to think thank god the London property bubble is looking like bursting

[lexiepix]

www.property-time.co.uk/news/Featured-News-227/articles/Latest-Index-Shows-London-Housing-Bubble-Has-Burst-111171.aspx

Its been long overdue and the lr figures for the last few months show that pretty much all of inner London is falling. I know some will have pain from this, but its been waiting to happen for ages and the longer it inflates the worse the pop will be.

For what it's worth I don't live in London, but I think when they do pop the whole country will be better off. When I was working in London most of my older workmates were on about the UK average pay (22-30), but living in property worth between 500-800k, and calling a 300k one bed flat "cheap"

There is a difference between a bubble softening a bit and bursting.

When the UK fell out of the ERM and interest rates peaked at c. 15%, house prices properly crashed and many people went into negative equity whilst, temporarily, being unable to afford the interest rates on their mortgages. There was mass upheaval, anxiety, disruption and home repossession.

We are a long way from a proper bubble burst.

I would like to see a gentle decline in London prices which would take time but give those who got on the ladder at inflated prices time to adjust.

I've been reading these types of articles for a year now. Bar a massive hike in interest rates, we are not likely to get a crash (much as I would like one). All we have seen is the market correct after the craziness of last year. This was bound to happen. A significant drop in prices will see the pent up demand (lots of people renting want to buy) step in, and then the cycle will continue. Nothing new under the sun.

I think you're being a bit over-optimistic. the bubble wont burst while the financial centre remains strong in London. It's just slowing down. People are no longer being priced out of the market within 2 months, but they're still paying a fortune.

For what it's worth, I bought my house in London last year and quite frankly I would prefer it if the bubble didn't burst because I would prefer not to lose money. It drives me mad that people who don't live in London get so excited about the prospect of those of us who do failing.

As long as Dodgy Dave is wooing companies like Google to "come and invest in the UK" (I thought that was the UK governments job) from a swanky central London location, the bubble will carry on growing.

Unless the population of London plummets for some reason I can't see a crash ever occurring.

I don't believe it for a minute. I know every single 2 bed flat that has come on in Zone 1 on Rightmove (and most of the one beds) under 400k in the last year.

The best ones don't come on the market or are gone in a week.

I'm obsessed because I'm moving there in 15 months.

If I had a pound for every time I've see a London property price crash announcement, I'd almost have enough to buy a small bedsit within spitting distance of the M25. Of course, the vast majority of people would be far better off if it did happen but the chances of a crash while interest rates are so low, every shade of government is willing to pull increasing innovative tricks to shore the market up and rental is so unregulated is tiny.

Going from insane to insane minus 10 percent, isn't a crash, it's a slight correction.

price rises will probably slow down or freeze after the election.
There won't be a crash. Interest rates are low, demand is high and there's too many stinking rich people in London.

A property crash not a good thing. If it happens the way it happened last time (not just the mini crash mainly outside of London in 2007-2009) then thousands of people could be left in negative equity and, if interest rates rise as they undoubtedly will over the next few years, not able to afford their mortages. I don't really understand those who wait with glee (and I speak as someone who bought at the bottom of the market with no intention of moving in the next 20 years so it doesn't really affect me personally either way).

Yes many would all benefit in the long run from lower property prices but that's no reason for all the excitement the minute there's a hint that it looks like it might happen.

A crash helps nobody and would probably put the entire economy into recession with ironically London being the least longterm affected as in 2008. A slowdown in the rise of prices is most likely and would be the best outcome for all.

In any case I don't understand those who seem gleeful at the thought of thousands of people caught up in negative equity or unable to move house.

oh but it is property prices are out of control and way beyond reality, how many people could actually buy the house they currently live in at todays prices?

There has been massive and continual gov/fiscal/BOE intervention to keep prices up benefitting one sector of the population at the expense of the rest. Why is that justified? Remember high property prices transfer money from the young to the old and the poor to the rich wrong wrong wrong for a happy and functioning society.

Thousands of people are left in housing poverty or homeless, having heir lives blighted they are not less important than people who have made certain fiscal decisions!!

I've been waiting for 15 years for the bubble to burst. Ain't gonna happen.

It may soften, but not burst.

I think a crash would be disastrous. But a levelling out and gradual reduction would be good. Probably won't happen that way though.

London prices are ridiculous. We sold a two bed flat in West Hampstead in NW London at a loss in 1993 - DH bought it for £73k in 1987. That flat recently sold for 475K. 475K for a quarter of a house. Utter madness.

I am no more gleeful at that than I am about the others who are harmed by high house prices, property is cyclical, has been for years, why should things be run to benefit the wealthy only, surely with all the carrying on people expected it to just delay the inevitable.

Prices can't just go on going up for ever.

Yes I think it will go into stagnation for a while but perhaps not the great crash everyone keeps predicting. With tightening up on HB and no huge wage increases for most people how can the rise possibly be sustained. I think it would be a very good thing if London house prices fell.

You can't put your life on hold for a crash. I'll repeat my mantra:

Future proof your home. Buy the house that has potential to extend as your families. Sit tight and ride through the inevitable lows. Over decades, the price of your home won't matter. Climbing the property ladder only works in an ever rising market, but we know the reality is that the market will cycle. Don't overleverage. Speculate in property only if you have the cash to lose.

10% in a year would be seen as a crash though. I don't buy this levelling off, it rarely happens. Demand for prime zone 1 London has really gone down.

Still think overall a crash would be a huge benefit for the country. People shouldn't worry about the price of their house as long as they can meet the repayments.

I speak as someone who quit London not wanting to pay half a million for an alright flat and instead put my deposit down to buy a cute house outright in a cheaper area.

The buy to let market and social housing sector need to be fixed and rent controls brought in to help renters, the poor and homeless. A house price crash will not help those groups as nobody will sell properties at a loss if they don't have to and rents will still be high to meet the landlords mortgage.

Thousands of people in their mid 30s/40s who've saved for a decade whilst living in shared accomodation so they can be first time buyers going into negative equity will not help poor people.

A drop in house price inflation is best and most likely.

lexiepix - 'demand for prime zone 1 has gone down' - are you drunk?

There is nothing on the market, anything that comes on is snapped up in a minute.

There is no crash.

Growrh is slowing down a bit, but it's still going up

Prices can't just go on going up for ever. Erm...that's exactly what they do. There are peaks and troughs but in the long-term, they always go up.

The whole point is capricorn that people do have to sell their house in a falling market (and everyone benefits except the older downsizing person think about it)

A house is the most expensive thing most of us will ever buy why do people celebrate ever increasing prices.

angelos my bad I was doing too many things a the same time but I thought I had made it clear and didn't expect people to be so picky, markets cycle they go up they go down and they keep doing it unless something intervenes, if left to itself it will cycle, eventually we will run out of things to do then it will cycle again, what's that expression abut the higher they climb the further they fall (or similar)

Those who think a crash would be great clearly don't understand how interlinked the economy is. A crash could eventually lead to job losses in sectors and regions that don't even appear to be linked to the London housing market. A London crash would cause shockwaves everywhere.

Yup i understand (whispers i am old enough to remember the last one!)