Government’s plan to subsidise credit could easily backfire June 14, 2012 USUALLY, formal dinners at Mansion House in the City are highly enjoyable but somewhat predictable affairs. This one was unusually exciting. For the first time I can remember, the speeches from George Osborne and Sir Mervyn King included major news bombshells. The Bank is launching an £80bn “funding for lending” plan to cut the cost [...]
Homeowners with long-term loans enjoy a rate hike pause June 13, 2012 INTEREST rate growth on mortgages steadied in May, according to Bank of England figures out yesterday – though economists warned this is likely to be a temporary and uneven pause in the long-term rise in rates. Homeowners with the riskiest loans saw a jump in rates last month. Banks and building societies offering a two-year [...]
Iceland’s stunning comeback gives Eurozone food for thought June 12, 2012 GUESS which developed country could enjoy the fastest growth this year? Come on? Alright, then – it’s Iceland. Its economy expanded by 2.4 per cent quarter on quarter in the first three months of the year, its fastest pace since its meltdown, boosted by exports, tourism and consumption. Annual economic growth was 4.5 per cent, [...]
Housebuilder Bellway enjoys strong sales June 8, 2012 Housebuilder Bellway announced today that it had enjoyed a “resilient” spring selling season, with visitor levels and reservation rates having surpassed expectations. This successful period meant that Bellway’s target set at the beginning of the financial year of achieving 5 per cent volume growth is now “secure”. Reservations increased following the introduction of government scheme [...]
The subprime mortgage crisis isn’t over – UK taxpayers remain liable June 7, 2012 THE subprime mortgage crisis isn’t over. On the back of misguided government policies, taxpayers in the US and UK remain on the hook for huge sums. The ideology of affordable housing must end. It took just 13 years to destroy the American mortgage market with devastating effects for the rest of the world. The process began [...]
Pressures ease on new homeowners June 6, 2012 Falling interest rates have eased the pressure on mortgage holding twenty-somethings, according to a charity that helps people who are struggling to keep up with payments. The number of first time homeowners fell from 4,489 in 2009 to 3,008 in 2011, according to the Consumer Credit Counselling Service. “The number of homeowners in mortgage arrears [...]
Ireland agrees to austerity as it angles for a new bailout June 5, 2012 LAST week I travelled to Dublin to report on the Irish referendum. Irish voters in the end voted in favour of ratifying the Eurozone’s fiscal compact by a wide margin, but there was little celebration. In fact, Taoiseach Enda Kenny got straight on the phone to Angela Merkel to plead for a deal on the [...]
Home shortage drives prices up, says Nationwide May 31, 2012 House prices are stuck at a high level despite a lack of demand because of a low rate of building, Nationwide said yesterday, arguing that allowing more construction will reduce the pressure of housing costs on households. The building society’s data showed prices rose 0.3 per cent in May, but dropped 0.7 per cent on [...]
S&P shifts insurers’ ratings rule May 31, 2012 Standard & Poor’s will change the way it assigns global ratings to insurers, in part to increase the consideration of country risk in the way a company is evaluated, the credit ratings agency said yesterday. The changes will apply to all insurance lines except bond and mortgage. In a statement, S&P analysts said the “significant [...]
House prices edge up in May May 31, 2012 House prices rose slightly more than expected this month to leave prices broadly unchanged on a year ago against a backdrop of generally subdued demand, according to figures from mortgage lender Nationwide. House prices rose 0.3 per cent in May after a 0.3 per cent drop the month before – a marginally bigger rise than [...]