April 2014 Archive

Wednesday, April 30, 2014

Government suspects house prices will stabilise or fall

Telegraph: Treasury may change inflation target to include housing costs

The BoE and ONS want to pretend there is low inflation (my food costs are up 7%). What better way than to select items about to fall so as to manipulate the results (whilst pretending to be "fair").

Posted by alan @ 08:31 PM 6 Comments

A recent YouGov survey finds that people now prioritise greater equality over more wealth

YouGov: Voters choose greater equality over greater wealth

A new YouGov survey finds that the ‘Inequality Moment’ may indeed have reached Britain, as 56% would like to see a more equal distribution, even if it reduces the total amount of wealth, and only 17% would choose greater overall wealth even if it leads to greater inequality.

Posted by landofconfusion @ 04:27 PM 3 Comments

Volume 1 Page 1 - House prices always go up

Fundweb: Fund groups back world's first library of financial gaffes

The first ever Library of Mistakes has been opened in Edinburgh following support from across the Scottish asset management industry. The 2,000 volumes in the collection are designed to catalogue mistakes that have been made throughout financial history for examination by financial students, professionals and members of the general public.

Posted by jack c @ 03:44 PM 2 Comments

As I was saying, your best bet is to build something similar to everything else in the area

Daily Mail: Rchitect ordered to TEAR DOWN his ultra modern $500,000 dream home after claims it's ruining historic neighborhood Read more: http://www.dailymail.co.uk/news/article-2586343/Modern-home-divides-historic-Southern-neighborhood.html

"Louis Cherry had building permit revoked six months after design was approved (and the house was finished!!) Historic Development Commission changed its ruling on project after neighbour complained" Oh, and do a quick visit to all the potential neighbours and ask them if they are OK with it. it's good to talk etc.

Posted by mark wadsworth @ 02:18 PM 1 Comments

Hurrah

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

House prices in England and Wales have fallen in the last month, according to data from the Land Registry. Between February and March, prices went down by 0.4%, bringing the average price of a house to £169,124.

Posted by steve @ 01:19 PM 0 Comments

1.4 million zero hours - the farce of figures for rising employment

BBC News: UK firms use 1.4 million zero-hour contracts, ONS says

Nearly half of big companies in the UK use a total of 1.4 million zero-hours contracts, a study from the Office for National Statistics (ONS) says. Zero-hours contracts do not guarantee a minimum number of hours of employment. The ONS recently estimated 583,000 individuals were employed on such contracts between October and December last year.

Posted by hpwatcher @ 10:52 AM 40 Comments

When the big boys cash in perhps the crash is about to come

Torygraph: Grosvenor Estates sale marks top of London property market

Not that Hugh is the sharpest tool in the box - but his family know a thing or to about property - and they seam to be calling the top of the market

Posted by pete green @ 08:51 AM 5 Comments

Tuesday, April 29, 2014

Discrimination against the young

Planningresource: 'Discriminatory' green belt policies causing housing affordability crisis, says LSE professor

Green belt polices are 'discriminatory' and aim to keep 'the urban unwashed out of the Home Counties' as well as causing spiralling house prices, according to new research by the London School of Economics (LSE). He states: "Policy has been actively preventing houses from being built where they are most needed or most wanted – in the leafier and prosperous bits of ex-urban England." In his study, he claims that housing is being built in the wrong place, pointing out that "twice as many houses were built in Doncaster and Barnsley in the five years to 2013 than in Oxford and Cambridge". According to Cheshire, "the crisis of housing affordability" is explained by "a longstanding and endemic crisis of housing supply" which itself is "caused by policies that intentionally constrain supply"

Posted by khards @ 10:38 AM 1 Comments

Return of the property profit prophets

Telegraph: Get-rich-quick property seminars make a comeback

Soaring house prices and new freedoms for savers to dip into pensions in retirement has set the perfect backdrop for the return of two notorious sales ploys: property investment clubs and "wealth creation" seminars. "Ever wanted to get into property investing but didn't know where to start?" reads an advert in one newspaper, "then this seminar is for you." A mailshot bleats: "How to get started in property with just £1,500 and 10 hours per week." Other email marketing is more mysterious: "How to develop an entrepreneur's mindset," says one, while another has, "A candid, personal letter to you" in the subject line. Both lead you to people flogging property seminars, courses and mentoring. Welcome to the world of property investment education. It's as if the recession never happened.

Posted by quiet guy @ 01:31 AM 2 Comments

Monday, April 28, 2014

Banks to be tested for 35% slump

Skynews: Banks to be tested for 35% drop in prices

And 5% base rates...interesting because I'm sure Lloyds was tested a few years ago by one of the Big American banks for 10% fall and the results were not good!assuming these tests are done properly I wonder who will pass or fail...after all if banks could pass this test then interest rates would not Have been dropped to 0.5%

Posted by taffee @ 03:30 PM 26 Comments

Nasty new lending rules!

Daily Telegraph: First-time buyers face rent trap under new mortgage rules

Measures to prevent a fresh housing boom could push up rental costs and shut young families out of the housing market for years.....

Posted by tom101 @ 02:05 PM 14 Comments

Fingers crossed...

City AM: London house price surge to slow after frenzied year

LONDON house prices could rise more moderately in the months ahead after a manic year of double digit growth, new evidence today suggests. The latest report from Hometrack shows that the amount of time that the average London house spends on the market has risen from 2.7 to 3.4 weeks between March and April.

Posted by mark wadsworth @ 11:30 AM 3 Comments

Sunday, April 27, 2014

Can 3D printing solve the housing crisis?

Post Magazine: Can 3D printing solve the housing crisis?

Interesting article which looks at the potential impact of 3D printing technology on house building. Proponents claim the technology will revolutionise house building by enabling cheap, high quality and environmentally sustainable dwellings to be constructed in under twenty four hours.

Posted by carnivaltime @ 10:33 PM 4 Comments

Galbriath rifines

RT: James Galbraith on Piketty's Capital in 21st Century & Best of the Week!

Interesting interview with James Galbraith who wants to focus on taxing rent rather than wealth, or capital as Piketty defines it in his new book But before that an interesting commentary on home sales in the U.S., which tanked in March, falling 13.3% year over year. But what's curious, is that even though the sales number are bad, prices of new homes are still rising

Posted by pete green @ 10:02 PM 2 Comments

Too wide, too deep and too expensive as well.

Telegraph: Family's dream £500k home to be demolished for being too tall

The owner claims the builder told him it would be OK. Fool.

Posted by vinrouge @ 07:46 AM 19 Comments

Saturday, April 26, 2014

Rentier economy.

Telegraph: Buy-to-let returns top all other asset classes

"Buy-to-let investments have outperformed all mainstream investments over the past 18 years, study finds". " Landlords who are most at risk of making a loss are those who have flocked lately into the market, or who have borrowed against their existing buy-to-let portfolio recently, with interest rates at all‑time lows (Not much risk there....US & UK IRs are staying at lows for the next 18 months says 100% of Bloomberg economists polled).

Posted by alan @ 05:28 PM 3 Comments

I Want One!!!

BBC News: Firm 3D prints 10 full-sized houses in a day

A company in China has used giant 3D printers to make 10 full-sized, detached single-storey houses in a day

Posted by jasonpistol @ 02:46 PM 1 Comments

Friday, April 25, 2014

Some mental stimulation

Telegraph: Solow, Piketty and the problem with bank bailouts and deposit insurance

Something to ponder on, applies equally to the housing market as well as the nation state i.e. for market capitalism to work, the state will have to be willing to see periods of (potentially ever-escalating) disruption to the lives of ordinary people as the price for preventing the wealthiest being pure passive rentiers. It is not (and morally cannot be) the job of the state to keep the rich rich, even if by doing so the state softens the impact on the poor of the rich becoming poorer.

Posted by enuii @ 07:08 PM 1 Comments

Real rental values continue to fall, why don't landlords just put up the rent then?

ONS: Index of Private Housing Rental Prices, January to March 2014 results

Private rental prices paid by tenants in Great Britain rose by 1.0% in the 12 months to March 2014, unchanged from a 1.0% increase in the 12 months to February 2014. Private rental prices grew by 1.0% in England, 1.3% in Scotland and 0.6% in Wales in the 12 months to March 2014. Rental prices increased in all the English regions over the year to March 2014, with rental prices increasing the most in London (1.4%).

Posted by khards @ 11:04 AM 4 Comments

Could the new rules burst the bubble?

MoneyWeek: This could be the pin that bursts the London property bubble

A big change is about to make the mortgage market a lot tougher for borrowers. Could this finally burst London's property bubble? Matthew Partridge explains.

Posted by andrew.williams @ 11:00 AM 0 Comments

Danny Dorling on form again

Grauniad: To make housing affordable requires more than tinkering around the edges

"The answer is not tinkering around the edges with "affordable" housing or crackdowns on absentee foreign buyers in Knightsbridge – it is a combination of direct government action to build more houses; reforms to planning and regulation to let the market work; and higher taxes to redistribute the windfall gains that have benefited those who need it least."

Posted by pete green @ 10:40 AM 29 Comments

Formalising existing procedures ?

MSN: Mortgage Applicants Face New Rules

Having spent a similar time in mortgage application interviews three years ago I'm wondering if this is anything new. The person at Natwest who gave me the mortgage insisted on reducing the term from 17 to 16 years to remove any possibility of the mortgage still being in force when I was 65. Otherwise he would have to explain in detail how it would be paid off. Fingers crossed it will be paid off much earlier.

Posted by tenyearstogetmymoneyback @ 08:04 AM 34 Comments

Thursday, April 24, 2014

And what about the off balance sheet debt?....

Mail: Government borrowing falls to its lowest level since before the financial crisis - but national debt soars to a record £1.27 trillion

'The debt has doubled in five years, tripled in nine years and quadrupled in 12 years as Britain lived way beyond its means.'

Posted by hpwatcher @ 04:29 PM 3 Comments

Aargh! My dirty little secret is out!

Leamington Spa Courier: Record month for Heritage Property in Kenilworth

The Kenilworth branch of Heritage Property celebrated record sales for March 2014 with sales of over £7 million being agreed. Sales manager Mark Wadsworth, an estate agent with 25 years experience said: “We had an excellent start to the year exceeding our targets in both January and February but March has proved to be a record breaking month."

Posted by mark wadsworth @ 02:33 PM 5 Comments

Approvals slow as MMR deadline date nears

TurnKey Mortgages: Mortgage approvals slow

After 11 consecutive month-on-month increases, the number of mortgages approved for home purchases dropped between January and February 2014 as lenders geared up to implement the FCA's tough new mortgage regime.

Posted by ben @ 02:27 PM 4 Comments

Watch that debt interest, global interest rates are rising!

Tradingfloor: New Zealand Central Bank Raises Official Cash Rate to 3.00%

WELLINGTON, New Zealand--New Zealand on Thursday raised interest rates for the second consecutive month as the nation's economic expansion gains momentum and inflationary pressures increase. "In this environment it is important that inflation expectations remain contained. To achieve this it is necessary to raise interest rates towards a level at which they are no longer adding to demand," Reserve Bank Governor Graeme Wheeler said in a statement after lifting the cash rate 25 basis points to 3.00%. He underscored, however, the speed and extent to which the cash rate will be raised "will depend on economic data and our continuing assessment of emerging inflationary pressures, including the extent to which the high exchange rate leads to lower inflationary pressure."

Posted by khards @ 09:20 AM 8 Comments

Wednesday, April 23, 2014

Debt doesn't matter if you plan to default on repaying it

Maxkeiser: This is why talk of UK recovery is nonsense. Osborne’s shock growth in UK debt.

At 9.30am 2moro @ONS data will confirm George Osborne has grown National Debt more in 4 yrs than Labour did in 90 yrs

Posted by khards @ 01:42 PM 17 Comments

The Tories should be appalled - but what should they do about it.....

Torygraph: Honest work can't put a roof over people's heads: true Tories should be appalled

Its good we have political consensus growing for reducing the cost or housing. While I think building more houses is important - it is of far more fundamental importance to enact policies that reduce rents and house prices, shifting the tax burden being the first.

Posted by pete green @ 10:57 AM 4 Comments

Well, this should be easy to monitor and enforce

Daily Mail: The mortgage inquisition: Borrowers face tough new quiz..

The FCA's new 'macroprudential' regulation of mortgages to rein in house price rises. Mortgage applicants are to face 'invasive' and 'inquisitorial' questions about their finances and lifestyles in an interview lasting 'up to 3 hours'. There will be stress tests like: what if IRs rose sharply, say to 7%. And there'll be far fewer short, fixed-term teaser rates and virtually no interest-only mortgages. Ray Boulger thinks it's silly.

Posted by icarus @ 09:51 AM 24 Comments

Tuesday, April 22, 2014

The shape of things to come - probably pensions and more QE next.

Zerohedge.com: Martin Armstrong Warns "Abandon The UK Before You Can't"

''The politicians have squandered everything and now they are hunting down capital everywhere and the view is people have to pay whatever they demand or you are just a criminal.''

Posted by hpwatcher @ 08:21 PM 4 Comments

London has started to crash

Mindfulmoney: Three reasons not to rush into housebuying now

I came across these charts while trying to figure out the best places to hunt for houses in London on a value-for-money basis; I think they speak for themselves… Slump in new buyer enquiries and the gulf in house prices has never been greater. These three charts seems to suggest that the sharp surge in London house prices over the last few months could be at risk of cooling or even partially reversing over the next few months, hard though it may be to believe at the moment!

Posted by khards @ 06:08 PM 26 Comments

Very surprising stats and some interesting conclusions

BBC News: Is the UK mending fast enough?

Not what I expected at all, tbh. Last info I'd read on UK debt was in the Economist last year, accurate at Sept. 2012. It turns out the situation has much improved since then, but only as a % of GDP. Banking debt has apparently fallen significantly, though.

Posted by reticent @ 06:07 PM 6 Comments

Economists warn on toronto bubble

Huffington post: Average toronto price $1 million

Thought it was Interesting how similar this is to london/uk...particularly in the comments lots of talk about shortages etc but most telling was that in reality its super low interest Rates that make these prices affordable.btw Mark Carney caused this.as he was the canada bank Boss..so I thought it was relevent

Posted by taffee @ 04:03 PM 0 Comments

Keiser does the housing super bubble!!

RT: Keiser Report - Episode 591

In this episode of the Keiser Report, Max Keiser and Stacy Herbert discuss the rentier rising from the dead, generation debt and harvesting the young with student debt. In the second half, Max interviews Ross Ashcroft about the housing super bubble in London and what it means to the rest of the economy to have a rentier class in charge.

Posted by khards @ 12:44 PM 2 Comments

The new rentier pradigm

Daily Kos: Housing Secretary: “the worst rental affordability crisis that this country has ever known"

What if our economic crisis was not the start of a House Price Crash but heralded a new rentier economic paradigm in the west. Bringing back the days of serfdom between renters and house owners , BTL landlords and the new breed of corporate landlords we see in the states. Are the poorest and youngest to give half of their income straight to the landlord or banks' enshrining poverty unless your lucky enough to inherit a house. I am sure rentiers wish this to happen where landlords and banks pluck half the incomes from the majority of productive workforce, but could a system happen and could it be stable?

Posted by pete green @ 11:15 AM 39 Comments

Monday, April 21, 2014

Independent: Time to cool off the housing market

Independent: The housing market is overheating and it's time to cool off

The £550k Camberwell garage could be this bubble's equivalent of the £50k Chelsea cupboard in the 80s. But the bubble hasn't gone countrywide. It could end in two ways: external shock; or debt overload and sentiment shift. Authorities should put brakes on mortgage market when reaches 80,000 sales per month.

Posted by colb @ 08:39 AM 0 Comments

Saturday, April 19, 2014

Here's your answer, Mr Weale (see lib's post)

Zero Hedge: Chief economist (of BIS): (QE) is extremely dangerous

Ex-BIS man says QE was meant to get seized-up markets going again but that aim has morphed into inflating asset prices to get people to spend (or is it to make the rich richer?). But QE doesn't tackle the excessive debt that caused the problem in the first place. The solution to that is write-offs, restructuring, recapitalisation. But QE is la la land where nobody needs to do anything while big problems stack up unseen - mainly zombies which suck the life out of the healthy parts of the economy. And it's worse than 2007 because emerging economies have been sucked in to the world of debt/liquidity-driven bubbles. And moral hazard is now worse among bankers. He says that Japan is in a particularly bad place and that "(with QE) housing tends to be the big thing that goes wrong".

Posted by icarus @ 11:12 AM 48 Comments

Friday, April 18, 2014

Quantitative Easing destroyed £150bn from economy

Telegraph: QE has boosted UK growth by 3pc, says Martin Weale

Reporters are inanely stating that QE boosted the economy by £50bn without covering the other half of the equation. The government spent £200bn on QE to get £50bn growth. For that price, they could have eliminated corporation tax (£51bn) and income tax (£155bn) for a whole year, or slashed both by 10% for a decade, and guess what, that would have created TRILLIONS in growth, with almost every corporation in the planet moving to head quarter Britain. What actually happened was, that they destroyed the economy to give £50bn to their buddies. This is called artificial scarcity, or neo-feudalism.

Posted by libertas @ 09:36 PM 1 Comments

Thursday, April 17, 2014

Time to short GBP/USD?

JonathanDavis: Interest rates are NOT rising!!!

Rates rose last year so, apparently, everyone jumped on the short term bandwagon and decided that the multi-decade trend had suddenly changed. Somewhat prematurely in our view. So the rate rose last year and the media and City pundits went wild announcing the death of the 40 year fall in rates and so, they said, we must expect higher and higher rates in the future. I have news for you: if rates rise then the Western economy is – to put it highly technically toast! So, if the rate at which the government borrows was to rise from, say, 3.5% to 4% – a mere 0.5% rise – this would increase the Government’s interest bill by £7 Billions pa. How would it pay for it? £7Bns of cuts? That would play well with the electorate just as we are entering the final year before the next Election.

Posted by khards @ 03:45 PM 7 Comments

Wednesday, April 16, 2014

The ultimate socialite apartment comes with BALLROOM

Wetherell.co.uk: The ultimate Mayfair pad comes with ballroom

Love entertaining? Go for the luxury flat in the heart of London's Mayfair, 17 Grosvenor Square comes complete with a £5.5million price tag, stunning views across the historic square a short walk from Hyde Park. This second-floor apartment's unique selling point is the enormous ground-floor ballroom, measuring 55ft by 22ft with a 20ft-high ceiling. Peter Wetherell, managing director of Wetherell said: 'This spacious apartment is perfect for a socialite wanting space for entertaining and staff. It's not often that you can buy a Mayfair home with access to a 350 person ballroom and maids' rooms.'

Posted by tanja @ 06:03 PM 0 Comments

LibDims perform U-turn on Mansion Tax

Torygraph: One of the most destructive taxes of the past 40 years could soon be axed

A mansion tax would fatally undermine the concept of freehold property

Posted by landofconfusion @ 02:22 PM 13 Comments

Rent price crash: 6 months -3.387%

RentIndex: Average monthly rental figure for let residential property in England and Wales.

Average monthly rental figure for let residential property in England and Wales provided by propertyhawk Property Manager software providers. Rents are the lowest they have been since 2012 and trending downwards. Percentage change:12 months -1.767%, 6 months -3.387%, 3 months -1.859%, 1 month -0.314%

Posted by khards @ 01:23 PM 12 Comments

Has the housing bubble peaked?

MoneyWeek.com: Don'€™t speak too soon -€“ but the housing bubble may be peaking

House buyers are entitled to feel disgruntled at today's inflated prices. Dominic Frisby offers a ray of hope that an end to the madness may be in sight.

Posted by andrew.williams @ 10:42 AM 1 Comments

Good headline

Metro: Your home probably earns more than you: Property experts warn of a housing ‘super bubble’

The article is the same old stuff, but it's a good headline. That's the whole point of Home-Owner-Ism, to get other people to earn money for you and you siphon it off via the land market/mortgages (for the top one per cent), the Homey foot soldiers are being conned a bit because it's only a paper gain and they get tricked into MEWing. The bottom third (the young) are getting shafted by everybody else.

Posted by mark wadsworth @ 09:01 AM 12 Comments

Tuesday, April 15, 2014

Don't worry, this boom will be perfect

It's a superbubble

Evening Standard: The housing bubble continues to swell

But if there is a shortage of supply, why are rents ... falling?

Posted by sneaker @ 09:11 PM 2 Comments

Frances O'Grady says a cost of living crisis remains

Sky: House Price Concern As Wider Inflation Eases

"Wage rises could be finally outstripping inflation for the first time in years though house price growth continues apace". ( NOTE KEYWORD: could).

Posted by alan @ 03:54 PM 3 Comments

Now london is in superbubble?

Dailymail: Is london now in a superbubble

Remarkably similar to Tokyo where properties eventually fell over 80% and 22 years later Are still up to 40% less....I.e. this time it didn't recover...I cannot see this ending anyway but Very very badly

Posted by taffee @ 02:05 PM 10 Comments

A fate worse than death...

BBC: Scottish independence: Debt dump worth more than oil, says CPPR

A spokesman for Better Together said: "Only Alex Salmond is suggesting that Scotland would default on our share of the debt if we leave the UK. "People know what happens if you don't pay your debts - you end up with a bad credit rating and everything is more expensive. "That would mean far higher mortgage repayments, higher credit card bills and higher costs for families." They can take our lives, but they'll never take away our low mortgage interest rates!!

Posted by mark wadsworth @ 07:38 AM 0 Comments

Monday, April 14, 2014

Carney'€™s Powers Primed to Take Heat Out of Housing

Bloomberg: Carney’s Powers Primed to Take Heat Out of Housing

68% of economists say Carney can stop prices spiraling out of control Tool allowing BOE to stipulate interest rates used in lenders' affordability tests will be available in June EY sceptical about likelihood of an unsustainable boom % of economists expected IR raise by next March increases from 42 to 48

Posted by mewparadigm @ 07:46 PM 0 Comments

The new generation of 1st time buyers

BBC: Graduate starting salaries drop 11% in 5 years

Graduates salaries have dropped by an average of 11% in real terms in 5 years in the UK. Under graduates have now seen university fees rise from a maxium of £3,290 in 2010 to £9000 now. To get onto the housing ladder in most parts of the country, students would have to start paying back their loan and in some areas like London it would be the maximum amount. There are also moves to sell of the student loan book which could see rates charged rise. This of course only matters if you feel that indigineous students who have been born here deserve to be able to afford to buy a property. If you view is that housing is an international business comommodity that should be freely available to the highest bidder, then just forget the next generation and promote the safe haven product.

Posted by britishblue @ 02:32 PM 4 Comments

Big Trouble in Little China

Forbes: China Property Collapse Has Begun

Nothing is going right for Hangzhou at this moment. Walmart will be closing its Zhaohui store in that city on April 23 as a part of its overall plan to dump marginal locations—about 9% of the total—in China. The real weakness, however, is Hangzhou’s residential sector. The cause is simple: massive overbuilding. The real estate market in Hangzhou looks like it has just passed an inflection point. It is not so much that fundamentals have deteriorated - they have been weak for some time - as that people’s mentality has changed. Now, the problem of no buyers is spreading across the country. The secondary property market has tumbled, with sales falling by more than half in Q1 2014 from the same quarter in 2013. Speculators have either left the domestic market or have sold off holdings.

Posted by khards @ 10:15 AM 4 Comments

How to do austerity

SCotsman: Families ‘one pay packet away from losing home’

How can the Chancellor follow through with delayed austerity, when introducing austerity will start a 'rip' through mortgage servicing as government spending that might be reduced is geographically centred.

Posted by stillthinking @ 08:58 AM 3 Comments

Friday, April 11, 2014

London is not in a bubble. I repeat: London is not in a bubble.

Evening Standard (MBVNIF): Garage near London industrial estate sold for over half a million pounds at 'frenzied' auction

A ramshackle brick-built garage next to a south London light industrial estate has become the most expensive ever to sell in Britain after reaching an auction price of £550,000 in a “frenzied” bidding war. The 568sq ft former coach house, used for years to park the mayor of Southwark’s car, went under the hammer for almost triple the guide price and £150,000 more than the average house in “up-and-coming” Camberwell. It is also £25,000 more than was raised by the sale of a double garage in the shadow of Harrod’s in Knightsbridge, central London, last year – a record at the time.

Posted by mark wadsworth @ 01:34 PM 13 Comments

Things that make you go hmmmm

FT (via Google): China bond auction failure reinforces slowdown concerns

The Chinese government was unable to sell all the bonds offered at an auction on Friday, its first such failure in nearly a year amid concerns about slowing growth in the world’s second-largest economy. The failed bond auction raises the stakes for Beijing as it tries to rein in debt levels, illustrating that even the state will have to pay a higher cost for funding as banks focus more on investment risks and demand improved yields. In the bond auction the finance ministry had hoped to sell Rmb28bn ($4.5bn) of one-year bonds. However, it ended up selling just Rmb20.7bn, the first time since June that a government debt sale failed to reach its target. Last year’s failure was a precursor to a cash crunch that roiled global markets when Chinese money market rates spiked to double-digits.

Posted by khards @ 12:57 PM 2 Comments

Billy Bragg "We need a Land tax - a solid Land Tax"

BBC: Question Time

Good debate on Question time - and Good old Billy Bragg gets Land Value Tax as well!

Posted by pete green @ 10:07 AM 14 Comments

Death spiral of a national favourite

Sky: Co-op Bank In Record £1.3bn Annual Loss

Have a look at the plonkas on the main board, says Myners. My insider friend from Stoke says "it woz Britannia property loans wot dunnit"! My two local co-op supermarkets are bright and cheerful and the people are friendly and helpful - sorry about the bosses....

Posted by alan @ 08:38 AM 1 Comments

Pre-election farce

Telegraph: British economy too reliant on people spending money, warns IMF

Comment: "Successive UK Govts have proved useless, in their different ways, at generating non-financial private sector growth and an adequately skilled workforce. Instead, they have gone for the easy short term solution. That being huge debts and an unprecedented mass immigration. The former to give the illusion of growth, the latter to keep it going by increasing total economic activity. Our chickens are coming home to roost. These illusions cannot be sustained. Which is why we only get some growth at sensitive times in the political cycle. Boy George's housing boom is timed to hit its peak in May 2015. Thereafter, we can expect difficult decisions and an economic slowdown."

Posted by hpwatcher @ 08:15 AM 2 Comments

Thursday, April 10, 2014

Sanctions will threaten high end London property market

MaxKeiser / RT: Luxurious Sanctions: NYC real estate takes hit from sanctions

Whilst diplomats seek a way out of the crisis in Ukraine, Washington's talk of more sanctions against Russia is becoming more aggressive. But with America's debt ceiling raising ever hire, some doubt it can afford any serious moves and it's not just the sale of government bonds at risk, the luxury housing market is also likely to be hit. In America's most expensive real estate market Russian buyers have headlined some the flashiest properties, they tend to buy expensive apartments and plan to buy top luxury apartments which often break record prices. These extravagant purchases may soon be a thing of the past as presently the US has slapped economic sanctions and visa restrictions against some officials in Moscow. The move has caused something of a boomerang against Manhattans real estate

Posted by khards @ 11:01 PM 3 Comments

UK housing underpriced according to GS

FT: UK housing's bust without the boom

This is a video so linking to it is tricky. I will try as a comment. Comparison to the US, rental prices, lending costs.

Posted by mountain goat @ 01:48 PM 28 Comments

How bankers on less than £150k are playing the London housing market

EFinancialCareers: How to play the London housing market when you work in banking and earn less than £150k

Even people working in banking can't afford houses in London now. Ever inventive, young bankers are finding ways around this. In most cases, it involves renting a room to other, younger, colleagues in the industry.

Posted by sarah butcher @ 01:22 PM 0 Comments

Slowly, slowly catchy monkey

MalaysiaChronicle: China's property bubble 'FINALLY AT BURSTING POINT'

BEIJING - Businessman Allen Zhao has been waiting since last year for prices in the scenic southern city of Hangzhou to rise high enough to sell his two-bedroom apartment for about 2 million yuan ($405,300). Last Monday, he was horrified to hear that his neighbour let her place go for just 1.7 million yuan. "That is not much more than the price I paid in 2012," said a rueful Mr Zhao, 45. "Now I'm regretting not selling earlier - more bad news about the property market keeps coming in every day." The property sector woes have kept coming: average new home price rises across the country have slackened for three straight months; property developers in big cities are offering discounts to prevent sales from plummeting; and foreign investment in China's real estate has collapsed.

Posted by khards @ 11:32 AM 5 Comments

How banksters got away with fraud

Counterpunch: Retiring White House prosecutor says SEC is corrupt

SEC officials in the US are 'more focused on getting high-paying jobs after their govt service than on (prosecuting) difficult cases' according to a retiring SEC official whose own investigations were squashed. Then the SEC used misleading statistics to 'show' that it was taking action. But this cover-up goes right to the top; Obama lied when he said he would go after those involved in 'abusive lending and packaging of risky mortgages that led to the housing crisis' and 'return to the American values of fair play and (cont p 94)'. Privately he told top Wall Street officials he would protect them, saying 'my administration is the only thing between you and the pitchforks' and 'if I'm going to shield you from public and congressional anger you have to give me something to work with'.

Posted by icarus @ 10:16 AM 0 Comments

No place for HPC in a Goldilocks Economy

Shaun Richards at Mindful Money: Is this a Goldilocks scenario or a classic pre-election boom for the UK economy?

We see that the UK economy has started 2014 in a strong manner combined with weakening inflation and signs of a pick-up in wage levels. So three points of the Christmas wishlist look well on their way! Even the pound is for once helping by rising into this move and contributing a dash of disinflationary monetary tightening. What is there not to like about the spring-like data we are getting from these areas? Where matters are more difficult are if we look at the housing market or the subject of new data today our trade position. These look like victims of a deja vu like scenario as how many times have they been flashing yellow if not amber alert into a General Election season? (see http://www.investopedia.com/terms/g/goldilockseconomy.asp)

Posted by quiet guy @ 12:28 AM 1 Comments

Wednesday, April 9, 2014

Recovery? FLS 42 billions of house price inflation gives UK consumers a windfall....

Telegraph: British exports at three-and-a-half year low - (UK economic recovery remains reliant on consumer spending despite efforts to boost exports)

Britain's goods exports slumped to a three-and-a-half year low of £23.5bn in February, its lowest since November 2010, according to latest data from the Office for National Statistics (ONS). The figures will come as a blow to the Government, which has been seeking to boost exports to rebalance away from consumer spending, the main driver of the UK’s surprisingly strong economic recovery over the past year.

Posted by hpwatcher @ 07:13 PM 2 Comments

Tuesday, April 8, 2014

Getting the "balance" of GDP right

Huff Post: UK Debt Is Actually £100 Billion Higher Than We Thought

"Osborne's austerity message is set to be dented by the government's own statistics body, as it prepares to adopt new calculations that mean the UK's public sector debt will be £100 billion greater than estimated. The Office for National Statistics will bring in the new calculation this autumn as part of sweeping changes that include estimating illegal activities like prostitution and drug dealing as worth £10 billion to the country's national wealth". (Is Maria Miller helping George design these scams?)

Posted by alan @ 07:50 PM 44 Comments

What about the DEBT George??

Reuters: UK economy basks in manufacturing growth, IMF upgrade

A stunning piece of pumping. "The signs that Britain is finally starting to put the financial crisis behind it are well timed for Chancellor George Osborne. He visits the IMF this week, a year after Fund officials urged him in vain to tone down his austerity programme to get growth going again". "output leaps", "pound up" and other pumping litters the article - too bad for those Weetabix employees asked to cut their wages- or else. Few people I know had a decent pay rise last (financial) year...unless they were bankers, of course! Can't see any mention of the massive debts under the Coalition - much more than Gordo and Darling put together over the lifetime of NuLabour. Can Osborne keep the wheels from falling off by selling the NHS ? They promised not to.

Posted by alan @ 07:32 PM 4 Comments

"Hands off our land!"

Telegraph: New freedom for buy-to-let pensioners

A specialist buy-to-let lender amended its upper age limit, allowing anyone under the age of 70 to apply for mortgages lasting up to 35 years. Other firms are advertising new schemes to tempt pensioners to withdraw all their savings and invest in property... Henry Jordan, managing director of The Mortgage Works, part of Nationwide Building Society, said his firm had recognised that buy-to-let was becoming a more popular source of retirement income. "The recent Budget announcements could see even more considering buy-to-let as an option for their retirement savings," he said.

Posted by mark wadsworth @ 03:05 PM 6 Comments

For once the Telegraph doesn't trumpet high house prices as an entirely Good Thing...

Torygraph: 'Cool' London is dead, and the rich kids are to blame

Almost: 'I’d also shove up stamp duty on places over a million pounds too. Yes, it’s a mansion tax' Nope, that would conveniently exclude anyone who can avoid selling...

Posted by mombers @ 02:08 PM 2 Comments

Monday, April 7, 2014

Sounds interesting.

PolicyExchange: A Right to Build: Local homes for local people

First time buyers and pensioners looking to downsize will be able to benefit from a radically new proposal that allows local people to buy their own plot of land and design their own custom built home. A Right to Build says that councils that fail to hit their own housing targets should have to release land to local people who want to design their own homes. In 2012, construction began on just 100,000 homes.

Posted by khards @ 01:15 PM 5 Comments

THAT Flippin' Apology

Mail: Culture Secretary's sprawling barn conversion

When is an apology not an apology. When it's made by a politician.

Posted by alan @ 08:53 AM 18 Comments

Saturday, April 5, 2014

Anyone for a crack den?

The Week: London House price bubble. Is it time to leave the captal?

I just loved this quote. 'The upshot, according to developer David Galman of Galliard Homes, is that even "a grotty studio of crack-den quality" costs over £1m in Mayfair.'.

Posted by britishblue @ 10:05 AM 0 Comments

Friday, April 4, 2014

It's not just London that is mad

The connection: 20 years' salary to buy Paris flat

DO YOU dream of owning a home in Paris? It could cost you as much as 20 times your annual salary, according FNAIM estate agents. I would not want to live in Paris or London, at least country properties are often cheap in France, although employment can be a problem.

Posted by vinrouge @ 09:19 PM 4 Comments

Flying without wings

The Independent: Housing bubble brewing – prices are now unaffordable for middle earners, says Business Secretary Vince Cable

Home ownership has now become “unaffordable” to people on middle incomes, Vince Cable admitted, as he warned that the bubble developing in the housing market could be more serious than during the last property crash.....The Lib Dem minister said that, in the mid-1990s, the average house price was three times average earnings. Today, at roughly the same stage of the economic cycle, the ratio is about 5.5. It rose to more than six before the crash of 2007.

Posted by jack c @ 11:52 AM 2 Comments

Report argues UK is not in housing bubble

Commercial Trust: New report predicts strong future for UK housing market

A report from property investment company Select Property examines what 2014 has in store for the UK housing market, and argues that as prices are still justified by market fundamentals we are not, in fact, experiencing a housing bubble...

Posted by ben @ 10:53 AM 4 Comments

London is crashing!! Get out quick

Lloyds Banking Group: Halifax House Price Index - March 2014

House prices fell by -1.1% in March. This was only the third monthly decline in the past fifteen months; this is in contrast to the previous fifteen months when there were eight monthly price falls. The monthly movements, however, can be volatile and the three month-on-three month change is a more reliable indicator of the underlying trend

Posted by khards @ 09:38 AM 13 Comments

Start Me Up

BBC: House prices accelerate again says Halifax

Don't make a grown man cry (apologies to Mick). "This week the Bank of England reported a sharp slow-down in the number of mortgages being taken out in February". OHhhh Noes - what can be done to manipulate the suckers into paying even higher prices?

Posted by alan @ 09:11 AM 2 Comments

Thursday, April 3, 2014

Good graphs and research from Ed Conway

The New Statesman: Five signs the London property bubble is reaching unsustainable proportions

1. Prices are rising very fast 2. Prices rises are no longer just in “prime” areas 3. Prices are high in real terms 4. House prices vs earnings are at historic highs 5. Mortgage burden hardly dropped in London

Posted by reticent @ 03:17 PM 5 Comments

THe HPC mentality is definitely becoming more mainstream

Grauniad: My old council flat sold for half a million – this madness can't end well

"Whether there's a crash or not, this property bubble is devastating. London is being hollowed out, turned into a playground for international finance, its communities left to hang" usual guardianista whining but more and more the sentiment is turning against high house prices. I overheard some of my secretaries today in the office chatting about the insane house prices and how their kids can never hope to buy a house...

Posted by pete green @ 12:53 PM 1 Comments

Vigilant! London up 18% in a year - you cant make this *%# up!

Propaganda Centeral: Osborne: Vigilance needed on household debt

Chancellor George Osborne said authorities must be "vigilant" on household debt after families added £1tn of debt in the 10 years to 2007. But, the value of "household assets are rising faster than household debts," Mr Osborne said. He was answering questions from parliament's Treasury Select Committee. Better mortgage regulation banning customers from getting mortgages without proving they can afford them should help, he said. MP Mark Garnier was questioning Mr Osborne on whether the UK's economic recovery was too dependent on people borrowing and spending. House prices will also need to be carefully monitored, said Mr Osborne.

Posted by khards @ 12:46 PM 4 Comments

MoneyWeek argues that the London property bubble can'€™t last forever

MoneyWeek: The London property bubble'€™s days are numbered

London'€™s extreme property prices are seriously out of whack with the rest of the country. But this could be about to change, says Matthew Partridge.

Posted by andrew.williams @ 12:21 PM 0 Comments

Proof of deliberate repression against the young

Department for Communities and Local Government: The impact of restricting housing supply on house prices and affordability

Regulatory and scarcity related physical supply constraints do not only explain high house prices but are the key explanatory factors of housing affordability. • Housing affordability is essentially driven by three factors: house prices (negative effect), household earnings (positive effect) and the availability and cost of debt financing (higher mortgage interest rates reduce affordability). • Our analysis implies that falling housing affordability has been driven in large parts by house prices and nominal interest rates. Housing affordability is low today despite very low nominal mortgage interest rates. This lack of affordability in large areas of the country is largely driven by regulatory constraints imposed by the British planning system.

Posted by khards @ 10:40 AM 3 Comments

Green belt scaremongering obscures a housing shortage that is truly frightening

Pieria: Green belt scaremongering obscures a housing shortage that is truly frightening

The real scandal is not the houses it's rumoured we might be planning on greenfield sites, but the actual number we are failing to build in the here and now.

Posted by m @ 08:30 AM 0 Comments

Wednesday, April 2, 2014

Cat, bag.

The Shields Gazette: House price rises a 'good thing'

It is a "good thing" that property prices are rising, the housing minister has said. Kris Hopkins said he and other homeowners "expected" their values to increase. But he denied the Government was fuelling hikes with policies such as Help to Buy - and insisted more homes had to be built. Mr Hopkins was pressed repeatedly on the BBC's Newsnight to say whether or not sharp increases in the market were positive. "I think yeah," he told presenter Jeremy Paxman. "I bought a house and I expect the value to rise, and I'm sure you did as well."

Posted by mark wadsworth @ 08:25 AM 12 Comments

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