August 2014 Archive

Saturday, August 30, 2014

London house prices rose 3.28% in July!!

The Guardian: Britain’s property boom roars back to life, powered by London

I had to do the calculation myself. The Guardian and others WILL NOT print the exorbitant amount houses have risen in July. Annualised, this would be a 39% increase. Recent shocking immigration numbers could be behind the rise, as Europeans flee Draghi's promised Euro devaluation and seek relative economic growth and lower taxes in the UK.

Posted by libertas @ 08:28 PM 29 Comments

Some sensible ideas - hence they won't happen

FT: Six ways to cool the housing market

"The IMF said the UK house price to income ratio was 30 per cent above its long-term average; only in France, New Zealand, Australia, Canada and Belgium was the discrepancy higher. Relative to rents, the margin was even wider at 40 per cent. " This quote from the article questions the common belief that this country has a housing shortage.

Posted by letthemfall @ 11:16 AM 1 Comments

Has London's housing market just popped?

Wealth Manager: Has London's housing market just popped?

Will the London house price boom end in a bang or a whimper? Evidence was leaning toward the former this month as a series of indicators appeared to begin to describe the second leg of a parabola.

Posted by sample @ 11:05 AM 0 Comments

Friday, August 29, 2014

No way there will be a crash just before an election

Mindful Money: Shaun Richards: If UK house prices are peaking then what happens next?

... I note that we have passed the pre credit crunch peak for house prices at least according to the Nationwide. But real wages are of the order of 10% lower than they were then and nominal wages are only 8% higher than they were six years ago. If we project that rate of wage growth going forwards then we have a problem for future house prices do we not? Yet we know that UK governments are extraordinarily resistant to letting them fall for any sustained period. So what rabbit will the authorities pull out of their hat next?

Posted by quiet guy @ 11:35 PM 7 Comments

BTL mortgage affordability - how rental cover affects what you can borrow

Landlord Zone: BTL mortgage affordability - how rental cover affects what you can borrow

How mortgage lenders use rental income to assess buy to let affordability. It isn't quite as simple as one would expect!

Posted by amelia @ 04:05 PM 0 Comments

How much can you afford to borrow?

TurnKey Mortgages: The House buying process

Whether this is your first house buying experience or your thirty-first, it is perfectly normal to have a lot of questions and concerns. Even if you are downsizing, this is still a huge investment and one you should enter into armed with as much information as possible.

Posted by amelia @ 03:11 PM 0 Comments

Nice chart showing artificially high demand and change in demand (%mom)

Hometrack: Survey reveals house price plateau on weaker demand

Proof that the shortage of houses for sale is cause by speculators rather than a physical housing shortage. Demand for housing has increased by 23% in the eight months to August, on a par with growth over 2013. However, compared to 2013, when demand continued to grow month on month over the year, there has been a clear slowdown in the latest three months of 2014. Leading London and the South East are registering an increase in the time on the market which is most marked in London. This forward indicator is showing that the market is about to go into full retard.

Posted by khards @ 09:11 AM 0 Comments

Here we go again

Reuters: Foxtons warning on slowdown overshadows special dividend

If London up 26% in a year isn't bubble, please tell me what a bubble looks like. As far as I'm concerned it's the new Nasdaq. Look out below.

Posted by sneaker @ 08:45 AM 0 Comments

Thursday, August 28, 2014

The Housing Echo-Bubble Is Popping

Zerohedge: And this time they can;t stop it!

There is nothing remotely "normal" about the echo-bubble's rise, and we can anticipate that its deflation will be equally abnormal. Conventional wisdom on the resurgence of the housing markets takes one of two paths: 1. Housing is not in a bubble, it is merely returning to "normal" 2. Housing is bubbly in some markets, but prices will continue to rise Here's an alternative view: housing is in an echo-bubble that's popping. Courtesy of the excellent Market Daily Briefing, here are some charts that make the case that the housing echo-bubble was just another speculative asset bubble that's popping, like every other speculative bubble in recorded history.

Posted by khards @ 05:23 PM 1 Comments

Ever wondered where all that chinese money is going apart from london

Cnn: U.S. runs out of investor visas as Chinese overwhelm program

The United States has exhausted its annual supply of EB-5 immigrant investor visas for the first time in the program's history following a surge of applications from Chinese nationals.

Posted by mark @ 02:11 PM 2 Comments

Cameron: 'The plan is working'

Sky: Parents 'Cut Back On Food To Pay For Homes'

More than one in 10 parents admit skipping meals to save money and avoid risking losing their homes, a survey has found. Three million working parents in England are being forced to cut back on food so they can afford to pay for their homes. A YouGov poll of working families has found that rising housing costs mean more and more of our wages are needed to keep a roof over our heads. The problem has got so bad that more than one in 10 parents - over 750,000 people - admit to skipping meals rather than risk losing their home. Recent figures from the government's English Housing Survey show households are spending 28% of their weekly income on housing costs alone - and that rises to 40% for private renters. -- Short - Tesco --

Posted by khards @ 07:49 AM 8 Comments

Tuesday, August 26, 2014

This is more like it!

Global Property Guide: UK home prices likely to fall 30% over four years

"The message is clear. Houses are now so over-valued that a prolonged period of falling prices is on the cards," says Roger Bootle, managing director of Capital Economics.

Posted by novice pete @ 10:10 AM 14 Comments

Monday, August 25, 2014

Investors continue to make life tough for normal homebuyers

Direct House Buyer: Property Investors Make it Tough for Normal Homebuyers

Buy-to-Let has always been one the UK’s property market success stories but at a meeting of the Treasury select committee on the 15th July, MP’s expressed their concern that Buy-to-Let is becoming part of the problem.

Posted by david jones @ 06:39 PM 1 Comments

Be afraid...

Telegraph: Half of homeowners fear interest rate rise

More than half of British home owners with a mortgage are concerned about the impact on their finances of a rise in interest rates and expect to pay an extra £590 a year in repayments.

Posted by nocibomber @ 09:48 AM 16 Comments

But I'm sure it will be OK as average earnings will be £500,000 pa

Sunday, August 24, 2014

UK's love of Henry Hoover to lead our ejection from the EU EU VACUUM BAN A BLOW FOR HOUSE-PROUD BRITS

Our vacuum cleaner is 1800 watts. No doubt, just as with incandescent bulbs, there will be industry exemptions. What about industrial uses and hospitals that require high wattage vacuum cleaners? The 900 watt limit for 2018 will ban even Henry vacuum cleaners. Maybe that will be the last straw that moves us from the EU?! Though our leaders are hoping that a balkanised UK following Scottish "independence", followed by Welsh 'independence" followed by Northern Ireland finding its own way will make us incapable of independence, being lackeys of Brussels for ever more. Hitler could not have dreamed of a better way for German dominance over the Fourth Reich.

Posted by libertas @ 10:36 AM 15 Comments

Friday, August 22, 2014

Boost for private landlords

Guardian: Leap in right-to-buy sales of council houses sparks call for reform

2,845 council houses were sold to tenants between April and June, a 31% increase on last year. 33% of these sales were in London, where discounts can go over £100k. Since the proceeds of these sales go towards building replacements such discounts leave less for that purpose. "A lot of council houses today will be in the hands of private landlords tomorrow. Fewer low-rent houses will drive low-paid people out of London" said a Green Party member of the London Assembly.

Posted by icarus @ 08:15 PM 2 Comments

Are the dominoes about to fall ?

FE Trustnet: I’m so bearish I’ve sold my house, says Cantor’s Tan

The analyst at Cantor Fitzgerald says that the global economy faces a downturn similar to 2008, and wants as little exposure as possible to risk assets as a result.China’s already overheated property market is on verge of collapse, according to Cantor Fitzgerald’s Charles Tan, who has sold his central London home and moved all his money back to Singapore in preparation for the severe repercussions on the global and UK economy.

Posted by jack c @ 10:12 AM 13 Comments

Thursday, August 21, 2014

''We in the UK have been living beyond our means for a very long time''

Mail: Osborne pockets £1bn in stamp duty bonanza as house prices soar... but Government borrowing still rises by £10bn

Between April and July stamp duty receipts soared by 25%, figures reveal But public borrowing continues to rise - up £9.4bn from 2013 to £32.4bn

Posted by hpwatcher @ 04:47 PM 5 Comments

The clue to the bubble is in the ownership

Financial Times: London among Europe’s least ‘liveable’ cities, according to index

London has become a haven for money from around the world, with at least £122bn of UK property now held by offshore companies. [...] Despite this huge demand from international buyers, London is a less attractive place to live than Detroit or Reykjavik, the EIU researchers found.

Posted by sneaker @ 08:57 AM 7 Comments

So if it's not liveability attracting people, it has to be tax or (ahem)

RT (aka Russia Today: Worse than Detroit? London one of least livable European cities

London's real estate prices keep soaring and foreign cash keeps pouring in, yet the world's most influential city has become one of the least appealing places to live in Europe, according to new figures. Despite this huge demand from international buyers, London is a less attractive place to live than Detroit, Cleveland, Manchester or Reykjavik, the Economist Intelligence Unit's latest livability ranking has found. This is despite a recent Forbes list of "The World's Most Influential Cities 2014" which ranked London as the most influential city in the world, because it attracts more than double the amount of foreign direct investment deals than New York, which came in second.

Posted by sneaker @ 07:34 AM 3 Comments

Wednesday, August 20, 2014

Wage Price Crash

Independent: Income for self-employed crashes 22%

The number of people who are self-employed has increased by over 730,000 in the past six years, but average income has slumped by 22 per cent, a new study has revealed. Around 4.6 million people now work for themselves, more than at any time in the past 40 years, according to the Office for National Statistics.

Posted by khards @ 08:05 PM 11 Comments

Could be a long winter

Telegraph: How August's slump in asking prices compares with the five worst monthly falls

Property data revealing the worst five months for asking prices suggests it could be a particularly bad November for sellers this year

Posted by garyb @ 08:02 PM 0 Comments

I call top.

LoveMoney: matchmaking for would-be homeowners

A new website aims to bring together complete strangers to pool their resources and buy a property together. But is it a good idea?

Posted by landofconfusion @ 03:09 PM 1 Comments

Growth in remortgages has outpaced purchases in July

FinancialReporter: Remortgage sees 21% surge back to action

The primary salary of remortgage applicants in July was £46,900, up by 7% year-on-year from £43,785: another sign of wealthier homeowners returning to the market in search of a better deal. Despite increased remortgage activity, the rush to lock into fixed-rate deals has slowed considerably since June, when 93.0% of remortgagers opted to fix. In July, just 89.0% of homeowners looking to remortgage chose a fixed-rate.

Posted by mountain goat @ 12:53 PM 0 Comments

Anyone want prices to go up further?

London Loves Business: Story 4 - How the economy is screwing over a whole generation of young people

Anyone who wants prices to go up more clearly doesn't have kids, or doesn't care about them, or has bought them a house.

Posted by sneaker @ 10:30 AM 1 Comments

Story 3 - suddenly basing an economy on oligarchs doesn't look to clever, does it?

Russia Beyond the Headlines: Are Russians leaving London?

[...] Who will replace "Russian spendthrifts"? It is clear that a cooling of Russians towards London should be of concern mainly to outfits selling luxury real estate, cars and jewellery. Their client base is indeed shrinking. And they are already busy thinking of how to replace the "Russian spendthrifts". They pin their hopes on the Chinese, whose spending is 8 per cent higher this year, but admit that it would not be quite the same. The richest Chinese in London are students from rich families. Whereas the Chinese millionaires and billionaires themselves so far prefer to invest and spend their money elsewhere: in Hong Kong, Sydney or New York. There are also African oil tycoons, although they are no match for their Russian counterparts. [...]

Posted by sneaker @ 09:40 AM 0 Comments

Story 2

The Guardian: Why are rich Russians so obsessed with buying up London property?

"Your average Russian will bargain hard. They have money, but they won't overpay." Yes, pffff, that's right, Prime Central London got to insane prices because they won't overpay. Oh absolutely.

Posted by sneaker @ 09:36 AM 2 Comments

Story 1

London Loves Business: Why do Russians love London?

With no mention of the legal or tax systems this article entirely misses the point. People will always come up with justifications that sound plausible but whenever there is an inexplicable price-bubble it is *always* because the path-of-least-resistance is defined by taxation and law. Follow the money, through a series of steps from dodgy to respectable as it is progressively washed in steps until it finally turns up in the UK looking clean and respectable. Know Your Customer requirements are based around pieces of paper and pieces of paper in much of the world can be forged. It is amazing to me that these points are missing from public debate. Doing my bit to get them in there.

Posted by sneaker @ 09:33 AM 1 Comments

Tuesday, August 19, 2014

Repossessions and highest UK council tax...

Dorset Echo: Borough's toll of reposessions

WEYMOUTH and Portland has been identified as a housing repossession hotspot. New research, based on data recorded by the Ministry of Justice and released by the housing and homelessness charity Shelter, found that one in 74 homes in the borough was at risk of having a possession claim on it, with 244 homes repossessed in the last year. More than 13,200 homes a year area are at risk of repossession or eviction in the South West, the equivalent of 36 every day and alongside Gloucester, Weymouth and Portland has the highest repossession rates in the region. Weymouth and Portland is ranked 98th nationally, but regionally it is top based on the rate of possession claims on rented/mortgaged. Also, recently Weymouth and Portland reportedly had the highest UK council tax rate - correlation?

Posted by hyrax @ 07:49 AM 0 Comments

Monday, August 18, 2014

Blame the Russians!

Zerohedge: UK Home Prices Have Biggest August Plunge On Record As Russian Sanctions Sink In

London home prices fell in August by 5.9%, the plunge the biggest since Dec 2007 (and 2nd biggest drop on record). Since western sanctions on Russian oligarchs hit 3 months ago, home prices have fallen in London (especially the highest-end regions, such as Kensington -7%) and now that weakness is accelerating and spreading across the entire UK. As Rightmove reports, the 2.9% drop in UK home prices is the worst August on record.

Posted by khards @ 07:41 PM 21 Comments

Do svidaniya, Chelski!

Bloomberg: London Home Asking Prices Plunge Most in More Than Six Years

If you don't want a bust, don't have a boom. Especially not one based on dodgy offshore oligarch money.

Posted by sneaker @ 06:42 PM 0 Comments

Storm brewing

Bloomberg: China Home Prices Fall in Majority of Cities on Weak Demand

China’s new-home prices fell in July in almost all cities that the government tracks as tight mortgage lending deterred buyers even as local governments eased property curbs. Prices fell in 64 of the 70 cities last month from June, the National Bureau of Statistics said today, the most since January 2011 when the government changed the way it compiles the data. Beijing prices fell 1 percent from June, posting the first monthly decline since April 2012. “The falling trend of China’s property market has no sign of improving,”

Posted by mark @ 11:57 AM 1 Comments

Sunday, August 17, 2014

Inevitable price slump

Dailymail: Property prices show falling trend

Interesting comments from estate agents and bloggers say it all really....all bubbles burst And this is a big one

Posted by taffee @ 12:55 PM 14 Comments

Friday, August 15, 2014

'Fake it till you make it' - Debt now recycled into GDP

Telegraph: UK economy winning global growth race

'The UK economy grew more rapidly than previously thought in the second quarter of 2014, beating output expansion in the US, Japan and European states' - great comparison, given all other economies are on the floor...

Posted by hpwatcher @ 03:47 PM 9 Comments

Thursday, August 14, 2014

It just needs a bit of fettlin

Euronews: UK inflation gauge for housing costs loses ‘official statistic’ status

The UK Statistics Authority announced on Thursday that CPIH a measure of British inflation launched last year that reflects housing costs will no longer be treated as an official national statistic while it is being improved. In November 2013 the Authority upgraded CPIH to an official national statistic and as recently as April the BoE announced it was set to stay for another 18 months before a recommendation on whether it should replace CPI as the BoE’s inflation benchmark was to be made.

Posted by enuii @ 10:38 PM 1 Comments

The only way from here is down

Dailymail: Property market 'is cooling down'

Further signs that the property market is cooling down have been reported by surveyors, who said the number of people looking new homes has fallen back for the first time in a year and a half. Council of Mortgage Lenders said that the affordability of a home is currently "stretched particularly, but not exclusively in London" [even at 0.5% base rates!]. A report from Halifax released earlier this month found that average UK house prices now equate to more than five times wages for the first time since summer 2008 [even at 0.5% base rates!]. The conclusion is prices have peaked at 0% base rates and the only ways from here is down. __GAME__OVER__

Posted by khards @ 08:13 AM 8 Comments

Wednesday, August 13, 2014

Interest rates targeting wage deflation

Daily Mail: Falling wages likely to delay any interest rate rise until next year

Mr Carney revealed he would place ‘particular importance’ on workers’ wages picking up when considering whether or not to increase rates from their historic low of 0.5 per cent. The remarks, which came after the Office for National Statistics revealed wages had fallen for the first time in five years in the three months to June, suggest there may not be any interest rate increase until just before the next election. Mr Carney also revealed that the Bank of England is clueless.

Posted by khards @ 05:41 PM 8 Comments

Bank of England remains tight-lipped on interest rates

TurnKey Mortgages: BoE August 2014 inflation report

Mark Carney delivered the Bank of England's quarterly inflation report press conference this morning (13 August 2014), and though his message on interest rates is the same, he remains tight-lipped as to when borrowing costs will finally start to rise.

Posted by ben @ 04:59 PM 0 Comments

A low growth, low wage and debt economy...

Telegraph: Wage growth in shock collapse as unemployment rate continues to fall

Average weekly earnings contract for first time in seven year amid buoyant jobs market. British workers earned less between April and June than they did in the same period last year, even as the unemployment rate fell once again, official figures showed.

Posted by hpwatcher @ 10:11 AM 24 Comments

Housing crisis to be solved by deporting people who make honest livings

The Independent: The Government must intervene to unmask foreign buyers inflating a new property bubble with questionable cash

Two parallel economies in one jurisdiction: one for the kleptocrats, another for everyone else.

Posted by sneaker @ 09:09 AM 5 Comments

Tuesday, August 12, 2014

Inflation to collapse on petrol price slashing

Telegraph: Russia vulnerable as oil prices hit nine-month low on IEA 'glut' warnings

This could send Europe into deflation. For good reasons, but the indebted States of Europe will want negative rates to deal with their debt piles. Britain will be forced to either retain low rates or lower them even more. House price boom will be a result.

Posted by libertas @ 11:31 PM 6 Comments

Workers too lazy to resign!

Torgraph: Slow growth in wages blamed on workers too worried to leave

This article blithely states that the reason why there is no wage inflation, (an apparent policy goal for the BoE), is because people are too scared to leave their jobs. However "fortunately" the improving economy will giver people lots of reasons to resign and enable wage inflation and worker shortage for companies. A brief nod to foreign workers holding wages down.

Posted by stillthinking @ 09:21 PM 4 Comments

The heady days of cheap credit, mortgages and interest rates

Telegraph: Britain’s consumer credit market is a giant ticking time bomb

Britain’s army of borrowers are being lulled into a false sense of security, with the cost of borrowing still falling, not rising, a remarkable and little-understood state of affairs is storing up immense problems for the future. The figures are remarkable with the number of first-time buyers up 19pc year on year in June thus keeping the housing market boom on track. Elsewhere interest rates on a £10,000 unsecured loan is down by 5.7 percentage points since 2009 no wonder UK domestic car sales are booming. Conversely, there will nowhere to hide, no possible Plan B to buy time when interest rates start to go up. Comments section as ever is enlightening, especially in its general confusion over the issue.

Posted by enuii @ 07:01 PM 2 Comments

MP actually worse of than his minimum wage constituents

Daily Mail: Foreign Office minister Mark Simmonds quits his post and moans: I just can't live in London on £120,000

Most people have bashed this guy. But consider his actual income: £25000 rental allowance (goes on hotel bills and train fares) plus £89,000 salary. Net salary £58,761, probably 5k of that goes on additional expenses of being an M/minister, eg decent clothes for public role etc, so £53.5k left. No child benefit. Now consider consituent family. Father 35 hours a week minimum wage, mother does not work, live in council house, £400 per week rent.Three children as per the MP. They get £10.750k net after tax/NI. On top of that they get £11,458 child and working tax credit, £797 council tax support, £18,460 housing benefit, £2,475 child benefit. Net income £43,940. So the MP has all the long hours, separation from his family for £10k a year. I don't blame him. Durhamborn is right

Posted by gungarius @ 10:35 AM 1 Comments

Monday, August 11, 2014

All house prices are off if we allow nuclear to displace safe coal

BBC: EDF shuts two nuclear power stations after cracks in boiler

We have been duped about CO2, and our lives and the value of our land and property and lives are at high risk. CO2 is a non-toxic trace gas that plants breathe, yet in a plan to globally tax and regulate all human activity, they had to demonise life itself. Yet CO2 is a trace gas measuring in parts per million and is far less capable of storing heat than water vapour, which is a whopping 2% of the atmosphere. Note, central heating uses water, not CO2, because water is a better "greenhouse" chemical. Incredibly, photosynthesis increases by a whopping 50% when CO2 levels in greenhouses is raised to 1000ppm, which is why commercial greenhouses do that (Ontario Govt. study in the thread below), and plants need less water with more CO2. More CO2 = more life, nuclear = death and destruction.

Posted by libertas @ 08:15 PM 29 Comments

London Crash Coming

CNBC: London house price growth seen tumbling 80%

London house prices will grow by just 3 percent next year, according to leading U.K. estate agent Hamptons, which has halved its forecasts for house price growth in the capital in 2015. I know this doesn't talk about a crash in prices but more a crash in house price inflation but this is the trend we need to see before prices go south. Besides the newspapers are always too late and the estate agents will always try to portray it better than it actually is

Posted by amazon @ 12:49 PM 3 Comments

Sunday, August 10, 2014

Property crash is on

Dailymail: Property crash within months

Supply probably now exceeding demand and that's before rates rise...expect a rush For the exits...unfortunately property is very illiquid so it looks like a potential Nightmare

Posted by taffee @ 07:37 AM 14 Comments

Friday, August 8, 2014

Ultimately house price bubble is the result of debasing our currency

Market Oracle: How U.S. Dollar Destruction Threatens the Global Economy

This is an excerpt from a new book by Steve Forbes. He makes many points how government and Central Bank debasement of money, QE just being the latest version, causes a lot of our financial problems. But one point he makes is that when people don't trust their currency/savings they buy hard assets instead. Houses being one of those.

Posted by mountain goat @ 12:52 PM 10 Comments

Hometrack confirms the inevitable...

This is money - mail: House price growth continues to slow in July as buyers are put off by tougher mortgage checks and fears of an early rate rise

- UK house prices rose 0.1 per cent in July, the slowest growth since February 2013 - House prices in London stalled, with 11 postcodes recording price falls - The gap between supply and demand narrowed further in July, especially in London

Posted by hpwatcher @ 12:16 PM 0 Comments

Thursday, August 7, 2014

Hot money to come from ECB carry trade from negative European rates into London property

Telegraph: Germany close to recession as ECB admits recovery is weak

German bonds yields plunged to a historic low and two-year rates briefly fell below zero on Thursday on fears of widening recession in the eurozone, and a flight to safety as Russian troops massed on the Ukrainian border.

Posted by libertas @ 11:20 PM 15 Comments

Great news for BTL'ers: Temp' accommodation can cost up to 3x as much as a 2-bed council house.

Sky News: Families Stuck In Temporary Homes For Years

The number of families with children overstaying in B&Bs has quadrupled since 2010. Henry Gregg from the National Housing Association has said: "We just don't build enough homes." But Housing minister Brandon Lewis counters: "Councils have a responsibility to house families in settled accommodation as quickly as possible [...] (they) been given greater powers to provide better privately rented accommodation." --- Bottom line: you pay, they play.

Posted by landofconfusion @ 01:41 PM 0 Comments

Grand Designs Camden Workshop for sale

Planet Property: Grand Designs Camden Workshop for sale

It was one of the most agonising conversions ever to feature on the Grand Designs … now it’s for sale for almost £3 million

Posted by the planet @ 12:40 PM 0 Comments

More signs that London's property market is about to crash

MoneyWeek: Is London's property bubble starting to burst?

House price indices are giving a mixed picture. While they all agree that the surge in prices of the last year has died down, some indices suggest that prices may have peaked. Others suggest they are still going up (albeit at a slower rate). However, there are two factors which mean the correction may come sooner than later.

Posted by andrew.williams @ 10:57 AM 0 Comments

Best Three Year Fixed Mortgage Rates

Telegraph: The cheap mortgage deals lenders don't advertise

Research conducted by shows that the average three-year fixed mortgage now costs 3.79pc, down from 3.83pc in January and 4.06pc a year ago. Three year fixed mortgage rates have decreased to new lows, making them cheaper than a two or five- year deal that are typically promoted by lenders.

Posted by ennessprivateclients @ 10:34 AM 1 Comments

Wednesday, August 6, 2014

Perspective that USA home ownership has peaked

FA: Gundlach Details How Demographics Will Alter Housing, Hurt Home Builders

This guy is the new "bond-king" and has some interesting views. Home ownership has peaked because baby-boomers were the selfish generation. Their kids are quite happy living in their parents home or renting, not so obsessed about owning a home. May apply to the UK in future too?

Posted by mountain goat @ 12:59 PM 7 Comments

Tuesday, August 5, 2014

FCA proposes loan-to-income cap for 1 October

TurnKey Mortgages: Mortgage income cap proposed for 1 October

In response to recommendations from the Bank of England, the FCA has proposed that lenders restrict high income multiple lending by 1 October. If implemented, lenders will be able to issue no more than 15% of new loans at more than 4.5 times the borrowers' income - potentially hitting first-time buyers, and borrowers in the South East and London in particular, if house prices continue to rise at their current pace.

Posted by ben @ 05:46 PM 1 Comments

Forget the Great Depression......

The Independent: Britain has taken longer to recover from recession than at any time since the South Sea Bubble

This is the slowest recovery from recession for over 300 years, says Danny B, "and the recovery was doing OK until the Coalition took over".

Posted by icarus @ 09:49 AM 5 Comments

Bank books now bulging with mortgage debt

Telegraph: Is this the end of Help to Buy?

The state scheme to help first-time buyers looks under threat as Lloyds caps loans at £150,000 amid fears of a house price bubble. Britain’s largest mortgage lender has reduced the amount it will lend to first-time buyers under the Help to Buy scheme. Lloyds Banking Group has capped its lending at £150,000, down from £500,000 – a reduction of 70pc.

Posted by hpwatcher @ 07:59 AM 6 Comments

Monday, August 4, 2014

Renters Win

Bloomberg: London Renters Win in Billionaire Backyard as Prices Soar

College student Phil Morris and his three roommates split a monthly rent of £2,600 for a four-bedroom row house in London’s Fulham district. A new homebuyer would pay about three times that much for a mortgage on a similar property in their postcode.

Posted by cornishman @ 08:05 AM 13 Comments

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