The Times - UK (2022-04-08)

the times | Friday April 8 2022 43

Business

Cryptocurrency regulations should
help to mitigate the risks posed by
digital coins while encouraging “res-
ponsible” innovation, according to
the US Treasury secretary.
Janet Yellen, who has expressed
her concerns previously over the
rising prevalence of cryptocurrencies
including bitcoin, is playing a leading
role in the Biden administration’s
efforts to expand its oversight of the
market.
“Our regulatory frameworks
should be designed to support
responsible innovation while manag-
ing risks — especially those that
could disrupt the financial system
and economy,” she said in a speech at
the American University in Wash-
ington.
As financial institutions on Wall

Callum Jones
US Business Correspondent

Crypto regulations must encourage

responsible innovation, says Yellen

Street and beyond look to become

“more involved” in digital assets,

Yellen added that regulatory frame-

works “will need to appropriately

reflect the risks of these new

activities.”

Cryptocurrencies are

digital coins that, unlike

traditional currencies, are

not upheld by governments

or central banks. Interest in

bitcoin, the world’s largest,

has surged but it continues

to endure volatile swings

in value. Yesterday it

declined by 1.3 per cent

to $43,434.87.

Yellen, 75, a former

chairwoman of the

US Federal Reserve, America’s cen-

tral bank, emphasised that regula-

tions around digital currencies

should where possible be “tech-neu-

tral” and focused on the risks posed

to consumers and companies.

“For example, consumers,

investors and businesses

should be protected from

fraud and misleading state-

ments regardless of whether

assets are stored on a balance

sheet or distributed

ledger,” she said.

“Similarly, firms

that hold custo-

mer assets should

be required to

ensure those

assets are not

lost, stolen or

used without

the customer’s

permission.”

Janet Yellen

wants digital

currency rules to

focus on users

Enterprise

Network

Funding shortages

Anthony Price has lobbied

the chancellor and his local

MP to find sources of

funding to help SeedL, his

online training business, to

grow — but says support

is lacking.

T

House prices rose for a ninth month in a

row in March, hitting record highs as

booming demand combined with a dearth

of properties for sale.

Prices increased by 1.4 per cent com-

pared with February, according to the

latest house price index from Halifax, the

high street lender. It was the biggest

monthly jump since last September.

The average value of a UK home is now

£282,753, up more than £28,000, or 11 per

cent, over the past year. Annual price

growth has not been this rapid since the

months leading up to the global financial

crisis in 2007.

“The story behind such strong house

price inflation remains unchanged —

limited supply and strong demand, despite

the prospect of increasing pressure on

households’ finances,” Russell Galley,

Halifax’s managing director, said.

“Though there is some recent evidence of

more homes coming on to the market, the

fundamental issue remains that too many

buyers are chasing too few properties.”

The southwest of England has over-

taken Wales as the region where prices are

rising most quickly. Over the past year,

prices here have jumped by 14.6 per cent,

the highest rate of annual increase since

September 2004. Neverthless, growth in

the principality remains strong, with

prices having jumped by 14.1 per cent in

the past 12 months.

London remains the region with the

slowest house price growth. Prices are

Prices are soaring

in housing market

5.9 per cent higher in the capital than they

were a year ago.

Halifax’s data echoes trends identified

in the rival Nationwide house price index

last week. The building society reported

that prices were at record highs and were

rising at their fastest pace in 18 years.

Since the first lockdown in March 2020,

average house prices in the UK have

climbed by 18.2 per cent, or nearly £44,000

in cash terms, according to Halifax.

With a lack of second-hand supply,

would-be movers have turned to new

homes instead, with the big developers

reporting soaring demand at their sites.

So far the market has shrugged off

concerns about the squeeze on incomes

brought on by surging inflation and rising

interest rates, which make mortgage re-

payments more expensive. Galley expects

such pressures to take their toll eventually

and the market — and prices — will cool.

“Buyers are dealing with the prospect of

higher interest rates and a higher cost of

living,” he said. “These factors should lead

to a slowdown in house price inflation over

the next year.”

Andrew Wishart, at Capital Economics,

the consultancy, said: “The strength of the

Halifax data will add to concerns that

house prices are becoming detached from

economic reality. Indeed, the average

house price has risen by 18.2 per cent since

the start of 2020 while average pay has

risen by 9.9 per cent over the same period.

As a result, the house price-to-earnings

ratio has risen from 7.8 to 8.4, surpassing its

pre-financial crisis peak of eight.”

Goodwill proved a bad basis for the Westleigh deal

Countryside bought the

Leicester-based Westleigh

for £135 million in 2018

(Tom Howard writes). Much

of that consideration was

“goodwill”, reflecting the

rival builder’s “contracts

and relationships in place

with local authorities”.

That is unusual in the

construction sector, where

consideration generally is

based on the value of the

assets.

The purported benefits

of the tie-up have not

materialised. Margins at its

sites are narrow and the

finish on some of the

homes has not been up to

scratch. In short,

Countryside overpaid.

When put to him that,

given the myriad issues,

Countryside would have

been better off not doing

the deal, John Martin, its

chairman who joined last

year, said: “I would share

that sentiment.”

Countryside paid out

£1.4 million in “advisory

costs” linked to the

Westleigh acquisition. It

does not break down who

received what, although

its 2018 annual report lists

Linklaters, the law firm,

and Barclays and Numis

banks among its advisers.

Tom Howard

Countryside’s

acquisition of

Westleigh, based in

Leicester, was part of

its drive to look beyond

its traditional markets

in London and the

southeast

COUNTRYSIDE

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