Friday, 21 November 2014



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  • Comment on: London could become 'preserve of the super-rich'

    Realist,Surrey's comment | 19/11/2014 3:42 pm

    In the early post war decades - before the de-industrialisation of the north - there was greater parity in property prices in north v south - which would have facilitated home owners moving nearer the south.

    Today it's pretty much a one way valve - as few from the north could consider relocating to the south as they would be paying a premium of 100% or even 300% plus - on like for like property.

  • Comment on: Government failed to reduce housing benefit bill 

    Realist,Surrey's comment | 19/11/2014 3:28 pm

    Today USD = 1.5656 TO £1

    AUD = 1.79 to £1

  • Comment on: Government failed to reduce housing benefit bill 

    Realist,Surrey's comment | 19/11/2014 2:03 pm

    In the current UK economy - we are pretending that certain businesses are viable - when in reality they would maybe fold if Tax Credits/HB subsidy to low wages were removed - with a far higher min wage structure in place.

    The Retail/Hospitality sectors would be especially challenged if min wage was say doubled.

    The likely outcome can be seen in Australia - where Ford are to cease manufacture in 2016 - as their costs are 4 times that in Asia and twice that in Europe. Holden their main competitor may well follow that lead.

    Closer to home we can already see that cheap Chinese pants today means no job tomorrow.

  • Comment on: Government failed to reduce housing benefit bill 

    Realist,Surrey's comment | 18/11/2014 3:01 pm

    With the vast bulk of that increase due to Housing Association rent increases.

  • Comment on: Soaring rents 'will force millions into poverty'

    Realist,Surrey's comment | 18/11/2014 2:35 pm

    We have yet to see what impact if any devolves from greater flexibility of pensioners taking out more cash.

    Whilst that can be as young as age 55 - unless one has actually retired in previous tax year - anything over the existing 25% tax free cash will likely be taxed at min 20% and quite possibly 40% for those with larger pension pots - who are in the minority - noting that average pension pot is circa £45,000.

    Real wages are falling - and the experience over past 20 years shows that private rents are constrained by wage growth.

    In London gross rental yields can be as low as 3.5% for a new BTL property.

    Away from the SE - the traditional aim of BTL - ie capital growth will be a dubious driver- especially when set against high entry/exit costs allied to CGT.

    As we all know LHA was capped and frozen at 30th percentile in April 2012 - except for the general 1% pa welfare increases for 2013/14/15 - with a welfare freeze mooted thereafter.

    Universal Credit is already causing major concerns for social landlords who derive nearly 80% of their rent from HB - as UC plans to pay all welfare direct to claimant - hence many private landlords preference to avoid welfare tenants.

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