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London House Price Collapse?


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#16 EDW

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Posted 30 May 2011 - 02:05 PM

London Garden Squares attract a premium but sometimes you have to pay for the garden maintenance.

That flat would rent for 475pw. It was a fair price sold at auction 2011.
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#17 BentoBox

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Posted 30 May 2011 - 06:02 PM

For the record, I have found a few nicer places places, of a similar (if not larger) size, with similar leases, in similar areas that just had wildly exaggerated asking prices. I spoke to the estate agent before going for a second viewing, and explained that I wouldn't consider offering anything over 20% less than the asking price, which brings it quite a way under my budget.


You must be quite a savvy negotiator, because 20% cuts in N1 just isn't happening in my experience. At least not right off the bat. Some of the off-the-run properties do not shift, so you can see asking price drop over time as the vendor gets back to earth, but 20% off in the OK-to-good locations is something I haven't heard of yet.

Are you looking for 1/2 bed? Ex-LA? I am not taking the piss, just struggling to understand what "nice places" are out there for 350k in that area.

#18 worried1

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Posted 31 May 2011 - 09:08 AM

Personally I think London is split into it's own micro area's. So some area's will be hit worse than others. I live (rent) in Chiswick and am pretty confident it's going to hold up. Brentford next door could well get battered. Just remember if London area's do drop then it will be hard. Personally I wouldn't take that chance.


This is exactly what I am seeing a bit further out into the suburbs. The nice parts of my area are above 2007 peak and the good houses are selling quickly. A mile away, prices are probably 10% off their peak and sticking on the market. The actual difference in prices is at least 40%, and the cheaper area is by no means a 'ghetto', just a bit further from station/river/town centre etc.

Chiswick will always be a lot more expensive than Brentford, but there must be a tipping point where the differential gets so high that people start to say 's*d it, I'll move to Brentford because it is half the price'?

#19 qwerty_qwerty

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Posted 31 May 2011 - 09:33 PM

You must be quite a savvy negotiator, because 20% cuts in N1 just isn't happening in my experience. At least not right off the bat. Some of the off-the-run properties do not shift, so you can see asking price drop over time as the vendor gets back to earth, but 20% off in the OK-to-good locations is something I haven't heard of yet.

Are you looking for 1/2 bed? Ex-LA? I am not taking the piss, just struggling to understand what "nice places" are out there for 350k in that area.


The particular place I'm referring to here has been on the market for quite some time, has had its asking price lowered quite a bit, and the owners have had a recent change in family circumstances so need to move fairly soon. I'd also take the 20% with a pinch of salt, as it could well be the estate agent purely trying to encourage me to make an offer to encourage them to lower their expectations a little, or even just to show the owners that they are doing something (something that I have read on here happens sometimes). Hopefully not, but I suppose I'll only find out if/when I make an offer!

#20 cool_hand

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Posted 31 May 2011 - 10:01 PM

OP: I live in EC1 close to Old Street, I used to live N1 right on Upper Street.

I personally would not buy in N1, you'd have to drag me kicking and screaming.

EC1 is much nicer - but finding a good place for £350K - well good luck. Getting 20% off asking, just not going to happen unless you are very very lucky.

#21 qwerty_qwerty

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Posted 01 June 2011 - 09:31 AM

I personally would not buy in N1, you'd have to drag me kicking and screaming.


Is that because of personal preference, or that you think it would be an error to spend all of your money on a place in N1 when you think the housing market in that area might be about to drop?

Basically I'm looking at N1 because that's the closest to central London that I can afford (in the North), and somewhere that I personally would be happy to live. My personal opinion is that the closer to central London, the sturdier house prices will be (however, I'm well aware that this might be a very simplistic point of view, and that there will be quite a few people on here that know a lot more about it than I do!).

#22 yekim1967

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Posted 01 June 2011 - 09:46 AM

I can't wait to move out of N1, great place to go for a night out but to live there is another thing. Too many council scroungers, with their status dogs, crime is probably one of worst areas in London. I think there was a programme on TV a few years ago that called Islington the worst place to live in the UK, and now I understand why.

#23 Flybait

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Posted 01 June 2011 - 01:04 PM

Just be careful where you shop on a particular postcode. In W4 (Chiswick) you can get a 3BR semi in a crap area (far from anything desirable) for £350-400k. A similar sized 3BR terrace would go for £700k+ in the better areas of the same postcode. A simple thing like a main road, commercial complex, or rail line that’s seen as being too close can significantly reduce demand and thus price of any property. “Bargains”, even in this climate within inner London are usually priced lower for a reason.

Example: We’ve renting out our old flat (3BR 2Bath) for over £500/wk. A similar flat (2BR 2Bath) in the same complex is only getting 400/wk. Both have 2 parking spaces, the 2BR has a patio and direct access to the communal garden. Ours is on the first floor so it’s a bit harder to get to the garden. The key difference in my opinion? We have high ceilings and more usable space (ie. Only slightly bigger but better layout)…that’s it. The third bedroom is really a study/single. What can be considered by some as small factors such as orientation, views, layout, etc. can make a huge difference in desirability. Keep this in mind when buying.

#24 EDW

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Posted 01 June 2011 - 05:36 PM

Good value garden flat in N7



An offer has been made for the above property in the sum of £275,000. Any person wishing to increase on this offer should notify the agents of their best offer prior to exchange of contracts.

#25 cool_hand

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Posted 01 June 2011 - 07:41 PM

Is that because of personal preference, or that you think it would be an error to spend all of your money on a place in N1 when you think the housing market in that area might be about to drop?

Basically I'm looking at N1 because that's the closest to central London that I can afford (in the North), and somewhere that I personally would be happy to live. My personal opinion is that the closer to central London, the sturdier house prices will be (however, I'm well aware that this might be a very simplistic point of view, and that there will be quite a few people on here that know a lot more about it than I do!).


I think yekim1967 summed up some of my feelings. N1 looks a nice place until you actually live there.
I don't mind Amwell Street and Clerkenwell but Upper Street / Essex Road, no thank you. It's like a soulless corporate village.
I would avoid making a decision purely based on a financial basis, this is your home, yes and investment - as in you are putting your hard earned money into it - but most important it is a place to live, a place to feel happy in.
I think you could get better value if you are prepared to be a bit further out - that's what I would do if I was buying. I'm renting. I wouldn't buy at the moment - the market is not resolved.

#26 EDW

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Posted 01 June 2011 - 10:09 PM

I like the terraces near the canal, sadly do not £4m. :rolleyes:

#27 BentoBox

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Posted 02 June 2011 - 07:06 AM

Exactly. Saying you prefer Amwell St / Clerkenwell / Noel Rd or God forbid, the leafy streets in Blairsbury, is one thing.
Finding the money is another. Even a 40% HPC probably wouldn't bring that stuff into the budget of a non-banker/lawyer/inherited money type of person.

Further out is a nice idea, but even stuff in shitholes like close to Emirates is massively overpriced. The nice bits close to Highbury, likewise. Then you get into Holloway, and there is not much point if the goal was to avoid the grimey parts of southern N1.

#28 Neverland

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Posted 02 June 2011 - 02:36 PM

When If interest rates go up then London gets hits twice - those with a mortgage who can't make the payments and overseas buyers deterred by a stronger Pound.


Corrected that for you...

....but it could be a 12 month plus wait :angry:

#29 cool_hand

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Posted 07 June 2011 - 09:34 AM

Exactly. Saying you prefer Amwell St / Clerkenwell / Noel Rd or God forbid, the leafy streets in Blairsbury, is one thing.
Finding the money is another. Even a 40% HPC probably wouldn't bring that stuff into the budget of a non-banker/lawyer/inherited money type of person.

Further out is a nice idea, but even stuff in shitholes like close to Emirates is massively overpriced. The nice bits close to Highbury, likewise. Then you get into Holloway, and there is not much point if the goal was to avoid the grimey parts of southern N1.


BentoBox: not saying I can afford those areas - just wanted to point out that if the OP is set on being somewhere central then he could live somewhere, similar location, for similar money and it could be a bit nicer.

When I said further out I was meaning somewhere in at least Zone 2 in South East London B)

#30 BentoBox

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Posted 07 June 2011 - 10:20 PM

N1 at its best overpricedness: http://www.rightmove...y-33546644.html
started 875k (I shit you not!), first lowered to 799k, now to 750k

I mean the place looks OK, location is nice, but c'mon.




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