April 2016 Archive

Friday, April 29, 2016

Angry tenants across London have been taking to social media to share their renting horror stories

Slowing down

Telegraph: House prices fall almost everywhere as property market takes on 'uncomfortable' feel

"The infection from luxury to mainstream is much more transferable than anyone imagines, and these are the reasons why I am troubled by the Land Registry figures," A troubled Henry Pryor The Land Registry data also revealed a fall in the number of completed house sales in England and Wales in January fell by 5pc to 54,254 compared with 56,937 in January 2015. This dispels reports that there was a rush to buy a second home or a buy-to-property ahead of April - when the Chancellor introduced a 3pc increase in stamp duty on these two buyer tribes.

Posted by tom101 @ 11:46 AM 7 Comments

Wednesday, April 27, 2016

Housing lunacy cont....

Business Insider: Britain is crashing into the end of the homeownership era

The average price to buy a house in Britain now stands at £291,504, according to the Office for National Statistics. Meanwhile, the average London property price is at a huge £551,000

Posted by tom101 @ 02:39 PM 10 Comments

Monday, April 25, 2016

New figures show house price rises are slowing in London, and rising faster in surrounding regions

Rightmove Houseprice Index: UK house prices:the East and South-East regions are both growing faster than London for the first time this year

Greenwich 21% - Hounslow 15.7% - East of England 10.8% - Enfield 10.6% - South East England 9.4%.

Posted by libertas @ 10:13 PM 1 Comments

Sunday, April 24, 2016

NIRP is the new normal

Telegraph: Interest rates could go negative, says Bank of England rate setter

They could go "a little bit negative” he said. And then, once the camel's snout is under the tent, well, you know what happens next. And they said they had no room for monetary policy with the next downturn?!

Posted by libertas @ 09:38 PM 15 Comments

Keeping an eye on the Blairs

Mirror: How Tony Blair's family have built a buy-to-let property empire in Manchester

In one city they have twenty eight one bedroomed flats in Stockport, Whalley Range & Urmston grouped in five sites. Simple rule of thumb appears to be 1 bed less than 100k with receiverships/repossessions being a bulk buying favourite.

Posted by enuii @ 04:23 PM 1 Comments

Saturday, April 23, 2016

Value or ponzi?

Zero hedge: Sold For $68 Million

Anyone that believes that the London market is down to short supply and immigration and will go on forever on an upward trajectory should read what is happening in Vancouver. Bubbles are fine if you can get in and out on the way up. If the Chinese are doing this in Vancouver, what have they done to stoke the London market and what is going to be the impact when this reverses?

Posted by britishblue @ 01:18 PM 3 Comments

Friday, April 22, 2016

Debt trap

Telegraph: First-time buyers need £90,000 salary to pay off Help to Buy loan in five years

The Help to Buy loan helps first-time buyers afford property - but they should be aware of the interest payments...

Posted by tom101 @ 11:06 AM 0 Comments

Thursday, April 21, 2016

Property prices up, economy down

Washington Post: We can't save the economy unless we fix out debt addiction

What links high house prices to a sluggish economy and wealth polarisation? Debt, financialisation, austerity and banker-friendly governments.

Posted by icarus @ 09:10 PM 2 Comments

Competition is never a good idea if you want to make money

Telegraph: Fines or prison for conspiring estate agents deliberately cutting off business for Rightmove or Zoopla

The Competition and Markets Authority (CMA) has warned estate agents against colluding to join the On The Market property portal, deliberately cutting off business from either Rightmove or Zoopla. Things must be getting bad. I guess everyone is sitting tight until Independence day.

Posted by tom101 @ 02:16 PM 0 Comments

I wonder if there is any scope under UK law for similar actions?

New York Times: In Cramped and Costly Bay Area, Cries to Build, Baby, Build

"So Ms. Trauss is taking her campaign to the courts. In December she sued the city of Lafayette, Calif., an East Bay bedroom community, after it took a parcel that had been set aside for higher-density apartments and office buildings and rezoned it for single-family homes instead." I'd say that Competition and Markets Authority would have a very strong case against anyone involved in restricting the supply of housing - you simply don't get such a ridiculous spread between cost of production and prices unless there are serious impediments to competition. Maybe councils that fail to produce enough housing under their Regional Development Plans or whatever they are now could be taken to court?

Posted by mombers @ 01:14 PM 0 Comments

Wednesday, April 20, 2016

Poor rich people

Independent: House Prices: London’s super-rich are now renting to avoid stamp duty and taxes

London’s super-rich are increasingly turning to renting in order to avoid paying stamp duty on expensive purchases, a new report shows. Henry Pryor, a buying agent, told the Financial Times that the Panama Papers has highlighted that ‘no one can buy quietly’ anymore.

Posted by tom101 @ 12:37 PM 3 Comments

First time buyers trading up to BTL lords

Bloomberg: U.K. House Prices Hit Record as Landlords Spark Chain Reaction

U.K. house prices climbed to a record in April as demand from landlords in the previous month created knock-on effects through the property market, according to Rightmove Plc.

Posted by tom101 @ 12:31 PM 0 Comments

Monday, April 18, 2016

How to predict the impossible with a straight face

Daily Telegraph: NHS and public services will face billions in cuts if Britain votes to leave EU, George Osborne to warn

George Osborne is warning that public services will face cuts if Britain votes to leave the EU The NHS, schools and defence will face billions of pounds worth of cuts and householders will be £4,300 poorer a year if Britain votes to leave the European Union because of the economic impact of a Brexit, George Osborne will warn. I'm guessing one key assumption is that the rest of the EU will continue as it is. In wonderful harmony......

Posted by tom101 @ 01:21 PM 5 Comments

Friday, April 15, 2016

George reckons brexit will make your mortgage dearer

Guardian: George Osborne says Brexit will drive up mortgage rates

Basically if X happens, then Y will happen and because Y happens it will cause Z and that will mean interest rates will rise from 0.5 percent and therefore your mortgage will go up. So be afraid, very afraid, and vote accordingly.

Posted by enuii @ 06:22 PM 11 Comments

Thursday, April 14, 2016

ONS oops again

Guardian: London property values plummet after ONS revises figures

House price index ‘update’ blamed for revised data, which suggests average price in February was £27,000 lower than figure declared in January "...prompting the Guardian to report that London house prices “rose almost £500 a day in January”, and that the capital was “powering ahead”. Well they could always compare with other sources and check their data before they go to press once in a while!

Posted by tom101 @ 04:54 PM 5 Comments

You will be lucky

Independent: Housing crisis: First time buyers will need a £64,000 salary to afford the average home by 2020, Shelter warns

In reality though, is this really a crisis? £64,000 divided by two is £32k each for a couple for the average house. Of course, most first time buyers do not buy an average house and we would have collapse level economics for that to be the case. Furthermore, single people will generally buy studio flats.

Posted by libertas @ 09:34 AM 4 Comments

Wednesday, April 13, 2016

Enfield showing "startling" growth

Evening Standard: Countryside soars as Londoners flee overpriced capital

Commuter-belt builder Countryside is selling homes for more than half a million pounds each on average as Londoners are priced out of the centre of the capital, chief executive Ian Sutcliffe said today. Areas such as Acton in the west, Enfield to the north and the A13 corridor heading east were in the strongest demand as average selling prices for private homes jumped a startling 47% to £508,000.

Posted by libertas @ 09:50 PM 10 Comments

It's all looking a bit grim down South

Daily Telegraph: House prices: Is the South East the next unaffordable property hotspot?

House prices continued to motor ahead in the year to February 2016, fuelled by strong growth in the south of England and a supply shortage across the country Supply shortage or too few people/companies owning too many properties? They've always been a couple of policies away from sorting this home/housing/property mess out. Plenty of good policies to copy in Europe.

Posted by tom101 @ 12:05 PM 1 Comments

Tuesday, April 12, 2016

George Osborne's rental yield

Daily Mail: Aspiration not a dirty word

Osborne bought his London home for £1.85M in 2006 and last year rented it out for £67,000. That's a gross yield of 3.5% ish and I reckon would be 2% net. I guess this all makes sense to him.

Posted by peter_2008 @ 12:45 PM 8 Comments

Why younger people can’t afford a house: money became too cheap

The Guardian: Why younger people can’t afford a house: money became too cheap

"Onerous planning regulations and cheap debt pushed house prices into the stratosphere – and it’s in the interests of the political elite to keep them there"

Posted by becky @ 11:57 AM 0 Comments

Ukrainian invasion of EU / UK commences

Infowars: AS UKRAINE COLLAPSES, EUROPEANS TIRE OF US INTERVENTIONS

If the flood of immigrants from the Middle East were not enough to sink our Socialist ways, dry up our housing supply and result in breaches of peace as legitimate refugees are mixed in with Jihadis and fighting age single males who have raped and pillaged their own countries, this could tip the balance. Ukraine is collapsing now and has over 45 million people and has a porous border with Russia, with 144 million people. But not only, it also has a porous border to practically the old Soviet Union, which had over 240 million people. Just as Turkey and Greece have now porous borders to the whole of the Middle East. Has the US / NATO sponsored Ukrainian Coup De Ta resulted in the EU biting off more than it can chew? IF YOU DON'T HAVE A HOUSE NOW, FORGET IT #BREXIT

Posted by libertas @ 12:51 AM 7 Comments

Sunday, April 10, 2016

Sterling weakness translating into minor inflation

This Is Money: Inflation accelerated to 0.5% in March - but an interest rate rise is still a year away, say economists

Well, this was unexpected. Could BREXIT clouds result in further Sterling drops, resulting in inflation that would precipitate need for an interest rate rise earlier than thought, or, in light of us having been below the 2% target for so long, surely there would be no panic at 3% inflation rates for a period? That could help resolve the national debt! Or will this be short lived and will deflation return?

Posted by libertas @ 02:40 PM 2 Comments

Deflation and negative rates

Zero Hedge: Meanwhile In Germany, An Unexpected Ad Appears

"During a leisurely stroll around Germany, one may encounter many strange sights but nothing would stranger than the following ad (courtesy of Peter Barkow) which promises negative 1% interest rates for consumer loans up to 24 months." This is discounting serious consumer price deflation over the next 2yrs, with loans like this attempting to stop customers from putting off purchases in the hope that prices will be cheaper in 2yrs time. Essentially, it is the market attempting to counter deflation expectations to shift people's time preference for purchase from the future to the present. And thus negative rates come not only from the central bank, no, they also come from market forces in a deflationary environment, to some extent.

Posted by libertas @ 02:18 PM 0 Comments

CPI vs real inflation

Chapwood Index: The real cost of living increase index

This is an American cost of living increase index. It includes rent and mortgages. It shows that in most US cities the cost of living increases every year by a whopping 10 - 11%. What would that index show if it were applied over here?

Posted by icarus @ 11:49 AM 1 Comments

Saturday, April 9, 2016

Britain any time soon?

Zero Hedge: First Denmark, Now Belgium Is Paying People To Take Out A Mortgage

We didn't have to wait long before Denmark's Nordea Credit unleashed this idiocy. And now two banks in Belgium have followed suit, paying instead of charging interest on mortgages to a handful of customers.

Posted by libertas @ 10:50 PM 0 Comments

Next crash, 2026.

Market Oracle: UK Housing Market Panic Buying Accelerates House Price Inflation to Over 10% Per Annum

Barely a few weeks on from when Britain's housing market bears were starting to reappear on the scene in the mainstream press with perma doomsday headlines that followed Februarys 1.5% plunge and on the back of news of a fast slowing UK economy. Now out pops the Halifax with its latest data that show average UK house prices have once more accelerated to above 10% per annum! By galloping ahead by a whopping 2.6% for March near double Februarys 1.5% drop, and despite Februarys drop are up by 2.9% so far this year which converts into an annual inflation rate of 11.6%. The bottom line is that whilst the BULL MARKET currently remains on track to run for several more years, nevertheless don't forget that at the end of every bull market lies a BEAR MARKET.

Posted by libertas @ 12:06 PM 6 Comments

Friday, April 8, 2016

Something contagious is in the air

Daily Telegraph: London property market cooling as asking prices are slashed

London’s property market appears to be cooling down with research revealing that up to 40pc of houses for sale in some areas of the capital have had to cut their asking prices since coming to market

Posted by tom101 @ 05:53 PM 2 Comments

Money's too tight (to mention)

BBC: Half of London's tenants 'struggle to pay rent'

More than half of London's private tenants are struggling to pay their rent, housing charity Shelter has said.The research by Shelter and YouGov also found almost half of families have had to borrow money to cover the costs.One in three tenants have fallen into debt in the last year in an effort to meet monthly payments, Shelter found. IMO this ties in nicely with techieman's "something for the weekend" post and particular his reference to Steve Keen and private debt on Thursday, April 7, 2016 @ 01:21PM

Posted by jack c @ 10:07 AM 1 Comments

Thursday, April 7, 2016

Back to the future?

Independent: 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 10 Comments

Wednesday, April 6, 2016

Interesting

Guardian: Revealed: the tycoons and world leaders who built secret UK property empires

More than £170bn of UK property is now held overseas. Much of that is in London, where unprecedented house price inflation has transformed homes into highly profitable investments for asset speculators. Nearly one in 10 of the 31,000 tax haven companies that own British property are linked to Mossack Fonseca.

Posted by quiet guy @ 12:25 AM 6 Comments

Tuesday, April 5, 2016

Start of something bigger?

Dailymail: Sellers of prime london homes drop prices

similar recent reports about battersea new homes sites and the 54000 new flats under construction

Posted by taffee @ 10:28 AM 6 Comments

Saturday, April 2, 2016

Something for the weekend ?

The property podcast: The 18 year property cycle

A bit cringe worthy but no surprises there! First came across this in Harrison 's Boom Bust book. Is this Libby's reason d'etre ? Comments are based on the download.

Posted by techieman @ 06:58 AM 31 Comments

Friday, April 1, 2016

A nice collection of stories from the world's worst value rental market

Shelter: Need a new place to rent? Try Dodgy Lettings

"The Dodgy Lettings website shows renting at its worst. Thankfully, most of it isn’t like this – the English Housing Survey shows most tenants are satisfied with their accommodation." ALL tenants should be DELIGHTED with their accommodation with the prices they are forced to pay...

Posted by mombers @ 12:58 PM 0 Comments

Spring bounce?

Telegraph: House prices rise by highest rate in a year as buyers rush to avoid stamp duty hike

Nationwide’s monthly house price index found that the price of a typical UK home was 5.7pc higher in March compared with the same month last year - the strongest pace of growth since February 2015.

Posted by hpwatcher @ 12:01 PM 7 Comments

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