House prices rising faster than inflation - Guardeeeun

caronoel

But I thought Crashy, Devon, and all those wise owls told us that prices are tanking?

https://www.theguardian.com/money/2018/aug/07/cost-of-buying-a-home-at-record-high-according-to-halifax

Goldcrypto

Makes you wonder how sustainable London property market can continue at this pace. When young people starting their working life as investment consultants, solicitors, doctors (those will only be on £50k to £80k gross - after tax, London living costs/lifestyle etc and with 1 bed apartment rental about £1400+ do not give large amounts to save) etc are getting priced out.

How long do we have to go until we are average £600k for a simple 2 bed in London and to get a decent mortgage rate need at least £100k+ deposit.

humptydumptybits

I've been hearing about prices flat lining, where I live the prices have been flat for a few years but seem to be going a bit mad at the moment. I suppose it varies round the country.

chucknorris

Goldcrypto wrote: »

Makes you wonder how sustainable London property market can continue at this pace. When young people starting their working life as investment consultants, solicitors, doctors (those will only be on £50k to £80k gross - after tax, London living costs/lifestyle etc and with 1 bed apartment rental about £1400+ do not give large amounts to save) etc are getting priced out.

How long do we have to go until we are average £600k for a simple 2 bed in London and to get a decent mortgage rate need at least £100k+ deposit.

I don't think that London property is rising, I think that it has dipped slightly or is at best stagnant.

lisyloo

Worth looking at the chart here
https://www.bbc.co.uk/news/business-45095021
to see what you think the significance of 1 months data is.

lisyloo

When young people starting their working life

In the special case of central London flats being bought by chinese, russians etc.


You can certainly find flats for £200 and possible some nearer £100K you'd just have to be prepared to live in Luton and commute.
What do you think most people do?
A. More likely to live in Luton and commute than in a posh flat in price central London.


Don't know why you're concentrating on central London, not many people actually live there.

ukcarper

chucknorris wrote: »

I don't think that London property is rising, I think that it has dipped slightly or is at best stagnant.

I'm not sure prices have fallen where I am Surrey/Hampshire border but the market is very slow, with many properties not selling.

chucknorris

We've just bought a new home in Ashtead (last month), and I have also been speaking to agents about selling our home in Dorking (going on the market this month). Both Dorking and Ashtead markets are very slow, but probably have not dropped.

But London has dipped slightly, I have been keeping a close eye on London as I have started to slowly sell. I sold a flat for £440k last year, I have two more flats in the same block, I think that I would only get about £430k now. But obviously I would love to be proved wrong, I may sell another next year, it depends if any of my tenants give me notice or stay on. I was expecting some tenants to move out this October, but they have indicated that they now want to stay for another year.

lisyloo

Out of interest Chuck why would you delay if the market is falling (albeit slowly).

chucknorris

lisyloo wrote: »

Out of interest Chuck why would you delay if the market is falling (albeit slowly).

Probably, I'm not sure, I'm trying to be sensible and take the view that because I bought low, small dips don't matter. It is only luck selling at the absolute top, so I am not going to wind myself up over having missed any particular market peak.

There is always work created at the change of tenancies, so my plan is simply to sell if and when tenants give me notice. But I will possibly keep my best flat for a bit longer than the others, as the properties do offer the best return to where I would invest the equity. I will probably invest the equity into individual corporate bonds and hold them to maturity (so unless the company goes under, I will get all my capital back). I already have quite a bit in equities, so I need to look for diversity, rather than the highest possible return.

westernpromise

I have to say, 2 bedrooms for £430k in Battersea (I think that's where you said these were?) strikes me as very fair. In Maida Vale or Notting Hill, you'd be looking at double that. Location, location, location, I guess, but Battersea's pretty salubrious these days last time I looked.