To think that big house price falls finally on the way?

[qwertyflirty]

After years or price rises, in my area (edge of London), I'm finally seeing price falls of around 15% from peak.

Lots of evidence in recent months of house price falls starting and picking up in London/South East, and usually once they start here, price falls spread elsewhere.

House prices are down on average 17K since July 2017 in London. "The average price of a home for the capital as a whole was £471,986, down from a peak of £488,247 last July."

There is little the government can do to mitigate it this time round, as interest rates are already at record lows. All signs are currently pointing to the top of the market having been reached and prices about to crash.

Such as:

www.theguardian.com/business/2018/apr/18/london-house-prices-fall-average-uk

www.thisismoney.co.uk/money/mortgageshome/article-5733321/Beware-red-danger-signs-house-prices-Young-buyers-borrow-record-sums.html

www.theguardian.com/money/2018/may/12/house-prices-are-on-the-slide-where-will-they-go-now

www.independent.co.uk/news/business/news/house-prices-fall-housing-market-rics-survey-april-a8343561.html

www.propertyweek.com/finance/house-price-falls-continue-in-london-and-spread-to-south-west/5096455.article

www.theguardian.com/commentisfree/2018/may/10/celebrate-house-prices-falling-britain-property-values

Can someone explain to me if the economy is doing well & housing is fine why didn’t the BOE raise interest levels?

alreadytaken "Tories with children can often let them live in one of their btls or give them a sizeable chunk to fund their house deposits, they wont vote for Corbyn anyway."

I know a few Labour voters, voted for Corbyn, who bought for their kids.

I think one side of it is when you have a huge amount of money it doesn't matter to you who gets in. I don't think being rich automatically = voting Tory.

Sprinklesinmyelbow

"analysing the property market is my job"

What is your job? Who pays you?

Plenty of people have vested interests in prices continuing to rise. That doesn't mean we need to seriously consider their views though.

Truthfully OP, I think most of the people agreeing with you are in the position of needing the market to fall so they or their children can buy.

Nobody can be proved right on this issue until 5 or 10 or 15 years have passed - we are all just speculating.

I think you’re hoping for a massive crash when it’s likely to be a small correction qwerty

I’d buy btl for cash if there was a huge crash, but I think that’s a bit of wishful thinking only. There will be some stagnation, a small fall then rise again.

Womaningreen totally agree. I have a couple of friends who are incredibly wealthy. Voted for Corbyn. Have bought children properties. When you are that wealthy I agree it doesn’t bother you who gets in.

Sprinklesinmyelbow

Interesting that you think my presenting proof (via links) of what I claim is irrelevant, yet you are quite happy to make unevidenced claims like "You won’t find any analysts who agree with your view that the London market will crash" and expect us to believe it.

Sorry. I just don't believe you.

Bet you thought the boom couldn't end in 2007 too.

Whereas I saw that one coming a mile off.

well one example would be because the flat that sold for 275 might have needed 30k plus spent on a lease Renewal.

in reference to your earlier post, the people who work in the industry are
probably the people you should listen to.. it's not about being biased..its just their job to actually know what is going on so they're going to have a better chance of being correct than people who play on google.

Op I don't know, all I can tell you is of the people in my area living in similar flats to me (converted victorian ones in decent condition), in the last few months they seem to have sold quite quickly and generally at the asking price or just below/sometimes just over.

But you want an argument and I don't!

Tawdrylocalbrouhaha

And curiously, most of those who have disagreed with me have recently bought a property with a tiny deposit or have admitted they'll be out of work if prices fall.

Lots of people have agreed with me. Some haven't - who totally coincidentally, either have jobs that rely on high house prices or recently bought an over-priced house with a high LTV mortgage.

I don’t know why you think this is the case. I’m buying a house and I’m pretty confident the surveyor won’t think it’s overpriced. Nor will I have a particularly high LTV value. But I don’t necessarily agree with you.

Honestly all this generation war, home owners v renters crap in the media at the moment is not helpful or accurate.

Voting Tory doesn't mean you are rich though.

There will be some stagnation, a small fall then rise again.

Yes, that's what I think.

freezerfoodyum

I don't want an argument and you're exactly the kind of person I hope won't be hurt by any price falls because you've obviously really scrimped and saved to buy your own home.

I do disagree with you about the future direction of house prices but equally I hope you personally are not impacted.

Whereas I saw that one coming a mile off.

Well yes, but did you then see the subsequent huge increase in house prices coming? I suspect not, or you wouldn't be in need of a crash (and this time one which affects house prices). If you are always a bear then you never really benefit from the occasions when you happen to be correct, because you always think the bottom is yet to come.

And curiously, most of those who have disagreed with me have recently bought a property with a tiny deposit or have admitted they'll be out of work if prices fall.

At a dinner with friends the other night we were speaking about this and none of them agreed with you either.

We are a diverse group - some renting, some owning, some living with parents, some owning outright and not planning on selling any time soon, if ever...

They agreed stagnation, small fall, yes, but not crash.

MN is not representative of the entire population you know!!!

I’ve noticed a drop in prices near me. Or maybe not a price drop so much as that people are still asking silly money for mediocre properties round here, but, for once, they aren’t selling! It isn’t great news for us tbh as we bought our first house here three years ago. But it’s definitely the bigger properties, especially the newish ones with teeny gardens, which seem not to be shifting. Hoping our little house won’t drop too much... we’ve paid for a good chunk of it already with deposit and repayments, so maybe not so bad if there is a drop .

We’re never moving at this rate, unless it’s to downsize, as I’m so scared of a price crash and negative equity!

I live a bit outside London btw, in the Home Counties.

I don't want an argument and you're exactly the kind of person I hope won't be hurt by any price falls because you've obviously really scrimped and saved to buy your own home.

Thank you, I'm glad I'm worthy

UnimaginativeUsername

"I’m buying a house and I’m pretty confident the surveyor won’t think it’s overpriced."

Maybe. Maybe not.

www.propertyindustryeye.com/lenders-turning-away-one-in-five-transactions-because-of-down-valuations/

freezerfoodyum

Well, you've already stated you think potential buyers aren't worthy as they just don't scrimp and save as hard as you did.

so 4 out of 5 are fine..

freezerfoodyum

Keep wishing on that star...

People in my area are nervous & the few that have sold are selling for less than properties sold for a few years ago.

Againfaster

If it was 5/5, we wouldn't need a thread on this, and we'd all be stocking up on tins!

Barclays analysts report on foxtons, March 2018

“Brutal trading backdrop” and share price target lowered by 21%

“Foxtons continues to face the most challenging market conditions of he companies under our coverage. We make material downgrades to our forecasts”