nations and regions of the UK. For example, prices were 0.7% higher in London at the end of 2012 compared with a year earlier but dropped 8.2% over the same period in Northern Ireland.

Posted by mark wadsworth @ 07:47 AM 4 Comments

Wednesday, January 2, 2013

Land Registry data shows 0.9 per cent annual house price rise to Nov 2012

Myfinances.co.uk: Land Registry reports house prices up by 0.3% in November

House prices rose by 0.3 per cent in November, according to the latest report from the Land Registry. This means the average house price in England and Wales has now reached £161,490 and prices have increased by 0.9 per cent over the past 12 months.

Posted by ben @ 10:44 PM 0 Comments

Michael Hudson's 'How I learned to love the right kind of govt deficit'

Counterpunch: Why the financial squeeze imposes needless austerity

A continuation of M Hudson's article I posted yesterday @11.13. Lots of MMT - he claims that government surpluses have coincided with depressions, and discusses the difference between 'good' deficits - spending that gets the economy moving - and 'bad' deficits from govt spending not on goods and services and hiring employees but on buying (or taking liability for) mortgages and bank loans, insurance default bets and arbitrage gambles, thus subsidising financial losses by keeping the debts in place so that banks can “earn their way” out of negative net worth by lending again to support the prices of their assets.

Posted by icarus @ 06:21 PM 4 Comments

Outdated building rules to be axed

Telegraph: 'Perplexing mish-mash' of outdated building rules to be axed

When ?!!!! Or is it just some sort of "Thick of It" rolling news headline grabber to keep something else out the top of the news items ?

Posted by doomwatch @ 02:23 PM 2 Comments

Happy new year :)

Mail: Bad news for homeowners as house prices will not return to pre-recession peak until end of the decade

'Once inflation is stripped out, average UK house prices are unlikely to hit 2007 levels again in real terms until 2031.’

Posted by happy mondays @ 08:40 AM 8 Comments

Tuesday, January 1, 2013

MPs and central bankers have the means but not the courage to solve the current economic malaise

Financial Times: Survival of the zombies is bad news

In a rare press conference in 2007, I remember there was a suggestion from a journalist that rather than QE and credit loosening being the wisest option, fiscal tightening was the logical and prudent path. "You're not suggesting we raise interest rates are you?" was Mervyn King's precise answer. Fast forward to now and we should not pretend that the options presented for solving our economic malaise are pre-ordained - they are the result of carefully considered political strategies over economic ones. In exactly the same way as Mervyn King chose to get the teetotallers to pay for the party-hards' hangover medicines, so the zombie companies (and don't forget the zombie property assets, FT!) are political rather than economic outcomes.

Posted by paul @ 09:15 PM 1 Comments

Bulls vs Bears

Money Box: Sunday 30th December

The first seven minutes of this Money Box radio show is devoted to a discussion about the housing market. The four commentators are Cliff D'Arcy, freelance financial journalist; Andrew Oxlade, Telegraph personal finance editor; Vicky Pryce, senior managing director of economics at FTI Consulting and Merryn Somerset-Webb, Moneyweek's editor in chief. Most of the predictions were pretty bearish apart from Vicky Pryce who stressed that there is a shortage of property and the government policy such as Funding for Lending will support prices.

Posted by quiet guy @ 04:50 PM 3 Comments

Halifax says twice as many people expect prices to rise rather than fall

Myfinances.co.uk: Halifax survey shows Brits expect house prices to rise in 2013

More people expect house prices to rise rather than fall in 2013, according to the 7th Halifax Housing Market Confidence Tracker. 38 per cent of people expect house prices to rise over the next 12 months, compared to just 18 per cent of people who think prices will drop, leaving a balance of +20.

Posted by ben @ 02:23 PM 0 Comments

'Fiscal cliff' scare to attack social programmes

Counterpunch: The financial war against the economy at large

Michael Hudson argues that governments have pro-creditor policies that centralise creditor control over eonomies, enabling creditors to load governments, companies and households with debt, to siphon off their income as debt service and, for non-payment, to seize public property and employee pension pots, while indebted labour fears to strike or complain about working conditions. Financial interests write tax laws and curtail debtor rights. Why, for instance, is it necessary to force employees to pre-pay for social programmes while monetisation can be used for bank bailouts (instead of banks pre-paying insurance premia against bank busts), military spending (no pre-paying for wars) and even the rebuilding of private beaches and beachfront homes washed out by hurricane Sandy?

Posted by icarus @ 11:13 AM 6 Comments

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