Monday, October 27, 2008

London not so immune after all

Monthly figures reveal huge fall in property prices

FRESH evidence of London's collapsing property market emerged today as new figures revealed prices in the capital fell almost nine per cent in the last month. Homes in Kensington & Chelsea lost an average of £13,000 last month alone, while those in neighbouring Hammersmith & Fulham fell by £7,700, Richmond by £7,500 and in Wandsworth and Merton by £6,000, the Hometrack figures reveal. To add to the gloom, data from the National House Building Council reveals that house building in London has hit an all-time low, with only 517 private homes started last month.

Posted by little professor @ 05:31 PM (1434 views)
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12 thoughts on “London not so immune after all

  • Pretty bad wording – they mean ‘fell almost nine percent YEAR ON YEAR last month’

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  • japanese uncle says:

    I strongly suspect the underlying reality may well be 9% drop from the previous month.

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  • beartil2010 – The third para refers to ‘the latest monthly fall of 1.6%. A fall since last month of £13,000 for places in Kensington & Chelsea is certainly more like a fall of 1.6% than one of 9%, so you’re right. Have these hacks been on the p!ss all day when they write this stuff or are they just not very good with words and concepts?

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  • icarus………….

    Probably a Freudian Slip, JU is succinctly correct.

    I have a friend who owns a property in Westminster and he is oh so confident he is immune to this downturn and is completely deaf to my opinion. Fortunately for him, he has no mortgage and receives a very good rental income from the property. This rather insulates him,but he will not hear of any valuation below the top of the market around the end of 2006. A lot of these properties are bought and paid for so in many respects the price is a matter of stubborn pride creating a nice big drop percentage wise.

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  • mark wadsworth says:

    There was a slightly different version of this article in the London Lite (ES sister paper) that did indeed say 9% fall in one month, as JU correctly assumes.

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  • little professor says:

    No, the hometrack figures showed a 9% annual drop.

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  • Any examples? The examples quoted in the ES are evidently closer to 1% than to 9%. Are enough deals taking place to make proper like-with-like comparisons anyway?

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  • Roughly 40% of people in the UK own their own home outright. The only movement in the market, for over a year now has been existing homeowners trading up or down.
    Isnt the more simple truth that house prices are in freefall because the market cannot survive without FTB’s?
    And shouldnt we therefore conclude that if no-FTB’s buys a house until they return to, say, what they were valued at in 2000, then sooner or later, they WILL HAVE TO resort to their 2000 price?

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  • CEBR, where the figures seem to come from, are a limited company who produce statistics to order. As noted previously, it would be in their interest to produce statistics to prove the point of whoever their paying masters are. I would not get too worked up about it.

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  • stillthinking says:

    Rents what about rents? They need to crash too.

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  • stillthinking – I think they’re s’posed to go up because of all the demand from non-buyers. At least that’s what experts like Assetz tell us.

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  • stillthinking says:

    They aren’t coming down much though. I am concerned that the government social housing moves into the private accomodation sector will create an artificial bottom. Which will, in turn, result in my own privately arranged rent being bidded up by government money, -again from me-, extracted in taxes and diverted to the private rental sector. A double whack in the chops.

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