Monday, August 19

Ferris Beuller & Prop Values

Age 14 (note Sperry canvas Top Siders)

London in a self-inflicted property bubble as house prices for the three months ending July improved 2.1% with prime London postcodes >10% (Knight Frank). I recognise a frenzy when the café guy informs me that his weekend spent cleaning house to sell his Putney flat for £300 grande profit. I mean, Putney ?

Thanks to the UK's 'Help To Buy' scheme introduced in 2012 and aimed at first-rung home ownership, a 5% deposit secures an additional 20% equity loan to be used towards the bank mortgage (ie, 25% down). The loan is interest free for the first five years.

Given British property values, unlike the US, did not collapse post the 2000-07 housing bubble, Britain remains over-priced by most measures like mortgage-to-income or mortgage-to-rent. Our elected leaders learn nothing.