June 2015 Archive

Tuesday, June 30, 2015

I agree, but think USA will be yet more attractive for capital flight.

Property Forum: Could London real estate benefit from Greek Eurozone exit?

"It does look as though the London real estate market will benefit to a certain extent from safe haven status and the ongoing problems in Greece. Whether this will stretch what many perceive to be already overvalued UK property assets remains to be seen but there is no doubt that the decision of previous UK governments not to adopt the Euro is certainly starting to pay great dividends for the country."

Posted by libertas @ 12:55 PM 12 Comments

Sunday, June 28, 2015

Selling ourselves out

Guardian: London: the city that ate itself

A discussion about the way the property market is changing London for the worst. "It is suffering a form of entropy whereby the distinctive or special is converted into property values. Its essential qualities, which are that it was not polarised on the basis of income, and that its best places were common property, are being eroded. It is becoming the case that delights and beauties are available only at a high price. This would matter less if the city were making new places with the qualities of those now packaged up and commodified – if the supply of good stuff were expanding – but it is not."

Posted by quiet guy @ 10:39 AM 6 Comments

Friday, June 26, 2015

Evidence that landlords can pass on their increased tax bill = no

Torygraph: The single reason why buy-to-let investors must keep their £5bn-a-year tax break

"But the consequences for borrowers, lenders and the property market could be unexpected and iniquitous. My guess is landlords would push up rents as far as they could." Just the same as landlords pushing rents up or down as their interest bill goes up and down, right? How on earth does this bloke expect tenants who are already paying the absolute max that they can to miracle up some extra money to bail out the poor starving landlord? What will happen is that many will sell up, mainly to higher income tenants, leaving a smaller pool of lower income tenants and hence LOWER rents. An much easier reform in my opinion is to get rid of the ridiculous 10% maintenance allowance. It effectively means that maintenance is not deductible. If you spend £1000 or £0, you get the same deduction.

Posted by mombers @ 11:52 AM 10 Comments

Thursday, June 25, 2015


Daily Moan: The Great British property divide

Same old Tories. Smiling in your face whist stabbing you in the back; 'This Government talks a lot about its 'northern powerhouse', but its policies are to remove resources and opportunities away from the north. It is time for David Cameron to be honest about what is happening on his watch.'

Posted by doomwatch @ 01:30 PM 0 Comments

Luxury homes led the demand, now lead the fall?

Telegraph: 'Colossal' fall in demand for luxury homes in parts of London, data reveals

The demand for homes fell in many pockets of the capital in the last two months, but picked up across the country.

Posted by hpwatcher @ 01:24 PM 5 Comments

Wednesday, June 24, 2015

Terrible people can't afford rent, shame on them

CNN: The middle class is struggling to make the rent

Making the rent is a common struggle for the poor. But it's becoming increasingly difficult among the middle class.

Posted by mark @ 10:13 AM 2 Comments

Anna White posting useful facts for once

Telegraph: The most expensive rents in Europe

"Many prospective first-time buyers and young families in the UK are trapped in rental accommodation as the chronic lack of homes - particularly in the London and the South East - continues to prop up house prices, making it more difficult to get on the property ladder." If only the houses they're renting were available to buy, then perhaps there would be no shortage...?

Posted by reticent @ 09:59 AM 2 Comments

Tuesday, June 23, 2015

Mostly just an end to exemptions of sporting estates from business rates

BBC News: 'Radical' Scottish land reform plan unveiled

"The Land Reform Bill will end tax relief for shooting estates and force the sale of land if owners are blocking economic development." Small beer but interesting nonetheless.

Posted by reticent @ 11:24 AM 2 Comments

Saturday, June 20, 2015

Your own 10 acre island for £450K?

Mail online: Its almost the perfect holiday home

With its own shingle beaches and inlets, several outbuildings, a paddock, extensive woodland, overgrown tennis court, coarse fishing, space for yacht mooring and a host of wildlife. All within 5 minutes walk of the town centre. Why would anyone want to pay a zillion squids for a high rise flat in London?

Posted by p. doff @ 05:31 PM 2 Comments

Friday, June 19, 2015

Luxury London development ruined by actual resident

The daily mash: Luxury London development ruined by actual resident

Prince Rashad Al Maddah said: “This used to be a lovely mixed-use residential and high-end retail complex. “You could stand out on your balcony and hear nothing but the gentle hum of your property accumulating value before returning to your suite at the Dorchester.

Posted by tick tock @ 09:04 AM 2 Comments

Wednesday, June 17, 2015

Their headline, not mine

Introducer Today: Sharp falls in lending and house price growth

Headline says it all - re ONS stats yesterday After all those articles on surge in approvals... Too funny.

Posted by killer bunny @ 09:21 AM 41 Comments

Monday, June 15, 2015

Rentiers tighten their grip

Telegraph: Rush to buy after Conservative victory pushes house prices to record

House prices have shot up to record highs after the Conservative election victory triggered a rush to buy in an overcrowded market. Average asking prices increased by 3pc between May and June as buyers and sellers reacted to the previous month’s vote, with properties going on the market at an average £294,351 according to Rightmove. This contrasts with the 0.1pc decline in house prices in May, when buyers balked at the prospect of Labour’s proposed mansion tax and the instability of a potential coalition with the SNP. “The unexpected election outcome has caused a strong rebound, prompting an upturn in buyer demand and helping new seller asking prices to hit their highest ever levels,” said Rightmove’s Miles Shipside.

Posted by quiet guy @ 01:51 AM 21 Comments

Thursday, June 11, 2015

Secular stagnation has become a buzz word for little to no growth

CNN: Alan Greenspan: US real estate is stagnating

The reason this is so alarming to Greenspan is that prior to the Great Recession, America experienced 10 recessions and recoveries since World War II. In each of those 10 recoveries, construction -- both residential and non-residential -- was a big driver of the rebound.

Posted by mark @ 11:20 AM 1 Comments

Old people to blame

Telegraph: Housing market grinds to a halt as sales hit lowest level since 1978

"House prices could rise by a quarter in the next five years, a report predicts today after finding the number of homes for sale has fallen to its lowest level since records began in 1978." No mention of the role of ZIRP or govt props in nudging prices higher. This is purely a supply-demand dynamic, understood? Given the precarious state of the economy, not to mention the world financial system, is a 25% increase likely over the next five years, or is this yet more VI fluff? .

Posted by debtserf @ 09:55 AM 4 Comments

Wednesday, June 10, 2015

The pin-up couple of buy-to-let are getting out

Moneyweek: Two of Britain’s best property timers may finally be pulling out of the market

Former maths teachers Fergus and Judith Wilson became the ‘pin-up couple’ of buy-to-let property. Now, they’re starting to sell up. Should you do the same?

Posted by frizzers @ 12:52 PM 13 Comments

Britain’s best-known landlords begin sell-off of buy-to-let homes

Guardian: Britain’s best-known landlords begin sell-off of buy-to-let homes

Wilson said selling off a vast number of homes in one area had problems attached. “In Ashford there is nothing available – I own it all. We totally dominate everything – it’s not intentional and we’re not proud of it,” he said. “If you want a three-bed detached home, what we used to call a mini-executive house, there’s not one on the market other than ours. If we put 10 on at once there’s a glut and the price goes down.”

Posted by cornishman @ 11:00 AM 3 Comments

Sunday, June 7, 2015

What Britain desires is a business opportunity rather than somewhere to live a life

Guardian: When did houses stop being homes?

Our ambitions have changed. Where once we dreamed of a house of our own, do we now yearn for a house for loan? Have we given up on the idea of a home completely now that a house is less a machine for living in, more a machine for printing cash?

Posted by debtserf @ 10:44 PM 14 Comments

Enfield in top three for house price increase

Land Registry: House Price Index: April report

The April data shows an annual price increase of 5.1 per cent which takes the average property value in England and Wales to £179,817 compared with the peak of £181,014 in November 2007. House prices are up 0.9 per cent since March. Top three annual movers are in London and, wait for it, Newham: 17.2%, Lewisham: 16.4%, Enfield: 16.3%. This just prior to Enfield getting on the Underground map for the first time, May 31st. But wait, we look forward to Crossrail 2 being announced later this year in the comprehensive spending review. It being a Tory manifesto pledge, it will be agreed. It will replace West Anglia mainline 2 train per hour service with 16 trains per hour services along the deprived east side of Enfield & Haringey, putting them 15mins from West End by 2028. Prices will soar.

Posted by libertas @ 10:20 PM 31 Comments

If Greece fully defaults, we will be completely Swiss Cheese'd.

Telegraph: Tracker mortgage rates drop below 1pc for first time

These rates, in part, are this low because of capital flows from the Eurozone into the perceived safe haven of London, because unlike Germany, it actually is a hedge against the Euro, like Swiss negative rates. This could fully reverse if Germany & France decide to be neighbourly & help out their 'buddies' in Greece, whom they became wed to. However, rather than seek a divorce, they would rather have the Grecian Gods & Goddesses in bondage, subjected to marital violence. Pushing Greece inexorably into a financial safe house from Russia, Quatar, or wherever. The latter is inevitable if Germany refuses to absorb Greece's debts, as it did when it welcomed East Germany back from the fold. If they refuse, confidence in the Euro will ebb, & capital flows will reduce UK & US yields.

Posted by libertas @ 08:28 PM 5 Comments

Saturday, June 6, 2015

Parasites find new blood.

Guardian: Making an offer? £1495 please

The crazy world of property buying gets more expensive every day. Now estate agents want you to pay them to do the job that the seller is already paying them to do.

Posted by chrisch @ 09:07 AM 2 Comments

Buy to let makes no financial sense

Telegraph: Buy to let returns to plunge

'That return, which would be the lowest in at least four years, would be before mortgages, maintenance and tax are factored in, all of which could push landlords’ investments into the red'.......yet btl is booming...more evidence of a speculative Bubble...bit like dotcom boom

Posted by taffee @ 08:08 AM 5 Comments

Thursday, June 4, 2015

...but it wasn't even close to being delivered

Local Government Chronicle: Kerslake: One-to-one council home replacement was 'deliverable'

"Under the policy (discounts on council house sales) the government said every council home sold would be replaced on a one-for-one basis. However, DCLG statistics show only around one in 10 properties have been replaced". In garbled English the minister explained that "it was a policy that was numerically balanced but the reality has been that the capacity for how local authorities, for whatever reason, find land or opportunities is such they haven’t been able to replace at the rate of the sale". So, the plan was OK, it was just reality 'on the ground' that scuppered it.

Posted by icarus @ 07:31 PM 5 Comments

Monday, June 1, 2015

Hmmm property

CNN: Dr. Doom: This 'time bomb' will trigger next financial collapse

this so-called "money printing" has also raised the risk of asset bubbles in various markets, including China, startups, tech stocks, bonds and luxury real estate. All of these investors have poured into these markets, but will they be able to get out?

Posted by mark @ 07:25 PM 1 Comments

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