Crazy London prices

Fraise

thequant wrote: »

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.

Where in London are these properties that are/were on at 200k? I didn't think there were any places for that price in a London, unless it's in the grottiest part of London in the worst road, and is an local authority studio flat maybe?

Are these the ones that have suddenly jumped to 275k? How many months did it take for them to jump up?

If they're not selling then they must be in a terrible state in a terrible road, and in a terrible area, because most people would do anything to pay so little for a London property.

nickyg2000

In Oxford Its been 12 to 16 months for 40% rises. These are mostly asking though have to see what they actually sell for

nickyg2000

Metranil Vavin, Did the buyers not get put off by the noise from above and below which you said was quite bad?

Metranil_Vavin

Apparently not, although it could just have been the noisy neighbours upstairs were out at work when the viewing was going on. It's mostly in the evenings when you can hear them crashing about up there.

My friend often moans about the noise, it's typical of that kind of conversion, the sound proofing is terrible.

She also claims there is a ghost in her flat that she has seen several times. I think she probably hasn't mentioned that either! :rotfl:

I spoke to her earlier. She is away until tomorrow but is going to fill me in when she has spoken to the agent.

Jason74

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.

Similar where I am. Properties that were selling for £260-£270k only six Months ago are now on sale for north of £300k and going to best and final offers within days. It really is beyond bonkers, and shows no sign of letting up any time soon.

cheap-information

Bought my flat in September 2013 for £355k and flat underneath me which is identical has just gone for £430k 5 months after. Pretty ridiculous and doubt it can continue, young professionals soon won't be able to afford rent, let alone buying!

nickyg2000

75k in 4 months, why does anyone work. Just flip flats in London ;-)

Halle71

Last March/April you could get a decent 3 bed Edwardian terrace in our area for £289k and now run down 1930s properties (think probate!) are going for a minimum plus.
We've got an extended Edwardian terrace which, to our astonishment was valued at £500k last June and then at £600k by the the same estate agent in November based on actual sales of comparible properties.
It's mental.

isisini

I bought in November 2012 for £310k - a house two doors down with the same layout but much less well maintained sold just before Christmas for £420k. In my area it seems that sold prices are catching up with crazy asking prices.

Feels very unsustainable and doesn't bode well for trying to move up the chain...

nickyg2000

Will probably create more activity in the market as people who want to upsize will sell there flat/starter home to buy a bigger place while they still can. Who wins? the banks, bigger loans more interest...