August 2013 Archive

Friday, August 30, 2013

Interactive guide to the world's housing markets

Economist: Location, location, location

A nice visualisation from the Economist that shows how overvalued housing is in the UK according to various indices. "Buoyed by government schemes to subsidise mortgage funding costs and to help low-deposit buyers, the British market is picking up even though its fundamentals—unlike America’s—suggest continued overvaluation."

Posted by damo @ 08:37 PM 0 Comments

Bring it on.

Reuters: Gundlach says 10-year Treasury yield could hit 3.10 pct

Jeffrey Gundlach, chief executive and chief investment officer of DoubleLine Capital, said Thursday that the yield on the 10-year U.S. Treasury note could hit 3.10 percent by the end of the year. Speaking on cable television network CNBC, Gundlach also said he sees selling pressure on risk assets if the yield on the 10-year Treasury note rises even further. "If the 10-year goes to 3.50, I think you're going to see serious downward movements in risk assets, and that would stop the interest rate rise in its tracks," Gundlach said.

Posted by khards @ 03:36 PM 9 Comments

And all because the lady loves hpi-tray

Guardian: Bank of England: consumers turn to loans, credit cards and overdrafts

Consumer credit grew last month at its fastest pace since December 2008, as households resorted to personal loans and overdrafts to maintain their standard of living in the face of falling real wages.

Posted by dill @ 12:49 PM 11 Comments

August 2013 (pdf)

Nationwide: House Price Index

Monthly Index* 337.8 Monthly Change* 0.6% Annual Change 3.5% Average Price (not seasonally adjusted) £170,514 *Seasonally adjusted figure

Posted by dill @ 09:30 AM 33 Comments

Midnight Inspiration.

Bank for International Settlements: Ageing, property prices and money demand

When the baby boomers joined the workforce and started saving, money supply and property prices entered a rising trajectory. We conclude that demography was the long-run driver of this process, basing our argument on data from 22 advanced economies for the 1950–2010 period. According to our lifecycle model, large working-age populations saved for their old age by investing in property and broad money instruments, such as deposits. In the past, savings activity by baby boomers drove up property prices and also increased demand for money. As baby boomers retire, these dynamics will go into reverse.

Posted by khards @ 07:51 AM 4 Comments

The true face of British Banking

Telegraph: Bail us out or we go bust, warns Co-op Bank

The Co-op Bank has warned that it has “no Plan B” to rescue its finances and bondholders must accept its £1.5bn bail-out plan or it will go bust.

Posted by dill @ 07:46 AM 4 Comments

Thursday, August 29, 2013

Much of Britain was exposed to bacteria sprayed in secret trials

The Guardian: Millions were in germ war tests

Meanwhile, as Porton Down refuses to answer questions about ongoing testing over British homes on the British public of chemical and biological weapons, The Independent reports that the Syrian Rebels being armed by Britain are Al Qaida: http://www.independent.co.uk/voices/comment/does-obama-know-hes-fighting-on-alqaidas-side-8786680.html . In another rewind, here is BBC reporting on Britain dumping Cadmium over Norwich during the 1960's in chemical and biological weapons testing: http://news.bbc.co.uk/1/hi/england/norfolk/4507036.stm

Posted by libertas @ 10:32 PM 16 Comments

Avge Price £164,098

Land Registry: July Index

"The July data shows that London experienced the highest annual increase in average property value with a movement of 6.3 per cent. Wales experienced the greatest annual price fall with a decrease of 2.2 per cent". Monthly +1.0%, annual +0.8%

Posted by alan @ 06:00 PM 1 Comments

Sensible piece of commentary.

Mindful Money: Government in danger of major policy mistake as house prices soar

The current strategy appears to be to hand out deposits like confetti but this is very dangerous as it takes virtually no change in house price to wipe out a buyer’s equity in their house. Whilst buying with a 5% deposit sounds like a great idea it means that people are in fact using gearing of 19x to buy a house they may not be able to really afford. - See more at: http://www.mindfulmoney.co.uk/economy/government-in-danger-of-major-policy-mistake-as-house-prices-soar-argues-ashcourt-rowans-stephen-walker/#sthash.7PIwaCKX.dpuf

Posted by khards @ 02:43 PM 4 Comments

London Embassy relocations create hundreds of New Homes

Wetherell: From Diplomats to Drawing Rooms

Research undertaken by Wetherell, in association with Diplomat, on the new £500+million wave of Embassy building sell-offs which will create hundreds of new homes in London's best addresses and represents the largest shake-up of the London Diplomatic Corps in 50 years. Over the last 6 months 20 Embassies and diplomatic buildings have either been sold or considered for sale, to be replaced by hundreds of new homes in London's finest addresses.

Posted by jayne weldon @ 10:59 AM 0 Comments

Wednesday, August 28, 2013

So what price level are the banks looking for?

Telegraph: BoE Governor Mark Carney is ready to pop any housing bubble and warns traders' bets on rate rises are way off

"The Bank is acutely aware of the risk of unsustainable credit and house price growth and will be monitoring it closely," he said in Nottingham on Wednesday.

Posted by dill @ 06:33 PM 11 Comments

Stamp Duty to Rise Over Next 5 Years For Over A Third of UK Home Buyers

Property Buyer Blog: Stamp Duty Set to Rise for Over a Third of Home Buyers in the Next Five Years

New research carried out by Savills Research shows that stamp is set to rise for over a third of home buyers in the next five years. Homes in the East Midlands will be amongst the hardest hit with 71% of homes eligible for stamp duty,

Posted by joel desvignes @ 03:21 PM 1 Comments

Properties you can buy in London for less than £100k

Planet Property: Properties you can buy in London for less than £100k

An agent reckons a "horrendous" (thatls the agent's view!) flat in Brixton is one of the last in London for less than a £100k. They may be right. Then again ....

Posted by the planet @ 03:14 PM 0 Comments

Engaging removals infographic

Armishaws Removals: "Removals are Surprisingly Interesting"

Engaging infographic detailing why, when and how many people move home.

Posted by kevin morley @ 03:02 PM 0 Comments

Another bubble blowing about to take place by the arch bubble blower

Marketwatch: Pound hits high on Carney speech

More about this in the FT - £90Bn more liquidity from the banks once they hit their capital target. More QE if we need it. Do not expect house prices to fall for a while yet. The "feel good factor" could well set in by the next general election. There really will be some pretty grim outcomes in the medium term from this. Expect a lot of debt forgiveness IMHO.

Posted by chrisch @ 02:55 PM 42 Comments

Insurers get that sinking feeling as claims on basements rise

Planet Property: Insurers get that sinking feeling as claims on basements rise

A metaphor, surely for the UK housing market. Money thrown into a big hole in the ground. Digging down to create extra space is popular in London, and a growing headache for insurers faced with more and more claims for water ingress and incorrect installation of the damp proof membrane.

Posted by the planet @ 02:20 PM 0 Comments

Immigration: Mistake or policy?

BBC NEWS: Jamie Oliver: Migrants are tougher workers

Employers like Jamie Oliver are sick of UK workers because so many of them are workshy whingers. The blog world is symptomatic of Jamie Oliver’s complaint... it’s full of lefties advocating higher taxation, so that they can afford to create/buy workshy votes and xenophobic Johnny bedsits banging on about immigrants taking the jobs they don't actually want. The UK needs new blood but unfortunately the UK workers they replace can't go anywhere (who would have them?), so we’ve ended up with a chronic housing shortage. How many people are there really in the UK? 70 million? 80 million? I just got home on a Ferry. The ferry signs are in English, French and Polish. At least 1 in 3 people on the boat were Eastern European. Be under no illusion, immigration is not a mistake, it's a policy

Posted by flashman @ 12:45 PM 32 Comments

OMG! --- Some Good News ---

London Evening Standard: London Tory in attack on 'interfering' new housing rules

New guidelines will see councils taking account of house prices, local wages and the cost of renting for the first time when deciding how many new homes to approve. Council officers will keep track of house prices and rents and then apply an “affordability test”. If they rise too high the council will have a duty to increase housing supply. It could mean more new developments, and even previously vetoed ones, being given the go-ahead. Rick Blakeway, London’s deputy mayor for housing, said: “Obviously there is a critical need to deliver housing in London. We particularly need affordable housing. We will look at the detail of the guidance that is published.” Government figures show London house prices soaring, rising eight per cent to a record average of £425,000 in June.

Posted by khards @ 12:01 PM 6 Comments

What the vampire squid did next

Web of Debt: The leveraged buyout of America

US bank holding companies are buying out the economy's vitals - power and supply chains, distribution, ports, airports, toll roads, commodities - in order to extract rent from them. They take massive excess deposits (i.e. those which are not loaned to the real economy) and Fed QE dollars and use them to buy 'safe', highly liquid assets like USTs in order to use such assets as collateral to obtain cash from the repo market. They then use this laundered cash for purposes that would be illegal if the money were not so laundered - inflating derivatives bubbles and the above-mentioned leveraged buyout of infrastructure.

Posted by icarus @ 11:47 AM 1 Comments

Pessimistic view of Carney

Telegraph: The Bank of England will lose control of inflation and 1980s mass unemployment will return

Somewhat pessimistic view of Carney's machinations.

Posted by stillthinking @ 04:23 AM 3 Comments

Tuesday, August 27, 2013

It doesn't have to be this way

Guardian: Home ownership: how the property dream turned into a nightmare

In this exclusive extract from his book, The Default Line, the economics editor for Channel 4 News traces the origins of the housing bubble and argues that we're condemning a whole generation to paying absurd prices for what is a basic human need – and it doesn't have to be this way. ... "The most dangerous financial product in the world," he paused a moment for effect, "is the mortgage." ... The mortgage: from the Old French words mort and gage. Disputed translation: "death contract".

Posted by doomwatch @ 05:02 PM 1 Comments

Competition for the Young Peoples Party ?

Intergenerational Foundation: Why is it seen as a good thing when house prices go up?

One of the fundamental problems with the British economy is that we have become over-reliant on property, turning the roofs over our heads into our biggest stores of wealth and source of financial security. As Merryn Somerset Webb argued, this is bad because property investment is less productive than if the same money had been invested in companies via the stock market, or used to set up small business. It has also led to a situation where millions of people need property prices to go on rising, simply because their house represents their most significant asset – either they are relying on it to act as their pension or to pay for their care in old age, or they had to borrow so much money to buy it in the first place that a fall into the dreaded negative equity could be ruinous.

Posted by khards @ 02:20 PM 5 Comments

Talking of RT.....

At last - some honesty. UK farce economy exposed.

Max Keiser: Keiser Report: Dutch Blues & Bubble Markets (E488)

Max Keiser and Stacy Herbert discuss the Dutch blues and the pay per gaze advertising coming to a pair of glasses near you. In the second half, Max talks to Ann Pettifor of PrimeEconomics.org about the Alice in Wongaland economy in the United Kingdom where people borrow from payday lenders in order to live and, instead of lending to the economy, the economy is lending to banks.

Posted by hpwatcher @ 10:29 AM 3 Comments

He is getting desperate now - reminiscent of Gordon Brown.

WSJ: Bank of England Chief Takes Interest-Rate Pledge on the Road

Mr. Carney heads to the former industrial city of Nottingham in England's east Midlands on Wednesday for his first public speech since taking the helm of the central bank on July 1. The appearance before the city's chamber of commerce comes three weeks after his pledge to keep interest rates at a record low until U.K. unemployment falls to 7%. His strategy, called "forward guidance," is aimed at underpinning the country's fledgling recovery by reassuring consumers and businesses that borrowing costs won't shoot up until the economy is on a much firmer footing. That, he hopes, will encourage them to borrow more and spend now. In Nottingham, the unemployment rate was 13.6% in March compared with 7.8% for the U.K. The BOE believes it will take until early 2016 for unemployment to 7%.

Posted by khards @ 10:14 AM 4 Comments

Monday, August 26, 2013

Caveat Emptor

CNBC: Look out! September market headwinds are looming

The head winds for stocks are expected to strengthen in September, as a series of major events could make for much stormier markets.

Posted by dill @ 06:30 PM 2 Comments

Memories are short

Independent: Flotation windfall for bosses at Foxtons

I seem to remember that there was a certain owner of some company, could have been called Foxtons maybe, or Squirrels perhaps, and there was, again, I can't properly remember, I have some vague memory of the top of some market or another being called when this randomly lucky estate agent, or whatever, sold out. Just before the whole thing went to s&&T and need 10K per person of printing by the BoE. This was back in 2007, surely no saddo will have been looking for a hpc for all that time (gulp..). Current batch want to do the same and why not. Nothing suspicious at all, move along, market going fine, yields not going up and the government guarantee etcc

Posted by stillthinking @ 03:32 PM 1 Comments

Extraordinary student block short-listed for ‘carbuncle cup’

Planet Property: Extraordinary student block short-listed for ‘carbuncle cup’

An amazingly mad (and bad) piece of design on London’s Caledonian Road has been nominated for the Carbuncle Cup and is surely a strong contender to win ... unbelievable what these guys have done...

Posted by the planet @ 12:49 PM 0 Comments

Boomers say it is OK to build more houses for themselves

Daily Mail: Councils urged to build thousands of new BUNGALOWS to meet demand from ageing population Read more: http://www.dailymail.co.uk/news/article-2402101/Councils-urged-build-thousands-new-BUNGALOWS-meet-demand-ageing-population.html#ixzz2d4cy9PRx Follow us: @M

Councils will be urged to built more bungalows in response to the ageing population, it has emerged. The Communities Secretary, Eric Pickles, will announce plans later this week which prompt communities to build more of the one-story homes as they are more suitable to the over 65s. Planners will be urged to create more properties to accommodate the housing needs of the elderly who are an ever-growing group of society. The newly built bungalows will only be available to older people, It is likely that they will rent out their grotty old 70's houses to pay for the shiny new bungalows. I suppose any supply increase must be a good thing. This is ageist planning apartheid against the young! Let them rot in the flats that they deemed were ok to let to our generation.

Posted by khards @ 12:35 PM 4 Comments

Only 57%

BBC News: Estate agency insolvencies 'up 57%' in last year

The number of estate agents in the UK entering insolvency jumped 57% in the last year, a new report has indicated.

Posted by mrr19121970 @ 09:52 AM 0 Comments

Sunday, August 25, 2013

A bit of Bank Holiday fun at the expense of Mrs Carney

Telegraph: Mrs Carney's austerity tips: buy pencils that last longer and share online orders

Don't bother with the article read the comments, just goes to prove what a fantastic sense of humour us Brits are given the opportunity.

Posted by enuii @ 11:02 PM 9 Comments

When you're in a hole, stop digging!

The Guardian: Mark Carney to use maiden speech to convince the City who doubt rates will stay low until 2016

The Bank of England governor, King Canute, will reiterate his pledge to keep Britain's borrowing costs at record lows until the recovery is "locked in" in the face of growing scepticism, when he gives his maiden public speech in the UK this week. "It is important that Canute and his sidekicks at the BoE are able to keep expectations of the first rate hike from getting unhinged from the state of the economy," said Wood. "Canute will probably lead the charge next week against unconvinced markets, with his 28 August speech likely to try and talk down interest rate expectations."

Posted by khards @ 09:12 PM 1 Comments

Who'd have thought it!!!

BBC News: Greece 'may need 10bn euros more' in aid - Stournaras

Seems the greek only need another 10 billion Euros. They told us last month the crisis was over....can't wait till next month....

Posted by thecountofnowhere @ 04:41 PM 0 Comments

Saturday, August 24, 2013

House building plans

Telegraph: Green-belt housing doubles in a year

"The number of houses planned for England’s green belt has doubled in a year, a report discloses. Plans now exist for more than 150,000 homes to be built on protected land, an analysis of council documents has found. The sites include some of England’s most scenic areas, including parts of Dorset and the rural outskirts of York, according to the research carried out by the CPRE. In addition, more than 1,000 acres will be lost to office blocks, warehouses and the HS2 rail link".

Posted by alan @ 10:16 PM 7 Comments

Ann Pettifor explains Alice in Wongaland.

Prime Economics: Fragile UK Recovery based on payday loans

Recent growth numbers for UK services, manufacturing and construction suggest that Britain is recovering after the recession double dipped in 2011/12. Private consumption has risen. However wages remain low. According to the Office for National Statistics household income in Britain declined before the crises between 2001/2 and 2006/7 by 1.4% per year. Since the recession, income before tax has declined at an average rate of 2.1% per year, according to the BoE. If income is not rising, how is increased consumption financed? Bank’s statistics reveal that amounts outstanding to conventional banks and building societies fell by 13.13% between July, 2011 and 2013. In stark contrast the amounts outstanding with “other” creditors (payday lenders etc.,) increased by 18.75% over this period.

Posted by khards @ 02:27 PM 1 Comments

Alice in Wongaland and the interest rate apartheid.

RT: Keiser Report Episode 488

Max talks to Ann Pettifor of PrimeEconomics.org about the Alice in Wongaland economy in the United Kingdom where people borrow from payday lenders in order to live and, instead of lending to the economy, the economy is lending to banks. They also discuss interest rate apartheid, carry trades and public unrest.

Posted by khards @ 01:56 PM 3 Comments

Friday, August 23, 2013

We're weak and ready to cheat again implies rep

Reuters: BoE ready to restart asset buys if needed - Bean

Britain's central bank stands ready to restart asset purchases if the need arises, which is not the case at present, Bank of England deputy governor Charlie Bean said on Friday.

Posted by dill @ 08:19 PM 3 Comments

All's fair in love and war

Daily Mail: Chipping - the new name for gazundering

The only way to relieve the stress of buying a property is to have a good moan. The other day, I was only halfway through a long whine about the outrageous cost of this house I’m purchasing, when my friend Sam stopped me short. ‘You could always just chip,’ he said. ‘We chipped and saved about £20,000.

Posted by dill @ 07:37 PM 2 Comments

The majority are so poor they cannot afford petrol let alone overpriced houses.

My Finances: July fuel price hike causes motorists to cut back

An increase in the price of petrol and diesel in July has caused motorists to ration their petrol use, according to an analysis of official figures by the AA. The AA found that the total amount of petrol purchased by UK motorists in July was 1.48 billion litres, a drop of eight per cent on June 2013. This was only 45 million litres more than the record low seen in February this year.

Posted by khards @ 06:32 PM 1 Comments

Help To Buy v1 was directed at the London market - Why is that not surprising

Money Week.: When supply goes up prices usually fall. Is London different?

In London. Prices are high, rents are high. And what’s happening? A visible effect on local supply. “There are 1,000 flats coming here in White City. There are 5,000 at the Olympic Village, 7,500 on the way in Earls Court (maybe more), 5,000 at Battersea Power Station (the “real estate opportunity of a lifetime”), 800 at Lots Road, 700 in Ealing, 7,300 in Croydon, a few thousand more at King’s Cross and 5,000 at the Royal London Docks – and that’s just the beginning of a long list.” There has been an announcement of a new tower at Elephant and Castle (44 stories, 450 flats) on top of the 5,000-odd already planned. It may be that demand for London property is infinite and these tens of thousands of units are a drop in the ocean of need.

Posted by khards @ 02:30 PM 2 Comments

BBA reports mortgage approvals rise by annual rate of 30%

Myfinances.co.uk: Mortgage lending rises but overall picture remains sluggish

The British Bankers’ Association (BBA) reports that 37,200 new home loans were approved in July, marginally below the 17-month high in June of 37,337.

Posted by ben @ 02:07 PM 0 Comments

40% will have to pay at least £7,500

Myfinances.co.uk: Four out of five homes will have to pay stamp duty by 2018

It has emerged that 80 per cent of homes in England and Wales will have to pay stamp duty tax if they plan to buy after 2018, due to rising property prices, according to latest research by the TaxPayer's Alliance.

Posted by ben @ 11:57 AM 4 Comments

Just getting ready for all those new house buyers, Guv

BBC: Furniture stores used fake prices, says OFT

"Six High Street furniture and carpet retailers have been accused of misleading their customers with fake prices". Well, if the cash buyers are daft enough, why not? The banks are doing it, aren't they?... and they don't get prosecuted.

Posted by alan @ 11:12 AM 1 Comments

Thursday, August 22, 2013

Higher rates on the way

Telegraph: Emerging market rout threatens wider global economy

Hints of Fed unwinding of QE are unleashing a financial tsunami , starting off in emerging markets. We could finally be seeing a route tomraising of IRs.

Posted by voiceofreason @ 10:25 PM 16 Comments

Conundrum

EstateAgentToday: Calls for ministers to pull Help to Buy out of booming London

Looks like Stuart Law of Assetz has just woken up to the dilemma that he and his ilk face. If Government stays in the market, then rents will fall as voids increase. If Government u-turns and pulls out of Help to Buy Votes stage II, then there will be a self-reinforcing bearish reversal in the UK housing market as everyone heads for the exit on the artificial underpinning disappearing. House Prices collapse and rents with it. Who'd have thought, in a supposedly civilised democracy,that having a roof over your head could cause so much trouble. [H/T rant'n'rave for the link] Oh, and don't mention gilts!

Posted by dill @ 08:53 PM 3 Comments

Sell-off of 20 London embassies expected to make billions

Planet Property: Sell-off of 20 London embassies expected to make billions

A wave of Embassy and diplomatic building sales is creating hundreds of new homes in central London’s finest addresses and is expected to make billions for developers ... but what, we wonder, will happen to Ferrero Rocher??

Posted by the planet @ 08:00 PM 0 Comments

Ooops I did it again!

Reuters: UK banks agree to pay for latest mis-selling scandal

"British insurer CPP and 13 high street banks and credit card issuers will pay up to 1.3 billion pounds to millions of customers who were mis-sold CPP credit card insurance policies.The announcement by the FCA today heaps further embarrassment on British banks after a string of mis-selling scandals and huge compensation payments". (but don't mis-claim on housing benefits, it's a different law for YOU... Cops at 6.00am).

Posted by alan @ 06:10 PM 1 Comments

Detroit Ghost Town

Bloomberg: Abandoned Dogs Roam Detroit in Packs as Humans Dwindle

As many as 50,000 stray dogs roam the streets and vacant homes of bankrupt Detroit, replacing residents, menacing humans who remain and overwhelming the city’s ability to find them homes or peaceful deaths.

Posted by mountain goat @ 04:26 PM 1 Comments

Nimby of the week = Pieter Van der Westhuizen

Shropshire Star: Anger at consent for social housing in Wem

People in Wem reacted with anger after a controversial plan to build 23 social houses was given approval. Members of Shropshire Council’s planning committee this week voted in favour of building the two and three-bedroom homes in Soulton Road. But local resident Pieter Van der Westhuizen said he and his fellow neighbours felt let down by both Wem Rural Town Council and the planning committee for approving the plans. He said: “We are all really upset about the decision. “There has not been a proven demand for this type of [cheap/affordable] housing. There are existing [overpriced] empty properties available in Wem that have stood empty for years that could potentially be used.”

Posted by khards @ 01:09 PM 12 Comments

How many empty houses as well!

Guardian: 400,000 homes in England waiting to be built, research shows

More than 350 councils in England are calling for the freedom to make extra investment in housing to help clear a backlog of almost 400,000 homes given planning permission but yet to be built.

Posted by happy mondays @ 01:02 PM 4 Comments

England has 400,000 unbuilt homes with planning permission

Planet Property: England has 400,000 unbuilt homes with planning permission

New research published today reveals there are nearly 400,000 homes in England which have been given planning permission but haven't yet been built. meanwhile, house-builders reject government calls for a minimum space standard as having "an adverse effect on overall housing supply at a critical time."

Posted by the planet @ 09:59 AM 0 Comments

New Homes Market – First Half 2013

Huford Salvi Carr: New Homes Market – First Half 2013

The proliferation of cranes piercing the London skyline is visible proof that the city is in the midst of a building boom. Each new development strives to be more attractive than the last by enhancing its specification, which helps to drive demand and support price growth. Meanwhile the condition of second hand stock deteriorates, slowly but surely over time.

Posted by shanaka thanapathy @ 09:53 AM 0 Comments

How to mess up what should be a 100% collection rate

Torygraph: Councils referred 1.8m debts to bailiffs last year

Even though local services are reflected in higher rents, somehow it has been deemed that the tenant has to pay instead of the owner. Nonetheless, council tax does have a much higher collection rate (approx 97%) than other taxes and has very few deadweight costs.

Posted by mombers @ 09:34 AM 6 Comments

Wednesday, August 21, 2013

The government wants more money printed so it can continue to run a defect.

Reuters: Bank of England's Weale says more QE could still be needed

The Bank of England has not ruled out fresh stimulus measures, one of the central bank's top policymakers was quoted as saying on Wednesday. Martin Weale told the Telegraph newspaper that he could "certainly envisage circumstances in which it would be sensible to undertake further asset purchases" in addition to the bank's recent move to give forward guidance on interest rates. "As far as I am concerned, asset purchases remain a tool available to the committee if it feels the economy needs further support," Weale added. Such circumstances might include further [guaranteed] shocks from the euro zone, fresh turmoil [ that is kicking off due to threats of withdrawing cheap money] in emerging markets or a faltering domestic recovery.

Posted by khards @ 11:00 PM 16 Comments

I'm not surprised - anyone on here not surprised?

BBC: Government in surprise July deficit

The UK public sector recorded a small but unexpected deficit in July. Public sector net borrowing, excluding the cost of financial interventions, totalled £62m, according to the Office for National Statistics (ONS). In the past two years, corporate and income tax receipts pushed the public purse into a July surplus, and markets expected a £2.5bn surplus this time.

Posted by hpwatcher @ 09:21 PM 13 Comments

Halifax cuts rates for 75-90% LTV borrowers

Myfinances.co.uk: Halifax cuts mortgage rates on 2-year deals

Halifax has cut mortgage rates on selected two-year products by up to 0.45 per cent.

Posted by ben @ 04:46 PM 0 Comments

On top form

Daily Mash: People who don't buy a house will never be happy

According to new government statistics, anyone still renting their home past the age of about 39 is going to die alone and unloved, in the knowledge that they have failed on the most fundamental level. Estate agent Tom Logan said: “Mortgage lending is soaring, basically everyone owns a house now apart from complete social pariahs... 36-year-old Emma Bradford said: “I’d never worried that much about buying a house. We rent a flat, which means getting to live in a place and be broke, same as if we’d bought it. “But as I grow older and more mentally vulnerable, I realise I was wrong. I do hope the bank or government will lend us more money than we could ever hope to pay back. Then we will be happy, because happiness is not being different.”

Posted by mark wadsworth @ 02:48 PM 4 Comments

Economist no longer worried about house price bubble

Property Buyer: Economists No Longer Concerned over House Price Bubble

After months of doubt following the adoption of the Help to Buy Scheme, it appears UK economist no longer fear a house price bubble. However it appears that UK properties remain over-valued in comparison to the rest of Europe.

Posted by joel desvignes @ 02:27 PM 0 Comments

Renters 1 - Landlords 0

Telegraph.: Rents rise slower than inflation as tenants opt to buy

Why buy an overprices asset when you can rent one cheaper? The average monthly rent in England and Wales increased 1.8pc in the year to July, slower than CPI inflation of 2.8pc and slower than house price inflation. Seven regions out of ten saw rents rise in the last 12 months. By far the most rapid of these increases was in London at 5.7pc. LSL says although this has brought rents in the capital to a fresh record, the pace of annual rises has slowed. his week, credit referencing agency Experian published research that suggests tenants - where they can afford to - are leaving the rented sector and buying property. This risks causing a glut in the rental space, with the number of properties advertised to let increasing sharply between April and June.

Posted by khards @ 01:53 PM 3 Comments

Max discusses HP bubbles with Own Jones

RT: Keiser Report: US High Cathedral of Fraud (E486)

Max talks with Stace about the propensity for mum and pop to buy at the top in the first half. But the second half is of more interest - Owen Jones postulates that Georgie is the Anti Robin Hood, stealing from the poor to give to the Rich. (approx 11:48 on).

Posted by techieman @ 01:22 PM 13 Comments

On measuring wealth II

Mindful Money: Shaun Richards: Rising house prices in the UK do not mean that we are wealthier

we face the concept of an economy apparently driven by house prices yet again and the emphasis below is mine: "Dwellings were the most valuable non-financial asset in the UK. They have steadily increased in value in recent years, except for a fall in 2008. In 2012 they were 60% of the value of UK nonfinancial assets." So if we keep driving house prices higher we will all be wealthier? There is an enormous circularity there! All assets depend on how they are valued but one which cannot be moved (with the exception of mobile homes) depends much more on the “valuation” element and ends up being virtually entirely domestic,especially if we exclude central London.

Posted by quiet guy @ 07:49 AM 10 Comments

Indian capital controls

Time of India: Rupee free fall: RBI limits overseas investments by Indians, bans gold coin import

While everybody has been panicking about the dollar and the yen, India is facing a rout in the rupee and has introduced capital controls.

Posted by stillthinking @ 02:47 AM 1 Comments

On measuring wealth

Telegraph: Recovering economy needs investors prepared to take a property risk

After a fairly broad brush discussion about investments, Warner finishes his article: "If the bond market correction has further to go and equities are reckoned to be fully valued, where do you stick your money? That’s a question investors are increasingly answering by venturing back into property – houses, and, and for those who dare, commercial real estate. The financial crash has conditioned us to think of this as an undesirable, even dangerous, development. Yet the economy is not going to recover without it." That's what we're up against and their force is strong.

Posted by quiet guy @ 01:18 AM 3 Comments

Tuesday, August 20, 2013

Another Debt Crisis - Where's Wally?

Reuters: London's 'Gherkin' owner IVG seeks protection from creditors

"German real estate company IVG Immobilien, co-owner of the landmark 'Gherkin' office building in London's City financial district, said on Tuesday it was seeking protection from creditors after failing to reach an agreement over the restructuring of its debt".

Posted by alan @ 06:50 PM 5 Comments

Another bunch of junkies who can't manage their debts either

Telegraph: Greece needs third bail-out, admits German finance minister

"Germany's finance minister, has made an unexpected admission that Greece will need a third bail-out, just weeks before German national elections" (Grexit or Bail-in... cast your votes now)! "Opposition leaders, who have relentlessly accused the government of hiding the truth about Greece, pounced on the finance minister's comments. Peer Steinbrueck, leader of Germany's Social Democrat Party, declared it was "time that Frau Merkel tells people the truth"" ... Impeccable timing Mr Schaeuble :)

Posted by alan @ 06:46 PM 4 Comments

Debt piles up everywhere you look

Telegraph: Monthly mortgage lending highest since 2008

"Sharp lending increase in July sends "sales soaring and house prices to record highs".

Posted by alan @ 06:38 PM 6 Comments

Revealed: the UK’s top 10 places for price cuts

Planet Property: Revealed: the UK’s top 10 places for price cuts

Research from Zoopla reveals top 10 areas with the highest proportion of discounted properties

Posted by the planet @ 05:39 PM 0 Comments

Sydney mansion for sale for $60 million - a new Australian record

Planet Property: Sydney mansion for sale for $60 million - a new Australian record

Property madness not just a UK phenomenon: a mansion in Sydney has been put up for sale with an asking price of $60 million, a new record for Australia. You can bet on whether it will fetch the asking price!

Posted by the planet @ 05:22 PM 0 Comments

MoneyWeek article on the return of interest-only mortgage

MoneyWeek: The unwelcome return of the interest-only mortgage

Interest-only mortgages are back - and they are just as damaging as before, says MoneyWeek's Merryn Somerset Webb.

Posted by andrew.williams @ 04:25 PM 0 Comments

Virgin Money cut fixed and tracker rates

Myfinances.co.uk: Virgin Money cut rates on residential and buy-to-let mortgages

Virgin Money has cut rates on a wide range of its residential fixed rate, buy-to-let and tracker mortgages.

Posted by ben @ 03:45 PM 0 Comments

Money that could have helped the economy?

Telegraph: Savers 'condemned to £33bn loss' by Bank of England

Savers stand to lose as much as £33bn over the next three years due to new policies on interest rates and inflation, calculations for The Telegraph show. The Bank of England has condemned savers to this fate by allowing inflation to soar above interest rates until at least 2016, campaigners said. When inflation is higher than the return on savings, money held on deposit effectively loses its value – in other words, the cash grows more slowly than the cost of living. This is happening today because the average savings account pays 1.66pc, while inflation is 2.8pc.

Posted by hpwatcher @ 03:43 PM 13 Comments

He forgot to mention the pointless Property Porn TV

Daily Moan: 'TV is full of cruel talent shows': Nicholas Lyndhurst compares Britain's Got Talent to Bedlam and says Only Fools and Horses would not be made today

"'Take away the talent shows, celebrity cook shows, skating, dog training, dancing, putting people on an island – and what’s left?'" ... erm , Property Porn, endless re-runs of "Live in the Country" and "Location, Location". Not to mention the auction stuff on BBC with that bloke with the fake tan.

Posted by doomwatch @ 02:14 PM 0 Comments

Had benefitted from the government's Help to Buy scheme.

BBC News: Persimmon profits jump on 'improving homebuyer demand'

Persimmon owns 70,716 sites, but currently has 390 active construction sites.

Posted by cynicalsoothsayer @ 10:52 AM 1 Comments

The gap between mortgage slave and rent slave narrows

Graniard: Interest-only mortgages make a return

A big part of the appeal of a mortgage vs rent is that your liability is nominally fixed and only subject to changing interest rates, not rental inflation. This nice little product builds in an automatic housing cost increase after 3 years

Posted by mombers @ 09:31 AM 8 Comments

Rightmove data shows summer price drop less than normal

Myfinances.co.uk: Asking prices up by 5.5 per cent in one year

The latest House Price Index (HPI) by Rightmove provides further evidence of the improvement in the UK property market.

Posted by ben @ 08:04 AM 0 Comments

Monday, August 19, 2013

Good to see this in the Standard (MVBNIF)

Evening Standard: Why do we tolerate daylight robbery in housing?

"I sometimes think the root of our failure is our political language. Rename housing benefit “landlord subsidy”, Help to Buy “Help to Rig”, and Funding for Lending “Funding for Stealing” and we might tolerate them less. Research commissioned by aides to Ed Miliband show that, in the past two decades, attitudes to home-ownership have fundamentally altered.... Those aides ought to know that it was Proudhon, not Marx, who said that [land ownership] is theft; and as Standard readers — who pay the price every day for this folly — well know, housing policy in Britain is now tantamount to daylight robbery."

Posted by mark wadsworth @ 05:11 PM 25 Comments

Rate reductions for borrowers with a 25% deposit

Myfinances.co.uk: Chelsea BS launch new 2-year fixed rate mortgage at 1.99%

The Chelsea Building Society has launched a new best-buy two-year fixed rate mortgage at 1.99 per cent for homeowners with a loan-to-value (LTV) ratio of 75 per cent.

Posted by ben @ 03:03 PM 0 Comments

Why we need a LVT

Telegraph: Empty home owners face ghost-town tax

Lack of taxation on housing sucks in (possibly foreign) investors to park their money, get capital gains and no incentive to occupy them. A perfect example where LVT makes sense

Posted by european-bear @ 12:37 PM 7 Comments

"The reason the US haven't fixed their economy in the last 5 years is because they cant fix it"

Mail: INVESTMENT EXTRA: Fed's Ben Bernanke is calling time on QE

While the economic data from the US is still mixed, it seems likely that the US central bank will start to gradually reduce its bond purchases from September, having called ‘last orders’ on the programme which has lasted four years. Similarly the new landlord of the Bank of England, Mark Carney, seems minded to leave the QE taps off in the UK while he focuses on other measures. The question is what sort of hangover the morning after will bring.

Posted by hpwatcher @ 11:46 AM 7 Comments

House prices Up 10% per Anum by November??

Market Oricle: UK House Prices Bull Market Soaring Momentum

Prospective U.K. home buyers who may have been persuaded by the pseudo-economists, financial / economic journalists that populate the mainstream press as to the sustainability for any rise in UK house prices will over the past few months been finding themselves in an increasingly panicky state as UK house prices have literally started to soar as illustrated by the latest data and news out of RICS that reported that house prices are now rising at their fastest pace in 7 years, with their indices giving their best readings since November 2006.

Posted by nickyg @ 11:29 AM 8 Comments

For sale: the house where Mary Shelley wrote Frankenstein

Planet Property: For sale: the house where Mary Shelley wrote Frankenstein

“By the glimmer of the half-extinguished light, I saw the dull, yellow eye of the creature open." The house in Marlow where Mary Shelley finished Frankenstein is for sale. Sadly lacking in electrical equipment for the reanimation of dead bodies.

Posted by the planet @ 11:20 AM 0 Comments

Mail has ideological orgasm over Galloway house sale

Planet Property: Mail has ideological orgasm over Galloway house sale

This has to be the best George Galloway + house story since the man appeared on Big Brother and memorably asked Runa Lenski "and would you like me to be the cat?" He's put his Streatham home on market for £1.5 million. News of the price has the Mail in a right old froth

Posted by the planet @ 11:16 AM 0 Comments

Sunday, August 18, 2013

Time to short the Pound ?

Fox Business: Time to Bet on the Euro?

‘Currency Wars’ author James Rickards on strategies for investing in currencies. Could Carneys forward guidance, growing public debt and the lack of shiny stuff cause the Pound to collapse?

Posted by khards @ 05:38 PM 17 Comments

Credit [debt] expension is *not* growth - a more down to earth round up

Zerohedge: Guest Post: "Let Them Eat Credit"

The financial world is riddled with analysis that is either extremely bullish, moderately bullish, or extremely bearish....However, things are not as they appear when the bullish rose-tinted glasses that most view the world through are removed. And the issue is debt.

Posted by hpwatcher @ 02:15 PM 1 Comments

"The most dangerous financial product in the world," he paused a moment for effect "is the mortgage"

Guardian: Home ownership: how the property dream turned into a nightmare

Good summary of how it all went wrong and why it continues to do so. Islam was one of the few journalists to face up to Mervyn King's hollow assurances on the effects of QE and the continued inequities of bailing the reckless a few years back. I hope he continues to do so with Carney who so far, offers his 'sympathies' to savers, but no action.

Posted by paul @ 12:15 PM 9 Comments

Caution

Guardian: Lord Lamont warns boom in buy-to-let mortages could bring economic collapse

Lord Lamont, chancellor during the last recession in the 1990s, has warned ministers to be wary of the sudden growth in the buy-to-let property market which he fears could collapse, causing wider economic catastrophe.

Posted by dill @ 09:28 AM 7 Comments

Privatise the upside, socialise the downside

BBC News: Government to buy 'blighted' HS2 homes

Homeowners will get the "unblighted" market value of their property, plus 10% (up to £47,000) and moving costs.

Posted by greenmind @ 08:37 AM 3 Comments

Saturday, August 17, 2013

ConDem'd To Inflation.

MaxKeiser.com: [KR485] Keiser Report: UK ‘Cult of Mark Carney’

We discuss how the ‘cult’ of Mark Carney is leading to food inflation, as well as housewives outstripping inflation. Meanwhile, George Osborne’s welfare reforms see £11.8 billion ‘saved’ from housing benefits, while £12 billion of taxpayer money is set aside to subsidize mortgages of up to £600,000 for the second phase of the Help to Buy scheme. In the second half of the program, Max talks to Simon Rose of SaveOurSavers.co.uk about forward guidance, real inflation, and George Osborne’s speculative schemes.

Posted by khards @ 08:08 PM 2 Comments

Perspectives and disparities - is this anyway to run an economy?

Guardian: Tales from the property market: renters, buyers and sellers reveal all

From first-time buyers to serial renters, meet the people playing a real-life game of snakes and ladders.

Posted by dill @ 07:32 PM 0 Comments

Priced out in Padstein

Observer: Padstow's locals priced out

"David Cameron and his family, who arrive this week after travelling to Portugal and Scotland earlier in the summer, will stay with George Hollingbery, the Conservative MP for Meon Valley, Hampshire, who recently bought his third property in the area." Hmmmm... not much chance of "affordable" developments here then...

Posted by chrisch @ 04:34 PM 0 Comments

Vomit. The young chap in the video has not got a clue.

Channel 4: Everyone is a winner when house prices are rising.

Miles Shipside, housing market analyst at Rightmove, said "having higher house prices has the feelgood factor". He added: "People feel wealthier and spend more and confidence is high, and it is generally good for everybody." However, Mr Shipside also points out that higher house prices might not be enough to get the economy moving. Ray Boulger, senior technical manager at John Charcol, said there are "winners and losers" in a buoyant property market. He told Channel 4 News: "People who own their own home, who want to trade-down or own more than one property, will benefit. Communities Minister Brandon Lewis insists that what is happening in the housing market is good news.

Posted by khards @ 11:44 AM 4 Comments

I promise the tide will not come in, I promise.

Torygraph: Mortgage affordability peaks but experts warn rate rises loom

Improved affordability and the Bank’s promise of low rates until 2016 appears to be supporting demand with a sharp rise in the number of first-time buyers. Figures from the Council of Mortgage Lenders showed this week that 25,300 loans were advanced to first-time buyers in June, up 30pc on a year earlier. Lending to first-time buyers is at its highest level since 2007. Last week, Mr Carney said monetary policy would be tied to unemployment and indicated that the Bank Rate would therefore stay at 0.5pc until 2016. One of the aims was to encourage lenders to offer more low-rate mortgages.

Posted by khards @ 08:37 AM 31 Comments

Friday, August 16, 2013

Rather than calling for a new land value tax, we can all unite to cut pre-existing taxes

Tax Payers Alliance: Stamp Out Stamp Duty

Stamp Duty makes it much more expensive than it should be to buy and sell a home. The tax on a £300,000 house is £9,000. There are some people who cannot avoid that bill, they have to move. But it is such a big bill that many others will simply stay put. If someone doesn't move because of high rates of Stamp Duty, they are not just worse off themselves. They won't pay any Stamp Duty and lots of other goods and services won't be bought, meaning jobs won't be created, growth won't happen and taxes won't be collected. Politicians should admit that Stamp Duty is not the great source of tax revenue they sometimes make it out to be. They should seize the opportunity: the Government can make serious cuts in Stamp Duty. - Matt Sinclair, Chief Executive, Tax Payers Alliance.

Posted by libertas @ 09:18 PM 10 Comments

Grand Design for sale: former Pet Shop Boys' manager Tom Watkins selling Sussex White Cube

Planet Property: Grand Design for sale: former Pet Shop Boys' manager Tom Watkins selling Sussex White Cube

The Big White House, as featured on Grand Designs and designed by former Pet Shop Boys' manager Tom Watkins - is on the market for £1, 675,000.

Posted by the planet @ 07:23 PM 0 Comments

ConDems - The rentiers party.

New Statesman: How the number of housing benefit claimants has soared under the coalition

The latest figures from the Department for Work and Pensions show that the number of housing benefit claimants rose by 40,526 to 5.1 million in the year to May 2013, an increase of 320,738 since the coalition came to power. Of the total, nearly a million (987,610) are in work, a rise of 52 per cent (337,059) since May 2010. In policy terms, it is a no-brainer. The Chartered Institute of Housing estimates that raising the caps by £7bn could enable the construction of 60,000 homes over the next five years, creating 23,500 jobs and adding £5.6bn to the economy. But for almost entirely ideological reasons, Osborne refused to act. At this rate in 10 years time there will be over 6 million to poor to pay for their own housing.

Posted by khards @ 02:56 PM 2 Comments

Testing the boundaries

CNBC: Canada's red hot housing market teeters on the brink

Canada's overheated housing market continues to defy a U.S. style real estate crash, but even the most optimistic of investors are now bracing for pain ahead as prices continuing to rise and demand showing signs of tailing off.

Posted by dill @ 08:59 AM 3 Comments

We shall see, Mr Carney!

Mail: Global shares fall as fears grow over withdrawal of massive government stimulus schemes

That, in turn, will push up the cost of government borrowing in both America and Britain as this artificial support for the bond market is withdrawn.

Posted by happy mondays @ 08:17 AM 0 Comments

Thursday, August 15, 2013

God is my Broker

Telegraph: Church of England in 'fracking land-grab'

The Church of England has begun legal action to claim ancient mineral rights beneath thousands of homes and farms, prompting fears the church could seek to cash in on fracking.

Posted by dill @ 10:11 PM 3 Comments

A warning for us all

BBC Business News: Falling Netherlands house prices leave owners stuck

The housing dam has broken. Holland is sitting on some 650bn euros in mortgage loans, with many properties worth 25% less than they were before the financial crisis. No other EU consumers are as deeply in debt....

Posted by wilee @ 10:09 PM 2 Comments

Is that all you've got, Britain?

Daily Mail: More than HALF the nation's wealth is trapped in homes as value of Britain's housing stock QUADRUPLES in 20 years

Britain was worth £7.3trillion last year official figures showed today but over half of the nation’s wealth is tied up in its property, which has quadrupled in value the past 20 years.

Posted by dill @ 10:05 PM 2 Comments

Speculation - the end of an era?

CNBC: Stocks tumble, scared by quick interest rate spike

Stung by a rapid rise in interest rates, stocks plunged Thursday in their worst selling spree since June, raising the question of whether a long anticipated correction has begun.

Posted by dill @ 08:43 PM 2 Comments

A short history of bubbles

Business Pundit: 10 most bizarre economic bubbles in history

lest we forget. There have been crazier bubbles in history. If you are questioning your own sanity and scratching your head at how the herd is gorging on increased house prices, remember bubbles never last for ever, but when it get close to the end game, they appear to defy all the odds, sensible people cave into them and then they burst. Interesting several of these bubbles have been in our lifetime, in the new world economy.

Posted by britishblue @ 05:26 PM 0 Comments

Christopher Middleton blatant ramping at it's best.

Torygraph: Britain's best places to invest in property

It’s not merely a false dawn rising over the rooftops. Following years of doom and gloom, UK house prices are finally on the up. According to the Office for National Statistics, values rose by 3.1 per cent in the 12 months to June 2013, compared to 2.9 per cent in the year to May 2013. This is set to continue, with an expected increase of seven per cent in 2014. There are three factors credited for this surge in buyer interest. One is the government’s Help To Buy scheme. The second is the Funding for Lending scheme, which allows banks to borrow money more cheaply. The third, meanwhile, is the Bank of England’s recent indication that interest rates will remain at record lows for some time. Given this sunny forecast, canny buyers may need to move fast to snap up bargains.

Posted by khards @ 03:58 PM 1 Comments

Patcham windmill, on the outskirts of Brighton, for sale

Planet Property: Patcham windmill, on the outskirts of Brighton, for sale

Pretty cool: a windmill with sails and a bedroom at the top with a 10ft, 2 ton brake wheel. Nice views too!

Posted by the planet @ 03:00 PM 0 Comments

Grade II listed toll bridge and keeper’s cottage for sale

Planet Property: Grade II listed toll bridge and keeper’s cottage for sale

Fancy a new career as a toll bridge operator? Then this is the place for you A keeper's cottage and toll bridge for just £195k!

Posted by the planet @ 02:47 PM 0 Comments

5 million with the same plan......

Guardian: Record numbers plan to fund retirement by selling property

Nearly five million homeowners say they will sell or rent their main property, as annuity rates slump to new low Comment "The house has to pay for the grandparents' care, the parent's care, and still be left to the children who will never be able to afford to buy themselves. No wonder house prices will have to rise more and more. How else to pay?"

Posted by tom101 @ 02:08 PM 0 Comments

UK Buy To Let Market On The Rise Following Increase ub Rental Demand

Property Buyer Blog: UK Buy to Let lending rises due to increase in rental demand

According to data recently published by the Council of Mortgage Lenders, the UK buy to let mortgage is now worth £5.1 billion. This represents an increase of 19% in the number of buy to let loans.

Posted by joel desvignes @ 09:56 AM 1 Comments

Incompetence, stupidity or out of control?

Torygraph: Mark Carney may have to relaunch QE to keep down interest rates

The Bank of England is expected to take further action to ensure interest rates remain low after last week’s pledge failed to manipulate the market. Top economists said the Monetary Policy Committee (MPC) could relaunch quantitative easing (QE) within months if markets did not move into line with the “forward guidance” unveiled by Governor Mark Carney last week. The warning came after another rise in both sterling and government borrowing costs. BOE tells the markets what to do - what a joke!

Posted by khards @ 09:25 AM 0 Comments

Wednesday, August 14, 2013

Sibly fantastic

Telegraph: Mortgage rates could rise as market defies Mark Carney

Bank Governor Mark Carney indicated rates would remain low till 2016 but the markets are pricing in an earlier increase, with implications for borrowers. The rates at which banks lend to one another - usually a key indicator of the future direction of fixed rate mortgage rates - have been rising in recent weeks, in spite of Bank Governor Mark Carney's clear "guidance" that the Bank would cap rates until 2016. The interbank rates reflect the demand for and cost of money changing hands between large institutions. These are rising, suggesting market participants are not convinced by Mark Carney's commitment made on August 7 to keep rates low until certain economic conditions - notably unemployment targets - were met. Five year swap rates have risen by a greater 21pc.

Posted by khards @ 07:41 PM 15 Comments

Competition hots up in rental market

BBC: Legal & General plans to become large-scale landlord

The insurer Legal & General is looking to become a major landlord in the UK's residential housing market. Nigel Wilson told the BBC that there is "intergenerational injustice" towards young people, who can't get jobs, have to pay for very expensive education and can't afford housing. Legal & General plans to invest £15bn in housing, education, energy and transport over the next ten years.

Posted by stuartking @ 03:10 PM 4 Comments

What’s so good about rising house prices anyway?

MoneyWeek: What’s so good about rising house prices anyway?

House prices are going up. Most people seem to think that's a good thing. But it's not, says MoneyWeek's editor-in-chief Merryn Somerset Webb.

Posted by martingreen @ 11:13 AM 12 Comments

Bungalow with massive Cold War nuclear bunker for sale

Planet Property: Bungalow with massive Cold War nuclear bunker for sale

A two-bed bungalow with a difference – The Guard House at Bervie Brow in Inverbervie comes with a 10,000 sq.ft bunker used in the 1950s as a military command centre in the event of a nuclear conflict.

Posted by the planet @ 10:51 AM 0 Comments

All voted for no change, but...

Bank of England: Minutes of the MPC (pdf)

Regarding the proposition, eight members of the Committee (the Governor, Charles Bean, Paul Tucker, Ben Broadbent, Spencer Dale, Paul Fisher, Ian McCafferty and David Miles) voted in favour. One member of the Committee (Martin Weale), while supportive of the adoption of forward guidance, voted against the proposition in order to register his preference for a time horizon for the first inflation knockout that was shorter than proposed. He nevertheless intended to form his future judgements about the application of guidance and the knockout criteria in line with the framework adopted by the Committee.

Posted by dill @ 10:49 AM 2 Comments

Now 2.5 million home businesses in the UK

Planet Property: Now 2.5 million home businesses in the UK

That amounts to 52% of the total number of UK small businesses and 8% of the UK’s total workforce ... the numbers are on the rise but wonder if this is deliberate or if 'home working' is just a euphemism for under-employed or laid off?

Posted by the planet @ 10:24 AM 0 Comments

Penny continues dropping

Daily Mail: A new boom is the last thing Britain needs: Why house price increases will inflict the feel-bad factor on first-time buyers

To the British, the house price index is far more than another dry economic number, it is an emotional thermometer. When values rise, homeowners congratulate themselves on their biggest investment paying dividends. But the truth is this week’s surveys showing price increases are not good news. For the idea that rising house values (unlike rising costs of other commodities, which simply fuel inflation) are positive requires a certain suspension of disbelief...

Posted by mark wadsworth @ 10:20 AM 0 Comments

Converted signal boxes for sale

Planet Property: Converted signal boxes for sale

English Heritage has just listed 26 of England’s rarest and best preserved signal boxes. Some have been converted into quirky homes, including one with an indoor ‘endless pool’, sauna and cinema room. What on earth would the fat controller make of that?!

Posted by the planet @ 10:08 AM 0 Comments

Nothing is what is seems, despite what the papers say

Frances Coppola: The illusory housing recovery

She says: 'I can't see how such expansion of lending, and the resulting rise in house prices, is remotely sustainable. The economy is not growing, real wages are falling and living costs are rising. I really don't buy the argument that rising house prices will somehow bootstrap the entire economy into sustainable growth. I'm in agreement with Moneyweek's editor-in-chief, Merryn Somerset Webb. Speaking to the BBC, she said: "I tend to think rising house prices are terrible news. It's an entirely unproductive part of the economy,"

Posted by stuartking @ 01:09 AM 1 Comments

Penny begins to drop

Daily Telegraph: Home owners are not so bubbly this time

A jump in house prices used to be cause for celebration. So why are home owners wary about the latest increase? Some good comments...

Posted by stuartking @ 12:49 AM 5 Comments

Tuesday, August 13, 2013

Perhaps the Young will help rescue us

Grauniad: For my generation, an affordable home seems an impossible dream

A very well written piece on what is like to be young these days, I do wish I could write like that. Read the comments; the property revolution is coming, one coffin at a time.

Posted by pete green @ 06:33 PM 0 Comments

Annual house price inflation jumps to 3.1%

Myfinances.co.uk: ONS reports house price growth accelerates

In the 12 months leading to June 2013, house prices rose by an average of 3.1 per cent across the UK, according to the latest House Price Index by the Office for National Statistics (ONS).

Posted by ben @ 04:52 PM 0 Comments

Irish mortgage defaults getting worse

Bloomberg: Irish Banks Chasing Defaulters Who Sleep Well at Night

Almost 20 percent of all buy-to-let properties -- homes purchased for the purpose of renting them out -- are in arrears, up from 18.9 percent. By value, 25 percent of mortgages are in arrears or have had their terms modified. At Royal Bank of Scotland Group Plc’s Ulster Bank, about a third of borrowers in arrears are paying nothing, Stephen Bell, chief risk officer, said on a call with analysts last month.

Posted by will @ 04:52 PM 0 Comments

All the agony and... the agony of the buying process

Planet Property Blog: Buying a house - in GIFs

So, you want to buy your first house, do you?

Posted by property addict @ 04:42 PM 0 Comments

Sellers and buyers return to market in increased numbers

Myfinances.co.uk: House prices rise at fastest pace for six years, says RICS

The Royal Institution of Chartered Surveyors' (RICS) reports that UK house prices are rising at their fastest pace for seven years as the property market finally turns a corner.

Posted by ben @ 03:48 PM 0 Comments

CML reports 86% of new borrowers choose fixed rate deal

Myfinances.co.uk: First-time buyer mortgage lending at highest level since 2007

The Council of Mortgage Lenders (CML) has published its latest data on the UK property market which shows the number of first-time buyers entering the property market has reached its highest level since 2007.

Posted by ben @ 03:38 PM 0 Comments

Whilst wages rise by 14% and fuel rises by 50%

Independent: First-time buyer house prices will increase by 42% by 2020, claims new report

The housing crisis and failure to build enough new homes in Britain will make 2020 a bleak period for new homehunters, according to the National Housing Federation. Its report 'Housing Britain's Future' suggests that the 22 per cent jump in births between 2001 and 2001 and a decade of insufficient house building are on target to raise first time buyer house prices by 42 per cent and rents by 44 per cent, leaving 3.7 million young people living with their parents by 2020. "We failed to fix the housing market for the Eighties baby-boomers because we simply didn’t build enough homes," said National Housing Federation director Ruth Davison. "This means that, even with decent jobs, many are now struggling to raise a mortgage deposit or pay their rent.

Posted by khards @ 02:42 PM 6 Comments

Inflation - that's bad isn't it?

Reuters: British house price inflation jumps to 2006 levels

British house prices are rising at their fastest pace in seven years, according to an industry survey on Tuesday which may add to concerns that government lending incentives are creating a new property bubble. The Royal Institution of Chartered Surveyors' seasonally adjusted house price balance jumped to +36 in July from +21 in June and just +5 in May. That was the best reading since November 2006 and one of the sharpest improvements over a three-month period since the survey began in 1978.

Posted by khards @ 02:03 PM 1 Comments

Boom, then boom!

City AM: The Bank’s low interest rates will block our path to sustainable recovery

Enticing borrowers into cheap loans at depressed rates while making millions poorer is not a recipe for sustainable recovery

Posted by stuartking @ 01:50 PM 0 Comments

Train fares v house prices

Planet Property Blog: Boom in house prices is still 'nothing'

At last something that makes house price hikes seem reasonable. As the regulated rail fares for 2014 were announced today the RMT have said that the boom in house prices is nothing compared to how high rail ticket fares have soared.

Posted by property addict @ 12:35 PM 0 Comments

Anyone listening?

Financial Times: UK government faces pressure to drop Help to Buy mortgage scheme

The UK government is facing growing calls to drop its controversial Help to Buy mortgage scheme to prevent another housing bubble, as lending to first-time buyers rose to a post-2007 high.

Posted by stuartking @ 11:15 AM 9 Comments

Quick! Buy now, prices will only go up.

BBC: Home buyer activity picking up across UK, surveyors say

West Midlands and north-east England had seen their highest levels of interest amongst buyers for 14 years. For the West Midlands it was the highest level since the figures were first collected, in April 1999. Wales also saw a surge in demand, as measured by the number of people registering with estate agents, and Scotland too saw an increase. "Growth in buyer numbers and prices have been happening in some parts of the country since the beginning of the year," said Peter Bolton King, from Rics. "But this is the first time that everywhere has experienced some improvement."

Posted by khards @ 08:52 AM 10 Comments

Pound in your pocket...

Telegraph: Devaluing the pound will not lead to a 'race to the bottom'

John Mills, a UK exporter, who has foreign currency revenue with sterling costs, is of the opinion that he'll do much better if sterling devalues. This is a slightly worrying whispering campaign. Sterling does need to be lower but..

Posted by stillthinking @ 05:24 AM 31 Comments

Water value tax?

Daily Telegraph: Thames Water's 12pc bill shock - thanks to house prices

The damage inflicted by surging house prices surfaces in some unusual ways...

Posted by stuartking @ 01:53 AM 3 Comments

Monday, August 12, 2013

They just can't get enough

CML: First-time buyers lending at highest level since 2007

Lending to first-time buyers has hit its largest quarterly total since 2007 with 68,200 purchasing their first home in the second quarter of 2013, according to new figures released by the CML today.

Posted by dill @ 07:37 PM 2 Comments

Yes.

Zerohedge: Is The Bank Of England The Worst Central Bank In Europe?

The Bank of England has missed its inflation target more than any other major European central banks in the past five years. As Bloomberg Brief notes, while BOE Governor Mark Carney linked monetary policy to unemployment last week, the BOE has failed to meet its CPI goal 90 percent of the time. Hungary is the second-worst performing, having missed its target 88 percent of the time. The best performers have been the Swiss and Norwegian central banks, which have a 5 percent and 20 percent miss rate, respectively. To rub further salt into the open wound of hope in the UK, it has also had the largest average deviation from its target inflation rate overall.

Posted by khards @ 06:04 PM 2 Comments

Chichester named worst place to buy or rent property in Britain

Planet Property: Chichester named worst place to buy or rent property in Britain

Chichester is the least affordable place to live in the UK - even more unaffordable than London - whereas Belfast and Hull are the most affordable, according to a new report .

Posted by the planet @ 03:40 PM 1 Comments

What growth?

Project Syndicate: Nonsense Economics

What we see is the slowest and weakest ever recovery from a slump. There has been no growth to speak of in the last three years. Almost all of the growth which the five coalition years are expected to bring will come from population growth – much of it from immigration. We are running to stay in the same place, says Robert Skidelsky, Professor Emeritus of Political Economy at Warwick University and a fellow of the British Academy in history and economics

Posted by stuartking @ 12:51 PM 4 Comments

Osborne Takes a Gamble With a House-Price Boom

The Wall Street Journal: In Place of Virtue: Osborne Takes a Gamble

For much of the past five years, the U.K. economic debate has followed a familiar pattern. Whenever the economy hits the rocks following one of its periodic house-price booms, the establishment's first response is to suck its teeth and sternly inform the public that it must end its foolish addiction to debt-fueled spending and adjust to a more virtuous economic model built around investment and exports—no matter what the cost. Then, once the cost becomes apparent, virtue is swiftly abandoned. Interest rates are cut, the pound is devalued, the public is exhorted to borrow and spend. House prices pick up, people feel richer and a pleasing new cycle gets under way.

Posted by parminder bahra @ 11:51 AM 0 Comments

Live in the studios that recorded Bob Marley, Led Zeppelin, Madonna, and many more

Planet Property: Live in the studios that recorded Bob Marley, Led Zeppelin, Madonna, and many more

Trevor Horn's legendary Sarm Studios is about to be converted into recording studios, offices and luxury apartments...

Posted by the planet @ 11:50 AM 0 Comments

Converted clock tower for sale in London

Planet Property: Converted clock tower for sale in London

Not Big Ben, but as near as you'll get in London ...we've seen lots of church conversions over the years but nothing quite like this - a five storey church tower, complete with working clock. You'll never be late for work again

Posted by the planet @ 11:24 AM 0 Comments

Duff pensions

Pension Funds Online: Asset transfers - toxic timebombs or miracle cures?

Llloyds, unusually for a UK company..., have a pension deficit. They also hold assets at fictional values, the so called toxic assets that nobody wants but are still worth top nicker. Somebody put two and two together so Lloyds proposes to push these toxic assets into -their own- pension scheme. This superb two birds with one stone plan allows Lloyds management to offload the rubbish to a pension scheme needing to draw down far far in the future. However, although cunning, this ignores the potentially fatal flaw that the beneficiaries (..) of this pension fund are Lloyds employees who are demanding to know what they're getting. Unfortunately they currently can't be allowed to know.

Posted by stillthinking @ 10:27 AM 4 Comments

Brass Neck

Banks life support needed for 5 more years.

Irish Times: RBS to remain in public hands for next five years, Cable indicates

Cable suggests another 5 years of intensive care needed for broken insolvent UK banking system.

Posted by stillthinking @ 03:58 AM 4 Comments

Sunday, August 11, 2013

Deflation and hyperinflation.

Keiser Report: Open Sewer of Fraud

Max talks to Robert Prechter of ElliottWave.com about debt, deflation and hyperinflation. Regarding the latter, Prechter asks, “if central banks were interested in hyperinflation, then where were the helicopter drops for Cyprus?” As there is no such thing as magic money, it won’t happen, he says.

Posted by khards @ 05:10 PM 2 Comments

Banking on the banks?

The Observer: More trouble in store for UK banks

A list of all the potential legal problems and investigations facing our big financial names makes daunting reading

Posted by stuartking @ 12:38 PM 2 Comments

Household debt warning

Resolution Foundation: Closer to the edge?

The number of families in Britain with perilous levels of debt repayments could more than double to 1.2 million if interest rates rise faster than expected in the next four years and household income growth is weak and uneven. The figures suggest that the ongoing squeeze on households could leave Britain seriously exposed if interest rates were to rise faster than expected, resulting in levels of debt back at the heights last seen in the run up to the financial crisis.

Posted by stuartking @ 12:26 PM 0 Comments

From Expess comments - concerns about the status quo

Sunday Express: Mortgaging our financial future

SO YOU are 37, you have been putting two-thirds of your salary aside for 10 years while sleeping on your friend's sofa and have tapped up your ageing parents for their life savings. Congratulations, you are finally ready to buy your first property.

Posted by wilee @ 12:21 PM 0 Comments

Anyone listening?

Daily Telegraph: I warn you, Mr Carney – a housing bubble is coming

Osborne puts housing market on Viagra

Posted by stuartking @ 12:03 PM 1 Comments

Discontent

Telegraph: Growing anger at landlord lenders

At least Richard Dyson (formerly writing for the Daily Mail) has the partial integrity to point out, to his new found readership, that the largest lender to the Buy to Let sector, today, is the state backed Lloyds Banking Group who are one of the chief 'users' of Funding for Lending.

Posted by dill @ 11:44 AM 0 Comments

Saturday, August 10, 2013

Acadametrics said

Bloomberg: London Luxury-Home Prices Fall in June On Cash-Deal Drop

"Home prices in seven of London’s eight most-expensive neighborhoods fell in June as the number of properties bought with cash dropped".

Posted by alan @ 07:38 PM 4 Comments

Reluctant prosecutors

Greg Pytel: "Too big to fail, too big to jail"

It looks like that prosecuting of those who caused the financial crisis is not anymore an outlandish thing. At least the talk about the financial crimes has become mainstream. The pressure must go on.

Posted by ant @ 12:14 PM 32 Comments

Fighting back

Renegade Economist: A Collaborative Call to Arms

No longer can we value creators keep moving to stand still. Without being glib we are stronger together - so what to do? The team at the Renegade Economist are working on setting up a cooperative structure for value creators with shared values. The goal is to unite the entrepreneurs, the self employed, the SME's and the freelancers who are negatively affected by the pernicious and frankly draconian rent-seeking ideology. It is this ideology that is ruining so many lives.

Posted by stuartking @ 10:59 AM 1 Comments

Friday, August 9, 2013

Excellent discussion on the political generated house price boom

BBC Newsight: Where can savers put their money except into property?

Where can savers put their money except into property?

Posted by kaka @ 11:54 PM 0 Comments

Carney (hockey puck to the head), rentiers and more.

Keiser Report: Lab Rats of Bankster’s Policies

Max talks to Ross Ashcroft of RenegadeEconomist.com about the Empire state of mind of the rentier economy in which predators are invited to feast on producers and a new Bank of England chairman, Mark Carney, hosts the rentiers with free money while the media discusses his stunning good looks and handsome neckties.

Posted by khards @ 08:45 PM 0 Comments

Inforgraphic: the booming London market

Planet Property: Inforgraphic: the booming London market

An interesting infographic shows price movements, growth spots and hot spots in London - yikes: prices up by 25% over a year in some places ...

Posted by the planet @ 04:31 PM 4 Comments

Heat map reveals massive rise in rented sector

Planet Property: Heat map reveals massive rise in rented sector

Two heat maps, one from 2001 the other from 2011, reveal the sharp rise in the number of people in rented accommodation ... all the white spaces are being coloured in as the rental sector spreads like a rash across the country ...

Posted by the planet @ 04:18 PM 1 Comments

Rebalancing the economy

BBC NEWS: UK trade gap shrinks as exports rise

Britain exported a record £78.4 billion worth of goods between April and June thanks to surging demand from countries outside Europe. The all-time high for the second quarter came after a record-breaking performance in June (source: ONS). The financial crisis of 2008 and the moribund Eurozone forced us to focus on exports to non-European countries. As a consequence of these efforts, manufacturing is beginning to revive and is finally shouldering some of the burden previously borne by the service sector

Posted by flashman @ 03:33 PM 7 Comments

Nothing wrong with commercial property owners trousering billions of pounds without lifting a finger

Torygraph: Local councils could lose hundreds of millions of pounds by converting shops to homes

Simple solution is to put a clause in the new deed that says it has to be rented and is still subject to Business Rates. It would have to be rented for local market rates - no tenant would pay hundreds of pounds more to meet their landlord's BR bill. Thus a portion of the rent will stay in public hands where it belongs

Posted by mombers @ 03:19 PM 0 Comments

The Letter To Quick House Sale Sector From The Office Of Fair Trading

House Buy Fast: The Letter To Quick House Sale Sector From The Office Of Fair Trading

Overview of the letter to quick house sale sector from The Office Of Fair Trading and further information about quick house sale companies.

Posted by jonathan rolande @ 01:49 PM 2 Comments

House Prices In The UK Continue Steady Growth

Tom Craven Property Buyers Blog: UK property prices continue to increase steadily

Property prices in the UK continued their steady growth in the months running up to July 2013. This growth pattern is due to an increase in Help to Buy Schemes and in mortgage approvals.

Posted by joel desvignes @ 11:04 AM 1 Comments

Unproductive

Independent: Growth of farming bubble threatens £5trn catastrophe

The threat posed to agriculture by environmental hazards such as climate change and water scarcity is now so great that it could wipe as much as £5 trillion off the value of the world’s farm land, equipment and stock in any one year, a heavyweight study is warning.

Posted by dill @ 02:03 AM 81 Comments

Thursday, August 8, 2013

Debt fueled recovery and theft from savers

Market Oracle: Bank of England 0.5% Interest Rates for 7% Unemployment, to Result in 7% Inflation, Ongoing Savings Theft

"Theft of purchasing power from savings and worker wages by means of high real inflation, transferring this stolen wealth to the bankrupt banking crime syndicate, and the government so that it can continue to maintain vested interest voting blocks, by bribing the electorate with debt and printed money that is not backed by any economic activity."

Posted by hpwatcher @ 07:47 PM 0 Comments

Carney's gift

Huffington Post: Canada's High House Prices Held Up By Phony Appraisals - Taxpayers On Hook, Report Says

“We hope very much to be proven wrong, but the analysis is clear. Canada borrowed its way out of the 2009 recession by stoking our residential housing market to absurd levels. We cannot afford the houses we are living in," says Canso Investment Counsel, a corporate bond management firm. Now Carney, with Osborne's blessing, is going to try to do the same here.

Posted by stuartking @ 07:40 PM 0 Comments

New EU ruling set to make mortgage costs even more difficult to understand

What House: Mortgage blog: EU ruling set to make costs even more difficult to understand

New EU rules set to come into force later this year are set to make it even more difficult for consumers to compare the costs of mortgage deals. That is the view of leading experts after a survey from Which? found that only a minority of people can already recognise the cheapest mortgage deal.

Posted by layla grant @ 04:58 PM 3 Comments

CML data

Telegraph: Buy-to-let boom powers ahead with lending up 31pc

Loans to landlords have reached a five-year high, with the Bank's low rates pledge predicted to propel further growth.

Posted by dill @ 04:55 PM 1 Comments

Pot calling Kettle black?

Daily mail: Bankers detached from the real world are 'socially useless', warns new Bank of England boss Mark Carney

New Bank of England boss Mark Carney today slammed self-obsessed bankers detached from reality have become ‘socially useless’ and must change their ways..........Whilst Osborn stokes up the property bubble again.

Posted by joseph @ 04:31 PM 3 Comments

Average age of second-time buyer hits 42

Myfinances.co.uk: Second-time buyers have to wait 14 extra years than in 1960's

New research from the Post Office reveals that the average age of a homeowner moving into their second home has reached 42.

Posted by ben @ 12:56 PM 2 Comments

Iconic garage for sale

Planet Property Blog: Relive that Ferris Bueller moment

A great place to spend your day off… This home is burned into the conscience of a whole generation, as the location in the 80s film Ferris Bueller’s Day Off where, in a pivotal moment of defiance, Bueller’s best friend Cameron sends his dad’s classic red Ferrari though the walls of the garage.

Posted by property addict @ 12:49 PM 0 Comments

Lack of supply = good, cheap credit = good.

Banana Express: Booming Britain: Misery for millions as house prices rise six months in a row

HOUSE prices are soaring at their fastest rate for three years, fuelled by rising consumer and government debt. Values are already up £9,196 this year and have pushed the cost of a typical three-bedroom semi to £169,624, Britain's biggest mortgage lender said yesterday. In the past three months alone property prices have risen a hyper inflationary 4.6 per cent - adding £766 a month or £25 a day - compared to the same period last year, the Halifax said. David Newnes, director of LSL Property Services and owner of estate agents Your Move and Reeds Rains, said: "The property market has moved from depression to bubble, and there is a good chance it is now entering full blown bubble. Now is as good a time as any to get on to the housing ladder if buyers can muster a five per cent deposit.

Posted by khards @ 09:13 AM 16 Comments

Wednesday, August 7, 2013

'Mortgage rates seen rising as banks reluctant to take on risk'

Reuters: Canada tightens mortgage lending rules to cool housing market

TORONTO, Aug 6 (Reuters) - Canada's federal housing agency took small step to tighten mortgage lending in 2013, limiting guarantees it offers banks and other lenders on mortgage-backed securities in another attempt to keep a lid on the country's robust housing market.

Posted by dill @ 06:12 PM 4 Comments

Carney presents forward guidance policy

Myfinances.co.uk: Bank of England links interest rates to unemployment

The Bank of England has announced that it is to adopt a policy of forward guidance on interest rates.

Posted by ben @ 01:14 PM 1 Comments

Surge in Irish repossessions predicted after change in rules

Planet Property: Surge in Irish repossessions predicted after change in rules

The Irish property market is bracing itself for a surge in the number of home repossessions following a change of rules by the Central Bank. Up to now indebted homeowners have had one year's protection from having their properties repossessed, but the 12 month ban on banks taking back properties from homeowners in arrears is has just been cut to two months.

Posted by the planet @ 11:49 AM 0 Comments

For sale: the house where Marilyn Monroe came to stay

Planet Property: For sale: the house where Marilyn Monroe came to stay

Oscar winner George Sanders' Art Deco home in Sussex is on the market - Marilyn Monroe stayed here in 1959 after appearing with Sanders in All About Eve (1950).

Posted by the planet @ 10:59 AM 0 Comments

Low interest rates forever - Banks and UK Government insolvent with higher interest rates

Telegraph: Mark Carney has committed the Bank of England to its record low interest of 0.5pc for as long as unemployment remains above 7pc.

Carney says: He's emphasising that the 7pc unemployment rate won't be a trigger for raising interest rates, but rather a trigger at which the MPC will re-assess its monetary policy.'

Posted by hpwatcher @ 10:55 AM 78 Comments

Targetting the vulnerable (what's new)?

Telegraph: Warning on 'quick sale' firms that slice up to 53pc off homes

"The Office of Fair Trading has opened formal investigations into three “quick house sale” firms for “potentially illegal behaviour” that has lost customers tens of thousands of pounds". "The OFT said practices of concern included last-minute price reductions; making a misleading claim about the value of the property and inducing sellers to sign exclusivity contracts with severe penalties for breach of contract".

Posted by alan @ 08:22 AM 0 Comments

OFT quick house sale ruling: consumers safe with Quick Move Now

Quick Move Now: OFT quick house sale ruling: consumers safe with Quick Move Now

The Office of Fair Trading (OFT) has recently conducted an investigation into the ‘quick sale’ industry, and today released a statement of its findings. It concluded that some quick house sale companies, such as Quick Move Now, offer a genuine and useful service to those people who need to sell their property in a short time frame.

Posted by donna rourke-houguez @ 07:17 AM 0 Comments

Tuesday, August 6, 2013

George Osborne and Zombi Banks.

Keiser Report:: Strawmen of Finance

We discuss the strawmen of finance, the Help to Buy straw purchase scheme in the UK and the ‘unrealized’ losses on the Fed’s balance sheet as the bondpocalypse gallops into town. Max Keiser also asks, “why don’t the people have a bank that they can call their own?” In the second half, Max talks to Laura Willoughby of MoveYourMoney.org.uk, about moving your savings out of the Too Big To Fail banks and about out-competing the toxic banks and their interest rate apartheid. Read more at http://www.maxkeiser.com/2013/08/kr480-keiser-report-strawmen-of-finance/#ZGUcvqqmb5pxspXs.99

Posted by khards @ 09:47 PM 12 Comments

''More debt'' is the new ''growth''

Mail: Workers 'set to lose £6,660 from their wage packets between 2010 and 2015'

Workers will be earning £1,520 a year less by 2015 than in 2010 - amounting to a loss of £6,660 in real terms over five years. The total would be enough to pay for the average family weekly shop for a year and a half or buy a small car, according to the Labour party, which based the figures on analysis of Office for Budget Responsibility forecasts.

Posted by hpwatcher @ 08:43 PM 7 Comments

Time to use house as the cash machine again...

Visa: Visa Europe UK Expenditure Index

Dr Steve Perry, Commercial Director at Visa Europe said: “The heat wave may have raised our spirits but it appears to have tempered UK consumer spending in July with expenditure down by -2.4% on June and down -0.1% compared to this time last year." Paul Smith, Senior Economist at Markit said: “July’s Visa Europe: UK Expenditure Index provided a pertinent reminder of the challenges that remain for the UK. While the economic data flow in recent weeks has been encouragingly upbeat, we are still in the embryonic stages of real recovery. There will be an inevitable lag between positive business activity trends and meaningful growth in personal consumer spending taking hold, especially given the stagnation of wages and the erosion in real incomes of recent years." Click on image for pdf

Posted by stuartking @ 06:06 PM 0 Comments

Anyone who can join the dots between Help To Sell and Freddie/Fannie will come to the same conclusio

Graniard: Help to Buy mortgages could damage UK economy, warns ratings agency

The chorus grows even more. Will the government backtrack? I doubt it

Posted by mombers @ 05:45 PM 2 Comments

Barclays cuts rates on 'Great Escape' range

Myfinances.co.uk: Barclays slashes rates for homebuyers and remortgagers

Barclays has announced that it will be making a series of rate cuts and improvements to its residential mortgages to encourage more families to get onto or climb further up the property ladder.

Posted by ben @ 12:14 PM 18 Comments

Halifax offers £500 towards media package costs

Myfinances.co.uk: Halifax Intermediaries cuts mortgage rates and launches new product series

Halifax Intermediaries has reduced a variety of mortgage rates and launched a new rage of fixed and tracker products at 80 per cent LTV in order to encourage first time buyers to make the move into property.

Posted by ben @ 12:12 PM 0 Comments

Govt raking it in from hard up buyers

Planet Property Blog: A quarter of buyers now hit by 3% stamp duty

The TaxPayers’ Alliance (TPA) today published new research showing what they have called the ‘punitive’ amounts paid in Stamp Duty each year. While home-buyers in London and the South East are hardest hit, more people across the country are being hit by Stamp Duty at the 3% rate, which acts as a barrier both for an increasing number of first-time buyers. Families buying a home for between £250,000 and £500,000 pay between £7,500 and £15,000 in Stamp Duty.

Posted by property addict @ 11:48 AM 5 Comments

Escape form Osborne

Financial Times: Treasury officials seek an exit from Help to Buy scheme

While Osborne concocts an electioneering scheme by pledging public money to the housing market, the Treasury is trying to find a way to gracefully exit Help to Buy. Apparently, selling the debt to insurance cmpanies is one of the options being considered. The scheme is absolutely crackers and I am beginning to suspect that it will have such momentum that it will be become unstoppable like the US Government Sponsored Entities: Fannie Mae and Freddie Mac.

Posted by quiet guy @ 09:42 AM 12 Comments

UK Mortgage Rates Reach All Time Low

Gateway Homes: Mortgage rates at an all time low in the UK

Data recorded by the Bank of England and the Building Societies Association show that UK mortgage rates have reached an all time low. This means lenders have now entered fierce competition in order to meet increased following the launch of government schemes to put people onto the property market.

Posted by joeld @ 09:33 AM 0 Comments

As expected

LBG: Haifax House Price Index

Annual change: +4.6% Quarterly change: +2.1% Monthly change: +0.9% Average Price: £169,624

Posted by dill @ 08:32 AM 13 Comments

Monday, August 5, 2013

You couldn't make it up, could you?

Guardian: Sub-prime mortgages re-emerge in wake of Funding for Lending scheme

"Sub-prime mortgages, widely blamed as the cause of the financial crisis, have begun to re-emerge with a new lender unveiling a range of loans for borrowers with poor credit histories".

Posted by alan @ 08:29 PM 7 Comments

Gentle caution from Reuters

Reuters: Debt-fuelled consumers and expensive houses drive British recovery

"Britain's economic recovery is gaining pace, but its apparent reliance on consumer borrowing and expectations of higher house prices may offer a shaky foundation for lasting growth". "Osborne denied on Monday that his housing scheme risked creating a new bubble, many economists are concerned that it will fail to significantly lift supply. And Portes said that a big fall in Britain's household savings rate either risked reversing sharply, and hurting consumption, or having a longer-term deleterious effect on Britain's ability to invest for future growth, A third, more benign, reason for Britain's better growth outlook is the fact that for the first time in years, this August has not arrived with financial markets roiled by the threat of euro zone break-up" (that's late September, guys).

Posted by alan @ 05:00 PM 6 Comments

Danny Gabay

Thisismoney (DM): OPINION: America is key to future of UK housing market.

Cheap money hides a lot of ills. It lifts financial markets, boosts bank profits and can even give the appearance of an economic recovery.

Posted by dill @ 02:10 PM 5 Comments

A third of London boroughs see size of rental sector double

Planet Property: A third of London boroughs see size of rental sector double

Between 2001 and 2011 the 33% of boroughs had growth over 100% and there has not been a single borough that has been immune to some level of growth in this sector.

Posted by the planet @ 11:18 AM 0 Comments

Crowd-funding site offers new way to raise a deposit

Planet Property: Crowd-funding site offers new way to raise a deposit

Homefunders, a new American website offers would-be homeowers the chance to use social media to raise a deposit - and you'll never have to pay it back.

Posted by the planet @ 10:59 AM 0 Comments

Council orders demolition of Hobbit House

Planet Property: Council orders demolition of Hobbit House

A young couple in Pembrokeshire who built an eco home without planning permission have been told to pull it down

Posted by the planet @ 10:32 AM 10 Comments

Sunday, August 4, 2013

House prices ready for the plunge

Counterpunch: Housing shifts into reverse

The big y-o-y house price rise in the US is fuelled by everything except the fundamentals. Just one example of manipulation - 'banks create demand by lending cheap money to financial speculators to buy bank-owned homes' (which otherwise would have to be kept off the market to support prices). Gravity is starting to take over, so let's see if there's a perfect storm with those speculators scrambling for the exits.

Posted by icarus @ 02:54 PM 7 Comments

Tenants "are seeking legal advice with a view to forming an action group"

Independent: Barratt heirs serve notice on tenants: Cottages to be sold to pay inheritance tax bill

He was Britain's most prolific house-builder, whose mock-Tudor homes became a symbol of the aspirational middle classes. But the sons of Sir Lawrie Barratt, who died in December last year, have asked tenants on their 4,350-acre Yorkshire estate to leave their homes. They have written to residents asking them to vacate their cottages, as they need to sell them to pay inheritance tax.

Posted by dill @ 12:46 PM 19 Comments

Low rate promise

Telegraph: Mark Carney set for interest rate promise to lift economy

Carney promises low rates through 2015 to forestall market anticipation lifting rates earlier from growing economy. Well, central bankers will always try and verbally achieve something that would entail costs through action, my take is that Carney wants the effects of more QE but without actually doing more QE. I.e. he wants to replace fiscal policy with monetary policy, move from public sector to private. This is a continuation of the government becoming alarmed at taking on the debts instead of the punters. The more public debt is held, the less private debt can be held and the lower asset prices become.

Posted by stillthinking @ 04:47 AM 11 Comments

Saturday, August 3, 2013

The fracking you get, for the fracking you got

Guardian: Ignore fracking protests, government tells planners

Planning authorities have been banned from considering whether renewable energy plants would be a better fit for their communities, if they receive an application for a fracking mine.

Posted by dill @ 10:19 PM 7 Comments

Pwned

CNBC: Foreigners buy nearly 75% of new homes in inner London

Most new homes in central London are being sold at overseas events before being advertised to U.K. buyers, helping to fuel a boom that threatens to freeze out domestic purchasers.

Posted by dill @ 02:33 PM 11 Comments

More on the British Nightmare

Guardian: I may not have deserved the house I bought, but I'm glad I own it

As of (checks calendar) two weeks ago, I am a better person! I know this because I am now a homeowner and people very kindly keep telling me that being a homeowner is a reflection of my moral excellence. They say things like "you've worked really hard" and "you deserve it". The former of these is possibly true (if maybe irrelevant), and the latter… Well, reluctant as I am to surrender the myth of my outstandingness, the latter is very possibly not true.

Posted by dill @ 02:08 PM 0 Comments

No DSS

Telegraph: How welfare reform boosted property profits

"Benefit changes might be making life more difficult for landlords, but it has also pumped-up demand for multi-occupany housing and spawned other property investing opportunities".

Posted by alan @ 09:13 AM 2 Comments

Friday, August 2, 2013

Your Pension may be at risk

Telegraph: US regulators 'find evidence' of banks fixing derivative rates

"US regulators have reportedly been handed evidence that traders at some of the world’s biggest banks manipulated a key rate for derivatives, pocketing millions at the expense of pension funds in the process". Citigroup, Barclays and the other usual suspects questioned."Royal Bank of Scotland also said it was co-operating with authorities regarding the investigation". 'Nuff said....

Posted by alan @ 10:19 PM 4 Comments

Diverse

Land Registry: House Price Index for June 2013 (pdf)

Index(sa): 261.2 Average price(sa): £162,621 Monthly change: +0.6% Annual change: +0.8%

Posted by dill @ 04:02 PM 3 Comments

Five-year fixed rate mortgage from 2.59%

Myfinances.co.uk: HSBC launch first ever 2-year fixed rate mortgage below 1.50%

HSBC has announced further cuts to rates on its residential mortgage range, including a reduction to its two-year fixed rate mortgage that takes the rate to below 1.5 per cent, the lowest ever.

Posted by ben @ 12:40 PM 9 Comments

Nationwide House Price Index

Myfinances.co.uk: House price growth continues in July

UK house prices continued on their upward trajectory in July, rising by 0.8 per cent according to the latest Nationwide House Price Index.

Posted by ben @ 12:37 PM 1 Comments

But when in the MPC what did Adam do next?

PIIE / FT: The Cult of Home Ownership Is Dangerous and Damaging

This was extensively referred to by young Stace in the K report. Its on the FT site but to save the bother of answering silly questions / registering, I've sourced the article from elsewhere. I believe Alan referenced this the other day. Its funny when folks leave or are about to leave a job with perceived political input, they seem to say stuff which they wouldnt say in office.... or am i being uncharitable to Adam? That is of course except for uncle Vince, who says what we all think and then becomes mussled by his "partners" in office...or should that be partners in crime? I couldnt possibly comment!

Posted by techieman @ 08:24 AM 31 Comments

MoM +0.8%; YoY +3.9%; AP(nsa) £170,825

Nationwide: House Price Index July 2013 (pdf)

LEGAL INFORMATION The Nationwide House Price Indices are prepared from information that we believe is collated with care, but no representation is made as to their accuracy or completeness. We reserve the right to vary our methodology and to edit or discontinue the indices at any time, for regulatory or other reasons. Persons seeking to place reliance on the indices for their own or third party commercial purposes do so at their own risk.

Posted by dill @ 08:07 AM 23 Comments

Thursday, August 1, 2013

Happy days (for some)

Over The Peak: Happy days are ehre aigan …

A brief commentary upon recent moves in the property market from 'Mystic'. There have been some reasonably bullish moves in the market recently which is beginning to make me wonder if George Osborne's electioneering scheme might come a little unstuck if it reaches a climax to early? Or can we keep up the happy days for the next two years?

Posted by quiet guy @ 08:27 PM 3 Comments

Eastenders cash in on Olympics

Planet property blog: Olympics leaves tidy legacy for East London Homeowner

House prices rise by £1,000 a month… Homeowners in the 14 postal districts closest to the Olympic Park in have seen property values rise 45% since the announcement of the 2012 London Olympics in July 2005.

Posted by property addict @ 12:01 PM 2 Comments

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