"Thousands" of London flats to come to the market

buglawton

Just been on oddschecker to see if any bets can be laid on interest rates being cut by 0.25pc on Friday. Regrettably no odds showing...

Brock_and_Roll

As a banker (boooo!) I can tell you that one of the first things that will happen as a result of all this uncertainly, is that banks will be looking to cut their exposure to the UK property market, worried of course by the prospect of price falls & defaults. Already I note that financial analysts are comparing the banks to assess who is most exposed to UK property.


Having been through this several times over the years, by tightening their lending criteria they will create a self-fulfilling prophecy. Mortgages will become harder/more expensive to obtain - which of course reduces price borrowers will be able to pay and puts pressure on sellers to cut asking prices.


It goes without saying that this effect will be felt most where prices have risen the most (i.e. London) and least where they have been stagnating - but it will be felt everywhere.

buglawton

So as a banker you'll know that the BOE is ready to open a gusher of liquidity to counter that.

I had thought that exposure to silly-priced London new builds and vanity properties is mostly covered by foreign/cash-rich buyers anyway. But if banks have lent a lot on that type then I wonder who's to blame.

Otherwise, when it comes to regional property value variations, it always seems to be the North that gets hit biggest in a recession.

AG47

buglawton wrote: »

So as a banker you'll know that the BOE is ready to open a gusher of liquidity to counter that.

I had thought that exposure to silly-priced London new builds and vanity properties is mostly covered by foreign/cash-rich buyers anyway. But if banks have lent a lot on that type then I wonder who's to blame.

Otherwise, when it comes to regional property value variations, it always seems to be the North that gets hit biggest in a recession.

London has far further to fall this next down turn. With the pound still got a long way to fall until interest rates go back up to normal, foreign property investors want to sell ASAP

westernpromise

AG47 wrote: »

London has far further to fall this next down turn. With the pound still got a long way to fall until interest rates go back up to normal, foreign property investors want to sell ASAP

..he spun, talking his book.

JulieCMattern

Thank you for providing information.

AG47

The only thing that is certain is uncertainty next few years until the big global economic collapse. There is too much debt to pay off, it will have to be wiped out a huge crash and start again. Some debt will be wiped out and other debt will be revalued, I'd bet mortgages will not be wiped out just revalued when interest rates return to normal.

AG47

Well the building sites in London have not been abandoned, they are still adding more properties to the oversupply

cells

AG47 wrote: »

Well the building sites in London have not been abandoned, they are still adding more properties to the oversupply

the human mind is both wonderful amazing and also silly and strange.

You've set up your mind to be so convinced of a housing scam bubble your not thinking straight. Dont log into crazy crash websites for a month hopefully your mind will heal.

London is indeed expensive but that does not mean prices are going down. For that to happen there needs to be more forced sellers than buyers and the capital of capital has a lot of capital to allocate to housing

Crashy_Time

cells wrote: »

the human mind is both wonderful amazing and also silly and strange.

You've set up your mind to be so convinced of a housing scam bubble your not thinking straight. Dont log into crazy crash websites for a month hopefully your mind will heal.

London is indeed expensive but that does not mean prices are going down. For that to happen there needs to be more forced sellers than buyers and the capital of capital has a lot of capital to allocate to housing

Interest rate hikes just got more likely as the UK takes it`s chances and the EZ project takes a big lurch towards crash and burn. No doubt you will still be trying to talk up the market as it all crashes around you.