The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
"Really?"
I agree. Would be of benefit while the share price is still so low. Fewer shares and an increasing dividend has to be a good medium term prospect. Appreciate many others here want all the cash right now. Im not retired yet so looking for growth more than income.
"Why don't we chat about the banking sector."
:)
"Could this be the start of a change in fortune for banking sector shareholders"
MuchaboutMoney shares your optimism and posted a good link at 9:21PM yesterday. I usually ignore Motley Fool but this article focuses on the improvements to NIM from rising base rate and is equally positive fro LLOY.
"Please discuss"
I think it's unlikely we will see 50p by Friday. Personally I think progress towards peace in Ukraine will help lift it though others disagree that it will affect a UK domestic bank. I am also looking towards announcements for a possible buyback next year at same or higher level than this as a potential trigger upwards, though many did not support this years let alone a repeat exercise. With sustained dividend growth and fewer shares I am hoping it will double my money in a few years from now, while giving me a reasonable income.
That said, last week I wondered if the SP would flop towards 40p after the budget - it went to 45p.
Im not defending Johnson or suggesting that was a bright thing to do, or a helpful contribution to UK plc's trade prospects. He does make me wonder why it's OK that public servants are allowed to make highly paid after dinner speeches at international forums while still working as an MP and enjoying a former PM £115k annual allowance.
Coercive autocracy seems a fair description to me of China. And not far off for Russia.
Britain is still aspiring to it. Next step appears to be ripping up the Human Rights Act 1998 while clamping down on the right to protest with the Public Order Bill.
"It wasn't Britons that burnt away the Amazon or the forests of SE Asia to produce palm oil."
Modern restaurants in UK wont budge on using palm oil, so that isn't quite true, significant demand came from this country."
"stupidity in my book"
Yes.
I suppose people who are first time buyers that take advantage of this still think in the long run buying over 35 years is better than renting. There cant be that many existing homeowners that would refinance over another 35 years, who are over 35 years old though. Perhaps it's a case of what else is there they can do to shore up our over valued property market. I don't think it will help much for all the people coming off fixed rates over the next year, many of whom will face a two to three times increase in their interest payment.
• 7/21 Established to “improve access to good quality and sustainable rental housing” in the context of an emerging “Suburban Build to Rent market”.
• 8/21 Announces strategic partnership with Barrett “to work together on a site-by-site basis to develop incremental housing stock for the rental market, with a focus on the environmental standards of properties”.
• 9/21 Announces £300M fund with Homes England.
• Citra Living will complete initial purchases but hopes to build the bulk of its portfolio through partnerships to develop new sites from scratch.
• 12/21 initial budget of £250M rumoured to be increased to £1B
• 400 units owned and let by end of 2021
• 800 units owned and let by end of 2022
• 10,000 units owned and let by end of 2025
• 50,00 units owned and let by end of 2030 *(Equivalent to about 1% of UK’s rental housing stock).
• The 4.4m households in England’s private rented sector are owned by 2.3m landlords
• Operators talk of 10,000 units being the level at which economies of scale kick in, but no private landlords have yet attained that in the UK.
• Grainger is currently the largest UK private landlord with 9,100 units worth approximately £2.1B
• Clarion is the largest UK Housing Association with 125,000 units and plans to increase by 50,000 units in the next ten years.
Reported Purchases:
• Nene Wharf, Flettons Quay, Peterborough 45 units completed by GRE - let
• Riverside Park, Ashford, Kent 110 units completed by GRE - let
• Ladden Garden Village, Bristol 150 units planned - Barratt 22/23
• Cramlington, Newcastle 58 units completed – let
• Wixams, Bedfordshire 66 units planned - Barratt 23/24
Annual Review 2021 – “Citra Living will form part of Lloyd’s approach to the decarbonisation of housing, focusing on buying and renting energy efficient properties, helping to reduce the environmental impact of the UK’s housing stock and contributing to the UK’s overall net zero goals. The Board was pleased that Citra Living was able to build on the Group’s existing support for the housing market, while also contributing to the Group’s environmental ambitions”.
My view is there must be an under reporting of purchases, or, for whatever reasons, they are not committing to the early level of expansion as originally expected.
"peace in the Ukraine lift the share price of a UK centric company"
its optimism based on the fact that lloyds couldn't resist the general lift that would come from a settlement to the conflict.
I wasn't suggesting only Lloyds would rise. And I could easily be wrong! But ask why would war in the Ukraine depress the share price of a uk centric economy and you're halfway to the answer.
"maintained or increasing profitability along with a £2 Billion share purchase programme each year"
Yes agreed id be very happy with that and I have always had more optimism for lloyds over five years than one.
"17th November"
Dare we hope for 50p again if no windfall tax? Or at least see Grizzles 45p...
grizzle
"My thinking is that should the biggest mortgage lender have to re-claim properties, wouldnt this be a bonus for the property company they are creating"
I see your logic, but these two things aren't connected. Lloyds are buying new builds only, usually a significant proportion of each site, sometimes buying off plan.
Individual household repossessions will go through auctions.
I share your frustration with the SP though. I think peace in Ukraine would lift it, not sure what else.