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 Post subject: London has popped ,
PostPosted: Thu Jun 05, 2014 12:13 pm 
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Homeless

Joined: Jun 5, 2014
Posts: 5
London has finally popped

according to the evening standard sellers are being forced to slash prices


wrong link posted, correct one to follow :oops:


Last edited by Redserr on Thu Jun 05, 2014 1:14 pm, edited 1 time in total.

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 Post subject: Re: London has popped ,
PostPosted: Thu Jun 05, 2014 12:34 pm 
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Property Magnate

Joined: Jan 29, 2013
Posts: 547
That article was published in April 2008.


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 Post subject: Re: London has popped ,
PostPosted: Thu Jun 05, 2014 12:47 pm 
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Single Home Owner

Joined: Apr 19, 2013
Posts: 165
Ha ha


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 Post subject: Re: London has popped ,
PostPosted: Thu Jun 05, 2014 3:08 pm 
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Real Estate Developer

Joined: Aug 24, 2007
Posts: 757
That story was definitely in the Evening Standard on Tuesday 3 June, I read it on the train on the way home from work but I can't find the story online now for some reason. The gist of it was that an unprecedented number of home sellers are being forced to cut asking prices as the market 'cools down'. Here we go with the soft landing b*llocks.


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 Post subject: Re: London has popped ,
PostPosted: Thu Jun 05, 2014 3:18 pm 
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Neo Landlord

Joined: Apr 24, 2009
Posts: 253
pollydolly wrote:
That story was definitely in the Evening Standard on Tuesday 3 June, I read it on the train on the way home from work but I can't find the story online now for some reason. The gist of it was that an unprecedented number of home sellers are being forced to cut asking prices as the market 'cools down'. Here we go with the soft landing b*llocks.


Overheated home market set to cool in the capital

Nicholas Goodway
Jonathan Prynn, Consumer Business Editor

London's “intense” overheated property market is set to cool down this summer as buyers “just say no” to massively inflated prices, one of Britain’s biggest mortage lenders warned today.

Graham Beale, chief executive of the Nationwide, said there were growing signs of a “natural correction” in values — after more than five years of remorseless rises fuelled by an acute shortage of homes and waves of wealthy foreign buyers.

The comments from Britain’s third-biggest home loan provider are the most high profile warning yet that London’s remarkably long-running property boom may be approaching the buffers.

They come after Bank of England Governor Mark Carney said the rampant property market posed the biggest threat to the economic recovery. Official figures show average prices in the capital surged to a record £459,000 — up 17 per cent — in the year to May. But Mr Beale said the London market is now finally starting to cool of its own accord with increasingly nervous buyers starting to walk away from over-ambitious asking prices. “At some point buyers just start saying no,” he said.

Mr Beale told the Standard: “I have been talking to a lot of London estate agents recently. They said that the market at the start of the year had been frenetic but it is now showing signs of plateauing out to be just very busy. A hint of natural correction is going on. It’s very early and I can’t be conclusive at the moment.

“My view is that in London we will see a natural correction through the summer months. The intense heat does seem to be dissipating a bit.”

Although it is highly unlikely that the London property market will suffer a full-blown crash, Mr Beale’s comments will increase expectations that the pace of price hikes will sharply slow down and could even fall slightly.

Agents said a range of factors have led to the cooling in the London property markets and a shift in the balance of power from sellers to buyers.

Growing fears about an interest rate rise later this year have persuaded some potential buyers to hold back rather than take on huge new mortgages.

Meanwhile lenders are under growing pressure from the Bank and the Treasury to rein in “irresponsible” lending. Last week Lloyds Banking Group, owner of the Halifax mortgage brand, said it would cap mortgages of more than £500,000 at four times a borrower’s salary.

At the upper end of the market there are increasing jitters about the risk of a mansion tax on homes worth more than £2 million from an incoming Labour or Liberal-Democrat supported administration after next year’s general election.

Last month the Duke of Westminster’s Grosvenor Estates sold a £240 million portfolio of central London properties in what was seen as another sign that the property market could be close to a peak.

Grosvenor’s chief executive Mark Preston said he had been “concerned about the high level of residential prices for some time”.


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 Post subject: Re: London has popped ,
PostPosted: Thu Jun 05, 2014 5:54 pm 
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Property Magnate

Joined: Dec 29, 2012
Posts: 641
Nama has got rid of a lot, battersea power station, some of the top hotels etc. Wonder how much is left and what window there is left for an exit.


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 Post subject: Re: London has popped ,
PostPosted: Fri Jun 06, 2014 11:23 am 
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Homeless

Joined: Jun 5, 2014
Posts: 5
Cant find the link on line, looks like it was removed
here it is

Image


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 Post subject: Re: London has popped ,
PostPosted: Fri Jun 06, 2014 12:19 pm 
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Nationalised
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Posts: 8930
Donning my conspiracy theorist's hat, it is interesting that this report appears just as it looks like the authorities are looking at ways to quell the London bubble.


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 Post subject: Re: London has popped ,
PostPosted: Fri Jun 06, 2014 2:31 pm 
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Single Home Owner

Joined: May 15, 2010
Posts: 121
Location: London
That article is actually quite funny. Our London house is under offer. The Estate agent aggressively pushed for us to price it obscenely as far as we were concerned, but all 3 came up with the same suggestion, so we went for it and got it.
Two weeks now before exchange of contracts are due and we have had at least 3 hand written notes through the front door from various estate agents, all claiming that the market has lifted substantially since we went sale agreed, and suggesting we pull out of the sale and re market our house for more.

As far as we are concerned, the London market is being fuelled by greedy estate agents and crazy tactics that ensure any chain is likely to fall apart unless you have a cash buyer or a buyer with a bridging loan.

I am horrified by what I saw on the RTE iplayer last week, a show where queues of buyers are all the way out the door in Dublin - it's not anything like that busy here. Despite the claims in the papers here about scores of buyers jostling for properties, we had six people view in total, one offer, 3 weeks to sale agreed. Fairly typical from what friends tell me.

Maybe the market here is cooling, maybe it isn't. It was fired up by estate agents, we found their expectations quite shocking. There is no feeding frenzy by buyers that we can see, even though we read about it in the papers before we put our house on the market. The job market in London is on fire. Where is the confidence coming from in Dublin?


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 Post subject: Re: London has popped ,
PostPosted: Fri Jun 06, 2014 11:10 pm 
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Single Home Owner

Joined: May 26, 2014
Posts: 100
Any market where the government gooses the price by 20% is gonna show a sharp jump.
Combined with the the recent mortgage rule changes we are seeing a situation akin to the removal of MIRAS in the lates 1980s; a rush to buy.

Its the same in the car market here too (UK).
The govts cash-for-shitheaps brought forward years of demand during the crash.
Theres still no credit in the market (banks) but the carbuyers need to sell so the deals atm are astonishing.
The car companies have to provide the finance (shadow banking) to purchase their product.
I saw a brand new Skoda Superb Estate (very big car, basic model) for 5k down and £199 per month @0% over 5 years. I'd be mad not to on those terms.
Some volkswagen dealers are offering 0% on second-hand cars. (second hand over here can mean a pre-registered but basically undriven car).
I was offered a 6 month old vauxhall zafira with less than 1k on the clock for £8K, financed. Thats a new car.

Big variations in property prices too.


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 Post subject: Re: London has popped ,
PostPosted: Mon Jun 16, 2014 2:09 pm 
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Homeless

Joined: Jun 5, 2014
Posts: 5
prices down 0.5% in June and a 23% jump in the number of homes on the market according to Rightmove

https://uk.news.yahoo.com/london-proper ... wn#phlUi5U[url][/url]


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 Post subject: Re: London has popped ,
PostPosted: Mon Jun 16, 2014 2:52 pm 
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Property Magnate

Joined: Jan 29, 2013
Posts: 547
It would be hard to see MyHome coming out with stuff like this

http://www.rightmove.co.uk/news/house-price-index/june-2014

Quote:
Key points
New seller asking prices at virtual standstill, up by just 0.1% (+£272) this month
More regions fall than rise, with London’s 0.5% drop a combination of buyer reluctance and surge of over 20% more sellers rushing to market this month
Early signs of belated return to balance between supply and demand:
- New seller numbers up 9.6% year-to-date on 2013
- Many committed and motivated buyers have already bought, releasing some pent-up demand and contributing to a slowdown in buyer activity
- Prices in some areas especially in London may have hit an affordability cap
- ‘Clumsy’ implementation of Mortgage Market Review (MMR) is a factor in the drop in mortgage approvals, causing ‘headache and heartache’
Relief for the Bank of England as market shows signs of cooling


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 Post subject: Re: London has popped ,
PostPosted: Wed Jun 18, 2014 10:20 pm 
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Under CAB Investigation

Joined: Feb 1, 2008
Posts: 2776
Location: God's Country
House prices at ten times average salary

http://www.telegraph.co.uk/finance/personalfinance/houseprices/10905333/House-prices-rise-to-ten-times-average-salary.html


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 Post subject: Re: London has popped ,
PostPosted: Thu Jun 19, 2014 3:54 pm 
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Homes 'earn' Londoners more than their jobs as house prices soar

http://www.standard.co.uk/news/london/h ... 58704.html

Quote:
London’s homeowners “earned” almost £50,000 from the value of their property last year as prices surged by 11.6 per cent.

The average home was valued at £441,000 in November, up from £393,000 a year previously, according to the latest official figures.

With the average London salary standing at £37,000 it means many homeowners are making more from their homes than their jobs. Prices in the capital are 18.1 per cent higher than the pre-recession peak in January 2008.

But the rise — driven by a chronic shortage of new homes, growing confidence in the recovery and insatiable global demand for London property — will renew fears that the capital is in the grip of a dangerous housing bubble.

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A housing boom is the economic equivalent of a tapeworm infection Tim Harford

"Those who yearn for the end of capitalism should pray for government by men who believe that all positive action is inimical to what they call thoughtfully the fundamental principles of free enterprise." - JK Galbraith


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 Post subject: Re: London has popped ,
PostPosted: Thu Jun 19, 2014 3:59 pm 
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Too Big to Fail

Joined: Sep 13, 2012
Posts: 4444
Carrot and stick wrote:
Homes 'earn' Londoners more than their jobs as house prices soar

http://www.standard.co.uk/news/london/h ... 58704.html

That's from January, was reported by FT last Sept.

Newer news here:

http://ftalphaville.ft.com/2014/06/17/1 ... -crash-17/

Quote:
The capital gain in the year to April is £71,000. The median London house now costs £485,000.

If we take the absolute amount added in the last year as a unit of measurement, £71,000 equals one Bubblestep, before April 2013 it had taken two years to add a Bubblestep to the average London house price. Before that it had taken five years to add a Bubblestep.

So the next Bubblestep should be marked around October, right?

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