Letters to the Editor – 17/06 – Tale of two markets, Best of Twitter June 16, 2014 Tale of two markets [Re: Will the Bank of England’s new powers to tame the housing market be effective? yesterday] The UK is two distinct property markets. Outside London is domestically driven, so domestic policy matters to property prices. The ratio of average house prices to average incomes will track average mortgage to income ratios [...]
Rising UK house prices give pensioners a boost July 8, 2014 Soaring house prices and the strong pound have boosted UK pensioners’ standard of living at home and abroad, a raft of new data showed yesterday. For expats living in the Eurozone, the basic pension increased by nearly 10 per cent in the past year, according to an analysis by Prudential. The strengthening pound pushed expats’ [...]
Employment growth in UK’s construction sector hits all-time high July 2, 2014 The UK's construction sector is speeding up again this June, with activity growing at its fastest pace in four months. According to purchasing managers' index (PMI) data from Markit, the sector is expanding more ferociously than first estimated, with a headline reading of 62.6. Any number above 50 implies that activity in the sector is [...]
The steady spread of the Manhattan loft in London July 10, 2014 AN OLD optical works in Clapham may not be the first place you’d visit to discover a an emerging trend. But Macaulay Walk, a collection of new homes by developer Grainger, is transforming the site into Manhattan-style loft conversions, bringing London’s love affair with New York housing south of the river. Situated in Clapham Old [...]
UK industry and lending point to broader growth June 2, 2014 DATA released yesterday indicated a broad-based UK recovery, with British manufacturers growing apace, as figures on the housing market suggest recent regulatory changes have dampened a concerning upswing in mortgage lending. Markit and the Chartered Institute of Purchasing and Supply (CIPS) announced a figure of 57 for their purchasing managers’ index (PMI) in May, the [...]
As prices pass their 2007 peak, does the housing market pose a risk to the economy? July 2, 2014 Philip Lachowycz, economist at Fathom Consulting, says Yes. The mortgage lenders are again reporting substantial increases in house prices. And this is not happening from a position where property had become cheap – far from it. The current rises are happening from a base where, relative to incomes, the level of prices was already some [...]
UK trade deficit widens but construction is up August 8, 2014 The UK's trade deficit widened in June for the third consecutive month, going up to £2.5bn from May's figure of £2.4bn. Trade deficit is a measure of the difference between a country's imports and exports – and is a contributing factor to overall economic growth. Goods trade deficit In June, exports of [...]
Dismal Eurozone data adds to reasons not to hike interest rates September 3, 2014 Our panel of experts voted to hold interest rates again this week, with dismal data from the Eurozone adding to weak UK wage inflation as the major reasons mentioned not to tighten policy. The clear slowdown in the currency union has had little effect on hard economic data in the UK so far, but several [...]
The Silver Fix, a City staple since the Victorian era, bids farewell August 14, 2014 The London Silver Fix, the method used to set the price of the “devil’s metal”, which has been an integral part of London’s precious metals’ market – worth nearly a £1 trillion, is ending today after 117 years. Under the current system, three banks, HSBC, Bank of Nova Scotia and Deutsche Bank, arrange silver’s [...]
David Cameron and Ed Miliband head to Scotland for last minute campaigning as union hangs in the balance September 9, 2014 Leaders of the UK’s three main political parties all fly to Scotland today in a last-ditch attempt to persuade Scots north of the border to vote against independence in just eight days’ time. David Cameron, along with Labour’s Ed Miliband and Liberal Democrat leader Nick Clegg, made the unprecedented move of cancelling Prime Minister’s question [...]