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Finally - The London Crash Has Started!

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It's obviously been gathering pace since end of April but even agents, media, bank lenders, government and Bank of England are talking about it.

I live in leytonstone and whereas previously there were hardly properties for sale for under 400k within a one mile proximity of walthamstow, there are now loads. Overall much more supply.

Similarly more 3 bed houses for under 400k in frien Barnet.

Seeing a house near gants hill today. Dropped in price by 35k... To under 370

5 min walk to central line tube

Key is not to buy yet and let the falls gather momentum.

Any other london based examples?

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leytonstone is one of the areas i've been monitoring

may 20th - 79 two bedders listed on RM in E11

june 14th - 110

stratford is going the same way

let us know how the viewing goes

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I could be missing something but asking prices in E11 (Leytonstone and Wanstead) are still way up on what they were a year or two ago - by at least 25%+ and more.

Even with these drops they are still way above what people paid historically around that part of the world.

All that we are perhaps seeing is that people are baulking at paying 30% more than the property was worth a year ago - but could probably live with 15%.

Cos even at the prices the OP and others are quoting - its still expensive for what you get. My parents live in the Redbridge area - their neighbours put a property on the market for 33% more than an identical house sold for in January 2013 - it went under offer within a week and is now back on the market at £20k less and has been sitting there for 2 months now. Its a nice house - so it must be the price.

Lets see how it develops - as the spring excitement dies down and we move into summer. Cos E11 is still barmy!

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true, prices are still way above what they were two years ago

walthamstow is a good example

asking prices have been falling for the last month or so but they're still coming on for silly money

i'm confident that the end of ffl and mmr will bring a correction

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Time to get your savings out of the banks and building societies, where London leads the rest of the country will follow and a decent drop in house prices will push many lenders into insolvency.

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I could be missing something but asking prices in E11 (Leytonstone and Wanstead) are still way up on what they were a year or two ago - by at least 25%+ and more.

Even with these drops they are still way above what people paid historically around that part of the world.

All that we are perhaps seeing is that people are baulking at paying 30% more than the property was worth a year ago - but could probably live with 15%.

In my opinion some of these areas are being gentrified so were behind the rest of the market. Therefore I consider the last 12months silly gains to be the froth.

Jury's still out on a big crash IMO, but I can't see how the last 12 months in Greater London can be anything other than QE/central london ripple effect foreign buying/cheap credit/fear driven.

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I lived in London from 1987 up until this year.

The idea that a house in Walthamstow is going for more than a house in Friern Barnet is utterly bonkers.

Yes - personally I have never seen the attraction of Awesomestow - as the estate agents now call it.

If you want excellent transport links, a market, an Asda and a Wilkos why not try Barking where you get the same 'benefits' for less than half the price.

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Time to get your savings out of the banks and building societies, where London leads the rest of the country will follow and a decent drop in house prices will push many lenders into insolvency.

I've already run down my savings in nationwide in protest at their BTL empire building. Shall I stick some back in and then take it out again for effect? :P

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Yes - personally I have never seen the attraction of Awesomestow - as the estate agents now call it.

If you want excellent transport links, a market, an Asda and a Wilkos why not try Barking where you get the same 'benefits' for less than half the price.

"awesomestow" licks barking for transport

and its zone 3

manor park would be better

cheap, london overground, night bus route and soon to be crossrailed

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point being that prices won't keep going up. Once people say they are not paying silly prices then oversupply will force down prices a bit..

There won't be a crash but a c15% dip :-)

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point being that prices won't keep going up. Once people say they are not paying silly prices then oversupply will force down prices a bit..

There won't be a crash but a c15% dip :-)

Agree.

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3 bed semi down my road in Southgate on for 700k . Not getting much interest it seems. They have had an open day and it's been well advertised. Usually these houses sell very quickly but the price is the problem . The asking price is at least 50k more than the record for this type of property. The limit has been reached , where is a normal Joe going to get 700k ? Lots of 20 - 40 year olds living with their parents still around me. Most older people (grand parents) seem to child sit on a regular basis judging by drop offs and garden noise.........

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Slowdown yes, is this the start of a crash? Too early to say. In the equivalent parts of South London places have been coming on the market with massive jumps in price so that places are literally coming on now for half as much again as a year ago but they are sticking since MMR and Property Bee is showing some small reductions, finally the money has seemingly run out for 5% a month rises. People will pay up to what they can borrow it would seem, with little thought for the future so it's going to be down to how tight borrowing becomes.

Below are examples of sold places in a street in SW17 where tiny 2 bed terraces with doors that open straight into the living room that used to sell for around £250-300k until last year (up to low 300s in 2007) have been selling suddenly this year for 400 - 450k. Absolute madness.

http://www.rightmove.co.uk/house-prices/detailMatching.html?prop=46474997&sale=51129116&country=england

http://www.rightmove.co.uk/house-prices/detailMatching.html?prop=28876542&sale=51129113&country=england

http://www.rightmove.co.uk/house-prices/detailMatching.html?prop=41696593&sale=1019671&country=england

http://www.rightmove.co.uk/house-prices/detailMatching.html?prop=18459294&sale=50917325&country=england

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Slowdown yes, is this the start of a crash? Too early to say. In the equivalent parts of South London places have been coming on the market with massive jumps in price so that places are literally coming on now for half as much again as a year ago but they are sticking since MMR and Property Bee is showing some small reductions, finally the money has seemingly run out for 5% a month rises. People will pay up to what they can borrow it would seem, with little thought for the future so it's going to be down to how tight borrowing becomes.

Below are examples of sold places in a street in SW17 where tiny 2 bed terraces with doors that open straight into the living room that used to sell for around £250-300k until last year (up to low 300s in 2007) have been selling suddenly this year for 400 - 450k. Absolute madness.

http://www.rightmove.co.uk/house-prices/detailMatching.html?prop=46474997&sale=51129116&country=england

http://www.rightmove.co.uk/house-prices/detailMatching.html?prop=28876542&sale=51129113&country=england

http://www.rightmove.co.uk/house-prices/detailMatching.html?prop=41696593&sale=1019671&country=england

http://www.rightmove.co.uk/house-prices/detailMatching.html?prop=18459294&sale=50917325&country=england

I know those - looked at one with a daughter - they are minute, some only about 45 sq m.

Same area, 2 bed maisonettes that would have sold for £250k-280k are now coming on the market for anything up to £525k - I have recently seen one at that price U/O. Only last Sept. I was shocked to see one at £410K - speed of rise is astounding. Feels like summer 2007 all over again.

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I've been looking to buy a 2 bed in Brixton. 58/170 for 2+ beds between £400k and £600k are marked as reduced - however, hardly any that were first put on sale in the last 3 weeks, and a third of the 58 are from Foxtons (17) who tend to overprice and then cut.

Most seem to be coming on for similar/slightly above the expected trend alas.

http://www.zoopla.co.uk/for-sale/property/london/brixton/?beds_min=2&include_retirement_homes=true&include_shared_ownership=true&new_homes=include&price_max=600000&price_min=400000&q=Brixton%2C%20London&results_sort=newest_listings&search_source=facets

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Not sure about a crash by any means, but certainly a major slowdown in my area around Crystal Palace / Penge / South Norwood. Stock up something like 50% in the last couple of Months, and anything put on at "test the market" levels is just sitting there. But anything priced a little of the "new peak" is still selling very quickly. It certainly appears that a price ceiling has been reached for now, although where that leaves us a little further down the line is anyone's guess.

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