Is the market dipping? Selling difficult?

brit1234

AFF8879 wrote: »

There is a shortage of housing in this country, regardless of Brexit,

Like the 50,000 luxury flats being built in London and only 3,000 selling?

Forget Brexit for the moment. In the UK we have a bigger property bubble than in 2007, it was going to pop at some time. 2 of the potential causes were likely to be European bank meltdown or the continuing financial collapse in the far east including China.

Then back home in the UK the multiple stamp duty changes were already having an effect. Higher value properties had a big increase in stamp duty charges putting off foriegn investors, reducing sales and dropping prices at the top end rippling out. Lower down the market the second property extra 3% stamp duty was reducing buyers from buy to let and second home owners increasing supply. It was also making people sell their properties when buying another rather than keeping existing property to rent.

Then there was all the buy to let changes on removal of tax relief and wear and tear changes. Landlords are selling up portfolios, just look at Fergus Wilson selling his 1,000 properties.

Throw into the mix Brexit with its recession, higher goods costs and job loses it looks increasingly likely property prices will continue to fall.

Does anyone really expect record high bubble price properties to keep rising when all the rise factors are going?

cashbackproblems

WOW so today two places i had been scheduled to view on Saturday both reduced by 25k…both have been on sale for 3 weeks which compared to how quick places were going 2 months back, is a long time (this is a very popular London commuter town). I don't think the apartments were massively overpriced but this is obviously relative and 350k for a 2 bed is still a lot!

Sellers and EAs are still deluded but slowly over the weeks/months those who are serious sellers will drop their prices (I'm seeing lots of reductions on my RM search/alerts and i check x3 a day). London house prices have the most to fall and i don't see increases, don't confuse increases in asking price with what price it will actually sell for (if at all).

cashbackproblems

Also to note many of the properties i have been enquiring about i.e. 80% seem to be BTL landlords selling, most likely as they know its only going to get worse and is a good signal of confidence similar to the Standard Life property fund which was frozen, such a thing is unprecedented for a 2bn fund.

Samsonite1

brit1234 wrote: »

Like the 50,000 luxury flats being built in London and only 3,000 selling?

Forget Brexit for the moment. In the UK we have a bigger property bubble than in 2007, it was going to pop at some time. 2 of the potential causes were likely to be European bank meltdown or the continuing financial collapse in the far east including China.

Then back home in the UK the multiple stamp duty changes were already having an effect. Higher value properties had a big increase in stamp duty charges putting off foriegn investors, reducing sales and dropping prices at the top end rippling out. Lower down the market the second property extra 3% stamp duty was reducing buyers from buy to let and second home owners increasing supply. It was also making people sell their properties when buying another rather than keeping existing property to rent.

Then there was all the buy to let changes on removal of tax relief and wear and tear changes. Landlords are selling up portfolios, just look at Fergus Wilson selling his 1,000 properties.

Throw into the mix Brexit with its recession, higher goods costs and job loses it looks increasingly likely property prices will continue to fall.

Does anyone really expect record high bubble price properties to keep rising when all the rise factors are going?

I guess it depends on location. I am finding that in London, the demand is so high that prices are still rising. The market (here) is buoyant with many houses for sale but all selling fairly quickly and often for over the asking price. Then you have areas with top schools which will be in demand even further. Having said that, it may be a different story elsewhere.

cashbackproblems

Samsonite1 wrote: »

I guess it depends on location. I am finding that in London, the demand is so high that prices are still rising. The market (here) is buoyant with many houses for sale but all selling fairly quickly and often for over the asking price. Then you have areas with top schools which will be in demand even further. Having said that, it may be a different story elsewhere.

This statement is truly absurd and not reflective of what i am seeing in the London market (and I'm looking at a large area of SE London from Catford down to Bromley). Things are NOT selling and certainly not getting priced up. Only things that sell are those which are lowly priced e.g. 2 places i went to see on sat were 300k and went on the same day, but 99% of the same property/same spec comes on at 380k and stays unsold for months - to date

In fact, what you describe is what was happening when i first started looking i.e. early 2015.

AFF8879

Luxury new builds definitely can't be used as a marker for the wider property market given they are marketed almost exclusively at foreign investors. In fact London itself is probably a bad example of the rest of the UK, given so many properties here are owned as investments. I'm one of the few owner occupiers in London I think :-)

The stamp duty BTL changes definitely slowed things down but there was a huge surge January - April, so from a year to date perspective I don't believe it had much impact.

Samsonite1

cashbackproblems wrote: »

This statement is truly absurd and not reflective of what i am seeing in the London market (and I'm looking at a large area of SE London from Catford down to Bromley). Things are NOT selling and certainly not getting priced up. Only things that sell are those which are lowly priced e.g. 2 places i went to see on sat were 300k and went on the same day, but 99% of the same property/same spec comes on at 380k and stays unsold for months - to date

In fact, what you describe is what was happening when i first started looking i.e. early 2015.

Truly absurd - I am in Bromley borough and it is true. I have just bought and sold, as have many friends and some are in the process.

Maybe this borough is special, but to call it absurd is erm, absurd. We only started looking and selling at the end of 2015, we ended up increasing the price of our house as we knew we could get more. Within months, prices still rising.

You seem to have a problem?

peter_we

Maybe this borough is special

Apparently its in a space-time distortion field..

iantojones40

Samsonite1 wrote: »

Truly absurd - I am in Bromley borough and it is true. I have just bought and sold, as have many friends and some are in the process.

Maybe this borough is special, but to call it absurd is erm, absurd. We only started looking and selling at the end of 2015, we ended up increasing the price of our house as we knew we could get more. Within months, prices still rising.

You seem to have a problem?

I've just had a quick scan through the first 6 pages of newly listed properties for sale in Bromley on RM with PB, only spotted 2 that were SSTC, did spot lot's of reductions and re-listings though.

kilby_007

I just had a quick look at Bromley myself, what the hell! 49 new properties and 31 reductions in one day yesterday! How big is Bromley? My rightmove search area covers a large town and 6 villages and yesterday I only saw 8 new properties and 10 reductions.

Anyway, if it's true that this area is "buoyant" then I'm surprised there were 31 reductions in one day. That is not an attribute associated with rising house prices...