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London property prices plunge as Brexit effect deepens


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https://www.theguardian.com/money/2018/mar/12/london-property-prices-plunge-as-brexit-effect-deepens

 

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Figures from Your Move, one of the UK’s biggest estate agency chains, reveal that the average home in Wandsworth – which includes much of Clapham, Balham and Putney – fell by more than £100,000 in value over the last 12 months.

Other London boroughs are also showing steep price falls. In Southwark, south London, the average price has dropped from £666,000 to £585,000 in 12 months, while prices have pegged back in Islington, north London, from £750,000 to £684,000.

 

 

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25 minutes ago, VancouverGuy said:

I just felt a great disturbance in the suburbs, as if thousands of voices cried out in terror, and were suddenly silenced.

Is that the Brexstar's first firing? 

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Sentiment.....surely if people are seeing, being told that prices are falling due to above reasons they will demand reductions or stall buying.....wait and see.

Borrowing large amounts at large cost and possibly rising, also to think a hard saved deposit or highly valued deposit being taken away via falls doesn't exactly encourage purchases at such high cost......always an alternative.;)

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26 minutes ago, winkie said:

Sentiment.....surely if people are seeing, being told that prices are falling due to above reasons they will demand reductions or stall buying.....wait and see.

Borrowing large amounts at large cost and possibly rising, also to think a hard saved deposit or highly valued deposit being taken away via falls doesn't exactly encourage purchases at such high cost......always an alternative.;)

People are stupid. It will be valuations coming back lower than expected that will bring prices down as banks start to tighten lending.

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My comment.

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"Blaming" this on brexit is like blaming the straw for the camel's back problems - technically correct, but rather missing the point. In any event, this particular camel should have been taken round the back and shot back in 2008, but it was kept on life support, to the detriment of everyone else, by the idiotic policies of both Brown and Osborne.

We need this urgently - high house prices are ruining people's lives and stifling the economy, and are symptomatic of the damage caused by cheap debt.

High house prices are, to a healthy economy, what cocaine is to a healthy diet - I'm sorry for owner-occupiers who are going to be in negative equity, but you'll still be in a house, and perhaps regarding a non-fungible item as an 'investment' was not a good idea. Your house will still be worth what it was always worth - a house.

Bring it on.

 

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Just now, oatbake said:

People are stupid. It will be valuations coming back lower than expected that will bring prices down as banks start to tighten lending.

Very true it is the lenders that set the price......at the end of the day they are the ones that end up owning it.;)

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5 minutes ago, TonyJ said:

If Brexit has had any small part to play in this wonderful news, it has my thanks; but we all know it is the grotesque overvaluation of property that has caused property prices to plunge.

Expect full on blame brexit for all ills from the media as we come closer to choosing between a norway deal or no deal. The only deals on offer.

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Isn’t it good for this to be blamed on Brexit?

I mean, it’s an excuse for the government, so they don’t have to intervene, it’s a clear negative story to put off speculators, seems pretty good to me. 

So yeah, Brexit mate, prices collapsing, wouldn’t invest now, bloody UKIPs, what can you do? 

Edit: Or, even better given the overlap between brexit and landlord demographics - yeah, bloody EU, still price worth paying for taking back our country. What can you do?

Edited by BuyToLeech
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3 hours ago, Barnsey said:

That's 15% in just 12 months folks, and this is coming from an estate agent!

Message from the dark side there is.

 

2 hours ago, VancouverGuy said:

I just felt a great disturbance in the suburbs, as if thousands of voices cried out in terror, and were suddenly silenced.

The force is strong with this one.

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1 hour ago, inbruges said:

Good sign, but it's going to a lot more to get me excited, when family homes  outside Watford start to fall in price then I will start getting a twinge 

Agree. £750,000 to £684,000 in Islington has no impact on affordability. 

While it's good to see this after we've suffered years of massive rises and seen media stories boasting about how million pound average house prices were coming soon, there is a long way to go until an average London wage will buy you anything beyond a flat with a lease problem above a takeaway in Zone 6. 

 

Edited by Tempus
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so the London falls are slowly spreading. Great. 

thankfully the falls will wash outwards this year.

really looking forward to the BTL landlord gone bust stories/posts. 

Another 8 months and the south-west and the midlands should be falling. 

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I do think that rightly or wrongly, at least some of the sentiment is down to Brexit.  

The sort of people (many) who could never bring themselves to admit that prices are ridiculous and have been for ages, like to kid themselves that if not for Brexit, prices would still be soaring into the stratosphere. 

And they can then conveniently blame it on all the swivel-eyed, xenophobic loons who voted to leave. 

Edited by Mrs Bear
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1 hour ago, Jabbabhoy said:

Has anyone got stats on how much properties within the area have risen since 2013/HTB?

Will be interesting to see how far we have to go to get back to event these levels

Some wild things going on in SW London so hard to summarise as greatly depends on type of property and exact location but from what I'm seeing (in very rough observational terms), prices up about 50-60% since 2011 trough, peaked at 60-70% up mid 2016, inflation since 2011 up around 20%. So further falls of 30-40% not unrealistic, especially bearing in mind that these markets held up strongly in the crash anyway, with many of the sources of support 2010 onwards (BTL/foreign buyers) now in retreat.

We must remind ourselves that the market has tipped over despite record employment, rates still incredibly low, economy still perceived to be doing well despite the Brexit vote. What on earth will happen when we ACTUALLY fall into recession (inevitable within next couple years) and we go through with the messy divorce of Brexit? Are things going to just magically reverse and all property confidence be restored?

Many estate agents in my relatively prosperous rented corner of SW19 have closed in the past 6 months, whereas 2014-15 they were popping up everywhere.

Yes we're still a long way off from seeing noticeable falls on the outskirts, but the suburban SE market has flatlined for about a year now, going by all the properties I follow on Rightmove at least. Have faith in the perception of geographical value and its inevitable causation, EVERYTHING is linked. Those zone 6 do-er-up-er houses are gradually looking pretty darn expensive compared with those further in.

Edited by Barnsey
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The Brexit referendum made no sense. Why did it happen? When the hell else do we get a referendum on anything? Bloody never that's when. I don't believe the usual story that Brexit was a complete accident caused by the backfiring of Cameron's plan to placate his eurosceptic backbenchers. 

I think they knew perfectly well that Brexit would wreck everything and in fact they are probably disappointed that the destabilising effects to date are as relatively limited as they are.  They know the background is set for a crash and they intended Brexit would trigger it, because they want to buy assets dirt-cheap afterwards same as we do.

 

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1 hour ago, Barnsey said:

Some wild things going on in SW London so hard to summarise as greatly depends on type of property and exact location but from what I'm seeing (in very rough observational terms), prices up about 50-60% since 2011 trough, peaked at 60-70% up mid 2016, inflation since 2011 up around 20%. So further falls of 30-40% not unrealistic, especially bearing in mind that these markets held up strongly in the crash anyway, with many of the sources of support 2010 onwards (BTL/foreign buyers) now in retreat.

We must remind ourselves that the market has tipped over despite record employment, rates still incredibly low, economy still perceived to be doing well despite the Brexit vote. What on earth will happen when we ACTUALLY fall into recession (inevitable within next couple years) and we go through with the messy divorce of Brexit? Are things going to just magically reverse and all property confidence be restored?

Many estate agents in my relatively prosperous rented corner of SW19 have closed in the past 6 months, whereas 2014-15 they were popping up everywhere.

Yes we're still a long way off from seeing noticeable falls on the outskirts, but the suburban SE market has flatlined for about a year now, going by all the properties I follow on Rightmove at least. Have faith in the perception of geographical value and its inevitable causation, EVERYTHING is linked. Those zone 6 do-er-up-er houses are gradually looking pretty darn expensive compared with those further in.

More to come then, this sounds like the start - well the start on facts coming out anyway

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  • 433 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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