Boris gets serious!

Porsche challenges "Gangsta Ken" on C-Charge

Hopefully this is just the beginning, let's hope more car makers step up to the plate ...

London Politics gets interesting

More big political news today as in London as "Gangsta Ken" suspends his "race adviser" "Gangsta Lee" Jasper.
Another gangsta move made by the mayor this week was the introduction of a £25 Congestion Tax on vehicles he apparently doesn't like, namely 4x4 SUV's (he aptly names them Chelsea Tractors) and high performance sport cars (a cock-blocking move if there ever was one - Gangsta Ken apparently can't drive so he doesn't own one).
These two types of vehicles represent at least 50% of all cars in central London on any given day. But according to the mayor:

"Nobody needs to damage the environment by driving a gas guzzling Chelsea Tractor in central London. The CO2 emissions from the most high powered 4x4s and sports cars can be up to four times as great of those of the least polluting cars. The CO2 charge will encourage people to switch to cleaner vehicles or public transport and ensure that those who choose to carry on driving the most polluting vehicles help pay for the environmental damage they cause. This is the "polluter pays" principle. At the same time, the 100 per cent discount we are introducing for the lowest CO2 emitting vehicles will give drivers in London an incentive to use the least polluting cars available."

Sounds good in theory, but in practice does it work? Brian Paddick, the Lib-Dem mayoral candidate rightly suggests in his response to Gangsta Ken's proposal that the congestion charge should

"do what it says on the tin: tackle congestion in central London. What Ken Livingstone is proposing is an emissions charge and it will do nothing to tackle congestion. Those who can afford Chelsea tractors, can afford a £25 ride into London. Allowing small vehicles to enter the zone will only add to congestion and bring London to a halt."

... which - based on the history - makes a lot of sense to me.

This site is amazing!

Came across London Profiler via Nestoria this afternoon and I have to say that I think this site is absolutely amazing, and quite useful too.
In essence London Profiler works by permitting users to visualise a neighbourhood profile using different classifications through a Google Map interface. The classifications are mainly demographic and include a Multicultural Atlas of the city, E-Literacy, Education, Census Classification, plus a Deprivation and Health Index.
Most relevant to Renthusiast readers is the integration of Nestoria London search results for properties to buy or sell. The way the Nestoria results are displayed on London Profiler probably represents the way property search engines (and portals) will display search results in the not too distant future (at least I hope so!). Congratulations to the UCL Department of Geography for developing London Profiler.

London mortgage fraud (update 1)

After a telephone conversation with Detective Superintendent Oliver Shaw of City of London police, we can further reveal some of the issues surrounding the current London mortgage fraud investigation.
Firstly, Detective Shaw highlighted that the investigation is not just limited to London, but part of a UK wide program, being run by the Serious Fraud Office. He explained that the police led review will ascertain the fraud geographic hotspots and will also investigate agents, valuers and mortgage brokers. The police are also working closely with the FSA and other government bodies, which hold data on dubious finance brokers and companies which have been prosecuted or struck off their registrar.
So far, the investigation has revealed no complicity from lending institutions. In the past, some bank employees have been known to either sell institutional data to criminals, or to overlook due diligence procedures, presumably for an 'under the table' reward. So far the investigation has highlighted no such activity, focusing mainly on exaggerated mortgage valuations and fraudulent ID documents.
The investigation is likely to conclude 'around Christmas' after which further action will take place. The police are intent on minimizing the problems and putting mechanisms in place to prevent future exploitations. They are also looking to identify the most successful criminal gangs and prosecute them.
Detective Shaw acknowledged that the police are 'well aware' of the economic dangers of potentially flooding an already cooling market with property that were obtained fraudulently. In the early 90's property recession, a similar problem occurred and the property crash forced banks to review their loan books after defaults and repossessions.
When the banks remarketed repossessed properties they achieved prices way under valuations which were originally suggested when the loan was processed. In today's cooling market, the same problem is likely to occur and the banks are currently doing everything they can and looking at every angle in order to mitigate their losses.

London mortgage fraud investigation

City of London Police have launched an investigation into allegations of commercial and residential mortgage fraud in London. Reports have led police to believe that criminal gangs, working with corrupt valuers and solicitors, are obtaining fraudulent mortgages, enabling them to build multi-million pound commercial and buy-to-let property portfolios worth millions of pounds. The investigation was launched after a rise in the number of complaints about the use of fake self-cert documents and fraudulent papers by individuals to inflate their earnings according to The Times:

Fake P60 forms, used to illustrate earnings, are widely available online. The Council of Mortgage Lenders (CML) yesterday confirmed that lenders face serious risks from fake documentation rackets ... Detective Chief Inspector Oliver Shaw, of the City of London fraud squad, said: “We have identified criminal networks that have obtained very large commercial and residential portfolios by working with corrupt valuers and solicitors. ... James Cotton, from London & Country, a broker, said yesterday that lenders also faced risks from self-certification mortgages: “We have seen the impact of people lying in America. It is the same here. It’s just difficult to know the extent to which borrowers have lied about their income because the point of self-certification deals is that lenders don’t check.”
The first stage of the police investigation - establishing the lenders’ potential liability over defaults from fraudulent loans - is expected to be completed by the end of the year.

So far, City Police have released no details on the extent of the alleged fraud, or names of companies or individuals who are being investigated or arrested.

CLICK HERE FOR UPDATE AND EXCLUSIVE INTERVIEW WITH CITY OF LONDON POLICE

Renthusiast makes headlines!

Yup, that's right, we made the Rat and Mouse headlines this morning by calling out Liam Bailey over the weekend. Who's next, Guardian, Times, Evening Standard, Metro, c'mon guys we know you're reading, show your love (:
Thanks to Ben for the support, but more importantly, it's nice to see we have backing in our argument, given the Telegraph article Rat and Mouse also linked to this morning. Ironically, that article also quotes extensively from Liam, but this time he's supporting the theory that the foreign buyers are propping up the London market, also verified by Land Registry figures released today and the fact that London is apparently set to break another record in bonuses this year in spite of the credit crunch. Who knows, maybe we were a little premature in calling out Liam like that, since the Telegraph article shows that he was putting together the Prime Central London Index. Maybe he didn't have all his figures together before FT went to press on Saturday; or maybe he was just plain misquoted, or maybe the FT was perhaps maybe guilty of a little sensationalism, tabloid style journalism? Could it be? Maybe? Nah ... not the FT, say it ain't so... please

Bailey gets it wrong on London real estate

I'm going out on a limb and publicly challenge Liam Bailey [pictured], head of Knight Frank residential research and one of the most respected and influential real estate analysts anywhere in the world.
This past weekend, in a front page FT article on the subprime fallout and London property, Bailey is quoted, claiming that if there is an expected and highly probable "downturn in City profits and employment levels, [read: smaller bonuses] you couldn't be surprised if central London prices fall". The article also paraphrases Liam claiming "a correlation between the health of the City and London residential prices' and that prime London property "suffered badly in 2002 and 2003 after prices of technology and telecommunications shares crashed."
What makes the 2007 property market different to 2002, and what Liam (and the FT) failed to highlight in this weekends article is the growing influx of foreign property ownership in central London and its impact on the property market. Bailey and the FT writer failed also to highlight Bank of England interest rate policy, which towards the end of 2003 was on the rise and may also have had an impact on the percieved slowdown in prime London real estate.
Again, another article writen by the same FT writer (Jim Pickard) in June 2007 and also quoting Liam Bailey:

The central London market has been propelled as never before by a surge of buyers from overseas, in particular the Middle East, Russia, India and China but also from European countries. The price of a top-end house in London has risen 46 per cent in the past two years, a rate of inflation four times the national average, according to research by the FT.
Liam Bailey, Knight Frank research head, says price rises in parts of London - Belgravia and Knightsbridge - have hit 45 per cent. But he predicts: "We believe that by the late summer price growth will begin to become much more subdued."
In 2004 and 2005, Knight Frank had 16 applicants per top-end property. This rose to 32 per property during 2006 - but has since dropped to 18.

The article highlights 271 central London homes sales closing at over a million pounds in February of this year, a 33% increase over last years figures. So what are we supposed to believe?
Montreal based Rodrigue Tremblay, the noted political economist, claims that the practice of sub-prime loans and the creation of "derivative financial products" is much more widespread in the USA than in other countries. High risk loans represent 20% of mortgage loans in the U.S., compared to 5% in Canada according to Tremblay. Of the $10 trillion mortgage market, about $2 trillion constitute the sub-prime mortgage market, which is a sh*tload amount of money.
But back to London, have you seen the number of '07 Lambo's and Ferrari's cruising Knightsbridge this summer? Well expensive sport cars in Knightsbridge is nothing new you say; but have you seen the increasing foreign registration, mostly Dubai licence plates? That my friend certainly is something new and something to think about

What to do when you have too much money?

Spend it on London real estate, what else?
That's what hedge fund trader Chris Rokos of Brevan Howard Asset Management plans to do with a few of his millions. Rokos's ambitions are to convert the former Hyde Park West Hotel at 25-26 Pembridge Square into a luxury 10-bedroom home:

the most astonishing element is his plan to dig four storeys below ground to create a 16ft-deep swimming pool with a high diving board.
A neighbour, who declined to give his name, said: "Nobody can quite believe the scope of what he is planning. The hotel is already 17,000 sq ft and he is seeking to increase that. It seemed such an extraordinary idea to dig that far down."
Quoted in the Evening Standard, he said: "It just seemed beyond belief. There are concerns about the structural implications for surrounding buildings but on the whole people are quite supportive of his plans as they will improve a derelict building." [Telegraph]

Here's the link to plans Rokos submitted to Kensington and Chelsea planning office.
Basically, he wants to change this:

into this:

So far, there seem not to be any objections raised.

Happy Birthday Nestoria !

Don't these guys just look so cool !

Help catch blogstalker Felicity J Lowde

This story is weird.
Social blogger Rachel from North London (pictured) is the victim of blogstalker Felicity J Lowde.
Lowde was found guilty of harassment recently, but is on the run and blogging a strange rant/defense over here.
Rachel is a heroic 7/7 bomb survivor, and set up her blog to help other victims of the tragedy, yet Felicity J Lowde has the audacity to accuse her of "deserting the dead".
The story gets weirder as one of the most popular estate agents in London almost goes by the same name as the apparent Ms Lowde(Felicity J. Lord),
which leaves me wondering that perhaps the reason the police can't catch up with Ms. Lowde is because she's using a pseudonym. Nevertheless, can all this negative publicity be good for Felicity J Lord?


UPDATE: May 25, 2007; Lowde captured and in custody

Mayor Ken "to help" on HIPs

The Greater London Authority issued this press release on behalf of London Mayor Ken Livingstone this afternoon

Mayor helps Londoners gear up for home information packs

With a month to go until the Government introduces Home Information Packs, the Mayor and British Gas have extended their offer of cut-price insulation for homes in the capital until 1st July 2007.

From 1st June, if you are selling your home you will need to have a Home Information Pack before you put your home on the market. A Home Information Pack includes an Energy Performance Certificate, which gives a rating for the building, showing its energy efficiency and its environmental impact on a scale from A-G (A is the most efficient and G the least efficient). It includes information on the construction and location of the house and the fittings such as the heating system, insulation and double glazing for example. By insulating your home you can help to improve your energy efficiency rating.

The home insulation campaign is a first part of the Mayor’s Climate Change Action Plan, which sets out how London can contribute to tackling climate change.

London’s homes are responsible for 38 per cent of London’s emissions and so tackling climate change needs to start at home. Under the Mayor's offer, Londoners can take advantage of cut-price cavity wall insulation (from £250) and loft insulation from (£274), installed by British Gas. The Mayor and British Gas will give each household that signs up for the offer £100 cash back when the work has been completed (1). Interest free credit will be available and for most households the energy savings will mean that the measures pay for themselves within a year (2).

The offer is available to every household across London that is suitable for the scheme and it is free to those that are on benefits (2). To take up the Mayor’s insulation offer, Londoners need simply to contact the helpline on 0845 070 5059 or for further information go to www.london.gov.uk.

Mayor of London Ken Livingstone said: 'The new requirement for Home Buyer Packs will enable home buyers to choose 'green' when they are looking for a house. Our surveys show that over 82 per cent of Londoners are now concerned about climate change and many want to cut their own carbon emissions. To enable Londoners who are thinking of selling their homes to better prepare for this, I have agreed with British Gas to extend our offer of cut-price home insulation to 1 July. If you are thinking of selling your home, this is the perfect chance to both make a contribution to tackling climate change and to improve the ease of selling your property.’

Housing Minister Yvette Cooper said: 'Energy Performance Certificates will give consumers energy ratings for homes similar to those found on fridges, helping them to reduce carbon emissions as well as cut their fuel bills. We want homebuyers with poorly rated homes to be able to get extra support so they can make the changes recommended. That's why I welcome the extension of this deal available to Londoners. The Government is also developing measures to make it easier for homebuyers to access grants for energy efficiency measures, linking them to new EPCs.'

Andrew Reaney, Head of British Gas Residential Energy for London said: ' With thousands of Londoners already signed up for our cut-price home insulation, we are keen to keep this offer open for as long as possible to give even more homeowners across the capital maximum opportunity to benefit from this great deal '.

New York vs London

guess who wins ...

and guess how they behave while they're living in New York

The Sheikh backing Candy&Candy

It's been recently revealed that Sheikh Hamad bin Jassim bin Jaber al-Thani, the foreign minister of Qatar is the principle funder behind Candy & Candy's One Hyde Park, rumored to be the most expensive apartments in the world, with average prices starting at £4,000/square foot.
Sheikh Hamad also made local business news recently, when it was announced that his property investment vehicle spent £90m on Sainsbury’s shares on the day that private equity groups launched a takeover bid for Britain's second largest supermarket chain .

"Bomb explodes" at Congestion Charge office

Wasn't me, I swear it ...

A letter bomb has exploded at the London HQ of congestion charge firm Capita. A female employee at the office in Victoria Street was slightly injured - she is understood to have opened the envelope.
Victoria Street has been sealed off from Westminster Abbey to just beyond Scotland Yard, with an inner cordon preventing members of the public accessing the building where the incident took place.
All six floors of the office were evacuated.
Capita manages a number of high-profile government IT services including the London congestion charge, the Criminal Records Bureau and revenue collection from TV licensing.
In March last year Rod Aldridge quit as chairman after claims he donated £1m to Labour resulting in the firm receiving Government contracts.

Gherkin sold

Reports are that London's iconic Gherkin (aka Swiss Re building) has just been sold for £600m, making it the largest ever sale of a single property asset in the U.K.

From FT:

In its early months the tower was often portrayed as something of a folly, having struggled to attract tenants because of the awkward nature of its floor plates.
Now, however, it is fully let, with Swiss Re occupying the first 16 out of 34 office floors and an array of other occupiers on the other floors. These include Hypo Real Estate, a German mortgage lender, Allianz, the German insurer, and Cardinal Asset Management, an investment firm.
The Gherkin’s sale shows there is still a strong appetite for commercial property investments in the UK despite fears that rising borrowing costs could restrain the market’s interest.

Rat and Mouse announces Register of Estate Agents

London's number one property blog announced today the brand new Register of Estate Agents (ROEA), a service aimed at helping separate "the pros from the, er, cons in UK estate agency." Apparently, the ROEA differs from existing National (and very unresponsive) Association of Estate Agents (NAEA)as well as the as yet unproven Ombudsmen scheme; in that it permits direct feedback from the general public and already has an impressive 7,000 agents registered, compared with 10,000 advertised NAEA members; a company which has been around for 40 years. Clearly the ROEA has tapped into something that the agents are loving.
But it ain't cheap; it currently costs"£1 a day" at the ROEA; (agents have the added benefit of registering for "a day, week or up to a year"), versus £1-200/year to be an NAEA member.

KFH signs deal with Rightmove and Primelocation

London based Kinleigh Folkard & Hayward announced today that they have finally signed up with Primelocation and Rightmove. Beginning this month the company will list from 50 branches in London; "60 per cent of our buyers and 50 per cent of our tenants will look at a property portal before any other activity when looking for a new home and overall, 83 per cent of our buyers use a portal as part of their search. We have taken a very measured approach to online marketing and through our analysis it is an undeniably powerful tool in today's market place," claims Paul Masters, KFH Marketing Director.

London-on-Sea: the future of a city in decay

This map reveals how Westminster Abbey, the Houses of Parliament and Canary Wharf will be among the areas at risk of flooding according to a new estimate of rising sea levels.


A sea level rise of a metre or more would be "very bad news" for major coastal cities, greatly increasing the risk of devastating storm surges. Particularly at risk are cities on or close to North Atlantic shores, such as London, according to Prof Stefan Rahmstorf, a leading climate expert at the Potsdam Institute for Climate Impact Research:

A small increase in sea level will increase the risk of serious flooding in the Thames Estuary. We need to integrate our thinking about these extreme scenarios into decisions we make about more probable flood management today. In some areas insurance cover might be withdrawn altogether, leading to the collapse of the property market and the associated urban decay. The business and finance areas in Canary Wharf would be very vulnerable to increasing flood risk.

[Telegraph]

India biggest property company trading on Aim this week

Unitech, one of India's biggest property companies, raised £360m through a new fund and will begin trading on Aim this week (Telegraph)