London has popped.


#1

London has finally popped

according to the evening standard sellers are being forced to slash prices

wrong link posted, correct one to follow :blush:


#2

That article was published in April 2008.


#3

Ha ha


#4

That story was definitely in the Evening Standard on Tuesday 3 June, I read it on the train on the way home from work but I can’t find the story online now for some reason. The gist of it was that an unprecedented number of home sellers are being forced to cut asking prices as the market ‘cools down’. Here we go with the soft landing b*llocks.


#5

Overheated home market set to cool in the capital

Nicholas Goodway
Jonathan Prynn, Consumer Business Editor

London’s “intense” overheated property market is set to cool down this summer as buyers “just say no” to massively inflated prices, one of Britain’s biggest mortage lenders warned today.

Graham Beale, chief executive of the Nationwide, said there were growing signs of a “natural correction” in values — after more than five years of remorseless rises fuelled by an acute shortage of homes and waves of wealthy foreign buyers.

The comments from Britain’s third-biggest home loan provider are the most high profile warning yet that London’s remarkably long-running property boom may be approaching the buffers.

They come after Bank of England Governor Mark Carney said the rampant property market posed the biggest threat to the economic recovery. Official figures show average prices in the capital surged to a record £459,000 — up 17 per cent — in the year to May. But Mr Beale said the London market is now finally starting to cool of its own accord with increasingly nervous buyers starting to walk away from over-ambitious asking prices. “At some point buyers just start saying no,” he said.

Mr Beale told the Standard: “I have been talking to a lot of London estate agents recently. They said that the market at the start of the year had been frenetic but it is now showing signs of plateauing out to be just very busy. A hint of natural correction is going on. It’s very early and I can’t be conclusive at the moment.

“My view is that in London we will see a natural correction through the summer months. The intense heat does seem to be dissipating a bit.”

Although it is highly unlikely that the London property market will suffer a full-blown crash, Mr Beale’s comments will increase expectations that the pace of price hikes will sharply slow down and could even fall slightly.

Agents said a range of factors have led to the cooling in the London property markets and a shift in the balance of power from sellers to buyers.

Growing fears about an interest rate rise later this year have persuaded some potential buyers to hold back rather than take on huge new mortgages.

Meanwhile lenders are under growing pressure from the Bank and the Treasury to rein in “irresponsible” lending. Last week Lloyds Banking Group, owner of the Halifax mortgage brand, said it would cap mortgages of more than £500,000 at four times a borrower’s salary.

At the upper end of the market there are increasing jitters about the risk of a mansion tax on homes worth more than £2 million from an incoming Labour or Liberal-Democrat supported administration after next year’s general election.

Last month the Duke of Westminster’s Grosvenor Estates sold a £240 million portfolio of central London properties in what was seen as another sign that the property market could be close to a peak.

Grosvenor’s chief executive Mark Preston said he had been “concerned about the high level of residential prices for some time”.


#6

Nama has got rid of a lot, battersea power station, some of the top hotels etc. Wonder how much is left and what window there is left for an exit.


#7

Cant find the link on line, looks like it was removed
here it is

https://i62.tinypic.com/rksu1f.jpg


#8

That article is actually quite funny. Our London house is under offer. The Estate agent aggressively pushed for us to price it obscenely as far as we were concerned, but all 3 came up with the same suggestion, so we went for it and got it.
Two weeks now before exchange of contracts are due and we have had at least 3 hand written notes through the front door from various estate agents, all claiming that the market has lifted substantially since we went sale agreed, and suggesting we pull out of the sale and re market our house for more.

As far as we are concerned, the London market is being fuelled by greedy estate agents and crazy tactics that ensure any chain is likely to fall apart unless you have a cash buyer or a buyer with a bridging loan.

I am horrified by what I saw on the RTE iplayer last week, a show where queues of buyers are all the way out the door in Dublin - it’s not anything like that busy here. Despite the claims in the papers here about scores of buyers jostling for properties, we had six people view in total, one offer, 3 weeks to sale agreed. Fairly typical from what friends tell me.

Maybe the market here is cooling, maybe it isn’t. It was fired up by estate agents, we found their expectations quite shocking. There is no feeding frenzy by buyers that we can see, even though we read about it in the papers before we put our house on the market. The job market in London is on fire. Where is the confidence coming from in Dublin?


#9

Any market where the government gooses the price by 20% is gonna show a sharp jump.
Combined with the the recent mortgage rule changes we are seeing a situation akin to the removal of MIRAS in the lates 1980s; a rush to buy.

Its the same in the car market here too (UK).
The govts cash-for-shitheaps brought forward years of demand during the crash.
Theres still no credit in the market (banks) but the carbuyers need to sell so the deals atm are astonishing.
The car companies have to provide the finance (shadow banking) to purchase their product.
I saw a brand new Skoda Superb Estate (very big car, basic model) for 5k down and £199 per month @0% over 5 years. I’d be mad not to on those terms.
Some volkswagen dealers are offering 0% on second-hand cars. (second hand over here can mean a pre-registered but basically undriven car).
I was offered a 6 month old vauxhall zafira with less than 1k on the clock for £8K, financed. Thats a new car.

Big variations in property prices too.


#10

prices down 0.5% in June and a 23% jump in the number of homes on the market according to Rightmove

uk.news.yahoo.com/london-proper … wn#phlUi5U%between%


#11

It would be hard to see MyHome coming out with stuff like this

rightmove.co.uk/news/house-price-index/june-2014


#12

House prices at ten times average salary

telegraph.co.uk/finance/personalfinance/houseprices/10905333/House-prices-rise-to-ten-times-average-salary.html


#13

Homes ‘earn’ Londoners more than their jobs as house prices soar

standard.co.uk/news/london/h … 58704.html


#14

That’s from January, was reported by FT last Sept.

Newer news here:

ftalphaville.ft.com/2014/06/17/1 … -crash-17/


#15

Hah! Try measuring the Dublin market in bubblesteps and you’ll have one every two weeks!


#16

#17

The Lonon bubble does look like it is starting to burst alright

irishtimes.com/business/econ … -1.1900325


#18

Housing Debt Bulge as Wages Shrink


#19

So that’ll drive money out of the london market into true quality property markets like Dublin, prices here set for major gains, the recovery is secure


#20

**Bloomberg: London Home Asking Prices Plunge **

bloomberg.com/news/2014-08-1 … years.html