Wednesday, May 21, 2014
London in Wongaland
The guardian
It is interesting to see just how stark house prices as in other parts of the country compared to London even with low interest rates. . It begs the question just where would London house prices be without this investment frenzy. The article highlights one 6th Floor flat in Brixton that sold for £270,000 a year ago that is now on the market for £449,000 and they expect it to go soon. If my maths are correct thats a 66% rise in a year. In another article properties in Croydon went up 5% in April and 6.8% in Haringay. Personally, i'd like to see this bubble go the whole distance rather than taper off and it looks like Carney will play ball with the interest rates and stoke it up until it explodes
Posted by britishblue @ 04:27 PM (4722 views)
8 thoughts on “London in Wongaland”
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reticent says:
“Personally, i’d like to see this bubble go the whole distance rather than taper off and it looks like Carney will play ball with the interest rates and stoke it up until it explodes”
Be careful what you wish for… If prices in Brixton go up 66% next year, they will have to fall 40% to get back where they are now. The deepest nominal HPCs have all been around 20% (although there are isolated examples of much bigger falls, obviously).
Most of the craziest appreciation stories I’ve heard are in Brixton, for some reason.
sibley's b'stard child says:
Brixton village dahling.
khards says:
The story of London will be a long slow deflationary one as peoples disposable income is eaten up with mortgage interest and the botique shops, restaurants and bars close their doors. Nobody’s going to want to live there in a decade.
britishblue says:
Reticent that is the UK. There have been much bigger falls elsewhere. If it stokes up more, the more likely that overseas buyers will start to offload, which could have a snowball effect. traditionally people that had familes and mortages had to stay put and see it out as a form of denial that their property was worth more. Overseas investors dont have to do that and can afford to offload on the way down at auctions.
jack c says:
sibley’s b’stard child said…Brixton village dahling Wednesday, May 21, 2014 05:26PM
Jolly well on the money there Sib’s old boy, Brixton is up and coming don’t they know, must dash just off to a Brixton dinner party !
“Brokers have complained that some lenders are asking whether borrowers serve steak at dinner parties or how much their client spends on things like grooming and gym membership, arguing some lenders have gone too far”
For more see http://www.mortgagestrategy.co.uk/fca-queries-bizarre-affordability-questions/2010492.article
stillthinking says:
I need to keep working more than I need an affordable house dangled in front of my unemployed nose, so if rampant house price inflation keeps things going for a while then fine.
hpwatcher says:
stoke! stoke! stoke!
hpwatcher says:
Marvelous unproductive lending!
Hahahahahahahahahahhahah