London property prices to fall 30%....

zarf2007

http://www.telegraph.co.uk/finance/property/house-prices/11963302/London-on-course-to-become-next-house-price-bubble-fatality-warns-UBS.html

Generali

We'll see. It rarely seems to pay to bet against London house prices.

GoldenShadow

I am sure there will be some form of 'correction' but when and how much, who knows. Prices will come down in a lot of areas at some point I would think, and I am sure they will rise again also.

We bought in a home county which is predicted to have a lot of growth, but we made sure it was a house we could live in 'forever' if something did happen eg. House prices absolutely crash. This is why we saved longer, didn't want to buy something less ideal even if it was cheaper just in case we got stuck there. Wouldn't want to bank on any prediction being accurate.

Jonbvn

"alluring yields" on buy-to-let investments had all "propelled London house prices to new heights"

Alluring yields on London property??? I'll have a pint of what they're drinking.....

Mistermeaner

http://www.express.co.uk/news/science/592987/End-of-the-world-asteroid-Blood-Moon-September-apocalypse-armageddon-comet-meteor

5h!t happens, but sometimes doesnt

k12345678

Yeah, this wont happen.

If it does, every man and his dog (possibly including me) will snap up something. Many many others (including some I know personally) will buy investment properties, and so, the price will rocket again.

Demand is still way higher than supply.

chappers

k12345678 wrote: »

Demand is still way higher than supply.

Something that is unlikely to change in the Capital.

Can't see a 30% downward correction at any point, but there could be a gradual correction due to slower growth.
In fact there is some indication that the precursors for this are already happening, particularly in the very high end market, the number of properties sold which are priced at over £5m is in decline, despite the prices still rising.
One thing I know for sure is that, if I could, I would take my chances in the London market, over anywhere else in the country.

Graham_Devon

k12345678 wrote: »

Yeah, this wont happen.

If it does, every man and his dog (possibly including me) will snap up something. Many many others (including some I know personally) will buy investment properties, and so, the price will rocket again.

Demand is still way higher than supply.

You mean "everyone man and his dog" will start playing a game of catching the falling knife?

Why now? Why have other crashes happened in the past and in other countries if this is the case? What is it different this time?

lisyloo

If it does, every man and his dog (possibly including me) will snap up something. Many many others (including some I know personally) will buy investment properties

You are saying many will buy a asset that's falling in value when looks likely it'll be cheaper in a couple of months - for investment purposes?

I think you are wrong and there's a danger that those foreign buyers who are in it for profit only will desert in droves.

I'm not saying it's likely just that's how the psycology works in falling markets.
Why would you buy something that's falling in value?

CLAPTON

k12345678 wrote: »

Yeah, this wont happen.

If it does, every man and his dog (possibly including me) will snap up something. Many many others (including some I know personally) will buy investment properties, and so, the price will rocket again.

Demand is still way higher than supply.

in a reasonably free market, demand is always equal to supply : they simply determine price

if every man and his dog is waiting to buy, why don't they do that now?

the change in tax treatment of rental properties and the possibility of an increase in interest rates may impact demand leading to a fall in prices
however a few hundred thousand new immigrant may impact the equation too.

gadgetmind

lisyloo wrote: »

I'm not saying it's likely just that's how the psycology works in falling markets.

Well, quite. People say they'll buy shares when "there's a correction" but said correction is nearly always driven by something, and said thing put people off doing what they said they would.