Friday, Mar 27, 2015

Start i f something bigger?

Telegraph: Houseprice falls in central london spread

Prices starting to fall despite just about everything thrown at it...there is nothing left bar
Hmg paying people's mortgages!..seems just like japan where prices fell despite everything
Done to prop things up....the reason?'s a bubble that's bursting as all bubbles do.

Posted by taffee @ 06:46 AM (8228 views)
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1. khards said...

Hmg already pay pensioners mortgages via SMI, using working peoples tax money to do so.

Friday, March 27, 2015 07:37AM Report Comment

2. hpwatcher said...

I doubt whether any falls will be big enough to make much of a difference to me.

Friday, March 27, 2015 09:11AM Report Comment

3. debtserf said...

When the opposite of the present dynamic is "impossible," then the "impossible" becomes not just likely but inevitable.

Friday, March 27, 2015 09:18AM Report Comment

4. taffee said...

Like ' stocks have reached a permanently high plateau' quote just before 1929 stock market crash

Friday, March 27, 2015 09:28AM Report Comment

5. britishblue said...

The wealthy investors that have sky rocketed the London market come from four main areas:

a. The Middle East
b. Russia
c. China
d. Europe

has anything changed in the last year that could possibly effect these peoples ability to import fresh new billions of investment money into the UK?
As Martin Armstrong says, 'everything is connected.'

Friday, March 27, 2015 09:48AM Report Comment

6. landofconfusion said...

@ 5. britishblue

I don't think it's about their ability to invest but rather their reasons to invest. And with an overpriced market looking like it's about to implode if it were me I'd get out and probably invest somewhere with better value, like Europe or Japan.

Friday, March 27, 2015 10:41AM Report Comment

7. cyril said...

If you're filthy rich you might not think like a normal person. You might not mind losing a few million quid on your London house if you've got more money than you know what to do with/

Friday, March 27, 2015 12:33PM Report Comment

8. sneaker said...

@5 britishblue
a. The Middle East: oil price collapse
b. Russia: oil price collapse, sanctions, Rouble collapse, Putin demanding oligarchs bring overseas cash home
c. China: corruption crack-down, economic slow-down
d. Europe: if growth *returns* to Europe, investments in the UK will be liquidated the money repatriated for use there
e. OECD: crack-down on tax havens and tax-avoidance
f. Private Banking: secrecy and tax-evasion crack-down (e.g. HSBC)
g. Political Risk in UK: EU referendum, SNP rising, UKIP rising, Tories posturing against the "offshore oligarchs"
h. if Sterling weakens, any non-Sterling investor will be hurting and look to sell out

A lot has changed and notice that super-priced London property has been going down since May of last year (around the time Russia annexed Crimea). Some coincidence. The top-end of the market has been largely driven by Russians and this has been in particular trouble. The Chinese are more active in the 500k-2m area - which has also slowed down.

For the market to continue up, there has to be a fresh source of financial flows. I can't name one just yet.

Friday, March 27, 2015 01:31PM Report Comment

9. cornishman said...

"For the market to continue up, there has to be a fresh source of financial flows"

- QE

Friday, March 27, 2015 01:50PM Report Comment

10. cyril said...

If you 'do the math' it strikes me that the national average house price could easily be influenced by foreign investment in London because the national volume of sales is quite low - so the price is determined in a very small market, then applied to a very big one.
For example, if johnny foreigners buy 100 houses in central London for £1.5m each - and the sellers re-invest the money in buying houses from within the current housing stock - this would increase the national average house price by 1%. At least I think so.

Friday, March 27, 2015 02:25PM Report Comment

11. reticent said...

Is this new data or just a rehashing of the last one based on asking prices? She doesn't even cite what index she's quoting as far as I can see.

Mostly useless article, although she does seem to be the only bear at the DT.

Saturday, March 28, 2015 02:16AM Report Comment

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