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Equilibrium's finance and investment news roundup

In this week's roundup we report on Michael Kors agreeing to buy luxury shoemaker Jimmy Choo in a £896 million deal, a ban on sales of new 'leasehold' houses, a fall in property transaction for the third month in a row, and warnings that the UK economy could be harmed by a rise in personal loans. 

Jimmy Choo to be bought by Michael Kors for £896m

Luxury shoemaker Jimmy Choo is to be bought by the retailer Michael Kors in a deal worth £896 million. The agreement will see Jimmy Choo becoming a wholly-owned subsidiary of Michael Kors.

The shoemaker, famed for its stiletto heels, put itself up for sale in April this year after JAB, the majority owner, announced its primary focus would be on consumer goods.

Michael Kors, Chief Creative Officer of Michael Kors Holdings, said: "We admire the glamorous style and trendsetting nature of Jimmy Choo designs. We look forward to welcoming Jimmy Choo to our luxury group."

New 'leasehold' house sales to be banned

New 'leasehold' house sales in the UK that involve a freeholder collecting ground rent from the owner of the lease are to be banned after the government unveiled new proposals on Tuesday.

The move comes amid concerns that such a setup is leading to some buyers having to contend with sharply rising costs for years after the sale.

Communities Minister Sajid Javid described the practices as unjust and unnecessary. He said: "Our proposed changes will help make sure leasehold works in the best interests of homebuyers now and in the future."

HMRC: Number of property transactions falls again

New figures from HM Revenue and Customs (HMRC) have revealed that the number of property transactions in the UK fell for the third month in a row in June.

It was shown that 96,910 homes were bought and sold during the month. This represented a 3.3% drop on May's figures and is the lowest total since October 2016.

The figures do, however, represent a 1% increase compared with June 2016. These numbers, though, were impacted by new additional stamp duty rates introduced in April last year.

Personal loan rise 'could damage UK economy'

A Bank of England official has warned that the UK economy could be harmed due to a significant climb in personal loans. In a speech to the Institute for Risk and Uncertainty at the University of Liverpool, the Bank's Financial Stability Director Alex Brazier explained that household debt can be dangerous in excess.

He noted that personal loans, outstanding car loans and credit card balance transfers have climbed by 10% over the last year.

Mr Brazier also warned against high street banks becoming complacent, stating: "The sorry fact is that as lenders think the risks they face are falling, the risks they - and the wider economy face - are actually growing." 

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