Effect of Falling House Pricings in Different Areas

Knight_of_the_Orient

Hi All,

I am a FTB who has just had an offer accepted on a property in Leyton, East London.

Needless to say this is a very big commitment especially given the current economic climate and the difficulties in predicting quite where the housing market will bottom out.

I had been looking for quite a while (1 yr), while prices initially were falling there seems to have been minimal decrease for quite a while. I think the reason why prices have not been affected as much because of the "Olympic" effect, (Leyton is one stop on the tube to Stratford and the property would be just 12-15m walk to the new massive Westfield shopping centre and Stratford International Station).

My question is does anyone have any experience/advice on how property prices near you have been effected by regeneration projects, i.e. does it make them significantly more immune from other market forces?

Thanks
:cool:

Doozergirl

I'd say that mat many areas that need regeneration, even with the money actively being spent, can very easily become completely undesirable again. There's a reason many places need regenerating.

In a falling market, 'Up and coming' suddenly becomes forgotten as 'already there' becomes affordable.

The Olympic effect makes no sense to me. Everyone started buying in London sending house prices soaring after the news of the successful bid. The reasoning for paying those rocketing prices was often that they were expecting prices to rise near to the Olympics. Hello? :wall:

saffiedale_2

we live in walsall area and on a house that would of been 150 grand 18 months ago would been around 130 here. but the odd one is starting to sell. did you get much off?

Knight_of_the_Orient

I think I got an OK price, the property was attractively priced compared to some I'd seen and it ticked all of my boxes.

It's an interesting point about "already there" becoming more affordable negating the effect of any regeneration. However I have to say as a single person "already there" is still miles out of my reach in London, despite earning what I would categorise as a good salary...just another property market vicious circle I guess!!

giruzz

Knight_of_the_Orient wrote: »

Hi All,

I am a FTB who has just had an offer accepted on a property in Leyton, East London.

Needless to say this is a very big commitment especially given the current economic climate and the difficulties in predicting quite where the housing market will bottom out.

I had been looking for quite a while (1 yr), while prices initially were falling there seems to have been minimal decrease for quite a while. I think the reason why prices have not been affected as much because of the "Olympic" effect, (Leyton is one stop on the tube to Stratford and the property would be just 12-15m walk to the new massive Westfield shopping centre and Stratford International Station).

My question is does anyone have any experience/advice on how property prices near you have been effected by regeneration projects, i.e. does it make them significantly more immune from other market forces?

Thanks
:cool:

Hi,

can I ask you how much did you pay?I'm looking to buy in Leytonstone (which is the next stop after Leyton) and it appears that most seller still trying to sell at pre-crunch prices.

It is very difficult to find a 1bed flat for less than 160/170...the only available are repos or units that require refurbishment.....

giruzz

geoffky

prices have dropped 16.5% according to the land registry.

Thats:

£25,387 per year
£2,116 per month
£488 per week
£70 per day
£3 per hour

and set to continue

Knight_of_the_Orient

geoffky wrote: »

prices have dropped 16.5% according to the land registry.

Thats:

£25,387 per year
£2,116 per month
£488 per week
£70 per day
£3 per hour

and set to continue

Well this is obviously the crux of my question; the average drop may well be 16.5% but clearly prices don't fall across the country at the same rate. How much of this decline is driven by massive falls in the price of new builds in cities such as Manchester/Leeds etc rather than in London....

VfM4meplse

KotO and giruzz, if you are looking for a medium term gain (5 years plus) I would recommend you go for it but only at a price you can afford. OF course it is likely that prices will drop further over the next few months but sit tight and ride it out for now.

There is a lot of activity going on in the 4 Olympic boroughs inc Waltham Forest (Leyton Marshes being one of the areas being developed currently), in other countries the Olympic regeneration effect has had an almost consistent impact on reviving the fortunes of areas previously considered to be less than desirable. (I think the exception may be Athens where the legacy costs were seen to be excessive).

Good luck with the sales and do PM me if you would like me to recommend a good GP in your area.

brit1234

Knight_of_the_Orient wrote: »

Well this is obviously the crux of my question; the average drop may well be 16.5% but clearly prices don't fall across the country at the same rate. How much of this decline is driven by massive falls in the price of new builds in cities such as Manchester/Leeds etc rather than in London....

What you have to remember is bank funds are now well below pre bubble levels. So where prices don't exactly fall evenly every where they are still expecting big falls across the board for the next year or two. I would wait and rent especially as rents are also fast falling.

John_Pierpoint

The Zoopla web site gives an indication of what is happening in the neighbourhood where you are trying to buy.
There is no substitute for knowing the market yourself as averages give no indication about the condition of the property.