Property Prices Tumble Across Uk

[The Masked Tulip]

Property prices tumble across UK, but London is still soaring.

Prices for the average London home have leapt by £22,000 over the past year –more than the annual salary of a typical young homebuyer.

Despite prices in some parts of the capital reaching record levels they are falling or stalling in most other regions.

Experts say the Land Registry figures reveal the ‘huge imbalance within the UK property market’.

Read more: http://www.dailymail.co.uk/news/article-2300854/Property-prices-tumble-UK-London-soaring-The-average-price-home-capital-increased-22-000.html#ixzz2Oup85DMv

[StainlessSteelCat]

Property prices tumble across UK, but London is still soaring.

Read more: http://www.dailymail.co.uk/news/article-2300854/Property-prices-tumble-UK-London-soaring-The-average-price-home-capital-increased-22-000.html#ixzz2Oup85DMv

Yep, back to the bad old days with London. I can remember prices going up by more than my salary each month and thinking why even bother saving.

[Mr 0.01%]

Haha just had a read over the LR report. Sales volumes down year on year on the majority of market. Good job those sales of mansions are keeping the index high!

[Bruce Banner]

Does anyone else remember Swipe?

[Bruce Banner]

http://www.fsa.gov.uk/consumerinformation/scamsandswindles/investment_scams/ponzi_pyramid

[The Knimbies who say No]

I see the NW is showing a big 3.3% monthly increase in the LR report, but I can only find 1 subregion (Blackburn with Darwen 4.2%) which exceeds this figure and 1 which equals it (Sefton, 3.3%). Everything else is way below, there may be some repitition in here: (Cheshire East 0.4%, Cheshire West &Chester 0.0%, Greater Manchester -0.6%, Halton 0.8%, Merseyside 1.2%, Warrington 0.2%, Knowsley 2.6%, Liverpool -0.2% Manchester 0.6%, Salford -1.6%, St Helens 0.5%, Stockport -1.6%, Trafford 0.6%, Wigan -0.8%, Wirral 1.4%)

http://www.landregistry.gov.uk/__data/assets/pdf_file/0008/37448/HPIReport20130325.pdf

[ToughEgg]

Does anyone else remember Swipe?

No.....enlighten us Bruce

[Bruce Banner]

No.....enlighten us Bruce

A pyramid selling scheme in the late 1960s. The closer you were to the top the more money you made, those near the bottom ended up with a garage full of detergent and a big hole in their bank accounts.

[Ah-so]

Prices in London have definitely gone back to their 2007 highs and possibly beyond. It is now very difficult to get a modest 3-bed house on the outer suburbs for less than £400,000, unless it is a 1000 sq ft shoe box.

Higher London wages, European tax dodgers, BTL, population growth, under-supply and an unhealthy dose of insanity are to blame.

[winkie]

Property prices tumble across UK, but London is still soaring.

[the_duke_of_hazzard]

In London, the only people buying and selling are the rich. Very little else appears to me to be changing hands.

[ToughEgg]

Thanks Bruce for the explanation.

Duke- Anecdotally, foreign buyers who now make up a big chunk of the market in London if not the biggest, tend to hold on to their places for a generation as opposed to local people who move on typically over a few years. Plus the media have been drumming into everyone that London prices only ever go up, so now even local people moving tend to want to hang on to theirs. The result is a market that has vanished up its own fundament. Unless there are significant property taxes or unless the unbridgeable gap between property owners and the rest stretches the elastic of society beyond breaking point, I can't see the market moving again or prices falling much for years. I've recently written to my mp suggesting annual tax measures on foreign owned stuff in London, probably won't make much difference but good to get it off the chest

[the_duke_of_hazzard]

Thanks Bruce for the explanation.

Duke- Anecdotally, foreign buyers who now make up a big chunk of the market in London if not the biggest, tend to hold on to their places for a generation as opposed to local people who move on typically over a few years. Plus the media have been drumming into everyone that London prices only ever go up, so now even local people moving tend to want to hang on to theirs. The result is a market that has vanished up its own fundament. Unless there are significant property taxes or unless the unbridgeable gap between property owners and the rest stretches the elastic of society beyond breaking point, I can't see the market moving again or prices falling much for years. I've recently written to my mp suggesting annual tax measures on foreign owned stuff in London, probably won't make much difference but good to get it off the chest

Sure that's true? If you look at the volumes of sales in London through the LR, then I think that's not right.

3.3m households in London:

http://data.london.gov.uk/documents/focus-on-london-2011-housing.pdf

about 90K change hands per year (p12):

http://www.landregistry.gov.uk/__data/assets/pdf_file/0020/34706/HPI-Report-Jan-2013.pdf

so that's property moving at the rate of every 30-odd years per property.

Also, foreign buyers are more likely to sell simply because they don't live there!

[200p]

In the old days of hpc we used to speculate, that London would lead the crash and the rest of the UK would follow. How strange that seems now.

[winkie]

Thanks Bruce for the explanation.

Duke- Anecdotally, foreign buyers who now make up a big chunk of the market in London if not the biggest, tend to hold on to their places for a generation as opposed to local people who move on typically over a few years. Plus the media have been drumming into everyone that London prices only ever go up, so now even local people moving tend to want to hang on to theirs. The result is a market that has vanished up its own fundament. Unless there are significant property taxes or unless the unbridgeable gap between property owners and the rest stretches the elastic of society beyond breaking point, I can't see the market moving again or prices falling much for years. I've recently written to my mp suggesting annual tax measures on foreign owned stuff in London, probably won't make much difference but good to get it off the chest

I think you will find people are still moving but not selling....they are remortgaging renting it out and using the remortgaged money as a down payment on a new place.....who needs to work any more when your house(s) can do all the work for you.

[TwoWolves]

http://blogs.telegraph.co.uk/finance/files/2013/03/S-P-chart.jpg

London is only attractive because of the jobs, when the next boot of this cycle hits later this year London will lose its shine very quickly.

Look at the skyscrapers going up in the City right now, no bigger sign-post for an end of party rout.

[MRMX9]

Again we talk of London as one single entity - as if the property market in Kensington is the same as in Barking. The article refers as usual to west central London e.g. Kensington and Chelsea, Hammersmith and Fulham.

You rarely see an analysis for say outer London - where of course the vast majority of real Londoners live. Are house prices in Barking or Croydon or Uxbridge up an average - of £22,000 - or in reality is it central London data skewing the averages with prices in outer London not that different. I saw a similar article in the Standard about rising prices - with a small note in the bottom saying in 10 boroughs prices had fallen.

Maybe we need a London breakdown - i.e. excluding the places where Londoners can no longer afford to live anyway!

[Executive Sadman]

Yep, there should really be the 'city state of london' stretching from Docklands to hyde park, and the surrounding 'favelas' I havent been to London in a while, but on streetview most London suburbs away from the big private estates around the M25 now look seriously decrepit.

[Deckard]

Yep, there should really be the 'city state of london' stretching from Docklands to hyde park, and the surrounding 'favelas'

[Executive Sadman]

Sure that's true? If you look at the volumes of sales in London through the LR, then I think that's not right.

3.3m households in London:

http://data.london.gov.uk/documents/focus-on-london-2011-housing.pdf

about 90K change hands per year (p12):

http://www.landregistry.gov.uk/__data/assets/pdf_file/0020/34706/HPI-Report-Jan-2013.pdf

so that's property moving at the rate of every 30-odd years per property.

Also, foreign buyers are more likely to sell simply because they don't live there!

Yes, you would think it would be a higher turnover rate than the rest of the UK (average about 20 years IIRC) with a transient population who go to make their money, then move out of London to raise a family. Odd that its 50% longer on average.

Edited March 29, 2013 by Executive Sadman

[MongerOfDoom]

so that's property moving at the rate of every 30-odd years per property.

I am surprised the sales volume is holding up at all. You now need to be the 1% to pay for a family home in zone 2 near a good school. You will then find that the people who live around you and who have not bought recently earn less in a year than your new kitchen will cost.

I am surprised that there is no much more supply at the current prices. Clearly, even £50k is an enormous amount of money to many people who stay put rather downsize/move north. Maybe they just don't like the grotesque tax and cost inefficiency of withdrawing only that much from their house.

[MrPin]

All Bubbles pop eventually, and that includes London. Look at the blue chart on the front page! The trend seems to be down!

[sf-02]

Yep, back to the bad old days with London. I can remember prices going up by more than my salary each month and thinking why even bother saving.

In SE London past zone 2/3 prices are still at 2005 levels. Annual gorwth is around 1% if that in some areas. Around 20 minutes to central London too. Transport improvements such as the DLR havn't made much difference.

[thecrashingisles]

The housing market has a message for us:

[sf-02]

Again we talk of London as one single entity - as if the property market in Kensington is the same as in Barking. The article refers as usual to west central London e.g. Kensington and Chelsea, Hammersmith and Fulham.

You rarely see an analysis for say outer London - where of course the vast majority of real Londoners live. Are house prices in Barking or Croydon or Uxbridge up an average - of £22,000 - or in reality is it central London data skewing the averages with prices in outer London not that different. I saw a similar article in the Standard about rising prices - with a small note in the bottom saying in 10 boroughs prices had fallen.

Maybe we need a London breakdown - i.e. excluding the places where Londoners can no longer afford to live anyway!

Yes! Finally someone who gets London has wide variations within it, and in many outer areas is not rising. Most journalists don't report this at all.