What caught my eye this week.
There is an interesting article [1] in the Financial Times this week that explains that new build properties aren’t as small as we’ve all been led to believe:
It turns out that, rather than shrinking, new homes have become larger.
The frequently used 76 sq m figure is simply wrong and does not reflect the reality of the recent housing market. A housing market analyst tracked the source of this figure to a report published in 1996 that was based on new builds in the 1980s and early 1990s […] the smallest on average of any period.
Unfortunately, the 76 sq m continues to appear in new articles and reports — a true zombie statistic.
Instead, new homes have actually been getting larger and are now slightly bigger, on average, than existing homes.
Apparently Help to Buy – or Help to Buy Bigger, as wags dubbed it – drove the building of more suburban four- and five-bedroom homes, at the expense of fewer city centre flats.
This doesn’t match what I’ve seen in London, of course.
But hey! It’s a big country out there…
[2]
Neal Hudson’s article is full of interesting facts. Give it a read [1] if you’re interested in property (and please consider subscribing to the FT if you read a lot of these search links. I do and it’s a treat!)
Breathing space
With Labour aiming to see 1.5m new homes being built – um, someday – I presume this apparent trend for roomier living space will need to be reversed.
Especially as the listed housebuilders’ focus on making bigger ‘executive homes’ targeting DINKYs [3] to rattle around in might be yet another reason why young people find nice no-frills starter flats so hard to snag.
I’m all for higher-density [4] development. Provided the model is classy areas like London’s Maida Vale or Paris’ famously beautiful mid-rise boulevards. Not the high-rise horrors of yesteryear, obviously.
But I suppose that the desirable urban apartment model might face an uphill battle while lockdown – and the near-universal desire for a bit of outdoor space it inspired – is still fresh-ish in our memories?
Have a great weekend.
From Monevator
Reduce tax on savings by parking cash in gilts [Members] – Monevator [5]
UK and Europe dumps on Trump – Monevator [6]
From the archive-ator: How I got mixed up in this FIRE business – Monevator [7]
News
Note: Some links are Google search results – in PC/desktop view click through to read the article. Try privacy/incognito mode to avoid cookies. Consider subscribing to sites you visit a lot.
Bank of England cuts rate to 4.75% but hints at fewer to come – BBC [8]
House prices have hit a new record, says Halifax – This Is Money [9]
Mortgage rates to stay higher thanks to Reeves and Trump – iNews [10]
Iceland’s four-day work week seems to be working out – CNN [11]
Foreign buyers eye Japan’s empty houses, but experts warn of risks – CNBC [12]
The ten fastest-growing scams of 2024 – This Is Money [13]
Is Germany’s business model broken? [Search result] – FT [14]
[15]
The US market is top-heavy and expensive – Apollo Academy [16]
Trump 2.0 mini-special
People really hate inflation – The Belle Curve [17]
Francis Fukuyama: what Trump unleashed means for America [Search result] – FT [18]
Presidential terms, recessions, and bear markets – A Wealth of Common Sense [19]
Trump 2.0 and the effect on UK investors – FT [20]
VWRL salutes the new king – Simple Living in Somerset [21]
The psychology of America’s divided politics – The Next Big Idea [22]
Breaking down the election results – Slow Boring [23]
Lessons from the post-Civil War era – Politico [24]
Here’s hoping Trump’s VC supporters have his number – Newcomer [25]
Identity politics isn’t working – Noahpinion [26]
Has the US presidency become a dictatorship? [Podcast] – Freakonomics [27]
Products and services
The trend for ‘copycat’ ETF tickers – Bloomberg via Yahoo [28]
Student loan overpayments reach £80m this year. Are you due a refund? – Which [29]
Open an account with low-cost platform InvestEngine via our link [30] and get up to £50 when you invest at least £100 (T&Cs apply. Capital at risk) – InvestEngine [30]
Why are university tuition fees going up in England, and who’s affected? – Guardian [31]
“I lost £15,500 to a Revolut bank transfer scam” – Which [32]
Is Amex Platinum’s £400 dining credit card worth a look? – Be Clever With Your Cash [33]
Beautifully renovated homes, in pictures – Guardian [34]
Comment and opinion
Slaying some of the biggest passive investment bogeymen – FT [35]
Big inheritances can be a sign of underspending and poor planning – Morningstar [36]
When did this bull market start? – Of Dollars and Data [37]
Mohamed El-Erian: Budget puts Labour on the right track – Guardian [38]
14 money lessons from 40 years of living – Mr Stingy [39]
The great post-Budget pensions rethink [Search result] – FT [40]
Retire without regrets – Harvard Business Review [41]
The ‘happiness plateau’ doesn’t exist – Bloomberg via Advisor Perspectives [42]
Remember, remember – Klement on Investing [43]
Breaking down the magic of portfolio diversification [Nerdy] – CAIA [44]
Naughty corner: Active antics
Was the Polymarket Trump whale smart or lucky? – FT [45]
Bloated balance sheets in Japan – Verdad [46]
Cash! – The Brooklyn Investor [47]
Headlam isn’t right for a UK dividend portfolio – UK Dividend Stocks [48]
No, higher corporate tax rates do not reduce profits – Klement on Investing [49]
Kindle book bargains
I Will Teach You To Be Rich by Ramit Sethi – £0.99 on Kindle [50]
Eat That Frog! Get More of the Important Things Done by Brian Tracy – £0.99 on Kindle [51]
Growth: A Reckoning by Daniel Susskind – £0.99 on Kindle [52]
A Confederacy of Dunces by John Kennedy Tool [Not financial, just a fav] – £0.99 on Kindle [53]
Environmental factors
UK sales of used EVs hit a record – This Is Money [54]
Many of the big indoor farming startups have shut down – PitchBook [55]
Robot overlord roundup
What AI knows about you – Axios [56]
Writes and write-nots – Paul Graham [57]
AI search could break the web – MIT Technology Review [58]
Off our beat
Read more books – Not Boring [59]
What’s behind Big Tech’s return-to-office mandates? [Podcast] – The Verge [60]
How China is like 19th Century America – Construction Physics [61]
How startups stopped being fun – Crunchbase [62] [h/t Abnormal Returns [63]]
What if America keeps getting better? – Drezner’s World [64]
1,100 emails, a 90% open rate, and why people still ghost you – Nerd Processor [65]
Can Starbucks make a comeback? – The Eater [66]
And finally…
“There is no reason to sell a rising stock.”
– Nicolas Darvas, How I Made $2,000,000 in the Stock Market [67]
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