Rightmove October +2.8%, London records biggest ever indice rise at 6.5%

Generali

chucky wrote: »

or that the doom mongering was over done and that there is/has been excess cash (London) and scope in the economy (London) to reflect this.

talk of 150,000 being made unemployed in the City did not materialise and it was a fraction of this in the end.

from where i am it seems that it was most definately over done. it's been tough for many people but too many people factored in the worst case scenario which it hasn't been no where near.

Very fair point.

I've been at the more pessimistic end of the spectrum (not at the nutter end of that I hope!) and remain there as I don't see a simple way to get from a base rate of 0.5% to something more normal, ending QE and massive deficits painlessly.

The alternative is that Central Bankers have very cleverly worked out a monetary solution to a liquidity crisis. I can see how it would work although I can also see how it would store up problems for the future (moral hazard).

chucknorris

Generali wrote: »

I've been at the more pessimistic end of the spectrum .

It's very easy to get carried away when the bears start going on and on. I was guilty of taking my cash out of Kaupthing Edge, it was in 3 year fixed rate bonds earning 7.15% if I had left it I would now be getting that at ING. But I got carried away and withdrew it, it's not earning anywhere near that rate now.

purch

Not really, I think the eventual outcome will be dilluted

This what what I was referring to:

I don't think it is good news that sentiment is changing so rapidly, and phrases such as "Window of Opportunity" are being bandied about.

setmefree2

Generali wrote: »

From the release:



Amazing. Can this be sustained? I still have my doubts but you never know.

On Bloomberg they said it was due to the low pound making property in London really tempting to foreign buyers. I suppose it's sort off "Inward Investemt". New money coming into the UK from abroad and it then ripples out through the rest of the country (as folk move further out to get more space)?

Demand from foreign buyers is also helping drive up prices in central London due to the weakness of the pound, Green said. The U.K. currency has dropped about 17 percent against the euro in the past year.
“The pound is bringing many foreign buyers into the capital,” Alex Solomon, an economist at Rightmove, said in an interview on Bloomberg Television today.

In London, the district of Hammersmith & Fulham led gains with a 12.6 percent jump in asking prices on the month, followed by a 12.1 percent increase in Kensington & Chelsea. The only decline was in Westminster, where prices dropped 1 percent.

LINKY

baby_boomer

Bankers have been inundating Savilles with business since June as they lick their lips in advance of bumper Christmas bonuses.

Hence the rises in the posh bits of West London.

And I thought that banks were supposed to use their profits to rebuild their balance sheets in order to avoid Meltdown Mark2 :rolleyes:

I wonder if the Westminster decline has anything to do with 100s of MPs rearranging their affairs in advance of their relocation in May/June 2010 .

chucky

baby_boomer wrote: »

And I thought that banks were supposed to use their profits to rebuild their balance sheets in order to avoid Meltdown Mark2 :rolleyes:

here's something for the more negative posters to add to their urban myth collection which actually has some truth in it...

has the QE money gone to strengthen balance sheets or has it gone straight to the trading desks?

StiflersMom

chucky wrote: »

here's something for the more negative posters to add to their urban myth collection which actually has some truth in it...

has the QE money gone to strengthen balance sheets or has it gone straight to the trading desks?

It’s a bit of both, I’d say. As some degree of BAU returns to the City, and balance sheets are recovering well, we are starting to see low deposit mortgage offers from the likes of HSBC, Nationwide, and others coming into the market. This should help bolster pricing and activity over the medium term

Generali

StiflersMom wrote: »

As some degree of BAU returns to the City

What's BAU please?

chucky

Generali wrote: »

What's BAU please?

business as usual

kabayiri

I can see how all this QE and confidence returning in the banks has swelled the coffers of those in the SE/London. Wealthy banking peeps going after desirable properties seems a natural consequence.

But, really, how does this filter out into the other regions of the UK? Does someone say "oh I cant get good value 2nd property in London anymore, I think I'll pick up a couple of flats in Leeds/Bradford"?

These people buying in housing areas they dont personally know have had their fingers burned all too recently.

Do we really have a two speed economy in the UK and is it actually good for the long term wealth prospects?

[If I were a Londoner, I'd vote to flog off everything north of watford, and keep Cornwall/Devon for weekend holiday trips!]