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Willy Weasel

Oversupply Of Flats Forces Prices Down

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http://news.bbc.co.uk/1/hi/business/6267588.stm

Looks like that 'shortage of supply' argument we've been hearing from the Bulls is a complete load of b0ll0cks ;)

Tuffers, if you were a member of the Tufty Club you'll also remember how difficult it was to sell flats during our last crash. There's so many downsides to owning a flat: lease renewal, proximity to neighbours, renovation costs, little or no garden etc.

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Guest Cletus VanDamme
http://news.bbc.co.uk/1/hi/business/6267588.stm

Looks like that 'shortage of supply' argument we've been hearing from the Bulls is a complete load of b0ll0cks ;)

To be fair to the bulls, they've always said a) there is no shortage new build flats, it's only houses that are in short supply B) new build flat prices will fall.

Last time, flats rose more than houses, and they fell more - much more, they were hammered.

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To be fair to the bulls, they've always said a) there is no shortage new build flats, it's only houses that are in short supply B) new build flat prices will fall.

Last time, flats rose more than houses, and they fell more - much more, they were hammered.

Luckily for the Bulls, when BTL investors see the price of their flats falling they won't sell as they want to make both an income and a capital loss on their investments :blink:

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Luckily for the Bulls, when BTL investors see the price of their flats falling they won't sell as they want to make both an income and a capital loss on their investments :blink:

Thats very odd. You would think all those single, East Europeans would be snapping them up :P

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'Flat prices 'now trailing houses'

By Evan Davis

BBC Economics Editor'

Is Land Registry data gold standard?

Evan has been getting very bearish recenty. He will have to be experience some re-education at the Truth Ministry till he repents and gets back "on message."

"now Evan, repeat after me, property prices only go up" (screams and crackles of electricity coming from electrodes clipped to delicate parts of Evan's anatomy).

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http://news.bbc.co.uk/1/hi/business/6267588.stm

Looks like that 'shortage of supply' argument we've been hearing from the Bulls is a complete load of b0ll0cks ;)

When I was in my Bull phase I did predict that flats would be worst affected in the downphase - particularly at the lower end of the market. Too many flats have been built in areas that don't have population pressure (Nottingham? Glasgow?)

Furthermore some geographical areas will be affected worse than others. Again it will be the most downmarket areas that will be the worst affected.

I'm not expecting flats to be badly affected in London. London is nearly all flats. You might pay over one million pounds for a two bed flat in Central London. Its a totally different animal.

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http://news.bbc.co.uk/1/hi/business/6267588.stm

Looks like that 'shortage of supply' argument we've been hearing from the Bulls is a complete load of b0ll0cks ;)

I'm becoming incresingly bullish because of this. I live in a 2 bed purpose built 1960's flat in the best part of Watford, with a garge, and off street parking, and I get to look out on large gardens that aren't cluttered with cars. But people will pay the same as mines worth to live here.

http://www.barratthomes.co.uk/site.cfm?intDevID=853 or here

http://www.smartnewhomes.com/homebuilders/...90/page1.0.aspx

OK so they haven't detailed anywhere else, but basically it's "live on a ring road" or a "development".

This sort of crap only increases the pressure on prices for proper homes.

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Houses v flats. A good illustration of supply and demand at work.

When you consider that Nationwide is recording 11% HPI, but flats are underperforming, then houses must be way above 11% HPI to balance the index.

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When I was in my Bull phase I did predict that flats would be worst affected in the downphase - particularly at the lower end of the market. Too many flats have been built in areas that don't have population pressure (Nottingham? Glasgow?)

Furthermore some geographical areas will be affected worse than others. Again it will be the most downmarket areas that will be the worst affected.

I'm not expecting flats to be badly affected in London. London is nearly all flats. You might pay over one million pounds for a two bed flat in Central London. Its a totally different animal.

If prices are driven by bonuses and overseas surplus cash as the prress reports, it's not diificult to see prices being very significantly affected by a minor recession - ordinary Londoners won't have the income to support current prices.

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Houses v flats. A good illustration of supply and demand at work.

When you consider that Nationwide is recording 11% HPI, but flats are underperforming, then houses must be way above 11% HPI to balance the index.

Or the bottom of the market is starting to crash and will pull the upper parts of the pyramid down with it.

Flats have been rising faster then houses until recently.

Maybe the tide is turning and it only a matter of time before this is passed on up the chain.

This article will make some nice reading for the BTL brigade. :rolleyes:

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exactly equitystasher, it won't be long now before the BTL/Buy to leavers will start packing it. no more HPI :o quick sell onto some greater fool....oh no we're all selling. F*ck it, I'm ruined :lol::lol:

Edited by DoctorJ

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Guest Popalot
Evan has been getting very bearish recenty. He will have to be experience some re-education at the Truth Ministry till he repents and gets back "on message."

"now Evan, repeat after me, property prices only go up" (screams and crackles of electricity coming from electrodes clipped to delicate parts of Evan's anatomy).

:lol::lol::lol::unsure::blink:

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