Another major city is experiencing a pullback in demand for its property – once again as a direct result of Government action to dampen the impact of foreign investment. In London, as Bloomberg reports, demand has slumped so badly that developers are offering discounts of up to 20% for their newly constructed homes. And just as the case was in Manhattan, it’s a result of the UK putting in a speed bump. The UK recently increased taxes on those deemed to be purchasing a second home, specifically designed to slow the pace of overseas investment.
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A SOMALI national living in London has told his MP he “massively regrets” bringing his children over from war-torn Somalia, saying the streets of the capital are “too dangerous.”
One of the most spectacular bubbles inflated as a direct result of the oligarch giveaway colloquially known as “central bank policy” in the years since the global economic meltdown, has been the London real estate market. There are many reasons for this, but the primary one is the fact that London was seen as one of the best places for shady billionaires to park illicit funds, i.e., money laundering.
With a cratering in emerging market economies, as well as tax changes in the UK, much of that trade is now over. As such, some players are now scrambling to get out before the bottom drops.
If the following article is even remotely accurate, London real estate investors need to pay close attention.
From the Evening Standard:
As many as 60,000 homes bought off-plan in new developments in areas such as Nine Elms are scheduled for completion by the end of 2017 and many will be put up for sale immediately because of the growing disillusion with London, it says. Continue reading »
H/t reader squodgy:
“I know this is true in Boris Johnson’s pro capitalist two society London.
The City is still a shithole, more than 50% are immigrants, mainly tax dodgers or gangsters of some degree. But anyone fighting for Social fairness or Justice is just not wanted.”
United Kingdom — A law-abiding, political protester has been threatened with deportation from the U.K. after he was arrested during a peaceful demonstration. Hungarian-born Daniel Gardonyi has lived in the U.K. for several years and tirelessly dedicated his time to protesting against the social cleansing and gentrification taking place across London.
Gardonyi’s peaceful resistance against entire communities being forced out of the capital due to affordable social housing being replaced with expensive private homes, has seen him participate in numerous high-profile protests. Continue reading »
H/t reader squodgy:
“It’s all been true, there is a recovery, the horizon is blue & all is well.”
Insolvency Index: capital and Wales enjoy largest decreases as key sectors show recovery
London and Wales showed large falls in company failures as insolvencies across the UK dropped year on year for the third quarter in a row.
The Exaro Insolvency Index reveals that London enjoyed the largest fall, as the number of companies that filed one or more insolvency notices dropped in the three months to September by 22.2 per cent compared to the same period in 2014, decreasing from 1,742 to 1,355. Continue reading »
Two months ago I published a piece titled, Luxury London Home Sales Plunge 26% – Has this Mega Real Estate Bubble Finally Burst?. I wrote:
It appears the music may have finally stopped for one of the world’s largest luxury real estate bubbles: London.
It’s well known that foreign oligarchs love London real estate as a means to launder funds, typically “earned” by soaking their host countries dry via corruption and fraud. This has caused absurd and irrational spikes in high-end residential real estate in the English capital, as well as a flood of new construction.
With emerging markets now completely collapsing, the seemingly endless flood of foreign money is drying up, and with it, London real estate.
So has the London real estate bubble popped? Probably.
For the London media 7/7 is ‘done and dusted’, but for guest author, Tony Gosling, who helped cover the IRA London bombing campaign for the BBC, nothing could be further from the truth.
31-minute video:Ten years after 7/7: 13 holes in government & media account of 2005 London Bombings:
Monday 6th July 2015 BRISTOL – At lunchtime of 7th July 2005 the Guardian’s Mark Honigsbaum was in the London Hilton Hotel opposite Edgware Road underground station uploading an audio report to the Guardian website. Mark had been talking to dazed and injured passengers as they emerged from the smoke and chaos below and listening back to the Guardian’s first report of the day is unsettling. Continue reading »
– ‘Daylight robbery!’ Uber screws Londoners with 300% Tube-strike price hike (VIDEO) (RT, July 9, 2015):
Taxi firm Uber has been accused of ‘robbery’ after the company tripled its prices to cash in on the traffic chaos caused by the biggest London Underground strike in 13 years.
Uber users tweeted their anger at the online taxi company, expressing outrage as taxi fares rose by up to 300 percent at a time when thousands of Londoners were struggling to get to work.
“Demand is off the charts! Fares have increased to get more Ubers on the road,” the app stated.
– House prices plummeting in London’s most expensive boroughs, but going up in the suburbs (Independent, June 12, 2015)
– ‘If I’m London mayor, Max Keiser will be economic advisor’ – George Galloway (RT, June 5, 2015):
London mayoral candidate George Galloway says he would appoint radical financial commentator and RT presenter Max Keiser to be his economic advisor if he is elected to City Hall in next year’s election.
Galloway revealed the planned appointment on Twitter, adding that “Mr Banker” should take note.
Galloway, the former Respect party MP for Bradford West, will take part in the May 5, 2016, mayoral election where incumbent Boris Johnson will not be standing, as he was elected an MP for Uxbridge and South Ruislip in the UK general election. Two-time Mayor Johnson is widely expected to receive a portfolio in the Conservative Cabinet after he steps down as mayor.
Keiser, an American citizen who lives in London, said he and Galloway had been discussing the possibility for “several years,” claiming he could bring “unparalleled experience and expertise to this job.” Continue reading »
– London Housing Bubble Watch: $630/Month For A Bed “In” A Shared Kitchen! (ZeroHedge, May 13, 2015):
You know it’s a bubble when… A listing has appeared online advertising a single bed in a house in London where the mattress is located in the kitchen.…
– Over 50,000 families shipped out of London in the past three years due to welfare cuts and soaring rents (Independent, April 29, 2015):
Exclusive: Councils are currently moving homeless mothers and children out of their boroughs at a rate of close to 500 families a week
http://www.youtube.com/watch?v=J44Nv1… On the 7th of July 2005 London was hit by a series of explosions. You probably think you know what happened that day. But you don’t. The police have, from the onset of their investigation, chosen to withhold from the public almost every bit of evidence they claim to have and have provably lied about several aspects of the London Bombings. The mainstream news has willfully spread false, unsubstantiated and unverifiable information, while choosing to completely ignore the numerous inconsistencies and discrepancies in the official story. The government has finally, after a year, presented us with their official ‘narrative’ concerning the event.
Within hours it was shown to contain numerous errors, a fact since admitted by the Home Secretary John Reid. They have continuously rejected calls for a full, independent public inquiry. Tony Blair himself described such an inquiry as a ‘ludicrous diversion’. What don’t they want us to find out? Continue reading »
– Mr. Varoufakis Arrives In London (ZeroHedge, Feb 2, 2015):
The new Greek PM has a thing against ties; The new Greek finmin, on the other hand, has a thing for boots and barbour jackets as seen in this series of photos of him arriving from Paris (where he secured French support for the Greek debt “renegotiation“) for a meeting with UK chancellor George Osborne.
Spot the suit:
– London Mayor’s Stunning Proposal: “Terrorist Until Proven Innocent” (ZeroHedge, Aug 25, 2014):
With all of England on edge because the ISIS executioner of James Foley, known as “Jihadi John” sported a British accent, and who may or may not have been identified as Abdel-Majed Bary, although UK government sources have not yet officially revealed his identity, one person has decided it is time to not waste yet another crisis. The person: London mayor Boris Johnson who as the Guardian reports, has called for the presumption of innocence to be reversed in cases where Britons travel to Iraq or Syria and said he wants the jihadist who beheaded an American journalist to be killed in a bomb attack. If Johnson’s proposal for a “swift and minor” law change passes, any Brit traveling to Iraq or Syria will automatically be branded a terrorist and suffer the appropriate consequences.
More on this stunning attempt to overhaul the most basic right of law: Continue reading »
I thought this deserves to be reposted.
(This should be shown to all those sheeple that still believe that there could not possibly be a conspiracy by a power elite.)
Secrets In Plain Sight is an awe inspiring exploration of great art, architecture, and urban design which skillfully unveils an unlikely intersection of geometry, politics, numerical philosophy, religious mysticism, new physics, music, astronomy, and world history.
Exploring key monuments and their positions in Egypt, Stonehenge, Jerusalem, Rome, Paris, London, Edinburgh, Washington DC, New York, and San Francisco brings to light a secret obsession shared by pharaohs, philosophers and kings; templars and freemasons; great artists and architects; popes and presidents, spanning the whole of recorded history up to the present time.
As the series of videos reveals how profound ancient knowledge inherited from Egypt has been encoded in units of measurement, in famous works of art, in the design of major buildings, in the layout of city streets and public spaces, and in the precise placement of obelisks and other important monuments upon the Earth, the viewer is led to perceive an elegant harmonic system linking the human body with the architectural, urban, planetary, solar, and galactic scales.
Tags: Art, Astronomy, Catholic Church, Documentary, Egypt, France, Freemasonry, Geometry, Global News, Government, History, Knights Templar, London, Music, New World Order, New York City, Paris, Politics, Pyramids, Religion, Rome, San Francisco, Science, Society, Stonehenge, Technology, U.K., U.S., Vatican, Washington
– London’s Whopping 18.7% Home Price Surge Means UK’s Housing Bubble Slams China’s (ZeroHedge, June 17, 2014):
A month ago, using the latest UK housing data from Rightmove, we asked a simple question: whose housing bubble is bigger: China’s, or the place where increasingly more of China’s $25 trillion in bank assets are being parked: the UK (specifically London). Using then available data, the answer was still a toss-up, even if the divergence in directions was quite clear.
Earlier today, we finally got the official data from the UK’s Office for National Statistics, and we politely retract our question, as rhetorical as it may have been. The reason: there is no contest – the UK’s housing bubble has officially slammed China’s, and the result is nothing short of a knock out.
– Arrogant & reckless’: London mayor buys England’s first water cannons(RT, June 11, 2014):
London Mayor Boris Johnson has announced the purchase of first water cannons for the Metropolitan Police. The move triggered uproar in the UK as deployment of the cannons has not been authorized and reportedly 98 percent of Britons are against their use.
Johnson’s decision to give the go-ahead for the purchase of three secondhand water cannons has prompted accusations of arrogance and recklessness as their use has not yet been sanctioned on the UK mainland. Metropolitan Police have submitted an application to the Home Office asking for authorization. Continue reading »
– London’s Dirty Secret: Pollution Worse Than Beijing’s (Bloomberg, May 27, 2014):
London has a dirty secret.
Levels of the harmful air pollutant nitrogen dioxide at a city-center monitoring station are the highest in Europe. Concentrations are greater even than in Beijing, where expatriates have dubbed the city’s smog the “airpocalypse.”
It’s the law of unintended consequences at work. European Union efforts to fight climate change favored diesel fuel over gasoline because it emits less carbon dioxide, or CO2. However, diesel’s contaminants have swamped benefits from measures that include a toll drivers pay to enter central London, a thriving bike-hire program and growing public-transport network. Continue reading »
– Boris Johnson: Children at risk of radicalisation should be in care (BBC News, March 3, 2014):
Muslim children who risk radicalisation by their parents should be taken into care, Boris Johnson has said.
Writing in his weekly Daily Telegraph column, the London mayor said such children were victims of child abuse.
Mr Johnson said they should be removed from their families to stop them being turned into “potential killers or suicide bombers”.
– Foreigners Bought Half Of All London Homes Selling For Over £1 Million (ZeroHedge, Feb 16, 2014):
Actually, according to the first detailed estimate of international purchase activity in London by Knight Frank, the percentage of all central London homes that sold for more than 1 million pounds to foreigners in the 12 months through June 2013, was 49% to be exact. And as we showed yesterday when we put China’s loan creation in the context of US and Japanese QE, keeping in mind the use of proceeds of all this newly created inside money has to ultimately go somewhere – that somewhere in this case being London and other global luxury real estate, said percentage is only going to get higher. Especially when one adds Russian, the middle east and other various regions whose oligarchs are desperate to park their money in “safe” havens.
Some other findings from the Knight Frank report: Continue reading »
More photos here:
In other news:
– River Thames Bursts Banks, Flooding Homes Near London (Wall Street Journal)
– Britain’s flood crisis deepens, Thames bursts banks (Sydney Morning Herald)
– UK Towns Face More Floods as Costs Seen at $1.6 Billion (Businessweek)
– British Politicians Blame One Another for Regional Flooding (New York Times)
In my opinion a high-end London property is an excellent investment if you want to lose all your money.
London is one of the last places you want to be when the SHTF and the entire financial system collapses.
– Next wave of super-rich heading for London as new crises bite (Reuters, Feb 7, 2014):
Political and financial upheaval in some of the world’s largest emerging economies is driving a new wave of rich migrants to London’s supercharged property market as a place to park their wealth, data from a leading real estate agency showed on Friday.
Knight Frank, a specialist in upmarket properties, said it had seen online enquiries about British homes from crisis-hit countries such as Argentina, Ukraine and Turkey soar over the past year.
“There is potentially a further wave of investment headed for the prime central London property market,” Tom Bill, associate in the Knight Frank residential research team, told Reuters.
- Gabriel Magee, a 39-year-old JP Morgan bank executive, died this morning after he threw himself off the top of the bank’s European headquarters
- On Sunday, former Deutsche Bank senior manager, William ‘Bill’ Broeksmit, 58, was found hanging in his home in South Kensington
- Both deaths have been ruled non-suspicious by the Metropolitan Police
- Magee had lived in London for seven years after transferring from the Unites States with JP Morgan
- Broeksmit had been in London many years but still owned an apartment in an exclusive Central Park building in New York
- Both were thought highly of by their bosses and colleagues, sources said
Two top ranking American bankers working in senior positions in London have committed suicide in the space of two days.
Gabriel Magee, a 39-year-old JP Morgan bank executive, died early this morning after he jumped 500ft from the top of the bank’s European headquarters. His body was discovered on the ninth floor roof, which surrounds the 33-story Canary Wharf skyscraper.
Just two days earlier, on Sunday, fellow American banker, William ‘Bill’ Broeksmit, 58, was found hanging in his South Kensington home.
Broeksmit – who retired last February – was a former senior manager at Deutsche Bank and had lived in London many years. He started working for the bank in 1996 but left for a period of 7 years before returning in 2008.