Working/Saving is for losers says BoE Chief economist
Haldane believes that property is a better bet for retirement planning than a pension. "It ought to be pension but it's almost certainly property," he said "As long as we continue not to build anything like as many houses in this country as we need to ... we will see what we've had for the better part of a generation, which is house prices relentlessly heading north." Ros Altmann, the former pensions minister, said his comments were "divorced from reality" and it was "irresponsible" to suggest people should rely on property rather than pensions.
HaHaHa The Specials were right but not for the reason they envisaged
Oh dear me, the price of property, rising rents, neighbours who like quiet and the greed of speculators and property developers. 'Destroying cultural hot spots in favour of empty blocks of luxury flats is the worst thing that we can do to this city.' London gets what it deserves now it doesn't belong to Londoners anymore.
Will the huge surge to the right in Europe inpact house prices
Europe is a tinder box ready to explode. Southern Mediterranean countries with 50% youth unemployment are full of angry young men. it has now spread to the North. The FAVOURITE for the Dutch elections has launched a manifesto where he will ban mosques, send immigrants home and not allow Jews or Muslims, none pork options in schools. Marine le Penn is becoming mainstream in France. In Germany the far right have been accelerating faster than any time in the last 70 years. Both Hungary and Poland elected right wing governments and are refusing refugees. in Austria after election fraud nulled the last election, it is almost sure that the far right wing candidate will get in. Europe is likely to implode before we finally leave the EU in two years. What will happen to our ponzi housing market?
"sales have slowed and prices fallen since the vote"
This week, exactly two months after the vote for Brexit, I spent an hour on the property site Zoopla looking at the latest housing sale data available. Anyone can do this at the click of a button. Unlike the rise in stamp duty in April, which was well anticipated, the vote to leave the EU was not. And all markets react most strongly to the unanticipated.
Its all on sentiment now
"Transactions fall when sellers refuse to drop the price they will accept because they want to believe that the economic effect of Brexit has been overplayed. They also fall when first-time buyers and landlords decide to wait to see if these small falls are a sign of more to come. It is a battle of collective wills: a standoff." One thing i would add is the current uncertainty in the workplace. Employers certainly havent missed the opportunity to beat their staff with the Brexit stick!
The suggestion is that as (company) pension funds are underfunded, then instead of paying dividends the money should go to make up any shortfall in the fund. Ignoring any other side effects from stopping dividends, you would have to ask yourself how many independent pension funds are based on receiving dividends... This is not directly connected to housing but considering the whole point of BoE policy since 2008 has been to ward off deflation through any means possible, money is disappearing anyway like whack-a-mole. Which makes me wonder if even nirp and the other extreme measures are doing no more than -delaying- deflation because in the end these missing pension funds are -not- going to be spent.
How low can they go?
Daily Fail: RBS becomes the first bank to set negative interest rates: It's charging large firms to hold cash - so could families be next?
Will homeowners be paid to take out mortgages? It could be profitable for banks to lend out at, say, -0.01 if money they do not lend out that they have to park in the central bank is charged -0.4% interest rates. Remember, 0% is an arbitrary number because banking profit is about arbitration and opportunity cost. They receive cash at whatever cost the market delivers and add a mark-up, pocketing the difference.
Equivalent to Hinkley Point C every two years
Private landlords in the UK received twice as much in housing benefit last year - £9.3bn - as they did a decade ago, a report says. The National Housing Federation (NHF) study said the increase was due to a big rise in the number of private tenants claiming housing benefit. The NHF said this particular group of people had grown by 42% since 2008. In 2006, some £4.6bn in housing benefit was paid to private landlords, a figure which had more than doubled by 2015. NHF chief executive David Orr said: "It is madness to spend £9bn of taxpayers' money lining the pockets of private landlords rather than investing in affordable homes."
Unhealthy debt-to-property ratio for UK plc.
House Price Crash Cancelled
The annual rate of UK house price inflation accelerated to 8.7pct to June, according to official figures. According to the new House Price Index, the rise brought the cost of an average home to £213,927. The new "experimental" index comprises figures collated by the Office for National Statistics from data supplied by Land Registry, Registers of Scotland, Land and Property Services, Northern Ireland and the Valuation Office Agency. The figures do not fully reflect any impact of the result of the vote to leave the EU, which was declared on 24 June.