Peer-to-peer lending: What will happen in a downturn? March 30, 2016 Speak to any fund manager about their interest in peer-to-peer lending, and they all say the same: “it really needs to go through a business cycle, then I’ll look at it properly”. During the financial crisis, only one P2P lender was in existence – Zopa. Since then, it has been joined by industry heavyweights Funding [...]
The crucial lesson China teaches the West about bank lending – and economic growth March 30, 2016 So, The Financial Times has finally questioned the wisdom of using QE to purchase good assets. You’d have thought that someone would have noticed the effect by now: new money for old assets just pushes up their price. To hope it creates a “wealth effect” and engenders confidence is a bit perverse. If bank lending [...]
How the investment industry splits on Brexit March 30, 2016 The investment and asset management industry is sharply divided on the impact of Brexit, mirroring the views of individual investors. A February survey by the Share Centre found that 63 per cent of personal investors would vote to leave the EU, up from 44 per cent in August 2015. But how do the opinions split? [...]
Bank of England clamps down on buy-to-let market with strict new rules for mortgage underwriters March 29, 2016 The Bank of England has today revealed plans to clamp down on the buy-to-let market, setting out strict new rules for banks underwriting buy-to-let mortgage contracts. In a new paper out today, the Prudential Regulation Authority (PRA) said lenders will need to meet a minimum set of requirements before underwriting buy-to-let mortgage contracts, including assessing the [...]
Buy to let rule changes proposed by the Bank of England see economists and landlords butt heads March 29, 2016 Economists and landlords were at loggerheads today in an unlikely battle between homeowners and number-crunchers over the latest clampdown on the buy to let (BTL) market. Following a four-month investigation, the Bank of England today announced plans to tighten the terms and conditions under which banks and building societies can offer mortgages to anybody purchasing residential rental [...]
London to face biggest changes from buy-to-let lending clampdown: As landlords brace for tougher mortgage checks, experts say investing in buy-to-let will be tougher in the capital March 29, 2016 Landlords are facing tougher rules on mortgage borrowing following an announcement from the Bank of England – and the biggest impact will felt in London, experts say. Buy-to-let has grown massively and now there are concerns about a “bubble emerging in this market,” Chancellor George Osborne said. The Bank believes overly indebted landlords pose a risk [...]
Zac Goldsmith, Sadiq Khan or Caroline Pidgeon: Why the next mayor of London will be the candidate who puts renters first March 29, 2016 “This election is a referendum on housing”, Sadiq Khan has claimed. He's right – no section of London society has been let down as badly as its legion of renters. There are problems across the full scale of renting, not least with the dearth of affordable housing. The capital’s private lettings market is outdated, fragmented [...]
Buy to let investors scramble to secure home purchases before April stamp duty rise March 29, 2016 Buy to let investors are storming the housing market to beat higher taxes that will come into force in April. In February, 85 per cent of estate agents reported an increase in the number of buy to let investors looking to purchase properties, according to data released by the National Association of Estate Agents (NAEA) released [...]
Bank of England sets out UK bank stress test scenario and reveals plans to raise the countercyclical buffer rate for British banks in 2017 March 29, 2016 British banks, building societies and investment firms will need to build up their cash piles under new rules revealed today by the Bank of England. In a statement today, the Bank’s Financial Policy Committee (FPC) said that even though British banks have improved their “resilience” in spite of global and domestic headwinds, investors expect weaker [...]
Landlords braced for tough new lending restrictions, as Bank of England concludes investigation into buy-to-let mortgages March 29, 2016 The Bank of England could today respond to concerns about a frothy housing market by announcing new lending restrictions on landlords and those taking out buy-to-let mortgages. This morning the Prudential Regulation Authority (PRA), the Bank’s supervisory arm, will publish the results of a four-month long investigation into underwriting standards – the terms and conditions lenders [...]