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wish_i_had_bought

The Proprety Game In London Has Completely Changed

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In Lewisham there are massive tower block developments being built at an increasing rate, The same around East, North Greenwich and the peninsula, and most likely across the capital. I have no doubt that this is in anticipation for the Bakerloo line that has been proposed (done deal as the infrastructure development has already begun?)

At least one of the block is 100% PRS. One 20 storey appx block on Lewisham station has sold the first wave entirely to Fizzy PRS (http://blog.fizzyliving.com/category/lewisham/).

This will increase demand for private ownership as only a small percentage will go to market and in some cases none at all, so demand will be huge and people will be desperate to own Developers can guarantee selling flats before they have been built, PRS companies have the capital and connections (Gov, Councils, etc) to buy up the flats before they go to market. The stats will show that the capital is building homes, but the reality will be far from it,

I may be preaching to the choir but the game has changed, and I don't think it will ever go back what we once knew. In very little time new generations will not even question having to rent, or realise you used to be able to buy property without some sort of scheme/part ownership.

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wish_i_had_bought

"The stats will show that the capital is building homes, but the reality will be far from it."

Below are the stats I've been scraping from ONS on the value of private housing construction in London and GB as a whole. All the indexes, including prices, are relative, indexed to the Q1 1980 level = 100, and shown in real terms after adjusting for CPI deflation.

I know that your statement suggests that you don't trust stats, but I do, at least ones where I know and trust the source. To me, this supports the picture I see when I look at central London from the 14th floor of an office building, there are cranes everywhere.

g43zXxv.png?1

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While we're on London housing, a story from the Grauniad this afternoon:

"London hits record low for new affordable housing, figures show"

http://www.theguardian.com/society/2016/mar/15/london-record-low-new-affordable-housing-figures-show

The Grauniad is going after the whole housing situation like a newspaper scenting a story people will get behind. Not just London either - look at its headline from yesterday "Young families priced out of rental markets in two-thirds of the UK"

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wish_i_had_bought

"The stats will show that the capital is building homes, but the reality will be far from it."

Below are the stats I've been scraping from ONS on the value of private housing construction in London and GB as a whole. All the indexes, including prices, are relative, indexed to the Q1 1980 level = 100, and shown in real terms after adjusting for CPI deflation.

I know that your statement suggests that you don't trust stats, but I do, at least ones where I know and trust the source. To me, this supports the picture I see when I look at central London from the 14th floor of an office building, there are cranes everywhere.

g43zXxv.png?1

Hey Latterdaysinner, thanks for the stats and I totally agree with you - there isn't a space in London that isn't having a flats built on it!. Sorry, what I meant in my original post is they are building thousands of flats but not build actual 'homes'.

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Hey Latterdaysinner, thanks for the stats and I totally agree with you - there isn't a space in London that isn't having a flats built on it!. Sorry, what I meant in my original post is they are building thousands of flats but not build actual 'homes'.

Saying that some of these blocks are taking for ever, there is one in Bromley which is going to be 3 years late at the earliest.

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My understanding is that these flats, and there are LOADS of them being built, seemingly everywhere, is that they are snapped up by foreign investors and then mothballed. At some point this must become unrealistic as an investment. For example if already bought and the £ tanks, if bought in the wrong place (north east and Yorks from own experience has not moved price wise), when there is no one willing to take it off your hands (seems these investors want new, not second hand), when it starts to need maintenance (and these tower blocks won't be cheap), then the tide will go out.

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In Lewisham there are massive tower block developments being built at an increasing rate, The same around East, North Greenwich and the peninsula, and most likely across the capital. I have no doubt that this is in anticipation for the Bakerloo line that has been proposed (done deal as the infrastructure development has already begun?)

It is just as bad in Kingston where a property developer has actually managed to become council leader and has now approved high rise blocks all over the town centre up to 21 storeys! This is right on the edge of the London suburbs with very poor transport links, but the development is taking place on the promise of Crossrail 2 which is 15-20 years away and doesn't provide any new capacity south of Wimbledon anyway! They really do get away with anything these days.

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I may be preaching to the choir but the game has changed, and I don't think it will ever go back what we once knew. In very little time new generations will not even question having to rent, or realise you used to be able to buy property without some sort of scheme/part ownership.

This is my main fear as well. When you talk to a lot of the younger people out here, most seem to think about a small flat in zone 6 in the same unattainable way people would have thought about buying a bigger flat in Chelsea 20 years ago, i.e. it's just not something that most normal people do.

Stands to reason, I suppose, given that the price to income ratio to buy around here is so much higher than it was in central London 20 years ago! It is such a shame, but I am not sure that the 18-25 age group actually feel quite a hard done by as the 35-45s who can actually remember prices being somewhat reasonable in their lifetime.

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On 17/03/2016 at 12:19, wish_i_had_bought said:

Hey Latterdaysinner, thanks for the stats and I totally agree with you - there isn't a space in London that isn't having a flats built on it!. Sorry, what I meant in my original post is they are building thousands of flats but not build actual 'homes'.

Yep and the builders, plumbers, electricians etc are raking it in 

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