London property prices could halve if the euro collapses

StevieJ

So if the Euro collapses that Spanish Costa Villa or even Italian Amafi/Lake Como pad will be up for a song

macaque_2

Conrad wrote: »

One fundamental you ignore is desire and income expectation. If the Euro burns, if anything London will be even more attractive as a beacon.

The original use of the word beacon is a warning fire that people use to alert others; so your choice of words seems right.

'Desire and expectation are not fundamentals. A high proportion of London income has been dependent on financial services and much of this has relied on churning, miss selling and the creation of debt. From where we stand, London incomes face substantial declines over the next few years both in terms of income and job numbers (this process has already started).

In the end over decades people make big capital in London, then move out to the sticks and so far it's always been an excellent Tax free way to gain financial security. I doubt this will ever change.

This has been true in the past but you can only march your troops to the top of the hill once. Anyone buying in London today faces huge costs for servicing the debt and little or no prospect of capital gain.

10 years from now you will grind your teeth as yet another 'Escape To The Country' show reveals a smug London couple with £1m equity to use on moving to Hampshire.

'Escape' is probably the right word. A lot of people are trapped in their homes and houses are not selling.