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ril

Cheap And Expensive Houses The Same Price?

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Hi All,

I have been looking around at house's in bristol and looking back to 2000 @ sold prices against current asking prices, and it seems that in historiclly expensive areas small houses/flats have not gone up much in the last 6 years as cheaper ares eg.

2 bedder in Area like clifton and Water front in 2000 was £130k

Average asking price of same property now on right move £185k

so thats a 30% rise in 6 years or 5% a year, which I think is about normal.

but

looking @ bedminster / ashton / Totterdown etc in 2000 a 2 bedder was £75k

Average asking price of same property now on right move £155k

so thats a 52% rise in 6 years or 9% a year, which I think is not normal.

So in conclusion I think that the historically cheaper area are going to get burt badly when the crash comes and these areas seem to be where people FTB are currently buying as its all they can buy.

Cheers

ril

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Yep, this has been observed before. You get a compression in the market - the relative difference between small and large places and nice and less-nice places narrows as competition for the lower end of the market intensifies.

It does mean that smaller places/less nice areas become more overvalued relatively.

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The same thing's happened with rents in Bristol.

I'm renting a one bedroom flat on the harbourside for £500 pcm, and there are others similarly priced. You'd struggle to rent a flat in Bedminster or Totterdown for that nowadays.

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Btl has driven up the prices of starter homes more than mid-priced ones...Although they've risen much more in percentage terms through this boom medium priced homes have obviously risen a lot more in £ terms so it's still too expensive for many to trade up......

eg starter home up 200% from £50k to £150k

medium home up ''only'' 160% from £75k to £195k........but gap in £ has increased from £25k to £ 45k.

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At last, somebody else has noticed whats going on in the Bristol area...My old house is a 3 bed end terrace in a relatively decent area of Bristol. A few years ago it was valued at 155K, And I believe they are still selling for around that price.

I've actually been looking at houses in the cheaper areas since last November. Back then they were selling for about 95-110k. Those same houses are now going for 115-135k. They seem to have jumped in price by 10-20k since Xmas.

So it looks as if there is a definite 2 teir system going on here. Mid and high price houses are stagnant while the bottom end homes in the cheapest areas are rising steadily in price.

:(

Edited by devslim

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Yep, this has been observed before. You get a compression in the market - the relative difference between small and large places and nice and less-nice places narrows as competition for the lower end of the market intensifies.

It does mean that smaller places/less nice areas become more overvalued relatively.

Same thing in Edinburgh.

I compared a small 1-bed flat in a traditional stone tenement in a historically cheap (but central so popular) area...

•hopelessly insufficient on-street parking- loads of double-parked cars so you sometimes have to sound horn and wait for someone to move car, ofter have to park some distance away..

•some common areas smell of urine

• no nice parks nearby

•some undesirable neighbours so difficult to keep common areas nice

• high proportion of rental flats to OO flats

..to a (townhouse conversion) flat at least 2.5 (probably close to 3x) times the size in one of the smartest central locations..

• common area shared with 2 others instead of 7

• pretty adequate and cheap permit parking

• near to nice bars and restaurants

• 5 acres of landscaped residents gardens along a river managed by a non profit trust/committee.

• vast majority OO.

Guess what? Compare the current market value/flat area... and the 2nd is cheaper!!

What's that all about?? (rhetorical)

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  • 301 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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