Jump to content
House Price Crash Forum
rollover

Zoopla's Warning Over Property Crash

Recommended Posts

Website claims house prices could drop by 20% if Britain votes to leave the EU

In the latest warning of the economic risks of Brexit, Zoopla said nearly all of the gains made by the housing market over the past five years would be wiped out if the country votes to Leave. The company, which allows owners to monitor the estimated value of their property, said the current average house price of just over £297,000 would plunge by over £53,000 due to the combined effect of ‘uncertainty, increased unemployment, reduced investment and higher borrowing costs’.

The website, echoing Chancellor George Osborne’s dire predictions of the impact of Brexit, said an Out vote could cut £1.5 trillion from the total value of the country’s housing stock. In London, Zoopla puts average home prices at £671,989. It said this would fall to £550,989, while across the South East there would be a drop from £396,682 to £325,282.

Even in the area with lowest house prices – Yorkshire and Humber – the average would fall from £167,023 to £137,023.

Share this post


Link to post
Share on other sites

DM readers all say its a good thing.

Most people I meet think lower house prices would be a Good Thing. I suppose statistically someone among them likely reads the DM, but I'm not aware of them. And I seem to meet more older than younger people these days.

Share this post


Link to post
Share on other sites

I'm assuming that Zoopla are implying a fall in prices will be a "bad thing"... surely a company that makes it's money through house sales can see that current record high property prices has resulted in record low stock levels and transaction volumes, ergo less business for them.

Share this post


Link to post
Share on other sites

I'm assuming that Zoopla are implying a fall in prices will be a "bad thing"...

Why?

Zoopla's concern is that there should be a market - regardless of the price. Like Rightmove, their interest isn't in house prices one way or the other, but in stories that will grab public attention. House prices are just a hook for such stories.

Rightmove's index shows the highest possible prices because the difference between that and other indexes generates a story that cn be revived every month. Zoopla seems to have more lower-prices stories (like reductions in asking prices) because that's essentially new.

The prospect of HPI/HPC is always a story.

Share this post


Link to post
Share on other sites

Exactly 20% barely covers last year's rise, where we live (Greater London) asking prices (I Know but they tend to achieve close to asking) are up 50% on selling prices of two years ago, sold 282k march 2014 now asking 425k. Totally insane, increase of £1,000 per week, every week for the past two years. Hard-working houses contributing to growth in GDP.

Cannot see how Greater London can be seen as anything but fraud on a monumental scale. I've been following the housing market since 2005 in my own amateur way. For the first time in 11 years I am actually thinking that I probably may never end up buying. This is largely down to the increases over the past two years. Difficult to describe how insane the market has been around here....

Share this post


Link to post
Share on other sites

20% so in Luton that means prices returning to last years levels , big ******ing deal

I find the house price issue is one the remain camp have shot themselves in the foot with , the majority want cheaper prices now few are benefiting from them going up and older generation are finding their children stuck at home or they having to give them larger and larger sums to get them on the " ladder"

Share this post


Link to post
Share on other sites

Surely it's an average, so some places that doubled in 5 years will halve,and hopefully some will more than halve.

There are a couple of big developments around which I'll be interested in seeing come to market. Brexit or no.

Share this post


Link to post
Share on other sites

Won't somebody think of the banks/EAs/boomers?!

A 20% drop is only half of what is needed to restore any sanity to the market.

Less than a third actually...

House "prices" need to come down 70% to resemble anything close to sanity....

Edited by eric pebble

Share this post


Link to post
Share on other sites

Website claims house prices could drop by 20% if Britain votes to leave the EU

In the latest warning of the economic risks of Brexit, Zoopla said nearly all of the gains made by the housing market over the past five years would be wiped out if the country votes to Leave. The company, which allows owners to monitor the estimated value of their property, said the current average house price of just over £297,000 would plunge by over £53,000 due to the combined effect of ‘uncertainty, increased unemployment, reduced investment and higher borrowing costs’.

The website, echoing Chancellor George Osborne’s dire predictions of the impact of Brexit, said an Out vote could cut £1.5 trillion from the total value of the country’s housing stock. In London, Zoopla puts average home prices at £671,989. It said this would fall to £550,989, while across the South East there would be a drop from £396,682 to £325,282.

Even in the area with lowest house prices – Yorkshire and Humber – the average would fall from £167,023 to £137,023.

.. ..the Government's crunch on BTL and attack (hopefully) on off-shore money launderers in the London housing market all assists levelling out house prices...this is good.....Brexit is the cream on top of the cake...self development is the only true way forward.... :rolleyes:

Edited by South Lorne

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now

  • Recently Browsing   0 members

    No registered users viewing this page.

  • Next General Election   90 members have voted

    1. 1. When do you predict the next general election will be held?


      • 2019
      • 2020
      • 2021
      • 2022

    Please sign in or register to vote in this poll. View topic


×

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.