|
5 years on from the Northern Rock crisis.
|
|
17-10-2012, 04:14 PM
 Post: #1 |
|||
|
|||
|
5 years on from the Northern Rock crisis.
Last month saw the 5th year anniversary of the Northern Rock Crisis.
How much has the property landscape changed in the 5 years since? Thank you to our friends of RightMove for providing us with this rather snazzy infographic. ![[Image: Intel_infograph-V6.jpg]](http://www.rightmove.co.uk/news/files/2012/10/Intel_infograph-V6.jpg) Related reading: Are we heading for another banking crisis? Follow 
|
|||
|
|
17-10-2012, 08:34 PM
Post: #2 |
|||
|
|||
|
RE: 5 years on from the Northern Rock crisis.
The infographic ( I learn a new word every day on here) has left out a vital statistic to balance up how it presents its gloomy stats.
Cash flow Asking prices have remained static yes but in the last 5 years ..... Rents have risen interest rates have tumbled so yields have improved so the cash flow figure will have a big + sign next to it. Jonathan Clarke. http://www.buytoletmk.com
|
|||
|
|
|
18-10-2012, 10:07 AM
Post: #3 |
|||
|
|||
|
RE: 5 years on from the Northern Rock crisis.
Yes, CASHFLOW has improved since the NR crisis.
But how else has the property landscape changed? The death of NMD? Lower LTV's? Stricter lending criteria? Low interest rates. Death of self-cert mortgages. Death of "gifted deposits". Increasing rents. Any more? Follow
|
|||
|
|
|
18-10-2012, 11:19 AM
Post: #4 |
|||
|
|||
|
RE: 5 years on from the Northern Rock crisis.
I think the landscape in peoples minds has changed.
All was ticking along nicely then a sense of vulnerability was felt by all. I, like many others tried to brush it off ( initially ) as just another recession but yes the landscape in my mind was altered by this one more so than from previous recessions. The world tripped up on this one. No one had the answer. That was scary. So the result is I think investors and financial institutions have all educated themselves far far better since NR so the whole property investment landscape is now leaner smarter better educated ( hopefully) than before but currently and subsequently quite rightly much more risk adverse. Some are biding their time patiently to ensure the bottom is the bottom Schemes are and will be invented to circumvent the system as the free market valiantly battles to remain free. The banks have got scared for obvious reasons and have spent the last 5 years mending their balance sheets They are watching and waiting and will explode into action when conditions are more favourable and the cycle will eventually repeat itself . The roller coaster has been in for mechanical repairs. It will pass its MOT and will be deemed fit to continue its journey. Book your seats now! Jonathan Clarke. http://www.buytoletmk.com
|
|||
|
|
|
18-10-2012, 11:37 AM
Post: #5 |
|||
|
|||
RE: 5 years on from the Northern Rock crisis.
(18-10-2012 11:19 AM)Jonathan Clarke Wrote: I think the landscape in peoples minds has changed. one of the reasons i think the banks aren't lending as much isn't just because of their opinion of the market but because of regulatory requirements for them to shore up their balance sheets - legally they can no longer lend as much - even if they wanted to. another big change is the influx of money from abroad - people currently looking for what they perceive as a safe haven. I think peoples attitude to renting is changing - which is good - its seen as more acceptable/flexible.
|
|||
|
|
|
18-10-2012, 11:43 AM
Post: #6 |
|||
|
|||
|
RE: 5 years on from the Northern Rock crisis.
Interestingly all the points below seems like a return to sanity i.e. LTVs SHOULD remain lower even when the market picks up, NMD and Self Cert SHOULD stay dead as were crazy ideas in the first place.
As Jonathan says above, the cycle will repeat itself in terms of lending and prices rising, my question is - do you guys think all the crazy schemes will return? (18-10-2012 10:07 AM)vanessa warwick Wrote: But how else has the property landscape changed?
|
|||
|
|
|
18-10-2012, 11:53 AM
Post: #7 |
|||
|
|||
|
RE: 5 years on from the Northern Rock crisis.
[/quote] Stuart
one of the reasons i think the banks aren't lending as much isn't just because of their opinion of the market but because of regulatory requirements for them to shore up their balance sheets - legally they can no longer lend as much - even if they wanted to. .[/quote] Thats absolutely right. I hear circumstantial evidence though that they perhaps use that reason too often in order to restrict lending in circumstances whereby otherwise they would normally have lent. On one hand you could argue that`s responsible lending but a sceptic may say that QE is being stockpiled for their own selfish purposes and not released ( yet) for the intention it was originally made available for. I`m not close enough to the people in the know or nearly educated enough myself in this area to know if there is any truth in that and I would be interested to hear views on whether there is any validity in these rumours I have heard Jonathan Clarke. http://www.buytoletmk.com
|
|||
|
|
|
18-10-2012, 10:01 PM
Post: #8 |
|||
|
|||
|
RE: 5 years on from the Northern Rock crisis.
The rumors are mostly bogus and used by politicians.
Banks are focusing on cleaning up their balance sheets and the work has not finished even if we are 5 years in. Regulators and credit rating agencies are also more likely to error towards caution. Borrower have to accept this is the new normal. John Corey Follow me on Twitter-> www.twitter.com/john_corey My blog -> www.ChelseaPrivateEquity.com/blog RE investing discussions happening monthly in London, 2nd Tuesday of the month -> meetup.com/real-estate-advice Share your mistakes, learn from the mistakes of others and generally turn lemons into lemonade: PropertyMistakes.com Follow
|
|||
|
|
|
« Next Oldest | Next Newest »
|
User(s) browsing this thread: 1 Guest(s)