£100K homes return to London

Yoshua

RDB wrote: »

Studio flat with parking

http://www.rightmove.co.uk/property-for-sale/property-20112352.html

17 Bourdon Road, Penge SE20, Guide Price £20,000 Studio flat for sale

What about this one in Luton for 39K http://www.rightmove.co.uk/property-for-sale/property-23742722.html

But flats like this are just not selling even in London, even for 20 or 30K.

I am waiting for a proper house in London for about the same drop in price.

neilp

This thread has been enlightening - a lot of these dirt cheap prices are in OKish areas (though I note that the NW10 one is a regulated tenancy, which partly explains the price). How much lower than this do people think it could go?! I realise that in most of the housing market the worst is probably yet to come, but I don't see how prices CAN fall much further at the very bottom!

novazombie

RDB wrote: »

Studio flat with parking

http://www.rightmove.co.uk/property-for-sale/property-20112352.html

17 Bourdon Road, Penge SE20, Guide Price £20,000 Studio flat for sale

There are more and more super cheap places not selling at auctions that I have noticed. Its not that they dont reach their reserve its that there are not enough bidders. The few bidders that I saw were just interested in bigger houses and not paying much for them either.

The small flats even in London just are not selling even for these super cheap prices. I cant believe it 20K for flats in London and they still dont sell. How much cheaper do they have to be before someone will buy? Maybe it is the mortgage rationing thing?

neilp

Absolutely - I would have thought BTLers would be interested in these. I would have said there was no way I would get into BTL (especially in the current climate), but it is quite tempting to buy one of these in cash, do it up, and let it!

novazombie

neilp wrote: »

Absolutely - I would have thought BTLers would be interested in these. I would have said there was no way I would get into BTL (especially in the current climate), but it is quite tempting to buy one of these in cash, do it up, and let it!

But will rents drop by the same ammount when the market is flooded with these dirt cheap flats? Everyone and his uncle will be thinking the same for 20K flats in London. Its the tenants market, they can choose the cheapest flats to rent!

hethmar

So you dont think the House Price Crash crowd are right that the market has bottomed now then?

neilp

For what it's worth, no I don't - this is but one segment of the market (on this I do agree with them). While I don't see how these prices can fall that much further, most of the rest of the market has plenty further to fall, particularly once unemployment starts rising.

It will be interested to see whether the London rental market does collapse. On that I am more sceptical. Rents have obviously been falling, and no doubt will continue to do so, but a steady supply of tenants is likely to continue (both those who are waiting to buy and those who would not be potential buyers), so demand can only fall so far, while supply can only be met up to a point.

robin_banks

tbh I think not, consumer confidence is low and jobs in every sector are insecure.

RDB

hethmar wrote: »

So you dont think the House Price Crash crowd are right that the market has bottomed now then?

Only very short sighted people think we are at the bottom already.

All these changes with mortgages will just make the crash last longer and more serious. Prices have a lot further to fall yet............

hethmar

To be fair, the "flats" are one room bedsits requiring complete modernisation and the prices are guide prices for an auction. You cant tell what they will go for as yet.