How far will prices fall in London?

chucky

Really2 wrote: »

I am not trying to make out they will be the same price as the rest of the UK.

Just that the %age ratio between earnings (in the locality) and property values needs to be nearer the UK average.

It looks to be at least 1 multiple more than the rest of the UK at the moment.

at a guess this is maybe due to foreign investment or because there is more cash (not equity) in London.

Really2

chucky wrote: »

at a guess this is maybe due to foreign investment or because there is more cash (not equity) in London.

If the average wage is £50k in london and £30K everywhere else

London = house is 5.5 X £50K
other UK = house 4.5 X £30K

I can't see how cash is a difference.

We do have jobs and save above Watford gap too.;)

chucky

Really2 wrote: »

If the average wage is £50k in london and £30K everywhere else

London = house is 5.5 X £50K
other UK = house 4.5 X £30K

I can't see how cash is a difference.

We do have jobs and save above Watford gap too.;)

i know, i know. but we're all immigrants in London
i worded the cash bit badly...

i'm thinking along the lines that homes could be sold for cash by foreign investment at HPI prices that allows them to move on without increased debt. this would only be for central london i guess.

Really2

chucky wrote: »

i know, i know. but we're all immigrants in London
.

We love you really, we are only here to make Londoners feel richer.;)
(not really they built the M25 to keep you lot out of the rest of the country:D )

PS re read that I am not anti imagration by the way just having a bit of a jolly with you "satheners":))

Yoshua

I have been talking to a few property agents and they are all getting desperate. It seems rent prices are down (as well as house prices) and so is demand, I was asking why that is and the answer seems to be more people are sharing houses these days or bigger households are living in smaller places.

There are many agents going out of business but this is old news. The ones still with their head above water are sounding very desperate indeed.

This all indicates to me that things are not looking good for London prices next year.

novazombie

Yoshua wrote: »

I have been talking to a few property agents and they are all getting desperate. It seems rent prices are down (as well as house prices) and so is demand, I was asking why that is and the answer seems to be more people are sharing houses these days or bigger households are living in smaller places.

There are many agents going out of business but this is old news. The ones still with their head above water are sounding very desperate indeed.

This all indicates to me that things are not looking good for London prices next year.

I thought that with houses just not selling that rental demand would be up in London.

But you are right rents are dropping at about the same rate as house prices, at least here in NW London.

Its very noticable how many places to rent are empty for long times, even after lowering prices.

chucky

novazombie wrote: »

I thought that with houses just not selling that rental demand would be up in London.

But you are right rents are dropping at about the same rate as house prices, at least here in NW London.

Its very noticable how many places to rent are empty for long times, even after lowering prices.

it's not going up and not really going down - but if you want to let something quickly you will have to drop your price. don't forget leaving a property empty for one week is nearly 2% of your annual rental income, so 5 weeks is 10% and worth dropping your asking price slightly to avoid this.

rents will drop as people are not being as 'loose' with their money and are being more careful. instead of looking at a Zone 1 they will look at a Zone 2 area just outside Zone 1. Rents will have to drop, I've dropped one about 7% (but got it on a three year non-housing act contract) recently so as not to leave it empty for a longer period.

if your letting a property take anything up to a 10% drop. you have to be realistic, it's not the best time of year and the best circumstances to try to let a property anyway.

wolfman

I've noticed a slight drop in London. I only say as I was looking at renting a different flat back in September, and am now thinking about it again for Jan/Feb.

Not by much, maybe £100 pcm less on the type of property I was looking at. Most noteable is that there are quite a lot more. Maybe sellers choosing to rent their flat, added with vacancies due to redundancies.

Still quite expensive to rent individually, but if I do move in with the missus we can share the rent costs, and still save a lot each month.

HankMcSpank

stevetodd wrote: »

My parents live in bedlington (15 miles North of Newcastle) in a 3 bed semi that would in this market now have an 'asking price' of about 140k. I would like to get them down to Dorking as they are both in their 70's. We are looking at this now with a capital injection from me. So as well as looking at investment property I am keeping an eye on 2 bed houses (they need a smaller place now). It really highlights the difference when you look at 2 different geographical markets, semi's in Dorking would have an asking price of about 325-350k and 2 bed terrace about 260-290k (in a good street).

There's quite clearly a problem with the discrepancy....it's not enough!

At £140k, the asking prices for houses in Bedlington should be much less than that.

I was born/bred in Ashington ...the average wage in locality must be about £20k - therefore the max average mortgage ...4 x 20k= £80k + a second income say £15k....total = £95k (with just enough disposable income left for a pint at the Red Lion on the roundabout)

chucky

brit1234 wrote: »

Started to see individual 50% falls on some London properties. I predict a large amount of 50% drops by Christmas 2009 fueled by buy to let collapses.

50-60% falls in general at the bottom.

some people do love a bit of jackanory and must be very cold sitting all this time on the top of Hope Mountain :rotfl: