Investors have poured £20bn into central London offices this year – one third above the long-term average. More than 90% of the cash came from overseas investors, as the capital’s commercial property market continued to defy fears of a capital exodus in the run-up to Brexit. Meanwhile, foreign buyers have invested £144.3bn in London’s commercial property over the past 20 years, according to research by CBRE.

The Daily Telegraph

The Financial Conduct Authority has banned London Capital and Finance from paying out interest pending an investigation into concerns about its marketing practices, which promised hefty returns.

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Insolvency or financial distress forced sixteen companies off the Alternative Investment Market last year, analysis by UHY Hacker Young has revealed. The figure is up from nine in 2017. But despite the year-on-year increase, the number of businesses delisting after insolvency or financial distress was still lower than the average in recent years, with 24 failures recorded in each of 2016 and 2015 and 18 in 2014.

The Times

Data from the Office for National Statistics reveals that state borrowing fell to £7.2bn in November – a drop of £900m on a year earlier and marking the best November for 14 years. The figures also show that £26.5bn flowed out of Britain and into other countries in the third quarter, with the balance of payments deficit up from £20bn in Q2. Meanwhile, business investment has dipped for the third consecutive quarter, separate ONS figures show.

The Times

More employees at small firms are predicted to opt out of saving for their pensions once minimum deductions from their pay packets are increased this April. According to a survey by the Association of Consulting Actuaries, 65% of businesses employing fewer than ten people expect modest or substantial decreases in participation. Roughly 6.1m employees face a cut in their take-home pay when pension deductions under the automatic enrolment rules are increased, the Department for Work and Pensions estimates. Minimum employee contributions are due to be raised from 3% of eligible pay to 5% in April, while employer contributions are due to be raised from 2% to 3% at the same time.

The Times

The Financial Conduct Authority is currently investigating 18 companies in connection with cryptocurrency transactions, the Telegraph reports. Figures released to the paper show nearly 70 probes have been launched in total. Christopher Woolard, the executive director of strategy and competition at the FCA said the regulator, the Treasury and the Bank of England would all be addressing the threat in the coming months and encouraging more “beneficial innovation”.

The Sunday Telegraph

The Royal Institution of Chartered Surveyors (Rics) has said house prices will stagnate in 2019 and the number of sales will fall as Brexit and affordability constraints take their toll on the property market. Rics expects house sales to fall by 5% to about 1.15m compared with this year.

The Guardian

The FCA is introducing new rules to protect victims of bank scams. Under the changes, the bank receiving money from a victim of this type of scam, known as authorised push payment (APP) fraud, must take on the victim’s complaint if one is made about their handling of the situation. Currently, the bank sending the money – but not the receiving bank – must handle these complaints in line with FCA rules. The banking industry recorded almost 44,000 cases of APP fraud in 2017, with victims losing £236m. The average loss was almost £5,400.

The Times

New figures from the Bank of England show record numbers of mortgage borrowers are taking on dangerously high levels of debt to get on the housing ladder. A record 47% of mortgages in the third quarter of 2018 went to customers on ‘high loan to income multiples’. For a couple, this means borrowing more than three times their annual income, and for a single buyer, borrowing four times their earnings. Justin Modray, of financial advice group Candid Money, said: “If we do see a spike in interest rates it could leave people struggling to afford their mortgages.”

Daily Mail

David Lipton, the deputy head of the IMF, has warned that the financial system is unprepared for another downturn. He said that more than a decade on from the last crash in the global banking system, “crisis prevention is incomplete”.

The Observer

Wealthy savers poured more money into tax-efficient venture capital schemes that invest in early-stage companies in 2017-18 than in any year since 2006.

Financial Times

ONS data shows London’s economy is moving farther away from the rest of the UK, growing more than four times as fast in 2017 than in the country’s poorest region.

Financial Times

October saw Britain’s highest levels of remortgaging in ten years, according to UK Finance data, with 50,500 new homeowner remortgages worth a total of £9.2bn completed in the month, up 23.2% compared with the same month a year earlier. Noting that many fixed rate mortgages were coming to an end, UK Finance’s director of mortgages Jackie Bennett said the numbers were driven by homeowners locking into attractive deals amid a competitive market.

City AM

The Financial Action Taskforce, which sets global standards against financial crime, has awarded the UK top marks in eight out of 11 key goals in its latest report. However, the FAFT also warned that Britain’s national anti-money laundering unit is understaffed and underfunded. It said the lack of personnel and technological capabilities at the National Crime Agency’s financial intelligence unit was a serious concern.

Financial Times

The Financial Conduct Authority has warned that more families are struggling to keep up with their mortgage payments now than at the height of the financial crash. In 2008 the number of homes in serious arrears of more than 12 months was 56,000, with a repossession rate per year of 22%, while 70,000 are now behind – although repossession rates have dropped to 2.7%. Jonathan Davidson, executive director of supervision, retail and authorisation at the FCA, said: “If interest rates start to go up, I’m afraid the repossessions will also rise.” The FCA also warned that some banks are not doing enough to support those in arrears, with some failing to identify vulnerable customers. It also identified inconsistencies in firms’ arrears management practices. The regulator looked at eight banks, covering around 40% of the market, and is considering regulatory action against one or more of them.

Daily Mail

Analysis by property services company JLL shows that financial services companies are looking for more new office space in the City than at any time since 2015. The sector is seeking 2.4m sq ft of office space, a figure that represents 37% of total demand and puts it ahead of any other sector. Figures show City of London office leases agreed by banks and financial services companies fell from 1.6m sq ft in 2016 to 1.3m sq ft in 2017, with take-up in 2018 set to marginally beat last year’s total.

The Times

UK house prices rose by 1.9% in the year to November, up from a five-year low of 1.6% in October according to Nationwide. On a monthly basis, prices were up 0.3% to £214,044, but the lender said Brexit uncertainty has left the property market “relatively subdued”. Robert Gardner, Nationwide’s chief economist, said that in the near term the squeeze on household budgets and the uncertain economic outlook would dampen demand, despite low borrowing costs and unemployment being at a 40-year low. He did, however, add: “If the uncertainty lifts in the months ahead and employment continues to rise there is scope for activity to pick up through next year.”

BBC News

The UK’s financial stability could be threatened by a fresh banking crisis in Italy, the Bank of England has warned, with risk modelling suggesting problems would move to French and German banks and then spread to the UK. Italian debt yields have risen amid political uncertainty while government debt is more than 130% of GDP. “Although direct UK banking exposures to Italy are low, if financial strains were to spread across the euro area, there could be a material risk to UK financial stability,” the Bank said.

The Daily Telegraph

The Independent’s Chris Blackhurst says trust in bankers has improved, with 41% now saying they would trust a banker to tell the truth, up from 21% in 2013. Although advances have been made in making the sector safer from collapse, and behaviour seems to have changed; if they wish to climb higher in the trust table, Blackhurst says they “have to show humility and empathy, to be appreciated for the benefit they bring, to be seen to care. To get it.”

The Independent

November 2018

NatWest has announced the launch of a new digital platform which will be available to its business and commercial customers, allowing them to apply online for secured and unsecured loans of up to £750,000. This is the largest amount of digitally available loans in the industry. Applicants will be able to complete the process in a matter of minutes, with a decision being communicated to customers usually within 24 hours.

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