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The Young and the Nestless

£300k London homes almost extinct - ES

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http://www.standard.co.uk/news/london/death-of-the-300000-london-home-is-in-sight-experts-warn-a3441581.html

Significant? 

Quote

Seb Klier, campaign manager at the Generation Rent group, said: 
“The £300,000 mark is about the maximum a couple who are both earning average salaries, and have managed to save a substantial deposit, could afford in London. With unstable, expensive renting the only option for most, the Government must give the Mayor powers to regulate the market properly.”
 

EDIT: Presumably part of this extinction is caused by the 'spread' of desperate homebuyers from completely unaffordable to less desirable (but slightly less unaffordable) areas. 

Edited by The Young and the Nestless

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3 minutes ago, TheCountOfNowhere said:

Come back next year !!!

 

Who exactly did Help To Buy Help ?

Yes I can see this ending soon either way: Either the residual affordability (in undesirable outskirts of Greater London etc) is completely used-up/inflated out of normality, or the confidence/rentability disappears with Article 50. Government schemes will struggle to contend with either beyond a certain point.

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Went to view a 300k house this weekend, it was nigh on perfect for us and thought I'd call a broker today to see if the numbers stacked up for us to even offer. Wouldn't have expected to have got the house based on according to the agent 30+ views in 48 hours. Back in summer we had an AIP for enough and now have more deposit since then, however despite being in a "better position" the max we can borrow is now 15k less meaning no offer on this or probably any house until we save the missing 15k - takes us to this summer and a year staying with family. 

Have to admit I had the raging hump all weekend for falling for a house that was such an extortionate price for what it is/was a couple of years back - so once the other half gets over it we hopefully will have had a lucky escape. Today more crap houses in crap areas have come on at 100k more than 3 years back... Have ignored all phone calls from agents and am counting down the days till payday to top up the poxy HTB isas. 

 

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20 hours ago, TheCountOfNowhere said:

Come back next year !!!

 

Who exactly did Help To Buy Help ?

This will never be considered by anyone involved with the scheme. It will never be a newspaper or other media article from the mainstream. It will be forgotten like the BOE 'seeing through' inflation over and over again till we are all so poor we cant afford to sh*t.

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I think the bigger story is if you go outside London  Hemel / Watford / Stevenage / Hitchin /Luton /St Albans 300k is not getting you alot either ..the question really is just how much further is price craziness going to extend 

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4 hours ago, Nabby81 said:

I think the bigger story is if you go outside London  Hemel / Watford / Stevenage / Hitchin /Luton /St Albans 300k is not getting you alot either ..the question really is just how much further is price craziness going to extend 

That's before you factor in a train season ticket and contend with everyone else just to get a seat at peak times.

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Doesn't seem that long ago that the press were doing articles about £100,000 properties disappearing in London. That's now shot up to £300,000 in a couple of years.

As I just posted elsewhere, 1-bed flats in concrete tower blocks in Thamesmead (cash only, cos you won't get a mortgage) are now up to £200,000. 

Crazy.

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9 hours ago, satch said:

but but but  they are affordable ..... 2% mortgage and a £300,000 mortgage is only £6k per year (and you will need 35 year mortgage to try and pay off the capital but this will just 'inflate away') and the rent may well be £12k per year for the same flat. MSM will argue about supply and demand, need to build etc but the main problem is cheap credit and re-cycled BOMAD HPI gains ..... oh and after two years the 2% mortgage will be more like 4.5% or £13.5k which in some areas would be the same as the rent. The system is broken but governments of all colours just look the other way.

£300,000 is the new £30,000........^ the lenders need to pump more money into the economy to create the inflation that kills old debt and generates new debt to spend, when earning 10% interest becomes 1% have to lend ten times as much plus higher fees.....The biggest future obsacle is 25 to 30+ years of regular monthly mortgage commitments require 25 to 30+ years regular secure employment....;)

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At the time I sold a house in Derbyshire just post 7/7/2005, London really wasn't that high compared to the provinces. I did think at the time, that it seemed surprising I could actually buy a two bed flat in Kensington for 300k, what i had just sold the house for.

Well I didn't, having no connection to London, just speculation that I could let out one room there and retire. Prices up here are more or less the same twelve years on; the Kensington flat, well that's a different story.

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2 minutes ago, AvoidDebt said:

London prices are getting more insane. The Jan 2017 listings are a good 20% above the most batshit mental 2016 price. The London cycle is now addicted to rises, every new listing has to set a new street record and smash previous heights. 

This is what 50k shy of one million pounds gets you in Jan 2017. 

http://www.rightmove.co.uk/s6p/64055645

 

 

950k and they can't afford to replace the knackered larch lap fence.

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21 minutes ago, satch said:

Interesting to look at the example repayment ..... £4,500 per month (95k deposit, 4% for 25 years), so close on a £80,000 salary just to pay the mortgage then you need to earn some money to live ......

Very much outer London too, Edgware, at least ten miles out. And for all the bling the owner has put inside, it is a bit disreputable looking from the outside. A grubby car standing area in front and a mud patch for a lawn and unkept shrubby boundaries at the back. Curb appeal zero.

Edited by crashmonitor

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16 minutes ago, satch said:

Interesting to look at the example repayment ..... £4,500 per month (95k deposit, 4% for 25 years), so close on a £80,000 salary just to pay the mortgage then you need to earn some money to live ......

There are no words to describe how crazy this is all getting.

How can anyone see any value in that at £550k....never mind £950k!

We have to question the role of the EA's here in all this ramping, I'm fairly sure they're the ones driving this latest round of kite flying I'm seeing in my area. With volumes at all time lows, its in their interests to get as much as possible for every house to maximise their commission.

Are these the final desperate acts of an industry who know the game is up? Or is that wishful thinking?

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35 minutes ago, satch said:

Interesting to look at the example repayment ..... £4,500 per month (95k deposit, 4% for 25 years), so close on a £80,000 salary just to pay the mortgage then you need to earn some money to live ......

Can see many people able nor willing to do that.  Maybe a vouple would bite the bullet but the numbers just dont add it.

 

it's rich mans prices for poor mans clobber

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16 hours ago, Tempus said:

Doesn't seem that long ago that the press were doing articles about £100,000 properties disappearing in London. That's now shot up to £300,000 in a couple of years.

As I just posted elsewhere, 1-bed flats in concrete tower blocks in Thamesmead (cash only, cos you won't get a mortgage) are now up to £200,000. 

Crazy.

This piece in the Evening Standard about the disappearance £100,000 properties is dated 10th May, 2013! :wacko:

 

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11 minutes ago, zugzwang said:

This piece in the Evening Standard about the disappearance £100,000 properties is dated 10th May, 2013! :wacko:

 

I remember a forecaster in the late 1980s saying that average homes in the UK would hit 100k by the year 2000. Ever a bear, I thought bloody no chance. The idea seemed ludicrous. They did..............

 

http://www.dailymail.co.uk/money/news/article-1566858/Average-house-tops-163100000.html

I also remember articles when London property hit the tonne for the first time, probably late eighties or nineties. That may predate the internet as i can't find a link. at the time that too seemed ridiculous. Amazing how the boiling frog syndrome leads to acceptance of the impossible.

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And when there's not much for sale and there's still enough buyers, when a property sells at an insane price, then the next similar property comes onto the market at insane price + £30 or £40 or £50,000 or more. Whatever the agents think the market will stomach. No matter how s***e.

So the average local salary, which x3 of x4 might have bought the property in the past, is now merely what a property can jump overnight.

I see no end until the investor class start losing money. They still have pound signs in their eyes, still think you can't lose on property and recent history is only proving them right.

Edited by Tempus

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