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Damik

Is Prime London Crashing? - Merged Threads

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It stays flat when sellers try to sell at a certain price and then withdraw from the market when it cannot sell at that price rather than reducing it

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It stays flat when sellers try to sell at a certain price and then withdraw from the market when it cannot sell at that price rather than reducing it

Unless they are forced to sell/repossession.

Some BTLs, and OOs probably, are very marginal. A small increase in interest rate could result into a forced sale. In case of BTLs a small void, repairs can result into a sale. Last month I saw 3 BTL properties being forced to sell. The vendor had 3 properties: the oldest one did not pass safety check. Tenants were ok despite the safety check failure but the inspector did not budge. Tenants were served notice and property on market now (2+ months). This had an impact on the vendors overall finance and 2 other properties the vendor had. i don't think either of it is sold yet.

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I've been tracking a few towns in Norh Yorks for a good few years.

Regular check - Rightmove, pick town, list all new properties listed in last 7 days.

Part of my Saturday routine.

For the last 5 years Ive been doing it, the numbers have been pretty consistent.

I get some new listings, some details changed, a few reductions, a very odd increase.

The number is roughty proportional to the size of the town's population.

The RM 7 days new properties runs about 5 to 6 tims the rate which the Land registry (thanks houseprices.io) lists sales.

i.e. houses are piling up much faster than they are selling.

The week after the election was wierd - I saw about 5 times the normal new listing - seeing 150 rather than the normal 30 odd.

Good. I hope there is the meltdown to end all meltdowns in UK property, something to rival Day Of The Triffids.

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Guardian piece on Tower Hamlets, clearly designed to generate moral outrage. The comments should be interesting.

http://www.theguardian.com/lifeandstyle/2015/may/30/london-property-market-boom-housing-tower-hamlets

Estate agent David Campbell:

"Tower Hamlets has seen a wave of regeneration. Hackney is the golden child at the moment. Dalston became the coolest place in London. I almost think the more deprived and edgy the better. As soon as someone attaches the word “cool” to an area it stops being cool. Shoreditch changed from a gritty no-go area to being exceedingly trendy. Now it’s beginning to gentrify."

Mike Bickerton, head of new homes at DTZ:

"Go back four years and there wouldn’t have been much interest in Tower Hamlets. Now it’s trendy and vibrant, and you can walk to the Bank of England from here in 12 minutes. Tower Hamlets is one of London’s most deprived boroughs, but the area is smartening up and prices are rocketing. The local indigenous people are still there – we still have a jellied eel stand – but they’re surrounded by shiny glass and steel.

"People like the edgy feel of east London, the “real London” feel: rich people living cheek by jowl with poor people. Parts of west London feel so safe and mundane.

"Most overseas investors are looking for a good yield for renting, or buying apartments for their children. We have wealthy Chinese or Asian families who will put one of their kids in an apartment this size."

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Unless they are forced to sell/repossession.

Some BTLs, and OOs probably, are very marginal. A small increase in interest rate could result into a forced sale. In case of BTLs a small void, repairs can result into a sale. Last month I saw 3 BTL properties being forced to sell. The vendor had 3 properties: the oldest one did not pass safety check. Tenants were ok despite the safety check failure but the inspector did not budge. Tenants were served notice and property on market now (2+ months). This had an impact on the vendors overall finance and 2 other properties the vendor had. i don't think either of it is sold yet.

Was this in central London?

(as an aside I found Westminster was't very interested in safety checks on London flats I have lived in. I don't know of any BTL flats that I lived in or any of my neighbours or friends ever failing a safety check and the Westminster council standards were quite low IMHO)

Anything substandard in central London would sell pretty quickly I think (sadly)

Edited by Flopsy

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Interestingly I had another look at W9, NW6/10 and quite a few properties have been reduced by 20k.

Wouldn't say this represents the start of a crash but perhaps an adjustment to better reflect some other properties, however it does tell me that properties are not just flying off the shelf at any price as per Summer 2014.

Even one that I considered reasonably priced (i.e in line with current market) for the size/offering, has not sold after I viewed it 2 weeks ago.

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Interestingly I had another look at W9, NW6/10 and quite a few properties have been reduced by 20k.

Wouldn't say this represents the start of a crash but perhaps an adjustment to better reflect some other properties, however it does tell me that properties are not just flying off the shelf at any price as per Summer 2014.

Even one that I considered reasonably priced (i.e in line with current market) for the size/offering, has not sold after I viewed it 2 weeks ago.

Linky?

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Oh the joy at looking at the LR yoy sales volume figures:

February February Difference 2015 2014

1,000,001 – 1,500,000 267 286 -7%

1,500,001 – 2,000,000 104 145 -28%

Over 2,000,000 122 186 -34%

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RE latest LR report is that other prime London boroughs are now following K&C lead:

Camden -0,2%

Westminster -0,4%

H&F -0,5%

Richmond -0,4%

and so forth. The oligarchs are pulling out.

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Guardian piece on Tower Hamlets, clearly designed to generate moral outrage. The comments should be interesting.

"Tower Hamlets has seen a wave of regeneration. Hackney is the golden child at the moment. Dalston became the coolest place in London. I almost think the more deprived and edgy the better. As soon as someone attaches the word “cool” to an area it stops being cool. Shoreditch changed from a gritty no-go area to being exceedingly trendy. Now it’s beginning to gentrify."

.."Most overseas investors are looking for a good yield for renting, or buying apartments for their children. We have wealthy Chinese or Asian families who will put one of their kids in an apartment this size."

http://www.theguardian.com/lifeandstyle/2015/may/30/london-property-market-boom-housing-tower-hamlets

It's only hinted at in that article, but I think the theme in many articles, about unstoppable London-push-out-SE gentrification/purest HPI future, vast money to always come in, is amusing. It's the same for South California. So many people with a smug view prices/value is all locked in, and global sloshy money to maintain high prices forever.

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Was this in central London?

(as an aside I found Westminster was't very interested in safety checks on London flats I have lived in. I don't know of any BTL flats that I lived in or any of my neighbours or friends ever failing a safety check and the Westminster council standards were quite low IMHO)

Anything substandard in central London would sell pretty quickly I think (sadly)

No this was not in central London.

Edited by Fairyland

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  • 396 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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