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Is Anyone Else A Bit Confused?


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HOLA441

Although I don't dispute the veracity of the 10% figures being bandied about in the media, I can't say I've seen such rises.

I've been watching a few areas and haven't seen any rises at all - only prices remaining static, or maybe a slight rise in the last year. One is an area of London where I live, and another is in Sutton (where, by the way, my brother in law has just bought a horrible new-build one-bed flat that looks like a hall of residence for 160K - why!?).

Friends of ours looked at buying a one-bed that they regarded as a bargain two years ago, and we find we can get something similar for more or about the same price.

I can only think that this deluge of city money is only being spent in Kensington and Chelsea and that this is skewing the figures? Can anyone point to areas that have gone up a lot in the last year? I mean specific comparable properties.

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HOLA442
Guest grumpy-old-man

Although I don't dispute the veracity of the 10% figures being bandied about in the media, I can't say I've seen such rises.

I've been watching a few areas and haven't seen any rises at all - only prices remaining static, or maybe a slight rise in the last year. One is an area of London where I live, and another is in Sutton (where, by the way, my brother in law has just bought a horrible new-build one-bed flat that looks like a hall of residence for 160K - why!?).

Friends of ours looked at buying a one-bed that they regarded as a bargain two years ago, and we find we can get something similar for more or about the same price.

I can only think that this deluge of city money is only being spent in Kensington and Chelsea and that this is skewing the figures? Can anyone point to areas that have gone up a lot in the last year? I mean specific comparable properties.

a few of us have been saying this for months now, we will find out soon enough. <_<

Edited by grumpy-old-man
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HOLA443
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HOLA444
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HOLA445

I agree too. While there is very little supply of houses to sell where I live, which is frustrating, those that come onto the market at anything over 2004 prices just don't sell and eventually they either reduce to sell or languish on the market unsold, some for nearly a year. However prices haven't been flat for 2 years - they dipped in 2005 and are now back to 2004 prices. That's what I see anyway, and I have been following the market here very closely for 2 years.

Edited by fairygirl
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HOLA446
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HOLA447

Well I'm in a position in which I have to move. In June we were under offer at £222,500 the chain fell through. Now we are under offer again at £240,000. I was shocked by this increase, I'm just praying for exchange of contracts asap.

kbee

You have hit the nail on the nail on the head. Houses are going under offer and then sitting there for months falling through and tnen back on the market again. Selling a house seems to depend on finding the very few buyers who are able to sell their houses at inflated prices so that they can pay an inflated price on the house you are selling. That is why the market is slowing down - chains are just collapsing and no one can move up until they have sold.

Hope you get sold this time and can get on with your life all the same.

Edited by Wad
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HOLA448

All I can see where I live is massive increases. A year ago, could get 2-bed terraced for £200. Now you wont get a look-in below £230 and most knocking on or breaking the £250 stamp duty barrier. Shocking.

I'm very sorry, but from my PoV, 10% for the south east seems conservative.

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HOLA449
Guest barebear

I live in Sutton.

Example 2003 2 bed flat I used to rent sold for £135000

Exactly the same type recently sold for £159000, that was the asking price! So lets say it made £155000.Thats roughly a 20% rise in 3 years.

It Took 6 months to sell.

People I know who have got more expensive properties say the same.

An EA friend has recently downsized and rented his property out.He says there are simply not enough properties coming on to the market and when they do they hang around forever.He has 2 offices in Worcester Park.

Now that is a supply and demand phenomenum.

People I know just dont want to pay the prices or cant.Contrary to popular belief not everyone around here is on £50 K +.

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HOLA4410

You have hit the nail on the nail on the head. Houses are going under offer and then sitting there for months falling through and tnen back on the market again. Selling a house seems to depend on finding the very few buyers who are able to sell their houses at inflated prices so that they can pay an inflated price on the house you are selling. That is why the market is slowing down - chains are just collapsing and no one can move up until they have sold.

That's definitely the case where I live too. I can think of numerous houses which have come back on the market having been SSTC for several months. I also know of a couple of people trying to sell who have gone SSTC but who are having difficulty with the bottom of the chain completing.

And that's what it's all about in the end - if you can't find a FTB or BTL to buy in at the bottom then it doesn't matter how much you have been promised for your house further up the chain, because that promise is worthless until the chain has completed.

Perhaps this is the way it will all unravel?

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HOLA4411

We should ask all the people who are posting increases here to include the houseprices.co.uk link.

Here is an example of a fall:

http://www.houseprices.co.uk/e.php?q=hp8+4ry

No 3 & 4 came on the market at the same time. 4 was priced at 650K while 3 was priced at 600K. They both sat around for a long time and have finally sold for 500K.

(Ignore the "type" info. It is clearly wrong)

No 4 has taken a loss of 25K.

No 6 is on sale for a stupid price in excess of 800! Let's see what it sells for in the end.

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HOLA4412

That's definitely the case where I live too. I can think of numerous houses which have come back on the market having been SSTC for several months. I also know of a couple of people trying to sell who have gone SSTC but who are having difficulty with the bottom of the chain completing.

And that's what it's all about in the end - if you can't find a FTB or BTL to buy in at the bottom then it doesn't matter how much you have been promised for your house further up the chain, because that promise is worthless until the chain has completed.

Perhaps this is the way it will all unravel?

Also as repossessions increase and BTLers bail out supply will increase.

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HOLA4413

Although I don't dispute the veracity of the 10% figures being bandied about in the media, I can't say I've seen such rises.

I've been watching a few areas and haven't seen any rises at all - only prices remaining static, or maybe a slight rise in the last year. One is an area of London where I live, and another is in Sutton (where, by the way, my brother in law has just bought a horrible new-build one-bed flat that looks like a hall of residence for 160K - why!?).

Friends of ours looked at buying a one-bed that they regarded as a bargain two years ago, and we find we can get something similar for more or about the same price.

I can only think that this deluge of city money is only being spent in Kensington and Chelsea and that this is skewing the figures? Can anyone point to areas that have gone up a lot in the last year? I mean specific comparable properties.

I could not agree more as I have seen the same in Wycombe, Aylesbury, Maidenhead and another supporter of this theory stated Marlow is in the same situation.

I am in Cheshire at the moment and have been speaking to a friend who has bought a 3 bed for 130K. These houses were 170K about 3 years ago which shows the massive influence London has on these discussions.

Have a nice New Year

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HOLA4414

I can only think that this deluge of city money is only being spent in Kensington and Chelsea and that this is skewing the figures? Can anyone point to areas that have gone up a lot in the last year? I mean specific comparable properties.

IMO, it's as much, if not more, foreign buyers in London snapping up UK assets rather than city buyers. City buyers only need 1 place in London and a commutable country place. After that they will buy in the SW, Scotland or abroad. Why would they want an investment place in the London area when they can get far better returns elsewhere? It's also hard to believe they move home every bonus year or two.

About 6 months ago I spoke to an estate agent who works for a knight frank type EA in south west London. She told me that 60-70% of her buyers were from abroad - although this may not hold true for city of London areas. Look at how UK infrastructure assets such as energy, water, airports & ports are now owned from abroad. Maybe the same thing is happening to top end London houses, distorting the averages. It is far more palatable for the media to tell people in the UK that they are being priced out by homegrown wealth rather than the continued drain of our assets abroad.

Don't know how one would classify the huge numbers of hedge funds GordEnron has attracted here through lax regulation and low taxes. Maybe city buyers are foreign buyers. Maybe it's a pointless point anyway :)

Agree that it's the top end places distorting the averages, though!

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HOLA4415

The SE does appear to be doing poorly according to the ODPM's stats which suggests that the VIs may be wrong when they say prices are soaring in that area? Maybe they made a mistake? For flats it is looking good for the months ahead:

Sevenoaks

£194,181 -4.6% (Last Q) 27.6% (Annual) 54 (Sold)

Tunbridge Wells

£194,081 -1.6% -3.5% 172

Tonbridge And Malling

£182,125 -11.8% 7.9% 81

Canterbury

£149,731 0.7% 7.6% 134

Maidstone

£142,859 -2.4% -3.4% 97

Dartford

£142,610 5.7% 8% 121

Ashford

£141,275 -0.9% -3.7% 84

Shepway

£135,813 3.3% 3.6% 160

Gravesham

£135,057 3.9% 2.9% 90

Thanet

£122,368 6.9% 7.6% 256

Swale

£119,497 4.1% 7% 80

Dover

£112,996 -1.7% -2.8% 97

Medway

£112,631 -3.1% -3.4% 163

Edited by Realistbear
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HOLA4416

don't forget to account for east London insane Olympic hype - and the few newbuilds that actually get sold (where mug punters are uncovered) tend to go at ridiculous amounts.

When the re-sales / repoes are done, we will see that trend reverse!

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