When will the correction come to house prices?

AndyGuil

Bantex wrote: »

Took 10 years to get back to 1990 prices.

Only took 4/5 years to reverse. The market is very different to the 90s and has reversed from the 07/08 falls.

CLAPTON

AndyGuil wrote: »

Only took 4/5 years to reverse. The market is very different to the 90s and has reversed from the 07/08 falls.

very different from the 90s

huge increase in population
0.5% bank rate
QE
HTB etc

chucknorris

AndyGuil wrote: »

Perhaps because it was a very short period and they got back on track and rose again. They fell after 07/08 too but have now contnued back with the long term trend.

As you imply property is a long term investment and despite those short term plunges, London property was still a good investment over the long run, even including periods spanning those dips, as long as some common sense regarding the disposal date was exercised.

AndyGuil

CLAPTON wrote: »

very different from the 90s

huge increase in population
0.5% bank rate
QE
HTB etc

I was thinking more unemployment plus high interest vs high employment plus low interest now. The London economy is extraordinarily strong so the local effect is enhanced.

AndyGuil

chucknorris wrote: »

As you imply property is a long term investment and despite those short term plunges, London property was still a good investment over the long run, even including periods spanning those dips, as long as some common sense regarding the disposal date was exercised.

If you subtract the wasted money from rent it gets better too.

chucknorris

AndyGuil wrote: »

If you subtract the wasted money from rent it gets better too.

I'm on the other side of the fence so I can actually add rental profit (which is of course the same point that you just made).

padington

Anything could happen that could transform the economic landscape as we know it but as long as there isn't a significant black swan event, London prices will be going up year on year for probably another six years minimum.

During that time we may well see asking prices taking check on themselves and coming down after too much over exuberance. Alternately we might find London safely in the eye of a global storm and prices storming the barricades of common sense and doubling in a couple of years.

Either way I think we will see year on year gains until 2020. At which point the pound should be fairly strong and it could be a great time to sell up and buy
a boat.

BobQ

Probably not until more houses are built or until lending restrictions are actually introduced. So probably not until after the next election.

Pincher

You would have thought that all the flooding along the Thames this year would have made people nervous about buying in London.

If you really want London prices to drop, call James Bond's producers.

Just get them to blow up the Thames Barrier or just sabotage it just before a big storm. Using San Andreas Fault to flood California has been done in MANY movies, including View To a Kill (Zorkin),

Roland Emmerich of 2012 is also a good bet.

Thames Water built their Head Quarters building in Angel, having used the location for their reservoir for over 100 years to supply fresh water to the City of London. Because it's on a hill, which is also why the Angel lift shaft used to be the deepest in London. Hampstead is similar. Guess where Lex Luthor of Luthor Corp would be buying?

AndyGuil

Pincher wrote: »

You would have thought that all the flooding along the Thames this year would have made people nervous about buying in London.

If you really want London prices to drop, call James Bond's producers.

Just get them to blow up the Thames Barrier or just sabotage it just before a big storm. Using San Andreas Fault to flood California has been done in MANY movies, including View To a Kill (Zorkin),

Roland Emmerich of 2012 is also a good bet.

Thames Water built their Head Quarters building in Angel, having used the location for their reservoir for over 100 years to supply fresh water to the City of London. Because it's on a hill, which is also why the Angel lift shaft used to be the deepest in London. Hampstead is similar. Guess where Lex Luthor of Luthor Corp would be buying?

Outside of London along the Thames. Not in London as there is the Thames Barrier which means it isn't possible to flood.