Is Prime London Crashing? - Merged Threads

[billybong]

^

He insisted he would "absolutely" bring in a regime where dwellings would have to be marketed in the capital for the first six months in order to receive permission to be built.

Asked on ITV's Peston On Sunday if he would impose such rules, Mr Khan said: "Absolutely. We shouldn't be embarrassed about saying first dibs to Londoners, we shouldn't be embarrassed of saying we need to build homes for Londoners.

Not a "regime" (a word with connotations of ruthless control) but just tinkering unfortunately. In actual fact it'll make absolutely no difference as the units will be marketed even before construction starts so before they're finished they'll already be offering them to the rich people overseas.

The point is that rich overseas buyers set prices so that Londoners can't afford the "dwellings" so offering them for a few months to Londoners at current prices ("first dibs" what a laugh - realistically it's no dibs) just delays the time when they are offered to and sold to rich overseas buyers. For sure builders will complain but will agree to the condition as a political sop to Khan.

Things have got so bad to have an effect rich overseas buyers have to be banned completely now.

Edited May 30, 2016 by billybong

[frederico]

I understood he was going to insist more affordable homes are included in developments. He was also going to lower the level at which affordability is set, currently it is 80% of market value.

London is becoming a cauldron of real anger against the cost of housing now.

[billybong]

I understood he was going to insist more affordable homes are included in developments. He was also going to lower the level at which affordability is set, currently it is 80% of market value.

London is becoming a cauldron of real anger against the cost of housing now.

One can certainly understand it as each new contender for the role of London property saviour seems to turn out to be just another windbag full of ineffective policies and empty promises to get elected. Then another few years passes with nothing done.

Edited May 30, 2016 by billybong

[frederico]

One can certainly understand it as each new contender for the role of London property saviour seems to turn out to be just another windbag full of ineffective policies and empty promises. Then another few years passes with nothing done.

Yes but eventually something will have to be done, no choice.

[MARTINX9]

I understood he was going to insist more affordable homes are included in developments. He was also going to lower the level at which affordability is set, currently it is 80% of market value.London is becoming a cauldron of real anger against the cost of housing now.

That's intermediate rent - the 80 per cent of market figure. But that's still unaffordable on most new builds.

Shared ownership is another ball game. I recently saw a one bed affordable shared ownership flat marketed in Chiswick which limited you to a maximum salary of £71000 but required you to have a £150,000 - yes one hundred and fifty thousand pounds - deposit to buy it. And you had already to be living in Ealing. Armed forces personnel would have priority - cos on a squaddies wage saving £150k is easy. It's still available I see.

Lots of shared ownership new builds being marketed around zone 1 - some of the two beds will cost you £2600 a month for a 25 per cent share including service charge and rent (which you will still have to pay in retirement) of £1600 a month.

Affordable - for whom exactly?!

https://www.sharetobuy.com/firststeps/sharedownershippropertydetails?id=23229

https://www.sharetobuy.com/firststeps/sharedownershippropertydetails?id=21500

Edited May 30, 2016 by MARTINX9

[dances with sheeple]

What's all this chat about London house/rent prices. I thought this was the brexit thread.

Fair few financial and BTL types will poop themselves in London if it`s Brexit I think.

[MARTINX9]

One can certainly understand it as each new contender for the role of London property saviour seems to turn out to be just another windbag full of ineffective policies and empty promises to get elected. Then another few years passes with nothing done.

Well people have short memories - what exactly did Labour do from 1997 2010 bar turn housing into something affordable for ordinary people into an unachievable dream and promote a ten fold rise in buy to let.

Do you think any politician with a house worth 1 million plus in London is going to sort out the housing mess. The UKIP - less people - or the Green - more council housing - Mayoral candidates at least had some ideas for reform but they both rent.

By 2020 with another 600,000 people in London the problem will only be worse - we simply cannot build homes fast enough for all the new arrivals and new borns. Roll on 2040 when Londpn is expected to have a population of 14 million - what a hell hole it will be by then outside the expensive enclaves

Edited May 30, 2016 by MARTINX9

[Granit]

The rumours about super prime London being screwed don't seem to have been exaggerated, no transactions > ~£12m recorded in the UK in April in today's LR price paid data release.

[Patient London FTB]

Holy sh1t! Nice find.

[TheCountOfNowhere]

The rumours about super prime London being screwed don't seem to have been exaggerated, no transactions > ~£12m recorded in the UK in April in today's LR price paid data release.

Even given the fact few transactions happen at those level;s it does looked to have dropped off a cliff.

[Granit]

And it's probably a big factor behind the decline in avg prices:

This is a mean of the prices by month for all the data from the LR updated with the latest month's release. (caveat; unreliable method, not equivalent to an index, blahblah):

7/2015 £312038

4/16: £276005

******ing hell.

[Granit]

All UK prices btw^

[Frizzers]

Woah, woah!

From £312038 to £276005?

So an 11.5% drop of £36,033 from the peak?

If so, please God let that hold and translate to the averages ... to the headlines ... to actual prices ... to tangible declines.

[TheCountOfNowhere]

Woah, woah!

From £312038 to £276005?

So an 11.5% drop of £36,033 from the peak?

If so, please God let that hold and translate to the averages ... to the headlines ... to actual prices ... to tangible declines.

Might explain why the Daily Express is going crash factor 9.

Edited May 31, 2016 by TheCountOfNowhere

[billybong]

Well people have short memories - what exactly did Labour do from 1997 2010 bar turn housing into something affordable for ordinary people into an unachievable dream and promote a ten fold rise in buy to let.

Do you think any politician with a house worth 1 million plus in London is going to sort out the housing mess. The UKIP - less people - or the Green - more council housing - Mayoral candidates at least had some ideas for reform but they both rent.

By 2020 with another 600,000 people in London the problem will only be worse - we simply cannot build homes fast enough for all the new arrivals and new borns. Roll on 2040 when Londpn is expected to have a population of 14 million - what a hell hole it will be by then outside the expensive enclaves

I realise you didn't mean to suggest that but there's no short memory here. I question how short the memories are of people in general or whether they're just being obliged to accept the crookedness on house prices/housing - so far.

There's a long list of politicians (basically just self serving windbags) and now Khan seems to be adding to the list of self serving windbags who make promises to solve the house price/housing crisis to get elected and then renege on it either by doing little or nothing or by actually implementing policies that make things far far worse. UK people fall for it every time - so far.

The big big (potential) disappointment with Khan is that because he is so "different" people might have thought he might have some new ideas and a new level of integrity. Maybe he will turn out to achieve a disappointment rating even higher than recently achieved by the LibDems. Maybe they're having to keep lining up different types as part of the method of keeping the ponzi going - it's only after being elected that we discover the con again - so far.

Totally agree with your comments regarding the future outlook the way things are currently going and perhaps not only for London.

Edited June 1, 2016 by billybong

[winkie]

Well people have short memories - what exactly did Labour do from 1997 2010 bar turn housing into something affordable for ordinary people into an unachievable dream and promote a ten fold rise in buy to let.

Do you think any politician with a house worth 1 million plus in London is going to sort out the housing mess. The UKIP - less people - or the Green - more council housing - Mayoral candidates at least had some ideas for reform but they both rent.

By 2020 with another 600,000 people in London the problem will only be worse - we simply cannot build homes fast enough for all the new arrivals and new borns. Roll on 2040 when Londpn is expected to have a population of 14 million - what a hell hole it will be by then outside the expensive enclaves

Actually you make a very good point......sheer volume of people, and if it were more affordable there would be an ever greater volume of people.....lack of space, crowded roads and transport, lack of quality of life and lack of resources......but still miles better than some places in the rest of the world, that is what attracts people.....there is money to be made, loads of people have loads of needs.

[rantnrave]

Shame that time has just been called on the Land Reg HPI reports as we knew them. me thinks they were about to get very interesting indeed...

[rollover]

Discounts of 10% on London Luxury Homes Fail to Tempt Buyers

The market for homes in prime central London is stagnating before the referendum on the U.K.’s future in Europe, according to Knight Frank LLP, with price cuts of more than 10 percent failing to attract buyers. Values in the district of Hyde Park declined 4.8 percent in the year to May, while they were 4.6 percent lower in South Kensington and down 3.5 percent in Chelsea, the London-based broker said in a report Tuesday. The number of active buyers has more than halved in the past year, according to the report.

“There has been a discernible Brexit effect on the U.K. economy as decisions are delayed, and the London property market is no exception,” Tom Bill, head of London residential research at Knight Frank, said in the report. “An indication of the Brexit effect is that demand in May has remained subdued even for properties where asking prices have fallen by 10 percent or more.”

Across the capital, values for homes in the 14 districts defined as prime central areas grew just 0.1 percent in May, the lowest increase since October 2009, the Knight Frank data show.

[TheCountOfNowhere]

Discounts of 10% on London Luxury Homes Fail to Tempt Buyers

The market for homes in prime central London is stagnating before the referendum on the U.K.’s future in Europe, according to Knight Frank LLP, with price cuts of more than 10 percent failing to attract buyers. Values in the district of Hyde Park declined 4.8 percent in the year to May, while they were 4.6 percent lower in South Kensington and down 3.5 percent in Chelsea, the London-based broker said in a report Tuesday. The number of active buyers has more than halved in the past year, according to the report.

“There has been a discernible Brexit effect on the U.K. economy as decisions are delayed, and the London property market is no exception,” Tom Bill, head of London residential research at Knight Frank, said in the report. “An indication of the Brexit effect is that demand in May has remained subdued even for properties where asking prices have fallen by 10 percent or more.”

Across the capital, values for homes in the 14 districts defined as prime central areas grew just 0.1 percent in May, the lowest increase since October 2009, the Knight Frank data show.

Nope...it's the f**king mental prices.

[stormymonday_2011]

Nope...it's the f**king mental prices.

Quite.

What will the excuse be if the vote is Remain and yet house prices still tank which in my opinion is a very likely scenario.

[suntory]

Quite.

What will the excuse be if the vote is Remain and yet house prices still tank which in my opinion is a very likely scenario.

That's what I'm thinking as well. the point being is that even if Britain remains, the Bubble will have had the shit beaten out of it by then. At some stage there will be a point of no return. I think we might have passed that stage already. Crash is coming: with or without Brexit.

[Silverfinger]

Feels like first rain drops falling onto the dried out savannah...

[thewig]

Feels like first rain drops falling onto the dried out savannah...

You sound just like my second wife. BOOM.

[bobbo]

Fair few financial and BTL types will poop themselves in London if it`s Brexit I think.

Not just the financial types. Brexit could decimate a lot of people's hopes. Me I'll probably give it year and if it doesn't work out, head off to fairer pastures.

[spyguy]

Brexit will result in about 3m rentals coming available.

Remain - will result in speeding up of benefit reform, freeing up 2mrentals.