Thursday, Oct 04, 2007
Prices set to Surge in London
Evening Standard: House Prices Surge Ahead
Apparently the extraordinary strength of the London economy is to blame. I guess everthing must be going better than we thought?
Posted by cyril @ 02:17 PM (1423 views) Add Comment
16 Comments
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1. Sold My Soul To The Never Never Never said...
A good reason to increase interest rates then ?
2. doomwatch said...
I saw this at lunch time an had to do a double take. It's the front page headline which UNUSUALLY takes up the whole page.
The editors at the London Evening Standard seem to be in a different country today. I'm not even going to
speculate what the agenta of this one is.
Normally the Standard is bullish about property in London, but it usually puts the spin "expert" figures and quotes on page 2 or 4.
They really have excelled themselves which this bit of advertising, oops, sorry, journalism.
Check out tonights "Home and Property" section where you'll be able to see more ads for overpriced flats and houses in the Stab End no one wants.
3. paul said...
This is an extraordinary piece of vested interest counter-spin.
Tip for Evening Standard Editors: Shouting really really loudly will not make the messasge more believable.
4. bingo said...
I'm sure that if I agreed to the kind of annual advertising spend that the property companies must every year in the Standard, then I could get them to announce on the front page anything I wanted them to... I do advertise my company in a trade magazine in return for this I get editorials and stories on my 'customers'. It's all about money at the end of the day, not really journalism...
5. confused76 said...
Well, what can I say? I guess the BoE did the right thing to keep rates on hold.
London is the capital of subprime. People on £200k / annum salaries feel overstretched and are considering to sell and downsize or to sell and rent. Mortgage payments are shooting through the roof and many of these people have already remortgaged once to go on interest only.
BtLosers are fooling themselves b'cause rentals are now just catching up with the levels of 2000, after the dark years 2002-2005
this has got the hallmarks of a classic bubble
Latest land registry data has shown that the slowdown starts from Chelsea
6. doomwatch said...
The only things "surging" prices are properties bought with funny money in Chelsea, Mayfair, Kensington etc.
by "entrepreneur" non doms. They don't really care how much they pay, just long as it's all washed.
7. confused76 said...
Question is that properties in the range £500k to £1.5m are falling in price, I guess oil money not interested. and that if it is all funny money that pushes prices up, rental yields can only go lower and lower.
8. vfr said...
just checked the date, no it's not April 1st. Do they really think anybody , but anybody is going to believe this rubbish.
9. stillthinking said...
Lots of people do believe this rubbish. Most of the people at my company who I have spoken to do believe that houses will continue to rise without end.
In fact, most want this to be true so to genuinely change opinions will require 'in your face' evidence of the first order.
10. maddison said...
Almost all asset classes rise over the very long term. That is what capitalism is all about. the problem is that the haves have alot and the havenots have f**k all
11. confused76 said...
sure maddison
stock prices grow with earnings and house prices grow with salaries and rentals. of course everything grows, except (see Japan) prices may have to come down 50% or more because there is a bubble
so if you are happy to stay invested in housing for 10 years and see no returns feel free
12. confused76 said...
... and of course, asset prices go down as cost of capital goes up... ummm mortgage interest rates are now close to 7%... which is double what they were 3 years ago. I wonder what that means for house prices... ummm
but hey, subprime mortgage rates are actually close to 10%, uhhhhh that is THREE times cost of capital of three years ago
but I thought it was a new era, a new paradigm
13. harold said...
"Almost all asset classes rise over the very long term. That is what capitalism is all about."
Hello? No, it's not what capitalism is all about, it's what inflation and a fiat system are all about. Do some reading.
14. robh said...
Having never read Marx (but having visited his grave, and been impressed by a rather fine beard and moustache), did he not have a theory that in the end there would not be enough money in mortgage equity release to keep people spending in HomeBase resulting in a limit to shareholders profits and capitalism grinding to a halt?
15. harold said...
robh, I believe Marx was particularly concerned about the KFC generation, and wrote extensively about the "hegemony of the golden arches". The guy was way-ahead of his time.
16. Wotser said...
i would not believe the headlines. I dont see any increases in North London, but I have seen my neighbours property go for at least 35k less than it would have less than a year ago. ( It went for 365k, less than asking price, and prices were running at 400-430k not long ago ). THere is a lot of sensationalism esp on the front page of the Std. also alot of smokescreens being created by BTLers as they quietly reduce their exposure --- I know a BTLer and he is selling a sizeable chunk of his portfolio, and at the same time trying to talk up the market!! I guess its a natural reaction to try and get the best prices before the inevitable panic sets in!!