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High-end, new-build flats in London.

One sector looks very vulnerable – high-end, new-build flats particularly in London. These have bubble and pop written all over them.

They’re marketed overseas – so are vulnerable to all sorts of factors beyond anyone’s control (the Russian ruble collapse being one example). Many of those that have already been bought are unoccupied (drive past the UK’s tallest residential building, the Vauxhall Tower, at night – barely a light is on) – which leads them vulnerable to a vacancy tax (Islington has already proposed this).

There are also just too many of them. Asking prices are already falling, yet locals will not be interested – for the kind of money currently being asked, they can often get a much nicer period property.

This is a bubble that probably won’t go pop until 2016, but I want to be the first to call it – so I’m calling it now.
HTB = Help to Bubble.
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Comments

  • PasturesNew
    PasturesNew Posts: 70,698 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    What if you're wrong? What if it's US that's going under - and all those foreign countries are at the start of an up, up, up 100-200 years spurt?
  • wotsthat
    wotsthat Posts: 11,325 Forumite
    This is a bubble that probably won’t go pop until 2016, but I want to be the first to call it – so I’m calling it now.

    Well that's credible because I bet you've never called a bubble before.
  • Exactly, there are so many so called 'luxury' flats being built on every bit of unused land all over London the numbers dont add up.

    Who is going to buy them all?
    HTB = Help to Bubble.
  • lisyloo
    lisyloo Posts: 30,094 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Have you considered that some of these might be owned by absent foreign owners who didn't buy them to live in but for an investment.
  • CLAPTON
    CLAPTON Posts: 41,865 Forumite
    10,000 Posts Combo Breaker
    Exactly, there are so many so called 'luxury' flats being built on every bit of unused land all over London the numbers dont add up.

    Who is going to buy them all?

    how many are there?
  • CLAPTON wrote: »
    how many are there?

    One report says there are more being built now that any any time in living memory.
    HTB = Help to Bubble.
  • CLAPTON
    CLAPTON Posts: 41,865 Forumite
    10,000 Posts Combo Breaker
    One report says there are more being built now that any any time in living memory.

    clearly rubbish as I've already explained

    so how many are being built then?
  • IronWolf
    IronWolf Posts: 6,445 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    Exactly, there are so many so called 'luxury' flats being built on every bit of unused land all over London the numbers dont add up.

    Who is going to buy them all?

    I've thought this for the last 5 years. There seems to be an endless supply of dumb money into overpriced London property.
    Faith, hope, charity, these three; but the greatest of these is charity.
  • wotsthat
    wotsthat Posts: 11,325 Forumite
    For the year to the end of Q4 there were 13,870 dwellings started (being built by private enterprise) in the whole of London.

    Doesn't seem that high a figure given the population.

    https://www.gov.uk/government/organisations/department-for-communities-and-local-government
  • chucknorris
    chucknorris Posts: 10,795 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    wotsthat wrote: »
    For the year to the end of Q4 there were 13,870 dwellings started (being built by private enterprise) in the whole of London.

    Doesn't seem that high a figure given the population.

    https://www.gov.uk/government/organisations/department-for-communities-and-local-government



    What you have missed is that nobody lives in London anymore, because it is far too crowded.
    Chuck Norris can kill two stones with one birdThe only time Chuck Norris was wrong was when he thought he had made a mistakeChuck Norris puts the "laughter" in "manslaughter".I've started running again, after several injuries had forced me to stop
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