London property market plunges

macaque_2

How many DIY property speculators have we had lecturing us on how 'the London property market is different and will always hold its value'.

Bottom line? Investments can go down as well as up and it doesn't matter what the investment is.

Average house price plunges by as much as £50,000 in a year

http://www.thisislondon.co.uk/standard/article-23628054-details/article.do?ito=newsnow&

Thrugelmir

I read recently that 2/3 of sales in 2008 in London were made to BTL investors.

So hardly surprising that prices are falling by significant amounts.

StevieJ

macaque wrote: »

How many DIY property speculators have we had lecturing us on how 'the London property market is different and will always hold its value'.

Bottom line? Investments can go down as well as up and it doesn't matter what the investment is.



http://www.thisislondon.co.uk/standard/article-23628054-details/article.do?ito=newsnow&

Are you telling us the housing market is falling, I think you are a bit late

Cissi

It's been the case for a while already, for the few properties that have actually sold:

http://www.ft.com/cms/s/0/c0caa2ae-ad00-11dd-971e-000077b07658.html (FT 1 Nov -08, "London House Price Falls Accelerate")

and more recently:
http://www.ft.com/cms/s/0/93130bae-a7b9-11dd-865e-000077b07658.html (FT 13 Jan -09, "Slowest House Sales in 30 Years Reported")

There is still a stand-off between buyers and sellers, but hopefully not for much longer...

chucky

yawn - not another Daily Mail story, but anyway let's play your game for a while Macaque.

the article says "London house prices fell by an average 10.9 per cent in the past year. New figures released today show the worst-hit area saw average sales drop by £50,000." By reading that I assumed that the average price was around £500k and 10.9% was the average £50k drop.

I then read this in the same article "the average London price now stands at £279,000" so which shall we take the £500k or this average or is the journalist being creative and doing the usual Daily Mail thing. This Is London is a Daily Mail paper by the way...

on a brighter note though your usual predictions of 70% are a bit far away and definitely off the mark now - it would take at least 9 years to get to these price drops.

New recruit for the 70% club
http://forums.moneysavingexpert.com/showthread.html?t=1423263

and I'm not a denier in any way because London property prices are definitely dropping, but not as much as you claim or would even wish for.

mitchaa

London has always been the place where house prices were riduculously high, everywhere else was just high.

This means the capital has the longest and furthest to fall. 50%+ in the capital without a doubt.

There are a lot of people in London with false 'wealth' just because they bought at the right time 7-8yrs ago (My SIL included)

StevieJ

mitchaa wrote: »

London has always been the place where house prices were riduculously high, everywhere else was just high.

This means the capital has the longest and furthest to fall. 50%+ in the capital without a doubt.

But increasing in Scotland :rotfl:

chucky

mitchaa wrote: »

London has always been the place where house prices were ridiculously high, everywhere else was just high.

This means the capital has the longest and furthest to fall. 50%+ in the capital without a doubt.

just like people would generalise (badly) about Scotland and even Aberdeen - you're doing a bit of that about London. yes some areas will be hit hard, others won't be hit as hard.

i doubt 50% but if you look at price drops you'll definitely have big amounts being taken off due to the high prices for properties that were over-priced or even over-valued initially.

mitchaa

StevieJ wrote: »

But increasing in Scotland :rotfl:

You are correct:D

The Nationwide did report a 0.1% increase, yes increase in the last 3mths of 2008 for Scotland as a whole.

It was released in the Nationwides 1/4 report earlier this month

http://thescotsman.scotsman.com/mortgageandpropertynews/Scotland-bucks-UK-housing-slump.4846978.jp

Wookster

chucky wrote: »

yawn - not another Daily Mail story, but anyway let's play your game for a while Macaque.

the article says "London house prices fell by an average 10.9 per cent in the past year. New figures released today show the worst-hit area saw average sales drop by £50,000." By reading that I assumed that the average price was around £500k and 10.9% was the average £50k drop.

I then read this in the same article "the average London price now stands at £279,000" so which shall we take the £500k or this average or is the journalist being creative and doing the usual Daily Mail thing. This Is London is a Daily Mail paper by the way...

Two points:

Never assume, lest you make an a s s of you & me.

All these reports are lies, dammed lies and statistics. You need to consider the factors which affect property prices - movement of people, herding habits, the state of financial services now and what it will be like when the dust settles.

chucky

Wookster wrote: »

Two points:

Never assume, lest you make an !!! of you & me.

All these reports are lies, dammed lies and statistics. You need to consider the factors which affect property prices - movement of people, herding habits, the state of financial services now and what it will be like when the dust settles.

absolutely correct - one unemployment hits people will see the results.

just been looking at the averages from the Land Registry for the same area and they are dropping but not as much as people would wish for.

http://www1.landregistry.gov.uk/houseprices/housepriceindex/report/default.asp?step=4&locationType=0&area=Kensington+And+Chelsea&reporttype=3&datetype=1&from1=11%2F2007&from2=11%2F2008&image2.x=18&image2.y=24

[IMG]http://www1.landregistry.gov.uk/houseprices/housepriceindex/report/default.asp?g=1&gt=2&a=Kensington+And+Chelsea&s=01 November 2007&e=01 November 2008&t=1[/IMG]