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Britain's House Price Gap Widens As London Prices Jump 18% Annually

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http://www.theguardian.com/business/2014/apr/02/britains-housing-gap-widens-london-prices-surge-business-live

Good morning, and welcome to our rolling coverage of events across the financial markets, the economy, the eurozone and business.

We start with fresh proof that London house prices are roaring ahead, with the gap between housing in the capital and the rest of Britain hitting a record level.

Nationwide's latest report shows that London house prices have surged by 18% over the last year, double the national average of 9.2%. That's the strongest annual price rise in a decade.

With South East England also posted annual double-digit gains in the January-March quarter, it's the latest signal that the economic recovery is being felt mainly in and around the city -- deepening Britain's economic divide. In Wales, for example, prices are up just 5%.

While the typical UK property now costs £180,264, the average London house price is now £362,699

More good news London gets even more jam, those lucky Londoners. Hard to see how London won't end up imploding on itself unless of course the rich are going to end up serving themselves as no one else will be able to live there. At this rate it can't be long before all the 5h1t slum areas get cleared so that those who can't afford somewhere nice can afford to buy.

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The upper echelons of the Chinese Communist Party are running cash out of the mainland at a blistering lick now. From one bankrupt cesspit to another, you might say.

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http://www.theguardian.com/business/2014/apr/02/britains-housing-gap-widens-london-prices-surge-business-live

More good news London gets even more jam, those lucky Londoners. Hard to see how London won't end up imploding on itself unless of course the rich are going to end up serving themselves as no one else will be able to live there. At this rate it can't be long before all the 5h1t slum areas get cleared so that those who can't afford somewhere nice can afford to buy.

Why are we luckier that houses cost more?

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When I saw the nationwide headline this morning, my first reaction was to assume London prices were up 20%.....not a bad guess it turns out.

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Increases ONLY 5% in Wales ONLY 9.2% nationwide ...so this are in line with pay increases then ?Big pats on backs for getting people to borrow more and have higher debts hanging over them ...

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North / South Divide. BBC Salford presenters miffed that London HPI is 'roaring' away at 18% - double national average. I can see White City TV Centre being re-opened at this rate!

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It's interesting that sales volumes in practically all areas are still well below the boom years. If you use the rightmove trends tool you will see what I mean.

Random city postcode in Bristol:

w17887.png

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North / South Divide. BBC Salford presenters miffed that London HPI is 'roaring' away at 18% - double national average. I can see White City TV Centre being re-opened at this rate!

Don't worry about them too much. Prime Manchester is roaring away too.

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Don't worry about them too much. Prime Manchester is roaring away too.

Well they won't be able to move back. They will be stuck with Northern glumness for all eternity. Like the old saying..

"once an expat, can never afford to move back"

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It's interesting that sales volumes in practically all areas are still well below the boom years. If you use the rightmove trends tool you will see what I mean.

A false market levitated on thin regional volumes and govt subsidies just like the US.

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The upper echelons of the Chinese Communist Party are running cash out of the mainland at a blistering lick now. From one bankrupt cesspit to another, you might say.

"London real estate is now a global asset class" Boris Johnson, Davos 2014.

When an idiot like Johnson starts selling sand to Arabs (or real estate to Chinese) you know the game is nearly up.

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"London real estate is now a global asset class" Boris Johnson, Davos 2014.

When an idiot like Johnson starts selling sand to Arabs (or real estate to Chinese) you know the game is nearly up.

You have to ask what is 'underpinning' the bargains hat these chinamen and johnny foreigners are snapping up in London?

Is it the sub 3% gross rental yields?

Is is the FACT that property can only ever go up?

Is it just pure and simply money laundering?

Is it a combination of all the above?

On the money laundering aspect: What good is a property in London unless you plan to liquidate it and repatriate the funds back to your home country?

I can see people chasing the 3% gross yields because it's paying more than the bank with the change of capital appreciation. There again you are taking a massive gamble on sterling.

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On the money laundering aspect: What good is a property in London unless you plan to liquidate it and repatriate the funds back to your home country?

I don't think they have any intention of repatriating to their home country because their home country is now... the UK...

They are buying refuge and safety in the UK away from possible execution squads back in places like China where you can be shot for corruption. The UK won't kick out convicted rapists, murderers and even those accused of genocide... so, with the City being the whore of cash, it is not going to kick out corrupt Chinese or Russians who are wealthy.

The UK is like a giant oak tree that has stood for a 1,000 years - no storm from without can destroy it but it is rotting from within.

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I don't think they have any intention of repatriating to their home country because their home country is now... the UK...

They are buying refuge and safety in the UK away from possible execution squads back in places like China where you can be shot for corruption. The UK won't kick out convicted rapists, murderers and even those accused of genocide... so, with the City being the whore of cash, it is not going to kick out corrupt Chinese or Russians who are wealthy.

The UK is like a giant oak tree that has stood for a 1,000 years - no storm from without can destroy it but it is rotting from within.

So where are these millions of wealthy foreigners? I haven't bumped into any of them and their extended families. In fact I would say that there are far less foreigners here in the UK now than back in the jolly days of 2006-2008 when the country was flooded with eastern Europeans. I am sure that won't appease the Mail readers here.

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Carney said he can't stop this as it is cash driven. The boe has been increasing communication recently regarding their collapse worries. Best just drive the imbalancing some more with strengthening pound until exporters throw in the towel. I feel for the poor buggers trying to compete using mortgage finance when thus ends badly.

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Carney said he can't stop this as it is cash driven. The boe has been increasing communication recently regarding their collapse worries. Best just drive the imbalancing some more with strengthening pound until exporters throw in the towel. I feel for the poor buggers trying to compete using mortgage finance when thus ends badly.

On the radio this morning there was some news about a coal mine closing due to the strength of the pound. The guy being interviewed also said hat two other open pits had closed too.

I don't think the pound is going much higher, but then - what do I know about what BOE has planned.

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So where are these millions of wealthy foreigners? I haven't bumped into any of them and their extended families. In fact I would say that there are far less foreigners here in the UK now than back in the jolly days of 2006-2008 when the country was flooded with eastern Europeans. I am sure that won't appease the Mail readers here.

They're not real. Only a minority of London properties are being bought by foreigners and most of those through offshored investment trusts. Pure speculation plays in search of a bigger fool. It's Osborne who's responsible for the London bubble. A rolling bailout and profiteering opportunity for the banks combined with huge concrete-pouring exercises in the South East have kept London hpi in near-double digits since 2010. Last year he put the tin hat on things with FLS and HtB in an attempt to buy the GE in 2015. Simple as. Osborne is the real culprit.

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On the radio this morning there was some news about a coal mine closing due to the strength of the pound. The guy being interviewed also said hat two other open pits had closed too.

I don't think the pound is going much higher, but then - what do I know about what BOE has planned.

So long as it doesn't harm the City of London they don't give a f*ck.

Close all the mines you like. They're not real jobs like selling derivatives to Asians.

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So long as it doesn't harm the City of London they don't give a f*ck.

Close all the mines you like. They're not real jobs like selling derivatives to Asians.

Cue Smyth blaming all the closing coal mines on single mums stocking up on Council houses.

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You have to ask what is 'underpinning' the bargains hat these chinamen and johnny foreigners are snapping up in London?

Is it the sub 3% gross rental yields?

Is is the FACT that property can only ever go up?

Is it just pure and simply money laundering?

Is it a combination of all the above?

On the money laundering aspect: What good is a property in London unless you plan to liquidate it and repatriate the funds back to your home country?

I can see people chasing the 3% gross yields because it's paying more than the bank with the change of capital appreciation. There again you are taking a massive gamble on sterling.

Same reason Russians hid their wealth in Cyprus..

50% of something is better than 100% of nothing.

They don't care London property will crash - it's 'safe'. It buys them sanctuary for them and their families outside their home jurisdiction. They're buying the protection of the UK judiciary and bankstering system, the tax haven/evasion system, and the military backing of a nuclear power and UN security council member. Without all that they wouldn't even look at London.

If/when it all turns to sh1t they'll still be rich and they know Boris and his Eton friends will protect them.

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