Thursday, April 7, 2016

Back to the future?

Personal finance: How the house market lost its Miras touch

A few folks here - myself included - have likened the current BTL tax changes to the loss of Miras in 1988, I thought id look up an old article so that we can see what people were talking about. For those youngsters on here this might be an eye-opener. But ofc THIS time its different ;)

Posted by techieman @ 10:15 PM (4333 views)
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10 thoughts on “Back to the future?

  • Good find TM !

    As a 50 something I remember this well along with other changes such as the withdrawal of LAPR. Lets wait and see if the BTL changes bring about a similar outcome.

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  • i remember the 90`s says:

    Reading that put a shudder down my spine ,but its different this time is it not.!!!!!!

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  • Really good find TM. Feeling that shudder as well!

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  • … and it wasn’t just the punters who were sucked in. Jack you will probably remember deals by the banks (I think Lloyds TSB – “Black Horse Estate Agencies” and Abbey National “Cornerstone”) to but estate agencies at exactly that time! Or maybe my memory is failing me:

    “Lloyds TSB Group P.L.C. said yesterday that the sale of its Black Horse Agencies Group to Bradford & Bingley Building Society would result in a net loss of $:100 million [sic – should be £100m] , or $167 million. Lloyds TSB, based in Brighton, England, is a banking company. ”

    “Abbey National sells estate agents for 8m pounds: Two entrepreneurs buy Cornerstone chain after bank’s losses since 1987 mount to at least pounds 243m” – Independent 16th August 1993

    I am wondering if the new Tepilos / Purple Bricks and Easy Estate Agencies – are the indicator that a similar situation to the banks getting involved in the “Vertical integration” in the late 80s. Im not saying these companies will inevitably lose, but the residual market – e.g. Foxtons and both country wide and local equivalents might struggle.

    Any views?

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  • I forgot all about Life Assurance Premium Relief! – Thanks for the reminder!

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  • Hi TM – yep, remember it well and of course Halifax were deeply involved at the same time stepping in to prop up the estate agents (clearly a deck of cards that would have brought the house down)

    How ironic that Bradford & Bingley were involved in one of the purchases ! I suspect we will find history repeating itself ie the current situation will end badly (Enfield apart of course)

    Enjoy the weekend everyone

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  • I remember it well. I also remember the dramatic change in sentiment. People were saying property would never rise again. The three times salary multiple was oft quoted as to how ridiculous it had become and people were saying you would never get your money back. But the crazy thing is that the bubble then was nothing in comparison to what it is now.

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  • I remember it well. I also remember the dramatic change in sentiment. People were saying property would never rise again. The three times salary multiple was oft quoted as to how ridiculous it had become and people were saying you would never get your money back. But the crazy thing is that the bubble then was nothing in comparison to what it is now.

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  • “As 1988 began, the property market looked – to use a phrase from that era – unassailable. The year started with the average London house worth pounds 81,452, up an astonishing 50 per cent on the figure just two years earlier.”

    Gosh, well, folk buying back then must feel like silly fools owning £600k homes outright.

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  • .. not quite as good as the ones who sold in 1988 and bought in 1993 ; )

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