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wukka

No Hpc In London...

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I'm always hearing how for some reason London is different. OK, I can believe that in some very specific parts (Knightsbridge, Mayfair, Chelsea) perhaps different rules DO apply - rich people from all over the world want to live there (at least while London is a financial centre, but that's a different conversation...)

However, why is South West Putney any different from the rest of the country? Relatively normal people live there, with mortgages and jobs. Interest rates go up, mortgage becomes more expensive, you eventually choose (or are forced) to sell your house. Seems obvious to me.

Anyway, I'm looking to buy around there (just a modest flat, nothing clever) and the prices have been remaining about the same as 5 years ago. That was until today, when I saw this:

http://www.rightmove.co.uk/property-for-sale/property-17549664.html

Admittedly it was quite expensive to start with, but those of you with PB can see that surely even the famously 'stable' London prices must surely be under pressure. It only takes a few of these (I assume) pressured sales to take hold in a market like this, and it seriously affects the average sales prices (at such low volumes.) Then the panic sets in.

I say keep the faith, brothers and sisters, even if you are looking to buy in the big city.

Sorry for such a long first post!

(PS What's that? You say it's still about 100% overpriced? Oh yes, I know... but you've got to start somewhere...)

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Not to flog a horse, but further evidence is mounting...

Bear in mind this is considered a relatively affluent part of SW London. Not Mayfair, certainly, but 'nice'.

http://www.rightmove.co.uk/property-for-sale/property-31106963.html

http://www.rightmove.co.uk/property-for-sale/property-26852137.html

http://www.rightmove.co.uk/property-for-sale/property-15865071.html

http://www.rightmove.co.uk/property-for-sale/property-17549664.html

All over 15% drops in asking price. Admittedly they've all been on for a while (the lowest 27 weeks) but that I think just adds grist to the mill?

I've been watching this area for 3 years, now, and this is definitely the 'worst' it's been so far.

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I'm always hearing how for some reason London is different. OK, I can believe that in some very specific parts (Knightsbridge, Mayfair, Chelsea) perhaps different rules DO apply - rich people from all over the world want to live there (at least while London is a financial centre, but that's a different conversation...)

However, why is South West Putney any different from the rest of the country? Relatively normal people live there, with mortgages and jobs. Interest rates go up, mortgage becomes more expensive, you eventually choose (or are forced) to sell your house. Seems obvious to me.

Anyway, I'm looking to buy around there (just a modest flat, nothing clever) and the prices have been remaining about the same as 5 years ago. That was until today, when I saw this:

http://www.rightmove.co.uk/property-for-sale/property-17549664.html

Admittedly it was quite expensive to start with, but those of you with PB can see that surely even the famously 'stable' London prices must surely be under pressure. It only takes a few of these (I assume) pressured sales to take hold in a market like this, and it seriously affects the average sales prices (at such low volumes.) Then the panic sets in.

I say keep the faith, brothers and sisters, even if you are looking to buy in the big city.

Sorry for such a long first post!

(PS What's that? You say it's still about 100% overpriced? Oh yes, I know... but you've got to start somewhere...)

But it's going to auction. Some moron will bid it back up to 350! :angry:

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I'm always hearing how for some reason London is different. OK, I can believe that in some very specific parts (Knightsbridge, Mayfair, Chelsea) perhaps different rules DO apply - rich people from all over the world want to live there (at least while London is a financial centre, but that's a different conversation...)

However, why is South West Putney any different from the rest of the country? Relatively normal people live there, with mortgages and jobs. Interest rates go up, mortgage becomes more expensive, you eventually choose (or are forced) to sell your house. Seems obvious to me.

Anyway, I'm looking to buy around there (just a modest flat, nothing clever) and the prices have been remaining about the same as 5 years ago. That was until today, when I saw this:

http://www.rightmove...y-17549664.html

Admittedly it was quite expensive to start with, but those of you with PB can see that surely even the famously 'stable' London prices must surely be under pressure. It only takes a few of these (I assume) pressured sales to take hold in a market like this, and it seriously affects the average sales prices (at such low volumes.) Then the panic sets in.

I say keep the faith, brothers and sisters, even if you are looking to buy in the big city.

Sorry for such a long first post!

(PS What's that? You say it's still about 100% overpriced? Oh yes, I know... but you've got to start somewhere...)

Cash buyer only. It's a leasehold, Hamptons don't seem to think declaring the number of years left on the lease is relevant?

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Not to flog a horse, but further evidence is mounting...

Bear in mind this is considered a relatively affluent part of SW London. Not Mayfair, certainly, but 'nice'.

http://www.rightmove...y-31106963.html

http://www.rightmove...y-26852137.html

http://www.rightmove...y-15865071.html

http://www.rightmove...y-17549664.html

All over 15% drops in asking price. Admittedly they've all been on for a while (the lowest 27 weeks) but that I think just adds grist to the mill?

I've been watching this area for 3 years, now, and this is definitely the 'worst' it's been so far.

Overpriced hovels. Zone 3 too, shocking...

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Anecdotally I can say for sure there is a house price crash in London.

I bought a 2 bed flat in Hornsey in 2005 for the same price as the 2004 price and it is now estate agent valued at 5-10% less than purchase price.

I rent the flat out and the area is extremely popular, haven't had a void in 4 years and rent covers mortgage interest on 66% LTV by around 5 x so it is a good income investment at the moment but the real price has dropped massively,

So basically, I don't buy the whole London thing.

The flat is (was) a new build so I can't speak for non new builds. I asked the estate agent for a valuation if it was priced to sell while doing a further rental contract. Foxtons and the same estate agent have flats priced at 20% more than the priced to sell valuation (which the estate agent said nothing will really sell over this). EA said he puts the flats on at prices the seller wants not what he tells them they can get for it.

Edited by nohpc

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The flat is (was) a new build so I can't speak for non new builds.

Wouldn't you expect new builds to be more expensive, like new cars?

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Was in London yesterday and decided to look around my old stomping grounds. Ten years ago I was renting something like this:

http://www.rightmove.co.uk/property-to-rent/property-30335635.html

Rents about the same (I was paying £200 pw in 2001/2 which is quite a fall in real terms. Buying prices then were £250,000 and I saw similar for sale for around £235,000.

Pretty soul destroying place to live though, despite the fact the DLR is now much extended.

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I'm always hearing how for some reason London is different. OK, I can believe that in some very specific parts (Knightsbridge, Mayfair, Chelsea) perhaps different rules DO apply - rich people from all over the world want to live there (at least while London is a financial centre, but that's a different conversation...)

However, why is South West Putney any different from the rest of the country? Relatively normal people live there, with mortgages and jobs. Interest rates go up, mortgage becomes more expensive, you eventually choose (or are forced) to sell your house. Seems obvious to me.

Anyway, I'm looking to buy around there (just a modest flat, nothing clever) and the prices have been remaining about the same as 5 years ago. That was until today, when I saw this:

http://www.rightmove.co.uk/property-for-sale/property-17549664.html

Admittedly it was quite expensive to start with, but those of you with PB can see that surely even the famously 'stable' London prices must surely be under pressure. It only takes a few of these (I assume) pressured sales to take hold in a market like this, and it seriously affects the average sales prices (at such low volumes.) Then the panic sets in.

I say keep the faith, brothers and sisters, even if you are looking to buy in the big city.

Sorry for such a long first post!

(PS What's that? You say it's still about 100% overpriced? Oh yes, I know... but you've got to start somewhere...)

I'm renting near the east putney station at the moment. The purpose-built flats near me that come on the market seem

to go under offer without any reduction in the price. Although I haven't seen any new ones on the market

for a while.

I'm looking to get out of putney. It's nice around here with good transport links and everything but being right under

the flight path is starting to do my head in. Not nice being waken up 5.30am /6.0am by what sounds like a

dentist's drill. I guess some people get used to it but I haven't.

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flat in 1st post is above a chippy - I rang them to check :)

rents for about 1500 pcm mind, so prob a good buy if it was on at 250k

none of the banks will lend on it, hence cash buyer.

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I'm always hearing how for some reason London is different. OK, I can believe that in some very specific parts (Knightsbridge, Mayfair, Chelsea) perhaps different rules DO apply - rich people from all over the world want to live there (at least while London is a financial centre, but that's a different conversation...)

However, why is South West Putney any different from the rest of the country? Relatively normal people live there, with mortgages and jobs. Interest rates go up, mortgage becomes more expensive, you eventually choose (or are forced) to sell your house. Seems obvious to me.

Anyway, I'm looking to buy around there (just a modest flat, nothing clever) and the prices have been remaining about the same as 5 years ago. That was until today, when I saw this:

http://www.rightmove.co.uk/property-for-sale/property-17549664.html

Admittedly it was quite expensive to start with, but those of you with PB can see that surely even the famously 'stable' London prices must surely be under pressure. It only takes a few of these (I assume) pressured sales to take hold in a market like this, and it seriously affects the average sales prices (at such low volumes.) Then the panic sets in.

I say keep the faith, brothers and sisters, even if you are looking to buy in the big city.

Sorry for such a long first post!

(PS What's that? You say it's still about 100% overpriced? Oh yes, I know... but you've got to start somewhere...)

The uber-rich buying in Chelsea displaces the rich into Richmond, which in turn displaces the well off into Barnes, which in turn displaces the comfortably off into Putney.

The hip bone's connected to thigh bone...

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The uber-rich buying in Chelsea displaces the rich over-indebted into Richmond, which in turn displaces the well off over-indebted into Barnes, which in turn displaces the comfortably off over-indebted into Putney.

Corrected for you. The Jones who live in Richmond, Barnes or Putney are not rich, well off or comfortably off. They're all struggling and p*ss poor.

This correction should show clearly how this is going to evolve.

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Wouldn't you expect new builds to be more expensive, like new cars?

I guess it did come with all the mod cons which may need replaced at some point,

I don't think it is quits like buying a new car though

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The uber-rich buying in Chelsea displaces the rich into Richmond, which in turn displaces the well off into Barnes, which in turn displaces the comfortably off into Putney.

The hip bone's connected to thigh bone...

I agree, that is exactly why these 'secondary' places in London have got so high. The OP makes a good point, though. A lot of these flats have come down to prices less than I would expect to pay in my area, much further out into zone 6 (a few more places down the 'displacement' ladder).

I suppose that these are mainly flats above shops etc, but are still much less than I am used to seeing in Putney. It can't be bad news!

Edited by worried1

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I suppose that these are mainly flats above shops etc, but are still much less than I am used to seeing in Putney. It can't be bad news!

Actually two of them are in Fulham - north of the river!

I take on board the point about the trickle effect, but can't help but feel that's an oversimplification that only applies to larger family houses bought with a certain amount of ready-possessed equity. I think the FTB flat market is a different matter, and the problem(?) is that *that* will have a trickle up effect in local areas. So flat prices will drop, and eventually bring the prices of local larger houses down as well. My only question is whether that effect will be powerful enough to travel back up the food chain and destroy 'prime London' as well. After all, even the uber rich are only buying around there because of confidence in the market. What happens if even that fails and all the institutional foreign investors all try to withdraw immediately?

I wouldn't bet my life on it, but forced to make a prediciton, two phrases keep coming to mind - 'What goes up, must come down' and 'The bigger they are, the harder they fall...'

(Although I'm looking to buy, and it's always so hard to tell the difference between well-thought out reasoning, and wishful thinking!)

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As I've said many times, London N2 is proving extraordinarily resilient to the point that we've seen 20%+ increases in 3 bed semis over the past two years. Influx of 'moneyed' people from neighbouring areas (who can't quite afford Hampstead) seem to be pushing prices up.

Another bubble, perhaps, but it's a pain for me and my family who have lived locally for 5 years and are looking to buy...

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As I've said many times, London N2 is proving extraordinarily resilient to the point that we've seen 20%+ increases in 3 bed semis over the past two years. Influx of 'moneyed' people from neighbouring areas (who can't quite afford Hampstead) seem to be pushing prices up.

Another bubble, perhaps, but it's a pain for me and my family who have lived locally for 5 years and are looking to buy...

Have you been watching the cheaper flat prices in the area as well? My theory is that you'll begin to see them dropping (maybe even from now if it's happening in other suburbs of London like Putney...) and then 6 months to a year later that will have bought the prices of the whole area down - even the larger houses.

But I do agree - it's extremely frustrating all this waiting around, and despite everything, there's no certainty it'll be worth it! I started looking to buy just before the sub-prime affair and have been watching and waiting ever since. And in that time I've gone from a sort of smug-self-certainty to a weary-stubborness!

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I agree, that is exactly why these 'secondary' places in London have got so high. The OP makes a good point, though. A lot of these flats have come down to prices less than I would expect to pay in my area, much further out into zone 6 (a few more places down the 'displacement' ladder).

I suppose that these are mainly flats above shops etc, but are still much less than I am used to seeing in Putney. It can't be bad news!

Ok, I must be dirt poor, or an absolute mug to accept my current salary. 300k or more for a ******ing flat. How much do you need to earn in this area?

I can't wait to move away from London.

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Not to flog a horse, but further evidence is mounting...

Bear in mind this is considered a relatively affluent part of SW London. Not Mayfair, certainly, but 'nice'.

http://www.rightmove.co.uk/property-for-sale/property-31106963.html

http://www.rightmove.co.uk/property-for-sale/property-26852137.html

http://www.rightmove.co.uk/property-for-sale/property-15865071.html

http://www.rightmove.co.uk/property-for-sale/property-17549664.html

All over 15% drops in asking price. Admittedly they've all been on for a while (the lowest 27 weeks) but that I think just adds grist to the mill?

I've been watching this area for 3 years, now, and this is definitely the 'worst' it's been so far.

No. 2 is very good space for the money - ex LAs very often are. No photo of the outside, though, so it's probably a horrible looking block.

Decor will put a lot of people off, but you could make it a million times nicer for not a vast amount.

Much better than average ex LAs in SW15 are in the Putney Heath area. Good space, nice green area, reasonably nice looking blocks, not far from trains/tube, parking, virtually all with balconies, too:

http://www.findaproperty.com/displayprop.aspx?edid=00&salerent=0&pid=4916574

http://www.findaproperty.com/displayprop.aspx?edid=00&salerent=0&pid=5602170

and a 3-bed:

http://img.findaproperty.com/barnard-marcus/Putney-Sales/m18357928.jpg?v=66

These have all come down quite a bit since the peak.

Edited by Mrs Bear

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Have you been watching the cheaper flat prices in the area as well? My theory is that you'll begin to see them dropping (maybe even from now if it's happening in other suburbs of London like Putney...) and then 6 months to a year later that will have bought the prices of the whole area down - even the larger houses.

But I do agree - it's extremely frustrating all this waiting around, and despite everything, there's no certainty it'll be worth it! I started looking to buy just before the sub-prime affair and have been watching and waiting ever since. And in that time I've gone from a sort of smug-self-certainty to a weary-stubborness!

The 'cheaper' flats are cheap for a reason - they're not in the 'nice' bit of N2. Anywhere within 10 mins walk to the tube is still ludicrously priced.

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Cash buyer only. It's a leasehold, Hamptons don't seem to think declaring the number of years left on the lease is relevant?

The flat is above a shop. At the moment it is almost impossible to get a mortgage on such a property, which is probably why it's going to auction.

Between Jan - March I relentlessly search for app sub-300k properties with a S or SW postcode, so I know the state of the market pretty well. Asking prices in Jan/Feb were pretty soft, but they picked up again over Spring. Now that bounce is over it seems we are slowly grinding back down again. There are a lot of awful ex-council places available at cheaper prices, but whether you could tolerate living there is another matter. The properties that are in good condition and well priced are fiercely contested by buyers in a position to do so, but in this market no one wants to pay top dollar. The 250k stamp duty band is a real killer - lots of 1br and 2br flats are affected by this.

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Cash buyer only. It's a leasehold, Hamptons don't seem to think declaring the number of years left on the lease is relevant?

The flat is above a shop. At the moment it is almost impossible to get a mortgage on such a property, which is probably why it's going to auction.

Between Jan - March I relentlessly search for app sub-300k properties with a S or SW postcode, so I know the state of the market pretty well. Asking prices in Jan/Feb were pretty soft, but they picked up again over Spring. Now that bounce is over it seems we are slowly grinding back down again. There are a lot of awful ex-council places available at cheaper prices, but whether you could tolerate living there is another matter. The properties that are in good condition and well priced are fiercely contested by buyers in a position to do so, but in this market no one wants to pay top dollar. The 250k stamp duty band is a real killer - lots of 1br and 2br flats are affected by this.

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I take on board the point about the trickle effect, but can't help but feel that's an oversimplification that only applies to larger family houses bought with a certain amount of ready-possessed equity. I think the FTB flat market is a different matter, and the problem(?) is that *that* will have a trickle up effect in local areas. So flat prices will drop, and eventually bring the prices of local larger houses down as well.!)

It would seem like an oversimplification, but that is how it seems to be working at the moment.

I live in an area that has been badly evvected by this trickle effect. Edge of zone 6 with the type of areas you are talking about to the north and the 'banker belt' of Esher and Cobham to the south.

What this has meant is that the better 3 bed semis have bubbled up to £750k when (even in this over-priced market) they should really be no more than £500k. This prices out couples who have recently has their first child, and I have seen a massive increase in families with 1/2 children carrying on living in flats rather than moving to houses as they would have doen a few years ago.

This has in turn supported the price of flats and further prevented the traditional FTBs from buying.

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I bought in Zone 3 last year. Good decent House close to the DLR and as present its looking to be a good buy.

Only time will tell I guess

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  • 284 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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