What a blasted relief to hear that the government is listening to the squeals of anguish about the visceral lack of new homes in the UK.  We need a million of them and we barely build a 100,000.

The big house builders can get funding from either raising capital through the Stock Market, lending institutions or private equity or a mixture of all.  This is ‘fine and dandy’ but the smaller niche developers are left high and dry.  They are barely able to borrow 50-60% of the equity, with interest paid throughout the term, at an effective margin of 6-7%, when entry and exit fees are taken into consideration, and this is before any rise in interest rates. Continue reading →

As if we need any further evidence that as close a relationship as the press would have us believe there is between Cameron and Merkel you can never rely on Germany, or Europe, to ever defend Britain’s interests.

Here is the back drop; Europe is burdened with the following caustic mix of liabilities: a lethargic group of borderline recessionary economies, huge debt, low growth, deflation, high long term unemployment, and yet they still have the temerity to talk about our so called ‘overheated’ property market and that we should be initiating by way of a Mansion Tax or raising Council Tax.  What a cheek! Continue reading →

Although Mark Carney took a while to understand the mechanics of the British economy, I think he is certainly starting to understand the dynamics of the property market.  The London residential market is growing by circa 8% but in outer regions of the UK it is far less.

Help-To-Buy has had a substantial political effect but due to its limited scope it has not, in itself, been responsible for ‘stoking up’ a housing bubble at the lower end of the market and, therefore, it should not be prematurely withdrawn in line with certain bellicose comments against it.  It is an excellent initiative and should continue unabated for a while longer at least. Continue reading →