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Asking prices for London homes record biggest falls this decade

Covered EndCovered End
in Not Sports Related
But this headline finding masks much larger falls in some of the capital’s most expensive boroughs. The average asking price of a home in Kensington and Chelsea plummeted by more than £300,000 between August and September, and Camden was also hit hard.

https://www.theguardian.com/money/2017/sep/18/asking-price-house-london-fall-kensington-chelsea
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Comments

  • Rob7LeeRob7Lee
    Prices are sliding, classic car prices also...... wheres the 'it's happening' GIF......... for once I may have called the top, fingers crossed I exchange soon.
  • HartleypeteHartleypete
    Wait till interest rates go up then you will see an almighty crash.
  • Rob7LeeRob7Lee
    Covered End said:

    I can't remember which thread it was on, but I predicted a property price fall about a year ago.
    Possibly, when we were discussing the possibility of Brexit.

    I said one of the benefits as I saw it, was I thought it may give my grown up kids an opportunity of owning their own property. I don't recall anyone agreeing with me.

    The danger is of course that although lower house prices will enable your grown up kids onto the ladder or others not currently on it, it may mean many others lose their homes especially if it coincides with interest rate increases. I don't think a housing crash, negative equity and repossessions would be good right now for the country. It'll also mean the rich picking up a load more property cheap! That'll upset some people greatly :wink:
    cabbles said:

    As a perennial renter who spends a fair chunk of my wages on the over inflated rental market and thus cannot save for any sort of deposit, I rejoice at the news that the average house price in London has dropped to £610,000.

    I'm now diverting my shrapnel savings pot that all my change goes in for my season ticket and will focus on working toward the £61k deposit needed for said house

    In the pot currently is all my change, totalling about £160. I'm confident

    Sit tight Kemosabe, your day will come, speculate to accumulate.
  • letthegoodtimesrollletthegoodtimesroll
    edited September 2017
    Hartleypete said:

    Wait till interest rates go up then you will see an almighty crash.

    That's why interest rates are not going up anytime soon

    We will see some lending reined back instead.

    And top end house prices losing some of the extra premium isn't going to help people get on the housing ownership ladder
  • clb74clb74
    cabbles said:

    As a perennial renter who spends a fair chunk of my wages on the over inflated rental market and thus cannot save for any sort of deposit, I rejoice at the news that the average house price in London has dropped to £610,000.

    I'm now diverting my shrapnel savings pot that all my change goes in for my season ticket and will focus on working toward the £61k deposit needed for said house

    In the pot currently is all my change, totalling about £160. I'm confident

    I've got about the same in my pension pot £160.
  • clb74clb74
    Covered End said:

    I can't remember which thread it was on, but I predicted a property price fall about a year ago.
    Possibly, when we were discussing the possibility of Brexit.

    I said one of the benefits as I saw it, was I thought it may give my grown up kids an opportunity of owning their own property. I don't recall anyone agreeing with me.

    Being selfish about 20% drop will then buy my retirement home
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  • SantaClausSantaClaus
    edited September 2017
    I hope they fall through the floor. High house prices screw too many sections of our society and make the economy ridiculously uncompetitive. If this country is going to thrive going forward we need young people in particular to have a tangible stake in its (and their) future.
  • TelMc32TelMc32
    The prime London market has been dead for 3 years at least. Overseas & cash rich U.K. investors had snapped up properties and then mothballed them as investments, reducing the churn and artificially inflating prices when properties did then come on. All the major agents in this sector have been badly affected.

    As always, there are winners and losers in London depending on your perspective. The areas around Woolwich/Plumstead are hitting prices I wouldn't have thought possible several years ago as transport links improve and only seem to be increasing as Crossrail opening gets nearer.

    Rate rises will start soon though and potentially dampen the market, which wouldn't be a bad thing in my opinion. It will make things very difficult though for people who are struggling and only just managing at current levels.
  • newyorkaddicknewyorkaddick
    Remove stamp duty and prices will plummet
  • Covered EndCovered End
    Hartleypete said:

    Wait till interest rates go up then you will see an almighty crash.

    The first 0.25% rise is expected in November and the next 0.25% rise in May 2018.
  • Covered EndCovered End
    letthegoodtimesroll said:

    Hartleypete said:

    Wait till interest rates go up then you will see an almighty crash.

    That's why interest rates are not going up anytime soon

    We will see some lending reined back instead.

    And top end house prices losing some of the extra premium isn't going to help people get on the housing ownership ladder
    Rates are expected to rise in 2 months.

    If the top end of the market is tumbling then price falls are likely to trickle down.
  • stonemusestonemuse
    Covered End said:

    I can't remember which thread it was on, but I predicted a property price fall about a year ago.
    Possibly, when we were discussing the possibility of Brexit.

    I said one of the benefits as I saw it, was I thought it may give my grown up kids an opportunity of owning their own property. I don't recall anyone agreeing with me.

    I did.
  • Covered EndCovered End
    edited September 2017
    stonemuse said:

    Covered End said:

    I can't remember which thread it was on, but I predicted a property price fall about a year ago.
    Possibly, when we were discussing the possibility of Brexit.

    I said one of the benefits as I saw it, was I thought it may give my grown up kids an opportunity of owning their own property. I don't recall anyone agreeing with me.

    I did.
    That's good. I must have said it then :smile:
  • cantersaddickcantersaddick
    I've been predicting a house price correction for a while now (not on here). I have also been saying that the BOE / Govt won't allow it to have its full effect if any.

    The housing market underpins so much of our economy that a small price correction could easily lead to a crisis of similar proportions to 07/08 and we are now in an (even) worse position to deal with it.
  • RedArmySE7RedArmySE7
    Sounds about right, I bought my first flat in 2006 just before the 2008 crash and I'm just about to complete on my first house so will be hit again.

    Still, it does need re balancing, the housing market has been inflated for far too long.
  • SE10AddickSE10Addick
    Great timing - we should be exchanging on a house today!
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  • letthegoodtimesrollletthegoodtimesroll
    The problem with the latest figures is a lot of London property in particular has been bought through single asset offshore companies (Panama, BVI, Seychelles etc) and when the property changes hands it doesn't get recorded because it's the offshore company that is bought and sold, not the property. The truth is, nobody knows what the real picture is for property prices but given that London is still a safe haven and Sterling is cheap I suspect that those offshore co properties are not being sold for less than they were bought for.

    As for the predictions of interest rates going up, I just can't see it happening.
  • Covered_End_LadCovered_End_Lad
    Just as I complete on my first house -_-
  • Super_Eddie_YoudsSuper_Eddie_Youds
    In london and the south east the lack of supply still exists (and likely always will) and people can sit on assets like housing, dips are short term. For anyone completing now, if you have a fixed rate mortgage I reckon you'll ride it out and not to worry too much about short term losses.
  • MrLargoMrLargo
    Covered_End_Lad said:

    Just as I complete on my first house -_-

    Think you're buying at a good time mate. There won't be a property crash in London, but it's much more of a buyer's market now than it was in mid-late 2015. Whatever you're buying is probably 5% or so cheaper than it would have been pre-Brexit Referendum, and you're benefitting from lower interest rates on your mortgage than people buying in 4 or 5 months will be getting (presuming they put up the base rate by 0.25% later this year, as has been suggested).

    Think it'll stagnate for 2 or 3 years, but that's a good thing in my opinion.
  • TelMc32TelMc32
    Worth a read if this is something you're interested in...

  • Curb_ItCurb_It
    Ridiculous prices for a crap view of the Thames.
  • clb74clb74
    Curb_It said:

    Ridiculous prices for a crap view of the Thames.

    Do you know if I would get much of a discount if buying 2 of them
  • bobmunrobobmunro
    Curb_It said:

    Ridiculous prices for a crap view of the Thames.

    £1.3 mill for Woolwich!! I never believed that could be a reality in my lifetime!
  • killerandflashkillerandflash
    Rob7Lee said:

    Covered End said:

    I can't remember which thread it was on, but I predicted a property price fall about a year ago.
    Possibly, when we were discussing the possibility of Brexit.

    I said one of the benefits as I saw it, was I thought it may give my grown up kids an opportunity of owning their own property. I don't recall anyone agreeing with me.

    The danger is of course that although lower house prices will enable your grown up kids onto the ladder or others not currently on it, it may mean many others lose their homes especially if it coincides with interest rate increases. I don't think a housing crash, negative equity and repossessions would be good right now for the country. It'll also mean the rich picking up a load more property cheap! That'll upset some people greatly :wink:

    If house prices are too high in real terms - the ratio to average wages is bonkers at the moment - the only way of correction this is either a crash or to have no house price increases for the next 25 years.

    Politicians may not want such a correction, but the alternative is to have a whole generation of young people priced out of the market until their parents can help.

  • bobmunrobobmunro
    edited September 2017
    bobmunro said:

    Curb_It said:

    Ridiculous prices for a crap view of the Thames.

    £1.3 mill for Woolwich!! I never believed that could be a reality in my lifetime!
    This as an example, not far from me, for less! http://www.rightmove.co.uk/property-for-sale/property-64429037.html

    I know it's up t'north but still.
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