What caught my eye this week.
There is an interesting article 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…
Neal Hudson’s article is full of interesting facts. Give it a read 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 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 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
UK and Europe dumps on Trump – Monevator
From the archive-ator: How I got mixed up in this FIRE business – Monevator
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
House prices have hit a new record, says Halifax – This Is Money
Mortgage rates to stay higher thanks to Reeves and Trump – iNews
Iceland’s four-day work week seems to be working out – CNN
Foreign buyers eye Japan’s empty houses, but experts warn of risks – CNBC
The ten fastest-growing scams of 2024 – This Is Money
Is Germany’s business model broken? [Search result] – FT
The US market is top-heavy and expensive – Apollo Academy
Trump 2.0 mini-special
People really hate inflation – The Belle Curve
Francis Fukuyama: what Trump unleashed means for America [Search result] – FT
Presidential terms, recessions, and bear markets – A Wealth of Common Sense
Trump 2.0 and the effect on UK investors – FT
VWRL salutes the new king – Simple Living in Somerset
The psychology of America’s divided politics – The Next Big Idea
Breaking down the election results – Slow Boring
Lessons from the post-Civil War era – Politico
Here’s hoping Trump’s VC supporters have his number – Newcomer
Identity politics isn’t working – Noahpinion
Has the US presidency become a dictatorship? [Podcast] – Freakonomics
Products and services
The trend for ‘copycat’ ETF tickers – Bloomberg via Yahoo
Student loan overpayments reach £80m this year. Are you due a refund? – Which
Open an account with low-cost platform InvestEngine via our link and get up to £50 when you invest at least £100 (T&Cs apply. Capital at risk) – InvestEngine
Why are university tuition fees going up in England, and who’s affected? – Guardian
“I lost £15,500 to a Revolut bank transfer scam” – Which
Is Amex Platinum’s £400 dining credit card worth a look? – Be Clever With Your Cash
Beautifully renovated homes, in pictures – Guardian
Comment and opinion
Slaying some of the biggest passive investment bogeymen – FT
Big inheritances can be a sign of underspending and poor planning – Morningstar
When did this bull market start? – Of Dollars and Data
Mohamed El-Erian: Budget puts Labour on the right track – Guardian
14 money lessons from 40 years of living – Mr Stingy
The great post-Budget pensions rethink [Search result] – FT
Retire without regrets – Harvard Business Review
The ‘happiness plateau’ doesn’t exist – Bloomberg via Advisor Perspectives
Remember, remember – Klement on Investing
Breaking down the magic of portfolio diversification [Nerdy] – CAIA
Naughty corner: Active antics
Was the Polymarket Trump whale smart or lucky? – FT
Bloated balance sheets in Japan – Verdad
Cash! – The Brooklyn Investor
Headlam isn’t right for a UK dividend portfolio – UK Dividend Stocks
No, higher corporate tax rates do not reduce profits – Klement on Investing
Kindle book bargains
I Will Teach You To Be Rich by Ramit Sethi – £0.99 on Kindle
Eat That Frog! Get More of the Important Things Done by Brian Tracy – £0.99 on Kindle
Growth: A Reckoning by Daniel Susskind – £0.99 on Kindle
A Confederacy of Dunces by John Kennedy Tool [Not financial, just a fav] – £0.99 on Kindle
Environmental factors
UK sales of used EVs hit a record – This Is Money
Many of the big indoor farming startups have shut down – PitchBook
Robot overlord roundup
What AI knows about you – Axios
Writes and write-nots – Paul Graham
AI search could break the web – MIT Technology Review
Off our beat
Read more books – Not Boring
What’s behind Big Tech’s return-to-office mandates? [Podcast] – The Verge
How China is like 19th Century America – Construction Physics
How startups stopped being fun – Crunchbase [h/t Abnormal Returns]
What if America keeps getting better? – Drezner’s World
1,100 emails, a 90% open rate, and why people still ghost you – Nerd Processor
Can Starbucks make a comeback? – The Eater
And finally…
“There is no reason to sell a rising stock.”
– Nicolas Darvas, How I Made $2,000,000 in the Stock Market
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