Brexit, Media Blamed As London House Prices Plunge Most Since 2009
Content adapted from this Zerohedge.com article : Source
For the past decade home prices in London have skyrocketed. This run started coming to an end in 2017 and only accelerated as we entered 2018.
Average prices dropped 2.6% in the month of January, the largetst drop since 2009.
This report might be a bit on the rosy since compared to what realtors are seeing.
Business has been slow in “a lot” of offices since the start of the year, though there are more deals being done in some central outlets, Simon Aldous, a director at Savills, said in a survey published last week by the Royal Institution of Chartered Surveyors.
Offers for homes are often more than 10 percent below asking prices, James Gubbins, a partner at Dauntons in Pimlico, said in the poll.
“Uncertainty over Brexit is the issue,” Gubbins said.
This trend is extending beyound the London market weighing on prices across the country. The housing inflation index hit the lowest level since 2012.
Increased taxes on landlords and loan limits in Singapore have also helped to damp demand from overseas, and as Lucian Cook, head of residential research at broker Savills Plc, warns, a decade of soaring prices means London’s more exposed to political and economic uncertainty, the prospect of interest rate increases and mortgage loan limits.
There is a pocket in the North-West part of the country that is seeing a continued increase. Blackburn showed a 16.4% gain over the past 12 months.
Non-adapted content found at zerohedge.com: source
I think there are few things that are going to fundamentally shape the London and UK market over the the next few years. One is mortgage regulation and interest rates. However, this does cap the amount people who can borrow compared to their income, and that keeps deposits high for first time buyers and for home movers. In London, the gap between salaries and house prices is probably biggest, since there was a 500% increase of home prices in the last 20 years, and people have begun to reach the limit of what the size of mortgage they can get, limiting their ability to buy. Another reason is mix of sluggish economic data, Brexit uncertainty, and bubbled prices. Ah, we’re never too far away from Brexit are we? But the huge uncertainty around what sort of Brexit the residents going to get, and how badly it’s going to affect them economically has meant that people have been kept back to move house or take a risk. The Brexit vote was the tipping point that slowed price growth in my opinion. If you hadn’t noticed, London has some outrageously expensive houses. However, I as a house owner, personally am in favor of lower housing prices since it allows me to pay less property taxes.
Indeed Britain's EU exit is holding buyers back from moving house which is affecting the demand of houses in London. Though some people claim this could be a London property burst.. I don't think it is, as many other areas around London still have high prices on houses. The falling house prices is good news to the the people of London. Homes are more affordable which is increasing the demand for property and since their aren't enough homes being supplied to meet demand the houses will likely rise again.. This is the reason I feel the dip won't take long.
Indeed Britain's EU exit is holding buyers back from moving house which is affecting the demand of houses in London. Though some people claim this could be a London property burst.. I don't think it is, as many other areas around London still have high prices on houses. The falling house prices is good news to the the people of London. Homes are more affordable which is increasing the demand for property and since their aren't enough homes being supplied to meet demand the houses will likely rise again.. This is the reason I feel the dip won't take long.
The real estate market saw massive price increases over the cause of the past years so that a decline is just normal. That´s the way the market works, ups and downs are just normal and will always accompany each other.
Of course it´s going to be unpleasant for everyone involved in the market and many will loose some money in the end. Let´s just hope that it´s not going to be too bad after all!
Maybe another reason to stop Pettibone, Sellner and Southern: with housing bubble bursting there is no need for further destabiliziation of (islamic) London.
Too bloody late. Happened years ago
To stop the rot on London property prices Government will announce a new scheme, just after condemning Russia.
The Help The Oligarchs to Buy Scheme.
Something has to be done to keep these inflated prices up.
great sir, thank for sharing
LONDON (Reuters) - British house prices hit a seven-month high in November and companies hired more workers, surveys showed on Thursday, suggesting the economy remained resilient five months after Britain's vote to leave the European Union.
The Royal Institution of Chartered Surveyors said its measure of house price growth hit +30, up from +23 in October and higher than a forecast of +26 in a Reuters poll of economists.
After a decade of soaring prices, spurred on by hot money flows from Russia and China, London's 2017 property slowdown is accelerating in 2018 as Bloomberg reports house prices are falling at the fastest pace since the depths of the recession almost a decade ago, with thecapital’s most expensive areas seeing the biggest declines. Average prices fell 2.6% to 593,396 pounds ($820,000) in January, according to a report published by Acadata on Monday.That’s the most since August 2009. London’s highest-priced boroughs were the biggest losers over the last year, whilethe largest single drop was recorded in Wandsworth, down almost 15 percent. Wandsworth and Southwark are home to huge speculative property developments facing on to the River Thames – including the Battersea Power Station development – but the market for £1m-plus one-bed properties has shrivelled in recent years
great post @zer0hedge