Sky News find 40% drops...

Chris2685

Is it just me, or in line with house prices falling, rentals seem to be increasing?

sabretoothtigger

If less people own their own homes that would make sense in high demand areas

wolfman

chucky wrote: »

out of interest - what do people that live in London on this forum think of Herne Hill?

Prices there are dropping quite quickly. More then other places I've looked. Personally I think it's ok. "Earthy" is a term I like. I've looked there and Tulse Hill and Streatham as I can't afford Wandsworth / Putney.

I think I'll be waiting a bit longer though. Just to see if prices drop to the point where I could afford one of those areas. I'm in no rush.

GDB2222

sabretoothtigger wrote: »

Hey that's a £250k stapler he's got, just like mine! Pretty good for an intern,huh?

wolfman

Chris2685 wrote: »

Is it just me, or in line with house prices falling, rentals seem to be increasing?

In the case of my last flat which was rented out only recently, I'd say the opposite. When I took on that flat, we were the first there and literally had to run to the cash point to get the holding fee before anyone else.

Upon moving out it took around 12 viewings. People didn't seem interested for the price.

There's one of two things happening.

1) People are holding off so there are more renters on the market, hence more demand so prices do go up.

2) People can't get the price they want for their house, so rent it out instead for the time being. Add to that all the vacant new builds, and any redundancies (especially luxury banker like flats), there are potentially more places to rent. Hence prices actually goes down. Especially if the luxury apartments are to be filled, they drop their prices, and everyone else has to bump down a level.

As to which I don't really know. Had experiences of both.

WTF?_2

wolfman wrote: »

In the case of my last flat which was rented out only recently, I'd say the opposite. When I took on that flat, we were the first there and literally had to run to the cash point to get the holding fee before anyone else.

Upon moving out it took around 12 viewings. People didn't seem interested for the price.

There's one of two things happening.

1) People are holding off so there are more renters on the market, hence more demand so prices do go up.

2) People can't get the price they want for their house, so rent it out instead for the time being. Add to that all the vacant new builds, and any redundancies (especially luxury banker like flats), there are potentially more places to rent. Hence prices actually goes down. Especially if the luxury apartments are to be filled, they drop their prices, and everyone else has to bump down a level.

As to which I don't really know. Had experiences of both.

People are worried for their jobs and choosing to look at ways of saving cash on their rent. Depending on circumstance you can move to a cheaper area or find a cheaper place in your current area, move into a HMO for big cost savings (usually) or even go and live with family for a bit. Also, if you can save a bit of money then falling house prices mean that buying could actually be a possibility in a year or two's time for many for whom it wasn't before.

Previously, with lots of cash about, no employment worries but no realistic hope of buying a house there would have been lots of professionals willing to pay good rents for entire small houses or 2-bed flats, even for average properties.

This means that LLs of properties which were formerly attracting good rents are coming under pressure to reduce rent to get the punters in. Seems to be happening at all levels as at the very top the loss of jobs and bonuses in the financial sector is hitting hard too. At the low end of the ladder, anecdotal tales suggest an outflow of economic migrants. Probably same prices but a 'richer' clientelle now.

I'd imagine that really good places like 2-bed flats/houses in nice areas with good transport links are going to be holding up pretty well. A combination of affordability and location.

Dithering_Dad

Someone found a couple of houses with large reductions from outrageous initial asking prices.

Move along, nothing to see here.

HammersFan

carolt wrote: »

40% falls - are you mad, you doomster - they'll never happen! Shortage of land, rising population, huge pent-up demand, blah blah.

What do you mean? It already has?

Bug ger.

It only means something to the person who manages to actualy buy a house for 40% less than would have paid for same house at the peak. That would be a helluva nice deal. Cash-ready FTB'er and BTL'ers will be back in for decent deals at reductions a lot less than that (for the typical decent property in a decent area) I think.

Dithering_Dad

HammersFan wrote: »

It only means something to the person who manages to actualy buy a house for 40% less than would have paid for same house at the peak. That would be a helluva nice deal. Cash-ready FTB'er and BTL'ers will be back in for decent deals at reductions a lot less than that (for the typical decent property in a decent area) I think.

Who are not risk adverse and worried that they could possibly buying into a falling market.

Strange how when houses go up, the equity gain is 'not real money', yet when houses fall in value, the equity suddenly becomes VERY real.

HammersFan

Dithering_Dad wrote: »

Who are not risk adverse and worried that they could possibly buying into a falling market.

Strange how when houses go up, the equity gain is 'not real money', yet when houses fall in value, the equity suddenly becomes VERY real.

Is there a single investment without risk? People have clearly been diving into the stock market with much less than 40% drops. Identifying the real value of something and calling the bottom of the market depends a lot on luck and judgement.