June 2013 Archive

Sunday, June 30, 2013

Rates to increase until 2017?

Armstrong Economics: Interest Rates – Just Amazing

Chart here shows US 30yr bonds from inception a couple hundred years ago until now. The present price is certainly re-testing resistance and since bond prices are unlikely to rise from here, rates could be on their way up. Will this cause a global fall in house prices? Most frustrating for those who want to purchase a house. Certainly 5 or 10yr fixed mortgages look good at this point.

Posted by libertas @ 09:27 PM 21 Comments

Only policy which will keep lights and heat on in homes

UKIP: Keeping the Lights On

Following recent revelations that the late great UK will have rolling blackouts in two years, yes this is relevant to houses, since we all have homes that use electricity and heat! UKIP want to reverse the closure of coal, I don't support their support for shale because of the toxins that can damage water courses, but this document, their official energy policy calmly shows how climate has changed over the past 10,000 years, showing that there truly is nothing to worry about, aside from the rolling blackouts. Truly, with this common sense approach they should win the next election, but it never gets any coverage, so, here, maybe this posting gives it some small bit of coverage?

Posted by libertas @ 09:43 AM 18 Comments

Saturday, June 29, 2013

Excellent analysis of the current situation

Financial Times: Why we must halt the land cycle

Ruinous trust in land speculation as the route to wealth has led to expensive houses and inefficient taxes but, far worse, it ended up destabilising the entire global economy, says Martin Wolf. Those who do not learn from history are condemned to repeat it. This applies not least to the immense financial and economic crisis into which the world has fallen. So what lay behind it? The answer is the credit-fuelled property cycle. From the Financial Times 8th July 2010:

Posted by pete green @ 09:59 PM 21 Comments

Unprecedented Squeeze

Telegraph: Families face 'unprecendented' squeeze on living standards

Essential goods up 25% in 5 years. Thank god nobody had savings. That would be a cruel double punch. However, to be fair, it doesn't seem to have put the general population off voting for Labour and big government. Work camp UK. Too poor to emigrate.

Posted by stillthinking @ 02:47 AM 1 Comments

Cameron's Britain

Guardian: Meet the new class of landlords profiting from Generation Rent

With interest rates at historic lows and rents at historic highs, property moguls such as these buy-to-let millionaires and rent-to-rent pioneers have never had it so good.

Posted by dill @ 02:00 AM 7 Comments

Friday, June 28, 2013

London masks huge house price drops in other areas

Buytolet.com: London micro-market skews house price figures

The latest Nationwide house price index shows that house prices grew at their fastest rate in almost three years last month – but the numbers are largely skewed by transactions in London.

Posted by kevin grey @ 02:18 PM 0 Comments

Is gold heading to $1043, $600 or even $425?

Citi, via: Zero Hedge: Citi: Are Gold And Silver Finding A Bottom?

Ignore the conclusions of this article, draw a line from 1970 to the bottom in the year 2000, and you get a projected bottom for gold of $600. Alternatively, the line from the 1975 and 2000 bottoms show a target of circa $450. If Armstrong's target for Sterling devaluation is right, we could see £575 gold in Sterling. For breakout, we have resistance from the 1980 and 2011 high, up above $1800. Even with these targets holding, the multi decade bull market in gold remains intact, but the gold bulls have not warned people that the gold bull may not co-incide with your personal plans, i.e. need for a home, need to raise a family, set up a business, etc. Gold is going to infinity, like Ron Paul says, but maybe not within your practical timescales.

Posted by libertas @ 02:10 PM 19 Comments

Richie Rich - "What recession?"

AboutProperty: Wealthy enjoy eye-watering property price growth

It appears the sun is always shining on the UK's wealthiest property owners, with the number of £1m plus streets on the up. There are now 23 per cent more streets with an average value over £1m than last year, according to Zoopla's property rich list.

Posted by phil @ 01:16 PM 0 Comments

Month of May

Land Registry: House Price Index

Annual Change +0.5%, Monthly Change +0.1%. £161,969 average price.

Posted by alan @ 12:37 PM 3 Comments

Nationwide reports

Reuters: UK house prices rise at fastest annual pace since 2010

"Nationwide said that house prices rose by 0.3 percent on the month in June to give a 1.9 percent annual rise - broadly in line with expectations and the biggest yearly increase since September 2010". Reuters says this is another sign "that Britain's economy is starting to pick up".

Posted by alan @ 12:33 PM 2 Comments

Power Cuts in 2yrs if we do not quit the EU and allow coal power stations to remain open

Daily Mail: Power Cuts in 2yrs Unless Industry Cuts Back, Warns (Stalinist) Regulator

Will we sit idly by whilst the EU orders us to shut our coal power stations, to "save the planet?" I think somebody watched too many Superman movies. What utter tosh. Will we become reliant on French nuclear power and force more factories abroad? Understand, these dictats are acts of war against Britain. They want is dependent so we submit. It is the equivalent of dropping bombs on power stations and dam busting in WWII. Truth is, that CO2 is a trace gas measured in parts per million that is less potent a greenhouse gas than water vapor, which forms 2% of the atmosphere and is primarily affected by the sun. CO2 is a colorless, non-toxic gas that plants breath. Plants grow faster and need less water with more CO2, but demonise it and you can tax and regulate every aspect of human activity.

Posted by libertas @ 10:48 AM 18 Comments

Thursday, June 27, 2013

Quick, buy now says the Bilderberg News

Bloomberg: Mortgage Rates in U.S. Jump to Highest Since July 2011

"Mortgage rates for 30-year U.S. loans surged to the highest level in almost two years, increasing borrowing costs at a time when the housing market is strengthening and prices are jumping. The average rate for a 30-year fixed mortgage rose to 4.46 percent from 3.93 percent, the biggest one-week increase since 1987, McLean, Freddie Mac said in a statement. The rate was the highest since July 2011 and above 4 percent for the first time since March 2012. The average 15-year rate climbed to 3.5 percent from 3.04 percent". "Prospective homebuyers may be rushing to make deals. Contract signings to buy previously owned homes climbed 6.7 percent in May to a six-year high" (there is only a "recovery" in some areas because BoA, Wells Fargo and other banks temporarily ceased repos).

Posted by alan @ 05:44 PM 13 Comments

Printing energy

Telegraph: Risk of UK blackouts has tripled in a year, Ofgem warns

"Ministers responded by unveiling plans for factories to be paid to switch off in winter to prevent households' lights going out"... . Is there some snag? with using the BoE to purchase government debt with *printed funds* in order to -pay factories to switch off- to keep power going to households? Can this be true? I read this and I just thought the UK is so clearly out of touch with reality, one day people are going to try and grab their cash to escape, from banks that are completely incapable of supplying the funds, and a government to match.

Posted by stillthinking @ 02:38 PM 12 Comments

Nationwide allows landlords to offer three-year tenancies

Planet Property: Nationwide allows landlords to offer three-year tenancies

Nationwide have made a smart and admirable decision to allow buy-to-let landlords to grant longer tenancies. Not before time. Hopefully other lenders will follow

Posted by the planet @ 02:26 PM 0 Comments

Are you feeling lucky?

Planet Property Blog: Gambler wanted for £25k Devon house

As nearby Ridgemont House on Redcliffe Road, St. Marychurch, Torquay, made the news recently when it collapsed into the sea, a neighbouring house is up for auction at a guide price of £25,000. The Rightmove listing does, we believe, slightly understate the situation, saying: “The property appears to be in good order although we have not carried a survey, but we understand that a neighbouring property has suffered severe subsidence.”

Posted by property addict @ 02:18 PM 0 Comments

Guide for First time buyers

Choice Financial Solution: First Home Buyer Mortgage Guide – What you need to know!

What do you need to know when buying a property for the first time.

Posted by choice financial solutions @ 11:53 AM 0 Comments

Q1 2012 revised up to flat - no 2 consecutive quarters of contraction last year

BBC News: UK double-dip recession revised away

Make of it what you will. Worth noting that Q3 only saw growth because of the Olympics (including all ticket sales, which they only accounted for once the events had happened). Strange to think we were on the brink of triple-dip for so long and now we haven't even had a double-dip.

Posted by reticent @ 10:26 AM 8 Comments

Wednesday, June 26, 2013

Balme it on the China.

Bloomberger: Is China to Blame for Rising U.S. Interest Rates?

Could turmoil in Chinese financial markets be the cause of the rise in interest rates on U.S. Treasuries? China's central bank deliberately withdrew liquidity and pushed up the short-term interest rates banks pay to borrow from each other, in an effort to shove the Chinese banking system toward less risk-taking. That squeeze, caused Chinese banks to dump Treasuries onto the market. The influx of sellers then sent Treasury yields up. The U.S. 10-year note now yields 2.6 percent, up 45 basis points since June 1.

Posted by khards @ 09:02 PM 11 Comments

BOE propaganda machine is earning it's money this week!

Guardian: Bank of England calls for assessment of interest rate rises on borrowers

Report warns many will struggle to keep up repayments as Bank deputy says global market movements an amber light for stability. Households could be forced to cut spending or work longer hours to keep up their debt repayments if interest rates rise suddenly. The warning from the Bank of England came as it called for an urgent assessment of the impact from a sharp rate increase after four years of low borrowing costs. The Bank also used its financial stability report to give banks permission to release £70bn of easy-to-sell instruments, such as government bonds, which they have been forced to hold in case there is a re-run of the 2007 credit crunch.

Posted by khards @ 08:58 PM 11 Comments

Except London has accommodation..

Mail: London will become unaffordable for all but the wealthiest

..for 7 million people and there not 7 million wealthy people in the UK. Even as things stand the place soaks up housing benefit money like a sponge.

Posted by stillthinking @ 02:06 PM 3 Comments

Transport infrastructure investment and no cuts to state pension

Myfinances.co.uk: Key points of George Osborne's 2015-16 spending review

George Osborne has announced the government's spending review for 2015-16 setting out plans to try and ensure there is reform, growth and fairness in the way the government spends our money.

Posted by ben @ 01:45 PM 0 Comments

Most of London's new housing benefit claims are from working families

Rent Phil Neville's flat for £15,000 a month

Planet Property: Rent Phil Neville's flat for £15,000 a month

Footballer Phil Neville has put his luxury Manchester apartment up for rent for £15,000 a month. The place has been on the market since 2010, when it had an asking price of £4 million, but that price has since been cut by £250,000. It remains for sale for £3.75 million. Recent tenant was Simon Cowell so may need an exorcist before you move in ....

Posted by the planet @ 12:45 PM 0 Comments

Detached house for auction for £25,000. Stunning sea views!

Planet Property: Detached house for auction for £25,000. Stunning sea views!

Now that's what I call a house price crash ... this property in Devon should be worth £400k but it's up for auction with a guide price of just £25,000 .....

Posted by the planet @ 12:15 PM 0 Comments

New boe governor-get ready for higher interest rates

Daily mail: Get ready for higher interest rates

looks like the powers that be are preparing the public for rate rises...quite a few article recently about the same thing.People will look back and wonder how anyone was so stupid to believe they would be near zero forever

Posted by taffee @ 12:04 PM 21 Comments

New Bank governor says get ready for higher interest rates

Mail Online: Homeowners in thirties and forties warned of mortgage timebomb: New Bank governor says get ready for higher interest rates

Canadian Mark Carney said businesses should prepare for 'slight or material change' in the level of interest rates Outgoing governor Sir Mervyn King said increases a long way off Higher rate a blow to homeowners and firms used to cheap borrowing Read more: http://www.dailymail.co.uk/news/article-2348576/Mark-Carney-Get-ready-mortgage-rate-rise.html#ixzz2XJfmPwJQ Follow us: @MailOnline on Twitter | DailyMail on Facebook

Posted by georgefrancis @ 11:19 AM 0 Comments

As if...

AboutProperty: Let housing deliver growth George!

George Osborne should unleash the power of housing to deliver economic growth, say the Chartered Institute of Housing (CIH). The chancellor's latest £11.5bn of cuts is to be announced today ahead of their implementation in 2015/16.

Posted by phil @ 10:46 AM 0 Comments

Greed, selfishness, disrespectful and dishonest.

Money Week: This generation has been ruined by baby-boomers

Elderly people make up just 15% of the population but account for 40% of public social spending and this “raises severe questions of intergenerational equity.” Absolutely, undeniably, 100% correct. But the golden oldies don’t like it! They are up in arms, but their arguments are invalid. Let’s take a look at what they are. • “We have built this country and are entitled to be rewarded in retirement.” • “We had to work much harder than today’s generation.” • “We never had the luxuries of today’s generation.” “We never had a TV.” “My mum had to do the washing by hand.” “The furthest we ever went on our holidays was Scarborough.” “Young people today have it all.”

Posted by khards @ 09:47 AM 14 Comments

Tuesday, June 25, 2013

Deflationary

Telegraph: Borrowers repay mortgages faster than banks lend new ones

Just to show that sometimes government policy does not alter market sentiment. It appears that, on net, home owners have used lower rates to pay down their mortgage rather than to withdraw cash, on net. This suggests that people have adapted to austerity. Infact, if rates rise, people may yet further pay down their mortgages, dumping savings into their mortgage, draining savings accounts as an arbitrage, because generally, people pay more on their mortgage than they receive in interest on their savings accounts. Thus, banks will be drained of capital until government raise benchmark rates so that the arbitrage between bank accounts and mortgage repayments is narrowed. Since we have a debt based financial system, the re-payment of debt reduces the money supply and is deflation.

Posted by libertas @ 07:05 PM 12 Comments

GBP about to collapse against Euro?

Yahoo Finance: GBP to EUR Chart

Early this year GBP collapsed down below resistance levels vs the Euro & has not recovered. Same vs the US Dollar. For those in the know, there was recently a Bilderberg meeting in Watford, where the Prime Minister, Edd Balls, and others met with the financial elite. A flash back to previous recent Bilderberg meetings shows a meeting in Greece just prior to its collapse, one in Spain just before its collapse. These meetings, look at coverage of them in The Guardian, are the ultimate insider dealings scandal, where the financial and political elite work out who will get the spoils. They were probably debating who gets our motorways, NHS, etc. at pennies to the dollar when the pound crashes. They may attempt to force us into the Euro. UK house prices are about to crash, if you hold $ & €.

Posted by libertas @ 06:17 PM 6 Comments

Robbie Williams’ house up for sale

MSN: UK celebrity homes for sale

Singer Robbie Williams’ former property in Wiltshire is back on the market – all 71 acres of it. Wikipedia reports he bought it for £7Million in 2008, asking price today £5.5Million.....he's gone multi-agent if you search on "Compton Bassett, Calne, Wiltshire" on right move you will see it.

Posted by thecountofnowhere @ 03:03 PM 0 Comments

Indications from the Fed that stimulus measures would be wound down - "misinterpreted"

BBC: Sir Mervyn King: 'Normal' interest rates a long way off

Bank of England governor Sir Mervyn King has warned that world economies are "nowhere near" a return to "normal" interest rates. Sir Mervyn was speaking in his last public appearance as governor, in front of the Treasury Committee. He said that the unwinding of stimulus measures and raising of interest rates would only come after a significant economic improvement.

Posted by jack c @ 01:40 PM 5 Comments

House prices only ever go up..

Telegraph: Mortgage rates only need rise '0.69pc' to make renting cheaper

Interest rates are rising in America but falling in Britain, giving another boost to house prices, explains Andrew Oxlade. On the issue of how far rates would need to rise to turn the balance nationally, I asked Zoopla to crunch the numbers. It tells a very different story from the situation in America. Its estimate is that the average mortgage rates paid by Britons would have to rise only by 0.69 points to 5.69pc, taking the cost up by £80 to £668 a month, to match the cost of renting. Fortunately for home buyers, mortgage rates here are falling, unlike across the pond, where the average 30-year fixed rate is up from 3.4pc to 3.9pc in the past month.

Posted by khards @ 12:45 PM 4 Comments

Experts eh?

FT: Fix mortgage rates now, say experts

Homeowners should consider locking into record low fixed-rate mortgage deals now, as industry experts warn that with US quantitative easing likely to wind down, UK rates are unlikely to get cheaper. Mortgage rates have been on a downward trend over the past year as banks and building societies passed on cuts in the cost of funding. This resulted in homeowners enjoying access to some of the cheapest-ever fixed-rate deals. On Friday, Yorkshire Building Society launched a ten-year fix at 3.89 per cent, and a five-year fix at 2.44 per cent. However, several mortgage brokers believe the steady fall in fixed-rate deals might be coming to an end after banks saw a jump in their funding costs this week. On Friday, five-year interest-rate swaps – rose from 1.35 per cent to 1.57.

Posted by khards @ 12:39 PM 5 Comments

Rate beats Tesco 2-year fix but product fee high at £1,545

Myfinances.co.uk: Chelsea BS launch 2-year fix at 1.64%

The Chelsea Building Society has announced that it is to cut the rate on its two-year fixed rate mortgage for borrowers with a 65 per cent loan-to-value (LTV) ratio to just 1.64 per cent.

Posted by ben @ 11:52 AM 0 Comments

Capital repayments outweigh new borrowing though

Myfinances.co.uk: BBA reports mortgage approvals up to 16-month high in May

The British Bankers Association (BBA) reports that gross mortgage lending went up by 7.5 per cent in May, compared to the recent monthly average in a further sign that the property market is strengthening.

Posted by ben @ 11:49 AM 0 Comments

Monday, June 24, 2013

Is this a spike or the start of an upward trend?

Telegraph: UK borrowing costs hit two-year highs

"Britain's 10-year borrowing costs touched their highest levels in almost two years on Monday, as last week's signal from the Federal Reserve that it is ready to rein in stimulus measures". "Yields on Britain's 10-year gilts at one point jumped 13.5 basis points to 2.5pc - their highest level since October 2011 - mirroring a rise in borrowing costs across Europe".

Posted by alan @ 06:51 PM 20 Comments

It's property speculation gone wrong, stupid

Independent.ie: Inside Anglo ~ the secret recordings

"Exclusive: Tapes reveal the lies and deception that led to the bank bailout". (Yes, it's all mad conspiracy theory till someone draws away the cloak of deception).

Posted by alan @ 03:15 PM 0 Comments

"We simply aren't building enough houses"

BBC: Housing report critical of government 'short termism'

Successive governments have failed to produce a coherent long-term strategy for housing, the Royal Institution of Chartered Surveyors has said. In a report, the Rics housing commission said some of the coalition's policies were providing short-term help for the house-building industry. But it argued that ministers' lack of consistency over the past 50 years has exacerbated the failures of the market.The government said it was cleaning up the mess left by its predecessor. But Labour's Jack Dromey said the coalition had failed to prevent the "biggest housing crisis in a generation". The Rics study concluded that the housing market has not delivered enough homes at affordable prices.

Posted by jack c @ 01:41 PM 5 Comments

Infographic: What $5 million will buy you in ten world cities

Planet Property: Infographic: What $5 million will buy you in ten world cities

A seven bedroom mansion in Miami; a maisonette in London ...

Posted by the planet @ 01:14 PM 0 Comments

EPCs dismissed as a waste of time

Planet Property: EPCs dismissed as a waste of time

Energy Performance Certificates (EPC) are an expensive and ineffective waste of time, says industry expert - a claim that contradicts government research on the value they can add to a property ... who to believe: government or home search agency??!

Posted by the planet @ 12:57 PM 1 Comments

Hahahahaha tell me another one!

Mail: Central banks told enough is enough in a call that says continued stimulus measures will 'hurt' financial stability

Just days before Sir Mervyn King (pictured) hands over the keys of the Bank of England to successor Mark Carney, the Bank of International Settlements (BIS), which represents the world’s central banks, said its members have already done enough to aid a recovery and more stimulus measures would only hurt financial stability.

Posted by happy mondays @ 11:39 AM 4 Comments

At Last, Competition for the NSA and GCHQ

Telegraph: Barclays to sell on data from savers and track mobile phones

"Barclays Bank is to start selling data on its millions of current and savings account customers to other companies for the first time". Believe it or not, people are willing to pay to know how quickly you are paying off your mortgage! This information could be passed to government. Maybe they need to check on the Help to Buy scheme?

Posted by alan @ 09:24 AM 3 Comments

Sunday, June 23, 2013

Don't cook the golden property goose! - Ha!

About Property: Don't cook the golden property goose!

Scaring off foreign buyers could be the property equivalent of cooking the golden goose, the CEO of the London Central Portfolio (LCP) warns. Last week's comments from Liberal Democrat MP Simon Hughes have really whipped up a storm of controversy in the prime property market. The high profile London MP said that some areas should be put "off limits" to foreign buyers, so as to protect the capital for Londoners. Over the last five years London's property market has been viewed as a safe haven for those reeling from the financial crisis, attracting investment from all over the globe.

Posted by ian @ 11:02 PM 0 Comments

More hype

Economist: The rubber bubble

Even the economist has become a cheerleader for the housing market, so much for free market economics and small government. They fail to mention that this is only possible given the fact we are bankrupting ourselves just so Osborne and co can win another term, hardly makes economic sense now. They only seem to be against government intervention when it involves subsidies for food and fuel in developing countries.

Posted by officebum @ 03:37 PM 1 Comments

Has a secular bull market in interest rates commenced? Are they set to rise for the next 30yrs?

Armstrong Economics: Rising Interest Rates – Bullish for the Market

Interest rates have been falling, as a trend, for about 30 years. They talked about negative interest rates, but Armstrong explains here, that artificially low interest rates result in a shortage of cash, which ultimately is what drives lenders to raise rates, to attract capital back into the banking system. Indeed, the EM Money Market chart from JPM on a Zero Hedge posted in the comments, shows rates bottoming out right about when gold reached its blow off top in 2011, with the recent rates breakout out just when gold prices began to collapse. So we could see a 20 year bear market in gold & bull market for cash & bond interest rates? If gold is a non-interest bearing currency, demand for it should be inverse to that of interest bearing currencie

Posted by libertas @ 01:49 PM 35 Comments

Saturday, June 22, 2013

Chop, Chop!

Telegraph: Osborne to cap welfare spending

"George Osborne will unveil a fundamental overhaul of spending this week by outlining plans for limits on previously uncontrolled parts of the public finances, such as housing benefit". Are we a nation living beyond our means or are we scratching around looking for savings in order to fund our plutocracy?

Posted by alan @ 09:42 PM 7 Comments

Diazepam in demand

Guardian: London housing crisis: high costs, high stress

A new poll for the Chartered Institute of Housing points to Londoners' deep anxiety about their housing costs and how much more widespread it is compared with the rest of the country. Figures gathered by Ipsos MORI earlier this month showed that 36% of respondents are already concerned about their ability to pay their rent or mortgage, 45% are worried that they won't be able to meet their payments in a year's time, and that 53% are caused a great deal or a fair amount of stress by the expense of their accommodation.

Posted by dill @ 05:16 PM 1 Comments

Mortgage Rates Rising In Usa

Mortgage News Daily: Nightmare for Mortgage Rates: Way Worse Than Freddie Told You

Mortgage rates have had a far worse week than than you've been told anywhere else, and today was even more freakishly destructive than the previous two days. Taken together, this is the worst week for mortgage rates we have on record. Today is one of two times in the past 10yrs where the average borrowing rate for top tier scenarios moved up by at least a quarter of a point. A quarter of a point may not sound like much, but in terms of day-to-day movements in 30yr fixed mortgage rates, it's catastrophic. That leaves best-execution at a stomach-churning 4.625% today.

Posted by khards @ 04:43 PM 5 Comments

Don't buy bonds

Telegraph: How to protect your pension from a bond market crash

If there is a serious withdrawal of pension funds from bond purchases, then government debt financing will become disproportionately harder. IMO (...) if the state can't use interest rates as a policy tool, because the higher costs are unaffordable, then options would become to offload the increased costs of borrowing into the private sector (auto-enrollment, mandatory purchases of gilts) which is a card to some extent already played. Or simply and more directly move to direct restrictions on lending. Neither of which looks particularly good, just another step to national insolvency. This reminds me a bit of the absurdity of saving for your pension while carrying a mortgage, when the yield on your pensions savings is lower than your mortgage costs.

Posted by stillthinking @ 05:11 AM 3 Comments

Friday, June 21, 2013

City fraud is officially on the agenda

Greg Pytel: Mainstream catching up

A reference to BBC "This week" feature on banksters. A concept of the financiers in the City committing high crimes en masse is becoming mainstream now. Why so late?

Posted by ant @ 11:43 PM 2 Comments

The next bailout will be Ireland.

Fin Facts: Irish home mortgage arrears 90 days+ above 12% in Q1 2013

The Central Bank today published Q1 (first quarter) 2013 data on mortgage arrears, repossessions and restructures, which shows that there were 95,554 (12.3%) private residential mortgage accounts for principal dwelling houses (PDH) in arrears of over 90 days at end-March 2013, up from 92,349 accounts (11.9%) at end-December 2012. Buy-to-let arrears were almost 20%. The Bank said that at end-March 2013, there were 774,109 private residential mortgage accounts for principal dwellings held in the Republic of Ireland, to a value of €109.9bn. Of this total stock of accounts, 95,554, or 12.3%

Posted by khards @ 04:29 PM 3 Comments

One in *330 families living in temporary accomodation.

Inside Housing: Homelessness and B&B use rise again

*Using the ONS number of household figures (http://www.ons.gov.uk/ons/rel/family-demography/families-and-households/2012/stb-families-households.html) The number of applicants accepted as homeless by councils leapt up by 6 per cent in the past year and those placed in bed and breakfasts by 14 per cent, according to government statistics. The Communities and Local Government department data shows there were 53,540 homelessness acceptances in England in the financial year 2012/13 compared to 50,290 in 2011/12 There were 55,300 households in temporary accommodation on 31 March 2013 compared to 50,430 on 31 March 2012 – a rise of 10 per cent. And 4,500 households were in bed and breakfast accommodation on 31 March this year – which was a rise of 14 per cent – from 3,960 on 31 March

Posted by khards @ 03:53 PM 1 Comments

Average rental yield falls to 5.3%

Myfinances.co.uk: Pace of rent rises slows as more tenants buy

The increase in the cost of renting slowed in May helped by a rise in activity in the housing market that meant as more people purchased homes the supply of rental property increased.

Posted by ben @ 12:23 PM 7 Comments

Don't Keep your Cash in the Banks

Reuters: EU to decide who pays when banks fail

"The European Union will seek on Friday to forge rules to force losses on large savers when banks fail, a sensitive reform that could shape how the euro zone deals with its sickly banks". When all those property deals go sour, guess who will pay? Yes, the saver. The friends of the bankers will get their cash out just in time (like Cyprus) but someone has to foot the bill. I believe corrupt Banksters and Politicians will ruin capitalism. Just look at Brazil - 6 months ago anyone would have thought they liked football! Maybe the corruption changed all that. Those million protesters are all wrong, of course. Everything is OK, move on.

Posted by alan @ 08:21 AM 10 Comments

Builders advised to planning for the next election

Telegraph: Developers must build homes or lose land, Miliband warns

Developers could be forced to build on land they are hoarding or hand it back to communities, under proposals to be outlined by Labour. Ed Miliband, the Labour leader, will say companies sitting on land while waiting for the price to rise must “use it or lose it” under moves to ease the housing shortage. In a speech in Birmingham, he will suggest that building firms should be fined if they refuse to develop land that has been given planning permission.

Posted by quiet guy @ 01:18 AM 19 Comments

Thursday, June 20, 2013

Banksters merit special treatment, unemployed youth don't

Reuters: Euro zone bailout fund will have 60 billion to save banks

"Euro zone finance ministers agreed on Thursday their euro zone bailout fund will have 60 billion euros (£51.2bn) to rescue systemically important banks and that governments will contribute 20 percent of the needed capital injection, a euro zone official said".

Posted by alan @ 11:22 PM 0 Comments

Mortgage lending rises to highest since credit crunch

Myfinances.co.uk: Mortgage lending up 21% in May to highest level since 2008

Mortgage lending rose by 21 per cent in May to reach the highest level since 2008 providing a clear indication that the property market is growing. The Council of Mortgage Lenders (CML) said gross mortgage lending reached £14.7 billion in May, a five-year high and up 21 per cent on the £12.2 billion lent in April.

Posted by ben @ 04:50 PM 0 Comments

The Truth is out there!

Moneyweek: How the government fiddled house prices

Most people will tell you that this is down to the huge demand in the UK for houses. We have a small island and a growing population, they will say, so house prices can’t ever really fall much. This is nonsense. The reason, and the only reason, that house prices have not collapsed in Britain as they have in, say, the US and Ireland is because the government has not allowed them to. Our base bank rate is the lowest it has been since 1694. This has brought mortgage rates down substantially.

Posted by happy mondays @ 02:11 PM 6 Comments

Public deliberately confused by lenders

Planet Property Blog: 95.5% can't identify the cost of a mortgage deal

High fees and confusion are the tactic favoured by lenders… New Which? research finds that, as mortgage fees spiral, 99.5% of homeowners and homebuyers struggle to identify the total cost of a mortgage deal. Arrangement fees have rocketed in the last two years and the Which? analysis of around 2,800 mortgages found that only 19% of mortgage deals are now available without any set-up fees.

Posted by property addict @ 12:09 PM 0 Comments

Draw your own conclusions

WSJ: Bank of England Chief Makes Parting Plea for More Stimulus

"The Bank of England Gov. Mervyn King made a parting plea for further stimulus for the U.K. economy in his final speech before handing over the reins of Britain's 319-year-old central bank to Mark Carney".

Posted by alan @ 07:40 AM 31 Comments

Wednesday, June 19, 2013

When the market intervention stops it will go back up.

Kshitij: Graph showing the effect Funding For Lending has had on LIBOR

At some point the government will have to stop meddling in the markets and LIBOR will carry on rising. In these charts you can clearly see the effect funding For Lending has had on the LIBOR rate. The LIBOR rate is now so low there is nothing left that the government can do to lower it, the question is can they keep it this low? Will mortgages rates rise? If the answer is no rates will not rise, then asset values will rise until they reach a peak. At this point rates will not be able to go lower and prices will not be able to rise.

Posted by khards @ 10:06 PM 4 Comments

Enough is enough

A serious risk to customers and lenders alike

Telegraph: 'Disgraceful' mortgage broker receives record £1m fine

"Regulator brands mortgage broker a "disgrace" to the financial services industry and hands out record fine". "The FCA said Gurpreet Singh Chadda, who traded under the names Red2Black Homes and B&L Homes, had misled vulnerable customers who were already in severe financial difficulties about the nature of his sale and rent back arrangements". "Aside from the poor selling price, Mr Chadda also charged "grossly unfair and excessive hidden fees" to those who were selling their home, most of whom were already in financial distress."

Posted by alan @ 06:08 PM 1 Comments

Och Aye! - Think I might move to Scotland.

BTL: House prices in Scotland ‘fell £1,982 in year to April’

Average house prices in Scotland fell by £1,982 in the 12 months to April 2013, according to new data from LSL Property Services/Acadametrics.

Posted by kevin grey @ 05:53 PM 0 Comments

Just about sums it up really.

The Oxford Times: Joy as 'overpowering' extension is given the boot

NEIGHBOURS have celebrated a decision to throw out plans to extend an old house in the Headington conservation area. Residents said the area’s green and leafy character had been protected by the decision to reject the development at 29 Old High Street. Submitted by Martin Young, it aimed to knock down part of a 19th century house and build a modern side and rear extension. All six Oxford city councillors unanimously opposed the application at an east area planning committee on Thursday night. Planning officer Martin Armstrong said: “It will dominate and change the character of the site.” He added that the plans would encroach on house number 33 next door. The decision is the latest twist in a long-running saga involving the site.

Posted by khards @ 04:01 PM 3 Comments

QE and base rate on hold for now

Myfinances.co.uk: No change in QE or rates as Sir Mervyn exits Bank of England

The minutes from Sir Mervyn King’s last meeting as governor of the Bank of England’s Monetary Policy Committee (MPC) shows that once again the outgoing governor of the central bank was outvoted by 6-3 on increasing the quantitative easing (QE) programme by £25 billion.

Posted by ben @ 01:22 PM 4 Comments

Will buy-to-let rental yields rise too?

Myfinances.co.uk: Monthly rents will hit £800 by 2015, says LSL Property

Average monthly rents in England and Wales will hit the £800 mark by the middle of 2015, according to LSL Property Services.

Posted by ben @ 01:17 PM 2 Comments

Interactive London property map

Planet Property: Interactive London property map

Check out price changes in London over the last 12 months and previous 5 years (hint: they've probably gone up...)

Posted by the planet @ 11:55 AM 0 Comments

Converting offices in London could boost value of building by 90%

Planet Property: Converting offices in London could boost value of building by 90%

If this research is right, get ready for a wave of office conversions in Central London ....

Posted by the planet @ 11:35 AM 4 Comments

Read this...the comments from the local estate agent are pricesless

Northampton Chronicle: Young people in Northamptonshire priced out of housing market

"Richard Greener, of Richard Greener Estate Agents, said young people needed to learn to manage their money better. He referred to the “have it now” society of instant gratification, where young people readily spend their income on mobile phones, video games and nights out rather than saving money."

Posted by thecountofnowhere @ 09:16 AM 2 Comments

All eyes on the fed (14.00 ET)

Telegraph: If Bernanke really shakes the tree, half the world may fall out

We no longer have a free market. The world’s financial asset prices have become a plaything of central banks and the sovereign wealth funds of a few emerging powers.

Posted by dill @ 05:37 AM 15 Comments

So are bankers more to blame than politicians?

BBC News: Jail reckless bankers, standards commission urges

Senior bankers guilty of reckless misconduct should be jailed, a long-awaited report on banking commissioned by the government has recommended. The Parliamentary Commission on Banking Standards was set up by Chancellor George Osborne last year after a number of scandals involving the industry. The cross-party group's fifth report attacked the lack of accountability of bankers and also said some bonuses should be withheld for up to 10 years.

Posted by quiet guy @ 02:04 AM 2 Comments

Tuesday, June 18, 2013

Another reason why University leavers might not have enough cash for a deposit

Guardian: Student loans 'plot' against graduates signals a time for major policy change

Rothschild proposes seriously increasing the student loan rate (and breaking the deal) with taxpayers underwriting it in a new "hedge" financial instrument. "This plot against graduates risks undermining trust in the loans system and the entire university application process, tearing a big hole in the social fabric of the UK in the process. It is time to walk away from this trainwreck of a policy and start again". Another transference of wealth from the young to bankers.

Posted by alan @ 07:42 PM 10 Comments

Old and new. New and old.

Bank of England: News Release - Appointment of Chief Operating Officer

"Mark Carney, who will become Governor of the Bank on 1 July, and made the appointment, said, “I am delighted that Charlotte [Hogg] will be part of the senior team at the Bank. My tenure at the Bank will oversee a significant transition.”"

Posted by dill @ 05:51 PM 0 Comments

2-year fix from 1.69 per cent

Myfinances.co.uk: Yorkshire BS cut rate on 10-year fixed rate mortgage to 3.89%

The Yorkshire Building Society has announced that it is to cut the rate on its 10-year fixed rate mortgage to just 3.89 per cent for borrowers with a loan-to-value (LTV) rate of 75 per cent.

Posted by ben @ 05:06 PM 0 Comments

Worth repeating

WSJ: Property Crash Enters U.K. Risk List

Summary of the systemic risk survey.

Posted by dill @ 02:43 PM 3 Comments

Cameron too busy planning a war with Syria to care

Telegraph: Building societies warn on 'house price bubble'

"The Building Societies Association has become the latest critic of the Government's Help to Buy property scheme, warning that it could inflate property prices". (anyone listening?...No, I thought not)

Posted by alan @ 12:39 PM 18 Comments

When will it end? Another report shows price increases

BTL.com: ONS: House prices up 2.6% in 12 months to April

UK house prices increased by 2.6% in the 12 months to April 2013, new data from the Office for National Statistics (ONS) shows. Prices in England increased 2.8% in the period, while Wales witnessed a 6.2% rise, Scotland a 1.2% increase and Northern Ireland a 0.8% rise. The increase in England was driven by a 6% growth in London and a 3.6% increase in the east Midlands.

Posted by kevin grey @ 12:27 PM 1 Comments

Entertaining price drop from Robbie Williams

Planet Property Blog: Robbie Williams' country estate price slash

Robbie Williams, the now-you-see-him-in-Take That, now-you-don’t bad boy, allegedly bought the 18th century country estate in 2009 after hearing about the mystical ley lines that are said to criss cross Wiltshire and act as a focus for powerful earth energies, or even as a guiding system for UFOs.

Posted by property addict @ 11:48 AM 0 Comments

Survey results 2013 H1

Bank of England: Systemic Risk Survey

"There are three new entrants to the top seven risks: the risk of property price falls (cited by 25% of respondents, up 11 percentage points), operational risk (up 10 percentage points to 24%), where ‘cyber’ security was most frequently mentioned, and risks surrounding the low interest rate environment (the fastest growing risk, up 16 percentage points to 24%). Participants’ perceptions of an increased risk of property price falls (in particular residential property price falls) could be consistent with views of prices becoming overinflated or about to become overinflated. Responses in the low interest rate category focused on the risk that artificially low interest rates are creating distortions in asset allocation, potentially leading to overinflated risky asset prices."

Posted by dill @ 10:29 AM 2 Comments

It's probably rigged anyway - everything else is!

Reuters: UK inflation rebounds more than expected in May

"British consumer price inflation rebounded due to a record rise in air fares and higher fuel prices, raising questions about whether April's seven-month low was simply a blip. The Office for National Statistics said annual CPI rose to 2.7 percent in May from April's 2.4 percent". (Everyone else thinks their supermarket shop is up by 7 to 8% YoY too).

Posted by alan @ 09:52 AM 3 Comments

Sounds a bit like Bradford & Bingley or Northern Rock

Telegraph: Fitch says China credit bubble unprecedented in modern world history

"There is no transparency in the shadow banking system, and systemic risk is rising. We have no idea who the borrowers are, who the lenders are, and what the quality of assets is, and this undermines signalling," she told the DT. "While the non-performing loan rate of the banks may look benign at just 1pc, this has become irrelevant as trusts, wealth-management funds, offshore vehicles and other forms of irregular lending make up over half of all new credit. "It means nothing if you can off-load any bad asset you want. A lot of the banking exposure to property is not booked as property". Long term liabilities funded by short term debts (didn't any of them study ONC economics and business studies or were they just greedy and stupid?).

Posted by alan @ 09:14 AM 3 Comments

Monday, June 17, 2013

Waste in the NHS

Northampton Chronicle: Sensor alarms to be used to warn elderly patients at risk of falls

"NGH now has 22 bed and chair alarms, costing just over £7,000 each, and were paid for by surplus contributions to the NGH charitable fund staff lottery during last year." That's £154K on chair alarms !!!! That is alarming :-) One of the readers point our you can buy a fall alarm of the intenet for around £200

Posted by thecountofnowhere @ 05:46 PM 1 Comments

Capital snowball

FT: Priced out of Paris

"there’s an iron law of 21st-century life: when something is desirable, the “one per cent” grabs it. The great cities are becoming elite citadels."

Posted by rumble @ 03:10 PM 2 Comments

The jobless recovery re-gains some momentum...

Northamptonshire Telegraph: Corby haulage company closes with the loss of jobs

"A haulage company which has operations in Corby and St Albans has gone into administration with the loss of a total of 53 jobs." No matter, they can all get into BTL and make a fortune...

Posted by thecountofnowhere @ 02:29 PM 0 Comments

Real Estate crisis - who could have forecast this calamity?

Reuters: Slovenian bank cleanup may be delayed over EU audit demand

"Slovenia's ring-fencing of billions of euros of bad debt racked up by state-owned banks may be delayed by an audit expected to show the country has underestimated its economic problems! Transfers of the debt to a 'bad bank' - called The Company for Management of Bank Claims - are due to start this month, and the entity has scheduled its first news conference for Tuesday". "The government aims to absorb 3.3 billion euros of loans that turned sour after a real estate bubble burst, putting Slovenia at risk of becoming the euro zone's next bailout recipient" (you don't need to inhabit a vampire castle in Slovenia to know the rest of Europe's banks are in the same state).

Posted by alan @ 02:25 PM 5 Comments

Average asking price for property in England and Wales exceeds £250,000 for first time

BuyToLet.com: Rightmove: Average asking price exceeds £250,000

The average asking price for a property in England and Wales has exceeded £250,000 for the first time. Rightmove’s latest House Price Index, which is based on asking prices of homes newly listed on the company’s website, shows property prices increased 1.2% From May to June. At £252,798, the average asking price is now 2.1% higher than it was in June 2012.

Posted by kevin grey @ 12:52 PM 1 Comments

Yes they are.

AboutProperty: Are high house prices changing the social landscape of the UK?

Almost three quarters of those brought up in the era of booming property prices are worried about a society divided by the cost of housing. The impact of social and economic differences between people who can afford a home and those who cannot are a concern for 71 per cent of 20-45 year olds. And there appears to be no end to the problem in sight, with over half of those surveyed by Halifax predicting that the next generation will be forced to rent rather than buy.

Posted by phil @ 11:53 AM 1 Comments

Energy saving improvements could increase value by £16,000

Planet Property: Energy saving improvements could increase value by £16,000

Pretty impressive: new research claims that making energy-saving improvements to your property could increase its value by an average of £16,000

Posted by the planet @ 10:08 AM 4 Comments

Bond holders "Co-Opted" in

Guardian: Co-operative Bank to list on stock market in rescue deal

"Bank agrees 'bail in' with City regulator to raise £1.5bn, with bondholders taking a loss on their investments". (Regular readers will recall the reasons for the debacle - poorly performing property loans).

Posted by alan @ 08:57 AM 7 Comments

Wow! Let the good times roll..

Mail: A home for a quarter of a million: The average UK asking price has reached a record high of £250,000 Read more: http://www.dailymail.co.uk/money/mortgageshome/article-2342805/A-home-quarter-million-The-average-UK-asking-price-reached-record-high-250-000.

Despite the seemingly positive schemes such as NewBuy and Help to Buy - which give first timers with small deposits a lift onto the property ladder - and the more industry-focused Funding for Lending which has slashed rates, these latest figures will do little to quell the wide-spread worry that the government is unwittingly creating an artificial 'property bubble.'

Posted by happy mondays @ 08:30 AM 5 Comments

Unsurprisingly, Steve Keen is not impressed

YouTube: SteveKeen on George Osborne's Ponzi Scheme

The video is only 30 seconds long and you can guess the content...

Posted by mark wadsworth @ 08:10 AM 5 Comments

Sunday, June 16, 2013

Help to Buy: Get in if you can

FE TrustNet: Greateset Ponzi scheme in living memory

One FE Alpha Manager has called Help to Buy “the greatest Ponzi scheme in living memory”, but IFAs have urged anyone who wants to get on to the housing ladder to take advantage of all it has to offer.

Posted by stuartking @ 06:04 PM 6 Comments

Banks REALLY know how to treat a customer :(

Bloomberg: BofA Gave Bonuses to Foreclose on Clients, Lawsuit Claims

"Bank of America Corp, the second-biggest U.S. lender, rewarded staff with cash bonuses and gift cards for meeting quotas tied to sending distressed homeowners into foreclosure, former employees said in court documents. Mortgage workers falsified records and were told to delay U.S. loan-assistance applications by requesting paperwork that the Charlotte, North Carolina-based bank had already received, according to statements from ex-employees filed last week in federal court in Boston" (Yes, it's another stitch up).

Posted by alan @ 04:27 PM 1 Comments

It’s over for buy-to-letters

MoneyWeek: It’s over for buy-to-letters

And as the squeeze on government finance continues, it’s not inconceivable that there’ll be taxes to come. If not a straight tax, then it could well be through stealth. Maybe they’ll limit the amount of mortgage interest that can be offset against rental income? That would be an absolute disaster for over-leveraged landlords.

Posted by martingreen @ 04:20 PM 3 Comments

HM Government e-petitions: Green Belt Revision

HM Government e-petitions: HM Government e-petitions: Green Belt Revision

The housing shortage is purely due to planning restrictions, due to lack of land being available for building. This can be addressed by revising the green belt to both expand the green belt but vitally create a 2-mile corridor in the middle of the existing green belt around London assigned for development of housing and infrastructure.

Posted by first time buyer @ 02:14 PM 0 Comments

Sign the e-petition!

Friday, June 14, 2013

I've got land, give me money!

Conservative Home: Steve Midgley: Help to Buy may have its critics. But as a small builder, I'm all in favour

Builder welcomes Help to Buy and gets shot down in the comments section

Posted by stuartking @ 10:59 PM 18 Comments

The Clearances continue

Western Morning News: Mass exodus of younger families from countryside

The number of people aged 30-44 living in the rural Westcountry has declined by 9%in a decade. “If we don’t start building more homes that ordinary families can afford, our treasured countryside will become the preserve of the old and wealthy".

Posted by greenmind @ 10:14 PM 6 Comments

Get worried, George 'Help to Broke' Osborne

Project Syndicate: The Reemergence of Housing Bubbles: Should We Be Worried?

if overnight rates go from near zero to 2.2 percent in three years, and 10-year Treasury rates rise from a recent low of 1.6 percent to 4.5 percent, as projected by the Congressional Budget Office in the United States, then will people in Canada, the U.K., and Australia expect their house prices to fall by 50 percent? Assuming that most homeowners do not anticipate this sort of plunge in prices, and have not hedged themselves against this possibility, we may be in for another round of very bad news if interest rates ever return to more normal levels. It is remarkable that the latest run-up in house prices has received so little attention from people in policy positions. There may be an enormous price to pay for the continued lack of attention to housing bubbles.

Posted by stuartking @ 05:39 PM 3 Comments

Accord unveil 2-year fixes from 2.09%

Myfinances.co.uk: Accord unveil 65% LTV products with 60% LTV rates

Accord Mortgages has revealed a new product series that will offer residential mortgages at competitive rates. The 65 per cent loan-to-value (LTV) mortgages will have rates from 2.09 per cent, all of which are on two-year fixed rates.

Posted by ben @ 12:06 PM 3 Comments

Home-Owner-Ist In Chief gets the facts straight

City AM: Imagine if the price of food had gone up as fast as that of homes

The HIC writes - as so often - an article which is 90% correct, as long as he sticks to facts e.g. "PEOPLE, not commodities, land or even capital, are the ultimate resource of an economy, as the US academic Julian Simon famously put it. Without talented, motivated, skilled and educated individuals, nothing is possible; capital itself is a product of labour." but then ruins it all by sticking to the Homey mantra that "Rising food prices are entirely bad, yet rising [land] prices boost owners’ wealth." Ah well.

Posted by mark wadsworth @ 10:52 AM 7 Comments

IMLA catches on

Telegraph: Mortgage market undermines wanting to own home, report claims

The mortgage market is "hardwired" to undermine the UK as a nation of homeowners, the industry warned, predicting falling levels of home ownership despite a near-term boost to the housing market.

Posted by dill @ 09:31 AM 4 Comments

Thursday, June 13, 2013

The cost of high house prices

The Independent: Children in working families fall below the poverty line

The number of children growing up in absolute poverty in “breadline Britain” increased by 300,000 last year – an annual increase of 2 per cent, representing the biggest rise in two decades – according to official Department for Work and Pensions figures. The rise means a total of 2.6 million children are now raised in poverty. After housing costs, the number is even higher, with 3.5 million in families whose incomes are significantly lower than the rest of the population. And tomorrow's Daily Express - as ever - hails what it claims are "record house prices"

Posted by stuartking @ 11:37 PM 6 Comments

London EAs don't look outside Zone 3

Estate Agent Today: House prices to go up by a third in next five years, claim

House prices will rise 5.5% by the end of this year and accelerate by nearly 30% over the next five years, Chesterton Humberts has predicted. Despite the South continuing to outperform the rest of the country, Chesterton Humberts also projects that total growth in the other regions will all improve, with house prices in East Midlands and Yorkshire & Humber increasing by over 25% followed by West Midlands (19.6%), North-West (18.3%) and North-East (11.8%).

Posted by sibley's b'stard child @ 10:25 PM 6 Comments

What next for a rigging scandal? Gold or House Prices?

Bloomberg: EU Urges U.K. to Probe Currency Rigging in Libor’s Wake

"Britain should investigate the manipulation of currency rates, EU officials said after Bloomberg News revealed that traders have been rigging foreign-exchange benchmarks for more than a decade. “They need to get to the bottom of it,” Sharon Bowles, 60, chairwoman of the European Parliament’s economic and monetary affairs committee and a member of the U.K. Liberal Democrat party, said in an interview. “It’s quite upsetting we have got another bad-news story. It’s time we managed to restore the reputation of our banks.” (Has anyone got a PRISM terminal?).

Posted by alan @ 06:56 PM 1 Comments

Birds in neighbourhood boost prices

Planet Property: Birds in neighbourhood boost prices

Well that's the claim any way ... but are they the cause or the symptom??!

Posted by the planet @ 01:43 PM 0 Comments

The neighbours haven't mentioned their 2nd home lately

WSJ: Spanish House Prices Slump

"Spanish house prices fell at their fastest quarterly pace on record in the first quarter, raising concerns that the country's embattled banking sector may need more capital despite a recent bailout. According to data released Thursday from Spain's National Statistics Institute, or INE, house prices in the first quarter dropped 6.6% from the fourth quarter, the fastest pace since INE began collecting house price data in 2007".

Posted by alan @ 12:27 PM 0 Comments

Prices have no further to fall!

Planet Property Blog: Britain's biggest bargain - house at auction for £0

Double-fronted period property in former mining village with a guide price of zero… Described by the auctioneers Paul Fosh as ‘little more than a shell requiring complete renovation’ this three-bed victorian end terrace in the former mining village of Nantymoel, near Bridgend, South Wales is a bargain to end all bargains. Intrepid marketing manager for the auctioneers told us today that he had actually ventured inside, and let’s just say don’t expect too much in the way of mod cons for your, er, no money.

Posted by property addict @ 11:56 AM 3 Comments

Where's my violin ?

Sky News: RBS To Unveil 2,000 Investment Bank Job Cuts

"The latest slew of cuts will take total number of jobs lost at RBS since the 2008 crisis to nearly 40,000, Sky News learns." The last slew ?

Posted by thecountofnowhere @ 07:38 AM 3 Comments

Wednesday, June 12, 2013

Good looking estate agents get higher prices

Planet Property: Good looking estate agents get higher prices

If you're planning to sell make sure your estate agent is a looker ... according to new research they get higher prices ...

Posted by the planet @ 06:23 PM 1 Comments

All publicity no policy...

AboutProperty: Boris Johnson: Is he all talk on housing?

Boris Johnson's ambitious plans to build 400,000 new homes in London over the next decade are unlikely to be realised, according to data from Knight Frank. Speaking yesterday in his Vision 2020 report, the Conservative mayor of London acknowledged the problem facing London's house hunters and pledged to get developers building. However recent studies suggest that at the current rate just 277,240 new units will actually be delivered in the capital over the next decade, leaving the mayor well shy of his target.

Posted by phil @ 01:10 PM 10 Comments

Sorry. LOL.

BBC: Ex-HBOS chief James Crosby stripped of knighthood

"I am deeply sorry for what happened at HBOS." Mr Crosby also resigned as a non-executive director of Compass Group and gave up 30% of his £580,000-a-year HBOS pension, meaning he will waive around £174,000 this year.

Posted by doomwatch @ 11:47 AM 1 Comments

"You're probably the sucker at the casino"

Michael Hudson: Monopoly price tyranny

"If you live in the real world of inflation, declining wages and rising unemployment you're probably the sucker at the casino. Unless you live in the high-frequency-trading, dark-market-dwelling, fictitious-capital-wielding financialised world you'll never afford to live in the real world, never be able to compete with those who steal your wealth with spoof trades and bogus securities". Max Keiser then slams the huge markets in which 'benchmark' prices are set, as with Libor, by market participants who trade around the benchmark price and are motivated to set that price to benefit their positions - including hedgefund managers who get huge payouts for beating their own benchmark - irrespective of whether they beat the market. Then Hudson on banks, asset prices and debt deflation

Posted by icarus @ 11:18 AM 1 Comments

It went down, down, down, Devil knew where it went...

Mortgage Introducer: Mortgage lending down in first three months of 2013

The latest quarterly Mortgage Lenders and Administrators Statistics (MLAR) from the Bank of England and Financial Conduct Authority also showed that net advances were 52 per cent lower than in Q1 2012, down to £1.3 billion. There was a 4.3 per cent fall in the value of new commitments to £35.5 billion compared with Q1 2012. Overall, the value of residential loans outstanding also dropped to £1,228 billion in Q1 2013, a decrease of 0.1 per cent compared with Q4. The average interest rate on gross advances decreased from 3.81 per cent in the last quarter of 2012 to 3.65 per cent in Q1 2013. This was largely the result of a reduction of 30 bps in the rate for fixed rate lending.

Posted by mark wadsworth @ 11:01 AM 0 Comments

The Financial Crisis of 2015

OliverWyman: An Avoidable History

All stakeholders in financial institutions must understand that their world has changed. The last couple of decades of constantly falling interest rates is over; customer demographics are shifting; regulations are tightening. Trying to replay the successful strategies of the past 25 years will not work. Bankers should use scenario analysis to take an honest look at the risks to which their strategies expose them and their institutions’ ability to manage them. We called our story an “avoidable history”. Unfortunately, future crises are not avoidable, but being a victim of the next one is.

Posted by khards @ 10:08 AM 2 Comments

Rent caps are not the solution

Telegraph: Rent controls are madness, we need to build more homes

Telling us what we already know about the need for more houses and that rent caps do not solve the problem but potentially exacerbate it.

Posted by european-bear @ 08:49 AM 3 Comments

This shows the truth behind the house prices going up propoganda

BBC News: Recession prompted 'unprecedented' fall in wages

Recession prompted 'unprecedented' fall in wages" This is what is really happening to the people asked to fund the rest of the hanger-ons. It's time the hanger-ons realised this and took the same cuts.

Posted by thecountofnowhere @ 07:32 AM 0 Comments

Tuesday, June 11, 2013

RICS figures used to ramp the economy

Reuters: Britain's recovery strengthens, house prices rise

"British house prices are rising at their fastest pace in three years and the country's lagging industrial sector is now contributing to the economy's recovery, data showed on Tuesday. After a surprisingly strong services survey last week, the figures suggest incoming Bank of England chief Mark Carney will inherit an economy already on the way to what he has termed "escape velocity" ".

Posted by alan @ 06:09 PM 10 Comments

No.

AboutProperty: Will renting soon be cheaper than buying?

The gap between the cost of renting and buying is actually narrowing, contrary to popular belief, albeit at a very slow rate. Renting was £993 per year more expensive on average than buying last year, but that gap is now £961, leaving renters £32 per year better off compared to buyers.

Posted by phil @ 01:15 PM 0 Comments

Rent Steven Speilberg's beach house ... for $125,000 a month

Planet Property: Rent Steven Speilberg's beach house ... for $125,000 a month

No plans for the summer? How about renting Steven Speilberg's beach house ... for $125,000 a month. Or his yacht for $1.3 million a week...

Posted by the planet @ 12:09 PM 0 Comments

Property market indicators continue to improve

Myfinances.co.uk: RICS: House sales at 3-year high

The Royal Institution of Chartered Surveyors (RICS) reports in its latest residential property market survey that there is “significant improvement” in property market sentiment with both current and forward looking indicators are touching multi-year highs.

Posted by ben @ 11:12 AM 0 Comments

Monday, June 10, 2013

£1,650 in shares to every taxpayer by 2015?

Myfinances.co.uk: Policy Exchange recommends £34bn RBS & Lloyds share giveaway

The Policy Exchange has recommended that the UK government privatise the two bailed-out banks, the Royal Bank of Scotland (RBS) and Lloyds Banking Group.

Posted by ben @ 06:28 PM 2 Comments

More "Austerity" please, nobody is paying tax

SKY: Thames Water Avoids Paying Corporation Tax

"The UK's biggest water company paid no Corporation Tax and received £5m credit from the Treasury - during a year in which revenues rose to £1.8bn". They follow Vodaphone who haven'y paid a bean for 2 years. They join a raft of others who have turned tax dodging into an art form.... The Coalition are now considering how to cut pensions (House Price supports are safe for now). Changes to disability benefit will "encourage" the disabled back to work, says Cameron as the middle classes are squeezed dry to make up losses on Corporation Taxes (Land Tax can't be worse than this, can it?).

Posted by alan @ 06:18 PM 16 Comments

Two-year fix at 1.89% and three-year fix available at 2.34%

Myfinances.co.uk: N&P cut fixed rate mortgage deals

The Norwich & Peterborough Building Society has unveiled a range of new mortgage products including its lowest ever two and three-year fixed rate mortgage deals.

Posted by ben @ 05:32 PM 0 Comments

Words fail us...

Planet Property Blog: Flat for rent - £45,000 a week

No DSS… A five-bed apartment in the infamous One Hyde Park development has come onto the market at an embolism-enducing £45,000 per week.

Posted by property addict @ 01:23 PM 7 Comments

Benchmarks

Telegraph: House price plunge worsens in Greece and Spain

A world league table of property markets has shown values are falling fastest in Southern Europe, as a recovery gathered pace in major markets across the globe.

Posted by dill @ 12:49 PM 1 Comments

Sunday, June 9, 2013

Even Mad Max gets it

Russia Today: Osborne’s ‘help to buy’ scheme death knell for UK property market

Houses are to the British economy what Cheese and wine are to the French economy: A protected, government-sponsored racket that distorts and cripples the economy as a whole but makes people feel good while the ship's going down.

Posted by stuartking @ 05:23 PM 5 Comments

Commentary on London property market

Economist: The parasitic city

If the city didn't update infrastructure to accommodate a building boom, congestion costs would rise to choke off demand. But one could free building rules dramatically (lowering the shadow tax rate) and raise actual property taxes to help fund new infrastructure, and still have everyone come out ahead. Or almost everyone, I should say. Property owners would not. And that's the reason there is a problem in the first place. London property owners, as a class, are effectively an incredibly successful rent-seeking operation greedily sucking up the economic surplus generated by the city's economy. (H/T to bobalicious on the forums.)

Posted by quiet guy @ 11:15 AM 7 Comments

Saturday, June 8, 2013

Like it or not, here we go again!

Rightmove: Houses selling like hot cakes!

I have sensed it happening for a while now but it really is true - the house nonsense is starting all over again. Houses are coming onto the market and selling within days now, down from a few weeks and previously many months. Not only this, asking prices are rising. I know because I monitor them closely in this area and have done for many years. It may be anecdotal but houses are going up with a stupid 'for no reason' mark-up attached and going on to sell pretty quickly. The word from various sources is that prices are up at least 10% in the last year and accelerating. We now have properties coming to market and being snapped up in a flash and most frightening, I am genuinely and continuously hearing people saying things like "we need to buy now as prices are on the move again!" Ahh!

Posted by brickormortis @ 10:30 PM 20 Comments

After PPI, LIBOR and the Horsemeat scandal

RT: Nestle and Mars may face $10mn fine for 'chocolate conspiracy'

Hey, don't look so glum, Osborne. Everybody's trying to fix something! From the Article: "The alleged price-fixing involved chocolate bars sold across Canada from 2002 to 2008, including Kit Kat, Coffee Crisp, Aero, Twix, Snickers, Bounty and M&Ms, a spokesman for the Competition Bureau, told AFP".

Posted by alan @ 07:47 PM 0 Comments

But it's different in China?

South China Morning Post: China Vanke chair Wang Shi again warns of China housing bubble

"Wang said in a March CBS broadcast of the 60 Minutes news programme that the housing bubble could spell "disaster" for China's real estate market and that debt held by developers is a serious problem". "He referred to "ghost towns" where homes are built and left unoccupied, while as much as 60 per cent of other housing projects in other cities were snapped up the first day they were put up for sale". (The upcoming trade war with the EU covering wines and fast cars may stop the Chinese wasting money on non-essentials).

Posted by alan @ 07:36 PM 0 Comments

Prefabs --- loved and still going 70 years on

The Independent: The people's palaces: 70 years on Britain's prefabricated houses are still home to many

They could be put up in a day, and yet they are still around 68 years later, and many of the residents love them. There are quite a few of these in my home village; they have double glazing and a cosmetic outer skin now, but the point is that we should be able to do even better with modern materials and methods.

Posted by millaise @ 04:17 PM 0 Comments

Surprise, surprise

Daily Wail: Dirty tricks plague Help to Buy: How greedy developers are ruthlessly exploiting flagship scheme to help struggling homebuyers

Property developers have been caught offering bogus mortgages and fiddling costs on new homes sold as part of a flagship Government scheme. Builders have been accused of manipulating the rules of the taxpayer-funded Help To Buy programme to boost their own profits and trick buyers into believing that these properties are tens of thousands of pounds cheaper than they really are.

Posted by stuartking @ 10:56 AM 1 Comments

Scrap stamp duty in favour of land tax

Financial Times: Drop Help to Buy and fix the real problems

Call to reform Britain’s ossified planning system, and encourage more conversion of unused retail property (of which there’s going to be plenty the years ahead) to residential use. The other is to abolish stamp duty – which everyone seems to agree is a terrible tax – and replace it with either a land tax or a levy on property profits.

Posted by stuartking @ 10:50 AM 1 Comments

Osborneomics: indentured servitude

Management Today: 4,000 reservations for 'moronic' government mortgage scheme

Albert Edwards, head of the global strategy team at French banking giant Société Générale, points out that by offering 95% mortgages, the government is driving young people further into debt – or ‘indentured servitude’, as he put it. In a research note he said Help to Buy is ‘truly a moronic policy that stands head and shoulders above most of the stupid economic policies I have seen implemented during my 30 years in this business. ‘It ranks above some of Alan Greenspan’s very worst blunders,’ he added.

Posted by stuartking @ 10:33 AM 3 Comments

I'm gonna tell ya how it's gonna be

Bloomberg: US Home Loan Rates Near 4% Send Buyers Scurrying

"Rob Braunstein said his search for a three-bedroom home on a quiet street in Needham, Massachusetts, is taking on more urgency as he watches US mortgage rates tick higher. Every increase, he worries, shrinks his budget by boosting monthly payments, he said. The average rate for a 30-year fixed mortgage has risen for each of the past five weeks and is at the highest level in more than a year, according to government mortgage-buyer Freddie Mac".

Posted by alan @ 10:23 AM 0 Comments

Ready for the Great Repossession?

City Wire: Friday Five: reasons why house prices haven't corrected yet

The availability of cheap mortgages with low interest rates like we’re seeing at the moment has fuelled a rise in households’ secured debt. This has meant that mortgage debt as a proportion of disposable income has increased from 80% in the 1990s to 120% today. Low interest rates are the only thing keeping this debt pile affordable.

Posted by stuartking @ 10:05 AM 1 Comments

Mortgage deals fall but watch out for high fees

Myfinances.co.uk: Mortgage best-buys: Fixed rates continue to fall

This week has seen a variety of competitive new mortgage deals unveiled across the markets as lenders battle to reach the top of the congested best-buy mortgage tables.

Posted by ben @ 09:17 AM 0 Comments

Friday, June 7, 2013

A ticking time bomb

Sky News: Greece: Youths Worst Hit As Unemployment Rises

"Yeah, we can just keep stringing this mess out indefinitely. Another 5 years? Why not? I mean, it's not as if these people might get sick and tired of living like this while others get to carry on collecting their bonuses and living it up like nothing happened. Mass domino effect riots all across the impoverished nations of EU?! No, surely not."

Posted by grumpybob @ 11:27 PM 0 Comments

Post Office unveils its lowest ever rates for different LTV borrowers

Myfinances.co.uk: Post Office cuts fixed rate mortgage deals to lowest ever

The Post Office has cut rates on a variety of its mortgage products taking some of them to the top of the mortgages best-buy tables.

Posted by ben @ 04:32 PM 4 Comments

Property Experts Give Their Opinions on House Price Indexes

Buytolet.com: House price index guide

There are so many house price indexes out there and they all seem to produce wildly different results, so which one should you trust? We have taken a close look at the top monthly indexes – what they cover, where they cover and when they are published – and two seasoned property experts tell us what’s good and bad about each.

Posted by kevin grey @ 04:11 PM 3 Comments

Despite this House Prices must rise, says Osborne

Telegraph: Britain faces decade of austerity, influential think tanks warn

"Britain faces a decade of austerity with public spending cuts likely to dominate the next two General Elections, two leading think tanks have warned". If you think we need any help from Europe, look at the mess the EU public servants made with Greece!

Posted by alan @ 04:03 PM 3 Comments

Remember him?

CNBC: Greenspan: Taper Now, Even If Economy Isn't Ready

He said in a "Squawk Box" interview that near-zero interest rate policy at the Fed has helped stock prices, but the markets need to be prepared for faster-than-expected rise in rates.

Posted by dill @ 01:34 PM 7 Comments

Rather pathetic Home-Owner-Ist special pleading

John Redwood's Diary: The house price conundrum

We have just lived through a period of falling house prices in most of the UK as a result of the Credit Crunch and mortgage famine. Far from stimulating demand on other things, this just added to the lack of confidence in the economy, and removed income from the system as the housing market contracted. Whilst high home prices undoubtedly make families struggle to afford a home of their own, they can also stimulate the income of others in the housing market. For every new buyer suffering from the high price, there is a seller who may be trading down, taking a profit or benefitting from an inheritance, who should have more money to spend.

Posted by mark wadsworth @ 07:28 AM 22 Comments

Thursday, June 6, 2013

The Government stoke up another Housing Bubble

BBC News: Help to Buy off to 'flying start' as house prices rise

The government's flagship Help to Buy housing scheme has got off to a "flying start", according to the industry. The Home Builders Federation (HBF) said that 4,000 people have reserved a new home in the two months since the scheme launched. Separately, the Halifax said that UK house prices are now rising at their fastest rate since September 2010. Prices in the three months to May were 2.6% higher than in the same period a year ago. "When will they learn"

Posted by grant @ 03:26 PM 2 Comments

Steady as she goes

BBC: Bank of England keeps rates at 0.5% and QE steady

BBC exudes confidence in the BoE as it emerges Brussles and the IMF "got it wrong" on the Greek bailout - only a hundred billion Euros, chaps! Guess the Bildenburgers at Watford aren't too miffed, probably lining up a consolation job for George once our next Sovereign Debt crisis kicks off.

Posted by alan @ 01:05 PM 2 Comments

All major forward indicators looking up

BBC News: UK services sector in fastest growth since March 2012

Growth a-go-go, apparently. Hopefully, this will keep Carney in his box for a while. I don't, however, imagine he will wind down QE and raise interest rates, even if we have 2 years of decent growth. Everyone is still too leveraged up, especially the govt.

Posted by reticent @ 11:38 AM 0 Comments

Another banking crisis

Daily Mail: Bank of Mum and Dad runs out of money as soaring numbers of young adults struggle to buy their first home

Millions of parents are ‘unable or unwilling’ to help their children, a crisis being made worse by banks demanding massive deposits. Many parents can afford to lend a small amount of money, but the record deposits required by banks or building societies to get the cheapest loans means that far more money is needed. The size of the average deposit put down by a first-time buyer has jumped, as the number of ‘unassisted’ first-time buyers has collapsed. In 2006, the average deposit put down by a first-time buyer was 10 per cent. Last year, it was 20 per cent. In London, where the average asking price is £510,000, this is equal to £102,000.

Posted by drewster @ 09:16 AM 12 Comments

House prices up by 0.4 per cent in May

Myfinances.co.uk: Halifax reports biggest annual house price rise for 3 years

House prices in the UK went up by 1.5 per cent on a quarterly basis in May, according to the latest Halifax house price index (HPI).

Posted by ben @ 09:12 AM 0 Comments

Price to earnings ratio up

LBG: Halifax House Price Index

"Halifax House Price Index is prepared from information that we believe is collated with care, but we do not make any statement as to its accuracy or completeness. We reserve the right to vary our methodology and to edit or discontinue/withdraw this, or any other report. Any use of this report for an individual's own or third party commercial purposes is done entirely at the risk of the person making such use and solely the responsibility of the person or persons making such reliance. © Bank of Scotland plc all rights reserved 2013."

Posted by dill @ 09:07 AM 3 Comments

One of the most appalling things I've ever read.

Daily Mail: Would you spend £200k doing up your house, just to make the neighbours jealous?

Watching the neighbours stroll past my house always makes me smile. Why? Because I can tell how jealous they are. For I know they will be observing the latest costly improvements to our four-bedroom, three-storey property and furiously calculating how much it would take to do the same to their far more inferior homes. The answer? Not far off £200,000.

Posted by crash in the attic @ 07:47 AM 1 Comments

Wednesday, June 5, 2013

Tracker and fixed rates down and fees cut

Myfinances.co.uk: Nationwide cuts mortgage rates

Nationwide has announced that it will be reducing all of its two and three year tracker rates, 85 per cent LTV mortgage services, and two year fixed rates from today (June 5th).

Posted by ben @ 05:35 PM 0 Comments

Pushing at a piece of string

Estate Agent Today: NewBuy fails to wow buyers as sales slip 17%

Whilst the take-up numbers are higher than I would of liked to see, it's reassuring to see that the VIs artificial stimuli have come to yet another damp squib. I'd be interested to know whether this is a supply or demand issue - are buyers savvy to what a load of cr*p these schemes are, or are the caveats so stringent that buyers don't meet the criteria I wonder? Ideally the former but hope springs eternal.

Posted by sibley's b'stard child @ 04:56 PM 4 Comments

Why on earth do we spend £144bn on pensions and at least half the NHS budget on these spongers?

Torygraph: Pensioners' property 'worth almost £770bn'

Pensioners own property worth almost £770bn, with 4.7 million retired householders owning their homes outright, research has shown.

Posted by mombers @ 01:43 PM 6 Comments

We still aren’t remotely living within our means

Telegraph: There’s a worse crisis on the way unless we get serious about tackling debt

"For all of the talk of austerity, Britain is still drowning in debt, private as well as public. At some stage, the bond markets will pop, house prices will plunge, another large economy will implode, the cost of borrowing will soar and we will suffer another recession. At the moment, neither the private nor the public sector would be able to cope". (Ed Balls' winter fuel proposal will save just 0.01% from a £720bn budget segment).

Posted by alan @ 08:44 AM 25 Comments

Is there a property lending boom ahead?

Planet Property: Is there a property lending boom ahead?

Only in some sectors, says Savills, and Help to Buy is unlikely to fan the flames ... or not by much. Even with Osborne's best efforts housing transactions are likely to remain 24% below their pre-crunch levels, while house building would still be 14% below the levels seen in 2007/08.

Posted by the planet @ 08:27 AM 0 Comments

Which decade?

Shaun Richards at Mindful Money: What are the economic consequences of the current punishment of savers and savings?

We see that the official response to the credit crunch in many places has been to try to shift the burden of it onto savers and away from borrowers. This has resulted in savers getting much lower returns on their money and indeed consistently and ever more negative rates if we allow for inflation and taxation. However the question that savers should be asking their elected representatives is what good has this policy achieved? They have taken a hit for the greater good supposedly but in fact very little has got better as our economy has stagnated for several years rather than recovering partly for the reasons discussed earlier. They may reasonably ask how long this will go on for?

Posted by quiet guy @ 02:15 AM 1 Comments

Tuesday, June 4, 2013

Why bother with derivatives.

NY Times: Behind the Rise in House Prices, Wall Street Buyers

"...investment companies like the Blackstone Group have swooped in, buying thousands of houses in the same areas where the financial crisis hit hardest"

Posted by rumble @ 09:33 PM 1 Comments

Speculative bubble

Zero Hedge: The Housing Bubble Goes Mainstream

Evidence how speculators are inflating US house prices as funds with access to capital and credit seek to gull the American public for a second time. The question is, is the same thing happening in the UK?

Posted by avitacum @ 07:07 PM 0 Comments

Never give a sucker an even break

Reuters: HSBC sued by New York over foreclosure abuses

"New York state sued HSBC Holdings Plc for ignoring a law designed to protect struggling homeowners from being thrown into foreclosure without getting a chance to renegotiate their mortgages. Attorney General Schneiderman said such delays have trapped as many as 25,000 homeowners in a "shadow docket" of foreclosure cases backlogged as long as 2-1/2 years, causing them to rack up thousands of dollars of needless interest, fees and penalties". (W.C Fields coined the phrase in the early 40's when films were still black & white).

Posted by alan @ 06:58 PM 0 Comments

The thin line between bravery and foolishness

Guardian: George Osborne's Help to Buy scheme 'a moronic policy'

Leading analyst says chancellor's flagship scheme artificially inflates prices and drives the young into 'indentured servitude'

Posted by dill @ 02:19 PM 6 Comments

Canvas - the new affordable housing for OAPs

Planet Property Blog: Homeless pensioner given vouchers to buy a tent

You’ve heard of glamping. But what about homeless gramping? 62 year old Dawn Martin has been camping on cliff paths after her local council said she can’t be rehoused because she doesn’t meet their criteria.

Posted by property addict @ 01:13 PM 0 Comments

Monday, June 3, 2013

Immigrant and House Price Boom?

Market Oracle: UK Housing Bull Market Opportunities In Britain's Multiculturalism Immigration Crisis

Rather depressing reading about how Britain is being ripped apart by the immigration of folk who've been repressed in Eastern Block dictatorships for decades. All the skilled labor has already come, next is the influx of those seeking welfare, along with hoards from the Mediterranean, escaping the horror caused by the Euro collapse. After a long discussion, the author declares that a new housing boom has begun. Clearly, this supposes that interest rates will remain low for that period. Heck, to fund all the Socialism, maybe rates will even fall to negative?!

Posted by libertas @ 10:30 PM 14 Comments

The pin is dropping that we are being governed by dangerous fools, whether they are red or blue

Evening Standard: George Osborne is playing a low political trick with housing

"The Funding for Lending Scheme and Help to Buy scheme are among the stupidest policies ever devised in Whitehall"

Posted by pete green @ 06:28 PM 4 Comments

Second homes in the UK: time to increase taxes?

Planet Property: Second homes in the UK: time to increase taxes?

Austerity has turned the spotlight on second homes, but how many are there, where are they most common, and is there a case for more taxation?

Posted by the planet @ 12:49 PM 0 Comments

We are Banks, give us Money

BBC: Banks cut loans again, in spite of Funding for Lending

"Banks in the UK have continued to reduce the amount they lend out, in spite of government attempts to reverse the trend. Latest figures from the Bank of England show that net lending fell by £300m in the first three months of 2013. However, the figure is a big improvement on the previous quarter, when lending fell by £2.4bn".

Posted by alan @ 10:33 AM 6 Comments

This man is going to do a lot of damage

Zero Hedge: Mark Carney's False Ideology

"Neil Macdonald of the CBC recently did an investigative piece on central bankers and what they’re doing to the world’s economies. Mark Carney was featured heavily......The “economics” of central bankers can now be revealed for what it truly is: statistical propaganda. Not only is the “Keynesian school” of economics unsound – the entire social science is bunk. Only the Austrian tradition can explain economic phenomena in such a way that makes common sense, scientific. Carney is asking us to trust him. This cannot be done. He is not speaking truth; he is speaking nonsense."

Posted by hpwatcher @ 08:29 AM 1 Comments

Sunday, June 2, 2013

There could be a high price to pay for this boom

Daily Telegraph: As safe as houses? There could be a high price to pay for creating a boom

Article by Roger Bootle. The key paragarph for me: 'I fear a heavy price will be paid for whatever recovery the Government’s measures may bring in the housing market. If they cannot get property prices into line with earnings then, when interest rates have to go up, there will be a crash in the market which will cause untold misery to many people – and force losses on the taxpayer through ill-judged mortgage guarantees.'

Posted by britishblue @ 10:51 PM 17 Comments

And why shouldn't they come after her UK house?

The olive press: Court rules against Brit pensioner in property deal case

OH Dear! Heaven forbid.... As the Olive Press reported last month, she now faces having her three bedroom London house embargoed in order to recoup the money. She insists she does not have the money to appeal the hearing. “It is incredible. I am being sued over a house that was never delivered by the developer and builder,” she said. “This result means that anybody who has sold an option via Palmera Properties,or any other agent for that matter, can be successfully sued by the buyer. “I believe this result sets a precedent for others to follow!”.

Posted by spoony @ 06:04 PM 0 Comments

Asleep at the wheel

Telegraph: Bank governor slept easy during crisis

Sir Mervyn King confessed on Desert Island Discs on Sunday that he slept soundly during the events that sent the economy spiralling into recession but was surprised it had taken the public so long to react angrily to the way the banks had behaved and were responsible for the crisis.

Posted by hpwatcher @ 03:19 PM 3 Comments

Richard Dyson joins the baiting club

Daily Mail: Doom-laden forecasts of a house price crash have been around as long as I can remember

Hardly any financial subject excites as much furious debate as property prices. Last Sunday we reported the startling results of a reader survey in which two-thirds of more than 1,000 respondents said they were using buy-to-let property to fund their pension.

Posted by dill @ 02:12 PM 7 Comments

I didn't do it

BBC: Sir Mervyn King: Public are right to be angry at banks

How about angry at you Mervyn? Because over ten years you never bothered looking at even one single economics site and you crashed your own country's money savagely. How much value had to come off sterling to cover up? Between 40 and 25% roughly. Great to see you in the papers. One more incompetent state worker.

Posted by stillthinking @ 04:15 AM 9 Comments

Saturday, June 1, 2013

Gherkin takes a squeeze

Reuters: IVG says must reduce debt by up to 1.75 billion euros

"German property company IVG Immobilien said it needs to cut its liabilities by up to 1.75 billion euros (£1.49 billion) as it struggles to refinance debts built up during an expansion spree. IVG, which manages assets worth 21 billion euros including a stake in London's landmark Gherkin office building, reported a 100 million euro net loss last year and skipped paying a dividend. It also deferred coupon payments on a hybrid bond". Overextended and over geared on property - a familiar story...and needs to "completely restructure its almost 4 billion euros in debt to make sure it has enough capital to refinance loans maturing this year and in 2014".

Posted by alan @ 06:57 PM 0 Comments

Banks and politicians

Shaun Richards at Mindful money: All the intervention in the UK housing market is creating quite a mess

Closing comments: "Of course one sector benefits from all of this and it is the banks. They get customers who getting taxpayer support can (theoretically) afford their mortgages and the banks themselves can get ultra cheap funding from the Bank of England. The effort to keep house prices up will also help their existing mortgage book. Frankly is there much else we could do to subsidise their operations? If we move to the house market itself is anyone convinced that all of this will actually encourage any house building? That route to an economic recovery seems to have been sacrificed on the altar of house prices to me."

Posted by quiet guy @ 02:45 PM 0 Comments

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