London - are house prices dropping near you?

[ScoutandAtticus]

I live in SW19 and have noticed alot more reduced prices in the last few weeks. Could this mean the bubble has popped just a little? Some of the prices here have been crazy.

Hard to say, Scout. We are due to complete next week, on a house for which the offer was accepted in autumn. Most of the stock that was around at the end of last year has now sold, and the most noticeable characteristic has been a lack of stock now available in the area we're moving to. But I've spotted a couple of similar houses coming on this year that are way more expensive than what we are paying, despite similar condition. So I can't say I've seen any evidence to support the notion of a drop. Is it possible that the properties you're looking at have been hanging around for a while and now that spring's here, people are reducing so that they can get shot?

I've seen a lot of reduced properties over the last few years on Rightmove. However, everyone I know who has moved or is looking in London has had to compete with several buyers and pay over the asking price. There is an overpriced house near me which has been extended and renovated throughout and has been on the market for at least a year. It keeps popping up as "added today".
Personally, I'd like to move, and could afford it. But by the time we've added up all the costs we decide that we're better off staying as we do like our house. I don't live too far from SW19 and loads of places are converting their lofts rather than moving it seems.
So I think that the property jewels probably sell easily, and the reduced ones tend to be people who can afford to wait a long time for a buyer.

No the London house market has been really strong in the last couple of months.

That's not to say it'll stay that way; the market has been extra inflated with people trying to buy before new btl/second homes penalties are introduced in April.

The knock on from that is that there is also pent up demand with ordinary buyers holding back as there are so many btlers, so demand should be strong for a while. At the end of the day there is s housing shortage in London.

But who knows what will happen!

I am not far from SW19 and my house has been in the market for 4 weeks. Four viewings and 4 offers but the best one still £50k short of the asking price.
I'm in no hurry to sell so am not accepting anything less at the moment.

I've seen a few places reducing their prices but that's primarily because they were overpriced to start with. I'd say the market is starting to stabilise but as a FTB there is still a lot of demand / competition so in first time buys things are still going for over the asking price. But the market really does vary area to area. We were looking in E. London where it was ridiculously fast but in SE London, although more expensive you can just about scrape in a second viewing if you're fast.

I think a lot of people/agents were chancing their arms ahead of the BTL changes and asking prices may have reduced accordingly now that window is closed, but they're not really dropping - sold prices are still well up.

There's also been a change in approach by estate agents, though I'm not quite sure when it really took off. Now, it appears that EAs put houses on at a floor price, and try to encourage a bidding war in excess of the price at which the property was marketed.
However, not all EAs are following this model, or possibly not all vendors are comfortable with it. Consequently, some houses are still being put on at the "ask for top dollar and take an offer" price, so with the combination of the two models visible on Rightmove or whatever, it's a confused picture.
Perhaps the houses that are being reduced are those that were being marketed at the ceiling price rather than on an "offers in excess of" basis.

House prices have doubled where I am (suddenly commuter belt as people are pushed out) with bidding wars taking houses anything upto 150k over asking.

I saw a flat yesterday and the EA was telling me that her friends house (in Leyton) increased by £200k in just over a year. That's the area we were looking at and it really is insane. People were paying massively over the asking price. We've stopped looking there now but in the SE having spoken to EA there is still some room for negotiation (no evidence of that on our search so far) and fewer sealed bids.

Not in my area. Prices just keep going up and houses get snapped up very quickly.

Hard to say around here. I think some sellers and EAs think it's still 2014 and are pricing accordingly and expecting bidding wars, but the market is a lot cooler and there is a LOT more choice. So people are just not getting their crazy ambitious asking prices and then it comes down to whether or not they actually need to sell.

Not really where I live. And also depends at what end of the market. Some of the 3 million plus houses take a while to sell (SW London) unsurprisingly. The 2 bed flats have massively gone up in value. In 2010 we bought a tiny two bed for 295K with a front and back garden. It would cost us well over 500K to buy the same now. So if you are a FTB no the market hasn't slowed down at all (even in 2016). Also the 3-4 bed terraced family houses in half decent school catchments are in massive demand. In 2013 the ones we saw for 650K are now between 850-900K. That applies for new builds and older properties. Then the next jump up are the Victorian semis in the 1.2-1.5 range. I think there is a slow down there. And lots of people in the less than a million pound houses are preferring to convert lofts than move. So even within areas it depends on the kind of property and the target audience for them.

I agree that houses/flats that are lettable were being bought very quickly but I know two people who have tried to sell family homes in my area of SW London in the past few months: the first gave up and decided to stay put; the second had a sale fall through the day before exchange and finally sold quite a bit below asking price, I gather. The returns on those houses would have been about 3-3.5% before taxes, expenses etc so not really worth the BTLers falling over themselves to get them and the interest elsewhere seems not to have been overwhelming. I've also got a Rightmove alert for my neighbourhood and seen some houses being reoffered with multiple agencies or prices coming down - not enough to tempt me but it is becoming more of a buyers' market, in my opinion.

South east London here and no, I have seen the opposite, every month asking and selling prices continue to rise. Houses are selling for 100k more this year than last year.

I've just looked at my area of sw London and I'm . It was a cheap area when we bought 5 years ago but now it's gone crazy. It has improved massively since this time, but we always liked it as it didn't feel pretentious. Not sure how I'd describe it now maybe a bit try hard?

Lots of stuff for sale here, some price reductions

Haha no.

Maybe it's an anomaly. I keep a very close eye on zoopla and rightmove. We are not moving - I am just nosey. I have noticed alot more reduced prices in the last few weeks. My friend was advised to put her house on for alot less than she expected. Just made me wonder if something was going on.

Still going up in East London. Flats and double flats houses. Where exactly are these price drops being seen?

I saw a snippet of news earlier today saying London house prices were dropping. But they've been predicting that for quite a while. I can't see how those price increases are sustainable. But the bubble will burst sooner or later. Especially with rising interest rates in the pipeline, cuts to benefits and changes in btl finance.

Family homes around the £1m mark seem to be slow to sell at the moment in my neck of the woods. Anything between £500k - £900k seems to turn over very quickly.

If anything I would suggest that householders pitching their prices at a hopeful £100k above market seem to be stagnating.

Higher than ever in East London!

The basement flat next door to me (one bed and only a section of the garden) sold for £395,000!!!! The biggest selling point is that we are literally around the corner from the station. Prices are a joke

Steady rise where we are, due mainly to a Crossrail station being developed nearby (5 min bus ride although EA's list it as being 'walking distance)

I've found zoopla to be inaccurate for our street. Our 3 bed terrace is estimated on there at £256k whereas next door is £266k (houses are exactly the same) However, a two bed terrace around the corner is listed with the EA at £280k...might not get it but could go for £250-260k.

I personally think the prices are over inflated and wonder if they'll be sustained. Luckily, we didn't buy for 250k, so we can stay here comfortably even if the market goes pear shaped. I feel for FTB's though.

FTB here and we have today, again, been outbid by a stupid amount. This time last week we were seeing a couple of flats that had been on the market a month or two, the flat we lost out on had only been on for 24 hours. Same area and went for £30k over the asking price. There's no consistency so reading the market is really hard.