Madness in the London Housing Market

Running_Horse

Million pound council flat.

http://www.standard.co.uk/news/london/madness-in-the-london-housing-market-tiny-excouncil-flat-on-the-market-for-115-million-10269280.html

Running_Horse

Street in London where 7 in 10 properties are second homes.

http://www.standard.co.uk/news/london/lights-out-london-street-where-7-in-10-houses-are-second-homes-10249301.html

Running_Horse

£400 a month to sleep in a stranger's kitchen.

http://www.standard.co.uk/news/london/kingstonuponthames-single-bed-for-rent-strangers-kitchen-spareroom-advert-10245889.html

Running_Horse

£260,000 a year to rent a flat, instead of buy a four bed house.

http://www.standard.co.uk/news/london/luxury-apartment-overlooking-regents-park-in-london-available-to-rent-for-260000-a-year--the-same-price-as-a-four-bedroom-house-10227331.html

Running_Horse

£400 a month with added water feature.

http://www.standard.co.uk/news/london/bargain-400amonth-peckham-flats-unique-selling-point-its-leaky-ceiling-10200367.html

Out,_Vile_Jelly

There is a house near me that I see was bought last November and "done up" (open plan, decking, front garden filled with arty gravel) and is now on for £130k more. This is a mid-terrace 2 bed on a busy road in a scruffy part of south London. I can't believe anyone would buy it for £400k so will be looking up the actual sold price.

lisyloo

I can't believe anyone would buy it for £400k

Depends where it is.
If it's zone 1 e.g. Vauxhall, which is a stones throw from prime central London then it's probably "worth" that even in "scruffy" street.
If you mean zone 3 then yes it sounds overpriced.

Location, location, location.

People will buy it, if it's cheaper than renting and they are staying around for a while - why not?
But a lot of vendors fly kites on their asking prices - annoying but again - why not? it costs them nothing and someone might bite.

Generali

Bubble anyone?

missyrichards

I cannot believe some the prices I'm seeing on RM. It is crazy.

Do you think the property across the whole of London will eventually become expensive or will it just start to level off?

My house didn't go down much in value during the financial crisis and I can't really remember much about house prices in the past apart from the few years before I bought my house.

wotsthat

Generali wrote: »

Bubble anyone?

Do you think it matters in terms of the banks?

In the news today from Nationwide. Four out of ten houses purchased in the first quarter were cash sales - apparently a record high.

Years of high deposits must now mean the banks have reduced exposure to the housing market?

People might point to Help to Buy as a reason to worry but that's not really had much uptake in London.

If it's a bubble (and there's a correction/ crash) then people lose their own money before they lose the banks and that's only if they have to sell.

It seems like I might not be required to put my hand in my pocket to help out so that seems like progress.

Out,_Vile_Jelly

lisyloo wrote: »

Depends where it is.
If it's zone 1 e.g. Vauxhall, which is a stones throw from prime central London then it's probably "worth" that even in "scruffy" street.
If you mean zone 3 then yes it sounds overpriced.

Location, location, location.

Zone 4- Morden !!!!!!. Impossible to gentrify.