October 2013 Archive

Wednesday, October 30, 2013

I just love this

Rightmove: For Bedd ditached howse!

Read the first line. Brilliant!

Posted by brickormortis @ 08:38 PM 10 Comments

House Purchase Lending 50% Higher in September 2013

Property Buyer Blog: House Purchase Lending 50% Higher over September 2013

House purchase lending from building societies and other lenders has risen by 50% over September of this year when compared to the same time last year. The latest figures from the Bank of England also show that mortgage approvals rose to 66,735 last month, a rise of 14.1% when compared to the previous six month average.

Posted by joel desvignes @ 04:00 PM 0 Comments

What does £1million buy you?

Wetherell: What does £1million buy you?

Based on research undertaken by Wetherell estate agents earlier this year to find what you can buy for £1million in London'€™s West End. This infographic extends that to see what you could buy for £1million worldwide. But why not take a chance at a more extravagant purchase and take a look at these impressive properties you could buy if you have a spare £1m.

Posted by dita p @ 03:22 PM 0 Comments

The Cost Of Adult Children

Aldermore Bank: Emptying the Nest Egg: The Rising Cost Of Adult Children

In today's economy, more and more parents are expected to fund first cars, expensive weddings and living expenses way beyond the age of 18. This infographic, put together by independent British challenger bank, Aldermore, highlights just how much parents are now dipping into their savings pot for to financially support their adult offspring.

Posted by ali raza @ 03:02 PM 0 Comments

Height of delusion

Reuters: Carney says UK growth driven by housing market

"LONDON (Reuters) - Britain's economic recovery is at an early stage and is still reliant on rising house prices and consumer demand, Bank of England Governor Mark Carney said in an interview on Tuesday. "At this stage most of the growth in momentum is coming from the household sector and there's a pick-up in the housing market from quite low levels," he said in an interview with Cardiff's Western Mail newspaper while on a visit to the Welsh capital." Well that's simply not an "economy", is it? And why is "increased activity in the housing market" seen as a good thing in the context of lending bubbles, but when you mention LVT they complain that a lot of people will have to SELL their houses? For every seller is a buyer, so LVT would really "stimulate" the housing market, wouldn't it?

Posted by mark wadsworth @ 10:20 AM 15 Comments

Tuesday, October 29, 2013

It's going mainstreamp, people ....

Buzzfeed (wot the kids read): 15 Facts That Reveal The Utter Insanity Of Britain’s Housing Market

15 Facts That Reveal The Utter Insanity Of Britain’s Housing Market .... Or why you will never be able to buy a house.

Posted by montesquieu @ 09:55 PM 4 Comments

Goldman Wins UK in Carney Raffle

FT: Carney places a bet on big finance

As of August 2013, loans outstanding to UK residents from banks were £2.4tn (160 per cent of GDP). Of this, 34 per cent went to financial institutions, 42.7 per cent went to households, secured on dwellings, and another 10.1 per cent went to real estate and construction. Manufacturing received 1.4 per cent of the total. UK banking is a highly interconnected machine whose principal activity is leveraging up existing property assets.

Posted by tick tock @ 06:37 PM 2 Comments

Printy, printy

Industry Tap: The Printer That Can Print A 2,500 Square Foot House In 20 Hours

"...automated construction, using 3D printers to build an entire house in 20 hours..."

Posted by rumble @ 01:25 PM 2 Comments

Only 50% of Landlords registerd with HMRC.

Telegraph: Landlord tax crackdown

Fewer than 500,000 taxpayers are registered with HMRC as owning properties other than their home. And yet other sources put the number of Britain’s growing army of landlords at between 1.2million and 1.4million. Why the discrepancy? No one can say for sure, but the taxman has his answer: not enough people are declaring – and paying tax on their property incomes and gains. HMRC has a lot of weaponry at its disposal. It can cross-check taxpayers’ records with Land Registry data and, if it wishes to, can go on to request data from third parties such as lettings agents. Banks are another source of information, as taxman can ask for information about mortgages advanced to landlords Tenancy deposit protection was designed to protect tenants but it added a useful string to HMRC’s bow.

Posted by khards @ 09:35 AM 17 Comments

Trials

BBC: Great storm

This will be a demonstration of the broken window theory of economic growth, or clash for clankers, and also, the level of support for gilts given that insurance companies are legally obliged to hold gilts, and the once in 20 years event just happened.

Posted by stillthinking @ 03:37 AM 4 Comments

Monday, October 28, 2013

Will be interesting to see price elasticity in action here!

Auntie: Landlords threaten legal action over mortgage rates

"Thousands of tenants could face rent rises as a result of the higher mortgage rates" Just like thousands of tenants received reductions in rents when rates collapsed, eh?

Posted by mombers @ 03:39 PM 12 Comments

Tonight 8pm: "...even willing to lie to seal the deal" surely not ?

Channel4: The Property Market Undercover

No answers on a postcard needed for this one ... "As house prices soar once again and the government's 'Help to Buy' scheme kicks in early, Channel 4 Dispatches goes undercover to investigate this property market boom. Reporter Antony Barnett secretly films the latest tactics used by estate agents to secure sales and commissions and asks whether some agents are even willing to lie to seal the deal."

Posted by doomwatch @ 01:57 PM 3 Comments

Goodbye to all that: Robert Graves's Devon cottage for sale

Planet Property: Goodbye to all that: Robert Graves's Devon cottage for sale

Vale House, the cottage in Devon where poet. novelist and scholar Robert Graves (I Claudius, The White Goddes, Goodbye to all That) lived during World War II, is for sale

Posted by the planet @ 11:12 AM 0 Comments

Saturday, October 26, 2013

Land bubble on the up up up

FT: Housing boom sets off bidding wars in ‘frantic’ fight for land

With more planning permission and more borrowing it is all going into land prices, destroying any real benefit to the economy. The landowners always win, such is Ricardo's Law "Britain's rapid housing market recovery has sparked a scramble for land, with bidding wars between building groups pushing prices up 10 per cent or more. As sales of new-build homes have surged, on the back of the government's controversial Help to Sell"

Posted by pete green @ 07:54 PM 11 Comments

Lies, damn lies and the row over Rightmove's house price statistics

Planet Property: Lies, damn lies and the row over Rightmove's house price statistics

Twitter storm breaks out as Ed Mead of Douglas & Gordon accuses Rightmove of producing “damaging, lazy statistics”. Is he right? We look at the way the website crunches the numbers ....

Posted by the planet @ 04:28 PM 0 Comments

Friday, October 25, 2013

Has the fat lady just sung?

Ft.com: Buy-to-let, not Help to Buy, is the real scourge of Generation Rent

It is time someone had the guts to stop this market-skewing practice, says Mary Dejevsky. Complete with many rambling and bizarre comments including a few gems like 'My in-laws in China have been telling me about the latest property craze in China ... buying property in London to rent out to students. Its huge, and estate agents in this country attend property fairs in China selling house and flats in Britain.'

Posted by enuii @ 10:48 PM 11 Comments

Gap between asking and purchase price shrinking

TurnKey Landlords: Gap between asking and purchase price shrinking

The gap between the asking price for a property and the price for which it eventually sells is closing, demonstrating that increasing demand and purchasing power are pushing UK house prices upwards.

Posted by amelia @ 05:18 PM 0 Comments

How will the recovery impact buy to let?

LandlordZone: How will the recovery impact buy to let?

It is common knowledge now that, during their party conference at the beginning of October, the Conservatives – perhaps hoping for something as headline-grabbing as Ed Miliband’s pledge the prior week to freeze energy prices – announced the early commencement of Help to Buy: ‘Phase Two.’ The controversial policy will see the government underwrite £12bn worth of high LTV mortgages over the coming three years to help first-time buyers into new homes.

Posted by amelia @ 04:33 PM 0 Comments

What should a landlord do if their tenants break-up?

TurnKey Landlords: What should a landlord do if their tenants break-up

What happens when your tenants split-up? What actions should a responsible landlord take in this situation? Break-ups can be dramatic and I daresay the gossips amongst us (yes I have my hand up too!) would love to get involved in the nitty-gritty of the split. Don’t. It is not your place to do so.

Posted by amelia @ 02:27 PM 0 Comments

UK economy now just 2.5 per cent smaller than at peak

Myfinances.co.uk: UK economy strengthens with 0.8 per cent growth in Q3

The UK economy strengthened during the three months ending in September, according to the first estimate of GDP growth in the third quarter published today by the Office for National Statistics (ONS).

Posted by ben @ 09:58 AM 0 Comments

Thursday, October 24, 2013

Leaving the Big City, London

The Telegraph: Tech Firms are Struggling in London

"In the past year, property rents in London’s Shoreditch tech heartland have soared by 46 per cent. "

Posted by rumble @ 06:08 PM 20 Comments

Help to Buy and the death of Keynesianism

Pieria: Help to Buy and the death of Keynesianism

Help to Buy is not an appropriate Keynesian stimulus for a weak economy, but a profound policy error which puts at risk the quality of life of millions of households.

Posted by m @ 04:49 PM 5 Comments

Are we already in asset deflationary spiral?

Telegraph: One foot in deflationary grave

every one worried about inflation whereas we may be actually in a deflationary spiral. offset by extreme government policies,ultimately,once deflation takes grip in can go on for a long long time

Posted by taffee @ 02:11 PM 6 Comments

Leaving the Big City, New York

The Atlantic: The Grim Math of the Working-Class Housing Crisis

"“Middle-class people can barely afford to live here anymore, so forget about emerging artists, musicians, actors, dancers, writers, journalists and small business people,” wrote Byrne. “Bit by bit, the resources that keep the city vibrant are being eliminated.”"

Posted by rumble @ 01:44 PM 1 Comments

Servants' entrances for Londoners

Planet Property Blog: London's Downton-style' Segregated Housing

Developers insisting on separate entrances and lifts… The Mayor of London has refused calls to clamp down on ‘Downton-style’ segregated housing, with separate entrances and lifts for affordable housing, aimed at investors. Two thirds of new London homes are now bought by investors, while very little affordable housing is being built.

Posted by property addict @ 01:20 PM 1 Comments

London housing bubble

Business insider: ALBERT EDWARDS: 'The Same Bozos Who Missed The Last Bubble Deny There Is One Now'

London house prices just rose 10% - in one month. Everything I read tells me this is unsustainable – which is just as well as prices would more than triple in a year. But make no mistake, as a life-long Londoner I have never ever seen anything like the current frenzy. We are in the midst of the mother of all housing bubbles, and although the rest of the country has yet to follow, it inevitably will do so – it always does. The London housing bubble is no longer driven by Asian or eurozone buyers looking for safe havens. This bubble, like the one in the mid-noughties, is about excessively loose monetary policy and light touch regulation...

Posted by will @ 01:15 PM 3 Comments

Should these low cost eco pioneers be allowed to keep their home?

Planet Property Blog: Hobbit House Under Threat

Couple turn to social media to save their home... Locals call it the Hobbit House, and we don'€™t suppose the Hobbits had planning permission either, but the Pembrokeshire County Council'€™s decision that the eco home, constructed from low impact, natural and recyclable materials, must be pulled down, is causing a social media stink.

Posted by property addict @ 01:15 PM 0 Comments

In the UK, it's called "Grand Designs"

Independent: Vatican suspends 'bishop of bling' who spent €31m renovating a property

One church-goer told the German DW news agency: “I am praying for our Bishop to be healed of his egomania.” If successful, they can try their prayers on the UK, starting with Osborne.

Posted by alan @ 01:15 PM 0 Comments

Are Brits only interested in speculating on House Prices?

Telegraph: Non-UK businesses generate more than a quarter of growth

"Foreign-owned companies generate more than a quarter of UK growth, despite only making up 1pc of total businesses in the UK, official data show". "The ONS said businesses with overseas owners contributed 28pc of gross value added".

Posted by alan @ 01:09 PM 0 Comments

Dirty tricks in the UK property market

TurnKey Landlords: Dirty tricks in the UK property market

The UK property market can sometimes feel like a bit of a fight – and not everyone fights fairly.

Posted by amelia @ 12:48 PM 0 Comments

Wednesday, October 23, 2013

UK Homeowners Increasingly Confident in House Prices

Property Buyer Blog: UK home owners growing more confident about property price increases

Home owners across every region of the UK are growing more confident that their property will increase in value over the next 12 months according to the latest House Price Sentiment Index (HPSI) from Knight Frank and Markit. Those living in London are the most confident about price growth and home owners in the South East closely follow. The HPSI records opinions from 1,500 households across the country and has reflected the bipolar nature of the market in the UK. Those in the North East and Wales expect a more modest rise in property prices.

Posted by joel desvignes @ 01:08 PM 2 Comments

A beautiful artist's studio designed by acclaimed modernist Georgie Wolton has come up for sale

Planet Property: A beautiful artist's studio designed by acclaimed modernist Georgie Wolton has come up for sale

A beautiful artist's studio designed by acclaimed modernist Georgie Wolton has come up for sale

Posted by the planet @ 11:56 AM 0 Comments

A third of tenants evicted or threatened with eviction after complaining

Planet Property: A third of tenants evicted or threatened with eviction after complaining

A third of tenants (32%) who have been evicted, or threatened with eviction, have been put in this position after making a complaint to their landlords about the condition of a property, or after asking for repairs to be carried out

Posted by the planet @ 11:32 AM 3 Comments

Nine awesome church conversions

Planet Property: Nine awesome church conversions

Church conversions are hard to get right. Too often the grandeur of the original is compromised by the need to create domestic living spaces. Here, though, are 9 that strike a perfect balance (and yes, that is a motor bike mounted on the altar wall).

Posted by the planet @ 11:12 AM 0 Comments

Tuesday, October 22, 2013

Three housing myths

Telegraph: We need to build more homes - just don't make them social housing

UK has less social housing than other European nations - Not True! UK house ownership is higher than other European nations - Incorrect! Overseas buyers are purchasing the majority of houses in London - Rubbish! We are not building enough houses - For Sure!!

Posted by wdbeast @ 10:19 PM 4 Comments

All going to plan then Cameron?

BBC: Homeless accommodation: more complaints against councils

In 2012/13, 53,540 households were accepted as being homeless, compared with 44,160 the previous year, the report said. On 31 March 2013, there were 4,500 households in bed and breakfast accommodation compared with 2,310 on the same date in 2011. "The use of Bed and Breakfast accommodation is an option of last resort but with council housing waiting lists standing at 1.8 million, local authorities often have little choice but to use temporary accommodation. "The outdated control of councils' borrowing limits is contributing to this problem. This report highlights why the Government must, as a matter of urgency, lift the borrowing cap which is preventing councils from building up to an additional 60,000 new homes over the next five years."

Posted by khards @ 05:05 PM 1 Comments

As Crisis Builds UK Natives Reduced To Living In Shipping Containers

Express: Shipping containers converted to provide temporary accommodation to the homeless

Six containers arrived at the site in East Sussex while the Brighton Housing Trust (BHT) said a further 30 will arrive by the end of the week. The units will provide temporary accommodation for 36 men and women for a period of five years in the city's New England Quarter. The land where the containers are being housed was formally used as a scrap metal yard and the first residents are expected to move in around five weeks time. Ross Gilbert from developers QED said: "Our temporary use of land earmarked for future regeneration demonstrates just what can be done in the interim to help solve the acute housing shortage." Just build some timber framed council houses or buy some mobile homes FFS!

Posted by khards @ 04:56 PM 7 Comments

Low income taxes and high property taxes make a country attractive to wealth creators

Auntie: How does a country become rich?

"It may surprise you to know that Singapore has more millionaires per capita than anywhere else in the world. One in six households are in the millionaire club. They come to this city-state by design. The government offers low taxes, raising their revenues through a property tax on the expensive, multi-million dollar houses of the ultra-rich. In return the rich spend - boosting the local economy's shops, restaurants and even a Universal Studios." Completely junks the already absurd idea that high income individuals are deterred from jurisdictions with high property taxes... If this was true, Manhattan would be deserted.

Posted by mombers @ 03:59 PM 3 Comments

Martin Taylor of the FPC says he was "astonished" that RICS want a 5% annual cap

Myfinances.co.uk: Bank of England policymaker says no to house price cap

A member of the external Bank of England regulatory body, the Financial Policy Committee (FPC), Martin Taylor has cautioned that it is not the FPC’s job to stop house prices going up.

Posted by ben @ 03:38 PM 2 Comments

Tiny 70s bungalow on small plot with avocado suite for £1 million

Planet Property Blog: The million pound bungalow

Call us old-fashioned, but for just under a cool million we would expect a bit more than this. A three-bed 1970s style bungalow has just come onto the market in Dulwich, South East London, for £935,000. House prices are, obviously, crazy in this popular location, but judging on recent sales, we are wondering if the price was intended to stir up publicity.

Posted by property addict @ 01:19 PM 0 Comments

EU budget ceiling face-off

European Parliament: Plenary asked to vote supplementary budget to avert cash shortfall

"The European Commission will run out of funds to make payments in November unless Parliament approves a €2.7 billion supplementary and amending budget this week, President Schulz told MEPs. Mr Schulz reported that he had been warned of the impending cash shortfall by Commission President José Manuel Barroso, this morning". (most news channels don't cover this type of European problem. It's not good for the plebs to know too much). Failure to pay up immediately could mean vital EU work grinds to a standstill.... Oh Noooo :~(

Posted by alan @ 12:39 PM 4 Comments

Monday, October 21, 2013

I see no bubble (MPC Sept 2013)

ZeroHedge: What Comes After "Bubble": London Home Prices Rise By 10% In One Month

All those who claim there is no inflation, and a tsunami of hot central-bank money flooding the world, are advised to check out the housing numbers reported overnight by UK's property website Rightmove, according to which asking prices in London saw an "unsustainable" 10% month-on-month increase in October. This sent the typical asking prices in the capital to £544,232, a new record high surpassing the previous high set in July by more than £28,000. According to Rightmove, the "frenzy" of activity in parts of prime inner London is due to overseas investors who are looking for a safe haven to place their cash, It also means anyone who is not a robber baron, oligarch, money launderer, or otherwise has criminal access to billions, is fresh out of luck and priced out until the next crash.

Posted by khards @ 02:27 PM 10 Comments

When adult incontinence pants outsell baby nappies

Guardian: Why have young people in Japan stopped having sex?

This seems to be predominantly about Japanese working culture where women who marry and have children usually lose their career. However, there are house price issues involved as well, people staying at home into their 30's and the high cost of housing only affordable to families where both parents work. Sounds familiar, although in Britain we have a baby-boom so perhaps this is just a uniquely Japanese response to the current economic state of the world young people face.

Posted by mountain goat @ 11:32 AM 1 Comments

London asking prices have risen 10.2% in the last month

Rightmove: Rightmove Asking Price Index October 2013

I realise it's a new and volatile index but it's the most forward-looking and this is completely unprecedented. The previous biggest move was +6.5% in October 2009, when the market turned. Nationwide, prices rose 2.8% against a previous record of 4.1% (in Feb. 2012).

Posted by reticent @ 10:41 AM 10 Comments

London estate agents face investigation for racial discrimination

TurnKey Landlords: London estate agents face investigation for racial discrimination

London estate agents may be the subject of an investigation by the Equality and Human Rights Commission after an undercover report showed evidence of 10 agencies violating tenant’s rights by discriminating against African and Caribbean tenants.

Posted by amelia @ 10:17 AM 0 Comments

Sunday, October 20, 2013

Massive property loan default? ~ we just "Bail-In"

Reuters: Euro official calls for bank bail-in from 2016

"The head of the Eurogroup Working Group has proposed an earlier start of 'bail-in' arrangements which force bondholders to share losses in a bank failure (2016)". Whose money are they talking about ~ Yours! Just like Cyprus.

Posted by alan @ 05:43 PM 3 Comments

The rural area of Britain where property is most affordable?

This is Money: The rural area of Britain where property is most affordable?

A district of west Cumbria has emerged as having the most affordable property of Britain's rural areas, while the least affordable countryside housing is in the Cotswolds, research showed today. The average house price is just 2.7 times average earnings in Copeland - which includes the coastal towns of Whitehaven and Gosforth and the nuclear reprocessing site at Sellafield, as well as the remote western portion of the Lake District.

Posted by kat @ 04:46 PM 1 Comments

No respite as rents hit record high

Planet Property: No respite as rents hit record high

In September, average rents across England and Wales hit the highest level ever recorded - an eye-watering £757 per month

Posted by the planet @ 03:05 PM 0 Comments

Modernist Lubetkin house in Haywards Heath for sale

Planet Property: Modernist Lubetkin house in Haywards Heath for sale

Here's a bit of a rarity - a house in the suburbs designed by berthold Lubekin ... priced at £1200 in the 30s ... now: £375,000

Posted by the planet @ 02:24 PM 0 Comments

Saturday, October 19, 2013

Another one for the "eyes wide shut" home buyers

Reuters: JPMorgan in tentative $13 billion deal with U.S.

"JPMorgan Chase & Co has reached a tentative £8.03bn deal with the U.S. Justice Department to settle a range of mortgage issues, a source close to the talks said on Saturday". Doesn't Bliar work for this bunch of Banksters? Getting caught seems to be factored into every other deal they make, doesn't it?

Posted by alan @ 08:24 PM 2 Comments

It woz bad pwoperdee loans wot dunnit

Reuters: Osborne says actively considering RBS "bad bank"

"BlackRock, hired to analyse RBS's portfolio, had identified 50-60 billion pounds of assets to be placed into any bad bank. Advocates of a break-up, including former Bank of England Governor Mervyn King and ex-finance minister Nigel Lawson, have said it would leave the bank better placed to lend and support the British economy".

Posted by alan @ 10:52 AM 6 Comments

Friday, October 18, 2013

How much of a bubble can you blow on top of this?

Grauniad: Unless we change the way we fund universities, our system will collapse

Will Hutton on student loans. Many students don't realise that their loans accrue compound interest even while they are not paying them back whilst on low incomes. Most students won't clear their loans after 30 years of payments, at which point remaining debt is written off. The interest rate is currently up to 6.3% compounded. As students realise the nature of their debts and the repayment terms, and news filters back, this will emaciate future student numbers and especially postgraduate numbers. I want to know what effect this may have on students' mortgage borrowing, and on the housing market in general, given that currently >40% of kids go to HE and are a prime source of FTBs.

Posted by nickb @ 02:20 PM 22 Comments

Thursday, October 17, 2013

Another day, another bank fraud by our luvlee High St banksters

Reuters: HSBC hit with $2.46-billion judgment in U.S. class action

"A unit of British bank HSBC Holdings Plc was hit with a record $2.46 billion final judgment in a U.S. securities class action lawsuit against its unit, formerly known as Household International Inc". People alleged that Household International had violated securities laws by fraudulently misleading investors about the quality of its loans (surely not!). Knighthoods all round!

Posted by alan @ 08:15 PM 1 Comments

Did anyone notice that Prime Centeral London Rents Are Falling?

Savills: Rental values in PCL fall as tenants are looking for value

Rents across prime London saw marginal falls over the year to the third quarter of 2013, continuing a period of lacklustre rental growth seen since mid 2011. This is largely due to an increase in prime rental stock and a constrained employment market in the financial and business services sector. Prime Central London down 6.1% YOY. South east of England In the prime south east of England, rental values have performed in line with the London market seeing marginal falls over the third quarter of 2013.

Posted by khards @ 04:50 PM 3 Comments

Scotland looks on in dismay at rising prices

Planet Property Blog: House prices lose their 'feel-good factor' for Scots

Amid fears that Help to Buy will just make things worse… While many in London and the South East are greeting rising prices as good news, the majority of people in Scotland want house prices to remain at their current levels or to fall, according to a new survey by housing and homelessness charity Shelter Scotland. The survey by You Gov found that 66% – equivalent to 2,806,852 adults in Scotland – want house prices to remain the same or go down in value and 64% think house prices in Britain are too high.

Posted by property addict @ 04:17 PM 1 Comments

I smell a conspiracy

Ekathimerini: Germany's finance ministry denies report it is preparing third bailout for Greece

"Greece is set for some tough bargaining with the troika over a looming fiscal gap in the 2014 budget. Troika officials are demanding further cost-cutting measures after identifying a potential 2 billion shortfall in the latest budget draft submitted by Greece". Greek citizens meanwhile empty their bank accounts for the forthcoming "Bail-in". All those non-performing property loans have taken their toll!

Posted by alan @ 04:04 PM 1 Comments

Good article by Merryn Somerset Webb

Moneyweek: The trouble with a land value tax – and a way round it

"How do we stop the idiocy of the need for ever rising house prices being hard-wired into the UK economy? I’ve written at length about the concept of a land/location value tax (LVT) here and elsewhere. My most recent piece on the matter is here. But I’m not the only person thinking about it – even Martin Wolf mentioned it in a recent FT column." Sounds like a smashing idea that could get around the 'poor widow in mansion' problem. Just so long as it was explicitly linked to an equal reduction in VAT or income tax, over time the number of people who have massive unearned property wealth would fall to zero

Posted by mombers @ 01:37 PM 32 Comments

Everything is just fine!

Guardian: It's immoral to have food banks in one of the world's richest countries

If the recovery is underway – the new mantra – how come people have less money in their pockets? How come youth employment is refusing to budge, and a generation moves seamlessly into "the long-term unemployed"? Pay has stagnated, prices have gone up. To have avoided a fall in standards, one has to be either wealthy or asset-rich. This means owning property in London, as do most of the media/political class, me included.

Posted by happy mondays @ 01:16 PM 6 Comments

BTL Portfolio growth

TurnKey Landlords: Average buy to let portfolio growing

Landlords have increased the size of their portfolios in recent months according to a study by Paragon Mortgages. In Q2 the average size of a property portfolio was 13.3 properties, in Q3, the average is now 14.7.

Posted by amelia @ 12:19 PM 0 Comments

Shades of grey ... remodelling of 70s gatehouse by Dow Jones Architects

Planet Property: Shades of grey ... remodelling of 70s gatehouse by Dow Jones Architects

Like the colour grey - but not in a porny way? Step forward and check out this remodelled gatehouse by Dow Jones Architects

Posted by the planet @ 11:21 AM 0 Comments

Back to "who you know"

BBC: Social mobility report: Work 'may be no route out of poverty'

"He warned middle-class children faced being worse off than their parents for the first time in over a century."

Posted by doomwatch @ 10:36 AM 2 Comments

Wednesday, October 16, 2013

What!? Surely not.

The Independent: BBC censured by watchdog over links with property giant and £150,000 relocation payouts

The BBC (hosting great programmes such as Put Your Money Where Your Mouth Is, Homes Under the Hammer, To Buy or Not to Buy amongst many many others, exposed as having inappropriate links to a property company? Can it really be true? How could this be allowed to happen etc?

Posted by paul @ 02:45 PM 8 Comments

UK House Prices Reach Record High

Property Buyer Blog: House prices in the UK now at a record high

UK property prices have now reached a record high according to data from the Office of National Statistics. House prices are now 0.3% above the previous peak of January 2008 and they increased by 3.6% in the 12 months to August of this year. Prices rose by 3.3% in the 12 months to July 2013 in comparison. House price growth across the UK appears to be stable according to the report but London property prices are growing at a faster rate when compared to the UK average.

Posted by joel desvignes @ 02:37 PM 0 Comments

Sarah Beeny becomes an online estate agent

Planet Property: Sarah Beeny becomes an online estate agent

Sarah Beeny has thrown in the towel with Tepilo, the site she set up to bypass estate agents, and has just relaunched it as .... an online agency instead ...

Posted by the planet @ 11:12 AM 0 Comments

This problem has the capacity to wreck our economy too

BBC: US debt ceiling

"The US must raise its $16.7tn (£10.5tn) debt limit by Thursday or risk default". "Senator John McCain, who was the Republican 2008 presidential nominee, was quoted by the New York Times as saying: "Republicans have to understand we have lost this battle, as I predicted weeks ago, that we would not be able to win because we were demanding something that was not achievable." Senator Barbara Mikulski (D) warned her colleagues that the US was "hours away from becoming a deadbeat nation, not paying its bills to its own people and other creditors" (is it incompetence or a conspiracy?).

Posted by alan @ 10:46 AM 4 Comments

Beautiful Tree House designed and built for own use by architect couple

Planet Property: Beautiful Tree House designed and built for own use by architect couple

Designed by architects Potts & Potts for their own use - a Grand Design type property, but modest and beautifully executed

Posted by the planet @ 10:35 AM 1 Comments

Lighthouse home designed by Robert Louis Stevenson's grandfather for sale

Planet Property: Lighthouse home designed by Robert Louis Stevenson's grandfather for sale

The lighthouse keeper's cottage on the spectacular Tarbat Ness peninsula was designed by R.L. Stevenson's grandfather. The views are awesome, and the place is for sale - tow cottages, seaviews, Offers Over £298,000. You won't get a shoebox in most of London for that.

Posted by the planet @ 10:30 AM 0 Comments

Tuesday, October 15, 2013

Bubbles are always and everywhere a phenomenon of rising bank leverage, and anywhere that has high

Business Specator: How to spot a housing bubble before it bursts

Excellent article with links to The Bank of International Settlements database on private debt levels that finally makes it easy to compare the private debt levels of different countries and a database of house price indices.

Posted by pete green @ 11:26 PM 55 Comments

Whats this Heresy....

The Spectator: What have Londoners gained from the London housing bubble?

"As Charles Moore once observed, the London property market is the world’s largest money-laundering operation. How, I wonder, does this benefit Londoners, except for the increasingly small group of wealthy property owners? It also strongly resembles a bubble, which is why I have little confidence in George Osborne’s economic policy and why talk of a recovery reminds me of those spoof Onion headlines from 1929. (‘Stock Market Invincible: “Buy, Buy, Buy!” Experts Advise’."

Posted by pete green @ 11:10 PM 0 Comments

The tide could be turning

New Statesman: Why Help To Buy could be bad politics as well as bad economics

Osborne hopes "everyone will be happy as property values go up" but a new poll shows that 66% of the public don't want prices to rise. Polls are complex and we will have to see how that is seen in the light of swing voters, but interesting. Are people fed up with the great house price inflation. Are we seeing a Black Swan in public opinion and HPC heresy becoming the new dogma.

Posted by pete green @ 04:26 PM 5 Comments

Pickles goes all Grand Designs

Planet Property Blog: Pickles says let them build their own homes

Eric Pickles plans to turn us into a nation of self-builders… Grand Designs fan and Communities and Local Government Secretary Pickles has promised tax breaks and subsidies to people who build their own home. Bizarrely, for anyone who’s ever seen the program, Mr Pickles suggested that too many people watch Grand Designs and believe building a home was the ‘preserve of the elite’. But we get the point. Pickles says he wants to double the number of self-build projects, raising the number from 10% last year to 20%.

Posted by property addict @ 12:39 PM 5 Comments

The government should focus on building the right homes.

MoneyWeek: Britain needs to stop building the wrong sort of homes

The government should focus less on providing incentives to buy family houses, and more on creating retirement properties, says Merryn Somerset Webb.

Posted by andrew.williams @ 11:53 AM 0 Comments

Letter abourt what happens when hell freezes over

FT: letters: One kind of land tax may provide an exit from housing trap

"Politicians have to take one of the fabled tough decisions, if necessary by forming an all-party pact to defeat the menace of deliberate house price inflation. Alternatively, there are well-placed land taxers of cabinet rank in two of the main parties who should be combining (possibly through an all-party parliamentary group) for a coalition." I also note that MW's new word 'homeownerist' has now made it into print :)

Posted by pete green @ 11:32 AM 5 Comments

ONS says average UK Property valued at £247,000

Myfinances.co.uk: UK house prices reach new record high

UK house prices are rising at their highest annual rate for three years and have now reached a new record high, according to official figures published by the Office for National Statistics (ONS) today.

Posted by ben @ 11:21 AM 0 Comments

ONS food inflation stands at around 4.8%

BBC: UK inflation rate unchanged at 2.7% in September

"It means prices are still rising faster than wages, which rose by 1.1% on average over the same period".

Posted by alan @ 11:17 AM 4 Comments

House sale fall through index Q3 2013

Quick Move Now: House sale fall through index Q3 2013

- Sharp rise in the house sale fall through rate to one quarter (25.02%) in Q3 2013, up from one fifth (19.77%) in Q2 2013. - Long term trend from 2008 remains a steady decline. - The majority of house sale fall throughs in Q3 were caused by mortgage or finance related issues.

Posted by donna rourke-houguez @ 09:39 AM 0 Comments

Monday, October 14, 2013

Poverty is a direct consequence of rent & high land values

Evening Standard: Soaring house prices 'push Londoners into poverty'

"High housing costs are the key cause of poverty" Never a truer word spoken, land prices and poverty are inextricably linked. Poverty does not stem from an insufficiency of resources. Instead, it derives from a system in which the poor bear the burdens of the rich (paying rent to the landlord, interest to the bank, and taxes whenever they buy anything). If the rich would get “off the backs” of the poor, the problem of poverty would largely disappear.

Posted by pete green @ 09:34 PM 5 Comments

Beeny gets it !

Telegraph: Sarah Beeny: Help to Buy makes taxpayers act like parents

In an interview with The Telegraph today, Ms Beeny said: “If a bank isn’t prepared to underwrite a loan because it’s not secure then why the hell are we lending it

Posted by waitingtobuy @ 11:02 AM 18 Comments

Bloomberg pays 31 times less property tax in London

New York Times: London's Great Exodus

"The property taxes on Mayor Michael R. Bloomberg’s $20 million London home come to £2,143.30 per year. That’s $3,430. Clearly, the mayor bought in at the right time. The Google executive chairman, Eric Schmidt, is reported to be house hunting here — he’s looking in the £30 million (about $48 million) price range. Yet he will pay a similar amount in property tax." I looked up Bloomberg's property tax for his spot on at 17 East 79th Street and it's $107,813 per year - 31 TIMES MORE. Now if he wasn't willing to pay it, he wouldn't live there would he? Disgraceful that the richest get away with paying in London.

Posted by mombers @ 08:16 AM 4 Comments

London floats better than Gold or Dollars

New York Times: London’s Great Exodus

Thoughtful and well written article exploring the use of London homes as international store of wealth due to its tax treatment, and its human costs (Land Value Tax would sort this out in a jiffy)

Posted by pete green @ 07:34 AM 20 Comments

Sunday, October 13, 2013

For sale: magnificent Irish castle owned by first president of Sinn Féin

Planet Property: For sale: magnificent Irish castle owned by first president of Sinn Féin

The beautiful Tulira Castle in Co. Galway – once owned by Edward Martyn, first president of Sinn Féin – is for sale.

Posted by the planet @ 03:47 PM 0 Comments

Saturday, October 12, 2013

Anecdotal

Telegraph: Boomtime: Britain bounces back

It's time for a post-morterm. If half of this report is true, the odds a HPC are effectively nil. "Many ordinary Britons may not yet feel it, but the economy is officially warming up. Not only has the International Monetary Fund upgraded its forecasts, predicting a growth of 1.4 per cent this year (double the estimate it put out in April), but the Office for Budget Responsibility has said that the Government’s austerity programme – which the Labour Party said would stifle economic growth – has not affected the pace of recovery." It is becoming increasingly clear that the stupid HTB scheme was unecessary and will likely gift banks with money they didn't need. Naturally, house prices get a mention too.

Posted by quiet guy @ 10:03 PM 34 Comments

Just when you thought it was safe to buy

FT: Renting is cheaper than Help to Buy

Reminder that renting can still be cheaper. (Except of course house prices will never ever go down - ever. And interest rates will never go up again.) [Search title in google if you can't view]

Posted by letthemfall @ 11:28 AM 19 Comments

Friday, October 11, 2013

Mission success

Bloomberg: U.K. House Prices Rise to Record as First Timers Drive Demand

U.K. house prices rose to a record last month as easier access to credit drove first-time buyers back to the market, Acadametrics said. Values increased 0.5% from August to an average £235,534. Nine of the 10 regions tracked recorded price gains in the latest three months compared with a year earlier, according to the report. London price growth was 8.5%, compared with an average of 3.5%.

Posted by little professor @ 12:49 PM 4 Comments

Comment: Housing boom? More like a damp squib

Yahoo Finance: Comment: Housing boom? More like a damp squib

It'€™s been hard to avoid news of the launch of Help To Buy this week. More or less every news bulletin, website and paper has covered the new Government scheme to get people with deposits of just 5% onto the property ladder. The very next thing all these news bulletins and reports mention is the property bubble it will cause. "The proponents of Help To Buy have the noblest of motives - making the dream of home ownership more achievable for everyone,” said Oliver Atkinson, director of the online estate agents Urban Sales and Lettings, for example. "But they are guilty of both pyromania and amnesia - fanning the flames of a housing boom and forgetting how badly burnt the market got just a few years ago."€

Posted by kat @ 11:30 AM 0 Comments

Thursday, October 10, 2013

Osborne reveals the true aim of Help to Buy

The New Statesman: Osborne reveals the true aim of Help to Buy: to inflate house prices

"Hopefully we will get a little housing boom and everyone will be happy as property values go up," the Chancellor reportedly told the cabinet.

Posted by pete green @ 10:53 PM 50 Comments

Martin Wolf - our voice of sanity

FT: Buyers beware of Britain’s absurd property trap

Britian is a nation of property speculators

Posted by pete green @ 10:49 PM 14 Comments

So why push people into more debt on houses?

Telegraph: The debt burden still casts a long shadow over the US and eurozone economies

"The IMF’s World Economic Outlook offers little cause for optimism. There is always some wretched fly in the ointment. In previous years, it was the eurozone, which the IMF now fondly imagines to be on the mend. This time it is a marked slowdown in emerging markets, where falling commodity prices and tighter financial conditions have combined to produce lower growth than expected"." ..the US government hit its legal debt limit of $16.7 trillion last May". But "anyone who thinks the eurozone debt crisis is over is sadly deluded". "No monetary union of sovereign states can survive a decade or more of economic stagnation and record high unemployment. IMF estimate that approximately a fifth of the corporate loan book of Italy, Portugal and Spain is rotten. There is more pain to come".

Posted by alan @ 10:12 PM 0 Comments

Greater Fool

City Wire: LO's Marson: The 'greater fool theory' is driving the housing market

The housing bubble of 1989 peaked at a house price to income ratio of 5.0, followed by a 13% fall in the average house price in the early 1990s. The previous bubble, in the early 1970s, precipitated the secondary banking crisis and the inception of the Banking Act.

Posted by pmf170170 @ 09:28 PM 0 Comments

Oi! Cameron, let us build!

Local Government Executive: London needs over 800,000 homes by 2021, councils warn

London needs 809,000 new homes by 2021 to meet new and backlogged housing demand - over half a million higher than the number of properties set to be delivered, according to new analysis. On current projections, however, London will only get 250,000 new properties by 2021. London councils warned that the current focus on investing in rent through housing benefit rather than bricks and mortar is not increasing the housing supply. The research shows £50bn has been spent on housing benefit in the past decade, compared with just £17bn on building new homes. The imbalance between supply and demand means that over the past 30 years, house prices in London have increased 400 per cent, yet salaries have only increased 150 per cent.

Posted by khards @ 03:49 PM 3 Comments

Hmm, now let me think...

London.gov.uk: Right to Build: What’s Stopping Councils from Building more Housing?

A report from the Housing Committee called for measures – including lifting caps on council borrowing – to allow London councils the opportunity to build housing suitable for low-income families. Nearly 1 in 8 households in London live in a council home, nearly double the proportion of other parts of England, and demand is growing with over 380,000 households currently on a local authority waiting list. the report also calls for surplus public land to be sold to councils at a price which makes building such homes viable,

Posted by khards @ 03:46 PM 0 Comments

New Governor achieves "boring certainty" status

BBC: Bank of England keeps UK interest rates at 0.5%

"The Bank of England's Monetary Policy Committee (MPC) has again voted to keep interest rates on hold at 0.5%. It has kept the key borrowing rate at that level since March 2009". High St banks and Building Societies will continue to offer insulting rates below inflation to savers. This is part of the current policy to move money from the poor and middle classes to the rich. Saving for a deposit?...forget it!

Posted by alan @ 01:20 PM 2 Comments

45bn swap line as Euroland creates new alliances

Reuters: China signs second-biggest swap line with ECB

As China's second-largest trade partner, Europe is a natural destination for Beijing in raising the yuan's profile. The interest is reciprocated by some European nations such as Britain and Germany which want to be the clearing centre for the yuan in Europe and provide what may be a lucrative financial service. Will the continuing US $ decline in influence impact our economy and housing market?

Posted by alan @ 12:58 PM 0 Comments

Southend NIMBYs

Southend Standard: Just say no to greenbelt sites

ANGRY residents have clashed with councillors over fears Castle Point’s green belt could be swamped by hundreds of homes. At a meeting they challenged councillors’ inability to agree a Local Development Plan, claiming the delaywas wasting public money and putting green spaces at risk. They said Castle Point Council should simply refuse outright to allow green belt development. Councillors replied that the Government had ordered them to allow between 200 and 342 newhomes a year for the next 15 years – and without using the green belt, they would run out of sites. Tory deputy council leader Jeffrey Stanley said: “We are running out of time to submit our Local Development Plan and there are not enough brownfield sites.” Perhaps they could build on Dale Farm?

Posted by khards @ 11:39 AM 0 Comments

MP Guy Opperman "worst fears are coming true"

Telegraph: Green Belt at risk in new county plans for housing

Green belt boundaries around some of the region's most popular market towns could be re-drawn and protected sites "deleted" in a bid to solve a housing crisis Northumberland County Council says a failure to keep pace with an ageing and increasing population has meant it is behind Government guidelines on housing numbers. In a bid to plug the deficit, the council is proposing to "delete" green belt land around Hexham, Prudhoe and Ponteland "in order to deliver the level of economic and housing development required". Northumberland County Council says a failure to keep pace with an ageing and increasing population has meant it is behind Government guidelines on housing numbers. Last night Hexham MP Guy Opperman criticised the "attack on green belt" his "worst fears were could be coming true

Posted by khards @ 11:34 AM 3 Comments

Campaigners think they know better architects.

BBC: Keresley greenbelt homes plan submitted

Up to 800 homes could be built on fields on the outskirts of Coventry under plans put forward by developers. More than 40 hectares (100 acres) of greenbelt land in Keresley have been earmarked for development. Campaigners, including members of Keresley Parish Council, said the land was not suitable for housing.

Posted by khards @ 11:30 AM 0 Comments

NIMBYs of the week!

This Is Gloucestershire: New group will fight against greenbelt homes

Those kids will live to regret their actions!A NEW campaign group is urging people to rally to its cause to prevent houses being built on greenbelt land in between Cheltenham and Shurdington. A large triangle of land sandwiched by Up Hatherley Way and Chargrove Lane to the south of the town has been earmarked for development in the borough council’s new 20 year housing plan, the joint core strategy (JCS).Just shy of 800 homes have been earmarked for the site but the small community which calls the area home has mobilised to fight against the plans.

Posted by khards @ 11:26 AM 0 Comments

Help to Buy - not such a great deal

Planet Property Blog: Help to Buy interest rates too high

And could cost more than a 95% mortgage New research from property-based social network Property Network, has revealed that people are disappointed with the interest rates on offer through the Help to Buy scheme, and are worried about the effect Help to Buy will have on normal mortgage rates.

Posted by property addict @ 10:21 AM 0 Comments

MoneyWeek article on the dangers of the current housing bubble.

MoneyWeek: The government is inflating a disastrous property bubble

Merryn Somerset Webb from MoneyWeek says the only reason that house prices have not collapsed in Britain is because the government has not allowed them to & that'€™s a huge mistake,

Posted by martingreen @ 10:03 AM 0 Comments

Bankers priced out of London to use Help to Buy

EFinancialCareers: Needy mid-ranking bankers who can’t afford to live in London could be big users of Help to Buy

Even people earning six figures are struggling to afford housing in London. Mid-ranking bankers could be big users of the government's Help to Buy scheme says one analyst.

Posted by sarah butcher @ 10:00 AM 0 Comments

Buckle up. Don't assume crash position :(

Telegraph: Lending to households increases 'significantly'

Mark Harris, chief executive of mortgage broker SPF Private Clients, said the cheaper mortgage rates, which were been driven down by the Bank of England's Funding for Lending Scheme, and Help to Buy were creating an opportunity for would-be-borrowers that was "just too good to miss". Coupled with the lower rates, increasing consumer confidence and rising house prices also player their part, he said. "Borrowers feel more confident about job prospects and the wider economy, while fear getting priced out of the property market further still if they don't take the plunge now," he said.

Posted by quiet guy @ 12:15 AM 16 Comments

Wednesday, October 9, 2013

House prices are forecast to rise by 43.5% and 27.7% respectively over 2013-18

Expert Agent: House prices reach record high in 2013 and expected to rise further

The housing market recovery is firmly established in London and the South East, where house prices are forecast to rise by 43.5% and 27.7% respectively over 2013-18. The economic recovery and country-wide policy measures which support mortgage lending mean the recovery is now spreading beyond these regions. In the East of England and Scotland house prices are forecast to rise by 27.6% and 27.5% respectively over 2013-18. Daniel Solomon, Cebr Economist and main author of the report, said: "Government support and an improving economic climate will provide an invigorating shot in the arm for the housing market over the coming years. "This is not a case of houses being built on the sand. The housing market recovery we are seeing rests on firm economic and demographic foundations .." :O/

Posted by kat @ 06:20 PM 0 Comments

Affordable housing does exist!

BBC: First £1 Liverpool home handed over to family in Granby

Liverpool Council offered the chance to buy 20 vacant houses for the small sum if the new owners pledged to refurbish them and stay for at least five years.

Posted by mountain goat @ 04:00 PM 13 Comments

Tenants too scared of eviction to complain

Planet Property Blog: Tenants Pay for Their Own Repairs

Amid fears of 'retaliatory evictions'... A third of tenants have who have been evicted or threatened with eviction were put in this position after complaining to their landlords about the condition of their property or asking for repairs to be carried out.

Posted by property addict @ 02:33 PM 0 Comments

The IMF warns of a "messy end"

Sky: IMF Issues $2.3trn Warning Over QE's End

"Investors could be facing a potential loss of $2.3trn (£1.44trn) if the world’s central banks cannot smoothly unwind the emergency measures carried out during the financial crisis, the IMF has warned". Yellen (currently deputy to Bernanke) to the rescue!

Posted by alan @ 02:21 PM 1 Comments

Increase in UK Home Sales due to Help to Buy

Property Buyer Blog: Home sales in the UK hit four year high last month

UK home sales hit a four year high last month indicating the housing market recovery is gathering pace. The latest data from the Royal Institute of Chartered Surveyors shows that the average amount of properties sold in the three months leading to September reached 18.7, a historically low figure but also the highest figure seen since November 2009. The figures show that the market improvement is gathering pace according to RICS.

Posted by joel desvignes @ 02:04 PM 0 Comments

House designed by former Buddhist monk for sale

Planet Property: House designed by former Buddhist monk for sale

Pretty cool - a mix of Eastern influences and California Case Study design. Can see why he decided to give up on the monk thing ...

Posted by the planet @ 11:20 AM 0 Comments

For sale: seven beauties by Baillie Scott

Planet Property: For sale: seven beauties by Baillie Scott

The Scottish architect Mackay Hugh Baillie Scott (1865-1945) was one finest in the Arts and Crafts movement and the homes he designed remain highly regarded. Here's a sample of what's currently for sale.

Posted by the planet @ 10:42 AM 0 Comments

Some positive news maybe

Telegraph: Help to Buy could 'drive London rents down by 5pc'

A London estate agency, Chesterton Humberts, reckons that HTB will depress private rents in London by a little by increasing the supply of rentals as tenants opt to buy. Clearly, if you're looking for a tenancy then more supply is good. The poll at the end of the article currently suggests that one third of those who voted are thinking seriously about using HTB which could be interpreted as an indicator that a mini boom is forming.

Posted by quiet guy @ 07:57 AM 9 Comments

Tuesday, October 8, 2013

Cui bono

Mindful Money: How Help To Buy becomes Help To Sell and finally Help for Banks

Commentary on the Help to Buy scheme from Shaun Richards. Not surprisingly, he is unimpressed. After making a dodgy (IMO) comparison between problems in the Eurozone caused by sharp property price rises and risks faced by UK FTBers, he makes a couple of simple observations: "If we consider the overall picture which is one of recovery in the UK economy it is quite reasonable to wonder why any further economic stimulus was needed at all." and "More help to them [FTBers] would have been provided by letting prices drift lower as we note that everything seems to prioritise the banks once the public relations fascia is removed."

Posted by quiet guy @ 08:46 PM 15 Comments

EAs in legal obligation to tell truth shocker

Estate Agent Today: Lawyers could have field day over agents' duties to disclose property information

A lawyers’ field day looks to be on the horizon after experts disagreed on what needs to be disclosed in property marketing under a legal regime which now dispenses with the Property Misdescriptions Act. According to the NAEA, difficult and sensitive issues about a property that relate to previous owners should be flagged up, not just before a transaction but before any viewings. "I am legally obliged to tell you this property is overpriced, I would advise negotiating at least £50k off"

Posted by sibley's b'stard child @ 01:11 PM 8 Comments

Interesting !

Wordpress: Help to Become a debt slave

The only thing they have in common is they relate to properties marketed up to £600,000 – around 26 times average annual incomes. HAHAHAHA

Posted by happy mondays @ 11:18 AM 0 Comments

We're in the wrong business...

BBC: Help to Buy scheme extension costs being unveiled

"That fee [insurance premium paid by banks to government] charged to the lender is expected to be up to 0.9% of a property's sale price. This is a one-off fee dealt with entirely by the lender, which guarantees 15% of the mortgage for seven years." Splendid, they can charge 2% extra interest on 15% of the purchase price for ten or twenty years = extra 4% or 5% of the price, all for a cheap as chips 0.9% on-off payment. gmwadsworth@gmail.com

Posted by mark wadsworth @ 10:32 AM 17 Comments

Monday, October 7, 2013

Rearranging The Deckchairs On The Titanic

Planning Resource: Prisk loses housing minister role in reshuffle

Mark Prisk has lost his job as housing minister in today's coalition government reshuffle, while shadow housing minister Jack Dromey has also been replaced in a rejig of Labour's shadow cabinet. Prisk tweeted: "Been asked to step aside from housing for a younger generation. Disappointing but it's been a great eleven years on frontbencher."

Posted by khards @ 08:04 PM 3 Comments

Tax payer gets something in return

BBC News: Treasury could make millions from Help to Buy

Robert Peston: I am told that the Treasury has told the banks it will charge them a supposedly "commercial" rate of about 0.9% for insuring up to three-quarters of the first 20% of losses on mortgages for homebuyers who cannot afford to provide a big deposit. And apparently that 0.9% applies to the whole loan, not just the insured proportion. The charge is necessary to prevent Brussels ruling the scheme as illegal state aid.

Posted by mountain goat @ 03:23 PM 7 Comments

Proof That The Propaganda Is Working.

Thisismoney: Business optimism in the City hits highest level since 1996 as green shoots of economic recovery continue to grow

A chart clearly showing that the CBI business optimism chart has no relationship to reality. Wishful thinking that we were in the promising days of 1996 when OASIS ruled the charts and people drove Ford Escorts. Banks, building societies and other financial services firms are the most optimistic about their business prospects for 17 years a report revealed today. The CBI/PwC Financial Services Survey found optimism in the sector surged in the three months to the end of September amid signs of a strengthening economic recovery across Britain. It said 59 per cent of City firms reported feeling more optimistic about their future prospects, compared to only 6 per cent which were less optimistic, giving a balance of 53 per cent - the highest reading since December 1996.

Posted by khards @ 10:49 AM 10 Comments

House haunted by Queen Mary... and Marlon Brando'€™s Irish accent

Planet Property: House haunted by Queen Mary... and Marlon Brando'€™s Irish accent

The Grade I-listed Sawston Hall is said to be haunted by the ghost of Queen Mary. But a more terrifying association is Marlon Brando’s awful Irish accent …the place was used by Michael Winner for his 70's Chatterley inspired bondage-fest The Nightcomers.

Posted by the planet @ 10:38 AM 0 Comments

Sunday, October 6, 2013

Eve of destruction

Keiser Report: Working class debt slavery

Michael Hudson on how property markets in the UK and USA are being used to bail out banks at the expense of real economy. (from 12 minutes)

Posted by stuartking @ 01:17 PM 10 Comments

Saturday, October 5, 2013

Total Wreck for sale for £2 million

Planet Property: Total Wreck for sale for £2 million

Property advertised as Total Wreck for sale for £2 million. Agent wonders if you have the cojones ... welcome to the madness of the London market

Posted by the planet @ 04:03 PM 0 Comments

That's a lot of disappointment

Oxford Mail: Disappointment as homes approved

Nearly 400 homes have been approved by ministers in a move described by Banbury MP Sir Tony Baldry as the “most disappointing” affecting the constituency in his 30 years in the post. Government ministers have overturned the refusal of four planning applications by Cherwell District Council.

Posted by quiet guy @ 01:42 PM 5 Comments

Tales from the Smoke

F.T.: There’s no point trying to live in London

Property fetishism pervades Britain and buyers are becoming more neurotic, says Christian Oliver

Posted by tick tock @ 10:41 AM 1 Comments

Mark Steel on Help to Buy

The Independent: Help to Buy: Is another property bubble really a good idea?

Good article by Mark Steel on Osbornes gift to estate agents

Posted by sean jarleth @ 07:56 AM 0 Comments

Friday, October 4, 2013

Help to buy brings hope to generation rent

Telegraph: Shock, horror – young British couple buy home

For many, buying a house in our homeland was almost an impossible dream – until now. Amy and James are the happiest couple I know. After years of living in over-priced, under-heated, bug-biting rentals, the pair, both in their early thirties, are about to move into a home of their own.

Posted by enuii @ 08:13 PM 11 Comments

HTB optimism

MSN Money: Help to Buy 'boosting confidence'

"One third of people who plan to buy a home in the coming months are hoping to get a helping hand from the Government's flagship Help to Buy scheme, a study has found...could equal around 1.7 million consumers across the country...."

Posted by rumble @ 06:59 PM 1 Comments

Loadsamoney - Shut your mouth an look at my wad!

Telegraph: UK car registrations hit five-year high

Mike Hawes, SMMT chief executive, said: "With over 400,000 new cars registered for the first time in more than five years, the UK market is reflecting growing economic confidence. "Robust private demand has played a major role in this growth with customers attracted by exciting increasingly fuel-efficient new models that offer savings in the cost of ownership." The SMMT has previously said that the UK car industry has reaped the benefits of people wanting to take advantage of new fuel efficient models and spending payouts from the payment protection insurance debacle. The UK market is now the second largest in Europe, with only Germany reporting greater levels of new car sales.

Posted by khards @ 02:50 PM 66 Comments

Don't panic

Telegraph: Five dirty tricks in today's rising housing market

“I truly believe that people shouldn’t panic buy. You should buy when the time is right for you, not in reaction to what the market is doing,” said property expert Sarah Beeny. “You are buying for 25 years and in that time the market will go up and down, so don’t rush into it. Make a considered decision and don’t stretch beyond your budget.” - sensible advice, but it's tricky when you have been waiting on the sidelines for years, not to react to what the market is doing and gov meddling incentives.

Posted by mountain goat @ 12:37 PM 9 Comments

Here'€™s Johnny!! The Shining’s Overlook Hotel for Sale

Planet Property: Here'€™s Johnny!! The Shining'€™s Overlook Hotel for Sale

The ornate hedge maze is fun for all ages - kids love this place!

Posted by the planet @ 10:53 AM 0 Comments

Eight hidden horrors of buying a leasehold flat

Planet Property: Eight hidden horrors of buying a leasehold flat

Buying a leasehold flat? Read this first

Posted by the planet @ 10:51 AM 0 Comments

Osborne is watching this one too

Bloomberg: Russian Plan for Pension Transfer Won’t Fleece Savers Putin Says

"Russia’s plan to transfer 2014 pension savings to cover the pay-as-you-go funding gap isn’t an attempt scrap the funded part of the system or confiscate retirement savings", President Vladimir Putin said. Another sleazy way of ripping off pension funds is to force them to invest in government bonds at 1%. Anything to feed the greedy criminal elites with even more money. It seems my view of governments and Central Bankers is shared by Warren Buffet who said "the Fed is the biggest Hedge Fund in the world". Looks like others are contending for the title!

Posted by alan @ 09:39 AM 2 Comments

Funny how this was kept out of the UK news

Golbal Times: Bank of England governor warns homebuyers of rising interest rates

Governor of the Bank of England (BOE) Mark Carney has warned homebuyers in Britain of the dangers of rising interest rates Thursday.

Posted by mr cobblepot @ 08:17 AM 0 Comments

Coming soon from the Conservatives?

BBC: Hungarian homeless law bans sleeping rough

The Hungarian parliament has passed a law which aims to clear several thousand homeless people off the streets of Budapest and other towns. The government says the law is designed to help the homeless, and that there are enough places in homeless shelters. But critics deny that, and say the law criminalises the homeless, who could face community work, fines or even imprisonment. Those caught sleeping rough in urban areas can be sentenced to community service or a fine, if they either refuse to move on when requested to, or are caught in the same area again. Those who live in shacks in the woods without permission will be imprisoned. "The difference is that this government… is codifying the fact that homeless people are stigmatised, harassed and criminalised"

Posted by khards @ 08:03 AM 3 Comments

Thursday, October 3, 2013

Boomers and NIMBYS now demanding nice little retirement properties for themselves.

Guardian: Retirement homes shortage is the next housing crisis

A total of £400bn is tied up in the homes of over-60s who want to downsize. If more options were available, these people could move and make family homes available for those desperate to get on to the housing ladder. There has been much criticism directed at elderly people recently: they are said to own expensive properties to the detriment of the younger generation. However, older people might well choose to release this stock if more appropriate housing were available. The Demos report claims that helping older people move from under-occupied homes would liberate 3.29m properties, The government recently focused on bungalows as a way to increase the property options for older people. However, old people often prefer to live in central locations close to shops and transport links.

Posted by khards @ 04:10 PM 7 Comments

Fancy paying to renovate your local church?

Planet property blog: Last Rights for Chancel Repair

Time is running out for the Church of England to register its chancel repair liabilities against individual homes. But chancel repair – the legislation dating from medieval times that allows churches to force property and landowners with an historic connection to a church to fund repairs – may yet have a sting in its tail.

Posted by property addict @ 12:26 PM 0 Comments

Annual +6.2%, Month +0.3%

Lloyds: Halifax House Price Index

Average Price £170, 733. "Housing demand has risen more quickly than demand in recent months". (Annual figs based on 3 month data)

Posted by alan @ 09:55 AM 3 Comments

Paul Fisher Feeds the Red Top Commic.

Mirror: Wages to rise and squeeze on family finances to end, claims Bank of England's Paul Fisher

The comedy club are at it today! Wages to rise and squeeze on family finances to end, claims Bank of England's Paul Fisher Fisher also reassured borrowers that the Bank’s base rate won’t spiral when it does eventually increase from the record low 0.5% Paul Fisher said inflation is on the way down and wages will start rising - in welcome relief to millions of cash-strapped households. "Inflation is coming down and wages should be capable of going up, as long as they are justified by what individual firms are doing. “You should have wage growth of 2% to 2.5% above the rate of inflation. That’s normal. We are right at the start of a recovery and we’ve got quite some way to go yet. Things should start to improve, but better for people who’ve got jobs than those who haven’

Posted by khards @ 08:00 AM 135 Comments

Wednesday, October 2, 2013

QE soon in Europe

Reuters: ECB says ready to use any option to temper market rates

Temper means QE in Goldman language. Official rates can't get much lower. At the heart of it all is the banks (agrees James Ferguson of Moneyweek). Merkel will break the sad news to the electorate soon. The last country that tried QE saw its currency slip from 77 yen buying $1 to 100 yen buying $1. Which begs the question, when will the other Goldman protege follow on with QE in the UK? MMnnn, Gold, anyone?

Posted by alan @ 05:27 PM 9 Comments

UK mortgage market on the up despite lending below historic average

Property Buyer Blog: UK mortgage market improving but lending still below historic average

The UK mortgage market has improved significantly but is still well below historic averages new figures have shown. The mortgage market is showing sustainable signs of recovery in the UK with gross lending increasing by 32% annually

Posted by joel desvignes @ 03:12 PM 1 Comments

Return of the London slums.

Independent: Slum UK: housing crisis that shames the nation

Conditions now among worst in Europe, warns major study, while thousands forced to sleep rough as landlords cash in. Housing conditions in Britain are among the worst in Western Europe and cost the nation about £7bn a year by adding to the pressure on the NHS and other public services, according to a major study to be published today. It warns that homelessness is on the rise and predicts the return of unscrupulous landlords like the infamous Peter Rachman, who exploited his London tenants in the 1950s and 1960s. Almost 4,000 people are sleeping rough on London's streets, an increase of 8 per cent since last year. The number of families on waiting lists in London doubled to 362,000 between 1997 and 2010 – and now accounts for more than 20 per cent of the national waiting list.

Posted by khards @ 12:58 PM 41 Comments

Camerons pyramid scheme exposed.

Max Keiser: Keiser Report: Side Effects of Cameron’s Ponzi

We discuss the paradox of negative side effects warnings driving an increase in sales to consumer chumps and how this applies to David Cameron’s economic policy of a housing ponzi scheme. In the second half, Max interviews Satyajit Das, author of Extreme Money, about QE Forever as the Strawberry Fields of our day and about terming out the debt in Europe until eventually we have 99 year loans paying zero percent interest. And, finally, they discuss the reality that we are living in a hedge fund world operating on the tactic that too big to fail banks are now the equivalent to sovereigns.

Posted by khards @ 12:08 PM 3 Comments

Now that's what I call a housing slump

Planet Property: Now that's what I call a housing slump

Designer Alex Chinneck makes clever use of a derelict house. Is he trying to making a point about the housing market?

Posted by the planet @ 11:36 AM 0 Comments

Awesome glass-roofed Richard Paxton house for sale

Planet Property: Awesome glass-roofed Richard Paxton house for sale

Glass is the name of the game here: a huge retractable glass roofl and a custom-made glass swimming pool running alongside the 40ft reception room. Wild.

Posted by the planet @ 11:08 AM 0 Comments

Lenders don't share Cameron's enthusiasm for Help to Buy 2

Myfinances.co.uk: Banks lukewarm over Help to Buy 2

The decision by David Cameron to bring forward the commencement of the second part of the Help to Buy scheme could backfire after it emerged that most banks and building societies have refused to commit themselves to the scheme.

Posted by ben @ 10:38 AM 0 Comments

Natzis strike renters again.

Telegraph: Eviction of tenants at five-year high

The number of tenants being evicted from rental properties is at its highest level in five years, with landlord repossession increasing by more than 9pc in the past year. Tenant evictions for landlord repossession have risen to 36,177 for the year to the end of June, up from 33,199 in the 2011/12. Rising rents on residential property and falling real wages are trends that have been in place for a number of years, and have stretched the finances of an increasing number of tenants to breaking point. With demand for rental property in many local markets outweighing supply and forcing rents upward, the opportunity cost to a landlord of having a property occupied by someone that can’t or won’t pay their rent has increased

Posted by khards @ 08:38 AM 5 Comments

Politicians force partial shutdown

Independent: US's power failure: 800,000 face weeks of unpaid lay-offs.

Total contempt for the electorate! They already know what compromise is necessary but nobody wants to miss their moment of theatre and grandstanding. "On 17 October, the US will hit its federal borrowing ceiling and unless Congress authorises an increase, could default on some debt, risking chaos in global markets" (doncha just lurve that brinkmanship?). But the US banks are like sovereign nations, their interests must be served first by ripping off the population in whatever way they can. So, is this the ultimate power failure?

Posted by alan @ 07:51 AM 0 Comments

Tuesday, October 1, 2013

Mad

AboutProperty: Justifying a £35m demolition

The capital's property market is distinctly odd. But prime central London, the preserve of the super-rich, reached fresh heights this week with the news that a home in Mayfair is being sold for £35m… with planning permission for a demolition.

Posted by phil @ 02:00 PM 7 Comments

What UCAS doesn't tell you...

Planet Property Blog: Brighton named Worst Place to Buy

Only 0.3% of homes in Brighton are within financial reach… An interesting look at the affordability of UK cities for new graduates by Adzuna.co.uk should be compulsory reading for anyone choosing universities. According to Which? at least 40% of graduates who study in a particular region end up staying there to work. But some areas are much higher.

Posted by property addict @ 12:40 PM 1 Comments

If Help To Sell goes ahead, we'd better make sure that Lloyds and RBS are sold off

BBC: Wells Fargo agrees $869m settlement with Freddie Mac

Our carbon copy of Freddie Mac, Help To Sell, will no doubt run into the same problems where banks lie about the quality of their smellier mortgages and the taxpayer ends up on the hook for more risk than planned. If we have the balls to fine lloyds.gov.uk or rbs.gov.uk, hopefully they'll be back in private hands so shareholders can pay up instead of the taxpayer paying a fine to themselves...

Posted by mombers @ 12:12 PM 2 Comments

They think growth's all over! It is now.

Telegraph: Unilever shares slide after profit warning

Unilever shares slid on Tuesday after the consumer goods giant surprised the market with its first profit warning in a decade. The company behind Persil, PG Tips and Dove warned on Monday that a slowdown in emerging markets, where it generates almost 60pc of sales, accelerated in the third quarter. Paul Polman, Unilever's chief executive, sought to allay fears that the recent downturn in emerging markets had become entrenched.

Posted by khards @ 10:38 AM 1 Comments

Worth a read.

Pieria: The illogical pricing of property

The age at which people buy their first house is rising well beyond the age at which they have their first child, and an increasing number of young people are opting either to live with parents or rent instead of buying. The dream that everyone can own their own home is fast dissolving into the reality of unaffordable and unsustainable house prices. In both the US and the UK, people expect property to appreciate. A rise in house prices is greeted with relief, while falling house prices are a cause of worry. But actually this is pretty illogical. Leaving aside the question of the price of land (to which I shall return shortly), there is absolutely no fundamental reason why house prices should rise, either short-term or long term.

Posted by khards @ 08:19 AM 15 Comments

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