March 2015 Archive

Saturday, March 28, 2015

Flood of dirty Russian cash is not a real bull market - it's a corrupt bubble built on naivety

The Telegraph: Jim Mellon: This stat tells you why London house prices are falling

"There are 41,000 new units being built in London over £1m. Last year only 3,000 homes were sold for more than a million pounds in London. It's way over-built, way over-leveraged and way over-priced. [...] The rest of the country seems reasonably revalued - the big caveat of course is what happens if interest rates rise?"

Posted by sneaker @ 10:16 AM 19 Comments

Friday, March 27, 2015

House prices measured in gold and silver

Moneyweek: Compared to gold, UK property is starting to look expensive

At current prices, it takes 232 ounces of gold to buy the average UK house – up by 60% in the last three years. Which of the two assets will fare better now?

Posted by frizzers @ 12:34 PM 2 Comments

Start i f something bigger?

Telegraph: Houseprice falls in central london spread

Prices starting to fall despite just about everything thrown at it...there is nothing left bar Hmg paying people's mortgages!..seems just like japan where prices fell despite everything Done to prop things up....the reason?....it's a bubble that's bursting as all bubbles do.

Posted by taffee @ 06:46 AM 11 Comments

Wednesday, March 25, 2015

Could deflation wreak havoc in the housing market?

Telegraph: Could deflation wreak havoc in the housing market?

If deflation goes on for a fraction too long it could unravel UK house prices...

Posted by cornishman @ 12:38 PM 19 Comments

Tuesday, March 24, 2015

If it's your pension, why is spending it out of the question?

Moneyweek: Getting lucky in the property market is not ‘providing for a long retirement’

Art critic Brian Sewell writes about this fear of a mansion tax. His house is his pension! Well in that case the mansion tax is no threat because a pension is an income and to turn a house into that you sell it. Tw#t

Posted by mombers @ 01:16 PM 1 Comments

Friday, March 20, 2015

Pure rent seeking...

Torygraph: Mapped: Where England’s best schools are pushing up house prices

I'm in the wrong game, working for a living instead of collecting an entrance fee for a school that I don't own

Posted by mombers @ 05:01 PM 0 Comments

Renting your way to poverty: welcome to the future of housing

The Telegraph: Renting your way to poverty: welcome to the future of housing

The housing crisis is already out of control, and no one in politics wants to help

Posted by becky @ 01:37 PM 3 Comments

A Dubious Policy

Telegraph: Help-to-buy ISA could distort housing market

"The Treasury estimated that around 285,000 first-time buyers will use the scheme every year." Yet February saw barely 19,000 FTBs, and prices are dropping. These ever-more-convoluted Treasury tweaks are just a sign of the growing govt desperation, as they know just how bad the market really is. When the government has to resort to giving people free money to get 'on the ladder', you know the top is in.

Posted by debtserf @ 11:02 AM 6 Comments

More Government-subsidised Ponzinomics

Guardian: Britain’s obsession with ownership has turned housing into a pyramid scheme

But what if all we’re really doing – by accepting crazed property prices as the norm, to be alleviated only by the fiscal equivalent of chucking tenners into a crowd – is sucking first-time buyers into a sort of national Ponzi scheme? What if we’re luring them in at what would otherwise have been the peak, just to keep the boom rolling a little bit longer, and leaving them horribly exposed to negative equity if another crash comes?

Posted by debtserf @ 08:34 AM 10 Comments

Wednesday, March 18, 2015

Property bubble finally bursting?

Home.co.uk: Central london property bubble burst

Boom Began in london so will the crash?....foxtons also laying off workers...this one will be a big one I'm with little the government can do

Posted by taffee @ 12:01 PM 10 Comments

Tuesday, March 17, 2015

Merryn Somerset Webb takes this apart quite nicely

Why don't they just take away the artificial props on housing and fewer people will have £1m+ homes?

Graniard: Budget 2015: Tories’ £1m inheritance tax break aimed at wealthier households

Cognitive dissonance... It's a bad thing to aspire to own a nice house - large and rising stamp duty penalty. But existing owners are gifted council tax freezes and now the opportunity to pass their unearned gains. To their credit, the coalition introduced ATED so that offshore owned houses could no longer avoid IHT and CGT, but now they are going to exempt ones that are not enveloped offshore????

Posted by mombers @ 01:47 PM 0 Comments

Monday, March 16, 2015

More reason not to buy to let

Croydon guardian: Council presses ahead with landlord licence

Btl is effective actively propped up by lunatic economic policies which are unsustainable. The sweet spot won't last as schemes.like this show....btl is at risk from falling prices Interest rates rising..taxation...tenants gaps...list is endless

Posted by taffee @ 08:05 AM 5 Comments

Saturday, March 14, 2015

Because land banking is easier than building

Guardian: Decline in UK housebuilding accelerates drop-off in construction activity

The ONS has reported a decline in housebuilding in January: "Construction industry output in January was down 2.6% on the previous month, dragged down by the decrease in housebuilding, the Office for National Statistics said. Within the figures there was a smaller decrease in infrastructure building, of 2.4%, thanks to major projects such as Crossrail. A sharp fall in the number of mortgage approvals, especially for first-time buyers, was blamed for the decline, as homebuyers found themselves constrained by more stringent lending rules. Housebuilders, wary of creating a surplus of homes and triggering a price fall, have halted some developments until the economic picture becomes clearer." What will it take to get us building more homes?

Posted by quiet guy @ 08:24 PM 21 Comments

Friday, March 13, 2015

This is why 500,000 pension savers will NOT be rushing into buy-to-let

Telegraph: This is why 500,000 pension savers will NOT be rushing into buy-to-let

Reports predicting that a deluge of money will pour into buy-to-let following the Government's pension reforms are wrong. This is why:

Posted by becky @ 04:44 PM 4 Comments

Thursday, March 12, 2015

Beeb said it so it must be true!!!

BBC News: London house prices continuing to fall, says Rics

House prices in London are moving in the opposite direction to the rest of the UK - they are falling, according to surveyors. Mortgage refinancing is becoming an issue with more and more people.

Posted by tom101 @ 11:01 AM 22 Comments

Tuesday, March 10, 2015

Can I just have the child benefit back instead

Mail: 40p tax rate hits too many middle earners, says Cameron as he hints at fresh action on the issue in next week's Budget

"Mr Cameron announced last year that a future Conservative government would raise the threshold for paying 40p tax from £41,865 to £50,000 by 2020." 2020 !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! Is that just before the newly formed RAF Reservist Pig Flying Squadron takes off David. "Family is the bedrock of our country" LOL. Personally I'd just prefer not to be taxed on my children's child benefit. Just paid HMRC around £1700, which pre-tax means I need to earn an extra £2833 a year gross !!!!!! I'm really happy to subsidise the tax lost to corporate avoidance due to the failure of tax legislation. Something stinks David.

Posted by doomwatch @ 01:41 PM 23 Comments

A strange and exceptional phrase

BBC: The disappearing property ladder

For millions of people under the age of 40 the property ladder has become a snake instead - unsettling and threatening, the very antithesis of the stability and security that a home ought to bring.

Posted by debtserf @ 07:53 AM 11 Comments

Monday, March 9, 2015

Rates more likely to rise than be cut?

Bloomberg: U.K. Bonds in Longest Losing Streak Since June on BOE Rates View

On Thursday, members of the Monetary Policy Committee said last month that the next move in borrowing costs is more likely to be an increase than a cut. This is seen as a signal that rates will rise, yet it is clearly Dovish vs the previous line of "The only way is up, baby, you and me now". Orwell would be proud at this double plus good statement from the Ministry of Truth.

Posted by libertas @ 09:08 PM 4 Comments

Friday, March 6, 2015

MOAR Help-to-Lend needed, cry lenders

Guardian: Help-to-buy scheme needs replacement before it ends, warn mortgage lenders

Failure to replace the help-to-buy mortgage guarantee scheme when it comes to an end next year will choke off competition and push the first-time buyer market back into decline, lenders have warned. “It is encouraging to see more lenders offering 95% LTV products outside of the scheme – but it would be a big gamble to rely on this continuing without the boost that the government has brought to the first-time buyer market.”

Posted by debtserf @ 09:25 AM 8 Comments

EU QE = UK deflation & rate cut

Guardian: Quantitative easing: what does it mean for consumers?

Euro devaluation exports deflation by reducing the cost of Eurozone exports to the UK, which the UK cannot block by treaty. BOE governor has stated that UK deflation will be met by a rate cut. Stemming the rise of Sterling will be sought as a quasi trade barrier against the Eurozone. It could yet move us closer to Brexit? That rate cut will immediately cause mortgage rates to plunge. Whilst UK prices have been soaring the last few months priced in Euros, a UK rate cut will see a return of nominal house price rises, priced in Sterling, though it is difficult to see how successful BOE can be in devaluing Sterling when they are standing in the way of a freight train.

Posted by libertas @ 04:05 AM 21 Comments

Thursday, March 5, 2015

Rising rates...bullish for house prices!

Telegraph: Mortgage rates 'unlikely to fall much further' - Virgin Money

Virgin Money has predicted that mortgages are unlikely to get much cheaper, as banks start to worry about cheap home loans affecting their capital strength. The Bank of England is introducing new rules on the leverage ratio – a capital requirement for banks that industry figures have warned may increase mortgage costs – and housing demand is falling after last year’s boom

Posted by debtserf @ 08:23 PM 4 Comments

Cook us up another scheme George:

Motley Fool: Have We Finally Reached Peak Housing Market?

When house prices slipped during the financial crisis, nobody was surprised. The property market had been scaling dizzying heights for a decade. The only surprise was that they didn’t tumble further. The Bank of England’s decision to slash interest rates to 0.5% almost exactly six years ago gave the market a desperately needed shot in the arm. Six years later, this property market stimulus continues to be injected at maximum dose. But like any drug, the effects are finally wearing off. The sheer scale of stimulus pumping up house prices is so extreme we no longer notice it. In fact, we think it is normal. Despite the hallucinogenic low rates, the weird thing is they are no longer doing their job. House prices have run out of juice anyway.

Posted by debtserf @ 09:53 AM 11 Comments

Wednesday, March 4, 2015

The bigger they are, the harder they fall.

Mail: How London is 'safe haven' for money laundering

International criminals are using British property as their preferred ‘safe haven’ to stash their corrupt money, a startling report claims. Transparency International UK said 36,000 London properties are owned by hidden companies registered in offshore havens. They fear many of these are being used by corrupt overseas politicians from the world’s poorest countries who want to hide their criminal cash.

Posted by hpwatcher @ 02:14 PM 0 Comments

Q: What comes after a boom or after an election?

Telegraph: UK economy picks up speed as job growth booms

Britain's recovery picked up speed at the beginning of 2015, according to a closely-watch survey that showed the UK's dominant services sector continued its robust expansion and job creation rose at a near record pace. Increased confidence drove a flurry of new business in the services sector, and companies responded by increasing jobs at the second sharpest rate since records began almost 20 years ago.

Posted by khards @ 11:18 AM 1 Comments

Surely not ... I thought it was built on the inherent greatness of the UK

The Independent: London property boom built on dirty money

20-25 years ago you couldn't *give* London property away. Same housing, different prices. So what's changed?

Posted by sneaker @ 09:28 AM 1 Comments

Meanwhile in the real.world

Telegraph: EU faces firs regional bankruptcy

As mentioned here yesterday I think....Markets seem to have lost touch with reality and things Can change very very quickly when you kick the can down the road

Posted by taffee @ 07:06 AM 0 Comments

Tuesday, March 3, 2015

Not HPC folks excited about this

Mail: House prices slow for sixth month in a row

Britain's housing market showed further signs of cooling down today as a report revealed house price growth fell for the sixth month in a row in February.

Posted by hpwatcher @ 08:08 AM 13 Comments

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