March 2016 Archive

Wednesday, March 30, 2016

Assets and income

Telegraph: House price crash could leave savers without cash to fund retirement, Bank official warns

With a title like that, this simply *has* to be on the blog. Owning the roof over your head is a reasonable and sensible goal for retirement but you need an income as well. High house prices are making life harder for young people and distorting financial planning for pensioners.

Posted by quiet guy @ 10:02 AM 16 Comments

Friday, March 25, 2016

Hubble bubble toil and TROUBLE ?

Sky: Bank Of England Set For New Buy-To-Let Powers

 "highly likely" the FPC would be given the powers over the buy-to-let mortgage market "later this year". The number of mortgage approvals in February was also 26% higher than a year ago. The BBA's chief economist Richard Woolhouse said: "It appears that borrowers are continuing to try to get ahead of the increases in stamp duty for buy-to-let and second home buyers scheduled to come into effect next month." Saw this first on the forum... so shout out to those boys. One for Jack methinks.

Posted by techieman @ 09:34 AM 11 Comments

Tuesday, March 22, 2016

BTL is the national hobby - Fergus Wilson

Kent Business: Kent landlords Fergus and Judith Wilson sell property empire for £250m

I missed this at the time but it goes some way to answering my question from yesterday about whether BTL was investing or a hobby. “Owning BTL became a hobby for Fergus Wilson that simply got out of control. He says BTL is the national hobby and is followed by millions."

Posted by crash bandicoot @ 10:43 PM 12 Comments

Sunday, March 20, 2016

Raise rents or sell?

Daily Telegraph: ‘Our 17 properties will lose £16,000 per year’

Existing landlords are caught between an income tax bill which is set to begin rising next year, or the stamp duty hit involved in incorporating their properties now

Posted by tom101 @ 11:10 AM 15 Comments

Thursday, March 17, 2016

The repayment mortgage is an 'expense' and other nonsense

Torygraph: The Government's buy-to-let tax changes mean I will have to sell - or raise rents

Landlords will have to PAY more than £300 A YEAR to buy their BTL thanks to the chancellor's war on value adders and wealth creators.

Posted by landofconfusion @ 12:05 PM 4 Comments

Wednesday, March 16, 2016

Landlords dodge stamp duty

Daily Mail: How landlords are using companies to dodge the stamp duty crackdown on property purchases

Where there's a will ... Buy-to-let mortgage lending is booming ahead of the Chancellor’s tax hike – with a soaring number of landlords reportedly using companies to flout the crackdown. Landlord loans rocketed by 22 per cent in January compared with the same month in 2015, as buyers rush to beat the forthcoming tax changes. At the same time property firms are reporting a huge rise in the numbers buying through companies in a bid to flout the new rules.

Posted by doomwatch @ 04:57 PM 3 Comments

Tuesday, March 15, 2016

Young families priced out of rental markets in two-thirds of the UK

Guardian: Young families priced out of rental markets in two-thirds of the UK

Figures suggest soaring rents make having children financially prohibitive for young couples in southern England and beyond.

Posted by doomwatch @ 01:59 PM 6 Comments

Monday, March 14, 2016

London crumbles

Daily Express: Property market WARNING: House prices in London to crumble amid tax changes

BRITAIN's housing market is set for a major slowdown over the next few months amid growing fears London's house prices are about to crash Who in their right mind would buy a house before the referendum.......

Posted by tom101 @ 01:16 PM 4 Comments

Saturday, March 12, 2016

One for libertas

Yahoo/Telegraph: How falling interest rates could mean your mortgage bill goes UP

"How could low or negative interest rates make mortgages more expensive? One answer, according to banking analysts, is that when rates fall to very low levels banks start to bear costs relating to the money they hold on deposit. In a negative rate environment, deposits present actual costs. It is difficult to pass these costs onto depositors. In fact very few banks, even in countries like Switzerland where negative rates have prevailed for some time, pass any cost directly to savers. Instead to protect their profits, banks have to increase the charges they levy upon borrowers."

Posted by cornishman @ 10:06 PM 4 Comments

Friday, March 11, 2016

Help to buy is riddled with loopholes that the privileged can easily exploit

Guardian: Help to buy is riddled with loopholes that the privileged can easily exploit

"And rather than address the root causes of the housing crisis – speculation, a lack of supply, a stilted economy and the collapse of the social rented sector – politicians opt to prop up an unsustainable housing market with state cash, to mollify homeowners who are understandably nervous of negative equity. "

Posted by becky @ 08:00 AM 3 Comments

Thursday, March 10, 2016

Money printing just got turbo charged

BBC: The European Central Bank cut rate from 0.05% to 0%

The European Central Bank has cut its main interest rate from 0.05% to 0% as part of a package of measures intended to revive the eurozone economy. The bank will also expand its quantitative easing programme from €60bn to €80bn a month. The ECB also decided to further cut its bank deposit rate, from minus 0.3% to minus 0.4%.

Posted by peter_2008 @ 05:12 PM 5 Comments

Saturday, March 5, 2016

Fragility at the high end

City AM: Battersea panic stations: Investors flee luxury scheme as up to £2m is knocked off some asking prices

"More than 50 luxury flats on sale at London’s iconic Battersea Power Station have had their prices slashed since January, with some seeing discounts as large as 38 per cent in a sign that wealthy foreign investors are scrambling to desert the scheme. The news adds to fears that demand for prime homes in the capital is waning as the chancellor’s reforms to stamp duty and capital gains tax, coupled with the collapse in oil prices and falling Asian currencies, are leaving overseas buyers out of pocket." This is an extreme case not representative of the big picture but it's also a reminder that nothing is a sure bet.

Posted by quiet guy @ 01:38 PM 22 Comments

Friday, March 4, 2016

Mortgage lenders show UK house prices heading in opposite directions

Guardian: Mortgage lenders show UK house prices heading in opposite directions

Hansen Lu, a property economist at Capital Economics, said the monthly figures from both lenders suggested that the increased activity in the market “may, at least so far, be having only little impact on prices”. He said this could be because prices were already so high that buyers were unable or reluctant to keep bidding up prices. “Other buyers, especially those purchasing for the first time, may be delaying until competition in the market cools after the April stamp duty deadline – helping to keep a lid on price growth,” he added.

Posted by becky @ 12:28 PM 3 Comments

Thursday, March 3, 2016

The National Landlords Association forecasts that half a million buy-to-let flats will hit the marke

Spectator: Buy-to-let investing just became a very, very bad idea

Merryn Somerset Webb explains that the maths for BTL has changed. And the Chancellor and the Bank of England could well change it further.

Posted by a saver @ 06:30 PM 5 Comments

Bearing Up ... or should that be down?

House prices down 1.4% last month. More falls to come?

Halifax: Annual house price growth unchanged at 9.7%

UK House prices February 2016 (seasonally adjusted) Annual change +9.7% Quarterly change +3.0% Monthly change -1.4% Average Price £209,495

Posted by cornishman @ 09:19 AM 13 Comments

Wednesday, March 2, 2016

Totally screwed up

Guardian: Developers accused of restricting supply of new homes to boost profits

Britain’s developers have been accused of increasing their profits from the UK’s housing crisis by restricting the supply of new houses to keep prices artificially high. Latest figures reveal that nearly half a million homes in England now have planning permission granted but have yet to be built. The length of time it takes for developers to complete a house has jumped from 24 months to 32. It reignites a long-running row between policymakers and the housebuilding sector over who is to blame for the current housing shortage.

Posted by quiet guy @ 02:25 AM 10 Comments

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