Investment news – Smaller banks lobby heats up

Smaller banks lobby heats up

Well, it appears that my shouts and disgust about the creation of large banks (such as Lloyds Group) that undermine competition are not falling on deaf ears.

Now I don’t think for a minute that anyone in power is actually listening to my rants but it appears that I am not alone. Vince Cable and George Osborne are releasing their thoughts today about the issue.

So everyone cross your fingers and hopefully it will produce a much more competitive environment. Oh, by the way if you are in any doubt about the lack of competition then think about margins. Pre-2007 margins on investment property were around 2% including arrangement fees, now margins are around 5-6%. Hmmm, hopefully, you see the benefit of competition in the marketplace.

Competition is one of those things that a free market must have, without it the market moves to an inefficient and unproductive system where innovation lags and the investment property economy stagnates.

In addition to this it looks like the FSA is getting the chop. Well, losing its regulatory capacity and the Bank of England will take over as the regulator.

Live with passion,
Brett Alegre-Wood

About the Author

Brett has over 20 years experience in all facets of property, he owns various companies centred around property and is the driving force behind the education and training at Gladfish. His companies have sold over £850 million in UK and London property and he manages over 1200 properties through his estate agency chain. Today he shares his time between UK, Australia and Singapore. He is married to Arlene and together they have 4 kids.

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