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Sancho Panza

Rightmove:london Asking Prices Leap 10% In Just A Month

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Sky/Yahoo 21/10/13

'London house prices are said to have soared to a new high this month, beating their previous record by nearly £30,000 and fuelling fears that the capital is overheating.

Property website Rightmove said asking prices in the capital saw an "unsustainable" 10% month-on-month increase in October, pushing typical asking prices to £544,232, leapfrogging a previous high set in July by more than £28,000.

It put much of the increase down to a "frenzy" of activity in parts of prime inner London as overseas investors look for a safe haven to place their cash amid the troubles of the eurozone, which is "leaving the shelves bare".

Westminster was named as London's strongest-performing house price area in October. Prices there have soared by 11.9% month-on-month to reach £1.6m typically.

Kensington, Chelsea, Hammersmith and Fulham also recorded increases of 11.8% in sellers' asking prices over the month.

In comparison, Rightmove said across England and Wales, asking prices rose by 2.8% month-on-month, following two months of falls, to reach £252,418 on average.

Prices across the country are 3.8% higher than they were a year ago, although in London they have shot up by 13.8% over this period, Rightmove said.

Despite the overall upward march in prices, Rightmove said a bubble "seems a long way off in the majority of regions".

The patchy state of the housing market was still shown, as four areas recorded year-on-year falls in house values - Wales, the North, the North West and the West Midlands.

The North recorded the biggest year-on-year drop, with asking prices falling by 2.2% to reach £145,094 on average.

Sellers in Wales have dropped their asking prices by the second biggest amount over the last year, with prices falling by 1.4% annually to typically reach £165,708.

The findings come after the Council of Mortgage Lenders reported last week that lending activity is at its strongest in five years and the Office for National Statistics said UK house prices reached an all-time high of £247,000 in August, surpassing a previous 2008 peak.

Housing market activity among people with low deposits who have previously struggled to get on the property ladder is expected to increase further in the coming months, as a new phase of the Government's flagship Help-to-Buy scheme is fully fired into action.'

Edited by Sancho Panza

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Comedy gold. :lol:

I said the London bubble would collapse this year, I thought the Helf To Banks scheme might prolong it for a while but with madness like this I think I might just be right,

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Think how many people will read 10% monthly rises on property in London and be champing at the bit to buy now? I fear loads more.

Edit:

It is great though - London is just too expensive to work in. The majority cannot afford to earn enough to live there and who really wants to be doing long commutes daily.

Edited by The Masked Tulip

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Comedy gold. :lol:

I said the London bubble would collapse this year, I thought the Helf To Banks scheme might prolong it for a while but with madness like this I think I might just be right,

10% pm - the burst of the bubble can not be too far .. :)

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10% pm - the burst of the bubble can not be too far .. :)

This. The 5 live phone in this morning is worth a listen if it's still possible - the introductory 2 minutes described a market that would have the whole population in fits of laughter if it were a some other country rather than our own. As it was, we got Derbyshire getting a big one off on it all with excitement.

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10% pm - the burst of the bubble can not be too far .. :)

10% is not high enough......other parts of the country are relying on high London house prices and pensions to keep their own economies going, who else can now afford to buy property in many places all over the country?....the ripple effect, all this positive growth and productivity that is happening off the back of more lending and imported funding......why, we no longer need jobs when houses can do all the work. ;)

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Insanity. But the usual caution required with Rightmove stats. Many of those sellers will be flying kites for years to come. The good news is that October 2014 Rightmove stats will likely look utterly horrific (if you are seller).

Edited by StainlessSteelCat

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The good news is that October 2014 Rightmove stats will likely look utterly horrific (if you are seller).

We'll be in to election campaign for real then - this is just the foreplay.

Edited by slacker

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The mayor of Bristol, George Feguson, is on 'The Daily Politics' and was just talking about house prices.

He said that he thinks that H2B is fueling a house bubble but finished off by saying that if you are sitting on an expensive house in London what should you do - sell it and move to Bristol and buy one for half the price.

Yep, that is what he said I think? I say 'think' as my jaw dropped upon hearing it and, as I type this, I am unsure whether I heard him right. I will have to watch it on iplayer later on.

George, if you read this don't you see what will happen if Londoners did that? It would push up the price of houses in Bristol even further and make it much more difficult for local Bristol people - the people whose votes you rely on - to buy houses in their own city?

George, if I heard you right, it is the last thing Bristolian house buyers in Bristol need. It is a stupid idea IMPO.

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The mayor of Bristol, George Feguson, is on 'The Daily Politics' and was just talking about house prices.

He said that he thinks that H2B is fueling a house bubble but finished off by saying that if you are sitting on an expensive house in London what should you do - sell it and move to Bristol and buy one for half the price.

Yep, that is what he said I think? I say 'think' as my jaw dropped upon hearing it and, as I type this, I am unsure whether I heard him right. I will have to watch it on iplayer later on.

George, if you read this don't you see what will happen if Londoners did that? It would push up the price of houses in Bristol even further and make it much more difficult for local Bristol people - the people whose votes you rely on - to buy houses in their own city?

George, if I heard you right, it is the last thing Bristolian house buyers in Bristol need. It is a stupid idea IMPO.

Presumably George is a home owner of a certain age.

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The mayor of Bristol, George Feguson, is on 'The Daily Politics' and was just talking about house prices.

He said that he thinks that H2B is fueling a house bubble but finished off by saying that if you are sitting on an expensive house in London what should you do - sell it and move to Bristol and buy one for half the price.

Yep, that is what he said I think? I say 'think' as my jaw dropped upon hearing it and, as I type this, I am unsure whether I heard him right. I will have to watch it on iplayer later on.

George, if you read this don't you see what will happen if Londoners did that? It would push up the price of houses in Bristol even further and make it much more difficult for local Bristol people - the people whose votes you rely on - to buy houses in their own city?

George, if I heard you right, it is the last thing Bristolian house buyers in Bristol need. It is a stupid idea IMPO.

He's hoping they will spend the excess from a london house sale in the local economy.....

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George, if I heard you right, it is the last thing Bristolian house buyers in Bristol need. It is a stupid idea IMPO.

Yes indeed...

.... and it puts me in mind of all those property owners you see from the south east (usually late 50/s early 60's age group) on "Move to the Country", going to other areas outside the south east to view and saying "gosh, that house is sooo cheap!"....

It might be cheap for them having made untold fortunes on their properties in the south east, but it is not cheap to locals who are being priced out by people like this. :angry:

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He's hoping they will spend the excess from a london house sale in the local economy.....

It wouldn't be just house prices that get a lift. The price of everything else would take off too. :ph34r:

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These were the sorts of headlines we saw in 2007 just before the collapse.

Remember the classicS...

FTBs will need to pay £1m for a flat BY 2020.

Prices double every 10 years

You can't loose on powpedee

Buy Now before you miss out.

Don't owe the banks a fortune for a house ? ...They you're a ****t.

Ahhh, that all brings back memories.

I may not have reported all the headlines that accurately and definitely paraphrased at least one.

The train line building bubble had to collapse twice before they shut the banks and sorted the mess out for real, this is what is going to happen here.

The big question on everyone's lips shouldn't be the housing bubble ( in crazy asking prices ) but what banks will survive this mess.

Edited by TheCountOfNowhere

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http://

www.bristol.gov.uk/page/mayor/biography-mayor

George Ferguson, past President of the Royal Institute of British Architects, was co-founder of Ferguson Mann Architects in 1979 and founded the national UK wide network of practices, Acanthus, in 1986.

He has a wide variety of experience in architectural, master planning and regeneration projects, including urban regeneration and historic building work that formed the foundation of his practice.

..

He becomes the first independent mayor to lead a major city in Britain and was officially sworn in at a ceremony held at Brunel’s Passenger Shed, Temple Meads on 19th November 2012.

So as well as being Mayor he's an architect.

So it's no surprise he wants people to sell London houses and to buy houses in Bristol.

Likely plenty of refurbishment/new build architectural commissions and it'll help the "economy" - that is local shopkeepers etc and that'll help to put up prices in the shops. Then they might be able to afford higher council taxes etc. The council might even be able to put in a few more parking bays and collect some more parking taxes er fees.

Apart from existing home owners or mortgagers there'll be little or nothing for it outside of those circles and it'll just put Bristol's aspiring home buyers and lots of young people in a worse off position especially long term.

Edited by billybong

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These were the sorts of headlines we saw in 2007 just before the collapse.

Remember the classicS...

FTBs will need to pay £1m for a flat BY 2020.

Prices double every 10 years

You can't loose on powpedee

Buy Now before you miss out.

Don't owe the banks a fortune for a house ? ...They you're a ****t.

Ahhh, that all brings back memories.

I may not have reported all the headlines that accurately and definitely paraphrased at least one.

The train line building bubble had to collapse twice before they shut the banks and sorted the mess out for real, this is what is going to happen here.

The big question on everyone's lips shouldn't be the housing bubble ( in crazy asking prices ) but what banks will survive this mess.

Exactly, it definitely feels like a big leg down is coming.

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Exactly, it definitely feels like a big leg down is coming.

Except there is now a precedent for socialising bad mortgage debt as we're all in this together.

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Except there is now a precedent for socialising bad mortgage debt as we're all in this together.

Paying mortgages twice...once via rent, debtor/landlords mortgage and twice via taxes, bad debt mortgages. ;)

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10% pm - the burst of the bubble can not be too far .. :)

What bubble? Our illustrious Chancellor said only the other week that he saw no signs of a bubble.

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