Property Investment News and Analysis from Jet-to-Let Magazine

Research by Hometrack found that the year on year rate of growth has also slipped back, to +2.3%, which represents the lowest rate of growth ... more »

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Friday, January 25

Darling bows to pressure on CGT reform

by Jet-to-Let Magazine on Fri 25 Jan 2008 10:29 GMT

The Chancellor has said that tens of thousands of small business owners will benefit from a new "entrepreneurs' relief" after he bowed to business pressure to amend his capital gains tax reform plans.

Alistair Darling told the House of Commons that he would spend £200m of the £900m he ... more »

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Mortgage approvals hit by credit crunch

by Jet-to-Let Magazine on Fri 25 Jan 2008 10:22 GMT

The number of mortgages granted to new home buyers plunged to a record low last month as banks struggled with the credit crunch and potential buyers hesitated in the face of higher mortgage rates.

Only 42,088 mortgages were approved for new buyers by banks in December, lower than at ... more »

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Thursday, January 24

Trichet talks down rate cut hopes

by Jet-to-Let Magazine on Thu 24 Jan 2008 15:57 GMT

European Central Bank (ECB) chief Jean-Claude Trichet has talked down the chances of a European rate cut.

The US central bank cut interest rates to 3.5% from 4.25% on Tuesday to stave off a recession, and some analysts had hoped that the ECB would follow suit.

However, in a ... more »

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Wednesday, January 23

MPC damps aggressive cut expectations

by Jet-to-Let Magazine on Wed 23 Jan 2008 17:12 GMT

The Bank of England’s monetary policy committee voted eight to one to leave interest rates unchanged last month, according to minutes of the meeting published on Wednesday, while official statistics showed growth slowed slightly less than expected in the fourth quarter.

The MPC felt that “the short-run inflation outlook ... more »

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CBI director Lambert forecasts 'soft landing'

by Jet-to-Let Magazine on Wed 23 Jan 2008 17:10 GMT

Richard Lambert, the director general of the CBI, predicts a "soft landing" in the UK with some growth this year, despite the recent market turbulence.

Mr Lambert was speaking ahead of a surprise three-quarter point cut in US interest rates that saw the FTSE 100 index bounce by 161.9 ... more »

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Tuesday, January 22

Record mortgage lending in 2007

by Jet-to-Let Magazine on Tue 22 Jan 2008 15:18 GMT

Last year saw the strongest gross mortgage lending to date, but the market is weakening, the Council for Mortgage Lenders (CML) has said. CML figures showed gross lending reached £362bn in 2007, up 5% from £345bn in 2006, and above its forecast.

However, gross lending was £22.6bn last month, ... more »

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US interest rates cut by 0.75%

by Jet-to-Let Magazine on Tue 22 Jan 2008 15:15 GMT

US interest rates were slashed by three-quarters of a percentage point today as the American authorities responded to growing fears the economy was heading into a steep and prolonged downturn.

The US Federal Reserve said it was reducing its key federal funds rate to 3.5 per cent "in view ... more »

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Wednesday, January 16

Rate cut in doubt as unemployment falls

by Jet-to-Let Magazine on Wed 16 Jan 2008 17:46 GMT

The number of people claiming unemployment benefit fell to its lowest level for more than 30 years, while British average earnings unexpectedly rose in the three months to November.

Figures from the Office for National Statistics (ONS) show that average earnings growth, including bonuses, remained steady at 4 per ... more »

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Dominic Farrell: Issue 4 of Jet-to-Let Magazine - 2008 - What next?

by Jet-to-Let Magazine on Wed 16 Jan 2008 12:04 GMT

Dear Investor

Happy New Year!

We are flat out putting the final touches to the 4th Issue of Jet-to-Let Magazine which has grown in size by 35% to 60 pages of the latest news, information and feature articles on UK, Ireland and overseas property markets. Written by some of the ... more »

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Tuesday, January 15

UK inflation steady in December

by Jet-to-Let Magazine on Tue 15 Jan 2008 16:31 GMT

UK inflation remained unchanged in December, official figures have shown.

Last month's Consumer Prices Index figure - the government's preferred measurement - held at 2.1% for a third month in succession.

The biggest inflationary pressure was continuing high food prices, the Office for National Statistics (ONS) said.

The ... more »

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Dollar falls ahead of key US data

by Jet-to-Let Magazine on Tue 15 Jan 2008 16:30 GMT

The dollar has edged towards seven-week lows against both the yen and the euro on fears of poor US retail sales data and banking results later on Tuesday. With any weak figures set to increase expectations of a further cut in US interest rates, the dollar had fallen to 107.75 ... more »

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Friday, January 11

Northern Rock starts to repay taxpayer

by Jet-to-Let Magazine on Fri 11 Jan 2008 16:21 GMT

Northern Rock is to repay £2.2bn of its £26bn Bank of England loan after selling a portfolio of mortgages to US investment bank JP Morgan.

The ailing lender has agreed to sell its "Lifetime Portfolio" of equity release mortgages, which account for just 2pc of its total assets, for ... more »

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‘Zero US effort’ on housing slammed

by Jet-to-Let Magazine on Fri 11 Jan 2008 15:17 GMT

Angelo Mozilo, chief executive of Countrywide Financial, on Monday strongly criticised the US government’s response to the collapse of the subprime lending market, saying there had been “zero” effort to tackle the crisis.

“In terms of tangible effort from the federal government...there has been no programme, no federal ... more »

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Thursday, January 10

Eurozone rates kept at 4% by ECB

by Jet-to-Let Magazine on Thu 10 Jan 2008 15:39 GMT

The European Central Bank (ECB) has left interest rates unchanged at 4%.

High oil prices and an increase in the cost of food have buoyed inflation in the eurozone at a time when economic growth is seen slowing.

The ECB has said inflation remains a problem, noting that December's ... more »

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Bank keeps interest rates on hold

by Jet-to-Let Magazine on Thu 10 Jan 2008 12:14 GMT

Bank of England policymakers have decided to keep UK interest rates unchanged at 5.5%. The Bank faced a tough decision, having to balance signs of a slowdown in consumer spending against indications of growing inflationary pressures.

The decision is likely to disappoint some retailers, who had called for a ... more »

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UK slump 'is worst for 28 years'

by Jet-to-Let Magazine on Thu 10 Jan 2008 09:37 GMT

The UK economy shrank by 1.5% in the last three months of 2008, its worst performance in 28 years, a think tank has concluded.

The National Institute of Economic and Social Research (NIESR) also warned the economic downturn was worsening.

Its estimation comes two weeks ahead of the release of ... more »

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Wednesday, January 9

Fed ‘caught off guard’ by rate of US slowdown

by Jet-to-Let Magazine on Wed 09 Jan 2008 17:03 GMT

The scale of the housing slump across the United States and the speed at which the American economy has slowed has caught the US Federal Reserve off guard, minutes from the world’s biggest central bank suggested yesterday.

The minutes from the December 11 meeting of the Fed’s interest-rate-setting committee ... more »

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PM tells banks to pass on rate cuts

by Jet-to-Let Magazine on Wed 09 Jan 2008 17:00 GMT

Gordon Brown and Alistair Darling last night warned mortgage lenders they should pass on interest rate cuts to homeowners.

The Prime Minister said the banks had a duty to pass on the cuts after it emerged almost one in five had not done so.

Their inaction leaves hundreds of ... more »

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Tuesday, January 8

UK mortgage market continues to respond to global credit conditions

by Jet-to-Let Magazine on Tue 08 Jan 2008 13:37 GMT

Data released today showed that affordability in the mortgage market continued to show some resilience to tightening credit market conditions in November. Income multiples again declined modestly, reinforcing the trend that began in early autumn. First-time buyers typically borrowed 3.33 times their income, a figure that has fallen each month ... more »

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House prices rise as 2007 ends

by Jet-to-Let Magazine on Tue 08 Jan 2008 12:16 GMT

House prices rose by 1.3% in December, following three months of falls, the UK's biggest lender said today.

Halifax said the mixed pattern of rises and falls of the past few months was consistent with a subdued market and predicted that prices would remain flat in 2008.

... more »

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Monday, January 7

UK faces dangerous year, says Brown

by Jet-to-Let Magazine on Mon 07 Jan 2008 17:02 GMT

Gordon Brown on Sunday warned Britain’s economy faces a “dangerous” year ahead as he battled against rising energy prices and higher pay awards that he fears could undermine his pledge to “break the back of inflation”.

Although he insisted Britain’s economy was strong, the prime minister saw ... more »

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Action urged over US economy woes

by Jet-to-Let Magazine on Mon 07 Jan 2008 16:59 GMT

Top economists have warned that a US recession looks increasingly likely and have urged government action.

Former US Treasury Secretary Lawrence Summers, called for a $75bn (£38bn) package to help stimulate the economy.

And National Bureau of Economic Research president, Martin Feldstein said that the chances of a ... more »

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Tuesday, December 18

UK inflation holds steady at 2.1%

by Jet-to-Let Magazine on Tue 18 Dec 2007 12:32 GMT

inflation held steady at 2.1 per cent in November despite fears it would be fuelled by rising food and fuel prices, giving the Bank of England more leeway to cut interest rates if the economy slows rapidly at the start of next year.

The Office for National Statistics ... more »

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Confidence in US housing market spirals lower

by Jet-to-Let Magazine on Tue 18 Dec 2007 12:30 GMT

Permits for new home builds in the US tumbled to a 14-year low last month, official data showed today, as confidence in the weakening US housing market spiralled lower.

The number of home building projects that were started in November also took a big hit, in yet another sign ... more »

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ECB pumps in extra €170bn

by Jet-to-Let Magazine on Tue 18 Dec 2007 12:27 GMT

Emergency help for financial markets has entered new territory with the European Central Bank pumping-in almost €170bn extra liquidity at below market interest rates in a special operation to head off a year-end liquidity crisis.

The surprise move, which followed last week’s co-ordinated barrage of measures by the world’s ... more »

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Monday, December 17

CBI cuts economy growth forecast to 2pc

by Jet-to-Let Magazine on Mon 17 Dec 2007 14:26 GMT

The CBI employers' organisation has cut its forecast for UK economic growth for the third consecutive quarter due to the turmoil in financial markets and soaring oil prices. In a report out today, the business group said it now expects GDP growth of just 2pc next year, down from its ... more »

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House prices drop by 3.2% 'on Hips effect'

by Jet-to-Let Magazine on Mon 17 Dec 2007 14:24 GMT

UK house prices fell by 3.2% in December, as seasonal factors and the full roll-out of home information packs (Hips) took their toll on an already slowing market, property website Rightmove claimed today.

The website's latest survey of asking prices showed a dramatic fall from an average of £239,986 ... more »

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Friday, December 14

Hips extended to all properties

by Jet-to-Let Magazine on Fri 14 Dec 2007 17:27 GMT

All one- and two-bedroom properties put up for sale in England and Wales now need a Home Information Pack (Hip).

The rule, which came into force at midnight, extends the new selling process, which was applied first to larger properties during the summer.

Hips are supposed to improve the sale ... more »

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Eurozone inflation hits 6-year high

by Jet-to-Let Magazine on Fri 14 Dec 2007 17:25 GMT

Eurozone inflation hit 3.1 per cent in November, the highest for more than six years, according to revised figures that will encourage the European Central Bank to keep talking tough on future interest rate moves.

Preliminary figures had shown an annual inflation rate of 3 per cent, up from 2.6 ... more »

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Chancellor's CGT delay attacked

by Jet-to-Let Magazine on Fri 14 Dec 2007 17:19 GMT

Alistair Darling faced a barrage of criticism after revealing that he would not clarify his capital gains tax plans until the new year.

Speaking in the Commons, the Chancellor said that the capital gains tax concessions being discussed with the business community were "quite complex" and he would not now ... more »

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Thursday, December 13

UK unemployment continues to fall

by Jet-to-Let Magazine on Thu 13 Dec 2007 17:35 GMT

The number of people seeking jobless benefits in the UK has fallen to a 32-year low, according to data from the Office for National Statistics.

The number claiming jobseeker's allowance fell by 11,100 in November to 813,000, the lowest since June 1975.

Total unemployment, including those not claiming benefit, fell ... more »

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Tax cut as Irish housing market cools

by Jet-to-Let Magazine on Thu 13 Dec 2007 17:33 GMT

Brian Cowen, the Irish finance minister, has moved to stimulate the country's housing market in his annual budget, cutting the tax paid on house sales in a bid to prevent a hard landing for the economy.

The move comes amid new evidence that house builders are slowing down their activities ... more »

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Tax cut as Irish housing market cools

by Jet-to-Let Magazine on Thu 13 Dec 2007 09:30 GMT

The move comes amid new evidence that house builders are slowing down their activities ... more »

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US rates reduced for third time

by Jet-to-Let Magazine on Thu 13 Dec 2007 09:23 GMT

The Federal Reserve has cut US interest rates from 4.5% to 4.25% to help steer the world's largest economy through a housing slump and credit woes.

It is the third rate cut in the US in as many months, leaving US rates 1% lower than their August peak.

A downward ... more »

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Friday, November 30

Hopes that Fed will cut rates lead to world stock market

by Jet-to-Let Magazine on Fri 30 Nov 2007 09:29 GMT

Shares leapt on both sides of the Atlantic yesterday after market hopes that the Federal Reserve will try to calm credit conditions with further interest rate cuts were boosted by soothing comments from the US central bank’s vice-chairman.

Stock markets surged in London, New York and across Europe after Donald ... more »

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UK property market 'turning down'

by Jet-to-Let Magazine on Fri 30 Nov 2007 09:16 GMT

UK house prices saw their biggest fall in 12 years during November, mortgage lender Nationwide has said. The firm's data suggests the cost of an average home slid by 0.8% from a month earlier - the first drop in price seen since February last year.

The annual rate of house ... more »

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Tuesday, November 27

Darling hints at capital gains tax U-turn

by Jet-to-Let Magazine on Tue 27 Nov 2007 11:46 GMT

Alistair Darling today signalled that he may backtrack on his unpopular changes to capital gains tax, as critics continued to attack his decision to announce the proposal without consulting the business community first.

Speaking at the CBI annual conference this lunchtime, the chancellor said he was "open to suggestions" ... more »

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Thursday, November 22

US housing woes continue as building demand falls to 14-year low

by Jet-to-Let Magazine on Thu 22 Nov 2007 17:05 GMT

The number of homes built in the United States is set to decline further as the volume of housebuilding permits fell to a 14-year low last month.

The demand for construction permits, which is directly linked to the outlook for the housing market, fell by 6.6 per cent in October ... more »

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Hips home packs get full roll-out

by Jet-to-Let Magazine on Thu 22 Nov 2007 17:02 GMT

Home information packs (Hips) will be required for all properties being sold in England and Wales from 14 December, the government has announced.

Since September, all properties with three or more bedrooms have required a Hip before they can be sold.

The packs have proved controversial, with many critics claiming ... more »

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Wednesday, November 21

6% growth in mortgage lending

by Jet-to-Let Magazine on Wed 21 Nov 2007 10:40 GMT

Gross mortgage lending grew to an estimated £32.4 billion in October, rising nearly 6% from £30.6 billion in September and £30.6 billion in October last year, according to the Council of Mortgage Lenders (CML).

While the increase is higher than the 3% seasonal rise that might typically be ... more »

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Dollar hit by fresh weakness

by Jet-to-Let Magazine on Wed 21 Nov 2007 10:39 GMT

The dollar fell to a twelve-year low against the Swiss franc and lost ground against the yen on Monday as fears over the health of the US economy continued to undermine the currency.

Analysts said weak US data on Friday had helped to cement expectations of further interest rate ... more »

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New legislation for greener, more affordable housing

by Jet-to-Let Magazine on Wed 21 Nov 2007 10:38 GMT

A new Bill which will drive forward the Government’s pledge to build 3 million greener, more affordable new homes by 2020 to help first-time buyers and families was published today by Housing Minister Yvette Cooper.

New measures in the Housing and Regeneration Bill include legislation to remove barriers to ... more »

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Friday, November 9

Bernanke gives fresh warning on US economy

by Jet-to-Let Magazine on Fri 09 Nov 2007 17:22 GMT

A warning by the Federal Reserve chairman, Ben Bernanke, that the US economy will remain sluggish until the middle of 2008, combined with one from the corporate bellwether Cisco Systems that it had been hit by "dramatic decreases" in orders, triggered a fresh bout of selling on Wall Street.

With ... more »

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1 In 4 Landlords Plans To Grow Property Portfolio Over Next Five Years

by Jet-to-Let Magazine on Fri 09 Nov 2007 17:16 GMT

Almost a quarter (23.4%) of landlords plan to expand their property portfolios over the next five years, according to research carried out by the National Landlords Association. Nearly 60% of landlords believe the size of their property portfolios will remain unchanged over the same period.

Fewer than 18% of ... more »

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Play the currency game to pay your mortgage

by Jet-to-Let Magazine on Fri 09 Nov 2007 15:53 GMT

If you had put a £1m mortgage into US dollars at the start of the year and left it without making a single payment, then thanks to the falling dollar that mortgage would have decreased in value by more than £70,000.

Such is the beauty of foreign currency mortgages, ... more »

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Thursday, November 8

Halifax record fall in house prices

by Jet-to-Let Magazine on Thu 08 Nov 2007 15:49 GMT

The latest monthly survey carried out by Halifax suggests evidence of a slowdown.

The results contradict the latest research from Nationwide, which illustrated prices picking up during October.

According to Halifax, house prices fell by 0.5% in October. Overall, house prices in the three months to October were 0.3% higher ... more »

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UK rates stay unchanged at 5.75%

by Jet-to-Let Magazine on Thu 08 Nov 2007 15:47 GMT

The Bank of England has kept UK interest rates unchanged at 5.75% for the fourth month in a row in a widely expected move.

The Bank's decision is likely to have been influenced by the surging oil price, now close to $100 a barrel, which increases the risk of inflation. ... more »

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House prices to 'cool not fall'

by Jet-to-Let Magazine on Thu 08 Nov 2007 11:27 GMT

A new economic forecast says there is a one-in-three chance of UK houses prices being lower in real terms in 2010 than they are now.

In its latest analysis of the housing market, PwC said its research suggested prices were 10% "overvalued" against indicators such as average earnings.

But it ... more »

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Monday, November 5

US spending slow despite rate cut

by Jet-to-Let Magazine on Mon 05 Nov 2007 17:37 GMT

Growth of spending by US consumers slowed more than expected in September, despite a half a percentage point interest rate cut during the month.

Spending grew by 0.3% in September after August's revised growth of 0.5%, according to the Commerce Department.

A separate report showed that US factory ... more »

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Wednesday, October 31

House prices show surprise rise

by Jet-to-Let Magazine on Wed 31 Oct 2007 12:26 GMT

UK house prices rose 1.1 per cent in October, the Nationwide's survey showed on Wednesday, but many saw the unexpectedly strong monthly gain as an aberration among signs of a marked slowdown in the housing market.

The month-on-month rise was the strongest since June, taking the annual rate of ... more »

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Sterling blasts through $2.07 against dollar

by Jet-to-Let Magazine on Wed 31 Oct 2007 12:23 GMT

Sterling surged to a fresh 26-year high above $2.07 against the dollar and advanced across the board on Wednesday after a survey showed UK house prices rose at their highest pace this year in October.

The pound rose 0.3 per cent to $2.0743 against the dollar, its strogest level ... more »

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Friday, October 26

Financial system still at risk, say Bank of England

by Jet-to-Let Magazine on Fri 26 Oct 2007 10:08 BST

The UK remains susceptible to further trouble in its financial markets as the recent global credit crunch continues to have effect, the Bank of England has warned.

In its twice-yearly Financial Stability Report, the central bank says that further shocks may be unavoidable as the UK looks to recover ... more »

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Wednesday, October 24

London named most attractive property market

by Jet-to-Let Magazine on Wed 24 Oct 2007 17:25 BST

London has been named as the city with the most attractive property investment market for the second year running in an index of European cities.

The UK capital has beaten Paris to top spot for the second consecutive year in the ninth annual European index by LaSalle Investment Management.... more »

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Consumers reduce borrowings due to credit crunch, says report

by Jet-to-Let Magazine on Wed 24 Oct 2007 17:22 BST

A report has claimed 2007 will see consumers take on less unsecured debt as the consequences of the summer’s credit crunch take their toll.

Datamonitor, the independent market analyst, predict the UK consumer credit market will dip as lenders continue to tighten borrowing conditions and reject a higher number ... more »

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Tuesday, October 23

UK economic growth to slow says forecast

by Jet-to-Let Magazine on Tue 23 Oct 2007 08:52 BST

An influential forecast group has predicted that UK economic growth will slow significantly in 2008 as a result of the recent credit crunch.

Ernst and Young’s ITEM Club has substantially revised its 2008 GDP forecast to 2.1% from 2.5% in July thanks to the marked tightening of monetary and ... more »

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Friday, October 19

Public display confidence in house price growth

by Jet-to-Let Magazine on Fri 19 Oct 2007 14:21 BST

Consumers have expressed confidence that the housing market will continue its price boom despite strong evidence to the contrary, research by the Association of Investment Companies (AIC) has revealed.

In the AIC’s survey, almost two-thirds (62%) of the general public (1,004 people) stated a belief that the housing market ... more »

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Thursday, October 18

CML announces sharp fall in mortgage lending

by Jet-to-Let Magazine on Thu 18 Oct 2007 11:47 BST

September saw a sharp decline in mortgage lending in the UK, according to new data from the Council of Mortgage Lenders (CML).

Gross mortgage lending fell by 12% in September compared to August, to a total of £30bn.

Although this figure is a 2.5% increase on the ... more »

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Tuesday, October 16

Tories to vote against CGT change

by Jet-to-Let Magazine on Tue 16 Oct 2007 14:53 BST

Conservative MPs will vote against part of the upcoming finance bill if it includes controversial changes to the capital gains tax (CGT), detailed in last week's pre-budget report, the shadow chancellor George Osborne said yesterday.

As a growing number of lobby groups and business people voiced their dismay at the ... more »

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Bernanke sees better near-term outlook

by Jet-to-Let Magazine on Tue 16 Oct 2007 10:47 BST

The improvement in the functioning of credit markets since the Federal Reserve cut interest rates has reduced the risk to the near-term economic outlook, Ben Bernanke yesterday said in a speech that suggests the decision on whether to cut rates again this month will be a tough one.

Mr ... more »

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