Leeds Economy [Archive] - SkyscraperCity

Val Verde

February 25th, 2008, 08:45 PM

News from today's YEP of the Leeds Building Society giving record results despite turbulance in the financial services sector: http://www.yorkshireeveningpost.co.uk/news/BREAKING-NEWS-Record-results-for.3812291.jp

BREAKING NEWS: Record results for the Leeds

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Leeds Building Society has unveiled record results

By Nigel Scott
LEEDS Building Society today announced record results for 2007 - despite what it described as a background of "unprecedented turbulence" in the financial services sector.

The UK's seventh largest building society said savings balances had risen by above market share to a record £757m - funding 94 per cent of all net lending in 2007.

Net lending rose by 16 per cent to a record £807m and the Society said the quality of its lending remained "very good" with average loan to value (LTV) on 2007 advances of 53 per cent.

Customers with arrears of three months or more remained "very low" at 0.7 per cent - a rise of only 0.1 per cent during the year.

Chief Executive, Ian Ward, said: "Our very strong financial results in 2007 maintain our unbroken trend, for more than a decade, of year-on-year increases in pre-tax profit. We are well placed to compete successfully in the short, medium and long-term."

The Society said it had further improved its efficiency with its cost to asset ratio reducing to 53p per £100 of assets from 58p during 2006.

Its cost to income ratio improved to 40 per cent against an industry leading figure of 41 per cent in 2006.

It said it had added 60,000 new members during the year and had seen its assets rise by over £1bn to £9.2bn (2006: £8.1bn).

Pre-tax profits rose by 10 per cent to a new record of £63.2m (2006: £57.2m).

The society said this meant "financial security and strength" for members with reserves increasing to £446m

The Leeds added it had no exposure to US sub-prime assets - one of the factors in the so-called "credit crunch" which is hitting banks' performance.

Mr Ward continued: "The uncertainty in the markets underlines why building societies are so important. Our sustainable, successful business model produced a 10 per cent increase in pre-tax profits, a 13 per cent rise in assets and our strong balance sheet was underpinned by record levels of savings inflows.

"The majority of our net lending in 2007 came from our members' savings and, as a result, we are much less exposed to the liquidity issues in the market than many banks and other financial organisations."

The Leeds said its increased presence on the high street - it acquired 12 branches in the North East following its merger with Mercantile Building Society in 2006 - had contributed to savings trebling through its branch network.

Mr Ward added: "Over 94 per cent of our residential mortgage book is funded by our own members' savings and this approach has kept us well insulated from the difficulties experienced by many of our competitors.

"Our mortgage book is of outstanding quality, with very low levels of arrears that are less than half of the industry benchmark."

So could we see a possible new head office for the Leeds Building Society as I heard they are staying put on the Headrow but surely it must be getting congested there and could they perhaps purchase or merge with other building societies to strengthen its position as a building society from the 7th largest at present and surely it is a good thing for Leeds to have a relatively large, locally based building society? Also guess its worthwhile mentioning that ASDA are creating 9,000 jobs across the UK: http://news.bbc.co.uk/1/hi/business/7254202.stm

Asda plans to create 9,000 jobs

Asda is looking to close the gap on its larger rivals
Supermarket firm Asda is to embark on large-scale expansion plans this year and will create 9,000 new jobs and open 22 stores, its chief executive says.
Asda boss Andy Bond told the BBC the company planned to create jobs on the shop floor, in the pharmaceutical sector and its home delivery service.

Some 500 jobs are to be at new in-store pharmacies, while 1,500 are part of moves to extend its home delivery arm.

A day earlier, Asda's parent firm Wal-Mart said annual profits rose 8.6%.

The first of Asda's new stores is due to open in Andover, Hampshire, in March. Other locations targeted during 2008 include Dalgety Bay in Scotland and Bridgend in Mid-Glamorgan.

Store extensions are planned in Chapeltown, Elgin, Hulme, Kirkcaldy, Boldon, Govan, Portsmouth, Donnington Wood, Hyson Green, Chatham, Luton and Gosport.

Wal-Mart bosses said Asda - which has its UK headquarters in Leeds - was doing well but would give no detail beyond saying like-for-like sales rose by "mid single digits".

Mr Bond dismissed the idea that the UK was heading for a recession and added that Asda's priority was to keep prices down.

The news comes after the Competition Commission released a report last week with suggestions on how to counter problems it perceived in the UK's grocery sector.

These included a tougher code of practice over how supermarkets deal with suppliers, and recommendations that local governments perform a "competition test" when deciding whether to give planning permission for new large supermarkets.

Val Verde

June 2nd, 2008, 04:43 PM

Bradford & Bingley has made a loss of £8 million in the first four months of 2008. :ohno: :bash: http://news.bbc.co.uk/1/hi/business/7430460.stm

B&B sees loss in wake of downturn

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Bradford & Bingley has had problems with the buy-to-let mortgage market
Losses and a warning of tougher times ahead have sent shares in UK mortgage lender Bradford & Bingley tumbling.

It made a £8m pre-tax loss in the first four months of 2008, against a £108m profit in the same period last year.

B&B blamed problems with its buy-to-let mortgages as home-owners struggle to repay loans.

In a bid to boost its finances the lender is selling a 23% stake to US private equity giant Texas Pacific Group (TPG) for £179m.

"It has suffered further charges on its so-called structured finance portfolio, or its foolish investments linked to US subprime"

Robert Peston
BBC Business Editor

In addition the firm is set to ask existing stakeholders to provide £258m of new capital through a rights issue at an extraordinary general meeting in mid-July.

This is less than the £300m which B&B said last month it would seek to raise through a rights issue. However, the lender said that the combination of the revised rights issue and TPG's investment would raise about £400m in capital.

Downturn

Britain's biggest buy-to-let lender needs to shore up its finances now that the UK economic climate has deteriorated further and a global credit crunch is restricting borrowing for consumers and lenders.

BBC Business Editor Robert Peston said: "Lending remains under pressure because, like all banks, the cost of raising money for Bradford & Bingley remains high.

"It has suffered further charges on its so-called structured finance portfolio, or its foolish investments linked to US sub-prime."

The sluggish economy is also hurting consumers, forcing more people to fall behind with mortgage repayments.

WHAT IS A RIGHTS ISSUE?
Companies issue extra shares to raise money
They are offered to existing shareholders, usually at a discount to the current share price
Shares are offered in proportion to existing holdings, so if you own 10% of the old shares you are offered 10% of the new ones

B&B said the percentage of customers who are more than three months behind with payments or who have had their homes repossessed had risen from 1.63% to 2.16% over the past four months.

This is far worse than the industry average of just 1.1% in the second half of last year.

The buy-to-let market - which accounts for 60% of the group's total lending - has proved particularly tricky.

Cash call

The call for cash from investors is something of a U-turn for B&B after it denied reports earlier this year that it was planning to raise funds through a rights issue.

"The question you have to ask yourself is: if I had £500 to invest, would I invest it in B&B?"

Richard Hunter
Analyst, Hargreaves Lansdown

Under the revised plans for the rights issue, shareholders will be offered shares at 55p, rather than 82p under the initial plans.

"B&B is now asking less of existing shareholders in terms of a right issue," said Richard Hunter, an analyst at Hargreaves Lansdown.

"The question you have to ask yourself is: if I had £500 to invest, would I invest it in B&B?" he added.

But experts believe B&B's troubles are not as severe as those of Northern Rock and the City watchdog, the Financial Services Authority, has said B&B's shareholders, not its savers, will feel the pain.

Shares in B&B were briefly suspended before the trading statement was released. When trading restarted the shares fell sharply, and in afternoon trade were down 24% at 66.75p. The shares have fallen by more than two-thirds in just the past six months.

Shares in other lenders fell on fears about the health of mortgage industry. HBOS fell 10% and Alliance & Leicester was down 6%.

HBOS issued a statement saying that its own rights issue was fully underwritten and was going to plan.

B&B also announced on Monday that its chief executive, Steven Crawshaw, had stepped down "due to a serious cardiovascular condition".

Rod Kent, executive chairman, said: "This is a disappointing trading update reflecting a more difficult market environment. I understand shareholders' disappointment."

Very bad news although at least it is not (hopefully unless something happens which we don't know about) another Northern Rock. It must be very concerning that share price has fallen so much and that private equity have taken on such a large share of Bradford and Bingley especially as it would be the case that they would strip the company of its assets. So why did they invest in the US subprime sector? :nuts:

Shame it was demutualised as opposed to remain a Building Society which would have been more of an asset when the economy is in a bad state as well as remain in interests of the savers as opposed to shareholders and it would have been one of the largest building socieities as opposed to smallest banks as it is at present.

Val Verde

June 7th, 2008, 09:56 PM

Bad news which I noticed on the BBC website is that Norwich Union will be ending it's Leeds Insurance operations although (unless I am mistaken) it would be retaining a presence in other fields in locations including Leeds. :ohno: http://news.bbc.co.uk/1/hi/business/7439589.stm

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Aviva to cut 1,800 insurance jobs

Aviva was formed from the merger of Norwich Union and CGU in 2000.
Aviva, the owner of Norwich Union, will cut up to 1,800 jobs by 2010 as it restructures its insurance operations.

Aviva called the move "rationalisation" but the Unite union described the job cuts as "brutal".

"This news for staff that their jobs are now in jeopardy is truly devastating," United added.

Norwich Union insurance operations will be shifted away from cities including Glasgow, Leeds, Sheffield, Liverpool, Birmingham, Bristol and Southampton.

Offices in Dundee, Basildon, Ipswich, Exeter, and Worthing will also be affected.

However the firm said other parts of its business would still have a presence in those locations.

The bulk of its insurance business will now operate from seven "centres of excellence" based in Norwich, Perth, Bishopbriggs, Stretford, Manchester, Leicester and Southend.

Andy Case of Unite said job losses had become 'a way of life' for Aviva staff.
"We want to deliver excellent, consistent and reliable customer service with market leading efficiency," said the chief executive of Norwich Union Insurance, Igal Mayer.

"To achieve this we will need to fundamentally simplify our business, consolidating our expertise into seven insurance centres of the future in the UK."

Relocation 'inconceivable'

Aviva was formed from the merger of Norwich Union and CGU in 2000.

It provides savings, investments and insurance products.

Earlier this year, Aviva, announced it was ditching the 200-year-old Norwich Union brand to forge a single identity to compete in international markets.

Unite's deputy secretary, Graham Goddard, said Aviva was "rapidly withdrawing" commitment to local communities and was "isolating themselves in a small number of cities".

"The suggestion that employees will be able to relocate appears to be inconceivable for most of those affected," he added.

Bad news to lose Insurance jobs from Leeds City Centre especially as they are the sort of high paid service sector jobs which Leeds really needs to develop as opposed to lose. Norwich Union do seem like one of those companies who always make job cut after job cut. Do they still occupy space in No1 City Square (which indeed I believe is still commonly known as the Norwich Union building after the building which formerly occupied the same site)?

Also does anyone actually call Norwich Union as Aviva which makes me think of the bus and train operator Arriva. Surely it makes me think of Royal Mail renaming itself as Consignia as being a rather daft and pointless rebranding especially with Norwich Union having such a long history as it does.

STOPGO

June 8th, 2008, 08:21 AM

Wasnt Norwich Union the first to have a call centre in India, I remember some wacky documentry not long back.I agree with the name Aviva sounds more like a new car.

aviator

June 11th, 2008, 03:04 PM

On the face of it, a report on hotel occupancy rates and room yields doesn't sound as though it would make the pulse quicken but this piece in today's YEP addresses some of the concerns, frequently expressed on here, about the expansion in the Leeds hotel market.

Hotels in Yorkshire report 'robust levels' of growth
By Staff Copy

HOTELS in Yorkshire benefited from robust levels of growth in April with rooms yield in Leeds jumping 28.8 per cent to £52.61 compared with £40.85 in the previous year. Occupancy was up 20.6 per cent to 77 per cent.
Sheffield hotels saw a 16.4 per cent rise in rooms yield to £48.91 with occupancy rising to 82.5 per cent compared with 70.7 per cent, a 16.7 per cent increase on the same period in 2007.

York fared less well with rooms yield rising by only 11.5 per cent to £50.71 and occupancy by 11.6 per cent to £78.9.

“These figures for April are not a surprise,” said Robert Barnard, partner for Hotel Consultancy Services at accountants and business advisers PKF.

“With the Easter holiday falling in March this year it was inevitable that the figures would be slower with the exact contrast in April. Some of this year’s Easter school holidays did spill over into April and therefore the strength of the figures is heartening. It is, however, hard to make a true assessment of how the market has fared over the last two months.”

Leeds No.1

June 11th, 2008, 03:52 PM

I've said before that Leeds should exploit Harrogate to fill out it's hotels. There is a hotel shortage in Harrogate, but an oversupply in Leeds. Hotels in Leeds, particularly in North Leeds, should try to take advantage of this; shuttle buses (or discounts on the train for hotels in Horsforth) to the Showground/HIC (as appropriate) would allow these hotels to become viable hotels for conference delegates.

I'm not suprised to see that York hasn't grown as much, as it is already an established tourist centre with steady rates of visitors. I don't know if there is an undersupply in York, but if so, a similar initiative should be set up to what I said for Harrogate so that the hotel industry becomes more efficient.

Leeds must start to embrace its city region in a much stronger way.

Val Verde

June 11th, 2008, 06:22 PM

I agree that the Leeds should certainly embrace its city region in a stronger way with regards to the provision of hotel rooms especially as suburban hotels in the north of Leeds could easily promote their relative proxmity to Harrogate.

Also I noticed these articles from today's YEP: http://www.yorkshireeveningpost.co.uk/news/Tingley-warehouse-closure-hits-100.4172054.jp

Tingley warehouse closure hits 100 jobs

Nearly 100 jobs going at Depuy

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11 June 2008
By Nigel Scott & Tony Gardner
Exclusive
NEARLY 100 jobs are to go after a worldwide medical implants firm announced it is to close its massive distribution warehouse in Leeds.

DePuy International – part of US multi-national Johnson & Johnson – is shifting the work carried out at the site to a new distribution centre in Belgium.

Around 40 staff and 50 temporary workers will go under the closure plan.
The firm's worldwide distribution centre is based at Unit 1, Capitol Boulevard, in the Capitol Park business park at Tingley. It will close by 2010 and the company says it is seeking to reskill and redeploy as many staff as possible.

Resigned

One worker at the site, who did not wish to be named, said: "People have known this was going to happen but were asked to keep quiet about it. People are resigned to it closing down now."

Staff leaving the company at the end of their shift yesterday told the YEP that they had accepted the firm's decision with an air of resignation but said they bore no ill will towards their employer. One said: "We were told about this last year sometime and it came as no surprise then. We were told that it could be Christmas 2009 before the place closes completely so people have time to make other plans if they want to."

The DePuy business in Leeds, which specialises in hip implants, is known to many under its old name of Charles F Thackray Ltd.

The firm still manufactures medical implants at its factory site in St Anthonys Road, Beeston, which is unaffected by the Tingley site closure, as are further offices at the White Rose Centre, where marketing staff are based.

The distribution centre used to be based at Beeston but was moved to Capitol Park several years ago.

A spokesman for the firm confirmed the move and said its UK, French and German distribution operations would be consolidated at the Belgian site.

"We have been working with unions to transfer staff and to reskill them for quite some time," she added. "This is a gradual closure programme and staff have been given plenty of notice."

Well that is bad news to lose something especially in the medical field which would surely be expanding in the near future. Wonder what made them decide Belgium and it must be something that must be prevented. Also I noticed this recurring theme that despite the Credit Crunch office rent in Leeds is higher than Los Angeles, Munich and Barcelona but it is not on their website. It says that the average rent is £26 per sq ft which puts Leeds ahead of many other large global cities and that this figure could easily reach £30 per sq ft by 2010.

So just why is it that major developments such as Wellington Place have been so slow at coming on stream as surely in my view having such high costs for office would make Leeds less competitive against cities abroad especially as the likes of LA, Barcelona and Munich have great big skyscraper offices such as the Library Tower and Nakatomi Plaza / Fox Plaza (the skyscraper seen in Die Hard) in LA, the Torre Agbar in Barcelona and the BMW Headquarters in Munich wheras the size of office developments are still much smaller in Leeds compared with those cities mentioned. I guess it is the factors of the UK property bubble which are responsible for Leeds office prices being so high as well as the lack of office development over recent years with extensive apartment developments and even existing offices (eg: K2 or Park Plaza Towers) having been converted into apartments or hotels.

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Leeds No.1

June 11th, 2008, 06:40 PM

Especially considering that once you get to Alwoodley from Central Leeds you're already 2/3rds of the way to Harrogate anyway; in the car in good traffic you can be on the south side of Harrogate (for the showground) in 10 minutes, 15 to HIC. Extra 5-10 minutes at peak time, but basically you can easily be there in less than 30 minutes regardless of the time of day. At peak time it could take longer to get from Alwoodley to a conference centre in South Central Leeds than it would to Harrogate, just to illustrate the situation.

I think it must be to do with the people involved being preoccupied with other projects at the moment? Demand is high in Leeds so I can't see any other explanation really. When will the next phase at Wellington Place get going?

Fred2

June 11th, 2008, 09:53 PM

Especially considering that once you get to Alwoodley from Central Leeds you're already 2/3rds of the way to Harrogate anyway;

Not so. Alwoodley Gates 5 miles from Leeds and 10 miles from Harrogate. Beware of the snarl up round the Grammar School set to increase from September. Incidentally where are all the hotels in north Leeds ? Golden Acre, Bramhope and a few guest houses at Headingley?

Leeds No.1

June 11th, 2008, 11:02 PM

Oh my mistake yes I meant to say 1/3.

Valid point about the Grammar School but then I don't think theres that much change of major increases in congestion because if you go northwards it's an open road- no lights or anything to congest the road further, and going south opens into a dual carriageway.

I don't know so much about hotels (and B&Bs) in North Leeds, but for the ones that exist, particularly around Alwoodley and Horsforth, they can take advantage of it. And I suppose if the improvements come to Leeds-Harrogate transport, particularly rail, then Central Leeds could be in on it. It's half an hour from Leeds Station to Harrogate Station; it can take half an hour to get across Harrogate at peak time. I suppose this is what I'm saying about the city region though- Leeds must embrace it by improving the transport links and therefore cutting these pyschological divides of Harrogate in North Yorkshire and Leeds in West Yorkshire; in reality this divide is meaningless. The same can be said of York and Skipton; these places are no longer independent, their links with Leeds are stronger than most people percieve.

Harrogate recently lost its second largest conference because they said although Harrogate had performed well, they were now limited through hotel space and transport. I believe that people see Harrogate as an independent place; if there are no rooms in Harrogate and transport is poor in Harrogate, thats it. Leeds isn't even considered as an 'overflow' so to speak. I believe that in Greater Manchester, if a conference were to take place in one of the satellite towns, Manchester could be used as a centre where people would stay and travel to, and travel to the conference daily. This is what the Leeds City Region, HIC, Metro etc really need to get to grips with.

Suburban Knight

June 12th, 2008, 03:29 PM

Incidentally where are all the hotels in north Leeds ? Golden Acre, Bramhope and a few guest houses at Headingley?

There are quite a lot of guest houses and hotels in Headingley, both near the cricket ground, along the Otley Road and around the university too. As for elsewhere in N. Leeds, don't forget the Ramada at Seacroft and the Clock Hotel on Roundhay Road.

Benney

June 12th, 2008, 09:09 PM

Aviva is the parent company of Norwich Union and is based in Canada

Fred2

June 12th, 2008, 11:08 PM

There are quite a lot of guest houses and hotels in Headingley, both near the cricket ground, along the Otley Road and around the university too. As for elsewhere in N. Leeds, don't forget the Ramada at Seacroft and the Clock Hotel on Roundhay Road.

Well I don't think the guest houses you mention, even if there are as many as you say (and the Clock Hotel seems to me to be little more than a guest house), would prove particularly attractive to someone attending a conference or exhibition in Harrogate.

Leeds No.1

June 12th, 2008, 11:40 PM

Fred2

June 13th, 2008, 10:35 AM

Well actually no, lots of people stay in guest houses when attending conferences. There are quite literally hundreds of guest houses and B&Bs in Harrogate, and all of them of course are rely on the conference industry. The length of Kings Road is basically B&Bs/Guest Houses. More people probably stay in guest houses in total than in the hotels.

Staying in a guest houses in Harrogate within a short walking distance of the venues is rather a different thing than staying in a guest house in Leeds which might mean at least a half hour or more commute in traffic.

Leeds No.1

June 13th, 2008, 12:10 PM

Why does it matter if its a guest house or hotel though? If people already stay in hotels/B&Bs outside of Harrogate, why wouldn't they stay in Guest Houses in North Leeds?

It would take you longer to get from some of the hotels on the edge of Harrogate/Knaresborough at peak time than it would from Alwoodley- especially places like Rudding Park where it can take you 15 minutes to get up the A661. 20 mins from Alwoodley Gates-Central Harrogate.

Val Verde

June 14th, 2008, 09:53 PM

Some good news and bad news from today's YEP regarding jobs. First the good news: http://www.yorkshireeveningpost.co.uk/business-news/Grocer-delivers-jobs-boost-at.4181450.jp

http://www.manchesterconfidential.co.uk/images/20060605-ocado1.jpg

Grocer delivers jobs boost at new park

CONSTRUCTION work has started on a major business park close to junction 27 of the M62 following the decision of a major internet grocery retailer to locate to the outskirts of Leeds.
Ocado, which sells Waitrose own-label food and currently has over a million registered customers in the UK, will anchor the development at Birstall, which is expected to create up to 400 jobs in total.

Developer Eshton Gregory announced recently that it had received planning permission for the 66,000 sq ft business park on the eight-acre site off Gelderd Road. The Ocado building is on track for completion in August.

Eshton Gregory is a joint venture between Leeds-based Gregory Group and Skipton-based developer Eshton Ltd.

The Gregory Group is one of Yorkshire’s busiest developers and has been responsible for transforming a number of sites across the north of England. Current projects include a £50m redevelopment of Halifax town centre and the completion of a £40m retail park at Foss Islands in York.

Improvements

The Birstall development, to be known as Springwell 27, includes a 10,500 sq ft distribution unit for Ocado as well as 55,500 sq ft of industrial accommodation available in units from 2,000 to 30,000 sq ft aimed at the owner-occupier market.

The construction work also includes significant highway improvements to the Gelderd Road/Dark Lane junction along with the widening of Dark Lane itself.

The Ocado facility will be one of six regional distribution centres all serviced from a central hub in Hertfordshire.

Although the primary catchment will be servicing customer orders in West Yorkshire, the site will also distribute orders to the North Yorkshire and Derbyshire regions (what about South Yorkshire? :uh:). Ocado’s decision to locate to Birstall and in particular Springwell 27 has been described as a major coup for Kirklees Council.

David Brimblecombe, managing director of the Gregory Group, explained: “We have worked in partnership with Kirklees who have been tremendously supportive in our efforts to try to accommodate this important inward investor, bringing with it significant job opportunities.”

Leeds-based MI Construction has been appointed preferred contractor and the Leeds office of CNP is project managing the £7.5m scheme on behalf of the developer. Even before a brick has been laid, a number of the industrial units are already under offer.

Gregory’s development director, Richard Tovey, said: “There is a distinct shortage of industrial accommodation in the area and Springwell 27 has so far attracted very significant occupier interest.”

Joint agents appointed on the scheme are the Leeds offices of Carter Jonas and Dove Haigh Phillips. Gordons Solicitors are acting for Eshton Gregory in the acquisitions, lettings and sales.

So how come do Waitrose not just deliver direct from their nearest stores as Sainsburys, ASDA and Tesco do by having this Ocado service where there are central warehouses instead and how come do Waitrose have this seperate Ocado brand name as opposed to just Waitrose. Seems a bit strange to add extra costs through this channel. Anyway at least it will be good to see new job opportunites as well Waitrose making further expansion in Yorkshire (which didn't even have a presence up here just five years ago) although it would inevitably cause even more congestion at the heavily clogged up Gildersome Interchange of J27 of the M62 where it meets with the A62, A650 and M621 as well as the huge Birstall Retail Park amongst other nearby industrial estates.

And now the bad news: http://www.yorkshireeveningpost.co.uk/news/39Worse--to-come39-as.4184977.jp

'Worse to come' as estate agent goes bust

By SOPHIE HAZAN
A LEEDS estate agent has gone bust as one property expert warns that the number of houses on the market has more than halved.

Park Square Agencies Ltd, which owns franchises of Halifax estate agents at Oakwood and Cross Gates, shut on Monday.

At least 14 people were made redundant. Two others were let go in May.

Owners Diane and Ian Park say they are devastated at losing the business but had no choice after falling into debt.

They will be the first of many, predicted David Pank, director of Manning Stainton who has been in the business for 25 years.

The biggest problem is that the number of houses currently on the market in Leeds is down by about 55 per cent, he said.

"Many people have come into estate agency under-capitalised," said Mr Pank.

"The news reports that sales are down nationally is reality.

"You need to be in a position to plough money into your business. It is going to be tough and it will become clear who has the biggest pockets."

Typically an estate agent will "bill out" – exchange contract and get paid – on a third of its properties that are sold "subject to contract" (STC).

A quick glance at online property website Right Move shows that those estate agents publishing STCs have few on their books.

This is the third knock the housing market has had in the last 25 years.

Mr Pank predicted that the latest downturn would last 12 months to two years and naturally not everyone could survive.

"It is going to be a horrible time but these things are cyclical," he added.

Mrs Park, 48, a Calderdale councillor (Elland, Lib Dem) and former HBOS employee, said that the reality is that people are "running scared".

"We had good stock, a lot of stock at the right price," she said.

"If something had been on the market for a while we would reduce the price to reflect the market. But we were getting low offers, ridiculous offers.

"People are running scared at the moment and it is having a knock-on effect with everything. In the last two weeks it's gone very very quiet in terms of people wanting to get their homes valued.

"The sales pipeline has ground to a halt. It takes on average three months for a sale to complete and we had very little in the pipeline during that time. If we had carried on we would have been trading insolvently.

"This time last year we didn't have any indication that this would happen."

468, Roundhay Road, Oakwood opened in November; 54, Austhorpe Road, Cross Gates opened in December.

Park Square Agencies Ltd, based in Elland, Halifax, will be placed into liquidation on June 27. Customers can call Halifax on 01422 391 355 for more information.

Hendy's estate agents closed its West Park branch last August.

Company director Clare Garvey said that the credit crunch had been "in the wind" but the decision had at that time been down to "staffing problems".

So could this be the first of several estate agent failures in light of the credit crunch as it certainly is the case that the housing market is in a clear downturn at the moment. Surely though as the property market does go through cycles so you would have thought they would have saved money for an economic downturn to lower the risk of them going bust. Are Halifax taking on any outstanding properties and sales / purchases through this failed estate agency?

Suburban Knight

June 16th, 2008, 05:36 PM

Waitrose doesn't do home delivery from its own stores because, particularly in the North, it doesn't have a great number of stores and Waitrose stores in general tend to be much smaller than Tesco/Sainsburys stores as they are aimed at a niche market.

From their point of view it's much more efficient to operate from a distribution warehouse rather than a supermarket - in which you'd get a great deal more congestion from shoppers and instore deliveries.

richardnash

June 20th, 2008, 12:58 AM

Electric_City

June 20th, 2008, 10:19 AM

Welcome to the forum, Richard!

Yes, I saw the piece on Look North too. What struck me though, was that the 'expert' was saying that more people were being forced to give up home ownership, thus causing an increase in the number of people wanting rented accommodation.

If this is the case, then, despite what some have been saying on this forum, surely the buy-to-let market should remain buoyant? :dunno:

pault

June 21st, 2008, 01:43 PM

Did anyone see Look North tonight reporting on people who had sold to rent. There was an idiotic girl on who had clearly extended herself, had her home repossessed and ended up having to rent (no longer able to use her own kitchen to prepare food!). It seems like stupid people like this end up painting a bad impression of the Leeds economy in general whereas most people are able to cope with the slight downturn.

I think a number of owner occupiers in the city sold their apartments at the end of last year, predicting a possible downturn in the market, specifically in the city centre. Some moved to the suburbs but many others rented in the city centre, they enjoyed living in the city centre and realised that rent could be half the price of a mortgage for the same property. In uncertain economic times like this the media always like to go for the sensationalist angle, I suspect this person had actually chosed to do this, and was actually quite shrewd! This situation will help the buy-to-let market but could be offset by new schemes completing over the next few years.

aviator

June 30th, 2008, 01:53 PM

Check this out from Property Week (my emphasis in bold):

Leeds City Council plans mega HQ

27.06.08

By Jennifer Rigby

DTZ appointed to advise on requirement of more than 250,000 sq ft

Leeds City Council is drawing up plans to consolidate its offices under one roof, in a move that could lead to a search for more than 250,000 sq ft.

The council – one of the UK’s largest local authority employers – has appointed DTZ to advise on its property plan, entitled, ‘City Centre Office Accommodation Strategy’.

A spokesman said: ‘We are looking at all of our property to see whether there are efficiencies in some consolidation.’

Requirements of this type can liven up city office markets as well as kick-start regeneration, a side effect the council said it hoped would occur in Leeds.

It currently occupies 19 offices in the city centre, including a presence in the Civic Hall and Leeds Town Hall, which it is unlikely to relinquish, representing around 473,000 sq ft of office space and 4,000 staff.

The spokesman said: ‘There are some buildings we could not or would not wish to vacate, such as the Civic Hall and Town Hall. We are unlikely to ever wish to leave them, but it is possible that we may look at how we use them.’

He said there were other buildings that the council might not wish to leave, and that DTZ would now look at all of the council’s properties to see where it could vacate, and how economically viable selling buildings or assigning leases would be.

The requirement could be as large as 270,000 sq ft, and the council has a time frame of around four years to complete one of the largest prelets ever in the region.

As part of the plans, the council is also keen that its new office complex has a regeneration element.

The spokesman said: ‘We would prefer to look at a regeneration site on the city centre rim, probably a brownfield site. It wouldn’t necessarily be the main driver but it is an objective.’

The council also wants to modernise its workplaces and bring its offices up to exemplary sustainable standards.

The spokesman said: ‘Our old buildings do not lend themselves to a modern way of working. We will have to promote best modern practice, for example, flexible working, and probably adopt a new way of working with our space.’

It's interesting that the council is looking for a brownfield site. I suppose that this aim is driven partly by a pragmatic desire to obtain best value, partly by the recognition that it might take many years to kickstart a development of this size in the city centre core, and partly by the realisation that the council using its development muscle in this way can help accelerate activity on sites such as Lateral and Wellington Place, or kickstart development on moribund sites such as Whitehall Riverside.

di Livio

June 30th, 2008, 04:49 PM

Hasta la vista...(please)

http://farm3.static.flickr.com/2324/2234378811_675db658ca.jpg?v=0

LeedsLad

June 30th, 2008, 09:13 PM

I was about to say the same! Or at least "traiga en el reclad" (bring on the reclad)

Val Verde

July 5th, 2008, 01:28 AM

Bad news on the bankruptcies of Macfarlane Transport and City Lofts although typical losers in light of the ever rising fuel price and property downturn respecivly. http://www.yorkshireeveningpost.co.uk/news/300-jobs-lost-as-Leeds.4252827.jp

300 jobs lost as Leeds transport firm goes bust

http://editorial.jpress.co.uk/web/Upload/LEED//TH1_37200842macfarlane.jpg
Around 300 jobs are going at Macfarlane

Date: 03 July 2008
By Nigel Scott and Suzanne McTaggart
A LEEDS transport firm has gone bust with the loss of around 300 jobs.
Macfarlane Transport is a victim of spiralling fuel costs which have left the £20m business unsustainable.
Joint administrators from accountants KPMG were appointed on Wednesday at the request of the firm's directors but were unable to sell the business as a going concern. It has now ceased trading.
Administrator Richard Fleming said: "It's very unfortunate that this long established business has been unable to survive and that large-scale redundancies will, inevitably, be a result."
He said the business had been hit by rising fuel prices and a competitive marketplace which had put its margins "under unsustainable pressure".
Every 1p increase in the price of fuel adds £600 a year to the cost of driving a lorry, according to the Road Haulage Association (RHA). The cost of diesel is around £1.30 a litre.
It is only two years since Macfarlane Transport, based on land off Pontefract Lane, Cross Green, was rescued from administration by Yorkshire entrepreneur Stephen Cooke.
Driver Roland Stephenson, 49, of Castleford, has worked there full-time since 2006.
He said: "Everybody's upset but it's part and parcel of life these days. This is the second time this has happened to me and you've got to manage somehow."
Mr Stephenson said drivers were aware of problems last week when payments were delayed before they were paid in cash in two instalments.
He said in recent weeks many had been sent home early because there has been "no work to do".
Margaret Edmunds, Yorkshire area manager for the RHA, said: "It's very depressing. It's another nail in the coffin for the industry.
"We're having difficulty passing fuel costs on to customers because they are struggling as well. It's going to get worse unless we get some Government action."
Leeds Chamber of Commerce executive director, Ian Williams, said: "This is one of the first high-profile businesses in the haulage sector that's gone under but underlines how tough things are at the moment in the transport industry."
Macfarlane was founded in 1978 by brothers Ian and Gordon who sold it in a management buyout in May 2004.
When the company went into administration in February, 2006, it had debts of almost £5m, blamed on the loss of a key customer.
Meanwhile, Gordon Brown gave his strongest signal yet that the Government will not go ahead with the planned 2p-a-litre increase in fuel duty due in the autumn.
Giving evidence to the Commons Liaison Committee, the Prime Minister said: "It is clearly a matter that will be looked at very, very carefully over the next few weeks."
nigel.scott@ypn.co.uk

Well the wider haulage industry does need some support in not going bust in light of rising fuel prices as surely the loss of that would bring huge negative ramifications. Shame to lose Macfarlane especially as it hasn't been that long since they moved to the lower Aire Valley area.

Leeds flats firm in administration

http://farm1.static.flickr.com/197/519940916_a3df644949.jpg?v=0
City Lofts Group Limited appoint administrators - Picture of probably their most high profile Leeds project of Roberts Wharf although they were of course more notable for the City Lofts tower in Sheffield which will be Sheffields first 100m plus building.

04 July 2008
By Katie Baldwin
A Yorkshire-based apartment developer has gone into administration.

The directors of Harrogate-based City Lofts Group Limited (CLG) have appointed Ernst and Young as administrators of the firm and main subsidiary City Lofts Developments Limited.

CLG has apartments in UK cities, including the 198-apartment complex Roberts Wharf – formerly Bank Mills – at Clarence Dock in Leeds.

Earlier this week the YEP reported that around 250 of its unsold properties around the country had been placed into receivership by Bank of Scotland (BoS) Corporate, part of Britain's biggest mortgage lender HBOS.

Among those were all unsold apartments at the Leeds development.

The firm said it was "part of a restructuring process which City Lofts has been pursuing in light of the extremely difficult market condition".

The receivership process - which is believed to affect no more than nine Leeds flats - was separate to the moves to appoint administrators.

Yesterday (fri], a spokeswoman for Ernst and Young said: "The directors of City Lofts Group Limited (CLG) have today appointed Maggie Mills, Angela Swarbrick and Charles King, partners and directors of Ernst & Young LLP, as administrators of CLG.

"An application to court has also been made today for the appointment of the same individuals as administrators of CLG's wholly-owned subsidiary, City Loft Developments Limited (CLD)."

The spokeswoman added that the administrators would review the position of the two companies with the intention that developments under construction, apart from those in the hands of receivers, would continue unaffected.

Individual operating companies carrying out current development projects have not been put in administration.

City Lofts is the latest property company to be affected by the slump in the housing market.

And this week Leeds transport firm Macfarlane Transport went bust due to spiralling fuel costs. Around 300 jobs will be lost.

How many flats at Roberts Wharf were still unsold as it does look a very nice development and how will other developers ride out the economic downturn? Was there any particular reason why they went bust first ahead of other developers and was it a case they had worse finance? Did they have any other Leeds projects other than Roberts Wharf?

Electric_City

July 5th, 2008, 11:51 AM

According to the Yorkshire Post yesterday, there were only nine apartments unsold at Roberts Wharf in Leeds. These nine apartments have now gone into receivership, along with other developments, the bulk of which are thought to be in Liverpool, Salford, Cardiff, Newcastle and Nottingham.

I'm not exactly sure how many apartments were in the Roberts Wharf development, but I think it was just under 200 in total. So not a huge impact in Leeds, then.

Val Verde

July 9th, 2008, 08:06 PM

The Big Six Banks of HBOS, Abbey, Barclays, Lloyds TSB, Royal Bank of Scotland and HSBC have agreed to purchase a large chunk of Bradford and Bingley after their shareprice has collapsed to just 34p. :ohno: http://ukpress.google.com/article/ALeqM5jPd7q5KcgfTFYv1lmqJK1Mx-MSdg

Big banks 'in B&B bailout bid'
16 hours ago

Britain's high street banks have agreed to buy a large chunk of shares to rescue troubled Bradford & Bingley, it has been reported.

The buy-to-let lender's share price dropped to 34p on Tuesday, down from a high of 539p in March 2006, prompting fears the stock is now worthless.

The bank wanted to raise £400 million in a rights issue, selling shares to shareholders at 55p. But the heavy losses may leave the underwriters forced to buy the shares.

The Daily Mail reports that the six high street banks, HBOS, Abbey, Barclays, Lloyds TSB, Royal Bank of Scotland and HSBC, stepped in after being leaned on by the Financial Services Authority.

They have promised to buy the shares which Bradford & Bingley's main underwriters, the American investment banks UBS and Citigroup, do not buy, a procedure known as "sub-underwriting". The "Big Six" banks could end up owning at least 30% of their rival.

Analysts do not believe the bank is heading for a Northern Rock-style crisis. Savers would in any event have the first £35,000 of deposits protected by the Government.

B&B has been hit hard by the mortgage troubles caused by the credit crunch and the subsequent housing market woes.

It has reported mounting arrears within its buy-to-let borrowing base as many property owners struggle with repayments.

One City firm cut its target price for the bank to "zero" on Tuesday in the wake of its credit rating downgrade last week by Moody's and the decision of private equity firm TPG to withdraw its £179 million investment.

A spokesman for Lloyds TSB said: "We were one of the sub-underwriters for the original deal, that remains the case as part of the restructured deal."

Bad stuff for a building society which imo should have never demutualised although they should hopefully not fold just why couldn't they have been more competent? Should be one to keep updated on this thread considering they are such a large employer in West Yorkshire.

Val Verde

July 28th, 2008, 03:24 PM

Article on the BBC website that the Fox Biscuits factory in Batley could be at risk of closure as their owner's Northern Foods are looking to merge the operations of the Batley factory with that in Uttoxeter in Staffordshire (with only one of the two locations being retained for an all new state of the art facility for Fox's). http://news.bbc.co.uk/1/hi/england/bradford/7528272.stm

http://upload.wikimedia.org/wikipedia/en/5/5e/Fox%27s_logo.jpg

Closure plan for biscuit factory
Northern Foods, the maker of Fox's biscuits, has announced plans to invest £40m in a new factory, but it is closing one of its current sites.

Fox's has factories in Batley, West Yorkshire and Uttoxeter, Staffordshire, which will be combined.

Northern Foods said a new "super site" would be created either in Batley or Uttoxeter by 2011, but it had not yet decided which site would close.

Staff at the factory which is closed will be offered jobs at the new site.

A period of consultation with regional development agencies, local councils and unions has begun and a final decision will be announced in early 2009, a spokeswoman said.

'Difficult period'

The Batley factory employs 1,280 people while the Uttoxeter site has 950 staff.

Northern Foods said both factories were "relatively old" and needed "significant investment".

Fox's factory at Kirkham, Lancashire, will remain open.

Northern Foods chief executive Stefan Barden said: "We intend to invest in a state-of-the-art biscuits factory for the business, the best in the UK, specially designed to manufacture Fox's great quality biscuits efficiently.

"The resulting cost savings will ensure that even more money is available to invest in and grow the business, securing its future for yet another generation.

"We appreciate that this will be a difficult period for our loyal and hardworking employees; excitement will be mixed with apprehension and we will ensure that they are kept fully informed of any and all developments during the project."

Would be very bad news to lose Fox Biscuits from their historic home of Batley. Surely Kirklees Council, neighbouring local authorities, Yorkshire Forward etc must do everything to retain this large employer and I can't think of anywhere within Batley itself where a new factory would be suitable (especially as I assume it must have a large land area and be located next to a motorway interchange).

I guess if it was to stay in the West Yorkshire area then it would be located away from Batley on one of the many business parks and trading estates which run along the M1 and M62 near Leeds, Bradford and Wakefield and could Fox's perhaps relocate to the Aire Valley development area near the soon to open J45 of the M1 perhaps considering there must surely be some major industrial developments coming on stream there when the A63 East Leeds Link Road finally opens. Whilst it would be bad in some quarters to see Fox's leave Batley surely it would be better locating it on the M1 or M62 corridors in the surrounding West Yorkshire conurbation then moving it all the way down to Uttoxeter (which is a small market town and surely would have a smaller pool of labour compared with West Yorkshire).

Val Verde

July 29th, 2008, 08:48 PM

News today of a hat trick of lettings at the recently refurbished Fountains House on South Parade in the Office Quarter of Leeds City Centre:

New lease of life for Leeds office block

AN art deco building in Leeds city centre has secured a hat trick of lettings following a £5m redevelopment.
Fountains House on South Parade, which dates back to the 1930s, received a makeover earlier this year from Burford Park Estates.
Commercial law firm Beachcroft has taken 11,500 sq ft of space on the ground, first and second floors of the 35,000 sq ft Grade A offices.
Accountancy firm Lawsco Ltd is now occupying the seventh floor (2,559 sq ft) and marketing c company Click Angel is in the lower ground floor (1,903 sq ft).

Charles Cudworth of Burford Park Estates said: "Fountain House has only recently been launched back on to the market but these swift lettings come as no surprise.
"The building offers a superb location on the northern side of South Parade within the centre of the city's prime commercial and financial core.

"Its aesthetic appeal, art deco styling and high quality office space make it a unique property that fills a gap in the Leeds market.
"Inquiries are very promising with strong interest in the remaining space and we expect further lettings shortly."

The redevelopment included the installation of an entire new penthouse office providing impressive views across the city skyline.
It has brought back to life what was a fairly anonymous building by restoring its marble and Portland stone facade. The interiors have been refurbished to the highest specification.

Joint agents for the property are Lambert Smith Hampton (LSH) and CBRE. LSH is a leading property consultancy focused on the UK and Ireland.

On the otherside of the coin however I noticed the Clarient Services Chemical Factory in Horsforth near the Ring Road, Canal and Airedale Railway Line could be at risk of closure: http://news.bbc.co.uk/1/hi/england/west_yorkshire/7530865.stm

Chemical company facing closure
An international chemical company based in West Yorkshire is facing closure, bosses have announced.

Clariant Services UK, which employs 21,500 people worldwide, revealed the site on Calverley Lane in Horsforth, Leeds, could close to "reduce costs".

A spokesman said a decision would be made after a period of consultation in response to "structural changes" in the textile, leather and paper industries.

Clariant said talks with staff and unions would take place soon.

It is not yet known how many jobs would be axed if the plant closed.

Leeds No.1

July 31st, 2008, 07:33 PM

http://www.yorkshirepost.co.uk/businessnews/Buoyant-Leeds-defies-national-office.4343860.jp

Buoyant Leeds defies national office trend

THE Leeds city-centre office market is so far defying the national trend which has seen office space take-up drop 12 per cent, according to research by property consultants.
While much of the UK office occupier market appears to be entering a downturn, the Leeds city-centre market remains buoyant, said the King Sturge Leeds-based office agency team.

A steady level of deals is still being made, with a take-up of 265,000 sq ft in the first half of 2008 on schedule to hit the 10-yearly average of 550,000 sq ft.

Richard Thornton, King Sturge partner, said: "Overall, there are mixed results for the UK, but the Leeds city centre market currently remains buoyant with deals being done, particularly among the financial and legal sectors. The city compares well against falling take up across much of the rest of the UK.

"Given the overall picture, we are very encouraged by results in central Leeds for the first half of the year. We remain cautious about how the rest of the year will perform but there are a number of large active requirements in the market with some very high-quality office space on offer so there is room for optimism."

The findings are backed by a study from Savills, which said the city had a strong half year with take-up currently standing at 252,262 sq ft, 5 per cent up on the half-year average over the last five years of 239,821 sq ft. However, this was 6 per cent down on the same period in 2007.

Savills, which compiled the Leeds office market bulletin, found that 90 per cent of office deals completed in Leeds in the first half of 2008 were in the sub-15,000 sq ft category, reflecting the high level of local occupiers taking space.

jrb

August 6th, 2008, 12:29 AM

Big news if Crains is correct.

JP Morgan 50,000 sq ft requirement.

Article on June the 30th.

Manchester is understood to be competing against Bristol, Birmingham, Leeds and Glasgow and a shortlist of two candidates is expected to be drawn up in a few weeks.

Today.

Jones Lang LaSalle thought to be part of Operation Bluebird
By Simon Binns

The Manchester office of Jones Lang LaSalle is understood to have been recruited by MIDAS and Manchester City Council to help on Operation Bluebird — the secret project revealed by Crain’s which is tasked with luring US financial powerhouse JP Morgan to the city.

Manchester is understood to have made the final shortlist of two possible locations, along with Leeds.

Sources indicated that JP Morgan wants to make a quick decision on its choice of city, and could even begin moving into its new office space at the start of 2009.

Argent’s Piccadilly Place and Allied London’s Spinningfields and Ask Developments’ First Street are though to be frontrunners for the 50,000 sq ft requirement.

Jones Lang LaSalle declined to comment.

Leeds No.1

August 6th, 2008, 12:38 AM

Where is 50,000sq. ft of office space in Leeds at the moment- Clarence Dock's Livingstone House is the only place I can think of?

Val Verde

August 6th, 2008, 12:44 AM

Big news and surprised not to see the possible location of an office for JP Morgan mentioned in the Leeds media. Should certainly be a major coup for Leeds if it gets this significant JP Morgan presence.

As for location I presume they would have a specially newly built office for them perhaps as part of Wellington Place, maybe City Square House or even Whitehall Riverside? How big in terms of an office building would 50,000 sq ft be roughly in terms of storeys?

Certainly Leeds City Council, Yorkshire Forward, the owners of those developments I mentioned and other organisations attracting inward investment to the city should do a lot to encourage JP Morgan to have an office in Leeds especially as to have more such relocations would certainly encourage more offices to open in Leeds in the future.

jrb

August 6th, 2008, 12:59 AM

Where is 50,000sq. ft of office space in Leeds at the moment- Clarence Dock's Livingstone House is the only place I can think of?

Just to let you know Leeds No1, Manchester has a few 50,000+ sq ft office block's ready and waiting. That doesn't automatically mean Manchester will win though.

Obviously I can't confirm that the story is correct, but Crains has built up a pretty good network/contacts in Manchester over the last six months and is normally spot on, so I wouldn't dismiss that story.

Who ever wins, it will be a great coup. Good luck to both cities. :)

Leeds No.1

August 6th, 2008, 01:41 AM

Leeds has a good network and strong support for businesses wanting to come into the city. But the lack of office space in Leeds is evident. I would be suprised if they come to Leeds, although glad.

For comparison, Livingstone House is 70 something sq. ft. But this is not really in the financial districts at all- not sure what they'll make of it. Wellington Place I'd say is out because they want to move in in 2009 by the looks of it. Unless there are empty blocks at Wellington Place? Can't think of any other office buildings that are big enough and ready to be occupied. How big is City Point?

wiggleyleeds

August 6th, 2008, 02:15 AM

it wont be leeds.

it will be the city that has been extensively wooing them, and probably with sweetners too. Good on manchester. Shame on leeds for lacking the ability to be more pro active.

Leeds No.1

August 6th, 2008, 03:17 AM

M€trolink

August 6th, 2008, 08:09 AM

Why isn't Leeds being pro-active? We've only just heard about this issue so who knows what people have been doing to attract them. I don't think Leeds will get it, but that's only due to lack of available space rather than the support the city offers etc.

Serious question - why is there a lack of office space available in Leeds?

Surely if there is sufficient demand, builders would have been building speculatively during the boom years (just gone)???

aviator

August 6th, 2008, 11:56 AM

Serious question - why is there a lack of office space available in Leeds?

Surely if there is sufficient demand, builders would have been building speculatively during the boom years (just gone)???

Nope, not at all. A recurring theme in the annual city economy handbook that Leeds City Council produces is the mismatch between demand and supply, along with the reluctance of developers to build speculatively.

Two recent exceptions are the Mint on Sweet Street and HBG's Lateral on Whitehall Road. Both of these buildings are just about complete so would certainly be ready for occupants by the end of this year, though I think I read somewhere that Lateral already had a tenant.

Radley

August 6th, 2008, 06:29 PM

from www.placenorthwest.co.uk

JLL retained to find a home for Operation Bluebird
5 August 2008, 09:58

The mysterious financial services inward investor seeking 100,000 sq ft offices in Manchester city centre under Operation Bluebird has appointed Jones Lang LaSalle to help with its search.

The unknown prospective occupier, rumoured to be JP Morgan or Goldman Sachs among others, has shortlisted Manchester and Leeds as the two UK cities it is targeting.

Representatives from the acquiring party viewed buildings in Leeds last week and are expected in Manchester this week to look at its product.

The two shortlisted cities beat Bristol, Birmingham and Liverpool to make the final round.

JLL's appointment follows cost appraisal work by Deloitte. Manchester's inward investment agency Midas is leading the campaign to win the deal on the city's behalf. It would be arguably the most significant newcomer to the city since the Bank of New York into Argent's One Piccadilly several years ago.

Inevitably, Manchester is many local agents' favourite, with its stronger brand, transatlantic flights and bigger population all putting it ahead of Leeds.

However, stock is short for the occupation date of summer 2009; only Argent/Carlyle's Piccadilly Place and Ask Developments' No 1 First Street could easily handle the requirement. Allied London's Spinningfields may have missed the boat as the latest office building there, 3 Hardman Street, is all but fully let. A few agents say the requirement could be accommodated with some re-jigging of the tenants in Spinningfields.

TonyYeboah

August 6th, 2008, 06:48 PM

jrb

August 6th, 2008, 07:21 PM

The airport will probably tip things in Manc's favour

That was another government edict wasn't it? Instead of letting each city develop an airport according to the demand for air travel in and out of the place, the government decided the North needed just one big airport and stuck it in Manchester

I only know this because of a DJ who used to bang on about it years ago, Jim something or other

Jimmy Savile?

On a serious note. Nothing is 100% guaranteed. There's no reason why Leeds can't trump Manchester for this relocation. Leeds saw off Glasgow, Birmingham and Liverpool. So Manchester could be next. Obviously Leeds has put in a very good pitch, just like Manchester to get this far. It's not only about the airport. There's numerous other factors that will determine who JP Morgan finally pick.

TonyYeboah

August 6th, 2008, 07:48 PM

LeedsLad

August 6th, 2008, 08:04 PM

Loads of space up at Leeds Valley Park/Thorpe Park built and ready to go. Also what about the new black one by the canal?

jrb

August 6th, 2008, 08:34 PM

Jim Reeves maybe? I dunno

Without the airport, things would be more equal. But if JP Morgan's transatlantic staff need to come to their northern England branch they're gonna have to go to Manc anyway, even if the office is in Leeds

Anyways, we'll see.

How far is Leeds/Bradford airport away? You can access Manchester City Centre from Manchester Airport in 20 minutes depending on traffic. Leeds does have better access to the London(another big factor) via the train and Motorway though. I think rent and available workforce will play a big factor as well. I think Manchester will get it, but I wouldn't be surprised if it didn't. Leeds has a very strong banking and financial sector/history.

Leeds No.1

August 6th, 2008, 08:42 PM

Inevitably, Manchester is many local agents' favourite, with its stronger brand, transatlantic flights and bigger population all putting it ahead of Leeds.

Well duh. Of course it'll be local agents' favourite in Manchester- I'm sure the same can be said of Leeds' agents. And population isn't even an argument when it's so close and statistics claim different things for the same cities.

Leeds' airport is also about 20 minutes from Central Leeds.

LeedsLad

August 6th, 2008, 08:50 PM

I don't think the airport plays a part - it is an hour by car or train from the airport to Leeds... Or alternatively you can fly into Heathrow or Amsterdam and fly into Leeds anyway.

Leeds No.1

August 6th, 2008, 08:51 PM

An hour?! To Manchester airport you mean?

LeedsLad

August 6th, 2008, 08:57 PM

Yes sorry

Alexi Lalas

August 6th, 2008, 08:59 PM

An hour?! To Manchester airport you mean?

Well Duh! :lol:

M€trolink

August 7th, 2008, 12:36 AM

Nope, not at all. A recurring theme in the annual city economy handbook that Leeds City Council produces is the mismatch between demand and supply, along with the reluctance of developers to build speculatively.

Why?

XEROX1

August 7th, 2008, 03:24 PM

You know Bournemouth also has a JP branch, im sure if we loose it wont be because of the airport. Im sure Leeds would have a great chance. It favours well as the most important finacial and legal centre outside of London.

Source: www.leedslegal.co.uk

Super Leads

August 9th, 2008, 11:43 AM

I actually work in JP Morgan's offices in Bournemouth so hopefully I'll be in the know, although they do seem to keep things tight lipped. I'd love it if they built an office in Leeds and for some while have been wondering why none of the American Banks have thought about Leeds!?!! It will be all the more better for me as a lot of the people i work with seem to have a perception that Leeds has nothing job wise compared to Bournemouth........little do they know!!!! :lol:

VanP

August 15th, 2008, 03:25 PM

Well its certainly comforting to know that the employees of one of the worlds leading financial institutions have such a firm grasp of economic reality..... Credit crunch anyone?

Suburban Knight

August 15th, 2008, 04:16 PM

The source stating that the client is JP Morgan is only speculating. It is an as-yet unknown investment bank.

Super Leads

August 15th, 2008, 09:53 PM

Well its certainly comforting to know that the employees of one of the worlds leading financial institutions have such a firm grasp of economic reality..... Credit crunch anyone?

And how exactly have you come to this conclusion?:ohno:

VanP

August 16th, 2008, 05:34 PM

Well to be exact I came to that conclusion by reading your post.

Super Leads

August 18th, 2008, 12:11 AM

So because i think an American bank is contemplating moving some part of its business up to Leeds is a good think i must have poor knowledge of the current economic climate. :ohno: The fact of the matter is that i was just commenting on a rumour. With the current economic climate the way it is banks are looking to cut costs and one way they could do this is by moving certain operations up to Leeds which will be significantly cheaper than London. Banks are still employing and expanding in certain areas and with Leeds/Manchester having such a large pool of graduates to choose from i see no reason why they wouldn't be interested in either city. JP Morgan have some what weathered the storm in comparison to other global banks and you may have not seen they are also expanding in London http://www.ft.com/cms/s/0/348fe4c2-5fe7-11dd-805e-000077b07658.html ......credit crunch anyone?!?!....life still goes on with them looking at the long term picture!

aviator

August 19th, 2008, 10:15 AM

An interesting piece in today's YEP

Is Leeds' flats boom over?

19 August 2008

By Debbie Leigh

New figures obtained by the YEP today show a dramatic fall in the number of city-centre flats being built. Of the 12,700 apartments in the pipeline at the beginning of last year, 7,170 units have been axed or mothballed – equivalent to seven and a half Lumiere skyscrapers.

That means 4,250 flats delayed or ditched in addition to high-profile schemes which have recently fallen victim to the credit crunch like Spiracle, Kissing Towers and Lumiere. Over five years Leeds had become a symbol of the building boom, known for the number of cranes on its skyline but there were fears the market had reached saturation point.

With the credit crunch making mortgages hard to get and little funding available for residential building projects, many developers cited "current market conditions" as the reason for shelving their schemes.

Units that will not be built include:
1,009 flats at Temple Works, Holbeck;
788 homes at Manor Road/Sweet Street, Holbeck;
584 apartments at Caddick Development's Quarry Hill project;
490 homes at Brunswick Place;
Between 280 and 330 flats at MEPC's Wellington Place;
272 apartments at the Mayfair scheme at Cropper Gate.

Delayed schemes include:
720 units at Crosby Lend Lease's Latitude site, on Globe Road
57 flats at Manor Road.

A spokesman for Kenmore Property Group said it was looking to amend its plans for Cropper Gate, swapping the homes element for commercial uses as Leeds was "probably oversupplied now in terms of residential schemes". And when Castelmore abandoned its scheme at Brunswick Place it blamed a lack of appetite for large-scale mixed-use developments in the economic conditions. A spokesman for Crosby Lend Lease said work on its Globe Road site was on hold until market conditions improved.

Andrew Carter, deputy leader of Leeds City Council and executive member for development, said: "The fact that a number of schemes have been put on hold is just a sign of the current economic situation.

"I'm as worried as everybody else about the economic downturn in the UK, I think we are in a for a bumpy ride, but Leeds is better placed than any other northern city – in my view."

Leeds Chamber of Commerce's policy director Ian Williams said the last decade had seen 59,000 jobs created and the estimated value of the city's economy was set to grow from £13bn to £17 bn by 2016. He added: "Leeds is actually in a good position. And even with the recent talk of recession we still have businesses speaking with us on a daily basis, outlining that they are performing well in the current economic climate."

The dwindling property market in Leeds has already seen 1,974 apartments ditched by developers, such as Spiracle on the site of Leeds International Pool, Kissing Towers at Criterion Place and Green Bank. Work on Lumiere dramatically halted last month because of lack of funding and despite developer KW Linfoot's claims that building could re-start early next year, the scheme remains on hold.

And there could be more homes to bite the dust yet. Montpellier Estates has outline planning permission for City One, a mixed-use development with 450 homes. A spokesperson said: "With regards to the residential element of the scheme, this is still under review and has yet to be decided."

City living expert Rachael Unsworth, from the University of Leeds School of Geography, said the building downturn could prove a blessing for the city's future. "We were heading for a major oversupply of a particular kind of accommodation. We were going down the wrong road and we can reconsider."

Around 850 city-centre flats are expected to be completed this year and there are long-term projects like the 282-unit Isis Waterside Regeneration development at Granary Wharf and 410-unit Saxton by Urban Splash, due to be completed at the end of 2010.

Obviously, the YEP is overstating the case about the number of developments that have been cancelled or put on hold since there was never the slightest chance that all of these proposals would have gone ahead even in the sunniest of economic climates. But, before anybody decides to come over doom-and-gloom, let's reflect on the fact that every other major city in the UK is in a similar position. I also think that Dr Unsworth's observations are quite pertinent. If all these developments had gone ahead, we might well have been regretting the fact in ten years time.

Rob

August 19th, 2008, 10:27 AM

They're kind of re-gurgitating old news again, typical YEP, but the updated summary of schemes is quite well put together, and the commentary is reasonably balanced.

I hope Kenmore are serious about moving on with an office proposal for Bridge House, as mentioned again in the article.

Bradley Hardacre

August 19th, 2008, 01:51 PM

Good jobs news for Leeds from the YEP. "Only" a call centre but jobs is jobs....

Sky to create 350 jobs in Leeds

19 August 2008
By Exclusive By Mark Hookham Political Editor

Entertainment giant Sky is to create 350 jobs in Leeds city centre, the YEP can reveal.

A new contact centre will open in City Walk early next year – providing a huge jobs boost for Leeds despite the economic downturn.
The centre will offer a variety of new jobs including sales advisors, team leaders, call centre managers and training roles. The majority of the jobs will be full time positions, with about 40 management roles.
Sky bosses said their new Leeds base will help the company meet the "strong demand" for its TV, broadband and phone services.
Dave Rumble, Sky's Sales Director, said: "We're really excited to be coming to Leeds.
"We looked at a number of sites across the UK but we've chosen Leeds because it's a vibrant city with a strong track record in the contact centre sector and excellent transport links.
"Around one in three UK households already have Sky and more customers are choosing us for a wider range of services than ever before.
"We're investing in our future growth and we want our new Leeds base to help us achieve continued success. There are great opportunities at all levels to join a multimedia company that recognizes talent and is absolutely committed to developing and supporting its people.
"Above all, we're looking for applicants who can demonstrate strong communication skills and real enthusiasm for our products."
Sky has signed up broadband 1.6m customers, becoming the fifth-largest broadband company, and aims to attract three million broadband customers by 2010.
It already has 8.9m pay-TV customers but only 11 per cent of those are currently also buying broadband and telephone services from Sky.
Sky already has a presence in Yorkshire, with around 250 people based in Harrogate at Sky Bet and Football365.com.

The full article contains 304 words and appears in n/a newspaper.

Val Verde

August 19th, 2008, 06:01 PM

Good jobs news for Leeds from the YEP. "Only" a call centre but jobs is jobs....

Sky to create 350 jobs in Leeds

Is this at an existing building at City Walk (and if so which part of City Walk will it be and are there any pics) or will it be a new build which will be built for Sky?

ahmedd

August 19th, 2008, 09:42 PM

Is this at an existing building at City Walk (and if so which part of City Walk will it be and are there any pics) or will it be a new build which will be built for Sky?

I believe of the 3 buildings onsite, two are available to let, the other being british gas.

Rob

August 19th, 2008, 11:04 PM

VanP

August 19th, 2008, 11:16 PM

It will be all the more better for me as a lot of the people i work with seem to have a perception that Leeds has nothing job wise compared to Bournemouth........little do they know!!!! :lol:

Super Leads, I was referring to your colleagues half-baked ideas about the Leeds job market in comparison to Bournemouth :nuts:, not the fact that your employer might be considering a move up to Leeds or Manchester.

lazygamer

August 21st, 2008, 02:14 PM

I believe of the 3 buildings onsite, two are available to let, the other being british gas.

No. 2 is shared between William Hill and another firm with one floor to let.

Not sure about the other offices.

TSRJames

August 22nd, 2008, 11:22 AM

I find myself pissed off with Yorkshire Evening Post ... again! :rant: :mad:

On a day when Leeds has a great success story and a top issue story when we win 350 new jobs from a new company call HQ in Leeds, where do they put it, hidden inside the paper in some small article. And what goes on the front page, some old old rubbish that less apartments are being sold.

That is disgusting. If anyone from YEP is looking on here, GET YOUR ACT TOGETHER, stop dragging Leeds down with crappy non stories, and put the important good news on the front page.

:tongue:

Hi everyone, I'm new to the forum.:banana:

I agree with everything you've said. I've stopped buying it due to its negative stance on everything. The thing is though they are just out to sell papers and i think society likes a good moan more than it likes to celebrate/praise success.:ohno:

Benney

August 25th, 2008, 08:57 AM

Hi everyone, I'm new to the forum.:banana:

I agree with everything you've said. I've stopped buying it due to its negative stance on everything. The thing is though they are just out to sell papers and i think society likes a good moan more than it likes to celebrate/praise success.:ohno:

All local papers sell on misery and gloom. To look at the boards outside newsagents you would think that York was the Dodge City of the UK; but there again...

Bradley Hardacre

September 5th, 2008, 03:44 PM

Some positive stuff from the YEP today.

05 September 2008
By Mark Hookham
LEEDS has significantly boosted its attractiveness as a city to do business in, according to new research.

The city is ranked above Birmingham, Liverpool, Nottingham and Newcastle, in terms of what it offers growing businesses and entrepreneurs.

The findings of the UK Competitiveness Index came as a leading business expert in Leeds said it was in a "very strong position" to ride out the looming recession.

Ian Williams, policy director of the Leeds Chamber of Commerce, said the city's diverse economy would insulate it from the worst of the economic pain.

The UK Competitiveness Index ranks 407 local areas and is compiled by the Centre for International Competitiveness at the University of Wales Institute in Cardiff.

It rates each area on factors such as research and development spending, the workforce's educational qualifications, business start up rates and the number of new businesses per 1,000 inhabitants.

It also looks at the size of each area's "knowledge-based" industry and the economic output per head.

Leeds climbed 10 places in the last two years, making it the 14th best city in the country for business.

A major driver of the city's growth is its highly-skilled workforce, with one in five jobs in the "knowledge-based" industry.

This has led to the highest output per worker in the Yorkshire region.

A forecast on Tuesday from the Organisation for Economic Cooperation and Development (OECD) stated Britain's economy is plunging into recession.

But Mr Williams insisted this is not the case in Leeds.

He told the YEP: "We have 120,000 jobs in business and financial services but it is across a breadth of the sector.

We have call centres, commercial banks, building societies, the legal sector, and accountancy practices.

"The city's economy has changed, but it is diverse and we think that diverse nature is one of the things that will contribute to our continued success."

He said banks are still lending to businesses in Leeds, unlike in London where lending for major deals has all but dried up

And Alasdair Wightman, managing director of digital agency AWA, based in the Round Foundry, Leeds believes the quality of staff available is boosting the city's performance.

He said: "There is a statistic often bandied about that 62 per cent of graduates stay in Leeds.

"There is a bank of bright people coming into our sector. Some of them are dragged down to London but a hell of a lot stay in Leeds."

Mr Wightman said the e-commerce and digital marketing industries are growing, which means companies like his are "almost in a recession proof" position – AWA is expanding from 23 staff to up to 29.

Wakefield jumped 26 places in the league table since 2006.

But Kirklees has slipped eight places to 268th and Selby has dropped 38 places to 216th.

Prof Robert Huggins, who complied the index, said: “Our research strongly suggests that urban development in the UK is achieving a significant degree of success.”

mark.hookham@ypn.co.uk

The full article contains 458 words and appears in EP Leeds First & County newspaper.

I still note that Leeds is "only" 14th in the table and wonder which places fill the first 13 spots? The stat thats quoted about 62% of Leeds graduates staying in Leeds underline the importance of the education sector to the city's success, not just as an economic entity in itself, but as a souce of educated workers for the knowledge-based industries.

Suburban Knight

September 5th, 2008, 03:50 PM

I'd love to know where that 62% figure comes from, as it's something I've searched high and low for in the past and there is no source on graduate retention for anything smaller than Yorkshire & Humber (or West Yorkshire if you count only graduates from the local area).

Regarding the competitiveness index, full report available at www.cforic.org/downloads.php

Many of the areas above Leeds are in the South-East, so we score pretty well really in relation to the other Core Cities - shame Manchester's in 9th.

TonyYeboah

September 5th, 2008, 06:37 PM

I still note that Leeds is "only" 14th in the table and wonder which places fill the first 13 spots?

http://i37.tinypic.com/idhpvk.jpg

Looking at the wild fluctuations in terms of movement up and down the rankings (which I missed of my screencap, d'oh), I'm not sure how meaningful they are

Also, it is worth noting, that the cities are defined according to their respective local authorities. Would Leeds move up or down the table if it were measured according to its pre-'74 core? Who knows and who cares?

jrb

September 14th, 2008, 04:37 PM

Suburban Knight

September 15th, 2008, 11:36 AM

I can't believe Crains were foolish enough to leak who they thought was behind Bluebird back in May.

jrb

September 16th, 2008, 01:32 AM

I can't believe Crains were foolish enough to leak who they thought was behind Bluebird back in May.

I've probably cost Manchester the relocation. :hahano: It's out in the public domain anyway.

Thought you might be interested SK. Apparently it's 100,000 sq ft. Wonder if today's financial collapse will effect both requirements?

From Crains.

Manchester on short list for Goldman Sachs office
By Simon Binns

US investment bank Goldman Sachs has selected Manchester as one of its two short listed cities for a requirement of around 100,000 sq ft, Crain’s understands.

Leeds is believed to be the other city in the running for an office requirement that has been with agents and Manchester inward investment agency, Midas, for more than a year.

Colin Sinclair, Midas chief executive, said: “Midas is in regular contact with leading investment and retail banks and talk of expansion projects is not uncommon, even in the tough current market conditions.

“Indeed we’d be disappointed if considering the progress that the city region has made in the past decade, including the success of RBS and Bank of New York, we weren't linked to such speculation. We can’t however comment on any particular firm or property.”

Several other large US financial institutions are rumoured to be looking at taking upwards of 50,000 sq ft in Manchester.

jrb

September 16th, 2008, 09:02 AM

Big news for Manchester or Leeds, following on from the JP Morgan requirement. Hopefully my camera phone hasn't let me down? I'll upload it later this evening.

http://img.photobucket.com/albums/v397/jrb041067/Picture444671-1.jpg

According to today's MEN there are still several cities being considered.

Goldman's 'massive office' claim
david thame
16/ 9/2008

CLAIMS that US bankers Goldman Sachs are poised to sign up for a massive new office in central Manchester have been dismissed as `wide of the mark' by sources close to the bank.

Reports last week suggested that Goldman Sachs was planning to move 500 administrative staff to Allied London's Spinningfields development.

But it is understood that Manchester is one among several UK cities being considered for a 70,000 sq ft office block.

Val Verde

September 17th, 2008, 11:26 AM

Looks like HBOS owners of Halifax who have a very large presence in Leeds and of course Halifax could be bought out by Lloyds TSB after their share price collapsed. http://www.yorkshireeveningpost.co.uk/business-news/Troubled-HBOS-linked-with-Lloyds.4499406.jp

Troubled HBOS linked with Lloyds merger

http://editorial.jpress.co.uk/web/Upload/LEED//TH1_179200849CITY-HBOS-1.jpg
HBOS has declined to comment on today's speculation.

17 September 2008
By Nigel Scott
Business Editor
TROUBLED mortgage giant HBOS was today the subject of speculation that it could merge with rival Lloyds TSB.

Earlier, shares in the group plunged for a third day in a row amid funding fears, diving as much as 50 per cent, but recovered to seven per cent down after the report from the BBC.

The broadcaster said HBOS and Lloyds TSB were in "advanced" talks over a combination.

Asked about the discussions, an HBOS spokesman declined to comment.
HBOS is the UK's biggest mortgage lender and savings bank. It already has £258bn of retail deposits, and around 15m savers.

Lloyds TSB, which does the bulk of its mortgage lending under its Cheltenham & Gloucester brand, is the UK's third biggest lender in terms of outstanding home loans. During 2007, the latest year for which figures are available, it wrote eight per cent of all mortgages in the UK.

The merger news fuelled a rollercoaster session today for London's leading share index, which opened up, then quickly slumped to a 40 month-low before recovering back into the black.

HBOS topped the fallers board at the start of trading, then led the casualty list as its share price plunged.

The group sought yesterday to reassure investors over its funding, but it failed to prevent its shares slumping for the third day in a row. The bank's stock fell almost 40 per cent at one point yesterday before closing 22 per cent lower.

Analysts have said HBOS needs to refinance more than £100bn of funding during the coming months, which could be more challenging after the blow to confidence from Lehman's demise.

Inter-bank lending rates increased sharply yesterday and overnight, making funding more expensive.

There were also suspicions today that HBOS might have been a victim of "short-selling", where investors make money by effectively betting on the price of a company falling.

The Financial Services Authority issued a statement about HBOS today as its share price fell.

It said: "Since the beginning of the current extreme difficulties in the financial markets, the Financial Services Authority has worked intensively with all major UK banks to ensure they have credible capital and liquidity plans.

"We are satisfied that HBOS is a well-capitalised bank that continues to fund its business in a satisfactory way."

It would surely be major news although it is better for HBOS to be bought out by Lloyds as opposed to having to be nationalised which could have been a possibility. It would surely have quite major job losses i'd have thought to reduce duplication and will everything trade as Lloyds TSB or will seperate brand names remain considering that Bank of Scotland was founded by an Act of Parliament which I believe another Act would be required to allow this takeover to take place. How much market share will the combined groups potentially have? At least it means surely an absolute end to those awful ads featuring Howard Brown. :bash: :ohno:

JbtMLInQSLg

Has there been any update on the status of Bradford & Bingley considering they are also in trouble?

Suburban Knight

September 17th, 2008, 11:29 AM

Nooo! Howard is a legend!

STOPGO

September 17th, 2008, 03:01 PM

I like Howard, the young Asian guy who replaced him and sang I'am into something good is from Leeds. He reckons doing the advert ruined is life, can't go any where on a night with out being reminded of it.

Leeds No.1

September 17th, 2008, 07:02 PM

I love Halifax adverts with Howard...

Immunda Leodis

September 17th, 2008, 07:46 PM

I'm an HBOS employee and despite Look North's claims that there are 6000 workers in West Yorks (there's that many in Halifax alone) there are 10000 of us and I can't see there being jobs for us all....

LS19

September 18th, 2008, 09:18 AM

I used to work for HIFAL (part of HBOS). Believe me, there will be major shaftings, as happened to all at HIFAL.

With major sites at Trinity Road, Collinsons, Copley, Dean Clough, West Bank and Lovell Park, not to mention a vast network of branches, I am sure that many jobs will go.

I watched BBC Breakfast this morning, and some analyst bloke was actually suggesting people should get their money out of HBOS. You might be in for a busy day Immunda Leodis.

Suburban Knight

September 18th, 2008, 10:14 AM

I watched BBC Breakfast this morning, and some analyst bloke was actually suggesting people should get their money out of HBOS. You might be in for a busy day Immunda Leodis.

That's a load of crap. Savings are protected by law up to £35,000, so most people don't have to worry.

Rob

September 18th, 2008, 11:57 AM

The advice is that savings up to £35k are protected seperately in each banking group, so if someone had say £70k, they should split it to put £35k in each of two seperate bank groups, their savings would be safe that way.

Does anyone think that HBOS would have gone bankrupt if the deal had not gone through? Only 24hrs before, the HBOS chairman was saying they were in a healthy position with plenty of cash borrowing options, but they say 24hrs is a long time in this kind of economic climate and panic over their potential failure lead to panic selling of shares dropping the share price, which could have lead to depositors panicking and withdrawing deposits in a bigger run than at Northern Rock. The new merged bank should give depositors and creditors confidence that the bank is now big enough to survive presumably as well as bringing in their own money reserves, and stave off panic withdrawls. Hopefully share prices will start to recover over the next few days.

LS19

September 18th, 2008, 01:39 PM

Yes Suburban Knight, the £35,000 protection was mentioned in the report. I was quoting what one of the 2 analysts said afterwards.

M€trolink

September 18th, 2008, 01:50 PM

No UK retail bank is going to go bust end off.

P.S. I kind of work for LTSB, very interesting times ahead, strongly suspect any major changes will be years down the line as opposed to weeks or months away. The merger between Lloyds and TSB took ages.

Northern Muppet

September 18th, 2008, 02:09 PM

Immunda Leodis

September 18th, 2008, 08:05 PM

HBOS would have definately gone bump. They are the most exposed UK bank with regards to CDO and exposure to reliance on other banks for funding.

That's what you get when your CEO is taken from ASDA to 'pile 'em high and sell 'em cheap' I hope that it's a lesson that will be learnt and that the wanker bankers who've dropped us in this mess will be prevented from doing it again!!! :ohno:

Rob

September 19th, 2008, 09:59 AM

They will learn the lesson for a while, but after a few years it will fade into the past and they may make the same mistakes again. One commentator has made the point that the last major market crash was 17 years ago (presumably 'black monday'?) so many executives making banking decisions now are just too young to remember that it has happened before.

Suburban Knight

September 19th, 2008, 01:09 PM

short selling should be banned.

Val Verde

September 23rd, 2008, 12:07 AM

Bit of a long post but heres some articles on the takeover of HBOS by Lloyds TSB today as well as interest in Bradford and Bingley: http://www.yorkshireeveningpost.co.uk/business-news/BREAKING-HBOS-chief-Andy-Hornby.4515685.jp http://www.yorkshireeveningpost.co.uk/business-news/700-branches-34at-risk34-in.4513804.jp

BREAKING: HBOS chief Andy Hornby defends Lloyds deal in leaked internal memo to staff

HBOS boss Andy Hornby has defended the Lloyds TSB merger plan.

« Previous « PreviousNext » Next »View GalleryADVERTISEMENTPublished Date:
22 September 2008
By Nigel Scott
Business Editor
HBOS chief executive Andy Hornby today defended his company's takeover by Lloyds TSB, telling staff: "It was the right thing to do."

In an internal e-mail, he said the two institutions had been talking for some time about a deal, and claimed it would create "a financial powerhouse".

Mr Hornby also said it could take at least three months to complete the deal - and up to three years to integrate the two institutions.

His comments came in the e-mail written yesterday, which also sought to reassure staff over jobs.

"It is of course the case that the merger will inevitably lead to some job reductions," he said in the e-mail, obtained by The Scottish Press Association.

"However, the majority of HBOS colleagues are likely to stay with the enlarged group, reflecting the sheer scale of our business.

"Moreover, for most colleagues the impact of the merger is unlikely to be immediate as integration will take at least two to three years to complete."

The HBOS chief executive told his staff: "Eric Daniels, chief executive at Lloyds TSB, and I had been talking for a while about the deal.

"We have always recognised the benefits of combining these two businesses with their fantastic collection of brands.

"Those talks really accelerated, however, after the momentous developments in the last few days as the world has experienced literally unprecedented turmoil in financial markets."

When UK financial stocks came under even more intense pressure last week, the two men moved quickly to "complete the conversations" between the two companies.

"We agreed to be purchased by Lloyds TSB because it is the right thing to do," he said.

"It really is as simple as that.

"We had reached a point where the dramatic movements in our share price (caused by the completely unprecedented market context) were raising concerns amongst our customers.

"The simple truth is that I - and the rest of the HBOS board - were simply not prepared to take any risks with our great business."

Despite being an "exceptionally well capitalised and profitable" bank, share price gyrations caused too much uncertainty and it was time to act decisively to ensure long term stability for staff and customers, he said.

"The deal with Lloyds TSB is about two things," he went on.

"Firstly, getting the best possible deal for our shareholders, including the many of you who have HBOS shares.

"The new company will be a financial powerhouse. HBOS shareholders will share in its success - they will own 44 per cent of it. All of us who are shareholders will participate in the success of the business going forward.

"Secondly, protecting and growing our franchise. Together with Lloyds TSB we will enjoy an extraordinarily strong position in retail banking, corporate banking and insurance & investment.

"The reality is that, as part of a bigger franchise, we will be able to grow the business more than we could have as a standalone HBOS."

http://www.yorkshireeveningpost.co.uk/business-news/700-branches-34at-risk34-in.4513804.jp

700 branches "at risk" in Lloyds TSB and HBOS merger

700 branches could be at risk in the planned merger, it is reported.

« Previous « PreviousNext » Next »View GalleryADVERTISEMENT Published Date:
22 September 2008
By Nigel Scott
Business Editor
THE LLOYDS TSB takeover of rival Halifax Bank of Scotland could result in nearly a quarter of the combined group's 3,000 high street branches being axed, it is claimed.

According to the Independent on Sunday, Lloyds has contacted several leading property consultants to close as many as 700 premises when the £12bn deal is completed later this year or early next.

The news will add to fears of hefty job losses resulting from the takeover, which is the biggest deal in UK banking history.

The number of ensuing redundancies has been put as high as 40,000 although that was branded "ridiculous" by Lloyds TSB's chairman Sir Victor Blank.

Lloyds TSB is reported to have contacted several leading property agents including DTZ, Jones Lang LaSalle and CB Richard Ellis. Two or three are expected to be hired in the next few weeks to review then sell branches across the UK.

No-one from the bank was immediately available to comment.

John Knowles, managing director of DTZ Corporate Finance, declined to comment explicitly on the Lloyds TSB-HBOS takeover.

But he told the Independent that banks typically had three options open to them when determining what to do with excess branches as a result of a merger.

"You can close branches and sell them off as wine-bar chains. You can sell a package of properties and then lease them back in the short term as the bank slowly closes its branches; or you can sell leasehold liabilities," he said.

As part of the takeover deal, LLoyds TSB said it would be able to save around £1bn or 10 per cent of the combined group's cost base.

But banking analyst James Hamilton said he estimated the savings could be twice as much "given that there is almost complete geographic and product overlap and you do not need two branches on every high street".

HBOS employs 75,000 people and has 1,100 branches in the UK. Lloyds TSB has around 70,000 staff, with 1,900 branches including 160 Cheltenham & Gloucester sites.

The takeover, announced on Thursday and which will be subject to shareholder approval, followed a run on HBOS shares earlier in the week amid fears over its funding position.

HBOS is the UK's biggest mortgage lender and savings bank, with an estimated 20 per cent share of all mortgages at the end of June and 22m customers.

Lloyds TSB, which does the bulk of its mortgage lending under its Cheltenham & Gloucester brand, is the UK's third biggest mortgage lender with nine per cent.

http://www.yorkshireeveningpost.co.uk/business-news/Bradford-and-Bingley-shares-rise.4513782.jp

Bradford and Bingley shares rise on "takeover" link with Yorkshire Bank owner NAB and other possible suitors

Bradford and Bingley's future is the subject of more speculation today.

« Previous « PreviousNext » Next »View GalleryADVERTISEMENT Published Date:
22 September 2008
By Nigel Scott
Business Editor
HOPES that struggling buy-to-let lender Bradford & Bingley could find shelter from the financial storm in a takeover by a bigger bank helped its shares soar today.

B&B rose as much as 19 per cent after weekend reports suggested possible tie-ups with Spain's Santander - owner of Abbey and Alliance & Leicester - Dutch banking group ING, and Yorkshire and Clydesdale Bank owner National Australia Bank.

The Financial Services Authority (FSA) is said to be keen to broker a deal for the lender, which has been hit by rising arrears as well as losses on investments related to the credit crunch.

But there is understood to be no firm interest so far despite the City watchdog's overtures, the Times newspaper reported.

Panmure Gordon banking analyst Sandy Chen said this was a "bad sign" - adding that the uncertainty could even lead to B&B customers taking their money out of the bank.

"The absence of any such bidders so far adds to the uncertainty about B&B's future, in our view.

"Our concern is that significant retail deposit outflows may occur, forcing B&B to rely even more heavily on expensive wholesale funding," he said.

According to the Sunday Telegraph, the FSA has been in contact with Santander, the Spanish bank that owns Abbey and has just bought Alliance & Leicester, over a potential deal.

The regulator has also been in touch with Dutch banking group ING and Yorkshire and Clydesdale Bank owner National Australia Bank to gauge their interest, the paper added.

Bradford & Bingley has been badly hit by the credit crunch and housing market slowdown, and last month posted a £26.7m first half loss.

Bosses of the buy-to-let specialist warned of a further surge in arrears and repossessions, and said they would rein in lending until the economy improved.

As well as its poor results, the group also lost its chief executive and unsettled the City with twice-rehashed plans to strengthen its finances by raising money from shareholders.

The FSA's new chairman Lord Turner declined to comment on any talks it was conducting about the bank.

But he told Sky News: "The FSA is continuing to monitor the capitalisation and liquidity of all the institutions. At the moment we believe all the major institutions have creditable plans."

Lord Turner added: "There's a whole range of central discussions about our contingency plans if particular institutions did get into trouble."
Sources close to B&B said the company was not in takeover talks. They added that the bank was, along with other financial institutions given the current market turbulence, talking to the FSA about a range of issues including arrears management and savings levels.

A B&B spokesman said: "Our funding foundations are solid and we are well capitalised."

Shares in B&B soared on Friday along with other bank shares as the market digested a temporary ban on short selling and news of a huge US Government bail-out for the financial sector that involves taking hundreds of billions of bad loans off institutions balance sheets.

But the shares remained worth less than a tenth of their value a year ago.

It would be majorly bad news for Yorkshire to see major banking job losses and didn't I read somewhere that the combined Lloyds and HBOS group would keep most jobs in Scotland with many possible job losses being in Leeds and Halifax. :ohno: Could it result in either of the HBOS offices at Lovell Park or in Holbeck closing down? Still it would help the security of Bradford and Bingley if they got bought out as soon as possible as they appear to have being in quite a bit of trouble considering their small size. How are the remaining building societies based in Yorkshire such as the Leeds, Skipton, Yorkshire etc performing in the current climate?

TonyYeboah

September 23rd, 2008, 10:35 PM

Val Verde

September 24th, 2008, 09:14 PM

I don't suppose anybody's seen it yet?

The Birmingham Post ran a story on it today, but, surprisingly, no other local media seem to have

As far as Leeds goes, this is what I know:

Leeds is in the top 3 Shopping and Leisure Centres with Manchester and London. The exact ranking is unknown

Leeds has improved its position by 1 place to rank as the fourth favoured city behind London, Manchester and Birmingham (leapfrogging Brizzle)

Although such surveys are of course very subjective and open to interpretation and spin what criteria was used and did they only take account English cities as opposed to cities across the United Kingdom and why did Leeds improve by one position?

Also out of interest I noticed yesterday morning whilst I was walking up Briggate a TV camera crew with a sign saying "How to Survive the Property Crisis" presumably asking people on their views of the property and economic downturn. Sounds like a typical weekday evening Channel 4 programme to me and I wonder if it would be presented by Sarah Beeny or Phil & Kirsty (although I didn't see anyone famous on Briggate) considering those three could have been seen by some to have helped contribute to the ott property bubble in the first place which is now going down. :ohno: Did anyone else see this camera crew on Briggate. I guess they would have to get that particular programme done quickly considering the economy could quickly change in the next few months or even weeks.

STOPGO

September 24th, 2008, 11:30 PM

The only direction the economy is going is down over the next two years.

lazygamer

September 24th, 2008, 11:36 PM

The only direction the economy is going is down over the next two years.

:ohno: On a lighter note, I found a tenner in my old jacket this morning.

Benney

September 25th, 2008, 06:10 PM

:ohno: On a lighter note, I found a tenner in my old jacket this morning.

But how old is the jacket ?

mark*ie

September 25th, 2008, 09:44 PM

But how old is the jacket ?

I was just thinking the same !

http://i2.ebayimg.com/08/i/001/0e/ba/5dc3_1.JPG :colgate:

wiggleyleeds

September 25th, 2008, 09:54 PM

gaw blimey dont she look young

Val Verde

September 25th, 2008, 10:53 PM

:ohno: On a lighter note, I found a tenner in my old jacket this morning.

But what currency? It wasn't old 10 Zimbabwaean dollars by any chance? :ohno: Picture belows number of eggs which could be bought with an (Austin Power's sounding) $100,000,000,000 note back in July (presumably worth much less now bearing in mind hyperinflation in Zimbabwae). http://en.wikipedia.org/wiki/Zimbabwean_dollar

http://upload.wikimedia.org/wikipedia/en/2/28/Hundred_billion_dollars_and_eggs.jpg

In seriousness though I found three articles with a consultancy claiming that apparently the property market will start to recover next year, Bradford and Bingley have axed 370 jobs and HBOS stating that jobs will go in the merger with Lloyds TSB: http://www.yorkshireeveningpost.co.uk/business-news/Recovery-in-housing-39next-year39.4528162.jp http://news.bbc.co.uk/1/hi/business/7635346.stm http://news.bbc.co.uk/1/hi/england/west_yorkshire/7636692.stm

Recovery in housing 'next year'

25 September 2008
THE Yorkshire housing market will begin to recover next year with national recovery set for 2010, according to the latest Housing and Economy report from real estate adviser Atisreal.
The report claims that with underlying demand for housing still exceeding supply, and with the Bank of England likely to cut interest rates within a few months, credit lending should recover and the housing market should then gradually improve. The Housing and Economy report was drawn up with the input of Professor Patrick Minford, former economic adviser to Margaret Thatcher and current academic at Cardiff Business School.

It suggests growth rates of nominal house prices for the UK will fall by an average of 3.5 per cent in 2008 and 0.5 per cent in 2009 before returning to modest (2.8 per cent) growth in 2010.

The report says the Yorkshire and Humber region has continued to perform slightly better than the national picture and will see an average fall in prices of 2.3 per cent in 2008 before rising by 3.2 per cent in 2009 and 4.9 per cent in 2010.

Professor Minford said: "We have a slightly unreal situation. Credit lending has frozen but there is still very much a demand for housing.

"At some point, the credit market is going to come back and then we will see a recovery in the housing market."

Brian McLeish, development and residential director at Atisreal, continued: "Despite widespread doom and gloom, we must not forget that house prices are still more than one third higher than they were five years ago.

Rates

"We are forecasting that this 'downturn', and we are not calling it a 'crash' as this is vastly over-exaggerated, will last for another year. However, we are working on the premise that a large-scale recession is avoided and that the Bank of England will cut interest rates."

David Couch, director of development and residential consulting for the North at Atisreal, said: "City centre apartment markets throughout Yorkshire are suffering, along with their peers in the North West and Midlands, with cities like Leeds and Sheffield adapting to the new reality with developers postponing starts and marketing, and landowners looking to alternative or variant residential uses."

Strange report surely house prices have already fallen below the figures quoted in the YEP article and how can you predict where the economy will be in two years time which could either be somehow back to boom time or at rock bottom. Were Atisreal operating under interest from interested parties such as housing developers and estate agents to release a report like this perhaps?

Bradford & Bingley cuts 370 jobs

Bradford & Bingley will dismiss the rest of its branch-based mortgage advisers
Bradford & Bingley (B&B) is to cut 370 jobs because of the continuing downturn in the market for mortgages.

It is shutting a mortgage processing centre and cutting its sales team that deals with mortgage brokers.

B&B is also making its remaining 50 branch mortgage advisers redundant. It said that mortgage application numbers had fallen "significantly".

More job cuts will be in the pipeline, the lender said, when it has finished a review of staffing at its head office.

"We are a strongly capitalised bank now undertaking a complex transition with regrettable job losses," said Richard Pym, the recently-appointed chief executive.

"But we are planning to put the problems of the past behind us and have a business which is fit for purpose going forward."

This week, HM Revenue and Customs (HMRC) reported that residential property sales in the UK stood at just 62,000 in August, down by 54% on a year earlier.

Creditworthiness

The past week has seen widespread concern that B&B may be the next bank that needs to be rescued by the authorities because of the credit crunch.

The bank's creditworthiness has now been downgraded by all three of the main credit ratings agencies: Moody's, Standard & Poor's, and Fitch.

Each has pointed to the bank's problem in raising funds in the financial markets and the excessive exposure of its mortgage book to buy-to-let and self-certified borrowers.

It has been rumoured that the Financial Services Authority (FSA) has been trying to line up a "white knight" bidder to take over B&B.

But Jonathan Pierce, an analysts at Credit Suisse, said this was unlikely.

"Ultimately B&B's biggest issue is asset quality and we doubt any major bank will want exposure to a £40bn mortgage portfolio with arrears almost double the industry, and where over 40% of loans will be in negative equity if house prices fall 30% peak-to-trough, on our estimates," he said.

Shares in the lender are currently at a record low of just 23p, after standing at 184p in May.

A spokeswoman for the B&B said the bank was still open for business and was not withdrawing from new mortgage lending.

Arrears

Three hundred of the staff being made redundant work at the bank's mortgage processing department at Borehamwood in Hertfordshire.

They will lose their jobs in the first three months of next year when their work is transferred to a larger office at Bingley in West Yorkshire.

B&B said it had no plans to cut any of its 337 High Street branches and would be taking on 70 new staff to collect repayments from the growing number of borrowers who are now in arrears.

This is not the first redundancy announcement from a major lender.

The Northern Rock has cut at least 1,300 staff since it was nationalised at the start of the year.

And thousands of jobs are at risk now that HBOS, which owns the UK's biggest mortgage lender the Halifax, is in the process of being taken over in a rescue deal by Lloyds TSB.

Problem loans

The key issue that distinguishes the B&B from other lenders is that some of its loans to home owners have been turning bad at an alarming rate.

Loans which it has made itself had a default rate of 1.78% by the end of June.

But those mortgages which it had been buying in from other lenders, such as GMAC-RFC, have a much higher default rate of 5.11%.

This problem helped to push the bank into the red in the first half of the year and saw the appointment of Mr Pym, the former chief executive of the Alliance & Leicester bank, after the B&B struggled to raise an extra £400m from its shareholders during the summer to shore up its balance sheet.

This week B&B came to a deal with GMAC-RFC to avoid taking the last £1bn worth of mortgages from that lender, under an arrangement first struck in December 2006.

Well I guess there is a silver lining from that in more work coming to Bingley. Is there any update on any banks trying to buy B&B?

HBOS admits jobs to go in merger

Shane O'Riordain said there would be job losses after the merger
The public relations manager of HBOS has said there will be no special treatment for Yorkshire staff and there will be job losses in the merger.

Shane O'Riordain, the communications manager, said the firm was proud of its Yorkshire roots but also proud of its Scottish roots and was "a UK company".

But he said the merger of HBOS and Lloyds TSB would result in job cuts.

Mr O'Riordain said the merger was in its infancy and no conclusions could be drawn about the future.

He said it would take three years for the businesses to come together and there was " a lot of work to do".

"We are at the beginning of the merger process, clearly there will be some job losses, it would be foolish to say otherwise, but we are literally at the beginning of this process."

But he said both companies would do everything possible through natural turnover to avoid compulsory redundancies.

Shane O'Riordain talks about the situation at HBOS
"But there has been no final clarity on that, because we're just at the start of the process."

Mr O'Riordain said politicians both in Scotland and Yorkshire and in other areas the bank operated in were all being very effective.

"I have, personally, spoken to local Yorkshire politicians (about the merger).

"You can rest assured, local politicians in Yorkshire have been just as diligent as their Scottish counterparts.

"But I think it's important to remember we are a UK company. Yes we're proud of our Yorkshire roots but we're also proud of our Scottish roots - but fundamentally we're a UK company.

"We are conscious of the proud heritage of Halifax, just as we're conscious of the proud heritage of the Bank of Scotland, but we've got to be even handed.

"It's far too early to speculate about job losses."

Mr O'Riordain said the merged companies would be "an enormous business".

"We're putting together a group which will employ initially 150,000 people."

So when will the extent of job losses be eventually known? Is there any indication of how long the takeover will take to be confirmed? I guess one thing resulting from the merger (whilst not widely acknowledged) would be that this would surely mean the end of Lloyds TSB's Cheltenham & Glocuster brand considering a lot of their business which is predominately mortgage led is done by the Halifax and I hardly ever see anyone in any branches of C&G?

http://upload.wikimedia.org/wikipedia/en/7/78/C%26G.jpg

Mikeyp

September 25th, 2008, 11:59 PM

Our office is been closed down due to lack of work :ohno:
............... 10 staff going, started the year with 22 staff.

aviator

September 26th, 2008, 01:13 PM

Office take-up to plunge

26.09.08

Fifteen of the UK’s 19 main offices markets are set for reductions in take-up this year compared with 2007.

However, Atisreal’s latest offices report also predicts that undersupply in some markets could mean that rents are stable and there could even be investment opportunities.

It suggested that Bristol and Edinburgh are both undersupplied – Bristol has 600,000 sq ft in the pipeline and Edinburgh 480,000 sq ft – and both cities’ take-up this year has accounted for more than half their respective supply.

Dan Bayley, head of national lettings and sales at Atisreal, said: ‘The combination of recent performance and undersupply means that Bristol looks like somewhere sensible to invest.’

The report also highlights London’s Midtown, Cardiff and Leeds as areas where demand could exceed supply, and suggests Birmingham and Newcastle are on course to exceed their five-year averages for office take-up.

However the report found that the City of London, London Docklands and Sheffield were oversupplied.

Bayley commented: ‘Oversupply in the City market may be balanced out by some of the tower schemes which are now not certain to go ahead.

‘Similarly with Sheffield, the small oversupply may be balanced out by current significant government requirements.’

‘Returns may also be apparent in markets such as Southampton, Cardiff and Midtown where either performance has been strong or there is undersupply.’

Val Verde

September 27th, 2008, 01:48 AM

According to the Times (and numerous other sources including the Daily Telegraph and The Independent) it looks like Bradford & Bingley could be nationalised: http://business.timesonline.co.uk/tol/business/industry_sectors/banking_and_finance/article4835129.ece

http://farm1.static.flickr.com/145/375949897_f315cda7df_b.jpg

Nationalisation looms for Bradford & BingleyFrancis Elliott and Patrick Hosking
Alistair Darling is close to ordering the nationalisation of Bradford & Bingley as a search for a private sector buyer for the stricken lender becomes increasingly desperate.

Seven months after Northern Rock was taken over, the Chancellor has ordered officials to prepare to take a second financial institution into public ownership, although Treasury officials last night stressed no decisions had been taken.

Last ditch talks to find a buyer are set to continue through the weekend but officials did not deny that Mr Darling was considering using new powers to nationalise banks passed after the run on Northern Rock.

"You would expect us to have contingency plans," said a Treasury spokesman.

Related Links
ANALYSIS: nationalisation is no easy option
Q&A: Are my savings with Bradford & Bingley safe?
B&B slashes hundreds of mortgage jobs
The seizure of B&B would be explosive, taking more than £40 billion of assets and liabilities on to the Government balance sheet and would be certain to trigger a backlash from shareholders who have only just injected £400 million into the business to beef up its balance sheet.

Ministers are acutely conscious of the danger of sparking a depositor panic. However, deposits of up to £35,000 at all banks, including B&B, are anyway guaranteed under the Financial Services Compensation Scheme. Nationalisation would make deposits even safer.

B&B, which specialises in buy-to-let mortgages and other higher-risk lending, has been beset by difficulties for months, culminating this week in a series of credit rating downgrades by influential ratings agencies. Its shares fell to a new all-time closing low of 20p yesterday from a high of 536p in March 2006.

The Financial Services Authority has been reportedly attempting to line up a "white knight" bidder to rescue the bank. Banco Bilbao Vizcaya Argentaria and Banco Santander of Spain and ING of the Netherlands, have been mooted as possible saviours.

But with markets so febrile and banks so nervous about conserving cash and not taking on additional risk, a rescue bid has been looking increasingly unlikely, even at a rock-bottom price.

B&B is seen as an unknown quantity because of its aggressive expansion into buy-to-let lending and because of its huge portfolio of "self certified" mortgages - home loans where the borrower has not been required to provide proof of income and known sometimes as "liars' loans".

While reasonably strongly capitalised, following a £400 million injection of fresh capital in August, it is still relatively highly dependent on wholesale funding - a weakness that led to Northern Rock's demise last year.

The downgrades by the ratings agencies have left it with the lowest ranking investment-grade score of BBB-. Any further downgrade would see it dubbed "speculative grade" or "junk", an untenable position for a deposit taking institution.

A B&B spokesman said last night, "We do not comment on market rumour or speculation."

Well after its share price fell to being worth next to nothing I guess it would obviously be better if B&B were nationalised (if no one could buy them) as surely a retail bank can't go bust. If this is true would they merge Bradford and Bingley with Northern Rock or keep both banks as seperate entities? I guess putting stories that B&B would be nationalised would actually mean nationalisation in an actual sense would occur sharpish to avoid a repeat of the panic seen at Northern Rock. Still they did have rather poor ad's imo which ironically mentions (as the woman with the bowler hat said) the merits of making money or something along the lines of that (although she is a bit of alright though :)).

http://www.bradford-bingley.co.uk/tv/html/images/holder_panel.jpg

Val Verde

September 28th, 2008, 12:49 AM

And it looks all but confirmed that B&B will be nationalised by the HM Treasury with thier best assets possibly being sold to the likes of Barclays, HSBC and / or Santander: http://news.bbc.co.uk/1/hi/business/7640143.stm

Treasury to nationalise B&B bank

http://newsimg.bbc.co.uk/media/images/45058000/jpg/_45058221_bradford_pa226b.jpg
Parts of B&B are set to be sold on to another bank by the Treasury
Troubled bank Bradford & Bingley is to be nationalised, the BBC has learned.

Officials from the Treasury and the Financial Services Authority (FSA) have been in talks with executives from the bank in a bid to secure its future.

BBC News business editor Robert Peston says the Treasury will almost instantaneously sell to a bank, or a number of banks.

B&B's share price has plummeted and it has announced plans to cut 370 jobs due to the downturn in the mortgage market.

The bank will be nationalised using special legislation the Treasury put through when it took Northern Rock into public ownership earlier this year.

The measure is expected be announced on Sunday night or Monday morning.

The nationalisation and break up of Bradford & Bingley will represent a momentous event in the history of British banking

Robert Peston

Robert Peston's blog

The Treasury and FSA will negotiate with banks interested in buying parts of B&B. Possible buyers included Santander of Spain, HSBC and Barclays.

Santander, which already owns Abbey and Alliance & Leicester, has been looking at B&B for some time.

B&B's £50bn of loans, including £41bn of home mortgages, will not be sold and will be nationalised on a long-term basis. The mortgages may be given to the nationalised Northern Rock to manage.

The bank experienced significant withdrawals of cash from its branches and online bank on Saturday amid customer concerns about its situation.

The Treasury's decision to sell B&B's savings business means that depositors and savers' money should be safe.

However, B&B's shareholders and holders of its subordinated debt may lose out.

Our business editor says the nationalisation and break-up of B&B represents a momentous event in the history of British banking.

We can assure customers that their deposits are safe with Bradford & Bingley

Tony McGarahan
Bradford & Bingley spokesman

He said: "It will mean that every building society that floated on the stock market in the wave of demutualisations of the past two decades will either have collapsed or been sold to a conventional bank."

B&B was perilously close to seeing a demand from depositors for the return of billions of pounds, which it would have been unable to find.

Credit rating agencies had been downgrading the rating of its covered bonds, a form of funding which involves packaging up mortgages for sale to investors.

Bradford & Bingley spokesman Tony McGarahan said discussions were taking place and an announcement would be made before the Stock Market opened on Monday.

"We can assure customers that their deposits are safe with Bradford & Bingley," he said.

I wonder how many jobs will be lost from this and this appears to the end of one of Yorkshire's largest brands. :ohno: Surely the people at the top of Bradford & Bingley, Northern Rock, HBOS and all the other banks wich needed to have been bailed out must surely face severe justice for ruining their companies (although of course that would probably never happen).

Finally the news regarding HBOS and Bradford & Bingley must also have massive implications for Leeds's creditionals as a financial centre which must surely take a big dent after the consolidation with B&B being nationalised and HBOS being bought out by Lloyds TSB.

Val Verde

September 30th, 2008, 06:21 PM

More bad news with job losses with Pioneer announcing the closure of their Castleford Factory and cut backs to news at Yorkshire Television in Leeds: http://www.yorkshireeveningpost.co.uk/news/Pioneer-axes-hundreds-of-Castleford.4540189.jp http://www.yorkshireeveningpost.co.uk/business-news/Yorkshire-regional-bulletins-in-jeopardy.4541576.jp

Pioneer axes hundreds of Castleford jobs

http://upload.wikimedia.org/wikipedia/en/thumb/b/b1/Pioneer_logo.svg/471px-Pioneer_logo.svg.png
Pionner axing jobs

« Previous « PreviousNext » Next »View GalleryADVERTISEMENTPublished Date: 30 September 2008
By Stuart Robinson
Hundreds of jobs are set to be axed at a electronic's giant's Castleford factory.

Pioneer Technology UK Ltd, whose Castleford factory assembles plasma TV's and DVD recorders, have dropped the bombshell that they are to cease production at the site and are consulting with union officials over redundancies for the 226 staff who work at the factory on Whitwood Common Lane.

The decision follows announcements earlier this year that the firm review its production structure in the UK.

General Manager, Graham McCulloch, said: "The market for plasma display products within Europe is fiercely competitive and although Pioneer products are highly rated in the marketplace with regard to quality, we have recently experienced an erosion of market share.

"Despite efforts to improve profitability within the plasma display business, future production activity is not forecasted to increase in the near future. With such levels of production activity, it has been increasingly difficult to absorb the fixed costs associated with a production facility of the size and nature of our factory at Castleford.

"After careful analysis and consideration, senior management are of the opinion that it is no longer commercially viable to continue operations in Castleford at the forecasted levels of output and sales."

The YEP understands that the figure of 226 takes in all staff employed directly by Pioneer on the site, from shop floor staff through to management.

Other staff employed at the site are part of agencies, which undertake mainly seasonal work.

Company bosses say an exact date for the planned closure has not yet been decided but it is expected that production will end in the spring of 2009.

Mr McCulloch added: "We will be holding talks with our recognised Union, Unite, to establish collective consultation arrangements. As a fair, reasonable and socially responsible employer, Pioneer Technology UK Limited intends to provide a redundancy package that is in excess of its statutory obligations, to dampen financial impact on employees."

* Are you affected by the closure? Phone Stuart Robinson on 01924 375820.

Yorkshire regional bulletins in jeopardy as ITV News announces plans to axe over 400 jobs

http://upload.wikimedia.org/wikipedia/en/3/39/Yorkshire_Television_logo.png
ITV News has announced plans to slash hundreds of jobs.

30 September 2008
By Nigel Scott
Business Editor
ITV News was facing the threat of strikes today after announcing plans to axe more than 400 jobs across its regional services under plans to save millions of pounds.

A letter sent to journalists, technical staff and other employees in England and Wales said current staffing levels of 1,075 would be reduced to 646, a cut of 429 jobs.

Unions condemned the proposals and warned of possible industrial action to fight the job cuts.

Regional TV news in Yorkshire is under threat from the cut backs.

At Yorkshire Television's Calendar, staff have been told they will all have to re-apply for their jobs. The programme had been split into North and South regional shows but these are to be re-combined.

YTV owner ITV wants to make savings of £40m and unions said their worst fears had been realised.

Laura Davison, assistant broadcasting officer of the National Union of Journalists, said it was a "really bad day" for ITV News staff, estimating that the cuts amounted to 40 per cent of total staff.

Ms Davison said she could not rule out industrial action by staff as part of a campaign to try to reverse the planned job losses.

Staff were told the news at meetings in ITV News offices across England and Wales this morning.

ITV News said it expected around 430 jobs to be lost across the group and while volunteers were being sought, it could not rule out compulsory redundancies.

John Cresswell, ITV's chief operating officer, said: "We are committed to a self-help, self-funding, solution to securing ITV's future. In order to sustain our investment in UK content, we have to keep on top of our cost base."

The company said in a statement that its cost efficiency programme was designed to sustain ITV plc's £1bn investment in UK content, which was at the heart of its turnaround strategy.

It said in its interim results in August that by the end of the year it would deliver £41m in cumulative annual savings. It now intends to make further cost savings of £35m across the company by 2010.

Media regulator Ofcom published a public service broadcasting review last week which proposed that regional programmes on ITV could be slashed to help it save £40m a year.

The consultation will run until December 4, with a final statement early next year. The Government and Parliament would then be due to consider issues raised.

Also Yorkshire Forward meeting with Alistair Darling over the Bradford and Bingley crisis. http://www.yorkshireeveningpost.co.uk/business-news/Yorkshire-Forward-to-meet-with.4540885.jp

Yorkshire Forward to meet with Chancellor over Bradford and Bingley jobs crisis

« Previous « PreviousNext » Next »View GalleryPublished Date:
30 September 2008
By Nigel Scott
Business Editor
CHANCELLOR of the Exchequer, Alistair Darling, is to meet with officials from Leeds-based regional development agency Yorkshire Forward tomorrow to discuss the Bradford and Bingley crisis.

Yorkshire Forward is bringing together key private and public sector leaders to create an action plan for employment support in Yorkshire and Humber following yesterday's confirmation by the Government of the nationalisation of Bradford and Bingley.
The Chancellor has asked Yorkshire Forward to take the lead on the issue and to convene a group to conduct "rapid assessment on what is needed to support local jobs".

Tom Riordan, chief executive of Yorkshire Forward, said: "We have a responsibility to make those people who are employed by institutions such as Bradford and Bingley a priority. We also have a responsibility to support the region's financial services industry at this time and are meeting with the Chancellor on Wednesday to decide how we will do this."

He continued: "The financial services sector within Yorkshire and Humber is fundamentally sound and there are strong credible institutions here.

"This situation is borne out of the current global financial position and we are working to minimise the impact of that.

"We have real strengths in mortgage processing, savings and insurance services and we believe the demand for these services will endure over the next decade and beyond.

"Not only do we have a strong infrastructure in place but we have a large university hub with fresh, highly educated, new talent joining the industry each year adding to the already strong skills base in this region.

"Our region's economy is extremely diverse with jobs spread across many different industries which has and will continue to enable it to weather the current economic storm.

"There is still a lot of investment coming into Yorkshire and Humber with companies increasing their capacity within the region and we expect this to continue long term."

So what powers exactly do Yorkshire Forward have to safeguard as many jobs as possible at B&B? Do they have much in ways of powers or are Yorkshire Forward just a talking shop? Surely investment has taken a major knock with the economic situation and with the downfall of HBOS and B&B surely Yorkshire's financial services sector must have taken a massive knock.

Fred2

October 2nd, 2008, 01:30 AM

See my posting #1840 on the Lumiere thread. Unfortunately, a sad commentary on the current state of Leeds economy.

Electric_City

October 2nd, 2008, 11:10 AM

According to the local TV news the other day, some financial institutions are doing very well out of the crisis. They mentioned the building societies that stayed as mutuals (rather than converting to banks), some of which have had a flood of new customers, bringing tens of millions of pounds of new business. In particular, the Leeds, the Yorkshire (based in Bradford) and the Scarborough building societies seem to have done rather nicely of late.

This ties in with what Rob was saying on the Lumiere thread.

Suburban Knight

October 2nd, 2008, 11:45 AM

Fred2

October 2nd, 2008, 11:39 PM

Leeds is well-placed to profit from the current economic climate with regards to financial institutions moving more of their back-office and processing operations out of the City to cut costs, hence some of the enquiries there have been.

I think we should always be aware that in any situation where there are losers there are (by definition) also winners!

JOliver

October 3rd, 2008, 12:32 PM

Suburban Knight

October 3rd, 2008, 02:26 PM

I work in a related role. Obviously there's not a great deal out in the press yet, and that's for the best.

M€trolink

October 3rd, 2008, 05:03 PM

There is NO way whatsoever the C&G brand will disappear from the high street.

LTSB will keep Scottish Widows and C&G no matter what they do with HBOS, in fact it is MUCH more likely we'll see the end of HBOS branches.

JOliver

October 3rd, 2008, 05:23 PM

I work in a related role. Obviously there's not a great deal out in the press yet, and that's for the best.

Well hope you're right but what we DO know is people are just get fired (think Lehman Brothers) rather then being relocated elsewhere.

Rob

October 3rd, 2008, 05:55 PM

M€trolink

October 3rd, 2008, 06:07 PM

The comentators have said that the likes of investment dealers are at by far the greatest risk, which tends to be more of the front line banking jobs in London, whereas the parts of the financial industry that look after the mechanics of the business such as processing mortgages etc is much more robust as they are an essential part of everyday running of the industry, and these are more the sort of businesses to be found in places like Leeds. That's part of the reason why we are in good position to weather the storm compared to some London banking jobs like Lehman Bros.

Not strictly true.

If I worked in HR, in a call centre or in fact any job that can be off shored for HBOS at the moment, anywhere in the country, I would be a little interested in how the take over by LTSB is going.

LTSB are renowned for offshoring, they will offshore very successfully.

Likewise, if you work for B&B in a call centre, chances are when they eventually get stablised, and taken over by a bigger player the call centres will close.

There will be huge consolidation in the sector, with many people from Canary Wharf, to Lombard Street to Leeds losing their jobs.

This is not all about the floor dealers getting made redundant but rather a huge re-structure of the financial sector.

Working in that sector I see the wheels turning very fast, normally they creep around.

Rob

October 3rd, 2008, 06:26 PM

Ok, not strictly true and perhaps a bit of a generalisation, and there is always the danger of loosing some more business oversees, but that was what the local economic comentators where saying a day or two ago.

Val Verde

October 14th, 2008, 05:18 PM

Article from yesterday's YEP about Simon Morris being made redundant from his recently collapsed property company: http://www.yorkshireeveningpost.co.uk/news/Simon-Morris-made-redundant-after.4586037.jp

Simon Morris has been made redundant.

http://editorial.jpress.co.uk/web/Upload/LEED//TH1_131020089Meeting5(2).jpg
Property mogul Simon Morris has been made redundant from the business empire he created.

A spokesman for the administrators of Mr Morris's collapsed property company today confirmed that the 31-year-old director was one of ten people made redundant on Friday.

The YEP reported on Saturday that administrators acting for the collapsed SRM Holdings Group had met staff to discuss job cuts.

Mr Morris, 31, who is a former director of Leeds United, was told on Friday that his services were no longer required.

He has been made redundant along with ten of the 21 staff that still worked for the Leeds-based company.

SRM Holdings and 36 subsidiary companies were placed under the control of the Leeds offices of insolvency firm Begbies Traynor a week ago.

Administrators from KPMG have also been appointed to handle part of the collapsed property empire.

The spokesman for the insolvency firm said of the ten staff made redundant, three - including Mr Morris - were directors of the business.
A fourth director and ten further members of staff remain in their posts with the group at present, he added.

Mr Morris met members of his staff at The New Conservatory on Albion Place in the city centre on Friday lunchtime.

A tip-off call to the YEP said a number of workers had been told they were losing their jobs.

When asked about job cuts, Mr Morris said: "I haven't made anyone redundant."

Asked whether the administrators had made a number of staff redundant, he added: "I don't want to talk."

Mr Morris's company is based in city centre headquarters at 2 Brewery Wharf.

SRM Holdings Ltd, which sold both commercial and residential properties is understood to have debts of around £50m and the main creditors are thought to be the major UK high street banks.

Mr Morris, a former Leeds Grammar School student, made it into a Sunday Times Rich List top 10 in 2007 – the same year he formed SRM Holdings.
He was rated the eighth richest person aged 30 or under in the UK with an estimated fortune of £69m.

SRM had a portfolio of more than 500 properties, mostly flats in the city.

This year the YEP reported that investors were locked in a legal battle with the Mr Morris.

Dozens of people who bought buy-to-let properties from another of his businesses, Morris Properties Ltd, claimed they paid too much for houses and flats across the city. Mr Morris said then that factors including the credit crunch and interest rate rises were to blame.

One who has had rather a bad repuation for being a bit of a crook in light of being allegedly shot at and overcharging for city centre apartments. I wonder what he will attempt in the future?

Immunda Leodis

October 14th, 2008, 09:08 PM

^^I just pray it has nothing to do with Leeds United!!!

The man is a snake and I can't bring myself to feel even a tad of sympathy for him!

Fred2

October 15th, 2008, 06:06 AM

Article from yesterday's YEP about Simon Morris being made redundant from his recently collapsed property company:

One who has had rather a bad repuation for being a bit of a crook in light of being allegedly shot at and overcharging for city centre apartments. I wonder what he will attempt in the future?

I hold no brief for this fellow but suspect that jealousy plays a part (not to mention anything more sinister) in the attitude displayed towards him. He cannot be the only property entrepreneur who has gone bankrupt in today's climate - though I bet his personal fortune of millions is hardly affected.

What I can't understand is the allegation that dozens of people who bought buy-to-let properties from another of his businesses, Morris Properties Ltd, claimed they paid too much for houses and flats across the city. Did he force them to buy properties at inflated prices at the end of a gun? I am sure that at the time they must have felt the prices were reasonable and they were looking ahead at making their own fat profits. I thought that the binding principle in business is 'caveat emptor'. Their complaints arise from the fact that they paid too much - but only in the light of sudden downward movements in the property market which, it is clear, both buyer and seller did not at the time expect. These prospective landlords deserve as little sympathy as Morris in this regard.

The Oil

October 15th, 2008, 11:15 AM

I hold no brief for this fellow but suspect that jealousy plays a part (not to mention anything more sinister) in the attitude displayed towards him. He cannot be the only property entrepreneur who has gone bankrupt in today's climate - though I bet his personal fortune of millions is hardly affected.

What I can't understand is the allegation that dozens of people who bought buy-to-let properties from another of his businesses, Morris Properties Ltd, claimed they paid too much for houses and flats across the city. Did he force them to buy properties at inflated prices at the end of a gun? I am sure that at the time they must have felt the prices were reasonable and they were looking ahead at making their own fat profits. I thought that the binding principle in business is 'caveat emptor'. Their complaints arise from the fact that they paid too much - but only in the light of sudden downward movements in the property market which, it is clear, both buyer and seller did not at the time expect. These prospective landlords deserve as little sympathy as Morris in this regard.

It's not quite as simple as that. One of Morris's companies bought my house a few years ago. A back to back house with two bedrooms for £120,000 in Meanwood. he subsequently converted it to a five bedroom house and then sold it to a bunch of investors for £250,000. This is a matter of public record, all the details are on nethouseprices.com. The investors bought the house on the strength of the income coming in from 5 lots of rent per month, presumably covering the mortgage. However some investors have tried to sell these houses to free up capital and found out from local estate agents that they are worth nowhere near £250,000.

You're right to suggest that the investors should have got off their arses and gone and looked at what they were buying but there is also the question of why these houses were sold at such an overvalued price and whether the surveyors who valued it had any links to Mr Morris.

Having some personal experience of dealing with Morris I will be shedding no tears for his demise.

wiggleyleeds

October 15th, 2008, 12:15 PM

its hardly his demise tho.. company directors walk away with millions when their companies go "bankrupt"

Fred2

October 15th, 2008, 06:09 PM

You're right to suggest that the investors should have got off their arses and gone and looked at what they were buying but there is also the question of why these houses were sold at such an overvalued price and whether the surveyors who valued it had any links to Mr Morris.

I quoted 'caveat emptor' in my last. Suspected links or not, surely a prudent buyer would have the property valued by his own independent valuer. Again as I said in my last, no buyers were forced to buy at inflated prices.

Lots of sour grapes here.

Wharfman

October 15th, 2008, 11:53 PM

I quoted 'caveat emptor' in my last. Suspected links or not, surely a prudent buyer would have the property valued by his own independent valuer. Again as I said in my last, no buyers were forced to buy at inflated prices.

Lots of sour grapes here.

Here's a little story Fred:

Developer acquires low value miscellaneous residential properties in major UK city, sometimes in a poor condition.

Developer offers to sell properties along with rental income stream from sitting tenants to smalltime buy-to-let investors, some of whom don't live in said major UK city.

Investors don't do their homework (sometimes not visiting said city) and rely on property valuation reports supplied by Developer and procured by him from an 'independent' firm of surveyors.

However, this doesn't matter, the investors reason, as the purchase price is more than supported by the rent paid by the (promised) sitting tenants.

Unfortunately the investors also fail to do their due diligence on the 'sitting tenants' who after the purchase then seem to mysteriously evaporate along with the associated rental income stream.

Surprisingly, when the rental income stream disappears and the investors seek to cut their losses and sell the property, its value seems to have fallen massively.

mike68

October 16th, 2008, 12:23 AM

These storys seem to be backing up what Fred is saying not disproving them.
ie. It is up to the buyer to do their homework.

Fred2

October 16th, 2008, 12:32 AM

These storys seem to be backing up what Fred is saying not disproving them.
ie. It is up to the buyer to do their homework.

I couldn't have said that better myself mike !

TonyYeboah

October 16th, 2008, 12:32 AM

Fred was boo-hooing in the Lumiere thread about all the "unfortunate souls" who fell victim to Leeds' rampant flatbuilding

Now he's taking the hardline? Make your mind up.

Fred2

October 16th, 2008, 05:39 AM

Fred was boo-hooing in the Lumiere thread about all the "unfortunate souls" who fell victim to Leeds' rampant flatbuilding

Now he's taking the hardline? Make your mind up.

Ah , Tony. There is no inconsistency. I said in the Lumiere thread that I am sorry for the poor sods who bought at the top of the market. All (including the sellers) may be victims of this sudden and vicious property downturn but some are more innocent than others. To impart blame to a certain individual/company seller in particular deals when it is so obvious, from the way they are described, that any sharp practice blamed on the seller could so easily have been obviated by a little due diligence exercised on the part of the buyer. Both seem to have been activated by greed, and in the case of the buyer so much so that it clouded his proper judgment. Sharp practice versus naivity/stupidity/lack of common sense - but both motivated by the prospect of fat profits. Who do you feel sorry for? Who deserves our sympathy? I conserve mine for the thousands / millions of decent working people who will be thrown out of their jobs through no fault of their own in the coming months

The Oil

October 16th, 2008, 09:33 AM

I quoted 'caveat emptor' in my last. Suspected links or not, surely a prudent buyer would have the property valued by his own independent valuer. Again as I said in my last, no buyers were forced to buy at inflated prices.

Lots of sour grapes here.

So the blame is heaped onto the buyer alone by you Fred? Even though they may be victims of fraud? A typically unforgiving, miserable, misanthropic stance from you.

I must conceed though that I cannot understand anyone who would buy something for a quarter of a million pounds and not take a look at it first!?

Fred2

October 16th, 2008, 09:53 AM

So the blame is heaped onto the buyer alone by you Fred? Even though they may be victims of fraud? A typically unforgiving, miserable, misanthropic stance from you.

I must conceed though that I cannot understand anyone who would buy something for a quarter of a million pounds and not take a look at it first!?

You are NOT entitled to deduce that from whatever I have written, Oil. If the accusations are correct (and we only have these unproven allegations - I would love to see them tested in court) then there was sharp practice or fraud, but your last sentence tells us why he got away with it - naivety, stupidity and above all greed on the sellers' part. An explanation for your last sentence is the fact that mortgages were so easy to get that as long as the income stream was sufficient the seller would eventually end up with an appreciating asset which he would be able to sell on at great profits. The least you should do in that situation is to make sure your income stream is as guaranteed as possible, and that the property is worth the asking price. Paying for a good valuer and lawyer should surely have uncovered anything dodgy before entering into any contract. and parting with good money - in this case the mortgager's money!

Rob

October 16th, 2008, 11:12 AM

Bradley Hardacre

October 16th, 2008, 12:03 PM

A concensus seems to be building that we are in for a severe global recession which monetary policy will not be able to fix on its own. Reduced taxation may well not be re-circulated in the economy due to the hoarding instinct in hard times, leaving the Keynesian approach of a massive incease in government spending as the govermental weapon of choice. The ubiquious Robert Peston's blog summed this up:

http://www.bbc.co.uk/blogs/thereporters/robertpeston/

Spend, spend, spend?
Robert Peston 16 Oct 08, 08:24 AM

It's like an avalanche.

A snowball of tumbling share prices began in Europe yesterday afternoon, picked up momentum on Wall Street - where the important S&P 500 index suffered its biggest loss in 21 years - and has been battering Asia overnight.

And that in spite of the £2 trillion pounds of taxpayers' precious money committed by governments to bank rescue plans all over the world.

What's more - and probably more worrying for the authorities - is that interest rates charged by banks for lending to each other for three months remain at disturbingly high levels (see my note from earlier this morning for detail on this).

It means that last week's dramatic and co-ordinated cut in interest rates by central banks is having an only limited impact on the cost of credit for businesses and individuals.

What we're witnessing is the limits of what these banking bail-outs can achieve in the face of what increasingly looks like the onset of a global economic recession.

Governments have been able to prevent individual banks from falling over. There's another example of that this morning with the announcement that Switzerland's national bank is lending a staggering £30bn to a special new company set up to extract poisonous assets from the huge bank, UBS.

But they've been powerless to prevent the banks contracting the amount of credit they're providing, which has reduced the ability of companies and individuals to invest and spend, and risks turning an economic slowdown into something rather worse.

That's why the British government is being forced to think about something new: a substantial and sustained increase in public spending to offset the contraction of spending by the private sector (there may be little point in cutting taxes, since nervous consumers and businesses would probably hoard any extra cash that went into their pockets).

A rise in public spending would increase the burden of public-sector debt, which is already - on one measure - above the government's self-imposed limit.

And paying off the increased debt would limit the growth of the economy as and when the economy turns.

There's also a risk of downward pressure on sterling and upward pressure on the cost of borrowing for the government, if the UK's balance sheet were perceived to be weak by international standards.

But ministers increasingly believe that may be a price worth paying, if an old-fashioned Keynesian stimulus to the economy meant that the UK suffered a shallow recession rather than a deep and dark one.

Few regions have suffered from a lack of infrastructure spending like West Yorkshire, especially in transport. If the government is going to spend its way out of recession then the region's politicians really need to be preparing their case to get a big share of the spend, something they have failed to do for years. The case is surely compelling enough. Some good may come out of this mess yet.

Suburban Knight

October 16th, 2008, 12:29 PM

Political lobbying on behalf of the Leeds/WY area has always seemed to be pretty weak in relation to other areas such as Manchester (or anywhere in Scotland!). I really hope this gets sorted out.

Fred2

October 16th, 2008, 12:33 PM

I don't think Morris did anything legally wrong, but morally he is not squeaky clean. He could be accused of abusing his position of trust, although buyers should have checked market values thoroughly, they rightly or wrongly placed some trust in his company to offer a fair price, which much publicity clearly states he did not in many cases.

He would of course argue that he is running a business and the purpose of a business is to make money, but he did have a moral duty too. There are lots of instances where members of the public have to place some trust in a business to set a fair price, as it isn't always easy to quantify a fair price or going rate. That said, with the amount of money we're talking about, I would make absolutely sure I knew what the going rate for similar property was and what the prospects are for letting before entering into any contract.

Quite right, Rob. Morally wrong and legally wrong may not necessarily coincide. If Morris were legally at fault that should be fully tested in the courts. The moral case is more difficult and depends much on the outcome of each particular deal. (It is plain now that this whole economic recession/depression started with the morally indefensible issuing of mortgages to people who the banks knew could not really afford to keep up their payments. It's only very recently that we have come to hear of the term 'moral hazard' in relation to banks - whatever that may mean!)

Some buyers must have made money from dealing with Morris and probably they would not invoke the moral argument. Those buyers who have lost out, might. Any buyers could, with independent professional help, have checked the asking prices and the income stream guaranteed. Perhaps the seller was hoping that there would be enough naive and greedy punters (who would not do even rudimentary checks on the deals) to sell his properties. In that assessment he may have been right (but morally wrong). Most of this would have worked well to the satisfaction of all parties in a rising market - but come the sudden downturn......and it's all gone haywire and the recriminations and accusations fly about.

mike68

October 16th, 2008, 12:44 PM

Surly anyone who bought property in the last ten years payed way over the odds for it, thats what caused the bubble! Are all those sellers con-men?

The Oil

October 16th, 2008, 01:43 PM

You are NOT entitled to deduce that from whatever I have written, Oil.

What other deduction did you think I'd come up with? These pearls of wisdom have all poured from your cup of judgement in the last few days.

Did he force them to buy properties at inflated prices at the end of a gun?

These prospective landlords deserve as little sympathy as Morris in this regard.

I quoted 'caveat emptor' in my last. Suspected links or not, surely a prudent buyer would have the property valued by his own independent valuer. Again as I said in my last, no buyers were forced to buy at inflated prices. Lots of sour grapes here.

To impart blame to a certain individual/company seller in particular deals when it is so obvious, from the way they are described, that any sharp practice blamed on the seller could so easily have been obviated by a little due diligence exercised on the part of the buyer. Both seem to have been activated by greed, and in the case of the buyer so much so that it clouded his proper judgment.

Paying for a good valuer and lawyer should surely have uncovered anything dodgy before entering into any contract. and parting with good money - in this case the mortgager's money!

Greedy fools these people may be but if it's proven that there were duplicitous deeds being practised perhaps then you might feel slightly more charitable towards people who in some cases have lost their entire life savings. At the very least you could attempt to temper your insufferable sanctimony!

Fred2

October 16th, 2008, 02:51 PM

What other deduction did you think I'd come up with? These pearls of wisdom have all poured from your cup of judgement in the last few days.
Greedy fools these people may be but if it's proven that there were duplicitous deeds being practised perhaps then you might feel slightly more charitable towards people who in some cases have lost their entire life savings. At the very least you could attempt to temper your insufferable sanctimony!

The financial woes we are experiencing affect, or will affect, everyone in some way or other - myself already included. Who should we REALLY blame for all this? - let me have your views, Oil. Greed is a powerful human emotion. If duplicitous deeds are proved about this property entrepreneur Morris (and he is but a local example of the many others like him) I would be the first to cast the stone. Until that time, insufferable or not, sanctimonious or not, I think we should all display a little humility and introspection and perhaps apportion some blame to ourselves. Yes that sound even more sanctimonious doesn't it, Oil?

aviator

October 22nd, 2008, 11:35 AM

This piece from today's Business Desk:

City sees developments dwindle

22nd October 2008

By Ian Briggs - Deputy Editor

THE number of developments which have started in a Yorkshire city in 2008 are down by more than 25% on the previous year, according to a new report. According to property consultants Drivers Jonas' 2008 Crane Survey, 15 new construction sites have started in Leeds this year, compared to 22 in 2007.

In the residential sector, new starts decreased by 54% according to the research. The number of developments in the office market remained the same, at five, while student housing slowed slightly in the city.

Four retail schemes have been launched so far in 2008, including Trinity Leeds and an extension and refurbishment of The Headrow shopping centre, which will become known as The Core.

The report said that despite 10 office scheme completions over the last 12 months there was still "little choice" for occupiers, but there was 633,000 sq ft of office space being built across the city.

Drivers Jonas said since its last survey development activity in Leeds had shifted away from residential schemes.

Looking to the future, the report states: "Over the shorter term, Leeds development activity will be shaped by the effects of the credit crunch, which has already had an impact on the scale of residential and office development presently in the city. Many developments have been put on hold, most recently the landmark development Lumiere, and Wellington Place."

However, on a brighter note, Drivers Jonas said pedestrian access in the city would "improve markedly in the coming years" and that work to improve conditions under the "Dark Arches" would boost the growing footfall between the city centre and Holbeck Urban Village.

The report isn't really telling us much that we didn't know already but its statistics are a useful antidote to the gleeful doom-mongers who seem to have been predicting the total collapse of the construction industry in many of the UK forums. On a point of detail, I thought that work had started on the Headrow Centre at the end of last year; and work on Wellington Place has been put back by 3 to 6 months rather than being put on hold.

Val Verde

October 22nd, 2008, 12:53 PM

Bradford based Yorkshire Building Society has just agreed to take over the much smaller Barnsley Building Society (who only have 9 branches) due to the Barnsley losing £10 million in Iceland following the collapse of the financial system in that country. http://news.bbc.co.uk/1/hi/business/7683576.stm

Barnsley Building Society rescued
http://upload.wikimedia.org/wikipedia/en/2/21/Ybs_logo.gif
http://upload.wikimedia.org/wikipedia/en/f/f2/Barnsley-BS-logo.gif
There will be no windfall for Barnsley savers in this takeover
The Yorkshire Building Society is to take over its smaller rival, the Barnsley Building Society.

The Barnsley said it was protecting itself against the possible loss of up to £10m deposited with Icelandic banks.

The deal is the latest among the UK's building societies resulting from the international financial crisis.

The deal is expected to be completed by the end of the year and there will be no windfall for Barnsley savers, nor will there be a vote of members.

"The proposal follows swift, pre-emptive action from the board of the Barnsley in approaching the Yorkshire to seek a merger after the identification of possible losses of deposits with Icelandic banks," the two societies said in a joint statement.

In September, the UK's biggest building society, the Nationwide, agreed to stage a rescue takeover of two small societies, the Cheshire and the Derbyshire.

It said that while it had reserves large enough to absorb the loss of its £10m deposits, it had decided that being taken over by a larger society would be in the best "long-term interests of its members".

Protection

The Barnsley is the latest victim of the implosion of the Icelandic banking system, which has seen hundreds of thousands of UK savers losing access, for the time being, to their money held in accounts of the Icesave internet bank and other Icelandic banking operations.

The current exceptional situation in Iceland and the full extent of the repercussions were beyond anticipation

Steve Mitchell, Barnsley acting chief executive

The society had its money on deposit with Kaupthing Singer & Friedlander (KSF) and with the Heritable bank, owned by Landsbanki, the parent of Icesave.

Personal savers with KSF and the Heritable were offered protection when the UK authorities arranged for their accounts to be taken over by the Dutch bank ING Direct.

However, the Barnsley has found itself in exactly the same position as dozens of local authorities, charities and other organisations who had more than a billion pounds between them on deposit with Icelandic banks.

They were not covered by the UK's Financial Services Compensation Scheme and will have to wait for the outcome of the current negotiations between the UK and the Icelandic governments to see how much money, if any, they will get back.

"The current exceptional situation in Iceland and the full extent of the repercussions were beyond anticipation," said the Barnsley's acting chief executive, Steve Mitchell.

Two weeks ago the Chelsea building society revealed that it had £55m on deposit with Icelandic banks.

Friendly gesture

The Yorkshire is the UK's third-largest building society, with 136 branches and 1.9 million members.

The Barnsley has only eight branches and 60,000 members and is the 34th largest society in the UK.

The Yorkshire says it will now try to recover the Barnsley's money from the Icelandic banks.

If it is successful, it may hand this cash back to the former Barnsley savers and borrowers as an "ex-gratia" bonus payment, minus any legal expenses and tax.

A Yorkshire spokesman described this as a "friendly gesture", but stressed that it was not guaranteed.

Some jobs may go as a result of the takeover.

Staff in the branches, which will keep the Barnsley name, will be kept on, but some jobs may go when the 50 staff in the Barnsley's headquarters are transferred to the Yorkshire's head office.

However, a Yorkshire spokesman said it was hoped that most of the transferring staff could be absorbed without redundancies.

The Building Societies Association (BSA) revealed two weeks ago that its members had about £200m in Icelandic banks, but said this amounted to just to 0.05% of total assets.

Also I noticed that the chief of the Bank of England Mervyn King was in Leeds last night talking about the recession and the rise in unemployment. http://news.bbc.co.uk/1/hi/business/7682723.stm

Electric_City

October 22nd, 2008, 07:07 PM

From the Yorkshire Post Business Section:
Tradition helps Yorkshire Bank beat the blues

Published Date:
22 October 2008
By Ros Snowdon
City Editor

YORKSHIRE BANK has bucked the downturn in the banking sector, reporting solid annual results in what it described as "extremely challenging market conditions".

At a time when other Yorkshire institutions have been devastated by the financial crisis – over the past month Bradford & Bingley has been nationalised and Halifax Bank of Scotland has agreed to a takeover by Lloyds TSB – Yorkshire Bank is holding its own.

Yorkshire Bank and sister bank Clydesdale reported flat pre-tax profits of £343m in the year to September 30 although profits fell in the second half as conditions deteriorated.

Chief executive Lynne Peacock said the banks' reliance on a traditional banking model with no exposure to sub-prime or self-certified mortgages has stood them in good stead.

"These have been incredibly difficult market conditions," she said. "A number of banks have struggled to survive. To come out with pre-tax profits maintained and cash earnings up 2.5 per cent demonstrates the resilience of our UK business."

Yorkshire and Clydesdale, which are owned by National Australia Bank, are in a stronger position than most of their UK rivals. The two banks account for less than 2 per cent of UK mortgage lending – which compares to 20 per cent for HBOS – and retail and long term funding covers 85 per cent of lending.

But they haven't been immune to the downturn. The bad debt charge increased by £56m to £175m while mortgages 90 days or more in arrears have risen from 0.44 per cent to 0.51 per cent. The Council of Mortgage Lenders said the UK average is 1.33 per cent. Retail deposit balances increased 16.7 per cent to £18.2bn, partly driven by savers pulling their nest eggs out of risky lenders.

"We are seen as a safe haven, we are seeing good, steady, strong growth," said Ms Peacock.

Looking ahead she believes the biggest risk is a sharp increase in unemployment and predicts challenging conditions in 2009 before a slow pick-up in 2010.

Yorkshire and Clydesdale are cautious lenders. The average loan to value was 63 per cent in the year to September 30 and has since fallen to 59 per cent – a far cry from the 125 per cent mortgages offered by Northern Rock, which was nationalised earlier this year.

Yorkshire and Clydesdale said they will not be accessing the Government's £50bn bail-out scheme although they have used the Bank of England's Special Liquidity Scheme since the end of September, seeking £1.3bn in funding.

The banks have seen strong growth at their integrated Financial Solutions centres, which offer business and personal banking.

"Our iFS centres have seen good growth in lending and deposits," said Ms Peacock. "Lending tailed off a bit in the second half as we fine-tuned our risk settings. People are reassessing demand. A finance director may decide to postpone a major investment decision for a few months."

Among the top performers were Sheffield where lending volumes grew 33 per cent, Leeds which grew 26 per cent and Bradford 25 per cent.

"Leeds, Sheffield and Bradford have all performed extremely well," said Ms Peacock. "This shows how we are supporting businesses in our heartlands during a difficult year."

She dismissed a recent Australian report by Goldman Sachs JBWere which claimed NAB's British assets were worse than worthless, saying the banks had proved this was not true by maintaining profits at £343m.

Val Verde

October 27th, 2008, 07:39 PM

Article on a redevelopment of the former Prince of Wales Colliery in Pontefract into a business park with possible residential pending on the state of the economy. http://news.bbc.co.uk/1/hi/england/bradford/7691874.stm

Ex-mining site to be redeveloped

http://newsimg.bbc.co.uk/media/images/45144000/jpg/_45144108_9fa2c047-e08a-4d82-aa60-bf800547ed26.jpg
The start date for house building remains under review
Hundreds of homes and a business park are to be built on a 300-acre former colliery site in West Yorkshire.

About 1,000 new jobs are expected to be created after plans to redevelop the former Prince of Wales colliery site by UK Coal were approved.

The scheme had been referred to the government which has decided it should not intervene in the plan.

A date for work at the Pontefract site has yet to be announced. Over 900 houses are envisaged in the plan.

UK Coal's chief executive Jon Lloyd said: "The decision by the secretary of state now paves the way for the regeneration of an area with excellent communication links, a versatile and enthusiastic workforce and a community with a desire to move forward."

Development director Tim Love added: "We look forward to turning the blueprint of a new future into a reality."

Work on removing coal slurry from the site has been under way for some time and the new consent will now allow a further 1.5m tonnes of slurry to be extracted from the former colliery lagoons.

UK Coal said preparations for the site's development were in hand, though the start date for the housing development remains under regular review "due to the continued fragile state of the housing market".

Is this the coal mine site I can see on Google Maps to the south east of J31 of the M62 where it meets with the A639 which should give this development the advantage of close proximity to the motorway network and possibly the adjacent Leeds - Castleford - Pontefract - Knottingley - Goole railway line as well as amenities such as the XScape / Freeport development as well as Pontefract race course and Pontefract and Castleford town centres. It could be potentially good news for this area.

Staying on the same subject as unlikely as it seems, is there any prospect of there ever been any kind of coal mining in West Yorkshire particularly with possible rises in oil and gas prices and instability in locations where that oil and gas originates from? Are the coal reserves under Yorkshire exhaused or is there still ample amounts of coal which could be potentially exploited?

Electric_City

October 29th, 2008, 01:40 AM

From the Yorkshire Post:
Drax and Siemens to build three biomass power plants

Published Date: 23 October 2008

THE owner of Europe's biggest coal-fired power station, Drax in Selby, announced plans today to develop three biomass-fired generation plants in the region, at a cost of £2 billion. Drax, which produces 7% of the UK's electricity, said the development will be taken forward in conjunction with engineering giant Siemens.

The firm said it had secured rights to port sites at Immingham and Hull for two of the proposed plants, while a number of options were being considered for the third site, including land at Drax power station.

Construction of the first plant is set to start in late 2010 and the site will become operational in 2014.

Drax said the new plants would make a "significant" contribution to the UK's renewable energy target as well as supporting security of supply.

The three plants will supply 15% of the UK's renewable power and up to 10% of total UK electricity, said Drax.

Dorothy Thompson, chief executive of Drax, said: "This is an exciting opportunity for Drax to develop its business and to deliver shareholder value by exploiting our core competencies, whilst achieving fuel diversification and carbon abatement.

"We are strongly of the view that investment in the generation sector will provide attractive returns. We believe our venture into dedicated biomass-fired generation underpins our commitment to reducing the carbon footprint of electricity generation from the continued, but necessary, reliance on fossil fuels, whilst delivering secure and reliable supplies of electricity."

Wolfgang Bischoff, managing director of Siemens Project Ventures, said: "We are pleased to be furthering our long-standing relationship with Drax and particularly pleased to be their partner in this new venture.

"We believe that the development of dedicated biomass plant will make a significant contribution to the renewable energy needs of the UK going forward and importantly help to address the challenge of climate change facing the sector. As a leading technology company, we are used to providing solutions to such important issues."

Drax added that since publishing its half-yearly results in August, which showed a fall in profits, trading conditions had improved. It said its full-year results should be "modestly higher" than the current market consensus.

Biomass power plants generate electricity by burning a range of fuels including energy crops, wood chips and other material from renewable sources, the company said.

According to the report on Look North, this could create up to a thousand jobs in the region.

Val Verde

November 3rd, 2008, 09:32 PM

Another merger involving a Yorkshire based building society this time the Skipton Building Society is taking over the Scarborough Building Society with the combined group taking on the Skipton Building Society brandname. http://news.bbc.co.uk/1/hi/business/7706876.stm

Building societies set to merge

http://newsimg.bbc.co.uk/media/images/45169000/jpg/_45169860_c5686995-f679-4ada-bd81-e20f8654a5db.jpg
The new merged group will be called the Skipton Building Society
Skipton Building Society has agreed to merge with the smaller Scarborough Building Society as the mutual sector continues to shrink.

The deal should be completed early in 2009 after the Scarborough approached the Skipton, having suffered from "difficult trading conditions".

They said the enlarged group would be a top five building society with 860,000 members and £16bn of assets.

Some borrowers could see lower interest rates but there will be no windfall.

The announcement comes shortly after the Yorkshire Building Society said it was to take over its smaller rival, the Barnsley Building Society.

In September, the UK's biggest building society, the Nationwide, agreed to stage a rescue takeover of two small societies, the Cheshire and the Derbyshire.

"Reduction in consumer choice is never a good thing and looks set to be one of the long-term legacies of the current crisis," said David Hollingworth, of London and Country Mortgages.

No vote

The Scarborough said that further house-price falls and an impending recession would lead to an "unacceptable reduction" in its capital resources.

We believe this merger is in the long-term best interests of our members, our people and our local community

John Carrier
Chief executive of Scarborough Building Society

Barnsley Building Society rescued
Nationwide rescues small lenders

As with other recent mergers, there will not be a vote on the proposed merger among members of the two societies. It will require approval from the Financial Services Authority and the Office of Fair Trading.

In the short-term, borrowers on a variable rate mortgage with the Scarborough would see a fall in their interest rate, and savers would be on similar or better rates than prior to the merger, the building societies said.

No compulsory redundancies were planned, a statement confirmed, as the enlarged society would maintain a "significant presence" in Scarborough. The Scarborough head office would also continue to be used.

Long history

The Scarborough was founded in 1846 and is the UK's 17th-largest building society with more than 200,000 members across the UK, nine branches and assets of £2.85bn at the end of April.

It will lose its name as the merged society will take the Skipton name.

The larger institution was founded in 1853, is the UK's sixth-largest building society with more than 660,000 members, 84 branches and group assets of £13.4bn at the end of April.

John Goodfellow, chief executive of the Skipton, said he was "delighted" with the proposed merger.

John Carrier, chief executive of the Scarborough, said: "We believe this merger is in the long-term best interests of our members, our people and our local community, and can only serve to enhance the building society sector."

He said they had been in talks about a merger for some time.

Both these men are set to retire at the end of the year. David Cutter will become the chief executive of the new merged society.

I guess this merger will result in closure of either the Scarborough on Albion Street (who only opened about a year ago) or the Skipton on Bond Street although at least it would see a larger regional building society. Also is there any news regarding the status of Leeds Building Society who are the only Yorkshire based building society other than the tiny Ecology Building Society not to have been involved in the recent merger's resulting from the economic turmoil.

Also I have noticed this regarding the HBOS takeover by Lloyds: http://news.bbc.co.uk/1/hi/business/7705525.stm

HBOS deal to save Lloyds £1.5bn

http://newsimg.bbc.co.uk/media/images/45168000/jpg/_45168430_-11.jpg
Lloyds has not yet put a figures on the job losses.
Lloyds has said that its acquisition of HBOS would save it at least £1.5bn ($2.4bn) a year, raising fears of heavy job losses from the merger.

Both banks have also unveiled further write-downs on assets ravaged by the credit crunch, with HBOS hardest hit.

The banks also detailed plans to raise up to £17bn as part of the government's bank bail-out plan.

Unions said that the banks should think about the human cost of the takeover and avoid compulsory redundancies.

Job cuts

Lloyds did not say how many jobs would be cut as a result of the merger, but said there was scope for "significant cost savings" from combining the branches and back offices of the two banks.

It will be profoundly worrying for the 140,000 employees of the two banks, because it implies there could be job losses of perhaps 20,000

Robert Peston, BBC business editor

Read Robert's blog

BBC business editor Robert Peston said the estimated £1.5bn in cost savings from the deal was 50% higher than expected, which could mean heavy job losses.

The savings are good news for holders of Lloyds TSB and HBOS shares, since it means bigger dividends in years to come, our correspondent said.

However it will be profoundly worrying for the 140,000 employees of the two banks, because it implies there could be job losses of perhaps 20,000, he added.

The Unite union said that the two banks needed to think about the human consequences of the merger.

"We believe that if this takeover is managed properly, with the full involvement of the union, compulsory redundancies can be avoided," said Unite joint general secretary, Derek Simpson.

"It is completely unacceptable for the banks to continue fuelling speculation while leaving their worried staff in the dark."

Deal terms

Both banks also said that the market turmoil had reduced their earnings.

Lloyds TSB said third quarter profits at its wholesale and international division had been hit by a £270m write-down on assets hit by global credit problems.

HBOS said write-downs and losses on bad debts for the first nine months of this year now stood at £5.2bn, up £2.7bn from the end of June.

Lloyds said it wants to raise £4.5bn from investors and HBOS is seeking £8.5bn. If the shares are not taken up, the government will acquire them.

The government will also directly buy preference shares in the two banks - worth a total of £4bn.

Under the terms of the government agreement, dividend payouts are restricted, directors' pay limited and banks are required to pay 12% a year interest on the shares.

Lloyds said it hopes to resume payment of dividends in 2009, when it aims to have bought back the preference shares from the government.

Committed

HBOS and Lloyds TSB both said that they were committed to the merger deal despite reports over the weekend that rival bids could emerge.

It also announced that the combined group would be named Lloyds Banking Group and confirmed that the company will have its Scottish headquarters at The Mound in Edinburgh, where it will also hold annual general meetings.

Since the government first brokered the deal to save HBOS six weeks ago, Lloyds TSB has twice renegotiated the terms of its takeover to reduce the amount of stock it will give HBOS shareholders.

HBOS shareholders will now get 0.605 Lloyds shares for every HBOS share, compared with an earlier offer of 0.833. Initially, there had been proposals for a one-for-one share swap.

It would be significantly bad if a large proportion of those 20,000 job losses are in Yorkshire. Also which other entities could potentially bid for HBOS especially as the government seem set on a combined Lloyds-HBOS group and would it be more of a publicity stunt perhaps (such as when Richard Branson bidded for Northern Rock) or more of a serious proposition which is realistically attainable, although I guess something can totally change the situation such as the state of the share price, shareholder approval or even perhaps a government takeover.

Finally has anyone watched Watchdog earlier on BBC 1 about the totally crooked estate agents Providence Properties who have ripped off students by refusing to refund deposits. http://www.bbc.co.uk/blogs/watchdog/2008/11/the_landlord_breaking_his_word.html :bash: http://providenceproperties.co.uk/

Leeds is one of the UK's largest university towns. Every year about 14,000 fresh-faced freshers arrive there all looking for somewhere to live - making them easy prey for the more unscrupulous landlords in town.

Watchdog has looked into some of those landlords before - but the one we've been hearing about this time is something else. Not only has he kept hold of thousands of pounds of students' money, he thinks he's above the law.

His name is Tariq Zaman and he makes a nice living renting out houses to students. But he does his best to keep as much of their money as he can.

In autumn 2006, Paula Radcliffe and three of her friends moved into a house they'd rented from Tariq.

Paula and her flatmates paid him a £1,000 deposit on their flat. They expected to get the money back when they moved out.

Paula says that when it came to handing their keys back they cleaned the property and left it absolutely spotless. Paula and the girl she was living with even got their parents to come and help them clean the house from top to bottom.

No intentions

Despite their efforts Tariq Zaman refused to pay back their deposit.

Eventually Paula and her friends had no other option but to take Tariq to court. They won. The court ordered him to pay back the deposit and the court fees. That was in October 2007 but over a year later, Tariq still hasn't paid them.

When Watchdog went with Paula to ask him why, he made clear that despite the court's judgement, he has no intention of ever paying up. Tariq told Paula and our undercover Watchdog researcher: "Listen mate, County Court Judgement right - it doesn't mean nothing... It doesn't guarantee you that you get your money back."

The story is familiar to Leeds Student Union housing adviser Andrea Kerslake. In the past 18 months the union has dealt with 80 cases of tenants not getting their deposit back. In all these cases the union has written to Tariq Zaman asking him why he's not returning money, and to date they've not had a single response.

No respect

Tariq Zaman clearly has no respect for his tenants. But he's got no respect for the law either. Some 17 people have taken him to the county court to get back money he owes them. All of them won. Even so, as far as we know Tariq still hasn't paid any of them their money.

Most students who rented their flats with Tariq were put in touch with him by a letting agency called Providence Properties Ltd. And that company recently made him a company director.

Providence Properties Ltd has its own peculiar ways of doing business. Even if you don't get Tariq Zaman as your landlord, you could still lose your cash.

Will Edmond rented a flat with Providence Properties Ltd. But oddly, when they asked him for a deposit, they wanted it made payable to a different company - Providence Lets Ltd.

No response

However, when Will tried to get back his deposits suddenly Providence Lets Ltd didn't seem to exist. He didn't get a single response from them despite sending eight emails and countless letters.

Watchdog found that Providence Lets Ltd's registered address is just a garage. But it's also the address Tariq Zaman, now the director of Providence Properties Ltd, gave to the county court as the address to be used when writing to him. And there's another link between the two companies. The director of Providence Lets Ltd, Azeem Zaman, seems to be one of Tariq's family.

Companies House records show that until very recently, both Tariq and Azeem gave the same Leeds address as the place where they lived. For two companies that claim to be completely different they certainly have a lot in common.

Legal responsibility

Under new laws that came into place 18 months ago, Will's money should have gone straight into a government approved bond scheme. He went back to Providence Properties to remind them of their legal responsibility. They still denied it has anything to do with them.

Tariq Zaman is easy to find when he wants your money but not so easy to pin down when it comes to finding out why he won't give it back. He's more than just a notorious landlord, he's a low-rent one - not in a good way. He's broken his word, his contracts and even the law so that he can keep hold of students' cash.

Providence Properties Ltd told Watchdog that they can't help with any of the problems raised with students' deposits. They're keen to stress that deposits for the current year have been properly registered under the government protection scheme.

"All deposits taken for the 2008/09 letting period have been retained by our company and registered under the Government Protection Scheme. All certificates have been made available to tenants. We operate our company within the legislation and have nothing to hide."

They even try to make us feel sorry for them, saying they've been getting a lot of abuse from angry tenants. But after seeing how they treat people coming into their office, it's hard to have much sympathy.

Protect your deposit

The Directgov website advises that from 6 April 2007, all deposits (for rent up to £25,000 per annum) taken by landlords and letting agents for Assured Shorthold Tenancies in England and Wales, must be protected by a tenancy deposit protection scheme.

Within 14 days of receiving a deposit the landlord or agent must give the tenant details about how their deposit is protected, including:

- the contact details of the tenancy deposit scheme selected

- the landlord or agent's contact details

- how to apply for the release of the deposit

- information explaining the purpose of the deposit

- what to do if there is a dispute about the deposit

There is more information on the Directgov website.

Disgusting behaviour and surely this estate agency and the people behind it should be strongly punished.

wiggleyleeds

November 4th, 2008, 01:36 AM

One thing that really got me about watching the watchdog report was that it appeared that despite having a county court judgement - you dont have to pay. What is the point of taking someone to court if at the end of it they dont have to pay :dunno:

Surely there must be laws that mean they are forced to stop trading, or are closed down. I thought if you win a CCJ you can instruct bailiffs on them who can legally enter by force and cease goods. :dunno:

LoveTheCity

November 4th, 2008, 08:44 PM

wiggleyleeds

November 4th, 2008, 11:21 PM

problem is wiggley, they shut down their office then gave a fake address at Wellington place as their head office, so even if they can call in the baylifs they haven't got an address with which they can seize goods..

what about their actual shop that they were still trading at.. the undercover cam went into the shop where they were still trading student lets out :dunno:

LoveTheCity

November 5th, 2008, 12:29 AM

My understanding of it was the students went into the premises with the camera, then when Watchdog went back the notice was up in the window. :dunno:

STOPGO

November 5th, 2008, 09:06 AM

aviator

November 5th, 2008, 10:10 AM

Breaking News, B.B.C. reporting that Carlsberg are closeing down Tetleys within the next two years. A spokesman says its uneconomical to keep two brewerys going in the current economical climate. More news as and when its reported.

And here it is, courtesy of the YEP:

Leeds's Tetley's Brewery to close with loss of 170 jobs

Date: 05 November 2008

By Peter Lazenby

Tetley's brewery in Leeds is to close with the loss of 170 jobs. The announcement was made early today by the brewery's Danish owners Carlsberg.

It brings to an end 186 years of brewing at the Hunslet site. The closure will take place in 2011. Consultations have been started with trades union representatives.

Carlsberg has a second brewery in Northampton. The company said: "Carlsberg UK needs to maximise efficiency in order to remain competitive in the face of increasingly challenging market conditions resulting from falling consumption, higher duties, input inflation and regulatory pressure.

"Unfortunately, in this environment it can no longer justify running two major breweries in the UK." The firm said it would "seek opportunities to redeploy affected employees in other roles within the business where possible and will also provide training and outplacement support to help them find new employment."

Nick Webb, Supply Chain Director of Carlsberg UK, said: "We are announcing the closure proposal more than two years in advance so that our employees are able to prepare for the future.

One worker, who did not want to be named, said: "It was anticipated. It has been on the cards for a while. It's been on the cards since I joined. There have been murmmers ever since I joined three years ago.

"We were told yesterday and there is a briefing we are all going to this morning."

Bradley Hardacre

November 5th, 2008, 10:12 AM

Beaten to the punch by aviator again!

Val Verde

November 17th, 2008, 03:45 PM

Article in today's YEP that Yorkshire would see the second biggest loss in employment by percentage of 6.8% after London. :ohno: http://www.yorkshireeveningpost.co.uk/news/39170000-jobs-to-be-axed.4699643.jp

170,000 jobs to be axed in Yorkshire'

17 November 2008
By Mark Hookham
ABOUT 170,000 jobs will be axed in Yorkshire by 2010, according a dire prediction by council chiefs today.
A report published by the Local Government Association has warned that the recession will swallow 6.8 per cent of jobs in the Yorkshire and Humber region by December 2010. This is the second biggest percentage loss after London, which is projected to see 7.9 per cent of jobs disappear - or 370,000 positions.

The report predicts that there will be "marked differences" in the way the recession impacts on different local areas in the same region.

For instance, the report states that despite the large projected losses across Yorkshire, the "renaissance" of northern cities like Leeds has positioned them "relatively" well to weather the economic storm.

However, nearby Halifax has been pinpointed as one of five towns "most vulnerable to employment decline".

The town's major employer Halifax Bank of Scotland is widely expected to make sweeping job cuts once it has been taken over by Lloyds TSB.

Coun Margaret Eaton, chairwoman of the LGA, said:

"It is clear that a national, one size fits all approach to dealing with the recession simply isn't going to work."

The report, entitled "From Recession to recovery: the local dimension" states that the hardest hit industries will be construction and manufacturing, whilst high skilled industries look set to remain relatively unscathed. Its predictions relate to job losses rather than the number of actual workers made unemployed.

This means it includes jobs which are not filled after a worker leaves or retires.

It states that Yorkshire and the Humber has a "high proportion" of jobs which are likely to be affected by the recession.

l Have you lost your job during the current recession or is your business booming? Ring the YEP newsdesk on 0113 238 8376.

Presumably the reason for such a large loss is due to the large financial sector within Yorkshire which is obviously suffering due to the current crisis in banking. Also it does raise a major point that locations such as Halifax and Bingley (which give their name to two prominent banks which have had to be bailed out) would surely be worse off. What ideas could there be to ensure that such locations are not so serverley affected by this recession and how would Leeds be at a better position to withstand the recession other than having presumably a much broader economy?

Immunda Leodis

November 17th, 2008, 11:27 PM

Article in today's YEP that Yorkshire would see the second biggest loss in employment by percentage of 6.8% after London. :ohno: http://www.yorkshireeveningpost.co.uk/news/39170000-jobs-to-be-axed.4699643.jp

Presumably the reason for such a large loss is due to the large financial sector within Yorkshire which is obviously suffering due to the current crisis in banking. Also it does raise a major point that locations such as Halifax and Bingley (which give their name to two prominent banks which have had to be bailed out) would surely be worse off. What ideas could there be to ensure that such locations are not so serverley affected by this recession and how would Leeds be at a better position to withstand the recession other than having presumably a much broader economy?

I personally think that Halifax is at less of a threat than has been made out there as there are 3 huge office buildings in Halifax and Copley with nobody to take over them, whereas Leeds has 3 HBOS buildings which are expensive sites to run but with large amounts of car parking which may make them desirable to flog on. I also know of at least one Lloyds building which is on Park Row which presumably is an expensive site to rent or would potentially raise a lot if money through a sale due to its prestigious location. There is also a lot of political capital being bargained over with the emphasis seemingly (and really annoyingly as an HBOS employee) being to save jobs in Scotland and a similar movement seems to be gaining pace in Halifax which I believe has a dangerous potential to turn into a geographical bidding war on where is the most 'worthy' place to retain jobs!

Jebus

November 18th, 2008, 12:20 AM

http://i.dailymail.co.uk/i/pix/2008/11/17/article-1086527-028088E4000005DC-103_468x722.jpg

Rob

November 21st, 2008, 11:18 AM

Rob

November 21st, 2008, 11:31 AM

This good news is a little more concrete,

Yorkshire hotels performing well despite crunch

DESPITE the gloomy climate the region's hoteliers are continuing to perform well according to new research.

The report, from PKF, shows an overall increase in occupancy with average room rates and rooms yield across the region up compared with the same period in 2007.

In South Yorkshire, the year to date figures show a 2.5% increase on last year in average room rate charges from £63.63 to £65.19, and a 1.6% rise in rooms yield - the revenue made on each available room. The occupancy level is slightly down by 0.8%. The figures in Sheffield for September also show the average room rate in the city's hotels is up significantly by 12.3% from £60.81 to £68.31, and the rooms yield by more than 8%. There was, however, a slight dip of 3.7% in the occupancy levels in the city for the same month.

Moving into West Yorkshire, the latest year to date figures for Leeds, show a significant increase of 6% in rooms yield from £49.48 to £52.47. The findings also show that the average room rate in the city is up by 2.8% from £68.44 in 2007 to £70.34 in 2008, plus a 3.2% rise in occupancy. The figures for September also show the average room rate in Leeds has increased by 3.8% from £69.12 to £71.74, and the rooms yield by 1.4%. There was a slight dip of 2.3% in the occupancy levels, but at 79% levels are still above the national average of just over 76%.

Heading to North Yorkshire, the year to date figures for York show a considerable increase of 5.7% in rooms yield from £56.11 to £59.30. Today's findings also show that the occupancy levels in the city are up by 1.2% from 77.6 per cent to 81%, combined with a 1.2% increase in average room rate. Occupancy for York's hotels is up by almost 1%t, and the rooms yield by 0.6%. There was a slight dip of 0.4 per cent in the average room rates, but the year to date figures show a more promising outlook for the year overall.

Yorkshire's performance throughout the month was buoyed by an influx of students and their families arriving to the three cities to start university courses, along with key events such as 75th Anniversary Gala concert in Sheffield, the opening of Opera North's Madam Butterfly in Leeds and the Mighty Boosh playing the Grand Opera House in York.

Mark Lister, partner in charge for PKF based in Leeds, said: "The region's hotels continue to deliver great results for September maintaining a good position for the year. Despite the economic downturn, Leeds, Sheffield and York hotels seem to be remaining strong, highlighting the popularity of our major Yorkshire cities. The region's academic institutions and key events continued to draw in the crowds throughout September, increasing awareness of what we have to offer here in Yorkshire."

thebusinessdesk.com, 20 Nov 2008

Val Verde

November 21st, 2008, 09:14 PM

The lead story today on Radio Aire this morning was that the first signs of recovery ('the green shoots of recovery' as they put it) were starting show in the city centre residential market, and Reeds Rains were opening a new estate agent for the city centre market.

Well imo it is certainly way too early to see if there will be any recovery any time yet considering there have been large scale job cuts up and down the UK as a result of the current recession especially as Leeds is a large financial centre which is obviously been affected and surely that would affect the residential market especially as the current rate of house prices must go down substantially as they are so over valued. Were Radio Aire paid by Reed Rains to give out a positve story about the city property market? ;)

This good news is a little more concrete,

[color=navy]Yorkshire hotels performing well despite crunch

Wonder how come it doesn't mention that the Mighty Boosh also performed or will be performing in Leeds, Harrogate, Wakefield and Huddersfield in addition to York which would surely have seen some usage of hotel rooms. http://en.wikipedia.org/wiki/Boosh_Live Still it does highlight that there should be more big events held in Leeds to encourage hotel usage (which would come from the future Leeds Arena as well as any possible expansion in conferencing in Leeds as well as long term expansion in business in Leeds as well as possible increased tourism to the city as a base for touring Yorkshire perhaps?

Mikeyp

November 21st, 2008, 09:58 PM

Hard to see signs of a recovery when we see friends and colleagues in our business been made redundant everywhere :ohno:

Metr0l1nk

November 21st, 2008, 10:04 PM

The 'recovery' will be the fact that Aug 2008 sales were down 98% compared to Aug 2007.

This was due to confusion over whether stamp duty would be binned.

In Sept and Oct, the figure is still down over 40% on the respective 2007 figures (which is worse than July), since this is not as bad as the August figures (as they were never going to be given only 1000 houses in the WHOLE UK swapped hands during that month) some people are spinning it as a recovery.

The fact is we're still at the start of the decline, any talk of a recovery is ludicrous.

Plenty of estate agents will still go bust, and there will be plenty of high profile bankrupcies.

In another thread someone claimed that as Zurich has previously made money, they are a safe company, to which I say AIG.

Rob

November 22nd, 2008, 01:35 PM

Brown brings Cabinet to Leeds

THE cabinet will meet next week in Leeds in a historic show of support for the city's under-pressure economy. The YEP has learnt that Gordon Brown will chair a specially-convened cabinet meeting at an undisclosed location in the city on Friday. Ministers are likely to later fan out across West Yorkshire, to meet members of the public and carry out a series of high profile visits to major companies to learn how the region's businesses are coping with the deepening recession.

It will be only the second time the UK cabinet has met outside London since 1921, when Lloyd George's senior ministers met in Inverness. Gordon Brown announced earlier this year plans to hold more meetings outside the capital and in September took his top team to Birmingham. Before that Cabinet session the Government held a meet and greet with around 250 people. Afterwards there was an economic event attended by business leaders. The cost of the day's activities came to £61,920.

Next week's meeting will be the first session of the cabinet following the publication of the pre-Budget report on Monday. The PBR is expected to include dramatic tax cuts and public spending increases, which the Government hopes will kick-start the ailing economy.

The YEP understands that one of the major reasons for picking Leeds is due to fears over the impact on the city region of future job losses at Halifax Bank of Scotland and other financial services firms. A Westminster source said: "Some of the cabinet probably think that Leeds is all about mines and mills still but this is a modern city with a growth rate of 8 per cent, even with the credit crunch. "Hopefully they will stay long enough to see the afternoon rush hour. "Leeds has massive transport problems and perhaps if the cabinet experiences some of that, it will help them put together some transport solutions." The cabinet includes three West Yorkshire MPs: Environment Secretary Hilary Benn (Leeds Central), Schools Secretary Ed Balls (Normanton) and Chief Secretary to the Treasury Yvette Cooper (Pontefract & Castleford).

YEP, 22 November 2008

di Livio

November 22nd, 2008, 08:06 PM

Leeds No.1

November 23rd, 2008, 02:38 PM

http://www.yorkshireeveningpost.co.uk/news/39Leeds-economy-could-be-in.4721592.jp
'Leeds economy could be in for rough ride'

22 November 2008
By David Marsh
Municipal Reporter

THE Leeds economy could be in for a damaging time over the next few years as the UK heads into recession, the city's council leader has warned.
And Coun Richard Brett pledged that the local authority would do all it could to minimise the impact of the downturn and ensure the city had the skills needed to remain productive and competitive.
Leeds has enjoyed enormous success over the past 15 years and has one of the most diverse and fastest growing economies in the country, with the second largest employment total outside London.
More jobs are expected to be created over the next 10 years. But as a leading financial centre – 119,500 people work in the sector – Leeds is particularly exposed to the trouble facing financial services.
Statement
In a statement given to a meeting of the full council, Coun Brett (Lib Dem, Burmantofts and Richmond Hill) said Paul Rogerson, the council's chief executive, was working with the rest of the Leeds city region and Yorkshire Forward, the region's development agency, to make the case for Leeds.
He said: "We believe that Leeds and the city region can offer a significant competitive advantage to the UK and global financial and business sectors.
"The concentration of professional business services in Leeds over the last two decades has created a critical mass of business expertise to meet all but the most specialist requirements of businesses based regionally, nationally and globally."
An all-party council delegation recently travelled to London to discuss with Yorkshire's regional minister, Rosie Winterton, what steps could be taken to help Leeds weather the downturn.
Ideas discussed included skills training, infrastructure investments in the Aire Valley and bringing forward spending on major transport and school projects.
Coun Brett said: "Investments like these will mean we have not only the skills, but also the infrastructure to support our plans for Leeds's future."

TonyYeboah

November 26th, 2008, 04:42 PM

Hotel business in Leeds is booming, despite the current economic climate, a new report has indicated.

According to figures from accountants and business advisers PKF, there has been an increase of six per cent in rooms yield - up from £49.48 to £52.47, reports the Yorkshire Evening Post.

Furthermore, occupancy levels in September were found to be above the national average of 76.4 per cent at 79 per cent for the month, which may be of note to those interested in hospitality recruitment.

According to the report, Leeds' performance had been bolstered by the arrival of students undertaking courses at the city's two leading universities.

The opening of Opera North's Madam Butterfly at the Leeds Grand Theatre and the Carnival Messiah at Harewood House were also attributed to the strong performance.

Mark Lister, partner in charge at PKF, based in the city's Queen Street, said: "Leeds continues to attract UK and international visitors, allowing hoteliers to maintain a strong position within the sector."

http://news.caterer.com/article/view/hotel/18894469/leeds-hotel-business-going-strong-/

Seems to be healthy enough. I know Fred was concerned that there were too many hotels in Leeds a little while back, hopefully this news will ease his concerns

Fred2

November 26th, 2008, 07:42 PM

di Livio

November 26th, 2008, 08:02 PM

^^
I noticed this as well today, have they got lost on the way to Manchester? I
t should be a nice opportunity to show off the city to the London media, but in reality it will end up with lots of "up in freezing/frozen/arctic Leeds" non-stories.

(Marge Simpson) Hmmm.

Leeds weathers storm as cuts fail to impress

By Jonathan Brown
Tuesday, 25 November 2008

Almost at the exact moment that Alistair Darling sat down in the overheated chamber of the House of Commons, shoppers in Briggate in Leeds were hurriedly putting up their umbrellas to shelter against another freezing shower of sleet sweeping in off the Pennines. Of all the cities that reinvented themselves in the 1990s, few could claim to have been quite as successful as here. Under New Labour, the skyline has transformed itself with glass and steel apartment blocks for the legions of young professionals enticed to work in the thriving financial sector. The city centre is now able to boast some of the most famous names in retail.

Of course, everybody knows what has happened to the buy-to-let market and plans for skyscrapers in Leeds appear firmly on hold. Yorkshire's financiers – HBOS workers among them – are also wondering what has gone wrong. Somehow keeping people shopping will be critical to the future wellbeing of the regional economy.

And some people were helping to contribute to that regional economy yesterday by stoically carrying on spending.

One of those, Gurdeep Bharth, 21, said: "I'll never give it up. The credit crunch is only a problem if you cannot control your money and I am quite good at that. How much I spend depends on what brands I'm buying. I've spent £150 on this coat but I've got two jobs so I can afford it," she said. But not everyone will find themselves in as secure a financial position – and able to splash out – as Ms Bharth.

Yesterday, retailers on Briggate were wondering whether a small cut in VAT will really be enough to persuade people to keep dipping into their pockets.

A student, Joel Marris, 22, was making his way up the hill clutching an Argos bag with a new £13 Scrabble set inside. "I'm trying to put it out of my mind to be honest, though I will spend a bit less this year," said the final-year English and French undergraduate, one of 124,000 students in Leeds. "But I am worried about the employment market, which is really competitive at the moment."

A human resources manager, Paul Ferrie, 42, who is married with two young children, said: "The reduction in VAT will help a little bit but it is not going to persuade me to come out and make me shop any more."

And his wife, Vicky, 36, an accountant currently on maternity leave, agreed. "I would like to see the interest rates coming down and see our monthly mortgage rates reduced. Gas and electricity are going sky high. It is not like you have any spare money at the moment to go shopping with," she said.

A housewife, Jean Dawkins, 60, was less equivocal: "Cutting VAT is ridiculous – what difference will it make? If the Chancellor wants to do something to help the economy he should resign. What he is doing is simply holding the country to ransom and we will have to repay all this money later."

But there were some glimmers of optimism. A businessman, Francesco Mazzella, was announcing the opening of his latest venture yesterday – a new Champagne bar. "People want quality, not quantity," he said. That, no doubt, is a sentiment the Chancellor may also want to drink to.

aviator

December 1st, 2008, 10:20 AM

In today's YEP:

Road clear to create 27,000 Leeds jobs

By Nigel Scott
Business Editor

A key milestone in the planned long term economic growth of Leeds will be reached next week. The creation of the £32m East Leeds Link Road is intended to pave the way for the creation of up to 27,000 jobs spread across 400 hectares of land and a million square metres of office and factory space.

The road is a vital link with the Aire Valley Leeds development zone – which is already being described as a new economic powerhouse for Leeds over the next 15 to 20 years. Next Friday, Coun Andrew Carter, deputy leader of Leeds City Council, will be joined by Leeds MP and Government Minister Hilary Benn to unveil the new road signs that point the way towards the Aire Valley development area.

When work on the £32m road is completed in the next few months it will connect Leeds city centre to the motorway network via junction 45 of the M1. A number of businesses, including specialist print packaging company Robertsmart and carpet wholesaler Mercado, have already relocated to new premises in anticipation of the road's completion.

Planning permission has also been granted on major development sites fronting and adjoining the route of the new road. Leeds City Council says that with the potential to attract major levels of inward investment and new business activity, the area is poised to become a key driver for the future prosperity of Leeds and the surrounding region.

Coun Carter, who is the authority's executive board member for city development, said: "Aire Valley Leeds promises to lead the city's economic development over the next 10 years with a million square metres of employment space creating up to 27,000 jobs.

"The link road will open up this new commercial powerhouse for the city, connecting it directly to the motorway network and bringing major new development and inward investment opportunities. Despite the current economic difficulties, Leeds is looking to the future and Aire Valley Leeds will have a major role to play in generating growth and prosperity for the city and the wider region."

Peter Beaumont, chairman of the Aire Valley Leeds investors forum, added: "The opening of the new link road has been long awaited and really signals the start of the next phase for the Aire Valley in Leeds. The scale of the opportunity, the ongoing activity to deliver environmental improvements and the key sites that will provide the homes and jobs that the city needs now and into the next decade, will be clear for all to see."

Electric_City

December 1st, 2008, 12:57 PM

Thanks Aviator. There's a Flash animation of the ELLR on the Aire Valley website which I've not seen before. You can get it here:
http://www.airevalleyleeds.com/aveadocs/fly.html

Electric_City

December 9th, 2008, 08:14 PM

This is from today's Yorkshire Post:Think tank says Yorkshire Forward should merge with its neighbours

Published Date: 09 December 2008
By Jonathan Reed, Political Editor

THE quango charged with boosting Yorkshire's economy should be merged with two others to form a single agency fighting for northern England, according to a report published today.
The influential Centre for Cities research institute calls for the shake-up because, it claims, the Government's nine regional development agencies (RDAs) – which spend more than £2bn a year – have failed to reduce the North-South divide and tackle regional inequalities.

While the South-East boomed in the seven years after the RDAs were set up in 1999, economies in other regions have failed to catch up, the report says.

It calls for some Southern RDAs to be scrapped or scaled down, while it says Yorkshire Forward should be merged with its counterparts in the North-West and North-East to form a single Northern Development Agency from 2011. A single Midlands agency could also be created.

But the findings were angrily dismissed by Yorkshire Forward.

Chief executive Tom Riordan said at this time of economic uncertainty the RDA needed "to be focused on supporting our regional businesses rather than navel-gazing". The report "reflects a naivety about how you get things done and delivered to help businesses on the ground".

He also said it ignored "important economic variations" between Northern regions and "their strong independent identities".

The report is the latest intervention in a vociferous debate over the future of RDAs. Official policy is expected to be unveiled in the coming months.

Dermot Finch, director of the Centre for Cities, said: "There is great uncertainty about the future of RDAs. The Government says they are all crucial, but the Tories say they are terrible. The truth is somewhere in between: RDAs are needed more up North, less in the Greater South-East...

"RDAs should be streamlined, and focused on boosting growth in lagging areas. After the next general election a single development agency for the North of England would be a good way forward."

Yorkshire Forward is widely regarded as having been one of the more successful of the RDAs, enjoying political support and claiming to have helped create or save thousands of jobs. But the agencies have been widely criticised for lacking accountab-ility and spending vast amounts of public money which have failed to reduce the gap in economic growth rates between regions and to promote growth in all regions.

The forthcoming creation of regional select committees aims to help tackle the accountability issue as RDAs take on extended powers for planning and housing, but Centre for Cities says this does not go far enough.

It says a merger would benefit cities through the creation of a unified "Northern" brand and it would be more strategic, building better links between the biggest Northern city-regions, Leeds and Greater Manchester.

The new agency would be directly accountable to Government and directly responsible for promoting economic growth and creating jobs in the North.