For once the oft-used expression "mixed messages" seems the most apt way to describe the latest lending stats from the Bank of England.
Total net lending to individuals rose by £0.3 billion in July. The twelve-month growth rate was unchanged at 0.8% in July. The three-month annualised growth rate fell to 0.5% in July, from 0.6% in June.
Within the total, net lending secured on dwellings increased by £0.1 billion, below the June increase of £0.5 billion and the previous six-month average of £0.8 billion.
The twelve-month growth rate rose slightly in July to 1.0%, from 0.9% in June, and the three-month annualised growth rate decreased to 0.4%, from 0.6% in June.
The number of loan approvals for house purchase (48,722) was broadly in line with the June figure (48,562) and the previous six-month average (48,546). Approvals for remortgaging (26,951) however, were up on June and also higher than the previous six-month average (26,235).
This could suggest that home owners are cashing in on the equity of their homes to fund major improvements such as buying a new kitchen or bathroom. Equally, they could be using the money to pay off other loans.
Consumer credit rose by £0.2 billion in July, in line with the previous six‑month average and above the June decrease of £0.1 billion, and credit card lending increased by £0.2 billion, in line with the previous six-month average. Other loans and advances remained stable, also in line with the previous six-month average.
The annual growth rate of consumer credit rose by 0.2 percentage points to 0.2% and the three-month annualised growth rate rose to 0.9%.
31 August 2010
Lean and mean selling machine
Forgive me, but I'm getting just a tad fed up with those in KBB Land banging on about how bad business is because property prices are not racing ahead out of control.
Again.
I've been through at least four property roller coaster rides since the 1960's (no, the 60's weren’t all peace and love and sadly not all sex and drugs and rock'n'roll either), and they all followed the same pattern.
House prices go up and everyone thinks the rise will last for ever. People get very excited and over-extend themselves. House prices plummet and everyone looks surprised.
Wounds are licked, house prices come down slightly, wages go up slightly, and the pain of negative equity fades, and off we go again. That's basically all there is to it
Oh yes, one other small but interesting point. Since 1968, every housing bust has lasted the same time as the boom that preceded it.
If that's repeated this time (and don't be misled by the temporary 'spike' in property prices that - happened in the last crash too), we have another seven or eight years to wait before we see property prices shoot up again.
Now you can spend the next eight years looking over your shoulder at the "good old days" if you wish, but you are going to miss a lot of the opportunities that lay ahead if you do.
We've lost the 'froth' of year-on-year property price hikes, but when did anybody doing up an investment property for a quick sale buy quality kitchens and bathrooms?
Why do builders (mostly) only focus on how low they can drive the prices of the kitchens and bathrooms they buy too?
It's because neither had to live with the consequence of their purchase decisions.
The private buyer who is going to live in their 'home' - and the key word here is 'home not 'property investment' - is the bedrock of the UK's kitchen and bathroom business.
Oh sure, the private buyer can drive a hard bargain because it's a buyer's market. But you've trimmed your costs and you are now leaner and meaner, thanks to your froth-free diet.
The independent kitchen or bathroom supplier is best placed to do serious business with serious customers, but you won't see them coming if you are always looking behind you.
Again.
I've been through at least four property roller coaster rides since the 1960's (no, the 60's weren’t all peace and love and sadly not all sex and drugs and rock'n'roll either), and they all followed the same pattern.
House prices go up and everyone thinks the rise will last for ever. People get very excited and over-extend themselves. House prices plummet and everyone looks surprised.
Wounds are licked, house prices come down slightly, wages go up slightly, and the pain of negative equity fades, and off we go again. That's basically all there is to it
Oh yes, one other small but interesting point. Since 1968, every housing bust has lasted the same time as the boom that preceded it.
If that's repeated this time (and don't be misled by the temporary 'spike' in property prices that - happened in the last crash too), we have another seven or eight years to wait before we see property prices shoot up again.
Now you can spend the next eight years looking over your shoulder at the "good old days" if you wish, but you are going to miss a lot of the opportunities that lay ahead if you do.
We've lost the 'froth' of year-on-year property price hikes, but when did anybody doing up an investment property for a quick sale buy quality kitchens and bathrooms?
Why do builders (mostly) only focus on how low they can drive the prices of the kitchens and bathrooms they buy too?
It's because neither had to live with the consequence of their purchase decisions.
The private buyer who is going to live in their 'home' - and the key word here is 'home not 'property investment' - is the bedrock of the UK's kitchen and bathroom business.
Oh sure, the private buyer can drive a hard bargain because it's a buyer's market. But you've trimmed your costs and you are now leaner and meaner, thanks to your froth-free diet.
The independent kitchen or bathroom supplier is best placed to do serious business with serious customers, but you won't see them coming if you are always looking behind you.
26 August 2010
New kitchen component showcase launched
Kitchen component companies come together for three-day showcase.
The launch of Kx v.10, a three day kitchen component event showcasing the next generation of kitchen storage and accessory solutions from leading manufacturers and distributors, has been announced.
Kx v.10 will be held at the, centrally located Blum headquarters in Milton Keynes from Tuesday 21 September to Thursday 23 September.
In addition to the launch of new and innovative products from each exhibitor, there will also be a series of product demonstrations and seminars.
Click here for further info
The launch of Kx v.10, a three day kitchen component event showcasing the next generation of kitchen storage and accessory solutions from leading manufacturers and distributors, has been announced.
Kx v.10 will be held at the, centrally located Blum headquarters in Milton Keynes from Tuesday 21 September to Thursday 23 September.
In addition to the launch of new and innovative products from each exhibitor, there will also be a series of product demonstrations and seminars.
Click here for further info
23 August 2010
Making a virtue out of a necessity
You have to hand it to Siemens Appliances. In one fell swoop they give the nervous customer peace of mind while at the same time slamming the kitchen door shut on its competitors.
The brand has just launched a free, five year warranty covering call out, parts and labour on selected built-in appliances. And before you start having naughty thoughts about the ‘selection’, the list includes the latest aCool refrigeration, designer chimney hoods, plus a broad cross section of built-in ovens, hob, compact appliances, and integrated dishwashers.
To qualify for the warranty and get the reassurance that, in the unlikely event of one of the Siemens appliances turning up its tail during the first five years of its working life, the consumer has to select five appliances for their new kitchen or remodelling project.
The promotion runs through to 1st January, so its timing is perfect for those “Beat the VAT Increase” sales in the run-up to the end of the year, and the appliances themselves have be installed by June 2011.
No matter how reliable the brand, the consumer wants a guarantee – and the longer the better too. A free five year all-embracing warranty is highly desirable and I would wager most customers would happy to have a kitchen full of Siemens appliances in return for the peace of mind such a guarantee will give them.
Cunning eh?
The good, the bad and the dangerous kitchen appliances - according to Which?
The latest report by Which? includes the usual mixed bag of advice about kitchen appliances from the Consumers Association.
Things get off with a bang on page 6 with a report of two exploding washing machines in Germany. The manufacturer (Candy) was unable to say whether UK models could go bump in the night as well but did offer the reassurance that the problem related to a "very rare and now historic anomaly seen sporadically in a tiny fraction of high spin models made prior to September 2009".
"Tiny fraction" could also apply to the amount of dust a Tesco vacuum cleaner picked up in a recent Which? test. "Every little helps" may be a catchy advertising phase but Which? were clearly looking for a little more than the 2% of dust the machine picked up and stated the appliance was "the worst model we have reviewed in recent years".
There was much better news for AEG (AEG-Electrolux surely? Ed.) on page 11 as Which? said its AUS 3965P vacuum was not only "the quietest we've tested in recent years" but also delivered "excellent" cleaning of carpet laminate and floorboards.
There was also praise for the new Bosch SMS63E12GB dishwasher which reduced the amount of water it uses on a full load by around five litres less than other full size machines.
It looks like there has been a change of policy at the Consumers Association. The Which? review of kitchen appliances that should have been a weighty tome was just three pages long. Most of the information - and there is quite a lot of it - is now online. For example visit www.which.co.uk/kitchenappliances and you can click through to reviews of 86 built-in ovens, 106 dishwashers and 125 fridge freezers.
But you need to be a member of Which? to read the full results - and that has to be bad news for dentists' waiting rooms throughout the land. It also gives Which? the chance to plug other services such as its list of expert tradespeople.
In terms of the appliances mentioned in the magazine, top marks go to: Indesit for its VIA 640C hob; Electrolux for its Intuition single oven; Miele for its W5740 washing machine; and Samsung for its RL38SB fridge-freezer.
Things get off with a bang on page 6 with a report of two exploding washing machines in Germany. The manufacturer (Candy) was unable to say whether UK models could go bump in the night as well but did offer the reassurance that the problem related to a "very rare and now historic anomaly seen sporadically in a tiny fraction of high spin models made prior to September 2009".
"Tiny fraction" could also apply to the amount of dust a Tesco vacuum cleaner picked up in a recent Which? test. "Every little helps" may be a catchy advertising phase but Which? were clearly looking for a little more than the 2% of dust the machine picked up and stated the appliance was "the worst model we have reviewed in recent years".
There was much better news for AEG (AEG-Electrolux surely? Ed.) on page 11 as Which? said its AUS 3965P vacuum was not only "the quietest we've tested in recent years" but also delivered "excellent" cleaning of carpet laminate and floorboards.
There was also praise for the new Bosch SMS63E12GB dishwasher which reduced the amount of water it uses on a full load by around five litres less than other full size machines.
It looks like there has been a change of policy at the Consumers Association. The Which? review of kitchen appliances that should have been a weighty tome was just three pages long. Most of the information - and there is quite a lot of it - is now online. For example visit www.which.co.uk/kitchenappliances and you can click through to reviews of 86 built-in ovens, 106 dishwashers and 125 fridge freezers.
But you need to be a member of Which? to read the full results - and that has to be bad news for dentists' waiting rooms throughout the land. It also gives Which? the chance to plug other services such as its list of expert tradespeople.
In terms of the appliances mentioned in the magazine, top marks go to: Indesit for its VIA 640C hob; Electrolux for its Intuition single oven; Miele for its W5740 washing machine; and Samsung for its RL38SB fridge-freezer.
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