September 2015 Archive

Wednesday, September 30, 2015

London rent a bed scheme

Sky News: Anger At 'Bed Under Stairs' To Rent In London

A young graduate with hopes of moving to London has expressed her disgust after a single room costing £500 a month turned out to be a cupboard "under the stairs". Alex Lomax visited the flat share in Clapham after seeing an advert online – but was left shocked after its description of a "furnished room" seemed a little too generous. Her pictures show a single mattress wedged in between the walls, with a little bit of room left for a couple of boxes at the back.

Posted by jack c @ 08:46 PM 10 Comments

Monday, September 28, 2015

Some small relief for tenants?

Moneyweek: Rent arrears: one more thing for buy-to-let investors to worry about

The minimum debt required for Bankruptcy proceedings is going up from £750 to £5000 - "a good six months’ rent for many of the UK’s landlords" Below this and they have to use County Court proceedings instead, which is much more expensive and takes longer. I wonder how many rogue landlords would pursue arrears if it would mean an opportunity for the tenant to point out some breach of contracts to a judge? I certainly wish that I'd stiffed our landlord when we moved - we ended up getting £75 from the Ombudsman but I reckon they would have probably written off a month's rent rather than have to explain themselves to a proper court...

Posted by mombers @ 01:54 PM 1 Comments

Nordic experimentation with sub-zero interest rates has changed the way central bankers think about

Telegraph: How Sweden's negative interest rates experiment has turned economics on its head

It has long been believed that when it comes to interest rates, zero is as low as you can go. Who would choose to keep their money in the bank if they had to pay for the privilege? But for the people who control the world’s money, this idea has recently been thrown out of the window. Many central banks have pushed their rates into negative territory and yet the financial system HAS YET TO COME TO AN ABRUPT END.

Posted by libertas @ 12:00 AM 10 Comments

Saturday, September 26, 2015

Equivalent to margin in stocks

Dailymail: BTL could spark property crash

It's the elephant in the room...BTL at these levels is a pure play on rising prices..leveraged loans speculating on Rising prices.Problem is it goes pear shaped if prices fall...1929 stock crash was fuelled by margin trading As was 2007 crash and recent Chinese stock crash...trouble is you can't short physical property!BTL makes no Sense at these levels unless prices rise

Posted by taffee @ 06:56 AM 21 Comments

Friday, September 25, 2015

Can the new left tackle the Housing Crisis with a Land Value Tax

Gruaniad: Why Labour must become the party of home ownership

This young chap is making waves in left wing politics and by saying New New Labour should build a lot more Houses and Introduce a Land Value Tax. Interesting I shared a platform with him last year and mentioned it to him.... Did not seam that interested at the time but he has obviously been looking into it. I am sure having the new Shadow Chancellor and a few other corbynites who are up for a Land Value Tax does not hurt either. Interesting times if they ever get a majority.

Posted by pete green @ 05:45 PM 10 Comments

Bank concerned it will be Boom and Bust again

BBC: Bank of England concerns over buy-to-let boom

Most of the growth in mortgage lending has been for BTL. BoE is concerned that there will be a stampede of Landlords to sell if / when prices stop rising. Personally I think one of the biggest problems in the housing market is BTL mortgages. The first time I ever saw them mentioned was when I sold my house in 1999.

Posted by tenyearstogetmymoneyback @ 05:45 PM 2 Comments

Will the UK will follow US - bluff, or is the Enfield economist wrong?

Yahoo FINANCE: Yellen: Interest-Rate Increase Likely 'Later This Year'

The Fed chair said it would likely be appropriate to raise rates from near zero "sometime later this year,"

Posted by hpwatcher @ 11:12 AM 6 Comments

Wednesday, September 23, 2015

The start of greater tightening?

Telegraph: Banks slash another 300,000 interest-only mortgages

The banking sector is shifting customers off interest-only home loans over fears they are a "time bomb" for customers who do not have a plan in place to repay the debt

Posted by hpwatcher @ 04:47 PM 5 Comments

Tuesday, September 22, 2015

The number of homeowners putting homes up for sale was at a record low

Guardian: House prices UK house prices reach new high

the already “property rich” stood to gain most from increased confidence on the housing market, with the highest-priced counties seeing the biggest increases and the cost of family homes rising while first-time buyer properties fell.

Posted by debtserf @ 02:03 PM 48 Comments

Monday, September 21, 2015

Tip of the iceberg

Mail: Lying mortgage broker claimed he was a £150,000-a-year finance chief to get the loans to build his six-bedroom £1million dream home

Marcus Copeland inflated annual income to nearly £150,000 for mortgage; House included six bedrooms, a three-storey roof terrace and a TV room; 44-year-old also gave clients false wage slips so they could obtain loans; Copeland admitted seven charges including fraud and false representation.

Posted by hpwatcher @ 08:56 PM 4 Comments

Shameful Tories; No free lunch

Thedailymash.co.uk: Free school lunches scrapped as children pay price for causing recession

The true colours are coming through. Tories love kids so much.

Posted by doomwatch @ 12:00 PM 2 Comments

Sunday, September 20, 2015

The UK is pro-landlord

Global Property Guide: Landlord and Tenant Laws

Much of the world is pro-tenant including most of the Americas. The Middle East and Asia are generally pro-landlord. Looks like the UK is lagging the field on this topic.

Posted by sneaker @ 05:30 PM 2 Comments

Saturday, September 19, 2015

Plan to jail budding Rachmans

BBC: Landlords who put lives at risk 'should be jailed'

Also on my local radio station Wave 105 where a councillor was suggesting there should be a register of Dodgy landlords so people could check it before renting a house. Personally I think the most productive approach would be for the council to either take the house, either turning it into a Council house or handing it to a housing association or arrange for the repairs to be done and bill the landlord.

Posted by tenyearstogetmymoneyback @ 02:10 PM 10 Comments

Libby economics go mainstream

Guardian: Negative interest rates 'necessary to protect UK economy'

I told you so, and don't hate to say it. Carney has literally defrauded the vast majority of homeowners who have rushed into fixed term rates that will look expensive once deflation has set in and rates have to be cut. This comes hot of the heels of Yellen disappointing with no change on dollar rates, warning about negative rates to come. A wave of new technology and globalisation of labour markets is collapsing the price of doing business, leading to soaring house prices, plummeting mortgage costs and actual increase in disposable income for the first time. National debts for A rated countries will become assets as they start to yield interest, whilst these countries are forced to slash taxes to spurn demand whilst debt piles begin to reduce and increasing resources go to infrastructure.

Posted by libertas @ 08:02 AM 37 Comments

Friday, September 18, 2015

Shock! Horror! Elderly asked to downsize. Working people forced to move every 6 months or year...

Daily Mail: It's time to sell up your home OAPs told: Anger as financial watchdog tells elderly to downsize to tackle housing shortage

Maybe let's keep the status quo but strip anyone on the state pension from blocking planning applications? Or even better, strip them of their state pension if they hold onto more than say £500k of house. That figure net of building costs represents the burden that they are placing on everyone else, why on earth should someone tucking into half a million of public land value get welfare?

Posted by mombers @ 09:27 AM 77 Comments

Tuesday, September 15, 2015

Rigged

BBC News: UK inflation rate falls back to 0%

The UK's inflation rate fell to 0% in August, down from July's rate of 0.1%, the Office for National Statistics (ONS) has said. Inflation, as measured by the Consumer Prices Index, fell due to a smaller rise in clothing prices from a year ago and cheaper fuel prices, the ONS said. CPI inflation has been almost flat for the past seven months. Rising home prices don't count as inflation, of course, but those struggling to buy a home probably see it a bit differently.

Posted by quiet guy @ 08:04 PM 12 Comments

Monday, September 14, 2015

The end of social housing for Britons in need. Welcome to International Socialism.

Market Oracle: Syrian Refugee Crisis to Result in UK Council and Social Housing Waiting Lists Freeze Catastrophe

(Re-posted with a repaired link) Whilst David Cameron plucks figures out the air such as for the relocation of 20,000 Syrian refugees over the next few years, the reality will probably be nearer 20 times that figure, 400,000, but the bottom line is that whilst the likes of Germany has the capacity to house as many as 500,000 refugees per year, Britain does not have the capacity to house even 5,000 per year! My best advice for those in social housing is that if you are contemplating moving then the time to act is NOW for you will NOT be able to move in just a few months or even weeks time because social housing waiting lists are literally about to become permanently frozen under the weight of the need to house the large influx of refugees / migrants over the coming months and years.

Posted by libertas @ 11:13 AM 13 Comments

The end of social housing for Britons in need. Welcome to International Socialism.

Market Oracle: Syrian Refugee Crisis to Result in UK Council and Social Housing Waiting Lists Freeze Catastrophe

Whilst David Cameron plucks figures out the air such as for the relocation of 20,000 Syrian refugees over the next few years, the reality will probably be nearer 20 times that figure, 400,000, but the bottom line is that whilst the likes of Germany has the capacity to house as many as 500,000 refugees per year, Britain does not have the capacity to house even 5,000 per year! My best advice for those in social housing is that if you are contemplating moving then the time to act is NOW for you will NOT be able to move in just a few months or even weeks time because social housing waiting lists are literally about to become permanently frozen under the weight of the need to house the large influx of refugees / migrants over the coming months and years.

Posted by libertas @ 07:35 AM 6 Comments

The Domino global city crash?

Bloomburg: Rio's bursting real estate market

I should imagine London will be the same when the money moves out

Posted by pete green @ 07:30 AM 3 Comments

Or a last hurrah for Labour?

Armstrong Economics: The Resurrection of Marx – End of Britain?

"I do not wish to live in the world Corbyn and others like him want to create. They cannot see that they seek to enslave me for their benefit. I am free and that is the true meaning of what Patrick Henry said so eloquently – “Give me freedom, or give me Death!” Death to me is preferable to living in their world of subjugation. You do not appreciate what those word so profoundly mean until you are confronted with the true evil of Marxists."

Posted by libertas @ 07:29 AM 3 Comments

Saturday, September 12, 2015

Kent man makes fortune from fleecing economic migrants

Guardian: As migrants fill his properties, Fergus Wilson puts up rents by 33%

inflation = 2% interest rates = 0.5% rent increase = 30% figure that one out

Posted by cyril @ 11:20 PM 23 Comments

Thursday, September 10, 2015

Mixed Messages

Grauniad: UK house prices for August 'through the roof' – Halifax

Halifax says house prices have shot up while Nationwide said that price growth was weak in August. Reasons are lack of houses on the market, low mortgage rates etc. Well yes

Posted by cyril @ 12:42 PM 9 Comments

Wednesday, September 9, 2015

Fred Harrison has a good Pop at Adair Turner in his latest blog

Share the Rents: Am I a Liar?

This little blog of Fred harrison having a pop at Adair Turner somes up for me all that is wrong with house prices and modern political economics which is all about confusing this issue - not shedding light on what is going on with house prices.

Posted by pete green @ 11:17 AM 7 Comments

A housing BOOM!!!

Daily Mail: Britain is sitting on a new £173bn debt time bomb - and with rates set to rise it's ticking even louder

An investigation by Money Mail has uncovered the startling rise in debt levels due to people splashing out on new cars, TVs, conservatories and home improvements.

Posted by hpwatcher @ 09:17 AM 9 Comments

Monday, September 7, 2015

Is the tide starting to turn?

Moneyweek: Property investors beware -the people want house prices to fall

According to the FT, a recent international survey by ING found that nearly three-quarters of European consumers believe that “a fall in house prices would benefit society”. What’s particularly interesting is that it wasn’t just renters who thought so. More than two-thirds of European homeowners – whose net wealth would presumably be threatened by falling prices – agreed too. Looking at the figures in more detail, nearly 60% of British homeowners and nearly 80% of renters thought a drop in prices would be a good thing.This is yet another sign that the political mood music is changing.' Yeah, I know, Moneyweek have called it wrong on HPC before but maybe this time... Just checked the Edinburgh market and saw many reduced prices, mainly quite small but some up to 16%.

Posted by a saver @ 11:34 AM 45 Comments

Friday, September 4, 2015

Banks forgot to explain that loans have to be repaid.

BBC: Mortgages: Nearly one million 'face difficulties'

Another feature on interest only mortgages with new figures. As I have said before at least these people have the certainty that they will never pay off their mortgage, unlike endowment holders who might have a shortfall (a colleague has just retired, two weeks after his endowment did pay up enough). Oh well I expect these people all have excellent pensions so they can happily pay the interest into their nineties :-)

Posted by tenyearstogetmymoneyback @ 07:50 PM 18 Comments

Wednesday, September 2, 2015

Check out the finanical hoods in your neighbourhood

Private Eye: Selling England by the offshore pound

Spotted in the Forum, have a look, very interesting but I cant work out why someone would buy (or state) a purchase value e.g. a leasehold terraced house in Warrington as £48,295,950 or a new build Flat on the outskirts as £16,028,500. Check out your neighbourhood.

Posted by enuii @ 11:40 PM 9 Comments

London property will be mortally damaged during the great unwind

ICIS Chemicals: China fooled the world, and now comes the Great Unwinding

It is exactly a year since we forecast that a Great Unwinding of stimulus policies was underway, due to a major slowdown in China....Those who have chased London house prices into the stratosphere may come to learn a similar lesson, as the Chinese buyers who have powered demand for new-build houses in the city centre exit their positions.

Posted by hpwatcher @ 06:30 PM 5 Comments

Another interesting article my Merryn Somerset Webb

Moneyweek: How super-low interest rates are ruining the economy

"If you can’t get a return on cash, says Capital Economics, you might as well rent out your old home or just keep it empty when you move" This is an interesting idea. While the renting out part is not a disaster - it doesn't shrink the supply of housing, just reduces liquidity - the leaving empty is a big problem. If there's no fire lit under the landowner by interest rates in excess of house price inflation, if you have the cash flow, you can hold onto the house for a lot longer. My neighbour did this - house was on the market but empty for moire than 6 months before she extracted a crippling sum from the buyer. Over this period, the increase in price dwarfed any actual opportunity cost.

Posted by mombers @ 02:10 PM 10 Comments

More green shoots....UK heading for low wage, low growth and high debt

Mail: Number of people with a zero-hours contracts jumps by a fifth in a year and 40% want to work more

The number of people who say they have a zero-hours contract has jumped by a fifth in a year, new figures showed today. The Office for National Statistics said 744,000 have a deal which does not guarantee any hours, with 40 per cent saying they would like more work.

Posted by hpwatcher @ 12:04 PM 4 Comments

Losing momentum?

Guardian: Annual house price growth at slowest point for two years

The annual rate of house price growth was the weakest for two years in August, said Nationwide, despite a 0.3% monthly rise in prices. The Nationwide’s findings on house prices reflect a much more modest growth than that documented by rival Halifax. Earlier this month, Halifax reported that house prices are almost 8% higher than they were a year ago and are likely to rise again over the coming months.

Posted by debtserf @ 11:44 AM 3 Comments

Tuesday, September 1, 2015

Forget interset rate rises - the Fed is bluffing

Counterpunch: Return to crisis : Things keep getting worse

With US stock, bond and real estate markets all looking over-valued, at the same time (in 1929 it was only stocks) and investors fleeing stock and bonds, interest rate rises are out. Corporations need to borrow to manipulate stock-markets upwards via buy-backs, banks need to protect the value of securities on their books - kept up by low IRs, and the last thing corporations with declining earnings and revenues need is to divert more cash to debt servicing.

Posted by icarus @ 06:19 PM 19 Comments

Real estate as investment and tax dodge, rather than as dwelling

The New York Times: Lovely, Lamentable London

What draws the world to London is opportunity. But it is also a magnet for people looking for a safe place for their money. Having made it in countries like Russia and China with a cowed press, rampant corruption and no rule of law, oligarchs and crony capitalists reach the conclusion that they like nothing as much as democratic systems with real legal systems and a vigorous press. Having trashed the West they trust the West with their money, driving up prices in prime markets to the point where the middle classes of those countries, with incomes stagnant or falling (and taxed), are pushed aside. London is the capital of these trends. That is the different reek, of something amiss and skewed and wrong, in its purring streets.

Posted by sneaker @ 10:30 AM 3 Comments

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