Jump to content
House Price Crash Forum
lets get it right

Someone Explain London House Prices

Recommended Posts

Some journo called something like Anna Tyzack writes a piece called 'Word on the Street' in Saturday's Telegraph. About a year ago her piece was pretty much a diary of her attempts to move from one basement flat in a road in Battersea to another. At the time the market was quiet, took a long time to sell, price falls etc - maybe it was a bit more than a year ago.

I seem to recall the money involved was in the 300k to 400k range.

On Saturday she reported on the sale of a flat in a house in her road (might have been the house she has a basement flat in - not sure). Anyway the asking price of a 3 bedroom flat in a house in a road on Battersea with (distant?) views of Battersea park is £1.95 million. It is under offer and she has been told by the agent - 'at very close to the asking price'.

I know Chelsea and Knightsbridge have always been the stamping ground of the seriously rich and that, therefore, house prices there do not relate to mere mortals.

But, a 3 bedroom conversion in a house in Battersea for nearly £2 million! When I was a kid we used to drive through Battersea on our way to visit an aunt over in Tooting Bec - and even in those days it was 'wind the windows up and lock the doors' territory.

Where I live - what 30 miles from Battersea - £2 million quid buys you a bloody huge, nice house - probably with an acre of ground, a tennis court and maybe even an indoor swimming pool etc. etc.

Why would ANYONE pay £2 million for a 3 bed flat in Battersea? Russian oligarch or not - how could the rent ever provide any sort of a return?

Share this post


Link to post
Share on other sites

Some journo called something like Anna Tyzack writes a piece called 'Word on the Street' in Saturday's Telegraph. About a year ago her piece was pretty much a diary of her attempts to move from one basement flat in a road in Battersea to another. At the time the market was quiet, took a long time to sell, price falls etc - maybe it was a bit more than a year ago.

I seem to recall the money involved was in the 300k to 400k range.

On Saturday she reported on the sale of a flat in a house in her road (might have been the house she has a basement flat in - not sure). Anyway the asking price of a 3 bedroom flat in a house in a road on Battersea with (distant?) views of Battersea park is £1.95 million. It is under offer and she has been told by the agent - 'at very close to the asking price'.

I know Chelsea and Knightsbridge have always been the stamping ground of the seriously rich and that, therefore, house prices there do not relate to mere mortals.

But, a 3 bedroom conversion in a house in Battersea for nearly £2 million! When I was a kid we used to drive through Battersea on our way to visit an aunt over in Tooting Bec - and even in those days it was 'wind the windows up and lock the doors' territory.

Where I live - what 30 miles from Battersea - £2 million quid buys you a bloody huge, nice house - probably with an acre of ground, a tennis court and maybe even an indoor swimming pool etc. etc.

Why would ANYONE pay £2 million for a 3 bed flat in Battersea? Russian oligarch or not - how could the rent ever provide any sort of a return?

House Price inflation?

Share this post


Link to post
Share on other sites

The media can always find extreme examples to push the HPI propaganda.........it is a drip drip drip ramping technique by which even those who doubt the value of overpriced property will gradually become beguiled.

Share this post


Link to post
Share on other sites

Rent vs Buy in these areas of London indicates lunatic buyers with an excess of cash generating no income in the bank, or a lot of bankers who knows something we don't about a coming inflation surge that will increase wages.

I pay 1350/month for a house in such an area where two similar houses on the same road have just sold for 650K.

Share this post


Link to post
Share on other sites

...I pay 1350/month for a house in such an area where two similar houses on the same road have just sold for 650K.

gross rental yield a smidgen below 2.5%? nice.

the same is often true of bigger and/or nicer properties throughout the country though... i'm not really convinced that rental yields in london are noticably out of kilter with the rest of the country...

basically prime and even semi-prime, well anything other than slum really, london rents are much higher than the rest of the country because there are so many highly paid workers in london and then... like everywhere else in the country loose lending and exuberence pushed prices way out of line with rents...

Edited by the flying pig

Share this post


Link to post
Share on other sites

Having lived in London for over 20 years (recently moved back to the West Mids...ahhhhh, the promised land !!!) house prices can vary dramatically in a tiny geographical area - even street by street there can be big differences. I went to a wedding in Battersea nearly 15 years ago and it was a shi* hole. As London house prices have increased areas closest to London have been "gentrified" as increasingly expensive properties have been bought by professionals. I still think Battersea is a shi* hole but there is less chance of a mugging than there was 10 years ago and its close to town. Personally I'm more shocked at the prices of some of the appartments in Birmingham town centre - I don't see the jobs to support the prices.

Share this post


Link to post
Share on other sites

Some journo called something like Anna Tyzack writes a piece called 'Word on the Street' in Saturday's Telegraph. About a year ago her piece was pretty much a diary of her attempts to move from one basement flat in a road in Battersea to another. At the time the market was quiet, took a long time to sell, price falls etc - maybe it was a bit more than a year ago.

I seem to recall the money involved was in the 300k to 400k range.

On Saturday she reported on the sale of a flat in a house in her road (might have been the house she has a basement flat in - not sure). Anyway the asking price of a 3 bedroom flat in a house in a road on Battersea with (distant?) views of Battersea park is £1.95 million. It is under offer and she has been told by the agent - 'at very close to the asking price'.

I know Chelsea and Knightsbridge have always been the stamping ground of the seriously rich and that, therefore, house prices there do not relate to mere mortals.

But, a 3 bedroom conversion in a house in Battersea for nearly £2 million! When I was a kid we used to drive through Battersea on our way to visit an aunt over in Tooting Bec - and even in those days it was 'wind the windows up and lock the doors' territory.

Where I live - what 30 miles from Battersea - £2 million quid buys you a bloody huge, nice house - probably with an acre of ground, a tennis court and maybe even an indoor swimming pool etc. etc.

Why would ANYONE pay £2 million for a 3 bed flat in Battersea? Russian oligarch or not - how could the rent ever provide any sort of a return?

It's all about sentiment. There is a belief that London property will always be in high demand because of the City and foreign buyers etc.

The people I know who own property in London think they are on to a winner, and are quite smug about the fact that they are 'on the ladder' and that others have 'missed the boat' and will only be able to rent for the rest of their lives. I believe things will change as the UK becomes poorer and living standards fall, but it won't happen overnight. The amount of vested interest in keeping London prices high is massive and can't be underestimated.

Share this post


Link to post
Share on other sites

It's all about sentiment. There is a belief that London property will always be in high demand because of the City and foreign buyers etc.

The people I know who own property in London think they are on to a winner, and are quite smug about the fact that they are 'on the ladder' and that others have 'missed the boat' and will only be able to rent for the rest of their lives. I believe things will change as the UK becomes poorer and living standards fall, but it won't happen overnight. The amount of vested interest in keeping London prices high is massive and can't be underestimated.

Yep, thats about it, there is an unbreakable belief in property as a sound investment, when that sentiment exists things such as yield are immaterial, there is 100% belief in capital growth, that the asset class is underpriced. When you have seen the likes of Real Networks trading for $150 a share based on nothing tangible it is easy to understand the psychology behind any price being justifiable

Share this post


Link to post
Share on other sites

Some journo called something like Anna Tyzack writes a piece called 'Word on the Street' in Saturday's Telegraph. About a year ago her piece was pretty much a diary of her attempts to move from one basement flat in a road in Battersea to another. At the time the market was quiet, took a long time to sell, price falls etc - maybe it was a bit more than a year ago.

I seem to recall the money involved was in the 300k to 400k range.

On Saturday she reported on the sale of a flat in a house in her road (might have been the house she has a basement flat in - not sure). Anyway the asking price of a 3 bedroom flat in a house in a road on Battersea with (distant?) views of Battersea park is £1.95 million. It is under offer and she has been told by the agent - 'at very close to the asking price'.

I know Chelsea and Knightsbridge have always been the stamping ground of the seriously rich and that, therefore, house prices there do not relate to mere mortals.

But, a 3 bedroom conversion in a house in Battersea for nearly £2 million! When I was a kid we used to drive through Battersea on our way to visit an aunt over in Tooting Bec - and even in those days it was 'wind the windows up and lock the doors' territory.

Where I live - what 30 miles from Battersea - £2 million quid buys you a bloody huge, nice house - probably with an acre of ground, a tennis court and maybe even an indoor swimming pool etc. etc.

Why would ANYONE pay £2 million for a 3 bed flat in Battersea? Russian oligarch or not - how could the rent ever provide any sort of a return?

Thanks for posting your disbelief in this nonsense. It is only a few victorian bricks on a piece of wasteland after all. What's more people who work 'in the city' and live in such 'grandeur' think they are well off!!! You could find these same homes appearing in photos when they were near enough slums in the past. It's the same in Brighton where terraced properties built for 'fishermen' are lived in by up and coming professionals with two largely unecessary degrees who seem to think they are doing well! At £400k for a 2 up 2 down terrace in Brighton with a courtyard 'garden' near the station you'd need to believe something! Then look in the paper and see the jobs at £5.75 ph.

It is all barking batty mad and will crumble like fiat currency. Just look at the thread to the Telegaraph article today - the cliff edge has been reached and we are hanging on by the fingernails. The real price for 60sqm of land and a few very old bricks?? Oh, yes, sorry.... a beautiful period cottage sympathetically restored.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 152 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.