From £800K To £950K Since Sunday

[TheCountOfNowhere]

Yeah! what crash? Houses on this road were exchanging for under £300,000 in 2004. Things must be reaching the point where generational mortgages come to the market. Anyway you better get in quick, just calculate how much it could cost next Sunday at current price velocity.

Better still..take your savings/future income somewhere else where they dont treat you like a slave.

Not owning a house is freedom.

In the current banker controlled Britain, a house could crippled you for life.

[renting til I die]

I just street viewed onto the main road - what a dump!

I was working at the nearby train station on Sunday. Its not a place I would want to live!

I'm almost shocked at the price but my mate who owns a house just around the corner from where I live, Told me his house (a little 2 bed place with the smallest garden I have ever seen!) that he bought in 2006 for £200k, has now been valued at £400k by a local EA.

He was shocked, but more in an unbelieving happy way

[renting til I die]

My car was up for sale last week for 5K, today it's yours for 20K. Do you want to buy it ? No. thought not.

If I think about it for a week, will the price go up to £30!?

Edited April 29, 2014 by renting til I die

[Splurge]

I just street viewed onto the main road - what a dump!

Yikes parking looks a nightmare. But if you are shelling out that much you'd probably only be able to afford a push-bike afterwards.

[Splurge]

I saw this one for Stoke Newington on Rightmove too. Although I concede that it is a beautifully presented and desirable property (price apart) it appears to be more than double the price of anything else that has ever sold on the road. One wonders what it was bought for and much profit will be made if it achieves the asking price 1.7million on Allerton Road Stoke Newington? You can sort of see why 950k for the other house might be logical on that basis. Way, way, way above what I and 98% of people can afford (average weekly wage in Hackney under £700 per week) and incomprehensible pricing for an ordinary working class home or a somewhat larger middle class house.

[Neverwhere]

Wrong, its Hipster Central

This is your problem here I think: it's too close to the silicon triangle/ silicon roundabout/ tech city/ whatever it is that they're calling the explosion of tech companies around Old Street nowadays. There's a lot of loose money being pumped into this sector (to the detriment of the original, independently viable, tech companies that gave the area its reputation and are slowly being driven out) and a large amount of it is finding its way into local property prices as tech company employees look for easily commutable housing, often with inflated (relative to local norms) wages and little local knowledge, initiating a feedback loop whereby higher prices increase sentiment which in turn pushes up prices, etc, etc. Pure cantillion effect. If you want to buy in that area I'd wait for the current tech bubble to pop.

[Splurge]

I don't see how Old Street has anything to do with prices in Stoke Newington. It's miles away. Maybe an influx of Hasidic " hot money" into Stamford Hill fuelled by a fear that Israel might contemplate handing back some settlements on the West Bank? Actually I don't have clue who has this kind of money. But I do know for sure that even Techies/ or most City workers, DINKYS or not, are unlikely to have an income that would allow them a mortgage of £1.7 million so I DOUBT PURCHASES AT THIS LEVEL ARE BEING FUNDED FROM GAINFUL EMPLOYMENT.

As is being said on other threads, you can't really correlate what people do with what they can afford to buy. It is now more sourced from previous HPI or inherited family wealth. The wealth train has left the station. All future trains are cancelled. Unless this one derails.

[Neverwhere]

I don't see how Old Street has anything to do with prices in Stoke Newington. It's miles away. Maybe an influx of Hasidic " hot money" into Stamford Hill fuelled by a fear that Israel might contemplate handing back some settlements on the West Bank? Actually I don't have clue who has this kind of money. But I do know for sure that even Techies/ or most City workers, DINKYS or not, are unlikely to have an income that would allow them a mortgage of £1.7 million so I DOUBT PURCHASES AT THIS LEVEL ARE BEING FUNDED FROM GAINFUL EMPLOYMENT.

As is being said on other threads, you can't really correlate what people do with what they can afford to buy. It is now more sourced from previous HPI or inherited family wealth. The wealth train has left the station. All future trains are cancelled. Unless this one derails.

It's pretty close in terms of transport, there's at least one direct bus that takes 20-30 mins, a direct line to Liverpool Street and a quick hop over to Finsbury Park puts you on a direct line to Old Street itself (which is in any case just the epicentre, things have spread out a lot from there). In London terms, given failing internal infrastructure, those are fairly good commutes, and I would be surprised if these areas weren't attracting hipsters out of Shoreditch when they get to the age where they want to start families and raise kids.

And while the OP's £950k property could well be purchased by the more senior and well renumerated tech industry types (or by those who have just sold their old start-up before moving on to their new start-up) the more important point is that the influx of money into East London has initiated a feedback loop: pushing up the prices at the lower end of the spectrum has a knock on effect on the upper end (if flats are going for what houses were going for last year sellers are going to expect more for said houses now, and buyers find it normal to pay more for houses than flats so will accept these raised expectations) and generally drives sentiment which in turn pushes prices up higher and also attracts further speculative money into the area given the high YOY increases which then push prices higher still. So, as you say, you end up with prices that are not being funded by gainful employment, but the initiating reason for why this is occurring in commutable distance to Old Street is still to do with the influx of money via tech city which started local prices rising faster than much of the rest of London and therefore made the area look like a good place to invest in property.

Once the tech bubble pops and we get a reasonable number of previously gainfully employed people bringing their properties to market at a time of lowering demand (given their ex-colleagues would be equally out of the market) then this will start to lower prices and the speculators will get twitchy and start bringing their own properties to market in order to try and realise as much of their gains as possible. That's if they don't have to deleverage due to economic troubles back home first of course.

[Confusion of VIs]

I was looking at this house and on Sunday the 27th April 2014 it was £800,000 and today it is now £950,000

http://www.rightmove.co.uk/property-for-sale/property-45634697.html

How can prices go up by such an amount.

It's got an invaluable cellar

Edited April 30, 2014 by Confusion of VIs

[Splurge]

It's pretty close in terms of transport, there's at least one direct bus that takes 20-30 mins, a direct line to Liverpool Street and a quick hop over to Finsbury Park puts you on a direct line to Old Street itself (which is in any case just the epicentre, things have spread out a lot from there). In London terms, given failing internal infrastructure, those are fairly good commutes, and I would be surprised if these areas weren't attracting hipsters out of Shoreditch when they get to the age where they want to start families and raise kids.

And while the OP's £950k property could well be purchased by the more senior and well renumerated tech industry types (or by those who have just sold their old start-up before moving on to their new start-up) the more important point is that the influx of money into East London has initiated a feedback loop: pushing up the prices at the lower end of the spectrum has a knock on effect on the upper end (if flats are going for what houses were going for last year sellers are going to expect more for said houses now, and buyers find it normal to pay more for houses than flats so will accept these raised expectations) and generally drives sentiment which in turn pushes prices up higher and also attracts further speculative money into the area given the high YOY increases which then push prices higher still. So, as you say, you end up with prices that are not being funded by gainful employment, but the initiating reason for why this is occurring in commutable distance to Old Street is still to do with the influx of money via tech city which started local prices rising faster than much of the rest of London and therefore made the area look like a good place to invest in property.

Once the tech bubble pops and we get a reasonable number of previously gainfully employed people bringing their properties to market at a time of lowering demand (given their ex-colleagues would be equally out of the market) then this will start to lower prices and the speculators will get twitchy and start bringing their own properties to market in order to try and realise as much of their gains as possible. That's if they don't have to deleverage due to economic troubles back home first of course.

I am not sure I agree with you. I think it is probably buyers forced out of Highbury and the nicer side of Stoke Newington around Clissold Park where it has become even more eye-wateringly expensive. The area north of Stoke Newington station unless it has changed beyond recognition is quite grotty it is after all pretty much South Tottenham. Historically most of Stoke Newington was ough. But it is probably changed now that Reggie Kray isn't any longer stalking the manor. Maybe all the low hanging fruit has gone and people are now scavenging for the (s)crap that's left. But this is a working class terrace house priced it seems only to be afforded by a senior executives in the IT industry. What kind of houses are the ordinary folk going to live? Tents?

[Neverwhere]

I am not sure I agree with you. I think it is probably buyers forced out of Highbury and the nicer side of Stoke Newington around Clissold Park where it has become even more eye-wateringly expensive. The area north of Stoke Newington station unless it has changed beyond recognition is quite grotty it is after all pretty much South Tottenham. Historically most of Stoke Newington was ough. But it is probably changed now that Reggie Kray isn't any longer stalking the manor. Maybe all the low hanging fruit has gone and people are now scavenging for the (s)crap that's left. But this is a working class terrace house priced it seems only to be afforded by a senior executives in the IT industry. What kind of houses are the ordinary folk going to live? Tents?

Totally agree, which is why it's utterly unsustainable. The question isn't if it will crash, it's just when.

[Splurge]

It is remarkable the growth in prices in areas like this that were once quite run-down. The bench-mark in Highbury/Stoke Newington seems to have shattered the £1 million mark pretty comprehensively. I find it fascinating that these areas are seeing such a sharp ramping, whereas outlying areas that once seen as more desirable are seeing lot shallower price inflation. Once upon a time everyone was moving out of these areas to greener suburbs. The desirability seems to have switched poles. Since the millennium prices in these once aspirational areas have doubled approximately, but in the gritty ( there's still a heck of lot of social housing around these parts) prices have gone up six-fold. I would never of thought it and I can't explain it!

[terryturbojr]

Proper Stoke Newington seemed very expensive three years ago when terraces were 600k-800k.

Now people are trying their luck with Stamford Hill houses like this at this price and the occasional Walthamstow house is hitting 600k. Plain stupid.

As with all of the very expensive bits of London, Stoke Newington is now full of finance workers as it is pretty convenient for the City and, with new Dalston station, Canary Wharf too. And they're the only ones that can pay that kinda money (even most of the would struggle too, unless a husband and wife both 100k earners).

Edited May 1, 2014 by terryturbojr

[macbeth79]

It is remarkable the growth in prices in areas like this that were once quite run-down. The bench-mark in Highbury/Stoke Newington seems to have shattered the £1 million mark pretty comprehensively. I find it fascinating that these areas are seeing such a sharp ramping, whereas outlying areas that once seen as more desirable are seeing lot shallower price inflation. Once upon a time everyone was moving out of these areas to greener suburbs. The desirability seems to have switched poles. Since the millennium prices in these once aspirational areas have doubled approximately, but in the gritty ( there's still a heck of lot of social housing around these parts) prices have gone up six-fold. I would never of thought it and I can't explain it!

Over the past four decades i have noticed the flight to essex and other green areas, i know of somebody who sold in Brick lane to get away from the "vibrancy" and purchased in Dunstable, the dunstable house is worth £170,000 the house she sold is worth about £1.9M

[Splurge]

Over the past four decades i have noticed the flight to essex and other green areas, i know of somebody who sold in Brick lane to get away from the "vibrancy" and purchased in Dunstable, the dunstable house is worth £170,000 the house she sold is worth about £1.9M

She's quids in then. But it doesn't really explain to me why these areas which had a lot of social problems: high crime rates, poor schools are attracting the money flowing in. And what's more it is a similar situation in lots of American cities too. Personally although having lived in Stoke Newington, when young and carefree, I prefer bringing up a family further out in leafy suburbia.

[macbeth79]

She's quids in then. But it doesn't really explain to me why these areas which had a lot of social problems: high crime rates, poor schools are attracting the money flowing in. And what's more it is a similar situation in lots of American cities too. Personally although having lived in Stoke Newington, when young and carefree, I prefer bringing up a family further out in leafy suburbia.

Evan Davis had a Tv programme recently called "mind the gap" and this sort of explains it.

[terryturbojr]

She's quids in then. But it doesn't really explain to me why these areas which had a lot of social problems: high crime rates, poor schools are attracting the money flowing in. And what's more it is a similar situation in lots of American cities too. Personally although having lived in Stoke Newington, when young and carefree, I prefer bringing up a family further out in leafy suburbia.

It's central London. A lot of these prices driven by foreign workers. Not foreign super rich speculators, just those foreigners working in finance, law, high up in media etc. Most of these have no desire to live in England. They come to work and love in central London and wouldn't consider zone three, let alone leafy suburbia.

I'm born and raised Bucks and suburbia scares me, let alone scares foreigners. I would happily settle in Stokey but just can't afford it, was very sad to leave.