Monday, Jan 12, 2009
Interesting take on Why Prime London Prices Might Have Further to Fall
Exceptional Homes Research: London Rentals Market May be Signalling Big Asking Price Falls in 2009
This piece argues that rentals yields on prime London properties are still much too low (based on asking prices) and therefore that asking prices need to come down quite a lot to bring them into line with what has happened in commercial property.
Posted by j howard @ 02:55 PM (324 views) Add Comment
4 Comments
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1. hogwash said...
Great typoe on the top of their pdf
www.exceptionalhones.co.uk
quality....
(Maybe this site could evolve into : www.hosericecash.co.uk)
2. will said...
Well worth a read, for anyone still in denial. Perhaps all estate agents.
3. Rentedroof said...
It comes to something when this kind of simple market mathematics seems like a revelation just because it's been published. The BBC,The Times, Daily Mail et all take note.
4. montesquieu said...
Great turn of phrase, anticipating 'bonfire of the fantasies'. Wonderful stuff. Predicting average 35% drop to bring london yields up to 5.5%.
Actually this has held for a long, long time, right down the chain. I'm currently renting a house for £1600 a month, a 2.9% gross yield on the typical £650k asking price for this 4-bed double garage in a rather nice 1980s Barrat development looking onto Berkshire countryside, walking distance to the Waterloo train. Would need a 50% drop to £320k to take the yield above 5.5%. Which feels about right in a couple of years.