worzel Posted January 20, 2014 Share Posted January 20, 2014 (edited) London loves business spam my inbox most days,and usually get deleted, but an article on a housepricecrash caught my eye. Have a read at the link. Nice to see more and more people entertaining the possibility of a crash 5 reasons why London property bubble will burst Edited January 20, 2014 by worzel Quote Link to comment Share on other sites More sharing options...
TheCountOfNowhere Posted January 20, 2014 Share Posted January 20, 2014 London loves business spam my inbox most days,and usually get deleted, but an article on a housepricecrash caught my eye. Have a read at the link. Nice to see more and more people entertaining the possibility of a crash 5 reasons why London property bubble may burst MAY..........WILL Quote Link to comment Share on other sites More sharing options...
worzel Posted January 20, 2014 Author Share Posted January 20, 2014 MAY..........WILL I stand corrected, I will edit OP accordingly Quote Link to comment Share on other sites More sharing options...
Wurzel Of Highbridge Posted January 20, 2014 Share Posted January 20, 2014 If prices never correct relative to earnings then it is not a bubble, it's a permanent move higher - a new paradigm. I have never known on an relatively cheap to construct relatively infinite resource becoming permanently expensive, with the small exception of cigarettes. Another thing is we have now had a decade of high prices, in a decade time there will nto be many people left who have gained from high prices and millions screaming for affordable housing. Quote Link to comment Share on other sites More sharing options...
jonpo Posted January 20, 2014 Share Posted January 20, 2014 1390243882[/url]' post='1102452442']I have never known on an relatively cheap to construct relatively infinite resource becoming permanently expensive, with the small exception of cigarettes. Dude if you have a infinite supply of available building land inside of zone 3 then by all means throw up some cheap houses... Quote Link to comment Share on other sites More sharing options...
Wurzel Of Highbridge Posted January 20, 2014 Share Posted January 20, 2014 Dude if you have a infinite supply of available building land inside of zone 3 then by all means throw up some cheap houses... I am not talking about inside of Zone 3 particularly, however if the authorities granted permission outside London for homes to be built and those homes were serviced by a good transport system then you would never be in a situation clambering to enter zone 3. the destruction of the UK's public transport system is really all about supporting London's overpriced deteriorating housing stock. Quote Link to comment Share on other sites More sharing options...
TheCountOfNowhere Posted January 20, 2014 Share Posted January 20, 2014 If prices never correct relative to earnings then it is not a bubble, it's a permanent move higher - a new paradigm. Edinburgh had one of those new paradigm do-das till about twelve moths ago. Quote Link to comment Share on other sites More sharing options...
The Knimbies who say No Posted January 20, 2014 Share Posted January 20, 2014 Are the reasons: 1. It's a bubble. 2. "" 3. "" 4. "" 5. "" Quote Link to comment Share on other sites More sharing options...
MARTINX9 Posted January 21, 2014 Share Posted January 21, 2014 Hidden away in rightmove's figures was an 8.3% fall in asking prices in Westminster and a 7% fall in Kensington and Chelsea. Will this crash ripple out - or be reversed in February when people return from their lengthy winter breaks. http://www.standard.co.uk/business/business-news/london-house-prices-tower-hamlets-beats-kensington-as-it-sets-property-prices-pace-9071273.html Quote Link to comment Share on other sites More sharing options...
slacker Posted January 21, 2014 Share Posted January 21, 2014 There is no new London paradigm - all the numbers I've seen (most heat is 900K+ band, most transactions are cash, high levels of overseas investment etc.) indicate London property is being used as an international financial instrument. However you look at it - the ceiling must be close now - when 40 year old professional couples (surgeons, lawyers etc.) have to live like students to afford an ex-LA flat miles from work - how much future growth in prices can their be. Let's hope it corrects before we get an exodus out of Britain - I realised the other day that half the people I know have emigrated to US (and a few to Asia). With the standard of living and size of house they now have for the same job - none want to come back. Quote Link to comment Share on other sites More sharing options...
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