July 2013 Archive

Tuesday, July 30, 2013

Funny Money Money, Something Bout This Money, Must Be Funny, Must Be Funny, In A Rich Man’s World,

CNN: Home prices keep soaring

Home prices continued to gain steam in May according to a closely-watched reading, even as mortgage rates climbed. The S&P/Case-Shiller home price index was up 12.2% compared to a year ago, slightly better than the 12.1% rise in April. It was the biggest year-over-year jump in prices since March 2006, near the peak of the housing bubble. Prices in two cities - Dallas and Denver - hit record highs, topping even the peaks they reached during the housing bubble.

Posted by jack c @ 09:52 PM 5 Comments

You've been Farmed!

Guardian: OFT forces payday lenders out of market

Almost a third of the payday lenders ordered to clean up their practices have opted to withdraw from the industry, the Office of Fair Trading has revealed, as the deadline for firms to respond passed. Citizens Advice, which in May said borrowers were being lent money without proper checks and being pressured into taking on more loans, will launch its campaign on Monday.

Posted by alan @ 09:01 PM 8 Comments

Brompton Road Tube Station Put Up For Sale

Planet Property: Brompton Road Tube Station Put Up For Sale

Brompton Road station, a disused London Tube stop currently owned by the Ministry of Defence has been put on the market for £20m. It was used during WWII as a secret command centre by Winston Churchill during the Blitz and is also believed to be where Rudolf Hess, Adolf Hitler's deputy in the Nazi Party, was brought to be interrogated after being captured in Scotland in 1941.

Posted by the planet @ 08:35 PM 2 Comments

321 - Liftoff

Telegraph: UK economy close to 'escape velocity', say top economists

Former Bank of England deputy governor Sir John Gieve and past rate-setters Dame Deanne Julius and Charles Goodhart claim the economy has already reached or was about to reach “escape velocity”. Meanwhile later in the article Sir John is revealed to say that he was “50,50” on the issue of escape velocity, meanwhile others said. “forget all that rebalancing, we’re going back to what we do best - debt fuielled consumer spending based on housing. What could go wrong?” In the comments 'I especially like the BOOM glasses and the giant debt rocket sailing into the sky - what a joke of an article'.

Posted by enuii @ 05:56 PM 10 Comments

Suckers for a good story

Investment and Business News: Property bubble: is this a yarn that can only ever have an unhappy ending?

We all love a good story. But is there more to it than that? The narrative is a powerful marketing tool, but even in saying that we understate the truth. Rewind the clock back to when we were hunter gatherers living in communities of 150. Our love of a good story may have acted as a method for bonding, in much the same way that grooming does with chimps. But the narrative can be very dangerous. It can cement opinions, making it hard for us to change, even when the facts show we maybe wrong. This web site has run a series of articles, one on the power of narrative giving entrepreneurs unrealistic confidence, another on why it is impossible for BP to get objective treatment in the US. But I link to one arguing a narrative has fooled the British public over UK house prices

Posted by dave wood @ 04:40 PM 0 Comments

Give Me Money!!!!!!!! FFS, GIVE ME MORE AND F*** THE REST!!!!!!

Daily Torygraph: Buy-to-let landlords shun benefits tenants

The number of landlords renting to tenants on benefits has dropped sharply, according to an industry survey, giving the first sign of how welfare reforms are affecting the buy-to-let market. The proportion of landlords renting to tenants on benefits has dropped from 34pc to 27pc as welfare reforms began to kick in. Sorry got a bit emotional there.

Posted by tom101 @ 02:44 PM 5 Comments

BBC advertisement article - Fear and guilt are pretty close feelings i believe

Our revered Aunty: Thousands in their 50s fear losing homes, says Age UK

Nearly a quarter of people in their early 50s polled by Age UK are afraid of falling on hard times and being forced out of their homes. "All planning for future generations is on hold," - I thought those plans were put on hold in the early 90's....?

Posted by tom101 @ 02:27 PM 3 Comments

I own land! Give me money!

The Telegraph: Britain’s stately homes are in a crisis

The HHA is... fiercely opposing new restrictions on stately homeowners offsetting losses against other more profitable parts of the business, which were imposed by the Treasury in April. The cap limits the exceptional losses that owners can offset against other income at £50,000. The HHA says it is “threatening our ability” to safeguard centuries of heritage, and making an “already serious situation much worse”. Deep in the bowels of Tissington Hall, Sir Richard taps a decaying green-furred heating pipe... “The HHA survey suggests what I’ve been saying for a long time: we are privileged to live in these places, but if we, as a nation, want to continue to have them, we have got to be helped along the way somehow."

Posted by mark wadsworth @ 10:14 AM 8 Comments

Monday, July 29, 2013

Cash in as our desperate government inflates a new housing bubble

MoneyWeek: Cash in as our desperate government inflates a new housing bubble

The government is creating a new house-price bubble. Matthew Partridge explains how you can make some money before it bursts.

Posted by martingreen @ 04:22 PM 0 Comments

London prime rentals on the slide

Planet Property: London prime rentals on the slide

Rents in prime London struggled to show any significant growth in the second quarter of 2013, says Savills. A lacklustre employment market in the financial and business services sector and rising levels of available rental stock in the wake of a rise in overseas investor buying activity are the main reasons for the decline, they say.

Posted by the planet @ 01:24 PM 0 Comments

Mick and Marianne were here … so were George Harrison and the Beatles

Planet Property: Mick and Marianne were here … so were George Harrison and the Beatles

House on the grounds where George Harrison lived and the Beatles recorded is on the market . My sweet Lord! Harrison bought the place in 1964 for £20,000. Now the house that replaced it is for rent for £12,500 pcm ...

Posted by the planet @ 12:57 PM 0 Comments

Up and up. Why is this the goal?

MyFinances: House price growth dips in July but confidence still up

"The level to which new buyers enter the market in the autumn will dictate whether 2013 turns out to be the year with the highest increase in house prices since the start of the downturn," Richard Donnell, director of research at Hometrack.

Posted by phil @ 12:04 PM 0 Comments

Thatchers monetary defense strategy circa 1979

1979 Prime Minister files: Thatcher archives

Short but v.interesting. "The gilt strike was ended, but the government had had to pay a very high price to establish its credibility in the markets." ,"Over the summer the market was stable, despite rumours that the government was ready to interfere with mortgage rates" --..sound familiar!! "Even Labour's old monetary targets were being overshot" omg its today shifted in time and space " and " mortgage rates might shortly rise, MT sent Howe a handwritten note of instruction: "This MUST NOT happen. If necessary there must be a temporary subsidy (as in 1973) ". good lordy has somebody read this before !!! anyway only 2 pages enjoy.

Posted by stillthinking @ 11:24 AM 3 Comments

Pound and dollar parity

Telegraph: If we want to recover our competitive edge in the world, we must first get the pound down

Curiously, this is exactly what I think is going to happen as well and why Carney is here. Sterling is going to have to hit parity against the dollar, no two ways about it, and this is a pretty difficult accomplishment if you don't want to scare the cattle. Mervyn took 30% ish off without things kicking off, but parity.. well, debt repayments become generally unpayable with a base rate at 6%. In which case sterling may devalue in a disorderly fashion. And in which case everybody on this site made a huge huge boop myself included not filling our boots with property debt.

Posted by stillthinking @ 06:11 AM 15 Comments

Bust pensions

Reuters: Pension funds cannot jump creditor queue in bankruptcy

The reason this is a -landmark- ruling is because in the future people generally expect that a) pension funds will not be in a queue with other creditors, or b) pension funds will be in a queue with other creditors. Zombie companies which are further crippled by gilt purchases. On the plus side, (not for the pension holders), this means borrowing costs will stay lower for the numerous UK companies with crippling pension costs, otherwise their sources of funding would cease. If the UK gilt bubble bursts then all these companies will have to raise funds through equity and that will be the end of their share valuations(knocking down another pension fund..).

Posted by stillthinking @ 05:53 AM 2 Comments

Sunday, July 28, 2013

Natalie Haynes, comedian, writer, speaker of sense

Jeremy Vine "it's going to end in disaster this isn't it" ?

BBC: Vince Cable warns Help to Buy could create new 'bubble'

A flagship government scheme to revive the housing market could inflate it, Business Secretary Vince Cable warns.The Help to Buy scheme provides equity loans of up to 20% for buyers of new-build homes in England and will start part-guaranteeing mortgages for buyers across the UK from next year. "I am worried of the danger of getting into another housing bubble," Mr Cable told the BBC's Andrew Marr Show.

Posted by jack c @ 05:01 PM 10 Comments

Good chart

Testosterone pit: Rising US Interest Rates Could Create An Economic Death Cycle.

Good chart of the scale of the collapse of foreign purchases of US securities. Interesting charts. Tapering isn't possible is the main idea. Relevance to the UK is that tapering isn't possible here and so sterling is in the -middle, not end- of a thumper of a devaluation (this my opinion not the article which doesn't mention the UK).

Posted by stillthinking @ 06:09 AM 8 Comments

Saturday, July 27, 2013

Houses are still cash machines

This is Money: Homeowners release £500m of equity from their properties as interest-only mortgage crunch creeps closer

More than half a billion pounds was unlocked from the value of homes in the first half of 2013 by over-55s cashing in on their properties to fund their retirements. Retirees funding home improvements, paying for holidays and treating their families withdrew £508million in equity release products - known as 'lifetime mortgages - in the first six months of this year, a rise of 12 per cent on 2012.

Posted by novice pete @ 04:52 PM 2 Comments

"Ditch the obsession"

FT: The cult of home ownership is dangerous and damaging

We know already of course, but good to see it written in the papers now and again. [Search title in google to view]

Posted by letthemfall @ 11:39 AM 18 Comments

Very good comment outlining uk debt

Spectator: What the government doesn't want u to know

The UK government is clearly never going to end QE and doesn't even have the option of doing anything apart from a -huge- devaluation of sterling. Carney imo has been brought in to devalue without panicking the cattle, being -perpetually- on the verge of raising rates, oh he's just about to etc

Posted by stillthinking @ 04:24 AM 0 Comments

Friday, July 26, 2013

Following on from the Evening Standard (MBVNIF) Artice

Mortgage Solutions: Help to Buy house price bubble will aid Tory election bid - analyst

Conservative MPs rather than first-time buyers could reap the biggest benefit from Help to Buy thanks to a house price boom, analysts has suggested. The consultancy Capital Economics compared government popularity with house prices over a period of fifteen years.Describing the government scheme as a “political coup”, Capital Economics assistant economist Michael Pearce argued a government’s chance of getting re-elected was closely related to house prices. He said rising house prices helped to boost consumer confidence and made the majority of Brits, who were homeowners, feel wealthier: “This majority is even more significant in political terms since homeowners are typically much more likely to vote than renters.”

Posted by jack c @ 12:44 PM 6 Comments

"buy-to-let property now a short-term investment instead of a retirement plan"

Mortgage Solutions: ARLA: half of landlords looking for short-term exit

Landlords increasingly see their buy-to-let property as a short-term investment instead of a retirement plan, a study by the Association of Residential Lettings Agents, has revealed. While three-quarters of landlords surveyed saw their property as an investment, over half of new entrants to the buy-to-let market considered it a short-term investment designed to make the most of favourable market conditions...... The study found reluctant landlords – those forced to rent because they were unable to sell – represented 28% of new landlords in 2012, compared to only 18% in 2008-9. Parents hoping to offer financial support to their children through a buy-to-let investment accounted for over a quarter of the market.

Posted by jack c @ 12:37 PM 5 Comments

William Blake's cottage for sale: own the house that inspired 'Jerusalem'

Planet Property: William Blake's cottage for sale: own the house that inspired 'Jerusalem'

The West Sussex house that inspired William Blake's 'Jerusalem' is for sale for the first time since 1928. "Away to sweet Felpham, for heaven is there:/ The ladder of Angels descends through the air"

Posted by the planet @ 11:23 AM 1 Comments

Rates cut by 0.50% on 3-yr deal for 80% LTV borrowers

Myfinances.co.uk: West Brom cuts rates on 3-year fixed rate mortgage deals

The West Brom has cut the rates available on its three-year fixed rate mortgage range.

Posted by ben @ 10:33 AM 0 Comments

Industrialisation, de-industrialisation and LVT

Michael Hudson: ...A land tax is needed to hold down housing prices

The 19th Century argument was that leaving landlords to extract the rising flow of land rent free of taxes would oblige labour to pay rising prices to rent or buy housing and this would prevent economies from competing; industrial trade surpluses were needed to obtain the gold which backed the money supply needed to circulate the flow of goods and services being produced. A land tax was key in achieving these surpluses (and in funding infrastructure and industrialised banking). Lack of LVT is a key cause of de-industrialisation, wealth polarisation and debt peonage in the US and the UK. Worst performer is neoliberal Russia, which turned land and natural resources over to insiders, cut taxes on them and taxed labour heavily instead.

Posted by icarus @ 10:16 AM 14 Comments

Thursday, July 25, 2013

We've always known this, but here's a handy graphic to show how close the relationship is

Evening Standard (MBVNIF): Help to Buy wins votes — but at what cost to economy?

But then the lightning bolt hits: actually a house price boom is precisely what the Government wants. Take a look at the graph, supplied by Capital Economics. The two lines show house prices and the Government’s lead in the polls, and they move virtually in lockstep. As house prices move into positive annual year-on-year growth, so the Coalition manages to close the gap on its political rivals.

Posted by mark wadsworth @ 08:29 PM 10 Comments

Antidote to Savills' ramping

Telegraph: BTL mortgages to rise

.....the report, published by Mortgages for Business, warned that comments from central bankers about improvments in the economy had moved money markets enough to force a rise in the rates offered to landlords.

Posted by chrisch @ 04:52 PM 3 Comments

UK economic growth doubles in Q2

Myfinances.co.uk: UK economy grows in all areas as Q2 output up by 0.6%

The UK economy grew by 0.6 per cent in the second quarter of 2013, according to official data published by the Office for National Statistics (ONS) today.

Posted by ben @ 12:56 PM 3 Comments

The price of parking goes up...

Planet property blog: Parking space in London for £300K

Fancy a handy parking space in Hyde Park Gardens for £300,000? Sadly, the ‘property’ isn’t freehold. The space is on a 91 year lease. We doubt you’ll have to worry about the freeholder stiffing you for big repair bills beyond a fresh lick of paint on the white line, though we’re not sure who is responsible for the maintenance of the bollard.

Posted by property addict @ 12:15 PM 1 Comments

Is a recovery fuelled by government debt, a real recovery?

Telegraph: Recovery hopes helped by mood of optimism

Confidence in the recovery is building among both consumers and manufacturers, separate reports showed, lifting hopes for a strong economic rebound this year. The upbeat surveys from employers group the CBI and CEBR/YouGov came ahead of today’s critical second quarter growth figures, which ought to confirm that the recovery is rapidly picking up steam. The Office for National Statistics (ONS) is this morning expected to say the economy expanded by 0.6pc in the three months to June, double the rate of growth in the first quarter and laying any remaining fears of a slowdown to rest.

Posted by hpwatcher @ 08:18 AM 11 Comments

All the countries wealth is being sucked into housing (tulips), to maintain high prices

Mail: First-time buyers get £17,000 help from the Bank of Mum and Dad: Anxious parents eating into retirement pots to help children get on property ladder

Estimated £2billion is being spent on property market by anxious parents; Housing charity Shelter raises concerns about strain on parents' funds; A quarter of parents are cutting their spending to help out their children.

Posted by hpwatcher @ 06:59 AM 14 Comments

Wednesday, July 24, 2013

Payplan Allow You To Search The Number Of Debt Cases By Postcode

The Guardian: Debt problems: know thy neighbour's strife

A debt firm has created an interactive UK debt map that people can access with their postcode to find out debt levels in an area. A good idea or an invasion of privacy?

Posted by justin butcher @ 05:22 PM 1 Comments

Bear nibbles

Mortgage Solutions: US QE-end could burst London property bubble - Fathom

London property investors could see house prices drop by as much as 40% if the US pulls its quantitative easing programme too sharply, a report has suggested. In a study of prime central London (PCL) house prices commissioned by Development Securities, Fathom Consulting found that while the gap between actual prices and the prices predicted by its model was almost non-existent in 2011, there was now a 13% difference in prices.

Posted by jack c @ 12:35 PM 4 Comments

The good news keeps on coming

Reuters: RBS fined for reporting flaws worsened by ABN Amro deal

Hot on the heels of Goldman's Aluminium rigging..."Britain's Financial Conduct Authority has fined Royal Bank of Scotland 5.6 million pounds ($8.6 million) for failing to report transactions the watchdog needs to help it spot market abuses". "The FCA said on Wednesday the bank failed to properly report 44.8 million transactions between November 2007 and February 2013, and failed altogether to report 804,000 transactions between November 2007 and February 2012". "RBS agreed to settle at an early stage of the investigation, and received a 30 percent reduction in its fine".

Posted by alan @ 12:30 PM 0 Comments

Comments are encouraging

F.T,: What is ‘subprime’ about George Osborne’s Help to Buy scheme?

Though borrowers will at least be creditworthy, the scheme is still misguided, says John McDermott

Posted by tick tock @ 11:16 AM 3 Comments

Prime central London a bubble warns economists

Planet Property: Prime central London a bubble warns economists

London's booming prime market has " the core characteristics of an asset price ‘bubble’ " and could see 20% knocked off prices if the US Fed reserves pulls the plug on QE to quickly.

Posted by the planet @ 11:14 AM 0 Comments

Help to Buy scheme - never let the truth get in the way of a good story!

Quick Move Now: Help to Buy scheme - never let the truth get in the way of a good story!

The announcement yesterday of plans to extend the existing Help to Buy scheme to include ALL houses worth up to £600,000 was met with howls of horror and warnings of an impending price explosion from all corners of the industry. Under the scheme, buyers provide a 5% deposit and the government essentially provides another 15% deposit by guaranteeing that proportion of the mortgage. There were two main worries voiced.

Posted by donna rourke-houguez @ 11:03 AM 2 Comments

£250 million Mayfair mansion expected to break UK price record

Planet Property: £250 million Mayfair mansion expected to break UK price record

A vast mansion in Mayfair is being tipped to sell for a new UK record of £250 million. Wine cellar has enough storage space for 35,000-bottles of Blue Nun.

Posted by the planet @ 10:26 AM 0 Comments

Here's one to get Libby's blood boiling...

Daily Mail: Even EU immigrants can use Help to Buy: Government is powerless to stop migrants from using scheme to get on housing ladder

Immigrants will be able to benefit from the new Help to Buy scheme because the Government is powerless to impose a ban on European Union nationals. As a result, any couple or single person born abroad in any country from Spain to Romania could use taxpayers’ money to get onto the housing ladder. But, in reality, the strict criteria imposed by mortgage lenders taking part in the controversial scheme mean only those with a perfect credit history and proof of UK address will actually be able to benefit.

Posted by mark wadsworth @ 10:17 AM 10 Comments

Tuesday, July 23, 2013

Nice that this comes on the same day as Osborne's little coven meeting

BBC News: Premium Bond prize chances to be cut, NS&I says

So, on the same day the Chancellor meets with the house builders and mortgage providers to say, "Now, you behave yourselves boys or else you'll get a proper telling off", there's news from NS&I that premium bond prizes are being reduced - along with the odds of winning- AGAIN. Thanks for that. That's another of my investments going down in value then.

Posted by grumpybob @ 07:21 PM 8 Comments

Even The Daily Mail has its doubts

Daily Mail: Osborne insists £130bn in mortgage guarantees will not be used for second homes but critics warn against 'mad' plan

My diatribe is still clinging on to one of the coveted "best rated" slots.

Posted by mark wadsworth @ 02:09 PM 8 Comments

Pump and dump begins the pump phase in earnest

City AM: Mortgage approvals hit 17mth high as Osborne hosts help to buy meeting

Fill your boots - last chance to get suckered into a failing asset class.

Posted by chrisch @ 10:13 AM 33 Comments

They own land... you know the rest.

FT: Help to Buy sparks £1.3bn house sales

Under the [new] equity loan scheme, the government lends buyers up to 20 per cent of the value of a new-build home priced below £600,000, interest-free for five years. The buyer has to put down a deposit of at least 5 per cent. The mortgage guarantee scheme will give buyers of all properties – not only new build – the ability to borrow with only a 5 per cent deposit. The government will guarantee up to 15 per cent of the home loan as an insurance policy for the banks, as long as the property is valued at less than £600,000. Existing homeowners can also use the scheme to remortgage their property.

Posted by mark wadsworth @ 10:07 AM 1 Comments

Osborne outlines new scheme to lenders and builders

Myfinances.co.uk: Osborne primes lenders and builders for Help to Buy 2

The Chancellor, George Osborne, is to meet with mortgage lenders and housebuilders to flesh out the details on how the second part of the Help to Buy scheme will work.

Posted by ben @ 10:01 AM 0 Comments

Virgin Money make cuts to residential and buy-to-let mortgages

Myfinances.co.uk: Virgin Money cuts mortgage rates and reduces fees

Virgin Money has announced a raft of changes to its residential and buy-to-let mortgage range, including rate cuts and lower mortgage fees.

Posted by ben @ 10:00 AM 0 Comments

They own land, just remind, how does this work..?

BBC: Help to Buy rallying call from government

The Chancellor, George Osborne, has called housebuilders and mortgage lenders to a meeting to discuss how the second part of the Help to Buy scheme will work. The first phase of the scheme was launched four months ago and provides equity loans for buyers of new homes. The next stage, to be brought in in January next year, will involve help for buyers of existing homes. It will allow people to buy with just a 5% deposit. The scheme is aimed at enabling more people to buy their homes. The government will guarantee a proportion of the loan to give the banks greater confidence to lend.

Posted by mark wadsworth @ 07:24 AM 22 Comments

Monday, July 22, 2013

When will this house of cards start wobbling?

Eurostat: Euro Govt debt up to 92.2% of GDP

As per the just released quarterly update of Euro area government debt, in Q1 2013, total government debt in Europe as a % of GDP just hit a new all time high of 92.2%. This compares to 90.6% in the previous quarter, and up from 88.2% in Q1 2012. Select your favourite country and make comparisons :-)

Posted by alan @ 04:31 PM 0 Comments

Tax the land value that arises from the highly paid jobs at Google and no need for corporation tax

Daily Mail: The two-bedroom Silicon Valley bungalow that costs more than $1MILLION because it's round the corner from Google's HQ Read more: http://www.dailymail.co.uk/news/article-2343702/The-bedroom-Silicon-valley-bungalow-costs-1MILLION-near-Googles-HQ.html#ixzz2Z

People are clearly perfectly happy to pay huge rents or mortgages to be close to work so why not just bump property taxes right up and then you don't have to bother with hand wringing when Google fulfils their fiduciary duty to their shareholders to minimise their tax bill?

Posted by mombers @ 03:14 PM 2 Comments

Britain's housing market is broken

City A.M.: How hidden taxes and levies are pushing up UK house prices

Allister Heath explores the impact of growing demand for housing coupled with meagre growth in the supply thereof. Heath argues that hidden taxes imposed on new buildings - alongside exaggerated perceptions of the volume of land available to developers - are pushing up house prices in and around London.

Posted by chris kelly @ 02:47 PM 0 Comments

Pump it up!

Mail: House prices to soar 42% by 2020 and lock out millions more first-time buyers - but is homes shortage or cheap credit to blame for property bubble?ces

But is Britain's house price problem really a product of too little building? Or has the bulk of inflation been driven by cheap credit and the failure to allow the property bubble to burst, with renewed government support threatening to make things even worse?

Posted by happy mondays @ 12:49 PM 9 Comments

They own land! Give them money!

Metro (via Malaysia Chronicle): Born in the 1980s? Forget having a place of your own

Research by the National Housing Federation (NHF) estimates that the average first-time buyer’s home will cost £245,165 in 2020. The current national average price for all homes is £239,000. The study goes on to warn that the shortage of affordable housing will mean 3.7million young people will be living with their parents by 2020, an increase of 700,000... ... housing minister Mark Prisk said: ‘This report does not take proper account of the range of measures we’ve put in place to create a bigger and better private rented sector. That includes the £1billion Build to Rent fund and £10billion in loan guarantees to build new homes specifically for private rent."

Posted by mark wadsworth @ 11:30 AM 0 Comments

Noughties baby-boomers will be forced to live with parents

Planet Property: Noughties baby-boomers will be forced to live with parents

Population trends, low wages and a lack of house building will leading to soaring rents and house prices and force 3.7 million young people to stay in the parental home

Posted by the planet @ 09:48 AM 0 Comments

Sunday, July 21, 2013

I thought house prices only went UP!

Mail: J.C. Flowers to buy £450m of loans from Northern Rock bad bank for £300m

"The deal, which would see J.C. Flowers paying £300million for the loans, would bring UK Asset Resolution one small step closer to repay the £43.5billion of government loan which was provided to rescue Northern Rock and B&B".

Posted by alan @ 08:37 PM 1 Comments

In your face HSBC

Mail: HSBC shuts down some branches as demonstrators try to transform them into 'food banks'

Campaigners said it was unfair that, while big companies like HSBC dodge tax, 500,000 people now rely on food banks on a regular basis, with almost half saying it was because of cuts or delays in benefit payments.

Posted by happy mondays @ 03:05 PM 1 Comments

Spent immediately

BBC: Pension 'crunch' to come in 2014

"This is a real landmark, finally reversing decades of decline in pension saving," said Pensions Minister Steve Webb. ooo...the nerve. Could you say that with a straight face!? An extremely dubious liability loaded onto the tax payer in the future, who may or may not pay. The whole hey we already decided you have to pay this money is getting a bit ridiculous. Reality is that the forced contributions from the employer and the auto-enrollment is a tax! TAX there I said it.

Posted by stillthinking @ 04:54 AM 19 Comments

Saturday, July 20, 2013

G20 identifies growing public debt as a problem!

Telegraph: G20 to set debt target for leading countries

"Britain and other major economies are set to agree to public debt reduction targets at future meetings of the G20, according to a senior official at this weekend’s summit in Moscow. The UK is expected to sign up to cutting total public debt from a forecast level of 85.6pc of GDP in 2016 to 84.8pc a year later. Christine Lagarde, the head of the International Monetary Fund, said countries would have to come up with their own plans on how to cut public debt". (Maybe we could scrap the Help to Buy scheme...just a suggestion, guv)

Posted by alan @ 09:04 PM 1 Comments

Low Growth and High Housing Costs equals an Unbalanced Equation

Guardian: Economists forecast the end of growth

Evidence has emerged that the era of booming economic growth is over, and that we (US, Europe etc) are entering an age of permanently slow growth - at best. The age of high economic growth will never return, largely due to the "exhaustion of various one-off productivity gains that boosted growth after World War II" and "a tripling in rates of consumer credit founded on an unsustainable increase in housing prices", among other factors.

Posted by enuii @ 02:40 PM 9 Comments

First Direct offer competitive new mortgage options for first-time buyers

Myfinances.co.uk: First Direct unveils new low-deposit mortgage range

Mortgage provider first direct has launched three new 85 per cent and two new 90 per cent LTV mortgages. This will mean that borrowers who have a saved deposit of between ten and 15 per cent, or equity, will be able to enjoy these new rates, which are offered with or without fees.

Posted by ben @ 09:56 AM 0 Comments

Drive out ‘cowboy’ letting agents, say MPs

House of Commons Select Committee: The Private Rented Sector

My evidence is in there. The summary of the extremely long report in an email received from the House of Commons is "Drive out ‘cowboy’ letting agents, say MPs" Apparently estate agents are subject to more regulations than lettings agents ! It remains to be seen if any changes in the law actually get made.

Posted by tenyearstogetmymoneyback @ 09:27 AM 0 Comments


Guardian: Rent control – the missing words that could help fix the UK's housing crisis

Nine million people now pay rent to private landlords in the UK after the reckless expansion of the buy-to-let market, with too many stuck in expensive, substandard homes and desperately insecure tenancies. The sheer number of recommendations for sweeping reform in a House of Commons select committee report this week is itself testament to just how deep the problems are in this sector.

Posted by dill @ 09:01 AM 1 Comments

OBR catches on

Telegraph: A fifth of under-25s to leave Britain by age 40

A fifth of young people do not expect to be living in the UK after age 40, a study suggests. The main reason cited for wanting to join the millions who are already expats was to find better paid jobs elsewhere.

Posted by dill @ 08:04 AM 5 Comments

Friday, July 19, 2013

The Home-Owner-Ist Prism

Osborne to give fracking 'most generous' tax breaks in world: Channel 4 News

Mr Osborne said: "We want to create the right conditions for industry to explore and unlock that potential in a way that allows communities to share in the benefits. This new tax regime, which I want to make the most generous for shale in the world, will contribute to that. I want Britain to be a leader of the shale gas revolution." But opponents warn that the process for extracting shale gas, by hydraulic fracturing rock with high-pressure liquid to release the gas, or "fracking", can cause earthquakes, pollute water supplies, blight the countryside and affect house prices. Righty-ho. Expensive Russian gas it is then.

Posted by mark wadsworth @ 11:23 AM 22 Comments

What the ponzi scheme needs to keep going - All wealth getting sucked in!

Daily Mail: House prices set to soar by 20% in the next five years with average home costing almost £200,000

House prices will rise by nearly 20 per cent over the next five years with the cost of the average home reaching nearly £200,000, research revealed today. Savills, the upmarket estate agency, said it has upgraded its housing market forecast from a rise of 11.5 per cent by 2017 to a jump of 18.1 per cent. The research said ‘government intervention’ partly triggered the upgrade while critics warned the interventions are fuelling a house price boom but doing nothing to help lending to businesses.

Posted by hpwatcher @ 06:44 AM 16 Comments

UK specific rant

Keiser report: Bankers’ Brain Cells

Inflation book author Comley asks where the protests in the UK are given that proposals in Cyprus to swallow 7-9% of deposits brought people onto the streets, but the 11% losses in the UK brought nothing.

Posted by stillthinking @ 05:08 AM 3 Comments

Detroit Bankrupt

BBC: Detroit becomes largest US city to file for bankruptcy

The US city of Detroit in Michigan has become the largest American city ever to file for bankruptcy, with debts of at least $15bn (£10bn), with around 70,000 properties lie abandoned, swathes of the city need to be written off.

Posted by enuii @ 12:05 AM 7 Comments

Thursday, July 18, 2013

Dumb and Dumber

Money Marketing: Wales set to launch its own version of Help to Buy

The Welsh Government is set to launch its own version of the Help to Buy shared equity scheme :(

Posted by alan @ 07:42 PM 1 Comments

And there I was thinking that this would have even a hint of analysis that this was a BAD thing

Torygraph: How parents will take advantage of Help to Buy

Pity the lazy sods who didn't chose the right parents!

Posted by mombers @ 05:13 PM 6 Comments

Why is the omission of fees from advertising not illegal in the first place?

Torygraph: MPs call for tougher rules on letting agents

A simple solution is the banning of any fees on top of rent as they do in Scotland. The agent will up landlord fees no doubt but the they will be able to pass it on as tenants will no longer have their own set of fees to pay so will be no worse off as they will be spending the same amount all in. We will be able to compare apples with apples then, and landlords will use their bargaining power to drive fees down over time.

Posted by mombers @ 01:01 PM 1 Comments

It's here.

AboutProperty: The emergence of the buy-to-let boom

Buy-to-let investment is enjoying a huge boom, as landlords flock to take advantage of the growing army of long term renters. Applications for buy-to-let mortgages have risen by as much as 50 per cent since June 2011, according to data from letting agent Sequence.

Posted by phil @ 12:23 PM 1 Comments

Holiday apartment for sale, panoramic sea view

Guardian: Towering testament to madness of Spain's construction boom

"Designed to be Europe's tallest residential building, unfinished Benidorm ziggurat is concrete example of banking recklessness". "In Tempo is now the responsibility of Sareb, which Spain set up to consolidate toxic assets of its bankrupt savings banks. It was to be Europe's tallest residential building, a monument to the boom years when the construction industry helped Spain's economy become one of the fastest growing in the world. Now, the In Tempo apartment block in Benidorm has become a metaphor for the madness of the 10-year building bonanza that brought the country to its knees"

Posted by alan @ 09:36 AM 4 Comments

For those that dont understand whats happening

PressTv: Banks put gun to head of EU government: Karl Denninger

This video explains what a complete mess the banks and governments have got the world into, and how the governments are afraid to do whats required. But it cant go on forever and a time will come when it can longer be contained.

Posted by mr cobblepot @ 08:45 AM 1 Comments

A third of MPs are buy-to-let landlords

Guardian: When we pay rent to our MPs, we have a problem

... there's a glaring omission from any discussion of a property market so distorted and unequal that a report published this week showed a third of the country is effectively off limits to families on an income of less than £22,000. (Not off limits in the sense of buying, you understand; that's been the case for years. Off limits even for renting.) And of the fact that this same property market – in terms of its legislative oversight, financial regulation and taxable structure – is overseen by a parliament in which a third of MPs are buy-to-let landlords.

Posted by mark wadsworth @ 07:50 AM 7 Comments

Is this another housing bubble?

Bloomberg: China June Home Prices Rise as Big Cities Post Record Gains

"China’s June new home prices rose in all but one city, led by the biggest metropolitan centers and underscoring Premier Li Keqiang’s struggle to rein in speculative investment even as the economy cools". The Chinese government are trying to slow things down, whilst in the UK, Osborne is doing the opposite.

Posted by alan @ 07:26 AM 1 Comments

Wednesday, July 17, 2013

By George, he's right!

F.T,: Britain is recreating a rentier society fit for a baby royal

After almost a century of gradual social progress and narrowing of wealth and opportunity gaps, Britain is slowly recreating a rentier society, where a family’s property ownership matters more than anything else.

Posted by tick tock @ 08:23 PM 1 Comments

Young asked to cough up £19bn on top of inflated rents and mortgages

Auntie: OBR urges £19bn more in spending cuts or tax rises

"An ageing UK population will put "unsustainable" pressure on public finances unless some £19bn of spending cuts or tax rises are introduced, says the Office for Budget Responsibility." No prizes for guessing who will bear the burden of paying for unfunded pension and healthcare promises... The same people who have to pay over the odds for housing

Posted by mombers @ 02:19 PM 5 Comments

James Corden gives weekly team talk to London estate agent

Planet Property: James Corden gives weekly team talk to London estate agent

The actor and comedian turned up at Greene & Co’s morning meeting and slagged off the staff, estate agency and some high-profile London competition.

Posted by the planet @ 02:02 PM 0 Comments

America’s most expensive home priced at $190m

Planet Property: America’s most expensive home priced at $190m

The most expensive home in US history has hit the market with an asking price of $190 million, but the owner better get a good price because he has a mortgage that can be seen from space … and in this case they can hear you scream: agggghhh!!! .... $120m

Posted by the planet @ 01:28 PM 0 Comments

Ombudsman rejects buyer’s ghost complaint

Planet Property: Ombudsman rejects buyer’s ghost complaint

The Ombudsman Services resolved 27% more property complaints in 2012/13, including one from a buyer who was spooked by a ‘supernatural presence’ ... but it's surveys that really give buyers the horrors.

Posted by the planet @ 12:47 PM 0 Comments

Parasite still attached to host

The Mirror: Kick privileged bankers’ man The Remembrancer out of Parliament

The remembrancer is the only non MP or civil servant who has a seat in parliament, and the lords. He represents the Banks. He has never given an intervew. He has a special seat in the house of commons to the right of the speaker. He's been granted this privelege, because banks have lent money to governments and royalty for a thousand years. But where do these central banks get this money? They create it out of thin air. No-one in our supposed democracy would agree that money should be privatised like this. But we're not allowed a say in it. Yet its probably the one thing which affects the quality of our lives more than anything else....

Posted by dissavowed dan @ 11:04 AM 0 Comments


Counterpunch: Housing shakeup

In the wake of the Fed's 'less QE' announcement and a selloff of USTs "the sudden spike in (mortgage) rates (which is likely to persist) has triggered a bloodbath in mortgage applications which have dipped for 4 weeks straight and are currently down 28 percent on the month." Speculators, who make up 30% of the housing market, are heading for the exits. The history of the withdrawals of stimulus for the housing suggests that this one will have a major impact. Meanwhile banks are recording big profits that are due to....er....reducing the 'expense' of holding reserves against bad loans in light of 'improving conditions of loans'.

Posted by icarus @ 10:24 AM 16 Comments

All nine members vote AGAINST more QE

BoE: Minutes of the MPC (pdf)

Minutes for the meeting held on 3rd and 4th July 2013

Posted by dill @ 09:51 AM 7 Comments

Did Snowdon leak this?

Telegraph: Bankers 'tried to manipulate QE', says BoE's Paul Fisher

"Traders are being investigated for attempting to rip off taxpayers by manipulating quantitative easing as the Bank of England desperately tried to rescue the economy two years ago". Don't worry guys, nobody will be prosecuted. They never are.... (see the Rajoy post, below)

Posted by alan @ 08:10 AM 3 Comments

Tuesday, July 16, 2013

MPC minutes out on Wednesday will reveal new governor's early thoughts

Myfinances.co.uk: The $1m dollar question: How did Mark Carney vote on QE?

The answer to the million dollar question will be unveiled tomorrow when the minutes from Mark Carney’s first meeting of the Monetary Policy Committee (MPC) as Governor of the Bank of England are published. The question is of course, which way did Mr Carney vote on quantitative easing (QE)?

Posted by ben @ 04:04 PM 2 Comments

Report says government must increase supply of affordable housing

Myfinances.co.uk: High rents mean 33% of UK unaffordable for low income families

A new study by the Resolution Foundation reveals that lower-income families have been priced out of rental property in around one third of the UK. The study found that rental costs are now more expensive than the cost of a repayment mortgage in almost half of the UK.

Posted by ben @ 12:23 PM 0 Comments

Sex in the City

Telegraph: Fabulous Fab's sub-prime trial begins with love letter

"Fabrice Tourre, a former Goldman Sachs banker, told his girlfriend the sub-prime mortgage market was doomed, as part of an “old fashioned love letter”, a court heard on the first day of a trial that has become a focal point for those seeking to apportion blame for the financial crisis". "Mr Tourre, 34, is being sued by America’s SEC after he allegedly tricked investors into backing a sub-prime mortgage vehicle called Abacus. The SEC claims that Mr Tourre conspired with Paulson & Co, the hedge fund run by John Paulson, to hook buyers by suggesting that Paulson was also backing the vehicle, on the assumption that house prices would rise".

Posted by alan @ 08:11 AM 1 Comments

Monday, July 15, 2013

It's the property developers wot dunnit!

BBC - Europe: Spain's Rajoy on offensive over 'damaging' Barcenas scandal

In last week's episode, the imprisoned Bárcenas gave El Mundo original copies of the “Bárcenas papers,” the secret ledgers he kept in which he recorded donations from major builders, developers and other closely tied companies. In today's episode, Rajoy is out of hiding. The allegations, against the prime minister and his party are growing in detail and severity. (BTW, the first four items the G-8 dealt with was the need for governments to share information to “fight the scourge of tax evasion.” If only their primary targets were multinationals, banks, and hedge funds that pay a pitiful fraction of the taxes they owe in the countries they operate. Now you can work out why nothing much happens....).

Posted by alan @ 08:40 PM 1 Comments

Keep going Britain - see where it takes you

Telegraph: UK rental prices hit 'record high', survey shows

The cost of renting a home in the UK has hit a record high, according to the latest monthly survey tracking the market.

Posted by dill @ 07:18 PM 2 Comments

N&P offer low rates and low fees on 2 & 5-year fixes

Myfinances.co.uk: N&P cuts rates on two and five-year fixed rate mortgages

The Norwich & Peterborough Building Society (N&P) has cut rates on two of their fixed rate mortgages. Its two-year fixed rate mortgage has been cut from 2.19 per cent to 1.99 per cent for borrowers with a loan-to-value (LTV) ratio of 65 per cent. The mortgage deal comes with a low fee of just £295.

Posted by ben @ 05:45 PM 0 Comments

Keep going Britain - see where it takes you

CNBC: UK house prices leap to record high

The price of houses in the U.K. hit a record high in July, according to online real estate portal Rightmove, which doubled its forecast for 2013 prices and now expects them to rise by 4 percent, up from a previous estimate of 2 percent.

Posted by dill @ 04:33 PM 16 Comments

Selling at a 3.5% discount - a good buy?

Reuters: Commerzbank sells 5 billion euros of UK property loans

"Germany's second-biggest lender Commerzbank has sold British property loans worth 5 billion euros to U.S. rival Wells Fargo and private equity firm Lone Star Funds to shrink its loan book and reduce risk". "the low-interest environment, which leaves holders of some government bonds with hardly any returns, increases the attraction of higher-yielding alternatives. That has led to investors agreeing to lower discounts when buying risky assets such as non-performing mortgages".

Posted by alan @ 03:10 PM 1 Comments

Resolution Foundation Rent Report

BBC: Rent 'unaffordable' for low-income families in third of UK

A third of Britain is effectively off-limits to lower-income working families because private rents are unaffordable, a new report claims. The report comes from the Resolution Foundation, which campaigns on behalf of low to middle-income families. It says most of southern England is now beyond the reach of less affluent households. The housing minister said the report was "factually flawed" and failed to take housing benefit into account. Londoners say they're spending over half their salaries on rent. With social housing usually unavailable and home ownership unaffordable for many first-time buyers, renting privately is often the only option for households on lower incomes

Posted by jack c @ 10:27 AM 16 Comments

One third priced out of rental market

Planet Property: One third priced out of rental market

Can't buy, can't rent ....one third of Britain is effectively off-limits to lower-income working families looking to rent a home privately because they can no longer afford a property in those parts of the country..

Posted by the planet @ 10:11 AM 0 Comments

Sunday, July 14, 2013

Evaporating wealth

Telegraph: Pensioners 'misled’ by Co-op Bank

Pensions are disappearing, in this case not to be swallowed as a state liability. One consequence of fixing price signals, is not just malinvestment, but also that people don't realise that they need (needed) to save. If your house is worth 500K and houses in the lovely little place you always go on holiday are only 50K, then its reasonable to assume that your twilight years are fine. But they are not. These are financial straws on the camel's back that lead to downsizing imo. People still do consider their houses as cash, and sooner or later they will look to change that cash to actual cash.

Posted by stillthinking @ 10:35 AM 3 Comments


The Actuary: UK pension deficits would hit £450bn under Solvency II, EIOPA - See more at: http://www.theactuary.com/news/2013/07/uk-pension-deficits-would-hit-450bn-under-solvency-ii-eiopa-study-finds

Pension deficits at 15 thousand per worker, or 30 thousand per worker over the average salary. This is while asset prices are being supported. Although this figure seems pretty bad, particularly if you are going to be tapped for the money because you are a UK worker, the other figure must be worse. The other figure is the shortfall per pensioner... I do sometimes wonder that the boomers prior to retirement would willing vote in an expansion of the state, when their pensions come from the same (inadequate) spot. These liabilities go onto the state in the end. Smoke and mirrors and bankruptcy.

Posted by stillthinking @ 03:44 AM 1 Comments

Saturday, July 13, 2013

Unsolvable problem. End of Britain is Inevitable


Britains debt to GDP ratio is 900% [Weirmauch was 913%] It was cheaper to wallpaper your room with bills than wallpaper. In 2012 the UK governmnet borrowed £120 billion more than it took in taxes. The end of Britain is inevitable. Capitol Controls will be put in place. Your private pension will be siezed, in the name of the national interest. Your wealth will be stolen by the Government. http://moneyweek.com/endofbritain/

Posted by dangerous dan @ 10:07 AM 0 Comments

Friday, July 12, 2013

The question should be 'Who should you pay for a sea view?'

BBC: How much should you pay for a sea view?

Considering that a view of the sea is a gift of nature, it is a disgrace that the value of it is being collected by private individuals and not the community as a whole

Posted by mombers @ 05:13 PM 11 Comments

All aboard - don't miss out now !

BBC: Loans to first-time buyers at five-and-a-half-year high

The number of first-time buyers taking out mortgages has hit its highest total for five and a half years, according to the latest figures from the Council of Mortgage Lenders (CML).The CML said 25,000 people took out their first mortgage in May this year, a 42% increase on May 2012. That is the highest number of first mortgages since December 2007. The number of loans made to people moving home, or remortgaging, rose by 18.7% over the same period. The government's Funding for Lending Scheme (FLS) is widely credited with making mortgages cheaper and more available, since it was launched in August 2012.

Posted by jack c @ 04:12 PM 1 Comments

Osborne denies being a W*nker!

Mail: Osborne denies Help to Buy schemes will result in a new property market bubble

The Chancellor said he expects more homes to be built as a result of the scheme – keeping a lid on prices.

Posted by happy mondays @ 03:29 PM 11 Comments

Low fees and FTB options from Coventry

Myfinances.co.uk: Coventry Intermediaries launch first-time buyer options

Coventry Intermediaries has unveiled a range of changes and mortgage rates cuts to its roster of residential and offset products.

Posted by ben @ 03:09 PM 0 Comments

Well it is Friday and what could possibly go wrong with "buy to let"

Buy 2 Let (Cars): The Smart Way to beat inflation

Today the question most people with money are asking themselves is “where do I put my money, so that it can work as hard for me as I worked for it?” We all know savings rates are derisory and at an all-time low, so most people with cash are looking for alternatives to grow their money above inflation. Buy2letcars.com is a simple and efficient way to put your money to work harder for you in this economic climate.

Posted by jack c @ 11:12 AM 6 Comments

Think-tank warns of impact of rate rise on indebted homeowners

Myfinances.co.uk: One million households in debt peril if mortgage rates rise

A new report from the Resolution Foundation warns that up to one million households in the UK would struggle to make their mortgage repayments if interest rates rise to four per cent.

Posted by ben @ 10:49 AM 0 Comments

Spanish House and Flats fall into black hole!

Reuters: Missing property addresses, keys hamper Spain's 'bad bank'

"Spain's "bad bank" not only has to sell the soured property loans and unwanted housing it took on from the country's rescued lenders - it first has to find them. A review of the 51 billion euros (43.6 billion pounds) of property loans and buildings transferred to the state-run vehicle as part of the industry clean-up has uncovered swathes of incomplete records, including tens of thousands of missing addresses, three sources familiar with the process said".

Posted by alan @ 09:34 AM 4 Comments

Thursday, July 11, 2013

Post Office cut rates on tracker and fixed rate deals

Myfinances.co.uk: Post Office cuts rates to reach top of mortgage best-buys

The Post Office has announced further cuts to a number of its fixed rate and tracker mortgage products. This takes five of their two and three-year fixed rate and tracker deals to the top of the mortgage best-buy tables.

Posted by ben @ 04:16 PM 0 Comments

Rate value offset by big completion fee

Myfinances.co.uk: West Brom BS launch 3-year fixed rate mortgage at 2.25%

The West Brom Building Society has added a three-year fixed rate mortgage deal to its roster of mortgage products.

Posted by ben @ 04:09 PM 0 Comments

Tenancy Disputes Requiring A Solicitor Are On The Rise

Manak Solicitors: Tenancy Disputes Requiring A Solicitor Are On The Rise

The media is currently full of reports on the increasing value of house prices, with some reports stating that they are now rising at their fastest rate since 2010. With more and more people unable to afford to get onto the property ladder, renting is at an all time high, and apparently so are the number of disputes between landlords and tenants. We have produced an infographic showing some of the main causes of tenancy disputes, as well as the costs of fixing problems and how the number of disputes is changing. You can take a look at all the statistics below.

Posted by oliver springate @ 04:09 PM 0 Comments

Votes for New Labour

Evening Standard: EU immigrants coming to UK 'undercounted'

Immigration under New Labour estimated to be 4 million.

Posted by stillthinking @ 03:14 PM 3 Comments

Zombie households to be on lifesupport until kingdom come

Torygraph: A modest rise in interest rates could cause a million households to 'collapse'

New analysis shows alarming numbers of debt-laden households vulnerable to minor rate rises - even in a positive scenario of rising incomes Those not in debt can just take it on the chin, having to endure miserable savings rates and soaring rents...

Posted by mombers @ 01:25 PM 4 Comments

Not so fast Mr Estate Agent

Telegraph: House prices 'will not recover until 2021'

House prices will not return to their pre-crash peak until 2021 after taking into account the effects of inflation, accountants. PricewaterhouseCoopers has warned. “Our main scenario for inflation implies a continued decline in real earnings growth in 2013-14, making six successive years of negative real growth,” the report said. “We would expect a gradual recovery in real earnings in 2015-17, but the level of real earnings in 2017 would nonetheless remain around 5pc below its peak level in 2008.”

Posted by hpwatcher @ 08:40 AM 1 Comments

Listen carefully - I will say this only once...

NY Times: Diverging Debate at Fed on When to End Stimulus

"WASHINGTON — The Federal Reserve Chairman, Ben S. Bernanke, said on Wednesday that the Fed was likely to extend the centerpiece of its campaign to bolster the economy — keeping short-term interest rates close to zero — even as it prepares to wind down another key stimulus program that faces mounting internal opposition." "“Ambiguities abound,” wrote Ian Shepherdson, chief economist at Pantheon Macroeconomics. Eric Green, global head of rates and commodities research at TD Securities, called it “the Rorschach minutes,” because it confirmed preconceptions of all kinds." Volatility still rules as no one seems able to make their mind up.... yes but no but yes but no but yes!

Posted by techieman @ 08:06 AM 3 Comments

Wednesday, July 10, 2013

How to manage the property bubble (for non-Etonians)

Bloomberg: Indonesia Plans Policies to Quell Property Costs

Asia’s first major economy to raise interest rates this year, said it plans to quell rising property prices and address a shortage of dollars, as it seeks to cool inflation and support a weakening currency, reports Bloomberg

Posted by alan @ 05:39 PM 2 Comments

The boom and bust cycle is unlikely to repeat in Dubai

Bayut.com: Dubai is not headed towards another crisis

Dubai has only just started registering evident signs of a deep rooted recovery and we are already hearing the reverberations of another crisis which, as per some experts, might be around the corner.

Posted by zain nadeem @ 01:07 PM 0 Comments

Sales volumes of new build houses up 34% since launch of help to buy scheme

BBC news: Barratt house sales lifted by Help to Buy scheme

Are the house price increases that are being reported mainly down to the increased volume of new builds?

Posted by wdbeast @ 10:28 AM 12 Comments

Quick Move Now house sale fall through index – Q2 2013

Quick Move Now: What are the chances of a house sale falling through?

The average house sale fall through rate for Q2 2013 was 19.77%, almost exactly 10% lower than in the corresponding quarter in 2012.

Posted by donna houguez @ 09:15 AM 0 Comments


Telegraph: Europe’s rich 'could face uprising similar to Peasants' Revolt'

Europe’s rich Baby Boomers are behaving like the nobility in the Peasants’ Revolt, and could face an uprising by the younger generation if the situation doesn’t change, HSBC’s chief economist has warned.

Posted by dill @ 03:27 AM 10 Comments

Tuesday, July 9, 2013

"NYSE Euronext Said to Take On Libor Oversight From U.K. BBA"

Bloomberg: NYSE Euronext Said to Take On Libor Oversight From U.K. BBA

"NYSE Euronext (NYX) will take over administration of the scandal-plagued London interbank offered rate from the British Bankers’ Association, according to a person familiar with the plan. The move will be announced later today by the U.K. Treasury, said the person, who declined to be identified because the talks are private. The Financial Conduct Authority began regulating Libor in April under rules meant to restore credibility to the benchmark."

Posted by doomwatch @ 12:50 PM 3 Comments

Down down deeper and down....

Money Week.: How low will the pound go?

Last week, after his first Monetary Policy Committee meeting as governor, Carney basically told markets that he had no plans to raise interest rates next year or in 2015. In other words, debtors will keep being rewarded, while savers can expect to be screwed. The immediate effect was to send the FTSE 100 higher as markets cheered the prospect of looser money. The pound headed lower – looser monetary policy generally means a weaker currency. So just how grim is the outlook for the pound under this new regime? ‘Very’ is the short answer. Here’s how low I think it will go…

Posted by khards @ 12:41 PM 17 Comments

Just lucky no one has fallen for this total con...

Planet property blog: Green Deal homes could be deadly

Latest blow to government’s green-wash fiasco…Deaths from overheating could rise from 2,000 to 5,000 per year by 2080 in homes insulated under the government’s Green Deal.

Posted by property addict @ 12:26 PM 0 Comments

Another Grand Designs being flogged within a year

Planet Property Blog: Grand Designs 'giant stack of glass cubes' for sale

'Uncompromising’ home designed as Zen retreat… In what must be one of the quickest screen-to-Rightmove turnarounds the minimalist eco home in Brixton has hit the market. The property, on Clapham Park Terrace, was featured in episode 7 of series 8 of the show, with Mary Martin and Carl Turner aiming to build a home that is as simple to live in as possible.

Posted by property addict @ 12:24 PM 0 Comments

The beginning of a wage spiral or winter of discontent.

Liverpool Echo: Strike could see production of Range Rover Evoque stall at Jaguar Land Rover

STAFF at logistics giant DHL have voted for industrial action that could bring production of Jaguar Land Rover’s top-selling Range Rover Evoque to a halt. DHL says Unite is demanding a pay increase of 12.8% for operatives and 20.6% for drivers.

Posted by will @ 11:47 AM 4 Comments

Accidental Landlords On The Rise

Total Landlord Insurance: Number of accidental landlords increasing

Research suggests that the number of first time landlords as well as those turning to renting out their property has increased this year. Eddie Hooker, CEO of Hamilton Fraser Insurance outlines the reasons behind the growth of accidental landlords in the UK, citing the fragile employment situation in the UK as a reason why people are turning to buy-to-let as a means to supplement income.

Posted by russell morling @ 09:46 AM 1 Comments

House prices expected to rise by 1.5% this year

Myfinances.co.uk: RICS: Expected house sales outlook brightest since 1999

The Royal Institution of Chartered Surveyors (Rics) predicts that house prices will continue to rise through the rest of the year.

Posted by ben @ 08:41 AM 1 Comments

From latest RICS monthly survey

BBC News: House prices to keep on rising, say Rics members

Can this really happen? Average 4% annual house price growth for the next 5 years, that would be a whopping 21.7% increase by 2018!

Posted by wdbeast @ 07:01 AM 27 Comments

Monday, July 8, 2013

Skipton BS makes cuts to fixed rate and tracker mortgages

Myfinances.co.uk: Skipton BS cuts mortgage rates by up to 0.20%

The Skipton Building Society has cut rates on many mortgage products for residential customers by up to 0.20 per cent.

Posted by ben @ 04:23 PM 1 Comments

Derelict public toilets in Cardiff for sale: £58,000

Planet Property: Derelict public toilets in Cardiff for sale: £58,000

Smart buy or ... money down the pan?

Posted by the planet @ 01:01 PM 0 Comments

Surge in number of tenants struggling to pay rent

Planet Property: Surge in number of tenants struggling to pay rent

Hard times out there for many ... the number of tenants in severe rental arrears is on the rise, says a new report, and is likely to mushroom even further ....

Posted by the planet @ 11:48 AM 0 Comments

Sunday, July 7, 2013

Bond Bull... They think its all over..... is it?

RT: Keiser Report 6th July = Art of Debt Juggling

"In this episode of the Keiser Report, Max Keiser and Stacy Herbert discuss tipping points on the way to the Bondpocalypse, a time when flipping houses to greater fools will no longer be a viable retirement plan and incarcerating your fellow slightly annoying citizens for eternity will be far too much decadence to afford. In the second half, Max talks to Karl Denninger about bonds, QE tapering and Wimpy from Popeye paying for a hamburger next Tuesday. Karl says that as any investor under 50 will only know a world of ever declining interest rates, they will have to adjust their thinking for this new period of ever rising or flat rates."

Posted by techieman @ 09:58 PM 30 Comments

There is a Housng Bubble Now -IT NEVER DEFLATED

Telegraph: Is there a Housing Bubble on the Horizon

House builders don't think so, Government doesn't think so, but Merv the swerve does and increasing multiples of salary needed to buy a home, in a stagnant to dropping salary environment clearly indicate these current prices are unsustainable. Still punch-bowl economics, borrowed from Uncle Sam seem to be the poison of the day for all Central banks and governments around the world. Happy days - HPC postponed indefinitely :@(

Posted by bystander @ 03:52 PM 0 Comments

Something we already know

Independent: Lending scheme 'punishing savers'

"The Funding for Lending scheme is having a punishing effect on savings rates. Returns are falling across the board as banks and building societies find that because of the cheap money coming from Funding for Lending they have little need for savers' deposits." Research for The Independent on Sunday indicates that the Funding for Lending scheme is no longer having the desired effect of boosting availability of mortgages.

Posted by enuii @ 08:27 AM 1 Comments

Friday, July 5, 2013

Bar chart says interest rates in US ticking up nicely as well

CME Group: US Treasury Bond Future

The "flag" in the US chart was pretty much the same as in the 10-year gilt one, and today has seen a massive drop of over 2% in the value of long term US bonds. No doubt it will bounce back up bit, but this is impressive stuff (if you have nerves of steel and plenty of spare cash to play with).

Posted by mark wadsworth @ 03:14 PM 17 Comments

Bar chart says interest rates ticking up nicely, thank you very much

Barchart.com: 10-year Gilt futures, September 2013

What we see here is a sharp fall (value of bonds down ten per cent in two months) followed by a "flag" or "consolidation pattern" over the past week or so, and now, as predicted by basic "technical analysis", the price has broken out downwards. All of which equates to merrily rising longer term interest rates (the ones which the government cannot control).

Posted by mark wadsworth @ 02:03 PM 4 Comments

Bank of England says interest rates unlikely to rise for years

Myfinances.co.uk: Carney makes his mark as Bank calms markets with rate promise

Mark Carney, the new Governor of the Bank of England, started his time on Threadneedle Street by publishing a note to go along with the latest decision form the central bank rate-setters. The Monetary Policy Committee (MPC) published forward guidance on interest rates, effectively telling consumers and markets that interest rates will not be going up for years to come. The European Central Bank did the same thing.

Posted by ben @ 12:56 PM 3 Comments

Thursday, July 4, 2013

Useful resource or dummy site?

Planet Property Blog: Boris launches property portal

Rightmove shareholders can probably relax. First Steps, the new portal, will match up first-time buyers and affordable home ownership schemes is in fact not new, but has been revamped and relaunched this week by London Mayor Boris Johnson and is run by Sharetobuy.com, a former mortgage broker.

Posted by property addict @ 12:44 PM 1 Comments

House prices up 3.7% annually

Myfinances.co.uk: Halifax HPI: House prices rising at fastest pace for 3 years

The annual rate of house price growth in the UK is at its highest level for almost three years, according to the latest Halifax House Price Index (HPI).

Posted by ben @ 11:55 AM 5 Comments

Central Banking - Forward Guidance Policy

FT: What works at the Fed might not be quite right for Britain

Interesting piece discussing risks/ benefits of Mark Carneys 'forward guidance' Central Banking policy. Apparently, ' Guidance can ensure that markets know policy will remain loose for longer than the current expectation rates will rise in 2015' 'CB Forward guidance

Posted by tick tock @ 11:47 AM 24 Comments

These higher taxes are deflationary, will cause lower house prices and sink present home owners.

Tax Payers Alliance: Stop the Energy Swindle

There are a whole range of taxes that add to your energy bills, you will probably not even have heard of some of them! 1. The EU Emissions Trading System and the price support that the Government has introduced 2. Renewable energy subsidies, particularly support for offshore wind turbines 3. Value added tax According to energy regulator Ofgem, those taxes – VAT and environmental charges – already add account for 11% of a typical family gas bill and 16% of a typical family electricity bill. That means energy taxes are already costing a normal family nearly £200 a year. But it is going to get much worse.

Posted by libertas @ 11:04 AM 15 Comments

Fake economy continues

BBC: House prices rising 'at fastest annual rate for three years' Rising +0.6% for June

House prices are rising at their fastest annual rate for nearly three years, according to one of the UK's biggest mortgage lenders. The Halifax said prices in the three months to the end of June were 3.7% higher than in the same quarter last year. The survey compares with a 1.9% annual increase reported by Nationwide earlier this week. The Halifax said both home sales and mortgage approvals increased in May.

Posted by hpwatcher @ 08:41 AM 20 Comments

Wednesday, July 3, 2013

No such tenacity over fishing quotas, the shape of fruit or the colour of peas !

Mortgage Solutions: EU almost shut UK buy-to-let market - MEP

European Union legislators came close to shutting the UK’s buy-to-let market and killing off guarantor mortgages during the mortgage directive negotiations, a key negotiator has revealed. Conservative MEP Vicky Ford, who acted as shadow rapporteur for the committee overseeing the European mortgage directive, said some politicians tried to use the legislation to solve their own domestic problems.She told the Council of Mortgage Lenders: “We’ve managed to pull back a directive that could have had massive unintended consequences for the UK. At one stage, it would have meant lending in buy-to-let markets would have been impossible because lenders would not have been able to take into account rental income when assessing creditworthiness.

Posted by jack c @ 07:54 PM 12 Comments

Right To Buy today is Right To Taxpayer Subsidised Rents tomorrow

BBC: 'Right to buy' to be scrapped in Scotland

After seeing how Right To Buy turned into Right To Sell (first resale of a council house for more than £1m last year) or Right To mop up Housing benefit (1/3 of Right To Buys are now rented back to the taxpayer at 3 times the price) the Scots have done the right thing and scrapped this.

Posted by mombers @ 04:41 PM 6 Comments

Service sector PMI up to 56.9 in June

Myfinances.co.uk: Service sector at 2-year high, driving UK economic recovery

The UK economy received another boost today as the Purchasing Managers Index (PMI) survey for the UK services sector in June showed the fastest rise in activity for over two years.

Posted by ben @ 11:14 AM 0 Comments

Sarah Beeny's very muddled solution to the housing crisis

Planet Property: Sarah Beeny's very muddled solution to the housing crisis

Building more is bonkers, claims Beeny, what we need is multi-generational families under one roof, more people living in the countryside and planning laws that make it easier to build extensions (for the multi-generational family, presumably) .... an object lesson in why celebrities should not be asked to comment on complex social problems.

Posted by the planet @ 10:01 AM 0 Comments

Tuesday, July 2, 2013

"house prices in affected areas to fall by as much as 30%"

Mortgage Solutions: Fracking house price threat spreads

Manchester homeowners could face uncertainty over the value of their property if controversial fracking proposals go ahead. Researchers from the British Geological Survey have identified shale gas reserves stretching across the north of England. These reserves, far larger than previously documented, lie under cities such as Manchester, York and Leeds.The discovery comes as the government announced fast-track measures and tax breaks for shale gas exploration. This process involves fracking, or pumping water and chemicals underground in order to force out the shale gas. Last week, a surveyor warned a lack of clarity on where fracking will take place could cause house prices in affected areas to fall by as much as 30%.

Posted by jack c @ 11:06 PM 4 Comments

The truth seeps out.....

Telegraph: Twenty years of austerity ahead, says Sir Jeremy Heywood

Britain is in a “20 year generational battle” to rebalance the economy and return the country to financial health, according to Britain’s most senior civil servant. “But despite all these efforts we have made over the last three years … our debt/GDP ratio is still rising, debt interest payments are rising.

Posted by hpwatcher @ 10:21 PM 8 Comments

Another Uptick: July 2nd Rate = 2.58%

Forex Factory: 10 yr Bonds

Why Traders Care: "Yields are set by bond market investors, and therefore they can be used to decipher investors' outlook on future interest rates. The bid-to-cover ratio represents bond market liquidity and demand, which can be used to gauge investor confidence"; Apr 9 rate was 1.73. June 11 was 2.37.

Posted by alan @ 03:48 PM 6 Comments

What have the Romans ever done for us? (or Savers)

Telegraph: Nationwide cuts rates across multiple savings accounts

"Savings institutions are competing in a "race to the bottom" as rates continue to fall across the market". "Savers who have been members for 15 years or more earn the top 1.7pc down to 1.4pc for those having belonged between one and four years " (savers have been the mainstay of many mutuals over the years).

Posted by alan @ 03:28 PM 4 Comments

Let the Carnage begin!

RT: What Mark Carney should do and why he won't do it

Mark Carney, the former head of Bank of Canada will, I predict, in his new role as Governor of the Bank of England, double down on Quantitative Easing and buy more UK Gilts (government bonds) than any previous Bank of England chief. The reason this former Goldman Sachs guy (yes, another one) heading up a central bank will give - is the same reason Ben Bernanke gives - and the Bank of Japan, etc. He’ll say the bank needs to fight ‘deflation.’ And he will also fail to admit that central bank purchasing of government bonds doesn’t fight deflation, it causes deflation. If the goal is to increase economic activity (GDP) and increase jobs and wages and savings - the only sound policy decision Mark Carney or any central bank can make at this time is to raise interest rates.

Posted by khards @ 03:04 PM 1 Comments

Builder says thank you to taxpayers

Telegraph: Help to Buy boosts housebuilder Persimmon

Help to Buy, which helps buyers with small deposits to get a mortgage, had generated a "positive response" from prospective buyers since its launch in April, Persimmon said on Tuesday. Reservation rates on private homes had jumped 30pc since Chancellor George Osborne announced the scheme, with 1,124 homes secured so far. This compares with an annual rise of 12pc in the six months to June 30. Persimmon said improved availability of mortgage credit helped revenues rise 12pc in the first half of the year to £900m from the same period last year. The company completed 5,022 new homes, representing a rise of 7pc, while margins rose by almost three percentage points, to 15pc.

Posted by quiet guy @ 01:49 PM 1 Comments

Rising house prices don't tend to fuel greater consumption by households

Pieria: Rising house prices don't tend to fuel greater consumption by households

Do house prices influence consumption patterns? The economic crisis has led to a slump in both the price of houses and in consumption, meaning that any link between the two is of great interest to policy-makers who wish to kick-start consumption in order to reinvigorate growth in Western economies. New research from Martin Browning, Mette Gørtz and Soren Leth-Peterson attempts to find the links between consumption and house prices. However, they find that any increase in house prices has no effect on consumption by the old and only a very small effect on consumption for the young.

Posted by m @ 12:04 PM 1 Comments

Mortgages from just 1.99% for 75% LTV borrowers

Myfinances.co.uk: Accord cut mortgage rates and unveil new deals

Accord Mortgages has launched a series of interest rate cuts on its residential mortgage products of up to 0.35 per cent and has launched a range of new mortgages.

Posted by ben @ 10:23 AM 1 Comments

Monday, July 1, 2013

Them pesky tenants

BBC: Letting scheme compiles 'strangest emergency calls' list

Imagine if the FSCS or Shelter or another organisation tasked with protecting peoples rights under the law decided to mark their anniversary by belittling it's own customers complaints. It's almost as if, sick and tired of hearing customers get the upper hand on thieving landlords that steal their tenants deposits, they've decided to turn the tables. Classy. And the BBC of course laps it up like a fly on a sh

Posted by paul @ 09:22 PM 0 Comments

Manufactured Crisis or living beyond their means

Press TV: US Dollar Will Collapse in 2013

"Black hole of debt". "Tax breaks for Obama's friends, austerity for others". US now "owns" 50% of mortgages. Time to cut the defence budget? (Maybe if they stopped spying on Europe taxes wouldn't keep rising). So, as America sneezes, we all get a cold!

Posted by alan @ 06:36 PM 26 Comments

Global property markets booming again

Planet Property: Global property markets booming again

Not what housepricecrashers will want to hear ... but a dramatic picture of house prices rising around the world is revealed by the latest Global Property Guide house price survey (1st quarter of 2013). This, they say, “is the most significant global acceleration in house prices since the boom years of 2006/7.” However, while prices are rising across most continents, the recovery remains weak in one part of the world: Europe.

Posted by the planet @ 03:57 PM 1 Comments

Kevin McCloud turns to crowd-funding for eco-schemes

Planet Property: Kevin McCloud turns to crowd-funding for eco-schemes

Grand Design's presenter Kevin McCloud is looking to raise £1.5m from the public to fund self-build developments that will be "feel distinctive and enriching.". Volume housebuilders, he says, "are riding roughshod over great tracts of our towns and countryside: erasing traces of the past; ignoring established communities and chucking up identikit Noddy houses at the lowest possible cost." Can't argue with that. Good luck to him.

Posted by the planet @ 11:42 AM 4 Comments

Castles, Celebrity Homes | June 30, 2013, 6:14 pm Edit this post For sale: French chateau where Dav

The Planet: Castles, Celebrity Homes | June 30, 2013, 6:14 pm Edit this post For sale: French chateau where David Bowie, Elton John and Iggy Pop recorded albums

The Château d’Hérouville, an 18th century pile with an extraordinary rock n roll history, is yours for $1.73 million. Bowie’s 'Low' and 'Pinups', Iggy Pop’s 'The Idiot', Pink Floyd’s 'Obscured by Clouds' and Bee Gees tracks “Stayin’ Alive” and “How Deep is Your Love”, T-Rex’s 'The Slider,' Cat Steven’s 'Catch a Bull at Four' were all recorded here ...

Posted by the planet @ 11:21 AM 0 Comments

Bedroom tax leads to rent arrears and empty houses

BBC News: Impact of housing benefit changes 'worse than feared'

Since the introduction of the 'bedroom tax' more houses are lying empty and more tenants are behind on their rent. Why isn't the market working (reduce rents to reflect ability to pay)? Can housing associations afford to reduce their rents?

Posted by icarus @ 11:10 AM 11 Comments

House prices rise by 0.4 per cent in June

Myfinances.co.uk: Hometrack: 10x more postcodes see house prices rise than fall

House prices saw another significant rise in June, according to the latest Housing survey from Hometrack. It said house prices went up by an average of 0.4 per cent in June, the same level of increase as seen in May, equal to the biggest monthly increase since June 2007.

Posted by ben @ 09:52 AM 0 Comments

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