Tuesday, Jan 13, 2009
London residential house prices lead the way down
FT: London house prices suffer fastest falls
House prices in London fell faster than anywhere else in the UK last year, with a drop of 13.3 per cent, according to figures from the Chesterton and the Centre for Economics and Business Research (CEBR) . The national year-on-year average decline was 12.8 per cent at the end of December, bringing the average price of a residential property in England and Wales down to £171,348.This figure is also a 1.6 per cent drop from November last year, and brings prices back to levels which were last seen in February 2006, the Chesterton House Price Poll of Polls revealed. December marked the sixteenth successive month of house price falls and recorded the largest year-on-year fall since the Poll of Polls began.
Posted by jack c @ 06:26 PM (481 views) Add Comment
9 Comments
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1. str 2007 said...
This is most strange, I thought we were told that London would be immune from falls.
2. jack c said...
@str 2007 - agreed, most commentators felt that if the market did slide then London would hold up better than other areas (J Uncle has always held a different view on this and maybe he's on the money)
3. tyrellcorporation said...
A mate of mine has a flat in St John's Wood. He experienced 25-30% gains for 3 straight years (with lesser gains during the preceding 7 years). It got so mental at one stage he was 'making' £200 a day just from his flat! Hardly surprising IMO that London is now experiencing a faster decline than elsewhere considering these facts.
4. tyrellcorporation said...
...that's 25%-30% gains per annum!
5. fjcruiser said...
Again, not surprising. London has lost more jobs than the rest of the country because of the city troubles. There are more BTLs than elsewhere. If I remember well, the same happened to London in the 90s. In the end it got hit harder as recession started in manufacturing then hit the service sector. at the same time, London should recover more quickly than the rest of the country. It still create more jobs during the expansion than the rest of the country put together.
6. str 2007 said...
Hi Jack
Don't know if you tried to send an email or not at the weekend, I only received 1 which said 'interesting' sure that wasn't you.
Note to self - if JU is right about the London falls then I'll get myself a pad in a few years because as sure as night follows day it'll all go crazy again in London at some point in the future (6 years after prices start to move again is my guess - that's the extent of peoples memories I believe).
tyrell
Gains like those show how out of control it all was.
What's interesting is despite very low interest rates and hence fairly low repayments on interest only mortgages, repayment mortages are still quite alot per month.
My point, £200,000 is quite alot of money however you dress it up. I think this fact got forgotten. (And no doubt your mates flat is a lot more than that)
7. jack c said...
@str 2007 - I received a failure notification but have just sent you a fresh test e-mail - let me know if you are receiving OK?
To pick up on your last point whilst the interest rates are very low it's repaying the capital thats expensive because the housing is still so over inflated.
8. charlie brooker said...
@fjcruiser Ironic isn't it? The very people who engineered and profited the most from the boom are now suffering the most from the bust!
9. drewster said...
@fjcruiser - I'm not sure if London has lost the most jobs proportionally, but with the end of massive bonuses it has certainly lost the most in pounds, even adjusted for London prices. One banker losing his £200k bonus is equivalent to ten £20k secretaries or twenty £10k shop assistants losing their jobs.