London prices falling 1% a month for the last 6 months

caronoel

PollySouthend wrote: »

Well there's only been two times in the last 20 years that house prices in London have seemed to start to fall, this being the second time after 2008.

We have had a number of blips like this from time to time. I bought my first flat in Richmond, as a young grad, in 1997. By late 1998, we had a economic crisis in Asia and prices were slipping. They soon recovered

There have been other blips too.

The government will have a few sweeties to boost the housing market in the budget, such as reduced stamp duty for FTBS and the HTB already announced.

I don't see house prices rising or falling much over the next couple of years.

PollySouthend wrote: »

They could double within the nexr five years or half. Who knows, history would suggest the doubling but it's a time of firsts at the moment.

Over the past 50 years there has never been a 5 year period where London house prices have not rebounded to their previous heights. Even in 2008 or the early 90s.

The wise old owls over on HPC have been haemorrhaging cash on rent while waiting for the crash. It's a fools game.

MobileSaver

hettyGreek wrote: »

Looking at zoopla the flats in my area of Wandsworth have fallen about 6% in the last 6 months.

It does seem like London is falling quickly both in rent and valuations.

I've just checked Zoopla and my place in mid-Wales has gone up from £1m to £1.5m... so either the Valleys are booming or Zoopla is nothing more than a bit of entertainment and not to be taken in the slightest bit seriously. I know which of those my money is on.

The-Joker

Actually it’s far more than 1%

The-Joker

Moneybox live on radio 4 did another good show about house prices, one chap think he was an E,Agent quite rightly said that the official figures are very deceptive.

They say London is only falling this much every month for the last few years, but in reality for those watching the market, properties that used to sell for X many thousands are now on the market for a lot less and taking a lot lot longer to find a buyer.

Prices are still way overvalued compared to how eer you want to measur eit.

Filo25

The-Joker wrote: »

Moneybox live on radio 4 did another good show about house prices, one chap think he was an E,Agent quite rightly said that the official figures are very deceptive.

They say London is only falling this much every month for the last few years, but in reality for those watching the market, properties that used to sell for X many thousands are now on the market for a lot less and taking a lot lot longer to find a buyer.

Prices are still way overvalued compared to how eer you want to measur eit.

Or maybe rather than some vast conspiracy to manipulate the numbers it is because Superprime and Prime London has been falling longer and faster than the rest of London.

Prices where I live (very definitely not Superprime or Prime!) kept on rising until last year and have probably softened slightly since then, but I doubt it has even dropped 6% in total yet from people I know who are viewing in the area at present.

Rather than pricing the more notable trend around here is how little there is listed on the market.

The-Joker

Filo25 wrote: »

Or maybe rather than some vast conspiracy to manipulate the numbers it is because Superprime and Prime London has been falling longer and faster than the rest of London.

Prices where I live (very definitely not Superprime or Prime!) kept on rising until last year and have probably softened slightly since then, but I doubt it has even dropped 6% in total yet from people I know who are viewing in the area at present.

Rather than pricing the more notable trend around here is how little there is listed on the market.

London and the south east is falling, but at different rates.

some other areas in the uk are actually going up still, it is an equilising.

about time too.

The-Joker

It doesnt matter how many people want to live in a certain property, all that matters is how many can afford it.

The next generation has less money than the last, and old people are not going to be able to leave their children all that much as they are now going to have to use their equity in their houses to pay for their care in their old age.

All that matters is who can afford to buy the properties, not how many people want to buy it.

lisyloo

The-Joker wrote: »

and old people are not going to be able to leave their children all that much as they are now going to have to use their equity in their houses to pay for their care in their old age.

If you take the average house price and the average care bill then you will find there is an still an excess and in general inheritances will rise.

My MIL gets her care paid as FIL is still in the home, so include the fact that some people won't have to pay.

GreatApe

The-Joker wrote: »

It doesnt matter how many people want to live in a certain property, all that matters is how many can afford it.

The next generation has less money than the last, and old people are not going to be able to leave their children all that much as they are now going to have to use their equity in their houses to pay for their care in their old age.

All that matters is who can afford to buy the properties, not how many people want to buy it.

Data shows a continual increase in the size and total value of estates left behind with only one drop around 2008 due to the housing and stock market crashes during the financial crisis

By my guess it is currently £100 billion in inheritances and £100 billion in gifts annually

The crash cheerleaders seem to think 1 man alone on a below average wage should be able to buy the average property. Thats just stupid

A FTB couple should be able to buy the average of the bottom 1/3rd of properties
A couple steeping up in later life should be able to buy the middle 1/3rd of properties
The top 1/3rd of properties are for the rich

If you look at it like that pretty much all the uk is affordable and at least half the country is cheap

GreatApe

The biggest problem we have with housing as a nation is turning our noses up at the bottom half of properties. Sure we all want a nice big house in a nice area but what are we going to do with the bottom 14 million properties? There is no housing problem in the uk there is just a problem of people wanting too much

We are all guilty of this. My first purchase was a 3 bedroom flat in a not so nice area.
I kept delaying the purchase as I really didn't want the flat, or more accurately I really really wanted a better property in a better location but I couldn't afford anything better. I kept asking my solicitor to delay and delay and it took me 6 months to make up my mind and finally complete. I was very lucky the seller didn't say frack you. Even when I did purchase it I was a little bit sad thinking I only managed to buy a crappy flat in a crappy area.

The reality was and still is that the flat was a bigger than average property in a central area. Thinking logically it was and still is above the average property for the city all things considered. But when buying it just felt like it was at the bottom 10% of properties because most people only ever look upwards to compare.