September 2014 Archive

Tuesday, September 30, 2014

Oooooh noooooo

Telegraph: Mass default looms as world sinks beneath a sea of debt

On a global level, growth is being steadily drowned under a rising tide of debt, threatening renewed financial crisis, a continued squeeze to living standards, and eventual mass default.

Posted by mark @ 09:48 AM 9 Comments

Prices resume falling

Nationwide: UK house prices fell by 0.2% in September

UK house prices fell by 0.2% in September, following sixteen consecutive monthly price rises. Annual house price growth in London slowed somewhat, from 25.8% in Q2 to 21% (-4.8%) in Q3. Nevertheless, at £401,072, average prices in the capital reached a record high, 31% above their 2007 peak. In the UK as whole, prices are around 2% above their pre-crisis peak (excluding London they are less than 1% above their 2007 peak). “Price growth may soften further in the final quarter of the year, given the high base for comparison from Q4 2013. However, the outlook remains uncertain. There have been tentative signs from surveyors and estate agents that buyer demand is starting to moderate.

Posted by khards @ 09:15 AM 10 Comments

Start of a new trend

This is Money: You wait ages for a decent 5-year fix mortgage and then five come at once: Nationwide and Barclays latest to cut rates back below 3%

Anybody viewing bond rates will have seen that the longer term bonds are collapsing as the yield curve flattens like a pancake. My prediction is that this trend will continue unabated until we see affordable 15, 20 and even 25 year fixed terms. This is a longer term trend yet, since fixed rates were not even at all available in the 1970's for most people. With oil prices starting to collapse, wages not rise for at least three years and petrol prices plunging 5p in recent weeks, expect lower central bank rates before they rise. Expect negative rates before we see them much higher.

Posted by libertas @ 12:18 AM 3 Comments

Monday, September 29, 2014

Sainsbury's slashes petrol 5p/litre

Telegraph: Petro Price Wars

Did I hear DEFLATION? I bet those folks sucked into five year fixed rates are squirming now.

Posted by libertas @ 11:53 PM 3 Comments

Interest rates set to remain low for AT LEAST three years

Metro: Three more years of wages misery: Middle-income earners hardest hit as real pay continues to fall

This, along with Osborne's announced austerity means DEFLATION, countered by money printing that will ramp house prices.

Posted by libertas @ 11:52 PM 1 Comments

Wise words from down under - equally appropriate to UK

The daily Reckoning: Pareto’s 80–20 rule and Economic Rent

"Pareto’s pioneering study was actually in relation to population and wealth. His very first piece of research found that 20% of the population owned 80% of the land in Italy, and he observed the obvious inequality that followed. He then carried out surveys on a variety of other countries. To his surprise, he found that a similar distribution applied. Now, the fact that land ownership is concentrated should not have surprised Pareto. And it shouldn’t surprise you, simply because land is economically worthwhile to accumulate — to collect the economic rent. And since only 20% of the people are collecting this rent, this leads to an obvious concentration of wealth."

Posted by pete green @ 02:19 PM 0 Comments

When government intervention helps the free market

Forbes: In World's Best-Run Economy, House Prices Keep Falling -- Because That's What House Prices Are Supposed To Do

A thought provoking article on government mandated house prices in Germany - but it is fundamental to their economic success - of course this would be better achieved by a Land Value Tax than government mandated prices and borrowing limits.

Posted by pete green @ 01:39 PM 1 Comments

Interest in taking on record levels of debt in decline

Housing market stalls and GDP is re-evaluated: Cityam

This was not news for me as I have been watching the mortgage market very closely via google trends. The reason for using google trends is that I believe it to be less manipulated than bank/government stats. If you also take trends for Rightmove's website interest and the above 'mortgage loan' website category you will find a strong correlation between google search interest and property prices. There is a few months lag between prices falling and interest in mortgages falling, but that could be the land registry and sales process lag. You will also find that price rises also correlate with increased interest in mortgages. The above chart if for UK only.

Posted by khards @ 10:51 AM 5 Comments

Less money chasing and extra 130k properties this autumn

Reuters: UK mortgage approvals fall more than expected in August

The Bank of England said mortgage approvals numbered 64,212 last month, the weakest reading since May, and down from 66,100 in July. Analysts had forecast a modest fall in approvals to 65,000. Monthly mortgage approvals are still short of the 90,000 level seen before the 2008 financial crisis, and below a recent peak of more than 76,000 in January. Recent surveys of the housing market have suggested the pace of its recovery has slowed, after rapid growth in activity and house prices at the start of the year. The British Bankers' Association reported last week that the number of mortgages approved by its members fell to a 12-month low in August.

Posted by khards @ 10:09 AM 6 Comments

The students who pay £1000pw in Prime Central London

Wetherell: The students who pay £1000pw in Prime Central London

Students from wealthy families from Middle East, Russia and Africa are now the biggest luxury rental market in Central London, according to a study by London Central Portfolio. Naomi Heaton, chief executive of London Central Portfolio, said students are now the firm's biggest market, occupying 41% of its properties at an average of £600 a week, or more than £2,500 a month. The number of wealthy, overseas student renters in the areas of Mayfair, Belgravia, Knightsbridge, Chelsea and Kensington, has doubled from 12% to 29% between 2006 and 2012.

Posted by anna @ 08:54 AM 0 Comments

Saturday, September 27, 2014

DEFLATION all around

Zero Hedge: Russia Discovers Massive Arctic Oil Field Which May Be Larger Than Gulf Of Mexico

This could be enough to tip oil futures smacking down towards $80 or $60 a barrel. Asset values across the board will tumble, European rates will turn SERIOUSLY negative, and all those fancy pants renewables projects collapse. With central banks misinterpreting this as a monetary issue when it is in fact a technological revolution, QE and negative rates will send property prices to the moon.

Posted by libertas @ 09:43 PM 18 Comments

Here we go again

Telegraph: Cut-price homes for the under-40s through David Cameron’s new help-to-buy scheme

ZIRP. Help to Buy v1. Now it's Help to Buy v2 with an ageist twist. I wait with interest to see what other wheezes a desperate government comes up with as the election approaches. "First-time buyers are to be targeted with a new help-to-buy scheme which will see 100,000 homes built on brownfield sites, the Prime Minister has announced. Buyers under the age of 40 will be able to purchase at 20 per cent below the market rate to stop them being “locked out of home ownernship”.

Posted by quiet guy @ 12:37 PM 12 Comments

Friday, September 26, 2014

What is the age limit for a mortgage?

TurnKey Mortgages: Mortgage age limit

A guide to the options available to mortgage borrowers who are nearing retirement.

Posted by ben @ 03:57 PM 2 Comments

This 2.7% monthly rise is an eye watering 37% annualised

Daily Mail (Land Registry stats for August): Booming London property driving UK house prices as capital's homeowners see £12,279 gain in a MONTH

Now, this August rise is materially lower than the 3.3% rise recorded by Land Registry for July, which annualised out at 47%. However, this drags up the annual rise to 21.6%. This is for a month that normally sees declines. What have I been telling you folks. European quantitative easing has only just begun and European core bond rates are steeply falling into negative territory. Much of this cash is flowing into London, and London just bagged the world's first overseas Chinese bond issuance. Nationally, prices are yet to breach the 2008 peak, so this bull market has a long, long way to go. Brent oil just dropped below $95, and so inflation is plummeting into deflation and Carney's musing of a rate rise are just that. He cannot rise rates against deflation and a collapsing Eurozone.

Posted by libertas @ 01:06 PM 13 Comments

Yippe - gravity may now take effect

Torygraph: House prices have finally started to fall after two years

The september uptick has evaporated...

Posted by pete green @ 09:32 AM 1 Comments

A reason to stay in the EU

Thursday, September 25, 2014

Merryn de-constructs Ed's mansion tax...

MoneyWeek: Even if you want higher taxes, Labour’s mansion tax is a really stupid idea

Ed Miliband's proposed mansion tax is a ridiculous idea. It is impractical, expensive to collect, and will lead to a whole lot of unintended consequences.

Posted by andrew.williams @ 11:30 AM 1 Comments

Discussion of LVT

FT: Property: Land of Opportunity

To its advocates, land value tax has almost magical powers. Has its moment finally come?

Posted by alex @ 08:16 AM 0 Comments

Wednesday, September 24, 2014

UK's most charismatic landlord is courting foreign investors

Telegraph: 'First Chinese, now Americans – they all want my £250m buy-to-let empire in Kent'

Controversial teachers turned landlords Fergus and Judith Wilson say the demand from buyers for their Kent-based buy-to-let empire is rocketing. And most of the potential buyers are from overseas, Mr Wilson said – while interest from UK investors such as pension funds has fallen away. The portfolio consists approximately 900 tenanted houses in and around Ashford, Kent, valued at between £275,000 and £300,000. Following reports that Chinese bidders had emerged in recent days and were "queuing" to buy, Fergus Wilson told the Telegraph that they were "far from" the only parties apparently casting an eye over his vast portfolio of homes.

Posted by quiet guy @ 01:30 AM 24 Comments

Tuesday, September 23, 2014

Are you one of the lucky ones that lives in the most expensice city in the world

Daily telegraph: Property prices - London now the most expensive city in the world

London is now the world’s most expensive city for companies to locate employees, overtaking the previous leader, Hong Kong, which had topped the ranking for five years. Of course this is excellent news and evidence that prices will continue to soar upwards for ever.

Posted by britishblue @ 08:09 PM 13 Comments

Monday, September 22, 2014

Now French 2yr bonds NEGATIVE

CNBC: Europe Crisis Is Resistant to Remedy of Low Rates

Meanwhile, Telegraph is stating that it is 30k Euros less to buy a house in France due to lower rates, yet their prices keep falling. No doubt, Savvy French will be borrowing depreciating Euros to buy appreciating properties in London. Perfect storm. There is no firewall between the UK and a degenerative French Socialist / Communist economy collapsing and total adherence to a failed Euro currency that cannot function without a full debt and political Union that nobody will agree to. Or maybe a proper crisis will be created to generate a force majeure, where all parties are "forced" into "difficult" decisions that were pre-planned decades prior.

Posted by libertas @ 11:15 PM 16 Comments


Metro: Telescope made using a 3D printer captures incredible picture of the moon

Monetarists & "free market" economists such as Mises Institute folks bleat on about inflation, they forget the market's ability to find solutions to monetary expansion. This 3D printer solution reduces the cost of a telescope ten fold. Insignificant you say? Irrelevant to houses? Well, we are just at the beginning of the 3D printing REVOLUTION, which will see prices collapse across the board with larger business models in some industries becoming irrelevant as folk just buy designs & press print, either in 3D print shops or, with their home printer. This is one example of why we will experience Japanese style deflation, because Japan is where the technology came out first. Central banks mis-interpret this deflation as bad thing and will fight it with persistent low rates & QE.

Posted by libertas @ 06:13 PM 8 Comments

Saturday, September 20, 2014

All going to plan

Telegraph: The average working life isn't long enough to pay for a house

Also this week, the National Housing Federation produced research showing that two in three first-time buyers now got help from their parents, up from one in three five years ago. Of today’s children, it predicted that only those from the “wealthiest families will be able to buy a home”. It also poured cold water on any claims by today’s older generation that buying a house was as difficult when they were young. The ratio between property prices and wages has shifted so enormously that house buying today is as difficult for buyers with two wages as it was 35 years ago for a single borrower on just their own income.

Posted by quiet guy @ 11:05 AM 12 Comments

Thursday, September 18, 2014

Could Property-Price Pumping become illegal?

BBC News: 'Pyramid scheme' operation sees six women convicted

What these women did was clearly wrong: they were using misleading promises and an unsustainable financial model to make thousands of pounds. Victims lost money (although many victims were looking to get rich quick, so sympathy might be limited). Of course, this is a world away from the property market, where banks and mortgage companies use misleading promises and an unsustainable financial model to make billions. Unlike a real ponzi scheme, the property boom depends on ever-increasing amounts of money, invested to make gains, and sustainable as long as ever-increasing amounts of money keep coming in. Oh, hang on a minute.... But seriously, is there a way the new anti-ponzi/pyramid scheme laws could be brought against part of the property cabal?

Posted by smiley @ 04:52 PM 2 Comments

Scottish Independence Referendum - Possible Effects on Commercial Property

Fisher Jones Greenwood: Scottish Independence Referendum - Possible Effects on Commercial Property

As Scotland prepares to go to the polls on September 18, ex-president of the British Property Federation David Hunter has warned that a Yes vote could have a ‘drastic, negative impact’ on commercial property values in Scotland.

Posted by mattfjg @ 02:01 PM 0 Comments

MoneyWeek article on current slow-down

MoneyWeek: House prices: pausing for breath or the start of something big?

Is Britain's summer house-price slowdown just a pause before the next leg higher, or is it the start of something more ominous?

Posted by andrew.williams @ 11:03 AM 2 Comments

Wednesday, September 17, 2014

Does this tell us that the Euro ix doomed?

Zero Hedge: Germany Issues 2Y Note At Record Low Yield Of -0.07%

As noted previously, BOE cannot raise rates whilst German rates are raging towards negative. Do these bond rates suggest that the Eurozone is collapsing? Investors betting on German Exit? If the Euro does collapse and Scotland votes No, where does Ireland turn for support? Britain paid £7bn towards the last Irish bailout, ECB will be too busy this time around, if it still exists. I feel that 18th September, if Scotland votes no, will be the low water mark for the UK. With even most N.Irish Catholics pro Union now, we could well see EIRE return to the fold, under a very new form of Union, a Federal United Kingdom, where Westminster acts much in the way of Washington, managing currency, defence, international treaties and various other services if and when the States need or request it.

Posted by libertas @ 05:40 PM 14 Comments

Tuesday, September 16, 2014

UK inflation rate down to 1.5%

BBC: UK inflation rate down to 1.5% as food and petrol costs fall

"It means the Bank of England remains under little pressure to raise interest rates in order to keep CPI inflation at or below its target rate of 2%."

Posted by doomwatch @ 12:28 PM 10 Comments

World depression deepens, but cheap cash continues to flood into UK housing

BBC News: Six regions hit new house price peak, says ONS

Six regions of the UK now have average house prices higher than their pre-financial crisis peak after values rose again in July, figures show. The East Midlands, West Midlands and South West of England have joined London, the East of England and the South East of England in rising above the peak of late 2007 and early 2008. The Office for National Statistics (ONS) said UK property prices were up 11.7% in the year to the end of July.

Posted by hpwatcher @ 11:57 AM 13 Comments

BBC's latest answer to a UK housing shortgage

BBC: Download, print, build your Martian home in 24 hours

"Imagine opening the curtains in the morning and instead of grey skies and rain, looking out at a rust-coloured rocky panorama" The year is 2045. You have woken up on Mars. Colonising Mars could happen sooner than you think. Elon Musk plans to build a city there. Nasa wants to send people by 2035. Then there's the Mars One mission, Big Brother for the slightly suicidal.

Posted by jack c @ 11:42 AM 0 Comments

Monday, September 15, 2014

Permanent asset & currency devaluation relative to rUK will occur

Scotland Herald Tribune: This Scottish paper suggests the falls are short term. Reality is that Scotland needs permanent deva

This Scottish paper suggests the falls are short term. Reality is that Scotland needs permanent devaluation in all assets and currency if it is to go it alone, just as should have been the case in Greece. "Yes vote could see a sharp fall in the average house price in Scotland in the "short-term", property pricing website Zoopla has suggested. Scottish independence could lead to another UK housing market crash that wipes £31,000 off the average house price in Scotland, causing as big a crash as the 17.5% fall seen during 2008, leading property website Zoopla has warned."

Posted by libertas @ 10:30 PM 3 Comments

Zoopla predicts repeat of 2008 17.5% crash if Scots go solo

Huffington Post: Scottish Independence "Could cause house price crash"

Scottish independence could lead to another UK housing market crash that wipes £31,000 off the average house price in Scotland, causing as big a crash as the 17.5% fall seen during 2008, leading property website Zoopla has warned. Having mortgages issued in a foreign country, potentially in a foreign currency, with huge currency risks, could combine with reduced competition and higher costs combined with the lack of Bank of England lender of last resort facilities to create a perfect storm. Clearly, a housing and construction slowdown could cause havoc with tax receipts, damaging Salmond's ability to fund his promises.

Posted by libertas @ 10:23 PM 3 Comments

Yes could be bad for Scottish house prices

MoneyWeek: Independence could be ‘catastrophic’ for Scotland’s house prices

A Yes vote could be very bad for house prices in Scotland, says MoneyWeek's Merryn Somerset Webb.

Posted by andrew.williams @ 01:43 PM 5 Comments

Business as usual from MSM

Telegraph: UK house prices will fall if Scotland votes for independence

I was surprised that we hadn't seen this story before; it's the perfect mix of fear and optimism. As long as those silly Scots don't rock the boat then all will be well ... Incidentally, I'm doubtful that Scottish independence would hurt English prices much whereas Scotland might be a different matter. And no, in case you're wondering, I don't want to see a 'Yes' vote.

Posted by quiet guy @ 01:43 PM 7 Comments

Interesting read

Bloomberg: Bad Loans Could Bust China

China's "severely under-capitalized financial system," "imbalanced growth" and chronic "overcapacity" all remind Merrill Lynch analysts Naoki Kamiyama and David Cui of Japan in 1992, when its bubble troubles first began to paralyze the economy.

Posted by mark @ 01:26 PM 4 Comments

Making an offer and instructing conveyancers

TurnKey Mortgages: The house buying process - Part 4

You do not have to offer the full price of the property if you don't want to, but be realistic! If the property has been on the market a long time, a lower offer is more likely to be accepted by the vendor, but if the "For Sale" sign is brand new then the vendors may decide to wait for a better offer to come along.

Posted by amelia @ 10:15 AM 0 Comments

Saturday, September 13, 2014

Ah yes, house prices are still going to go up forever ... right?

The Telegraph: Investors pull £17bn from UK at fastest pace since financial crisis

[...] “Sterling outflows have been an issue since the end of June, but they really gathered pace in August,” said Michael Howell, managing director of CrossBorder Capital, who compiled the index of UK financial investment. The report shows that inflows have “effectively collapsed”, said Mr Howell, adding that only Japan is now seeing money being pulled out of the country at a faster rate. [...] Please ignore the sanctions/exodus of Russian money, the slow-down in China, the OECD tax haven crackdown, the possibility Scotland might leave the UK which might leave the EU & that money is being pulled from the UK in massive amounts and UK living standards are poorer than many other cheaper countries. London property is going to double in the next three weeks regardless.

Posted by sneaker @ 02:20 PM 3 Comments

Thursday, September 11, 2014

Cost of bank renting about to increase!

Guardian: Bank of England boss: interest rates will rise months before wages do

The Bank of England's governor, Mark Carney, has warned trade union members that they face higher interest rates next spring before they receive rises in real wages. Speaking at the annual meeting of the Trades Union Congress on Tuesday, Carney said interest rates could start to climb from their record low of 0.5% in early 2015, while above-inflation pay rises were not expected before summer at the earliest. He added that in order to claw back wages that have declined in real terms since the recession, workers will need to improve their productivity, upgrade their skills and work more effectively.

Posted by khards @ 04:19 PM 19 Comments

Wednesday, September 10, 2014

Looks like a scam, sounds like a scam...

Money Observer: Prime central London property fund approved for Nisa wrappers

Nisa investors looking for a more rewarding low-risk home than cash for their £15,000 allowance can now get exposure to the prime central London residential property market, through the latest collective fund to be launched by London Central Portfolio (LCP). The company specialises in purchasing, upgrading and letting out prime London flats. London Central Apartments II (LCA II) - the fourth closed-ended, fixed-term central London property fund it has launched - is aiming to raise around £100 million in subscriptions. The fund is targeting a return of 12 per cent a year. On a £15,000 investment that amounts to a tax-free payout of £12,150 at the end of a five-year term - an 81 per cent return over the period.

Posted by khards @ 09:24 PM 5 Comments

If it sounds too good to be true ....

Guardian: Scottish independence: don't be fooled by Alec Salmond's protestations of friendship

Talk is cheap. Actions speak louder than words. "But his image has, for me, been tarnished in the past two years by the shameful way in which, as illustrated in a recent Panorama, over the heads of local planners and against local opinion, he "called in" the decision to approve Donald Trump's arrogant golf complex plan on the Aberdeenshire coast in an area of special scientific sensitivity, riding roughshod over environmental concerns."

Posted by doomwatch @ 11:38 AM 8 Comments

Tuesday, September 9, 2014

Scottish split a part of a cycle of war

Armstrong Economics: Scottish Vote Scares London

Armstrong suggests that this is part of a general trend towards separatist movements across Europe due to failed economics. He also blames Westminster for suggesting that Scotland is incapable of self rule, thus emboldening the nationalists. Where he is wrong, is suggesting that Scotland is conservative. Most conservative Scots moved to England long ago.

Posted by libertas @ 11:19 PM 0 Comments

May i have my £600k back now for that cr@ppy 2 bed flat lying empty in London please....

Daily Telegraph: Britain faces storm as giant global investors awaken to break-up dangers

Powerful investors across the world have woken up to the possibility that Scotland may vote to break up the United Kingdom, with some already preparing defensive action that risks a potentially dangerous flight from sterling and Britain’s bond market. "Asian investors are flabbergasted by the sight of an ancient and successful union tearing itself apart for no obvious reason"...... “Asia has suddenly come alive to this, and people are asking a lot of questions,”

Posted by tom101 @ 06:23 PM 1 Comments

Where do I even start?

Torygraph: Landlords are entrepreneurs who should be encouraged

Entrepreneurs create something. Your average landlord buys an existing asset and tries to avoid spending any money on maintenance. Government supplies a steady stream of revenue via Housing Benefit, which pushes up rents. They also push costs down through FLS, QE, etc, which have no effect on rents, which just march up with wages. This guy has to be kidding.

Posted by mombers @ 05:54 PM 0 Comments

Looks like house prices are about to go down Why J Sainsbury plc Is A Better Investment Than Bricks And Mortar Right Now

I suspect (and to be frank, hope) that house prices have finally peaked. Property already takes up too much of our time and money, which could be put to more productive use elsewhere. More buyers are pulling out of home purchases as banks tighten mortgage standards following the Mortgage Market Review, the recent regulatory overhaul, and borrowers fear the price rally is coming to an end. And a slew of recent data suggests house price growth is grinding to a halt, especially in London, where homeowners are taking their profits and be investing them in the Home Counties.

Posted by mark @ 10:08 AM 9 Comments

Applying for a mortgage

TurnKey Mortgages: The House buying process, part 3

Applying for a mortgage is a crucial step in the house buying process, and one that you should approach with care.

Posted by amelia @ 09:08 AM 1 Comments

Finding your new home

TurnKey Mortgages: The House buying process, part 2

Finding a house to buy is not as easy as Phil and Kirstie make it look! You have a lot of considerations: location, price, number of bedrooms required, and style of property to name a few. Sometimes (no, scratch that – nearly always), compromises have to be made. The trick is to make sure that you and your family are happy with these compromises. Furthermore, if you are looking for something unusual or require something special, then you may have to spend longer looking for somewhere suitable.

Posted by amelia @ 09:07 AM 1 Comments

Monday, September 8, 2014

What next ?

Guardian: China's housing market is on the brink of collapse.

Back at the start of this century the Chinese economy was around 11% the size of the US; now it is nearly 60% the size of the US. But despite that massive growth, it wasn’t until 2007 that China became more important than the US to world economic growth.

Posted by mark @ 09:53 AM 7 Comments

Zombies coming to get you

Yahoo: New York takes on abandoned 'zombie homes'

some 15,000 abandoned homes trapped in a legal limbo that threatens not only those affected but entire neighborhoods.

Posted by mark @ 09:49 AM 2 Comments

Sunday, September 7, 2014

Borrowing costs

BBC: Scottish independence: Vote 'will go to the wire'

Borrowing cost crisis in the making..Whether Scotland takes their share of the "wasted funds" or not, they won't be paying. There is no way a socialist Scotland is ever going to willingly, or be capable of, paying anything off.

Posted by stillthinking @ 08:12 PM 7 Comments

Net loss for all with a yes vote

Market Oracle: Scottish Independence YES Vote Panic - Scotland Committing Suicide and Terminating the UK?

Scotland would suffer huge cuts with the loss of subsidies, whilst England would loose circa £100bn inwards investment as the rest of the UK becomes a more risky place to park funds, also cutting the flow of inwards investment to Scotland. If Scotland default on its £120 billion debt, as promised by Salmond if he does not keep the pound, the UK's debt would rise from 77% to 85%. This would mean more quantitative easing. Scotland's future borrowing potential is 2/3 less than expected because it will cost $1tn to extract Scotland's $1.5tn of oil, and additional taxation could kill the oil industry there. England could also apply trade tariffs to recoup the default. England did this to Ireland, and as there, people and capital will flee. Scotland could take 50yrs to recover.

Posted by libertas @ 07:04 PM 8 Comments

And how do you pay rent when you retire?

The Daily Mail: Buyers who never own all their home: Soaring house prices mean generation will only be able to buy a fraction of property

Just marvellous. Think forward in time. On this course Gen Y and the Millennials will never own a house and never be able to retire because they need income for rent. With savings yielding nothing, there is no way out of this trap unless 1 - there is a large and permanent drop in house prices - possibly by requiring owners to be citizens 2 - there is giant wage inflation but not in house prices 3 - the government finds enough money to pay everyone's rent once they hit 65 4 - generations start moving in together, cramping four-to-a-bedroom Yep that's right folks, this is the wonderful UK economic "recovery" at work! Everything is fine if your an offshore oligarch washing your ill-gotten cash throughout a London property and stuff everyone else!

Posted by sneaker @ 05:01 PM 3 Comments

Saturday, September 6, 2014

To solve the housing crisis raise taxes to the ground

FT: Shift the Property Tax Landward

The Financial Times has the guts to talk about real solutions to the housing crisis

Posted by pete green @ 09:49 AM 10 Comments

Friday, September 5, 2014

The revenge of MEW

MaxKeiser: Mortgage Crisis 2.0

The impending second wave of the lastest mortgage crisis, this time due to Helocs (Home equity lines of credit) and HAMP (Home Affordable Modification Program) interest rate resets. In the second half, Max interviews Aaron Krowne on the true state of the housing market across America – from home ownership rates to mortgage arrears. Read more at

Posted by khards @ 09:39 AM 2 Comments

Thursday, September 4, 2014

Dailymail lowers itself beyond belief time for press complaints

Daily mail talking about house prices at terrible tragedy: Woman is found beheaded 'with a machete' in London

'Sadly a woman was pronounced dead at the scene by the doctor from London's Air Ambulance.' The road is a typical suburban street in the London Borough of Edmonton. The average house value on there is £310,000, while it is £275,000 in the local N9 postcode area. this is terrible what have house prices got to do with article ?

Posted by mark @ 04:26 PM 7 Comments

The European Central Bank has cut its benchmark interest rate to 0.05%

BBC: ECB lowers eurozone interest rates to 0.05%

The ECB had earlier cut its rate from 0.25% to 0.15% in June, and also became the first major central bank to introduce negative interest rates. After the latest news was announced the euro fell to a one-year low against the dollar of $1.3078.The ECB has been under pressure to kick-start the eurozone economy, as manufacturing output has slowed and inflation has fallen to just 0.3%. ECB President Mario Draghi had said after the ECB's last rate cut in June that "for all the practical purposes, we have reached the lower bound".

Posted by jack c @ 01:39 PM 12 Comments

Wednesday, September 3, 2014

Expect tampering and downsizer excuses

Estateagent Today: One day left to lobby (bribe) MPs over stamp duty

There is only one day left to lobby MPs ahead of a debate on the future of stamp duty in the Commons tomorrow. It has come about from St Albans MP, Conservative Anne Main, who says stamp duty is causing ‘sclerosis’ in the housing market. She is backed by a cross-party group of MPs which includes former Tory cabinet minister John Redwood and Labour MP Steven Pound. Recent average house price increases means a quarter of home movers now pay stamp duty of three per cent or more, up from 10 per cent a decade ago; the Treasury receives £1 billion a month as a result. Pensioners think they are going to make £50,000 by downsizing but then they find £10,000 is going to go in tax and are put off, which means those homes are not available for larger families”.

Posted by khards @ 05:00 PM 7 Comments

Todays laugh living by waitrose adds 66k to house value

Sweden has the answer!

Economist: Choosing the Right Pin

This quite detailed article suggests there are property bubbles throughout much of northern Europe, especially in Nordic countries. It confirms that prices are well above historic norms in all these places, but blames planning rules more than monetary policy. The 'Swedish solution' - cited in the final paragraph - could certainly be possible in the UK.

Posted by smiley @ 10:37 AM 2 Comments

Politicians are schooled bvy the housing market into induced ignorance by a culture of greed

Geophilos: Induced Ignorance

When Housing Bubble whistle-blower Edward Dodson warned that a financial crisis was emerging, he was told that “the Housing market” controlled America’s destiny. In fact, argues Fred Harrison, governments are to blame, because they fail to learn from past mistakes. Politicians are schooled into ignorance by a culture of greed.

Posted by pete green @ 12:05 AM 0 Comments

Tuesday, September 2, 2014

The Cost of Sleeping in London

Wetherell: Sleeping in London

Cost of renting a room in London hits a record high across the Hotel, Serviced Apartment and Flat-Rental Markets. The cost of renting a room and sleeping overnight or longer in Prime Central London (PLC) has hit new record highs across the hotel, serviced apartment and flat-rental markets

Posted by tanja korobka @ 06:15 PM 0 Comments

Oligarch states the bleeding obvious

The Times: London is ‘money laundering capital’

Why else would house-prices be comparable only with those in tax-havens - Monaco, Hong Kong, Geneva, etc.? Forget all the emotional arguments about how London is a cultural hub or whatever. It's *all* about tax and the path-of-least-resistance to make dodgy money appear clean. What better way to appeal to the ego and desire for status of someone from an iffy part of the world than to tell them "Route your cash through the UK's tax havens such as BVI, Cayman, Channel Islands - and then you can buy a house near Buckingham Palace and everyone will think you are terribly clever and important." The extraordinary thing is that over the last 10+ years, nobody has joined the dots between oligarchs parading around London and the notion that something dodgy must be driving it. No longer?

Posted by sneaker @ 10:26 AM 8 Comments

Monday, September 1, 2014

VIDEO: Inflation

Peak Prosperity: Inflation - Crash Course Chapter 11

The loss of purchasing power of our money via inflation is actually a historically recent phenomenon. For much of the past 300 years, our money held its value very well -- it has only been since the formation of the Federal Reserve and the removal of the dollar's ties to gold that consistent chronic inflation has caused our money to lose material value as time moves on. But for anyone 50 or older, this ongoing loss of purchasing power is all we've known - so we accept it as normal. But it doesn't need to be, and there are steps one can take to protect against it.

Posted by adam taggart @ 04:57 PM 0 Comments

Build a prison for cheap houses

The Leader: Homeowners queueing up to leave near site of Wrexham 'super prison'

PEOPLE are queuing up to move out of an estate near the site of a planned 2,100 inmate prison, according to a resident.

Posted by mark @ 11:57 AM 4 Comments

Money Week analysis on ll the different house price surveys

Money Week: London's property market is looking wobbly - is it about to topple?

Matthew Partridge looks at how much longer London's house-price bubble has to go before it pops.

Posted by andrew.williams @ 10:21 AM 5 Comments

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