Saturday, April 14, 2012

Nice graphs!

Could U.K. House Prices Fall Again By Another 20%?

"On top of all that UK is a lot more hospitable to foreigners than the Americans are; for example to Russians and people whose names set off alarms at Kennedy Airport; particularly those who have suitcases full of oil-money, and other sorts of money too, all lined up so they can slap a one-time-payment on a little pad just off the Edgware Road. In America they call people like that “Aliens”… in UK they call them…”Customers”."

Posted by mapp1066 @ 09:18 PM (3420 views)
Please complete the required fields.



6 thoughts on “Nice graphs!

  • Yes, they could … but …

    Reply
    Please complete the required fields.



  • The first half of the article, the list of differences between the US and the UK, is a good start. However he misses three important differences: #1 the devaluation of the pound, #2 the Eurozone crisis, #3 rising US property taxes, and #4 different underlying land values in the US.

    #1 and #2 are clear: to Europeans, our property is on sale at 30% off, just at a time when they are desperately hunting for ways to preserve their wealth in tax-opaque structures.

    On point #3, in the UK, particularly in London, the ratio of council tax to house price is very low. On point #4, houses in the US aren’t built to last as long. Most of the price comes from the building, not the land, and that shiny wooden frame will rot if not carefully looked after. An American wooden house, left unattended for ten years, will lose most of its value. You’ll also lose a lot in property tax. A London brick house left empty will not only hold value but gain value too, largely from the value of the underlying land; and you’ll pay little (if any) council tax.

    Reply
    Please complete the required fields.



  • keith thomas says:

    I know three people currently trying to sell their house and only one has succeeded – they reduced their original asking price by 10% and sold for 10% below that. So maybe prices are already in the process of falling 20%.

    Reply
    Please complete the required fields.



  • Keith,
    Depends where you are in the country. Northern Ireland has taken an absolute battering; and houses aren’t shifting in the north of England either. Meanwhile the London market, particularly inner London, is doing fairly well.

    Reply
    Please complete the required fields.



  • keith thomas says:

    ‘Depends where you are in the country’ – I live in Elmbridge, Surrey.

    Reply
    Please complete the required fields.



  • Andrew Butter says:

    Reference drewster said…

    Very good comments, I did address the issue of London in the part about “Aliens”, I’m not sure you are 100% right on the issue of land in USA, but if you are right it’s a good point. But in any case my article was not about differential prices in USA or UK, and I still think the difficulty developers have building in UK makes houses more expensive for everyone, and even the possible impact of Euro Refugees ( you need to live in the house too), and the decline in the pound is not relevant, the issue is UK nominal GDP and UK interest rates determining other-than market value in UK pounds.

    Reply
    Please complete the required fields.



Add a comment

  • Your email address is required so we can verify that the comment is genuine. It will not be posted anywhere on the site, will be stored confidentially by us and never given out to any third party.
  • Please note that any viewpoints published here as comments are user´s views and not the views of HousePriceCrash.co.uk.
  • Please adhere to the Guidelines

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes:

<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>