Anyone else still trying to sell in London?

Crashy_Time

Surrey_EA wrote: »

I agree, it really does depend on the type of property, and precisely where in London it is located.

£1m does not buy a great deal in many parts of London, as unbelievable as that sounds. In my view a lot of homeowners in London got used to annual price increases in their property of at least 10%, and that has now come to an end. it appears not everyone has noticed though.

They will notice when Trump gets rates moving up.

Cakeguts

Crashy_Time wrote: »

They will notice when Trump gets rates moving up.

I thought that was the job of the valuation office?

Jhoney_2

Surrey_EA wrote: »

You're quite right, I am generalising. Each property for sale will have a number of factors that affect the price, and the motivation of the seller.

EAs must also shoulder blame, as they are frequently guilty of telling prospective sellers exactly what they want to hear, and often try and outdo each other to tempt clients with increasingly unrealistic prices.

A lot of people moving to my area to buy are currently live in London, and I have long since lost count of the times I have had similar conversations with prospective buyers where they tell me they have not yet put their own property on the market, as "the estate agent tells me they have loads of buyers wanting property like mine, and I won't have any trouble selling." I would love to reply: "Well, of course they're going to tell you that, aren't they?! Are you really likely to instruct an agent who tells you they don't have any buyers who would like to look around your home, and actually the whole thing is likely to be something of a struggle?"

EAs will frequently value property at a little more than they really think they're likely to sell for, because they know that if they don't one of their competitors will. The seller will then often ask to inflate the price even further, and most EAs are too spineless to refuse, again because they know that if they do one of their competitors will agree, and they're salespeople after all.

Whilst demand is high in London - because it's London or whatever, the reality is that growth is there by fair means or foul. Whilst North and West London have always been pricey East (olympics/tech companies looking for cheaper overheads) and South East have also moved upwards. This happened to much of South of the river years before e.g battersea/brixton

An average 3 bed victorian house in SE London was £200+ 10 years or so ago + a bad reputation in parts etc - now best/worst same type costs upwards of £700k for the worst ones to 900k with 4beds 950 upwards!

It's just not like that anymore and the desirablity of those parts of London e.g transport, green spaces etc have been recognised and the area improving on many levels.

@ Crashy, some may only notice then, however many will also notice that their property has become more valuable and choose to sell, downsize or be perfectly able to manage.

Donald duck will have no material bearing on our Mickey Mouse, but he may get to pluto...

Crashy_Time

Cakeguts wrote: »

I thought that was the job of the valuation office?

To raise interest rates? They wish.

Crashy_Time

Jhoney wrote: »

Whilst demand is high in London - because it's London or whatever, the reality is that growth is there by fair means or foul. Whilst North and West London have always been pricey East (olympics/tech companies looking for cheaper overheads) and South East have also moved upwards. This happened to much of South of the river years before e.g battersea/brixton

An average 3 bed victorian house in SE London was £200+ 10 years or so ago + a bad reputation in parts etc - now best/worst same type costs upwards of £700k for the worst ones to 900k with 4beds 950 upwards!

It's just not like that anymore and the desirablity of those parts of London e.g transport, green spaces etc have been recognised and the area improving on many levels.

@ Crashy, some may only notice then, however many will also notice that their property has become more valuable and choose to sell, downsize or be perfectly able to manage.

Donald duck will have no material bearing on our Mickey Mouse, but he may get to pluto...

Not much to do with "desirability" IMO , all to do with a massive credit bubble and the emergency measures put in place to stop it popping when it should have. People "desire" to get "on the ladder" (they won`t so much when things reverse) and to "have a space of their own" etc., but the prices paid are not created by those emotions, only ability to pay which is largely fuelled by credit, and in turn "equity" which is fuelled by other people`s credit. Even if people fancy cashing in they will have to lower their price expectations if interest rate moves mean buyers are having to lower THEIR pricing ability.

always_sunny

Jhoney wrote: »

A friend of mine is trying to sell in south east London, great 3 bed victorian period house priced mid range and the most saleable by a mile in terms of trans links, interior etc - 4 weeks - tumblweed + 1 viewing.

I find it hard to believe that in a city with almost 9M people no one is buy or selling anything because of Brexit; all these people are staying put?

Highly likely the price is the factor, 3 bed victorian blah blah is exactly where and how much?
Take that amount and divide it by an average couple salary and what number do you get?
If it's greater than 5 or 6 then good luck to your friend!

Hopefully London prices will come down to affordable level; when I lived in SE I always wondered how people were able to afford a small 2 bed flat for £450k+!
Even at 10% deposit it's a lot of dough to save... even with the weak pound foreigners are put of by the 'immigration' stance of Brexit so maybe time to develop a domestic market!

Surrey_EA

always_sunny wrote: »

Highly likely the price is the factor, 3 bed victorian blah blah is exactly where and how much?

I completely agree.

always_sunny wrote: »

Take that amount and divide it by an average couple salary and what number do you get?
If it's greater than 5 or 6 then good luck to your friend!

Not quite that simple, you have not taken into account any deposit that a prospective buyer will be putting down. It's unlikely that a FTB is entering the market by purchasing a 3 bed period house in London, so they will almost certainly have built up a chunk of equity from past property ownership.

always_sunny

Surrey_EA wrote: »

I completely agree.


Not quite that simple, you have not taken into account any deposit that a prospective buyer will be putting down. It's unlikely that a FTB is entering the market by purchasing a 3 bed period house in London, so they will almost certainly have built up a chunk of equity from past property ownership.

Absolutely and that is the problem in London... that you need to have previous equity to afford anything that is big enuff for 2 squirrels.
Those renting are 'treading water' cause they won't be able to save for anything really because of high rents.

I don't think London will ever crash to a point when people will be able to buy a terrace/house for 2 peanuts and get some change back but more likely adjust to affordable prices,

After all a house is only worth the amount that can be sold for and those who have hoarded in many properties can get stuck if they get caught in that seesaw.

Jhoney_2

always_sunny wrote: »

I find it hard to believe that in a city with almost 9M people no one is buy or selling anything because of Brexit; all these people are staying put?

Highly likely the price is the factor, 3 bed victorian blah blah is exactly where and how much?
Take that amount and divide it by an average couple salary and what number do you get?
If it's greater than 5 or 6 then good luck to your friend!

Hopefully London prices will come down to affordable level; when I lived in SE I always wondered how people were able to afford a small 2 bed flat for £450k+!
Even at 10% deposit it's a lot of dough to save... even with the weak pound foreigners are put of by the 'immigration' stance of Brexit so maybe time to develop a domestic market!

Where in the post you quoted is Brexit mentioned? I do believe however that there are many factors affecting sales time of year etc as I did mention in an earlier post. It could also be price but not in the instance I quoted in my view.

Price is a factor in any transaction so your incredulation as to whether it is affordable to the average salary couple of which you speak is irrelevant.

Nothing new is coming on i'm told, and the few that are did not appear to be selling - again I took a look and that's what I saw in respect of his sale area.

I am responding to the OP regarding what is going on in London by way of the experience of a friend of mine. Not really looking to debate the merits of property ownership or the London house prices.

It's all bricks until it's sold, then you know the price. Up or down, I have no preference as it's not real until then anyhow and tends not to drop in isolation. It is what it is.

FENESZONE

I sold a 2 bed ex-local authority flat in a cheaper part of north London. There was one viewing day with about 7 viewings on that day. There were a few offers and the property went for 15k more than initial asking price. An offer was accepted within one week of viewings and was sold on 31/3/2016. The buyer of the flat wanted to complete before 1st of April to save on stamp duty because his name was on his deeds of his fathers property.

I have a work colleague who had 3 bed house for 500,000(northwest london-harrow i think) on the market from August of this year. Had some viewings and a couple of offers. I think one was 30,000 below asking price. The couple are selling because they are emigrating to Australia. They have decided to take the property off the market for a while because they want full asking price.

I think sentiment has changed due to changes in stamp duty and future changes in mortgage relief deduction for investors. Brexit has reduced confidence as well.

At much higher property prices i think potential buyers are 'fussy' and more likely to ask for bigger reductions especially when there is low confidence in the market.