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London House Prices Down 4.1% In August

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I thought this deserves it's own thread. According to the Rightmove house price index released today, London house prices are down 4.1%. The media are only reporting on the national drop of 1.7% but this is much more significant. So many people have been claiming London would not see the same property price drops as the rest of the country. Could the opposite be happening.

Look at page 6 of the report:

http://www.rightmove.co.uk/news/files/2010/08/august-2010.pdf

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I thought this deserves it's own thread. According to the Rightmove house price index released today, London house prices are down 4.1%. The media are only reporting on the national drop of 1.7% but this is much more significant. So many people have been claiming London would not see the same property price drops as the rest of the country. Could the opposite be happening.

Look at page 6 of the report:

http://www.rightmove...august-2010.pdf

Does London always lead the rest of the country?

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I thought this deserves it's own thread. According to the Rightmove house price index released today, London house prices are down 4.1%. The media are only reporting on the national drop of 1.7% but this is much more significant. So many people have been claiming London would not see the same property price drops as the rest of the country. Could the opposite be happening.

Look at page 6 of the report:

http://www.rightmove.co.uk/news/files/2010/08/august-2010.pdf

Not only does it deserve it's own thread, it deserves it's own sub-forum. Oh look, it's got one --> http://www.housepricecrash.co.uk/forum/index.php?showforum=61

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Does London always lead the rest of the country?

No, the rest of the country did not really participate in the bounce off the intermediary lows of mar 2009

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Cue IRs down to 0.01%, and half a trillion of queasing..

I think they will see where it goes. Obviously the authorities can now do anything within the limits of market toleration. If they can pay peoples mortgages they can knock a bit off the borrowed capital and add five years to the payment term etc? I don`t care if people already in a mortgage deal get "terms" from the bank, it won`t stop the bubble deflating because there is no new money coming in, and many of these people were mis-sold the house and the product anyway.

The main point for me is that the media/government/VI`s are now playing around the edges of talking up a big crash, maybe thinking they can put the brakes on if it gets too bad? Some will walk from their borrowing and their house, some will cling on, but enough will panic and chase the market down (maybe with BTL and second homes) to create a big swing to the downside, about which the VI`s can do nothing. It`s either full ON or totally OFF with the sheeple, there is no in-between, no subtle control possible IMO.

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I was wondering about this: any of those foreign investors who supposedly bought in London last year will have seen gains from the bounce in the London property market and gains from the strengthening pound. In terms of euros, they've probably seen overall gains of about 30%. Any wobble in the market and the temptation to cash in must be pretty strong.

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Where's Sibley? Probably offloading some property...

Maidstone is immune to the crash and went up 7% in August. Sibley has just released some equity and bought a beach hut in brighton

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London’s Worst Performers August 2010

Wandsworth £509,296 £542,870 -6.2%

Brent £526,619 £561,278 -6.2%

Richmond-upon-Thames £588,576 £626,919 -6.1%

Kingston-upon-Thames £553,527 £588,938 -6.0%

City of Westminster £1,195,667 £1,270,752 -5.9%

Brent is a cr*phole. I should know as I was unfortunate enough to grow up there. How on earth the average in Brent could possibly be over FIVE HUNDRED THOUSAND POUNDS is beyond me. £50k would be closer to the mark imho.

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London's Worst Performers August 2010

Wandsworth £509,296 £542,870 -6.2%

Brent £526,619 £561,278 -6.2%

Richmond-upon-Thames £588,576 £626,919 -6.1%

Kingston-upon-Thames £553,527 £588,938 -6.0%

City of Westminster £1,195,667 £1,270,752 -5.9%

Brent is a cr*phole. I should know as I was unfortunate enough to grow up there. How on earth the average in Brent could possibly be over FIVE HUNDRED THOUSAND POUNDS is beyond me. £50k would be closer to the mark imho.

laugh.gif

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Ah but Russian and Far Eastern Billionaires will always be in the queue for London! The bulls will say.

I think we'll find even billionaires are human, and markets are generally a function of human psychology.

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I do think that this statistic would benefit from a bit of annualising and rounding. After all we put up with it during the boom years.

So:

London Houses Prices are falling at an annualised rate of around 50%

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Brent is a cr*phole. I should know as I was unfortunate enough to grow up there. How on earth the average in Brent could possibly be over FIVE HUNDRED THOUSAND POUNDS is beyond me. £50k would be closer to the mark imho.

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Well quite. Having lived previously in Brent for a while I could NOT believe the prices some people were paying. Sadly, some are still paying it but I have seen a drop in the last 6/9 months.

There is a MASSIVE oversupply of flats in Brent with unrealistic prices, and a slew of properties which were bought at the height of the market by private "developers" which remain unrefurbished and on the market for ludicrous sums. They still believe you cannot lose money on property. Sadly, for now, the government agrees and is probably subsidizing the mortgages since these developers never had a real job in the first place.

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Very interesting thanks for posting. Strange that house prices are said in the national media to be at risk of huge falls in areas like the North (which have actually experienced a month on month increase) and not in London - where they have dipped precipitously. Still I expect it's all just a statistical blip...

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I thought this deserves it's own thread. According to the Rightmove house price index released today, London house prices are down 4.1%. The media are only reporting on the national drop of 1.7% but this is much more significant. So many people have been claiming London would not see the same property price drops as the rest of the country. Could the opposite be happening.

Look at page 6 of the report:

http://www.rightmove.co.uk/news/files/2010/08/august-2010.pdf

But...but how can this be? They are saying second home buying is reaching fever pitch and buyers are not able to find a single seller willing to part with their houses at any asking price with rapid gazumping spreading like a frenzied forest fire in the wake of unprecendented flying of the shelves demand?

http://www.bloomberg.com/news/2010-08-16/second-home-owners-in-england-rise-on-borrowing-costs-pick-up-in-tourism.html

Second-Home Owners in England Climb to Nine-Year High on Borrowing Costs
By Peter "Pete" Woodifield - Aug 16, 2010 12:07 PM GMT+0100
Business ExchangeTwitterDeliciousDiggFacebookLinkedInNewsvinePropellerYahoo! BuzzPrint The number of second-home owners in England rose in 2009 to the highest in at least nine years, fueled by low borrowing costs and an increase in tourism, Knight Frank LLC said.
The number of people owning an additional home increased 2.6 percent to 245,384, the London-based property broker said in an e-mailed report today. Knight Frank predicted that the total will climb another 2 percent to more than 250,000 this year.

http://www.bloomberg.com/news/2010-08-16/london-s-rich-enlist-new-breed-of-broker-to-aid-in-search-for-luxury-homes.html

London's Rich Enlist New Breed of Broker in Search for Homes
By Simon Packard - Aug 17, 2010 12:00 AM GMT+0100
“Over the past five years especially, there has been a quadrupling in the number of buying agents in the prime central London market and their numbers increase all the time,” said Noel de Keyzer, head of house sales at broker Savills Plc’s Sloane Street branch. Source: Savills L&P Ltd. via Bloomberg
Competition for high-end homes within commuting distance of London is also fierce. Here the agent’s research has to be even more exhaustive, said Mark Parkinson, who helped set up Middleton Advisors LLP in 2008 covering country homes in southern England. Photographer: Simon Dawson/Bloomberg
Beverley Kirby gave up trying to buy a house on her own in London’s Chelsea neighborhood after twice getting burned by owners reneging on agreements to sell to her.
The night before Kirby was due to sign for one 4.5 million- pound ($7 million) house a year ago, she was trumped by an offer that was 500,000 pounds higher. The aborted deal cost her 4,000 pounds in fees and left her with a few months to vacate the apartment she had sold.

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Sorry to crow about this again but I predicted here that Hammersmith & Fulham (-4.7%), Wandsworth (-6.2%), Richmond (-6.1%), Kingston (-6.0%), Camden (-5.3%) and Islington (-4.1%) would lead the way.

London will not be immune from the HPC as the MSM would like to have us believe - it will be the epicentre.

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In the same report on page 6 West Midlands down 4.4%.

Tunguska, anyone?

tunguska_event.jpg

Not a bad analogy.

The West Midlands was the traditional industrial heartland, over the last decade the private sector has been in a depression haemorrhaging jobs not because of public sector expansion but because of competition from China/India.

During the 'boom' years unemployment actually rose and average wages went down despite the Labour government creating incredible numbers of public sector jobs, the problem is they shipped in more immigrants than jobs they created.

Despite the devaluation of the pound, the area is still declining, fewer and fewer jobs in manufacturing and with the public sector cuts coming...

Ouch.

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Sorry to crow about this again but I predicted here that Hammersmith & Fulham (-4.7%), Wandsworth (-6.2%), Richmond (-6.1%), Kingston (-6.0%), Camden (-5.3%) and Islington (-4.1%) would lead the way.

London will not be immune from the HPC as the MSM would like to have us believe - it will be the epicentre.

Very impressed.

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  • 140 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%



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