November 2013 Archive

Saturday, November 30, 2013

Lots of extrapolation based on record unsustainable debt

Telegraph: Autumn Statement 2013: UK growth upgrade hits record

"The Office for Budget Responsibility (OBR) – the Government’s independent fiscal watchdog – is likely to upgrade its projection for UK growth in 2013 to 1.4pc, from a forecast of 0.6pc in March" (Independent...Responsibility ??? Clowns are playing with numbers). Meanwhile the following will benefit..bankers/politicians/EU officials/wealth managers/pension managers. Same old, same old.

Posted by alan @ 10:39 PM 0 Comments

BTL alive and kicking

Exeter Express & Echo: New student apartments in Exeter sell out as investors snap them up

Unprecedented demand from investors for luxury student apartments in Exeter city centre has led to a new £17m scheme selling out in just seven weeks. All 161 apartments in Vita Student’s Portland House development on Longbrook Street scheme have been purchased off-plan by UK and overseas investors.

Posted by stuartking @ 12:19 PM 2 Comments

Interest rate aren't going anywhere soon

Guardian: Mark Carney warns house buyers: can you afford the mortgage?

The governor of the Bank of England has issued a blunt warning to potential home-owners that they must be able to pay their mortgages when interest rates go up and not rely on being bailed out of any future difficulties by rising house prices ... "Are you going to be able to service that mortgage five years from now, 10 years from now, if interest rates are higher? Or are you counting, even subconsciously, on the price of your house keeping going up and if something happens an ability to sell it quickly and not facing the consequences of not being able to pay?"

Posted by quiet guy @ 01:48 AM 12 Comments

Friday, November 29, 2013

In Cob we trust: Grand Designs mud house for sale for £995,000

Planet Property: In Cob we trust: Grand Designs mud house for sale for £995,000

Kevin McCabe, king of the cob house, has put his mud home up for sale with an asking price of almost £1,000,000

Posted by the planet @ 04:06 PM 0 Comments

Don't say you weren't warned

Project Syndicate: Back to Housing Bubbles

What we are witnessing in many countries looks like a slow-motion replay of the last housing-market train wreck. And, like last time, the bigger the bubbles become, the nastier the collision with reality will be, says Nouriel Roubini

Posted by stuartking @ 11:28 AM 0 Comments

Ten art deco houses for sale

Planet Property: Ten art deco houses for sale

A but of Deco to brighten the day ....

Posted by the planet @ 10:31 AM 0 Comments

Ninby of the week.

Bath Chronicle: Green belt threat as thousands of homes are planned for Bath which are "not needed"

Average bath house price £247,495. Extra homes adding up to a new town the size of Wells are being planned for the Bath area to fund the right number of affordable homes. Campaigners say the Council's draft core strategy proposes 4,000 private sale homes – some eating into the city's green belt – which are Extra homes adding up to a new town the size of Wells are being planned for the Bath area to fund the right number of affordable homes. Campaigners say the homes are not needed. The local authority estimates that it needs 5,437 market-value and 3,290 affordable homes to be built by 2029 so it can meet the demand from a growing population.

Posted by khards @ 10:21 AM 9 Comments

Gross Mortgage Lending Reaches 5 Year High in October

Property Buyer Blog: Total gross mortgage lending increased to £17.6 billion in October

Gross mortgage lending has reached a five year high for the month of October according to new research. The research, taken from the Council of Mortgage Lenders, shows that mortgage lending has risen from £16.2 billion in September, marking a 9% rise over the month. Additionally, mortgage lending is 37% higher than it was in October last year.

Posted by joel desvignes @ 10:02 AM 0 Comments

Yo ho ho

Nationwide: House prices rise by 0.6% in November

UK house prices increased by 0.6% in November and were 6.5% higher than November 2012 House prices around 6% below 2007 peak

Posted by sibley's b'stard child @ 09:53 AM 0 Comments

Thursday, November 28, 2013

Help to Buy to launch in Wales

TurnKey Mortgages: Help to Buy to launch in Wales

Help to Buy Cymru, a shared equity scheme to help Welsh homebuyers, will launch in January 2014.

Posted by ben @ 04:54 PM 0 Comments

Signs the BoE finally getting worried about the housing bubble?

MoneyWeek.com: Is Carney pulling the rug out from under the housing market?

Mark Carney has taken everyone by surprise by acting to slow down the UK housing market. Ed Bowsher explains what he’s done, and what it means for you.

Posted by andrew.williams @ 04:48 PM 0 Comments

Proof that you can have a bubble without credit (non leveraged)

CNBC: Bitcoin is tulip mania 2.0—not gold 2.0: Schiff

The Winklevoss twins may say that bitcoin resembles "gold 2.0," but CEO of Euro Pacific Capital and Peter Schiff says the somewhat mysterious online currency more closely resembles tulip mania 2.0. "A bubble is a bubble," he said. "And there's a bubble in bitcoins." Schiff was responding to comments made by Tyler and Cameron Winklevoss, who have invested a great deal in bitcoins and are attempting to start a bitcoin exchange-traded fund.

Posted by khards @ 03:59 PM 4 Comments

First Property Price Fall In 8 Months

BestPricePaid Blog: First Property Price Fall In 8 Months

According to land registry figures, property prices in the UK have had their first drop in value since we seen the start to a steady rise almost 8 months ago.

Posted by bestpricespaid @ 03:08 PM 0 Comments

More good news

BBC News: House prices in monthly fall, says Land Registry

"House prices in England and Wales have fallen by 0.2% between October and November, according to the Land Registry" Wait till 6 months from now, now that the FLS artificial has been removed. All those banks that treated their customers like **** of their shoe will be laughing on the other side of their face now.

Posted by thecountofnowhere @ 12:35 PM 0 Comments

BoE reduces mortgage lending support scheme

Sky: Bank Acts To Curb Debt Risks To Economy

The Bank of England has taken its first major step to clamp down on rising house prices and ballooning household debt levels, cutting the incentives for banks to lend to consumers.

Posted by mountain goat @ 12:01 PM 21 Comments

Would the DM adopt the same tone for illegal Bulgarians living in Cheltenham?

Mail: The 100,000 British expats whose Spanish homes could be bulldozed any day

"These protesters have come from miles around to discuss the next stage in their fight against the Spanish authorities which want to demolish their villas. The majority have spent their life-savings on properties which, unbeknown to them at the time of purchase, were built illegally". (Illegal brits in Spain not the same as illegal Bulgarians over here?)

Posted by alan @ 08:58 AM 4 Comments

Wednesday, November 27, 2013

Boris'€™s housing plan needs the rest of us to feed the beast

Pieria: Boris'€™s housing plan needs the rest of us to feed the beast

London'€™s population is increasing rapidly and forecasts say this growth is set to continue over the next decade and more. However, the last time the capital had enough new houses to match this rate of population growth was the 1930s. Homes are becoming less affordable; needs and aspirations are going unfulfilled. London has a housing problem of serious dimensions.

Posted by m @ 12:06 PM 0 Comments

9 million in serious debt

Dailymail: 9 million in serious debt trouble

that's an awful lot of the working population and it seems the problems of debt cannot be just kicked down the road it seems certain there is no real recovery and credit crunch 2 can't be far away

Posted by taffee @ 11:55 AM 5 Comments

Tuesday, November 26, 2013

Thousands of buy to let homes face council selective licensing

Property Tax for Landlords: Thousands of buy to let homes face council selective licensing

Councils are queuing up to license tens of thousands of buy to let homes across the country after a successful selective licensing pilot scheme in London

Posted by steve sims @ 07:04 PM 0 Comments

A brighter future for buy to let?

The Lending Revolution: A brighter future for buy to let?

A look at the Tenant's Charter and the role the buy to let mortgage industry needs to play in creating a sustainable, high-quality rental sector which offers choice, security and stability to the UK's growing number of renters.

Posted by ben @ 03:53 PM 0 Comments

I have a bad credit history... can I still remortgage?

TurnKey Mortgages: Can I remortgage with a bad credit history?

If your credit history is less than perfect, you may require some help from a mortgage adviser to find, and be approved for the right remortgage product for your circumstances.

Posted by ben @ 03:51 PM 0 Comments

Article by Merryn Somerset Webb about how landlords have an unfair advantage

MoneyWeek: The unbeatable tax advantage landlords have over first-time buyers

Our tax system massively favours buy-to-let property buyers over those looking to secure their first home, says Merryn Somerset Web.

Posted by andrew.williams @ 03:39 PM 0 Comments

Kicking the can down the road really did put lipstick on a pig

Reuters: A new wave of U.S. mortgage trouble threatens

U.S. borrowers are increasingly missing payments on home equity lines of credit they took out during the housing bubble, a trend that could deal another blow to the country's biggest banks.

Posted by mark @ 03:02 PM 7 Comments

Yet another reason to scrap Help to Sell

Vox: Dark side of housing-price appreciation

Higher asset prices increase the value of firms’ collateral, strengthen banks’ balance sheets, and increase households’ wealth. These considerations perhaps motivated the Federal Reserve’s intervention to support the housing market. However, higher housing prices may also lead banks to reallocate their portfolios from commercial and industrial loans to real-estate loans. This column presents the first evidence on this crowding-out effect. When housing prices increase, banks on average reduce commercial lending and increase interest rates, leading related firms to cut back on investment.

Posted by stuartking @ 02:50 PM 2 Comments

LVT & cheap central London accommodation - it'll never happen

Moneyweek: A massive opportunity in Central London – but no one’s taking it

London has a huge, neglected resource that could generate billions in business, and alleviate many of the city's housing and congestion problems. Why don't we make more use of it?

Posted by frizzers @ 11:20 AM 2 Comments

Latest excuse from lenders (CML)

BBC: Payday loan 'risk to mortgage applications'

"Taking out a payday loan could endanger people's chances of getting a mortgage whether or not they had difficulties repaying the cash, the BBC has learned". "The trade body that represents PayDay lenders, the Consumer Finance Association, said it would look at whether customers should be warned about the consequences before they take out a payday loan". (..but many PayDay lenders don't belong to this august body!).

Posted by alan @ 11:05 AM 0 Comments

Farmer builds one-bedroom home from mud, clay, and materials found in a skip -

Yahoo news: The house that £150 built

Michael Buck's extraordinary property has no electricity, but was made with his own bare hands using ancient building techniques for under £150

Posted by dweller @ 01:58 AM 0 Comments

Monday, November 25, 2013

HMRC spies on suspected landlord tax cheats with Google images

Property Tax for Landlords: HMRC spies on suspected landlord tax cheats with Google images

Tax inspectors are spying on suspected property investor tax cheats with Google Street View to check their declared income matches their lifestyle and earnings declared on tax returns

Posted by steve sims @ 07:49 PM 0 Comments

Call to scrap £5 billion of landlord tax reliefs

Property Tax for Landlords: Call to scrap £5 billion of landlord tax reliefs

Scathing think-tank report urges government to scrap £5 billion of tax reliefs for landlords, claiming tax evasion by landlords is estimated at £550 million each tax year – and suggest this may even be an under estimate.The report also points out in the 2012-13 tax year, 617 landlords were prosecuted for criminal tax evasion offences.

Posted by steve sims @ 07:45 PM 0 Comments

Clueless, greedy Banksters, actually

BBC: Was RBS brutal, overwhelmed or both?

"RBS and HBOS pretty much were the boom in commercial property before the crunch. If you include construction lending, around 80% of all RBS's lending in the five years to 2008 had a property element"....." this whole sorry saga may have highlighted (again) is how poisonous it is for British business and the British economy that there is so little choice when it comes to the provision of banking services and credit for smaller companies". It's called Too Big To Fail, and needs breaking up.

Posted by alan @ 10:27 AM 2 Comments

Jeff (Sledgehammer) Randall tells it like it is!

Telegraph: Help to Buy is nothing but an election ploy

The HTB scheme is designed, it seems, almost entirely to please those with a prurient interest in house-price bubbles: builders, estate agents and local solicitors. It is nothing more than populist, short-term electioneering posing as a cure for Britain’s chronic, long-term housing headache.

Posted by nomad @ 10:04 AM 11 Comments

Another negative interest rates story

Zero Hedge: Banks Warn Fed They May Have To Start Charging Depositors

The Fed's Catch 22 just got catchier. While most attention in the recently released FOMC minutes fell on the return of the taper as a possibility even as soon as December but they propose reducing interest rates to zero or negative to off-set the reduction in liquidity,,,,, After all, the Fed's policy book goes, if IOER is raised to tighten conditions, easing it to zero, or negative, should offset "tightening financial conditions", right? Wrong. As the FT reports leading US banks have warned the Fed that should it lower IOER, they would be forced to start charging depositors. (Charging depositors is the equivalent of negative interest rates)

Posted by libertas @ 02:30 AM 5 Comments

Sunday, November 24, 2013

Student debt minced and reformed as a mortgage

Reuters: UK to sell off 900-million-pound student loan portfolio

"The British government will announce on Monday it has agreed a deal to sell off a portfolio of student loans worth 900 million pounds, Sky News reported tonight, quoting people close to the situation. The loans will be offloaded to an unnamed private debt collection agency, Sky said, saying they would be sold for tens of millions of pounds, "a fraction of the debts' face value". "The deal would encompass mortgage-style loans made in the 1990s, the last of their kind still in public ownership, but not include income contingent repayment loans of the kind currently on offer". ...Just a matter of time before these sleaze bags increase the interest rates and we betray our youth (again). "Outstanding student loans have a face value of roughly 40 billion pounds".

Posted by alan @ 09:13 PM 8 Comments

Saturday, November 23, 2013

Bbb..But you can't arrest a Banker, can you?

Reuters: British police arrest former Co-op Bank chairman in drugs probe

At last the plod have arrested the former chairman of the Co-operative Bank as part of an investigation into the supply of illegal drugs, ratcheting up pressure on the 141-year-old bank as investors mull plugging a £1.48 billion capital shortfall. Followers of the case will recall the pictures in last week's Sunday newspapers.

Posted by alan @ 05:09 PM 5 Comments

More than 2 million households have been left behind by the credit crunch

Planet Property: More than 2 million households have been left behind by the credit crunch

Over 500,000 UK households a year have failed to move onto or up the housing ladder since 2009, according to new analysis from Savills. The report, which compares transaction levels in an extended period running up to the peak of the market in 2007 and post credit crunch levels, shows a shortfall of 527,000 transactions a year. Of those excluded from market activity through lack of credit, some 200,000 households a year would have been first-time buyers.

Posted by the planet @ 04:47 PM 0 Comments

Sarah on another ramping campaign

Express: It's time to bag a bargain before house prices soar

Anyone really believe...."House hunters can snap up a ­bargain in the run-up to Christmas, say property experts, because the market is set to continue booming next year"? I'm sure those 1% Christmas pay rises for non-bankers will help a lot!

Posted by alan @ 02:54 PM 4 Comments

Poor Homeowners bled dry by a government with no ideas

Telegraph: Britain has highest property taxes in the developed world

"Income from the country’s taxes on commercial and residential property - including business rates – are worth 4.1pc of GDP, more the twice the average of the 34 countries in the Organisation of Economic Co-operation and Development". We offshored all the real jobs years ago and sat on our bottoms waiting for our "investment" to grow. The tone of the article blends perfectly with "Hands off our semi" :-)

Posted by alan @ 02:49 PM 2 Comments

Friday, November 22, 2013

Qualifications and merit are what supposedly counts

Independent: The rise of Paul Flowers offers a textbook example of cronyism

I've been going on about crony bankers for ages. Now it's in print, maybe people will start to wake up. "The plight of the Rev Paul Flowers, former chairman of the Co-operative Bank, prompts tears and laughter in almost equal measure. The headlines – combining the Methodist minister, his bank and hard drugs – have provided some of the most entertaining and improbable copy since the first revelations of David Blunkett’s affair". "How much longer do we have to listen to clipped accents promoting the Rolls-Royce machine that is supposedly our top Civil Service as a model for public administration the world over? " It's not just rubbish staff at the NHS in Stafford or clueless BBC executives, is it?

Posted by alan @ 05:32 PM 3 Comments

Quick, buy more tat for Christmas

Independent: £1,430,000,000,000: Britain's personal debt timebomb

"Average household debt is now £54,000 - double the level a decade ago, despite record low interest rates, and ministers fear that failure to pay back loans and credit will leave thousands at risk of losing their home". MAXED OUT, as they say. No doubt following the example of our wonderful Coalition?

Posted by alan @ 01:49 PM 0 Comments

Retaliatory eviction - your tenant's rights

TurnKey Landlords: Retaliatory eviction - your tenant's rights

An online community claims that a third of tenants have suffered retaliatory eviction. Could this be correct? Read our article to find out about your tenant’s rights.

Posted by ben @ 01:02 PM 0 Comments

Sussex nuclear bunker for sale for £14,995

Planet Property: Sussex nuclear bunker for sale for £14,995

Built during the Cold War for the Royal Observer Corps (ROC) to report nuclear explosions and monitor fall-out.

Posted by the planet @ 12:47 PM 0 Comments

14th Century Castle on Isle of Bute for sale

Planet Property: 14th Century Castle on Isle of Bute for sale

A castle on an island. What's not to like .. aside from the weather...

Posted by the planet @ 12:30 PM 0 Comments

We are not in a bubble

Estate Agent Today: London house price boom is outstripping 2007 bubble, claim

Prices in London are now 15.9% higher than in November 2007 – but with house prices rising at a faster rate. The property website Home says that annual growth in the capital is now well ahead of 2007. In November 2007, the average London house price was £351,549, up 10.8% on the previous year. In November 2013, the average London house price is £407,354, up 13.5% on November last year.

Posted by sibley's b'stard child @ 11:18 AM 15 Comments

Renting a property in London is cheaper than buying

Property Buyer Blog: Renting more affordable than buying property across most of London

Renting a property is cheaper than buying across most of London the latest index has found. The index report from Countrywide has shown that renting a property is cheaper than buying in 31 of the 32 London boroughs, mainly due to the significant house price rises in the area over the last year. The data also shows that it is 10% cheaper to rent in 23 of the 32 boroughs, an increase on the figure from November last year.

Posted by joel desvignes @ 10:34 AM 0 Comments

Cannot repay territory

ITV: Britain's vast public debt climbing at a slightly slower rate

"Today we learned the government added another eight billion pounds in October alone. Yet oddly, there is good news to be found in the mind-boggling numbers" . There are around 25 million workers private and public. The increased debt in October alone is 320 pounds per worker, more for a family with two taxpayers. I don't believe that the bottom half can cover these debts for an extended period because they are already struggling, and when they get lumped up the tax paying chain, I think they progressively overload peoples ability to pay. So interest rates are for sure going to be low. Low interest rates or default. "3 years in to a 15 or 20 year repayment period" was another pithy line, thanks Labour!

Posted by stillthinking @ 07:57 AM 9 Comments

Bubble trouble?

Zero Hedge: OECD Warns UK Faces Housing Bubble

The U.K. faces a housing-market bubble unless the government boosts the supply of new homes, the OECD warned yesterday. U.K. home values have climbed 36.6% since 2004, the seventh-biggest rise among OECD nations and back near their 2007/8 bubble highs. The Bank of England said last week mortgage approvals had surpassed 60,000-a-month six months earlier than it had predicted. As Bloomberg's Niraj Shah notes, while the OECD raised its forecasts for U.K. economic growth, it said risks to the recovery include “vigorous” house-price increases that may curtail affordability. We are sure this will all end well - a speculative real estate bubble as the key driver of nominal economic growth? What could go wrong?

Posted by libertas @ 12:16 AM 0 Comments

Thursday, November 21, 2013

Aaargh!!

Bloomberg: ECB Said to Consider Minus 0.1 Percent Deposit Rate

How do central bankers get out of this pickle. World War III anybody? For the Bank of England, this presents a major headache, because signs of strength here vs potentially negative rates over there could cause Sterling to rise. Of course, this is great for the domestic economy, as we can afford more stuff and petrol, etc. becomes cheaper, but it is bad for international corporations who wish to sell cheap tat for nothing. A strong currency never did the Swiss any wrong, but we are all globalists now, right?

Posted by libertas @ 11:03 PM 5 Comments

Remortgaging explained

TurnKey Mortgages: Remortgaging Explained

Since September 2012, there has been a 29% increase in the number of remortgages approved, showing that even if you were turned down a year ago, you may have better luck this time around.

Posted by ben @ 01:37 PM 0 Comments

Win win for Osborne & chums so far!

Mail: House price rises gift £400m to Osborne: Public borrowing falls £200m as stamp duty revenue leaps 46%

Stamp duty revenues were up by £400million compared to a year earlier to £1.2 billion - a rise of 46 per cent - as the property market continued to boom, spurred by Government initiatives such as the Help to Buy scheme.

Posted by happy mondays @ 01:14 PM 3 Comments

BestPricesPaid Blog: UK Property Professionals Predict Further House Price Rises For 2014.

BestPricesPaid Blog: UK Property Professionals Predict Further House Price Rises For 2014.

We only have one month to go before we hit the New Year, but what will 2014 bring to the table as far as house prices are concerned? Industry experts are predicting we will see a continued growth in the market. Reported in the Telegraph today property prices have been estimated to have risen by 3.5 to 6%, depending on which statistics you look at.

Posted by david sessford @ 10:12 AM 1 Comments

Half of First Time Buyers Need Help With Saving For A Deposit

Property Buyer Blog: Over half of first time buyers in the UK need help saving for deposit

The majority of first time buyers in the UK need help saving for a deposit new research has found. According to the Annual First Time Buyers research report from Clydesdale and Yorkshire banks, 63% of first time buyers need financial support in order to secure their first home with 50% looking to their parents for help. Some 28% opted to apply for a loan and 22% received their deposit for a home as a gift from a family member or parent. The research indicates that many first time buyers still face a challenge when saving for a deposit.

Posted by joel desvignes @ 09:24 AM 0 Comments

Wednesday, November 20, 2013

Interest rates never to rise again

FT: Bank of England’s Monetary Policy Committee eases rate rise fears

In case those borrowed to the hilt are worried, the BoE has words of comfort. Just because they say they may raise rates doesn't mean they will. Falling wages, deflation and sky high asset prices are the future. A 21st century economy for all - except for most. [Search title in google to view]

Posted by letthemfall @ 01:27 PM 12 Comments

Bad mortgages, bad loans and even worse management

Guardian: Co-op Group's root and branch review should have taken place decades ago

"Management by committee – or rather dozens of committees – bred a culture of cliques and cronyism. "Manifestly unsuitable" – Treasury select committee chairman Andrew Tyrie's description of Flowers – applied even before the hard drug, and now pornography, allegations. The PRA must explain why it didn't intervene". ..and now the Chairman has resigned. Didn't anyone tell Tyrie that nothing has been done to reform banks and banksters since the last disaster in 2008?

Posted by alan @ 12:58 PM 0 Comments

Rundown 50s bungalow transformed by Hut Architecture

Planet Property: Rundown 50s bungalow transformed by Hut Architecture

A very tasty makeover of a tired 50s bungalow ... appeared on Channel 5's “I Own Britain’s Best Home", and Beeny's "Double Your House for Half The Money".

Posted by the planet @ 12:44 PM 1 Comments

TurnKey Mortgages newsletter issue 7

TurnKey Mortgages: Mortgages Newsletter issue 7

The latest edition of the TurnKey Mortgages newsletter.

Posted by ben @ 12:26 PM 0 Comments

Landlords Newsletter 7

TurnKey Landlords: TurnKey Landlords Newsletter issue 7

The latest edition of the TurnKey Landlords newsletter.

Posted by ben @ 12:25 PM 0 Comments

What is a CP12?

TurnKey Landlords: What is a CP12?

Frequently asked questions about the CP12, or Landlord's Gas Safety record.

Posted by ben @ 12:21 PM 0 Comments

Downsizing begins at 40

Planet Property: Downsizing begins at 40

It used to be a retirement option; now it's being done to pay the bills ....

Posted by the planet @ 11:58 AM 0 Comments

UK Housing Crisis: How to break out of the vicious land market trap and deliver more homes, more che

Pieria: UK Housing Crisis: How to break out of the vicious land market trap and deliver more homes, more cheaply

To solve the UK’s housing crises we need more genuinely affordable options. Toby Lloyd investigates the challenges and suggests a solution which will meet people’s need for a decent home and enable the development industry to move to a higher output equilibrium.

Posted by m @ 10:58 AM 0 Comments

Average overpayment is £181pm

Myfinances.co.uk: Brits make £9 billion in mortgage overpayments every year

Britons are making over £9 billion in mortgage overpayments every year, according to recent research by Santander Mortgages.

Posted by ben @ 10:46 AM 0 Comments

Yorkshire BS says no need for it to be a part of Help to Buy

Myfinances.co.uk: Yorkshire launch 5% mortgages that undercut Help to Buy deals

The Yorkshire Building Society is taking on lenders who are offering five per cent mortgages through the Help to Buy scheme in the battle to attract first-time buyers. The Yorkshire BS is using a number of its intermediaries including Yorkshire, Barnsley, Chelsea and Norwich and Peterborough Building Societies and Accord Mortgages to offer cheaper five per cent mortgage deals in a bid to undercut the competition. Many of the rates are slightly cheaper than the initial products unveiled through the Help to Buy scheme.

Posted by ben @ 10:45 AM 0 Comments

Tuesday, November 19, 2013

Transactions are 39% lower than 2007

Planet Property: Transactions are 39% lower than 2007

Cumulative annual house price growth since 2007 has been 11% (less than inflation) and transactions are 39% lower than the market at its peak

Posted by the planet @ 04:28 PM 0 Comments

Governments only have one answer which is to PRINT MONEY!

Market Oracle - Nadeem Walayat: UK House Prices Boom Propelling GDP Economic Growth to Above 3%, Interest Rates Pressure Cooker

Nadeem believes that by the time unemployment falls below 7% that inflation will be at 7% and he sees 4.5% interest rates by end of 2014 combined with a multi-year housing boom. He claims that rates at 4.5% would not harm the housing market because they would simply normalise rates. That may well be true, since many folk took out mortgages 5 years ago at 4.5% and rates were at 0.5% when prices were falling. In a private sector bull, rates rise on confidence because they are the response to higher demand. He claims that mortgage costs rising by ⅓ will not affect sentiment if house prices are rising faster than what people earn, but does speak of a sub-prime bubble emerging from help to buy. Fundamental to his analysis is his observation of an inflation mega trend with UK CPI exponential.

Posted by libertas @ 06:36 AM 5 Comments

Free lunch about to be over?

Telegraph: Thousands of Britons caught up in tax raid on wealthy foreigners

George Osborne is preparing to announce that capital gains tax will be charged on British property sold by overseas nationals and expats.

Posted by captain tightwad @ 12:05 AM 4 Comments

Monday, November 18, 2013

New article by Merryn Somerset Webb about how banks are inflating the housing bubble

MoneyWeek: One bet on house prices you really don’t want to take

While the reappearance of the shared appreciation mortgage is intriguing in itself, MoneyWeek's Merryn Somerset Webb explains why she wouldn't touch it today.

Posted by andrew.williams @ 03:43 PM 0 Comments

Bank of England Systemic Risks Survey

MortgageStrategy: BoE survey shows growing fears over future house price crash

Fears that a future house price crash could damage the financial system have risen sharply in the last year, a key Bank of England survey shows. The Bank’s twice-yearly Systemic Risks survey of 76 financial services firms shows 36 per cent believe falling prices are a key risk, compared to just 14 per cent in the second half of 2012.The report states: “Concerns were concentrated almost exclusively on the residential market, where responses focused on the risk of a house price correction, with several respondents citing the risk of a bubble emerging in the near term.” Firms also identified the low interest rate environment as dangerous with 43 per cent claiming it is a key risk, compared to just 9 per cent last year.

Posted by jack c @ 03:10 PM 19 Comments

Pre-Christmas falling trend means asking prices fall by 2.4%

Myfinances.co.uk: UK property asking prices down by £6,000 in November

Rightmove reports that the second stage of the Help to Buy scheme has failed to alter the normal trend of declining asking prices for property in the run up to Christmas. Rightmove reports that new sellers’ asking prices fell by 2.4 per cent or £6,181 in November, taking the average price down to £246,237 from October’s figure of £252,418.

Posted by ben @ 01:39 PM 0 Comments

Reading best for quality of life

Myfinances.co.uk: Reading is top city for growth in the UK

British people will be better off living in Reading, according to the new Good Growth Index by PwC and think-tank Demos.

Posted by ben @ 01:38 PM 0 Comments

Remove Stamp Duty and inflate house prices further, say Conservative MPs

BBC News: Stamp duty should start at £500,000, say Conservative MPs

"Stamp duty should be scrapped on all homes worth less than £500,000, a group of Conservative MPs has recommended. The Free Enterprise Group is also calling for the threshold at which people start paying higher-rate income tax to increase to £50,000. The MPs argue that middle-income households need more help to improve standards of living and that government can make more efficiencies. The stamp duty change would save taxpayers £2.4bn, they say." Of course then the non-home buyers would suffer because they would have to make up the £2.4bn deficit. And the home buyers would suffer because this would force up house prices by a huge multiple of the stamp duty they no longer have to pay. Great policy - everyone loses except landlords and second home owners (eg MPs).

Posted by orcusmaximus @ 12:42 PM 10 Comments

A question that cannot be answered

Telegraph: Help to Buy will distort housing market, warn bank chiefs

Britain's biggest banks have warned the Chancellor that the lack of an end date to his flagship Help to Buy programme could cause serious distortion in the housing market. The Daily Telegraph has learnt that as part of its submission before the Autumn Statement, the British Bankers’ Association (BBA) has warned George Osborne he needs to set out how and when the scheme will end. The association, which represents the UK’s largest banks, including Barclays, HSBC and Lloyds Banking Group, has said that clarification is needed on exit strategies.

Posted by quiet guy @ 12:14 PM 3 Comments

Russian roulette with no empty chambers!

Mail: Property asking prices rising at fastest rate for six years as lenders warn Help to Buy will distort market

Property asking prices rising at fastest rate for six years as lenders warn Help to Buy will distort market

Posted by happy mondays @ 11:16 AM 4 Comments

UK needs 'clear exit strategy' from Help to Buy

TurnKey Bridging: UK needs 'clear exit strategy' from Help to Buy

The government’s controversial mortgage guarantee scheme, Help to Buy part two, attracted criticism from the Council of Mortgage Lenders Chairman Nigel Terrington, who described it as a ‘short-term fix’ at a London mortgage conference last Wednesday.

Posted by amelia @ 11:03 AM 0 Comments

RICS data suggests 11-year high in UK house prices

TurnKey Mortgages: RICS data suggests 11-year high in UK house prices

The latest figures from the Royal Institute of Chartered Surveyors (RICS) have drawn attention to ‘soaring demand’ for new homes, and the Institute has called for urgent action to address the imbalance between supply and demand in order to avoid another property bubble.

Posted by amelia @ 11:01 AM 0 Comments

Two fifths of landlords would struggle with rent arrears

TurnKey Landlords: Two fifths of landlords would struggle with rent arrears

The National Landlords Association (NLA) recently surveyed 2,000 landlords and tenants and discovered that two fifths of landlords (some 40%) earn just enough from their rental property to break even.

Posted by amelia @ 10:56 AM 1 Comments

Is Help to Buy damaging the PRS?

TurnKey Landlords: Help to Buy hurting demand for private lettings

The latest Royal Institute of Chartered Surveyors (RICS) survey has shown that demand for private lettings decreased in October, with Help to Buy – the latest government scheme to boost mortgage lending – a likely candidate for the cause. RICS reported that 57% of the members surveyed reported increasing house prices – the highest proportion in 11 years. However, only 11% reported increasing demand for private lettings, which marks a 10-year low in tenant interest.

Posted by amelia @ 10:55 AM 0 Comments

Rates go down but fees go up - BTL Mortgages

TurnKey Landlords: Buy to let rates low, but fees still a sting in the tail

A leading buy to let lender has recently cut the rates on its two-, three- and five-year fixed rate deals; to 2.79%, 3.49% and 3.89% respectively.

Posted by amelia @ 10:54 AM 0 Comments

Petition to Scrap the Help to Buy policy

HM Government e-petitions: Scrap Help To Buy as it is a cynical, reckless and manipulative use of public money

"If the government genuinely wants to pursue the laudable aim of encouraging house-building, there are far more fair, sensible and efficient ways to do so, including reforming the planning and tax systems to discourage landbanking, as suggested by the IMF, one of the myriad critics of this cynical attempt to buy votes."

Posted by scraphelptobuy @ 10:45 AM 2 Comments

Central bankers now see negative rates in their grasp

Armstrong Economics: Negative Interest Rates & Eliminating Cash – The Summers’ Solution

Armstrong states that it is high taxes that have caused people to stop investing and spending. For example, get rid of stamp duty and more people will buy and sell houses. Eliminate VAT and more people will go to the shop, but since government feed on taxation, they ignore it as a factor. Instead, Armstrong notes a speech from Larry Summers stating that if another recession comes soon that they must take interest rates into negative territory, but to achieve that they must have electronic currency and no cash, so folk cannot hoard cash to avoid interest charges, but of course instead, they would buy property, gold, stocks, anything tangible outside the banks, and they will not consider reducing taxes and regulations.

Posted by libertas @ 07:44 AM 4 Comments

Saturday, November 16, 2013

Here is the weather

Guardian: Mortgage rates: that rainy day is coming soon

"Those taking up Help to Buy in London and the south are taking an extraordinary risk purchasing at a time when prices, by almost all measures, are at historic highs."

Posted by letthemfall @ 04:29 PM 13 Comments

Another day, another housing bank fraud

Guardian: JP Morgan to pay £2.8bn to settle claims by investors

"The bank has reached agreement with 21 institutional investors in 330 residential mortgage-backed securities trusts". isn't Bliar still a director of this bunch of banksters? For JP Morgan, it seems like going before court is just an occupational hazard for sleazy Banksters. Nobody gets imprisonment...what do you expect these days?? BTW, be careful where you drop your cigarette butt, it's a different law for you!!

Posted by alan @ 01:11 PM 0 Comments

Friday, November 15, 2013

Lots of people are switching to Nationwide

Reuters: Nationwide throws down gauntlet to top UK banks

"Nationwide, Britain's biggest customer-owned lender, said first-half profit more than doubled and it was picking up business from all major competitors, rejecting suggestions that problems at rival Co-op showed mutuals could never take on top banks". Some of the ex-Building Societies have deteriorated badly...Halifax comes to mind.

Posted by alan @ 01:11 PM 0 Comments

From the horse's mouth: QE is a scam

Wall Street Journal: Confessions of a quantitative easer

Andrew Huszar, responsible for the Fed's massive bond-buying programme says "I can only say: I'm sorry, America. As a former Fed official, I was responsible for executing the centerpiece program of the Fed's first plunge into the bond-buying experiment known as (QE). The central bank continues to spin QE as a tool for helping Main Street. But I've come to recognize the program for what it really is: the greatest backdoor Wall Street bailout of all time." "Fed managers began voicing the concern that QE wasn't working...Our warnings fell on deaf ears." He had worked for the Fed before but had "left...out of frustration, having witnessed the institution deferring more and more to Wall Street"

Posted by icarus @ 12:34 PM 2 Comments

Let's Financialise Home Ownership and Get Into More Debt

Telegraph: High mortgages at heart of housing market problems, says BoE's David Miles

"BoE policymaker David Miles (suggests) allowing external investors to take an equity share in home purchases". The answer to over indebtedness is ...wait for it...More Debt!

Posted by alan @ 09:56 AM 8 Comments

Thursday, November 14, 2013

The economics of renting - No?

Sky: MPs In £3.6m 'Back Door' Funding Scandal

"MPs have spent more than £3.6m of taxpayer money renting constituency offices from their own political parties, it has emerged". "Sir Ian Kennedy, the Ipsa chair, said:"Transparency is crucial to re-building trust in politics, and making sure public debate is built on a foundation of facts". "Among the 244 are Deputy Prime Minister Nick Clegg, Iain Duncan Smith and... (the usual suspects)". Golden rule: don't get caught! Amazingly, this lot are just in the process of adding to police powers to arrest joe public for demonstrating. I can't think why ???

Posted by alan @ 08:49 PM 0 Comments

The 'inevitability of low wages' lie

The Guardian: Want free trade? Open the medical and drug industry to competition

Western workers are on low wages because they compete with workers in developing countries. True or false? Well, it just depends on who's making those trade deals. Why aren't doctor's and dentist's salaries and drug prices lowered by competition? Because their political clout in "free" trade deals prevents it. And the clout of corporations in such deals overrides health and environmental regulations and costs and facilitates the setting up those low-cost factories in China.

Posted by icarus @ 06:27 PM 3 Comments

Rates of 4-5% is the new normal

Daily mail: Expect rates of 4-5%

looks like rates have almost certainly going to be on the rise...god help anyone with a big mortgage. How things can change

Posted by taffee @ 02:26 PM 3 Comments

Prices to rise by 7% in 2014: Knight Frank

Planet Property: Prices to rise by 7% in 2014: Knight Frank

Knight Frank predict average price rises of 7% in 2014 as price rises ripple outwards from central London to the outer boroughs and the south

Posted by the planet @ 02:10 PM 0 Comments

Chesterton Humbert predict price rise of 8.2% in 2014

Planet Property: Chesterton Humbert predict price rise of 8.2% in 2014

Estate agents Chesterton Humbert release their forecast for 2104, and beyond ...bubble? what bubble? (cough)

Posted by the planet @ 01:17 PM 0 Comments

Converted boiler house for sale

Planet Property: Converted boiler house for sale

Fancy living i n a converted boiler house? Yours for £1,295,000!

Posted by the planet @ 11:55 AM 1 Comments

Barratt profits as houses shrink, but don'€™t blame the builder

Pieria: Barratt profits as houses shrink, but don'€™t blame the builder

The UK has some of the smallest new homes in Europe, often criticised for their poor design. So is this a clear example of corporate profiteering? Not quite.

Posted by m @ 10:08 AM 0 Comments

Wednesday, November 13, 2013

The Number of Properties For Sale At A Discounted Rate Has Fallen

Property Buyer Blog: Number of UK properties for sale at a discounted price falls

Research has shown that fewer properties for sale are on the market at a reduced price indicating that confidence in the market has grown over the past few years. A report released by property website Zoopla has shown that fewer properties have had their asking prices reduced since first going on the market. Only 31% of properties have had their asking prices sliced whereas this figure was 40% in November 2011. London has the lowest proportion of discounted properties on the market with Preston topping the list of places with the most discounted properties.

Posted by joel desvignes @ 03:47 PM 0 Comments

Devon village for sale for £10 million

Planet Property: Devon village for sale for £10 million

Bantham in south Devon, popular with the rich and famous, is to be sold off by current owners Evans Estate

Posted by the planet @ 03:26 PM 0 Comments

Tenant wanted for Lake District island home: £40,000 per year

Planet Property: Tenant wanted for Lake District island home: £40,000 per year

Derwent Island House, set on a seven acre heart-shaped island in Cumbria, is up for rent for £40,000 per year. The milk is currently delivered by canoe ....

Posted by the planet @ 03:11 PM 0 Comments

Early interest rates rise

Daily mail: Interest rate rise in 2014?

whatever your view,its almost certain that interest rates are going to rise from here on in,what happens afterwards is almost certainly a crash in prices,however, rates may be reduced again BUT the cat will be out of the bag that property is totally overpriced,probably by 50% or more in parts of the country(London)

Posted by taffee @ 01:04 PM 13 Comments

Saving for a house deposit?

Telegraph: Rates slashed for a million RBS/NatWest savers

"More than a million savers with Isas at Royal Bank of Scotland and NatWest face drastic cuts to their interest rates in January, while two million on low-return deals will receive a boost".

Posted by alan @ 10:00 AM 1 Comments

Tuesday, November 12, 2013

Poorer by the day - Zero change of paying off those stoking £100,000's mortgages and the interest.

The Guardian: Business Economics UK unemployment data: 0.7% average pay rise dwarfed by inflation

ONS data shows annual pay rise barely over a quarter of inflation rate, as unemployment falls 18,000 to 2.49 million Britain's nascent economic recovery is yet to be felt in workers' pockets, with wages rising at a paltry 0.7% in the year to August while prices grow almost four times faster. Unemployment declined by 18,000 in the three months to August, to 2.49 million, according to the latest official snapshot of the labour market, and the number of people in work hit a fresh record high of 29.87 million people. Does logic not dictate that if people are forced into work by cutting their benefits, then it will reduce the price of labor. Well done Cameron you w@nker --->> this time next year we will have wage deflation!

Posted by khards @ 07:56 PM 2 Comments

This should wake things up a bit!

Reuters: China vows "decisive" role for markets, results by 2020

"The self-imposed deadline for progress - rare for Beijing to lay out in such clear terms - together with the creation of a top-level working group and an emphasis on "top-level design", suggest a more decisive reform push by the administration of President Xi Jinping and Premier Li Keqiang than under the previous leadership". "While the statement was short on details, which prompted disappointment on social media, it is expected to kick off specific measures by state agencies over the coming years to gradually reduce the role of the state in the economy". "..the party said it would work to deepen fiscal and tax reform, establish a unified land market in cities and the countryside, give farmers more property rights", This has been building for a while, as China stocked up on gold.

Posted by alan @ 07:18 PM 2 Comments

Best places in the UK to raise a family

Family Investments: Cheap homes, low crime and good schools: Why market town of Bingham is THE place to raise a family

77% of GCSE pupils in Nottinghamshire town achieved A* to C grades Bingham's population is 9,000 and average two-bed property is £138,969 Also in top ten are towns in Berkshire, Somerset, Devon and Cheshire No London locations in top 20 - but best areas are Bexley and Epsom

Posted by cassie meegan-vickers @ 03:02 PM 0 Comments

As much land used for golf courses as homes

Planet Property: As much land used for golf courses as homes

Get your head round this: We use as much land for golf courses in England as we do for homes

Posted by the planet @ 01:47 PM 0 Comments

Tablet prices down, food up.

Reuters: British inflation hits 13-month low, easing pressure on central bank

"Consumer price inflation fell to an annual rate of 2.2 percent in October from 2.7 percent in September, the ONS said"

Posted by alan @ 01:36 PM 4 Comments

Modernist classic for sale for first time in 80 years

Planet Property: Modernist classic for sale for first time in 80 years

A classic modernist house designed in 1934/5 by architect Marshall Sisson has come up for sale for the first time since it was built

Posted by the planet @ 01:30 PM 0 Comments

Not in the Express!

BBC: House prices in surprise monthly drop, says ONS

House prices across the UK have dropped back slightly, according to the Office for National Statistics (ONS).

Posted by lorne street lenny @ 01:03 PM 3 Comments

On the market: 5 awesome pump house conversions

Planet Property: On the market: 5 awesome pump house conversions

S0me fine old Victorian pump houses converted with care

Posted by the planet @ 01:00 PM 0 Comments

Monday, November 11, 2013

How about putting flats on Regent's Park?

Telegraph: London housing crisis on the horizon due to lack of supply

“Unless we are careful the shortage of homes will start to impact on London’s ability to compete,” said Susan Emmett, director at Savills. “We will start to see businesses think twice about coming to a city where they cannot afford to house their employees"

Posted by alan @ 07:17 PM 11 Comments

NIMBY's of last week

Edinburgh News: Cammo residents to fight green belt housing plan

I feel sorry for the five year old who has been dragged along when she ends up sharing a cramped bedsit with friends. OUTRAGed residents are forming a campaign group to fight a housing project planned for a swathe of green belt land. Disgusted at plans they claim will overrun Cammo with new-build homes and push its already traffic-clogged road arteries to bursting point, they have decided to take matters into their own hands and do something about it. With land-compromised Edinburgh desperately short of housing it is an example of people power set to become commonplace over the next few years. One resident told the News: “We have a strong belief they should be told ‘keep your hands off the green belt’. We also believe that house prices only go up!

Posted by khards @ 06:17 PM 0 Comments

We use as much land for golf courses in England as we do for homes.

Shelter Policy Blog: A fair way? Do we prioritise golf or homes?

There are around 2000 full sized golf courses in England (141 in Surrey alone), with hundreds more smaller courses and driving ranges, according to Colin Wiles on the Inside Housing blog. He calculates that the overall footprint of just the full sized courses is 150,000 hectares or 1.1% of England’s 13.4m hectares. According to a comprehensive government assessment in 2011, that’s the same amount of land in England used for homes.

Posted by andrew.williams @ 04:40 PM 0 Comments

Why home ownership causes unemployment

Planet Property: Why home ownership causes unemployment

Startling new research claims that "in the long run, doubling home ownership in a state can lead to more than a doubling of the unemployment rate."

Posted by the planet @ 12:13 PM 5 Comments

Any day with a "Y" in it is good for bank fraud

RT: Bank of America hit with $864mn penalty over mortgage fraud

You won't find this is the daily/weekly news round-up in the UK or USA. Stuff like this just gets "lost". Does anyone care about the folk who lost their homes? ...Ohhh Kaaay, I didn't think so either.

Posted by alan @ 11:39 AM 1 Comments

Is Help to Buy causing a boom in prices?

Reuters: Cameron says 2,000 mortgages approved on UK 'Help to Buy' scheme

September 2013: 2000 Help to buy mortgages. 65,000 'normal' mortgages. 26,000 cash sales. 92,900 total sales. Is Help to Buy causing a boom in prices?

Posted by cornishman @ 11:37 AM 13 Comments

Sunday, November 10, 2013

Weird thing

Zerohedge: Bitcoin

Weird thing about bitcoin is that although probably it does take a lot of computer power to "mine" the coins, there is nothing to stop duplication of the wallet system. You could have twenty separate wallet sytems running on the same set of "coins". Maybe saying oh but everybody will only accept the original wallet system is a bit lame if the purpose of a currency is to facilitate trade. You could have a wallet system per country. So bitcoin will flop.

Posted by stillthinking @ 01:08 PM 7 Comments

Rise of the speculators

Economist: Live and let buy

THE most recent census of Britain, in 2011, found few places that were less populous than they had been in 2001. Most of the shrinking districts were in the post-industrial north of England. But an unexpected addition to the list was Kensington and Chelsea, London’s wealthiest borough, where the population shrank slightly. There, houses are kept empty by rich foreigners who buy them as investments or as occasional summer homes. That, and the broader surge of foreign money into London housing, irks many. Simon Hughes, a Liberal Democrat MP, argues that foreigners are pricing British people out of owning homes. Ed Balls, the shadow chancellor, complains about "foreign investors buying multimillion-pound houses in London and not paying tax."

Posted by quiet guy @ 11:05 AM 2 Comments

Saturday, November 9, 2013

Sheffield Council Tax Arrears

Nottinghampost.com: 19,000 Nottingham homes to be taken to court

50% increase in council tax arrears in the year, of the 19,757 summoned only 8277 paying council tax for the first time. Quote: 'Deputy council leader Graham Chapman said the authority was having to “squander” money to chase people who couldn’t pay. He said the level of people in arrears was predictable.“It’s always what we expected. By luck or judgment, we had worked out that we would have an £800,000 gap (of arrears after benefit changes) and we are doing our utmost to recover it. The recovery costs are £300,000 and there’s a lot of people who are really struggling to pay.“It costs the council tax payer a lot more money to make poor people poorer.”

Posted by hyrax @ 05:03 PM 0 Comments

Friday, November 8, 2013

5-year fixed rate mortgage from 2.95% for 60% LTV borrowers

Myfinances.co.uk: Virgin Money's 3 new mortgage deals available for 3 weeks only

Virgin Money has launched three new mortgage products that are only available for two weeks. The three new fixed rate residential mortgages are only available until Wednesday November 20th.

Posted by ben @ 01:24 PM 3 Comments

HSBC offer low fixed rate deals for borrowers with 10 & 15% deposits

Myfinances.co.uk: HSBC unveils new low rates for first-time buyers

HSBC has revised its mortgage deals available to buyers with a 15 per cent or 10 per cent deposit. The bank has pledged that its range of mortgage deals for 85 and 90 per cent loan-to-value (LTV) mortgage borrowers will be the lowest on the High Street across two and five year fixed rate products and lifetime trackers.

Posted by ben @ 01:22 PM 2 Comments

Record low interest rates in an economic recovery

Telegraph: It could be time to prick the housing bubble

Of the Ten Commandments of central banking, the most important is to take away the punch bowl before the party gets started. Perhaps inevitably, few manage to obey. Central banks are invariably too slow to cut rates when circumstance demands – the European Central Bank has waited until the eurozone is almost in deflation before taking action – and too slow to raise them when the economy starts to overheat. So it appears with the Bank of England, which despite a quite pronounced bounce in the economy, and accompanying recovery in the housing market, has committed itself to not raising interest rates for at least three years – subject to inflation and unemployment thresholds.

Posted by quiet guy @ 07:37 AM 5 Comments

Thursday, November 7, 2013

Good news!

Express: House prices soar by £13,000: Values rise at fastest rate for 3 years

PROPERTY prices are racing ahead at their fastest rate in more than three years. Sibley 4:50am - This really hammers home the fact that nothing is a safe as bricks and mortar. I see all those idiots from HPC have finally given up the ghost and bought a property. They must be sick. All that wasted rent money. Should have listened to Sarah and I. We had insider trading :) Sibley 4:53am - More pressure should be placed on the banks now to free up lending. Bring back 100% mortgages and self certs. Give people a chance to better themselves. Sibley 10:37am - Still buzzing from this story. What you are seeing now is the hard working homeowner being rewarded for a change. Sibley 12:29pm - put your deposit down on a studio or 1 bedroom flat.

Posted by khards @ 05:29 PM 10 Comments

Further malinvestment and misallocation of capital

Thisismoney: Catastrophic investments lure cautious savers fleeing feeble rates Read more: http://www.thisismoney.co.uk/money/investing/article-2487929/Savers-lured-catastrophic-investments-feeble-rates.html#ixzz2jxwtc700 Follow us: @MailOnline on Twitter | DailyMail

City watchdog the Financial Conduct Authority has warned financial advisers against selling unregulated investments — schemes which it has no jurisdiction over. But with many ready to pull their cash out of High Street accounts in order to get better returns, clamping down on rogue advisers can prove easier said than done. The fear is that it may take several years before investors realise the mistake they have made — by which time the salesmen and their cash may have disappeared. Read more: http://www.thisismoney.co.uk/money/investing/article-2487929/Savers-lured-catastrophic-investments-feeble-rates.html#ixzz2jxxMR5nU Follow us: @MailOnline on Twitter | DailyMail on Facebook

Posted by khards @ 01:26 PM 0 Comments

ECB cuts benchmark refinancing rate to 0.25 percent

Reuters: Bank of England sits tight on policy as recovery builds

"The BoE has kept rates at a record-low 0.5 percent since March 2009 to ...." (yawn).

Posted by alan @ 12:58 PM 2 Comments

The government's Help to Buy scheme is doing nobody any favours

MoneyWeek: A (failed) attempt to defend help to buy

With Britain's house prices in bubble territory, the government's Help to Buy scheme is doing nobody any favours, says Merryn Somerset Webb.

Posted by andrew.williams @ 12:29 PM 0 Comments

Plymouth City Bank?

Plymouth Herald: COUNCIL bosses hope to kick start a housing boom with a £50million cash injection.

COUNCIL bosses hope to kick start a housing boom with a £50million cash injection. Plymouth City Council is planning to set up a fund to help developers to beat the credit crunch and get started on building 1,000 new houses a year. The city will borrow the money cheaply and lend it to housing associations and housing cooperatives at an interest rate of just 3per cent, far below the market rate. Cabinet member Cllr Mark Lowry said: “There is a housing crisis and we need to speed up housing developments. “We need a mixture of affordable homes, family homes, executive properties, student accommodation and extra care housing.” Over the past three years Plymouth has built on average 572 new homes a year, leaving thousands in unsuitable or temporary accommodation.

Posted by khards @ 10:25 AM 0 Comments

UK consumers showing confusion over Help to Buy Mortgage scheme

Property Buyer Blog: UK consumers showing confusion over Help to Buy scheme

Almost half of UK consumers are showing confusion over the flagship Help to Buy scheme according to a new survey. The results, taken from an independent consumer survey from the Building Societies Association, indicate that 43% of first time buyers and home movers are still unclear regarding the details of the government scheme.

Posted by joel desvignes @ 09:42 AM 0 Comments

Toxic (no, not the Britney song)!

Telegraph: Lenders warn of Help to Buy mortgage 'addiction'

"The chairman of the Council of Mortgage Lenders has warned that the property market will need to be gently weaned off the Government's scheme "

Posted by alan @ 09:05 AM 1 Comments

Wednesday, November 6, 2013

Wealth gap keeps getting wider

Youtube: The One Percent

Keeping it in the family.

Posted by doomwatch @ 02:46 PM 2 Comments

Builder has sold more than 3,000 homes through Help to Buy

Myfinances.co.uk: Persimmon says interest rates too high on Help to Buy 2

One of the UK'€™s biggest housebuilders, Persimmon, said it has yet to gain any tangible benefit to its business from the government'€™s Help to Buy Scheme because the mortgage rates being charged through the scheme are still too high.

Posted by ben @ 11:49 AM 4 Comments

No sign of a crash, it's a sustained move upwards

Reuters: UK house prices rise at fastest rate since May 2010 - Halifax

"Halifax said that in October alone, house prices rose by 0.7 percent, stronger than the 0.4 percent recorded in September but slower than the 0.9 percent forecast by economists. Halifax said average house prices in the three months to October were 6.9 percent higher than a year earlier compared to a 6.2 percent rise the month before, the biggest annual increase since May 2010 and in line with market forecasts".

Posted by alan @ 10:47 AM 4 Comments

60s modernist house on Cockaigne Ryde Estate for sale

Planet Property: 60s modernist house on Cockaigne Ryde Estate for sale

A classic development of modernist houses in Hadfield inspired by the communal housing projects in Scandinavia ...

Posted by the planet @ 10:36 AM 0 Comments

Crowd Funding to unlock the house building market

Lincolnite: Lincoln to benefit from crowd funded housing projects

A building company based in Lincolnshire will be the first of its kind in the UK to use crowd funding to build new eco homes in Lincoln. Grantham-based house builder Webster Homes will use the public investment opportunity for the public to directly invest in housing developments. The properties built with the funding will be low carbon SAP ‘A’ rated homes, incorporating the latest renewable energy technologies. Lincoln will be one of the first areas in the region to benefit from the scheme, alongside Grantham, Melton Mowbray and Nottingham. The crowd funding opportunity for investors involves a minimum initial outlay of £1,000, with a guaranteed 7% return on the investment each year. According to Webster Homes, this is more than double any return on current low risk investments.

Posted by websterhomes @ 09:54 AM 0 Comments

House prices rise by 1.6% in last quarter

Myfinances.co.uk: Halifax: House prices rising but still 13.8% below 2007 peak

Halifax reports that the pace of house price growth has moderated in the three months ending in October, according to the lenders latest house price index (HPI).

Posted by ben @ 09:24 AM 0 Comments

We can look forward to a lot of smug headlines

Guardian: House prices: 'south-east set to outpace London' for first time in a decade

Estate agent Savills argue that sustained price rises in the South East are locked in for the next five years at a rate even greater than in London. I presume that this prediction is based upon continuing low interest rates. HTB also gets a mention: "Help to Buy will allow some trapped renters to access home ownership even though the costs of home ownership will exceed those of renting," said Cook, but he said the majority of beneficiaries were likely to those who already own a home, rather than first-time buyers.

Posted by quiet guy @ 07:41 AM 10 Comments

We're rich!

City AM: The UK is bouncing back – now is the time for the first rate hike - See more at: http://www.cityam.com/article/1383703028/uk-bouncing-back-now-time-first-rate-hike?utm_source=website&utm_medium=TD_news_headlines_right_col&utm_campaign=TD_news_headlin

"signs of overheating, even though Britain’s economy remains smaller than it was at the height of the previous boom. The six-month growth of real narrow money – as measured by non-financial M1 – comprising cash and sight deposits held by households and non-financial firms hit 5.3 per cent in September, or 11 per cent at an annualised rate, as Simon Ward of Henderson points out. This is the fastest rate of growth since August 2004; more money held in this way implies a lot more spending, sooner rather than later."

Posted by stillthinking @ 03:47 AM 1 Comments

Tuesday, November 5, 2013

Whaddya mean, not enough cash for social housing?

Telegraph: British taxpayers liable for £800m of misspent EU funds

"British taxpayers are liable for over £800 million of misspent EU funds as Brussels error rate increases by 23 per cent". These people are on a different planet, not just across the Channel! It's not all Van Rumpuy's fault..."The error rate in “external relations, aid and enlargement” spending overseen by Baroness Ashton, the EU foreign minister, totalled 3.3 per cent, or £169 million of £5 billion in spending". No wonder the NSA bugs her 1st class seats!

Posted by alan @ 06:21 PM 3 Comments

Coin hits car - man arrested (world news)

SKY: Man Held As Coin Protest Targets IMF

"Greece's bailout inspectors have been jeered and heckled by protesters". Shock, Horror....a man has been arrested for throwing a coin at an IMF regulator. After all the cheats and fraudulent undertakings of banks, conniving regulators and governments, at last someone has been arrested....Yes, it's a flippin' protester ! Interestingly, Sky make this a big news item - the rest seems to be lost/unnoticed/not newsworthy. Bring back Guy Fawkes, the only man to enter Parliament with honest intentions :-)

Posted by alan @ 06:07 PM 3 Comments

Another day another EuroZone interest fraud

Reuters: EU to fine Deutsche, JPMorgan and others in rate probe

The usual suspects.....Deutsche Bank, JPMorgan etc. What's new? HPC website can hardly be bothered to post about it these days! "The penalties, which will also target Royal Bank of Scotland (RBS), Credit Agricole and Societe Generale, represent the first punishments meted out by Brussels in a global probe and are the latest costly payouts for an industry struggling to put past misdeeds behind it". Yeah, right! It's the trouble with having politicians in Westminster controlled by banksters and not the electorate...as I've said many times previously.

Posted by alan @ 05:56 PM 0 Comments

Not enough houses, he says

BBC: UK house prices a 'force of evil'

NIESR say we are on track for recovery, but house prices are are a problem. (Couldn't be those politicians who are propping up house prices with zero IRs and other tricks, could it?)

Posted by alan @ 05:46 PM 0 Comments

Landlord Health and Safety Requirements

TurnKey Landlords: Landlord Health and Safety Requirements

Health and Safety is something that everyone should take into consideration. Landlords: be especially aware of your responsibilities towards health and safety, not simply because you might get sued; your actions (or lack of them) have potential to kill someone. Not something you want on your conscience.

Posted by amelia @ 11:24 AM 0 Comments

UK all-sector PMI shows record rates of output growth and job creation

Myfinances.co.uk: Services growth at 16-year high as UK economy powers forward

Activity in the services sector in the UK grew at the fastest pace for more than 16 years in October, according to the latest purchasing managers’ index (PMI) from Markit. With manufacturing and construction both posting strong growth in October, the UK economy is on course for further growth in the final quarter of 2013.

Posted by ben @ 09:58 AM 0 Comments

Monday, November 4, 2013

Kensington toilet priced a £150,000 fails to sell shocker

Planet Property: Kensington toilet priced a £150,000 fails to sell shocker

Yes folks, it's with great regret that we report this: a store room with a toilet and a wash basin - but no windows - has failed to sell at auction for a price of £150k. Londonders, eh. Just don't know a bargain when they see one ...

Posted by the planet @ 12:50 PM 1 Comments

Is the $25k microhome the answer to the UK's housing problems?

Planet Property: Is the $25k microhome the answer to the UK's housing problems?

It's been developed in Canada by a company called Nomad and they claim that it's a quick, cheap and sustainable answer to affordable housing. Could it be the answer to the UK's housing problems?

Posted by the planet @ 12:29 PM 2 Comments

Cash buyers outstrip mortgage buyers

Quick Move Now blog: Cash buyers outstrip mortgage buyers

Despite it being more difficult to obtain a mortgage since the 2007 housing market crash, residential properties were still more often bought with a mortgage, rather than with cash. Until the past year, that is! - November 2012 saw cash buyers outstrip mortgage buyers for the first time since this index began - This trend continued throughout 2013 as cash buyers bought a greater share of properties on the market in four out of the last twelve months

Posted by donna rourke-houguez @ 12:21 PM 0 Comments

Reader's letter of the day

Financial Times: Queen Bess was the first Georgist

Sir, In your report Taxpayers to lose out over ‘Crossrail effect’ on property” (October 29) you quote transport expert Christian Wolmar as saying: “In the UK we’ve never developed a sophisticated way of capturing that added value.” The system was developed and introduced hundreds of years ago by Queen Elizabeth I and was known as Poor Rates, an early or simplified form of land value tax and the direct precursor of Agricultural Rates, Domestic Rates (both phased out long ago) and Business Rates (still in existence). It is worth noting that Poor Rates were used to finance a very basic welfare system, thus making her the first Georgist!

Posted by mark wadsworth @ 10:53 AM 9 Comments

Property tax in Britain is a mess

Telegraph: Sweep away the mess of property taxes and we will start to attract investment for more new homes

"Years of incoherent, politically-motivated changes have created a system that’s fundamentally flawed. It’s unfair, unpredictable and hinders growth. Instead of creating endless distortions and damaging the market’s ability to deliver new homes, we need to develop a clear and fairer system of property tax"

Posted by alan @ 08:23 AM 3 Comments

Sunday, November 3, 2013

Will rates start to rise now or plummet into negative territory before they turn around?

Armstrong Economics: The Beginning of The Rise in Interest Rates is Here

Armstrong claims that the impact of the debt ceiling debacle is that the administration is shifting to long term debt to protect itself from the "Tea Party" ability to hold them to random. He states that Clinton's move to short term debt is what helped bring rates so low, and so suggests that the shift to long term debt will cause rates to rise. This would be a great irony because it would mean that attempts to isolate the fiscal hawks would result in the very higher interest rate conditions that would force the US Govt to become fiscally conservative. I personally am skeptical that the rise in rates is imminent, because I feel that the market wants to flirt with negative rates before this thing turns around, but certainly, if rates rise, house prices could fall.

Posted by libertas @ 08:43 AM 8 Comments

Saturday, November 2, 2013

Boom time for foreign buyers

Channel 4: How Britain is exporting its homes

It's not just the super rich – an oligarch buying a bolthole in Mayfair. These are upper middle classes of the world looking for a safe bet for their abundant savings - the London property market. Tellingly, other nations, Australia and Singapore have laws to restrict this type of flow of property purchase. Investors in Kuala Lumpa said that the free-for-all in London was one of the principle attractions versus say Australia (where a foreigner can only sell property to an Australian) or Singapore (where foreigners are not allowed to rent their flats, have more than one, own houses, sell within five years, and many pay an additional stamp duty of five per cent).

Posted by stuartking @ 11:32 AM 4 Comments

Friday, November 1, 2013

Overcrowding on the top deck?

WSJ: Problems building for ECB Skyscraper

Over 10 years in the making, over budget by 350M Euros and already too small. But where to put the extra 1,000 extra regulators...that's the problem! Another "lead by example" austerity project..... Doh!

Posted by alan @ 09:39 PM 1 Comments

I see no bubble. What could you get in London for £5.5 Million?

My Home: Tulira Castle, Country House 250 Acres

A national landmark and one of the finest examples of an Irish Castle set within 101 hectares of mature woodland and parkland. On c. 101 Hectares (250 Acres) Tulira Castle is without doubt one of Irelands most historically significant Castles, with a rich architectural heritage. One enters Tulira Castle through an impressive entrance gates which were brought from Dunsandle House in 1950. The Castle is approached by an immaculate three-quarter-mile avenue, lined with 95 lime trees. The Castle comprises three main buildings, a medieval tower, courtyard buildings and the Victorian Castle.

Posted by khards @ 02:25 PM 1 Comments

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