July 2015 Archive

Thursday, July 30, 2015

“London is the world centre for washing money

The Evening Standard: How to keep dirty money out of property in the UK

“It should be self-evident that London is the world centre for washing money, because there is no logical reason for any normal person to pay those crazy prices. “What other reason could there be? Not only is it the easiest place on Earth to launder money, but you get bragging rights thrown in as a bonus.” [...] by bringing estate agents into line, by requiring them to comply with standards that apply as a matter of course elsewhere, the buying and selling of property could be made a lot cleaner. And sanity would be restored to the property market. Who knows? Local people may be able to buy property again. Perish the thought.

Posted by sneaker @ 10:45 AM 4 Comments

Wednesday, July 29, 2015

Enfield has the third fastest house price increase in the UK.

Guardian: House prices in England and Wales hit record high

"Even within the capital, the 33 London boroughs have experienced varying fortunes. In Newham, prices are up 16% over the year, with Hillingdon and ENFIELD close behind at 15.2% and 15.1% respectively." (This is prior to any sales being registered since TFL took over services to Enfield Town and Cheshunt via Seven Sisters, putting Tottenham, Enfield and Edmonton on the tube map for the first time, expect the new Overground areas to move towards 20% house price growth, playing catch up to other better known areas).

Posted by libertas @ 03:51 AM 47 Comments

Tuesday, July 28, 2015

Living space is a commodity

Guardian: David Cameron vows to fight against 'dirty money' in UK property market

I am heartened that our PM speaks but WTF! You couldn't make this stuff up. "One in 10 properties in the City of Westminster, central London, are estimated to be owned by companies registered in an offshore secrecy jurisdiction, according to Transparency International figures provided by Downing Street, while £120bn worth of properties in England and Wales are owned offshore." Only the little people think property is for living in.

Posted by quiet guy @ 01:47 AM 5 Comments

Saturday, July 25, 2015

Grinding Down the Renters

Notayesmanseconomics's Blog: UK house prices and rents are becoming ever more unaffordable

Another dissection of the Bank of England's role in the property market. 'Thus we see that house prices in real terms were increasing by 5/6% more than wages in annualised terms meaning that real wages in this area are falling considerably. Here we come to a very difficult area for the Bank of England as it was its Funding for (Mortgage) Lending Scheme or FLS which put a light under house prices via lower mortgage rates. This began in July 2012 so the majority of the current Monetary Policy Committee have skin in this particular game which is perhaps why house price rises are not at the forefront of their thinking at least according to the official records! I have never understood why making houses more expensive for first time buyers is regularly reported as “Help” for them.'

Posted by quiet guy @ 02:09 PM 2 Comments

Ello' ello' ello' what's all this going on ere then ?

BBC: Foreign criminals 'driving up UK house prices'

Foreign criminals are laundering billions of pounds through the purchase of expensive properties, which is pushing up house prices in the UK, the National Crime Agency has said. Its economic crime command director, Donald Toon, told the Times that London prices had been "skewed" as a result. He said prices were being artificially driven up by criminals "who want to sequester their assets here in the UK".

Posted by jack c @ 10:41 AM 5 Comments

Friday, July 24, 2015

A temporary rise until the economy goes down again?

Telegraph: End of cheap mortgage boom as big banks raise rates

Stampede for fixed mortgages expected as Barclays and Santander increase rates and borrowers scramble to beat the winter Bank of England rate rise. Banks and building societies will begin to withdraw their best mortgage deals next week as home owners scramble to beat the rise in interest rates this winter.

Posted by hpwatcher @ 10:23 PM 13 Comments

Friday, July 17, 2015

The Bankruptcy Of The Planet Accelerates – 24 Nations Are Currently Facing A Debt Crisis And And The

Investment Watch Blog: Full Blown Global Debt Crisis

There has been so much attention on Greece in recent weeks, but the truth is that Greece represents only a very tiny fraction of an unprecedented global debt bomb which threatens to explode at any moment. As you are about to see, there are 24 nations that are currently facing a full-blown debt crisis, and there are 14 more that are rapidly heading toward one. Right now, the debt to GDP ratio for the entire planet is up to an all-time record high of 286 percent, and globally there is approximately 200 TRILLION dollars of debt on the books.

Posted by lvmreader @ 11:02 AM 27 Comments

Thursday, July 16, 2015

Deposits dominate?

Liberty Street Economics: How Sensitive Is Housing Demand to Down Payment Requirements and Mortgage Rates?

Liberty Street Economics seems to be a blog for the Federal Reserve Bank of New York. The article explains some American research that suggests that property buyers are more influenced by deposit requirements than interest rates: "The price of available financing (that is, the mortgage rate) may play a less important role than commonly thought." Long term blog readers may recall some statistical investigation by another contributor to this site who found that the correlation between UK house prices and interest rates was surprisingly low. The implications are also significant w.r.t. UK government policy. Deposit boosting schemes such as 'Help to Buy' may affect the market more than ZIRP. Hat tip to 'northshore' on the forums.

Posted by quiet guy @ 11:55 PM 9 Comments

Large screen TVs now a safe haven for cash

Guardian: Dixons Carphone profits rise 21% amid Greek panic buying

Dixons Carphone has reported a 21% rise in profits, in part helped by Greeks panic buying big-ticket items such as large-screen TVs as a safe haven for their cash amid the ongoing economic crisis in the country

Posted by mark @ 10:48 AM 6 Comments

Tuesday, July 14, 2015

How Does Dry Rot Affect My Home?

Liverpool Damp Surveyors: How Does Dry Rot Affect My Home?

Contrary to its name dry rot only grows where moist wood is present, so if your home suffers any leaks its a good idea to check your floorboards and walls for its presence. Dry rot is caused by a particular species of fungi and can remain dormant until the condition of the wood is optimum for its growth. As you may know dry rot effects the structural integrity of the wood it infests, so it is important to get it dealt with as soon as possible.

Posted by olly stabler @ 02:41 PM 6 Comments

Monday, July 13, 2015

One group disenfranchising the other.

NZ Herald: We're becoming tenants in our own country.

Mainland Chinese money snapped up at least 80 per cent of residential sales in parts of Auckland in March but were nearer 90 per cent in May, a whistle blower from the industry says. Can gaijin buy Chinese property with the same ease I wonder? Is this the only way that bubble saturated countries can maintain such stratospheric asset valuations now?

Posted by debtserf @ 12:56 PM 11 Comments

Interesting article

Japan Times: Residences left empty posing problems across the nation

As government-backed low-interest housing loans and tax benefits on those loans triggered a massive supply of new dwellings, quantity took precedence over quality. Houses were built to last just 25 to 30 years, well short of the global standard.

Posted by mark @ 10:25 AM 0 Comments

Saturday, July 11, 2015

MSW digs out some interesting snippets from budget

FT: Budget may have big effect on house prices in the long term

Changes in taxation and allowances make BTL a much worse proposition.

Posted by letthemfall @ 10:55 AM 31 Comments

Friday, July 10, 2015

Will (lack of) planning solve the housing crisis?

Guardian: Osborne's proposals to relax planning system a 'retreat from localism'

The chancellor unveils further relaxation of planning rules to boost our flagging economy. The proposals have been welcomed by RICS as a "forward step to housing-led growth". Developers now have one less excuse for not building enough houses so they are complaining that there aren't enough staff in local authority planning departments.

Posted by cyril @ 02:38 PM 2 Comments

Thursday, July 9, 2015

Londongrad; From Russia With Cash

Guardian: London estate agents caught on camera dealing with 'corrupt' Russian buyer

"Top estate agents in Britain’s wealthiest postcodes are willing to turn a blind eye to apparent money laundering by corrupt foreign buyers, according to an investigation by Channel 4. Despite being made aware they are dealing with ill-gotten gains, the estate agents agree to continue with a potential purchase. In several instances the estate agents recommend law firms to help a buyer hide his identity. There has been increasing concern that billions of pounds of corruptly gained money has been laundered by criminals and foreign officials buying upmarket London properties through anonymous offshore front companies. Experts say the city is arguably the world capital of money laundering.

Posted by doomwatch @ 01:29 PM 8 Comments

We're all in it together; headmaster gets the begging tin out

Wiltsglosstandard.co.uk: Fairford headteacher warns of funding crisis as schools are forced to ask parents for donations

Gloucestershire is one of the most poorly funded local authorities in the UK – ranking 131 out of 150 – and several schools here are struggling to make ends meet.

Posted by doomwatch @ 11:03 AM 0 Comments

Wednesday, July 8, 2015

This is big - but will it make it into law...?

AccountingWeb: Osborne’s reforms send property into spin

Higher rate tax payers only get 20% tax relief on interest, then someone who only breaks even (so makes zero profit) ends up effectively paying 20% tax on the mortgage interest they've paid - seems crazy, but it's true. Whether it gets changed before the idea becomes law, who can say... But if it sticks - whoopee!!

Posted by bidin'matime @ 08:35 PM 6 Comments

Ouch - that will hurt!

Mail: Profits slashed for buy-to-let landlords in Budget crackdown on mortgage interest tax relief

Tax relief for landlords on mortgage interest payments to fall Will only be able to claim the basic rate of tax - 20% rather than 45% The relief is estimated to cost £6.3bn a year

Posted by hpwatcher @ 03:28 PM 8 Comments

And so here we are people...

Guardian: Average UK property price breaks £200,000 barrier, says Halifax

there is one ting that makes me (daily) feel like I'm crazy. On one hand interest rates have to stay low because the economy is not great and we need to keep lending/borrowing etc. and on the other hand prices are pretty much at a record. The good people in the government and Bank of England appear to have cornered the whole country by Letting prices rise faster than the recovery, by low rates and stupid help to sell. Articles already talking about BTL disaster and now booming house price bubble stories will follow (just wait and see! HI do recall when help to buy (sell) was announced I was heard to say to my wife "this is going to be a f@&£ing disaster!" And now here we are...in trouble again!

Posted by brickormortis @ 10:34 AM 6 Comments

Monday, July 6, 2015

Less than £15k for farmhouses with land!

France 3: High Tension House Sales (translated)

I went to enquire about these, originally bought compulsorily by EDF, as it seemed very cheap for a 4-5 bed farmhouse and 1/3 of an acre of land - even for something near national grid pylons (one set of which had been there since 1985 the others in 2014). Unfortunately they had been withdrawn from sale for some reason. I figured that it was worth a punt that in 20 years with solar panels, battery technology and perhaps even fusion reactors, the energy wasting grid system and the pylons will be totally redundant. It was also not that much money to risk. I wonder what they would have sold for if it had been in the UK

Posted by vinrouge @ 09:40 PM 0 Comments

A question of when not if there is a crash

Dailymail: £200billion buy to let timebomb

Buy to let makes no financial sense and as for long term...good luck if you leverage the loan And if it goes pear shaped good luck with selling at anywhere near these Looney prices. A timebomb to end all timebombs

Posted by taffee @ 11:27 AM 10 Comments

Saturday, July 4, 2015

More fuel to the fire

Guardian: Inheritance tax giveaway to feature in first Tory budget alongside welfare cuts

The government is proposing to increase the inheritance tax giving a boost to the property market and a better start in life to the well off. If you down size shortly before you croak you can keep the extra tax relief you would have had if you had stayed in your big house. So that's great but the disadvantage is that you will be dead.

Posted by cyril @ 09:54 AM 5 Comments

Friday, July 3, 2015

Another reason BTL should have been discouraged

Telegraph: Buy-to-let could pose a threat to UK economy, warns Bank of England

"In a downswing, investors selling buy-to-let properties into an illiquid market could amplify falls in house prices, potentially raising losses given default for all mortgages." Those risks could be amplified as Britain prepares to raise interest rates for the first time since the financial crisis, as a small rise in rates could wipe out the income from a property.

Posted by quiet guy @ 12:32 AM 11 Comments

Thursday, July 2, 2015

UK house prices declined between May and June against expectations of a further increase.

WBPOnline: UK House Prices Unexpectedly Decline in June

London - House prices in UK fell by 0.2% between May and June which led to the annual price index decelerating to two-year low of 3.3%, down from 4.6% a month before, according to the mortgage provider Nationwide. Both figures missed the market expectations of a further increase in price growth. Unlike Nationwide, property portal Rightmove informed that the earlier average asking price increased by a record high 3%, or £8,500, between May and June.

Posted by cornishman @ 08:24 AM 6 Comments

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