May 2017 Archive

Saturday, May 27, 2017

... But but but... Enfield still looking good ??

Business Insider: House prices in London are being cut as the once-crazy market continues to cool

The number of asking-price reductions is growing fastest in outer London boroughs like Barking & Dagenham, where 28% of homes were discounted compared to 21% in January, and Newham, where 24.5% had reductions compared to 20% in January.

Posted by techieman @ 06:16 PM 27 Comments

Thursday, May 25, 2017

Here's what sends US rents through the roof.

Michael Hudson: Another housing bubble?

In 2008 the problem stemmed largely from liar loans for buying houses. Not so now. 10 years ago US rents tended downwards because new owner-occupiers were desperate to have renters to help with the mortgage. So, house prices rose while rents fell. After 2008 a large % of the 10m foreclosures were bought for cash by hedge funds (HFs). With ZIRP the HFs decided that it was more profitable to buy foreclosed properties and let them out at high rents than it was to write mortgages or flip the properties. Mortgages are hard to get and HFs have monopolised the rental market in many areas - so renting is also hard. So the banks are looking for more NINJAs to whom they can lend. Answer - government guaranteed student loans, which create spiv universities.

Posted by icarus @ 12:50 PM 0 Comments

Wednesday, May 24, 2017

How much bear food do all you silent bears need?

Financial Times: City of London skyscrapers rise just as demand heads down

[...] he flowers are on the reception desk. The easy chairs are neatly arranged. Five hundred bike racks are waiting for cycles. One Creechurch Place, in the heart of the City of London, is ready to go. There is only one problem: the 17-storey development, which was completed last year, is empty. It has 272,000 sq ft of office space but, so far, no tenants. The EC3 postcode area in London’s financial district is known for two things — the insurance industry and skyscrapers — but just as new towers are going up, demand for office space from insurers is on the way down. [...]

Posted by sneaker @ 09:59 AM 15 Comments

Same boom/bust cycle as always. Only this one began before we even paid for the last bust.

Financial Times: Shades of 2008 hang over London real estate

[...] A report by Deloitte this week showed the highest level of construction for 13 years of London offices but less than half the space has been let. There is a looming oversupply of commercial space in the city. British Land acknowledged as much, saying it would ease back on developing and warning that it was already giving away more to attract tenants with incentives and free periods. In the RICS survey, agents predicted that office and retail rents would decline. [...]

Posted by sneaker @ 09:57 AM 1 Comments

Tuesday, May 23, 2017

It was too quiet here on HPC ... TOO QUIET!

FT Advisor: London Rents Fall for First Time in Eight Years

One suspects that the era of property selling at "offshore prices" is over... As for "onshore prices" - they're probably about 50% lower than what those lovely offshore buyers thought was sensible to pay. But they neglected that (a) London is not land-locked like Hong Kong (b) new supply is possible (c) as a democracy, we can elect politicians who don't give a monkey's about offshore owners ... BECAUSE THEY DON'T VOTE. Game over London Super-bubble -- and this is just the first chapter. My key indicator was how quiet this perma-bearish site had become.... even the bears had capitulated.

Posted by sneaker @ 07:43 AM 1 Comments

The Trend is Your Friend Until it Ends

FT Advisor: Oversupply weighs on London rents

"The London property market south of the River Thames is beginning to suffer as large numbers of the planned 22,000 units between Battersea and Nine Elms have come to market, and are typically purchased by foreign buyers as rental investments. Data analysed by London Central Portfolio found a significant annual increase in available rental properties in this area of about 28.1 per cent."

Posted by sneaker @ 07:39 AM 0 Comments

Sunday, May 21, 2017

Offshore investors experiencing offshore drilling

Time Out: Rent Costs in London are Actually Going Down

So they both properly at the top. Then oil crashed, Russia got sanctions and a load of taxes came in to target offshore owners who, we, don't vote in the U.K. And finally Brexit. Not only are prices falling but Sterling collapsed. And now rents are dropping. Offshore drilling in progress!

Posted by sneaker @ 11:50 AM 5 Comments

Saturday, May 20, 2017

To own a home in London costs nearly double the amount it would cost to rent.

Friday, May 19, 2017

A million homes by the end of 2020

Torygraph: Tory manifesto proposes mapping who owns all the land in the country for the first time

Well we have gone back to the 1950's with all parties pledging a million new homes..... and land value capture from the Tories...

Posted by pete green @ 09:29 AM 3 Comments

Tuesday, May 16, 2017

London suffers the fastest fall in house prices of anywhere in the UK

Evening Standard: London suffers the fastest fall in house prices of anywhere in the UK

"London house prices fell faster than anywhere else in the country in March as the impact of Brexit finally caught up with the property market."

Posted by becky @ 04:14 PM 8 Comments

Friday, May 12, 2017

RTB-er milking the system

Telegraph: Woman raffling her London home for £3.75m bought it three years ago through right-to-buy – for just £360k

A homeowner who tried to raise £3.75m by raffling her home online bought the property three years ago using the controversial right-to-buy scheme, and paid just £360,000. The owner, who is believed to have lived there since 2002, bought the property under the Government’s right-to-buy scheme three years ago, according to documents lodged with the Land Registry. It is understood that at the time it was valued at £460,000. Land Registry records confirm, however, that the price paid was £360,000, indicating the buyers benefited from a £100,000 right-to-buy discount. The raffle was halted for breaking gambling laws , but he five-bedroom flat is still on the market, listed Rightmove for £1.25m.

Posted by little professor @ 11:07 PM 5 Comments

Monday, May 8, 2017

Trend or Blip?

BBC News: UK house prices in first quarterly fall since 2012

UK house prices are "stagnating" and have actually fallen in the last three months, according to the Halifax.

Posted by wdbeast @ 10:12 AM 6 Comments

Will Top End waves ripple outward?

The Guardian: Buy a home, get a car free: offers galore as London estate agents struggle to sell

Incentives including stamp duty subsidies of £150,000, iPads, sound systems and travel deals launched to lure buyers to purchase in capital’s affluent areas

Posted by rob @ 07:39 AM 0 Comments

Sunday, May 7, 2017

Shock! Political parties try to influence how people vote

Guardian: The great British Brexit robbery: how our democracy was hijacked

In this article you will discover most elections are won or lost by a relatively small number of floating or undecided voters. You will be further surprised to find politicians try to influence these marginal people. Read more in the Guardian about how data mining companies were used by the leave parties to send targeted advertising and mail so the Brexit result was practically fraud and should be annulled.

Posted by millaise @ 01:48 PM 0 Comments

Friday, May 5, 2017

Literally taking bundles of £50 notes and burning them

BBC: Town halls buy back Right-to-Buy homes

"Councils have spent millions buying back homes they sold at a discount under Right-to-Buy laws to meet housing shortages. Islington council spent more than £6.2m buying back homes it sold to people for less than £1.3m, a Freedom of Information request reveals." Can hardly be called privatisation if *Assets sold at huge discount *Continuing public subsidies in perpetuity. E.g. Housing Benefit for RtB BtL operators. Central government funding for local services not covered by council tax.

Posted by mombers @ 08:11 AM 5 Comments

What's the common denominator?

Daily mail: Canada tries to defuse property boom

When will the young wake to the fact This is a speculative bubble and nothing to Do with lack of supply?

Posted by taffee @ 07:59 AM 0 Comments

Dodgy government accounting results in disasters like this

Graniard: How the MoD’s plan to privatise military housing ended in disaster

"In 1996, the Ministry of Defence decided to sell off its housing stock. The financier Guy Hands bought it up in a deal that would make his investors billions – and have catastrophic consequences for both the military and the taxpayer" The government secured a 'good' deal, but only for 25 years. It sold homes for £1.67bn that are now worth £6.7bn and it has to start paying whatever rent Guy Hands can get away with rather than the much smaller amount that it would cost to run the estate. Similar to the Right to Buy fiasco - fire sale, made worse by paying over the odds for the same service that the asset originally rendered under state ownership

Posted by mombers @ 07:37 AM 1 Comments

Tuesday, May 2, 2017

BOMAD Rising

Telegraph: Bank of Mum and Dad now equivalent to the ninth biggest mortgage lender, paying out £6.5bn

Parents now fund more than a quarter of house purchases as young people and first-time buyers struggle increasingly to get on the housing ladder. The Bank of Mum and Dad has become the equivalent of the ninth-biggest mortgage lender in the UK, up from 10th place last year, making it bigger than Clydesdale Bank in the mortgage market.

Posted by jack c @ 11:09 AM 2 Comments

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