Crazy London prices

thequant

I'm simply not seeing this in London.


What I have seen is that properties in £200k-£220k region have now jumped over the stamp duty threshold to around £275k. But that is asking prices, I'm not actually not seeing them sell.


Asking prices are up, no doubt about that, ridiculously up, about 30-40% up on 6 months ago. In one case someone is wanting £400k, where the last 3 sales in recent months for identical houses in the same street went for £240k-£250k. No house in that street has ever broken the stamp duty threshold.


Another phenomena I have seen return is the "sale by tender", "full and final offers must be received by x", yet every single one of them is still on the market after x has passed. The only difference is the "sale by tender" tag has been dropped.


prices are recovering, but they are in line with the stats, approx. 8%. These stats are compiled on real sales, the 30-40% asking price rises we are seeing are just pure and simple ramping.


What I suspect is happening is sellers are returning to the market now it is recovering, but EA's are way overvaluing property in order to secure instructions.

AndyGuil

They tend to hover around the threshold for a while. It only takes one or two to sell over it and then they all start moving up again.

Metranil_Vavin

The same friend originally put her flat on the market in October last year at £249,950. There was an open house viewing, and by the end of the weekend she had 2 offers of 250k. She accepted the offer from the buyer who had all their finances etc in order.

Unfortunately the house she had put an offer on in Kent fell through, so things stalled, and about 4 weeks later the agent advised her that the value of the flat had increased in that time. The buyers of her flat immediately upped their offer by 25k to 275k! This was agreed, but friend couldn't find anything she wanted to buy, and with Christmas coming along instructed the agent to stop any further viewings until the new year.

Cue now, and the flat is now on for 299k. It's just barmey that in the space of about 3 months the asking price has increased by 50k.

I just wonder how long this will continue. We are totally priced out of buying anything bigger in our area

thequant

Metranil_Vavin wrote: »

The same friend originally put her flat on the market in October last year at £249,950. There was an open house viewing, and by the end of the weekend she had 2 offers of 250k. She accepted the offer from the buyer who had all their finances etc in order.

Unfortunately the house she had put an offer on in Kent fell through, so things stalled, and about 4 weeks later the agent advised her that the value of the flat had increased in that time. The buyers of her flat immediately upped their offer by 25k to 275k! This was agreed, but friend couldn't find anything she wanted to buy, and with Christmas coming along instructed the agent to stop any further viewings until the new year.

Cue now, and the flat is now on for 299k. It's just barmey that in the space of about 3 months the asking price has increased by 50k.

I just wonder how long this will continue. We are totally priced out of buying anything bigger in our area

will be interested to see how long it takes her to sell at the new price. As you say it's barmy they can go up £50k in 3 months.


But as in my post above, I'm seeing this happen to asking prices, but not seeing it in actual sales.

Metranil_Vavin

What amazed me was the speed that the original buyer apparently came back offering 25k more!

Will report back when I speak to her and find out how it all went.

thequant

Metranil_Vavin wrote: »

What amazed me was the speed that the original buyer apparently came back offering 25k more!

Will report back when I speak to her and find out how it all went.

That is surprising especially considering the jump over the stamp duty threshold.


Anecdote from my area, there is a street near me, 3 sales went through in the summer for between £280-£300k


One then sold in Sept/Oct for £350k, I didn't believe it when the EA told, but it turns out it is true. It's in no better condition than the others.


Someone on the same street then puts there's up for £380k, it's been sat there since Oct without a single viewing.

katejo

thequant wrote: »

That is surprising especially considering the jump over the stamp duty threshold.


Anecdote from my area, there is a street near me, 3 sales went through in the summer for between £280-£300k


One then sold in Sept/Oct for £350k, I didn't believe it when the EA told, but it turns out it is true. It's in no better condition than the others.


Someone on the same street then puts there's up for £380k, it's been sat there since Oct without a single viewing.

In my road nothing had sold over the stamp duty threshold by this time last year. My neighbour's house is bigger due to loft conversion but I was still surprised to see an asking price of 380 K in October . I don't know the sold price but it did sell very quickly. Now other similar properties are asking around 380 to 420 K

moneyistooshorttomention

dacouch wrote: »

I've been in quite a few flats and houses worth £10m to £30m and they are really really impressive.

It really is a different world.

I know of an exclusive block of 100 plus flats where the management fees are £300k a year and the owners pay £150k for each underground car parking space. Many of the owners have two or three spaces and being at this end of the price bracket is one of numerous properties they own around the world so they only spend literally two months a year in London

Personally, I wouldn't rate it as "playing the jealousy card" to say that it's obscene for someone to have that amount of money that they can afford even one of those flats with one of those parking spaces...never mind having other homes as well.

jvpari

we have a two-bed maisonette with front and back garden and garage. With two young boys we would happily stay here for longer. But, we can afford a mortgage for a £250k property so if we don't sell up now, £250k wont be worth much round here in a year or two. So we have sold the flat and bought a run down two bed house for £250k!

t0rt0ise

In my street there's a house, a normal mid-terrace Georgian property, going for just shy of 3 million. And people ask me why I rent and don't buy!