London property downturn?

[Loopyloo80]

Someone on another post mentioned this. Has anyone heard anything?

Latest Zoopla said prices are up 1.5% in my area over the last three months.

I have a property to sell and now I'm nervous...

[MiniMaxi]

Anecdotally it looks that way to me. Or at least, places aren't selling at the inflated prices they would've got pre Brexit.

Nice 2 bed flat near me (zone 2) went on market nearly a year ago - has dropped 18% and still not sold. There is a lot of competition from new builds round here, though.

[Loopyloo80]

jay - I think hackney might be pricier than SE4, but I'll send you a DM!

[EssentialHummus]

jay I'm in se4 and know the area/market/agents pretty well, please shout if you want to chat.

[lalalonglegs]

Zone 2 SW London here - prices are definitely coming down, I get lots of alerts every day on houses that have been reduced into a price bracket I could consider but they're often not that nice: the sort of houses that sell in a boom but people won't compromise for in a less racy market. Certainly when I walk around my neighbourhood, I notice "For Sale" signs on properties for months at a time, very few "Under Offer". The Times had a front page story this week (I can't remember which day) that said London prices were stagnating, properties were generally taking a lot longer to sell and, in their opinion, this would last for some years mainly as a consequence of Brexit.

[TurquoiseDress]

lala

I agree about those properties being reduced and becoming ones you could consider, but they have lots of negatives/simply are not that nice.

If the market was going crazy and people were just buying whatever came up/one viewing then make an offer in excess of asking price, we'd be more prepared to compromise big time.

At the moment things do seem slow.

Also notice there are a lot of chain free properties which are BTL owners selling up, living elsewhere but trying to liquidate.

Unfortunately they are v often deluded stuck on a specific asking price and will not entertain offers- despite being on the market for a good few months.

[another20]

Yes the BTL owners (esp foreign) are selling up.

But listing at silly prices (high).

Due to changes in increased SD, what LTV banks will lend on and reduction on what you can claim against tax another BTL buyer will not be along to take it off their hands as the numbers don't now stack up (unless you have small mortgage). So that is a big chunk of buyers that have disappeared overnight.

All I get on my RM alerts is reductions .... esp for off plan new builds.

[Binkybix]

BTL buyers are not buying now due to all the changes in costs which mean that rents don't cover costs.This has taken a massive cohort out of the market

Companies don't need to pay, so they are still buying. BTL will consolidate but not completely taken out possibly.

[Zampa]

I'm under offer on my 2 bed garden flat in Zone 2, SW London. We had 20 viewings on Day 1, 5 asking price offers and it was sold after best bids for over asking price within a week. We priced it keenly and it achieved the top estate agents' valuation (which was £100K more than 18 months ago).

I'm not convinced that the London market has slowed down yet!

[Ciutadella]

Interesting. I do seem to notice ongoing increases in asking prices - although who knows what the final prices will be? Lots of reductions as pp say, but also quite a few very quick sales!

Very interesting about the impact of btl tax changes. Yes, companies may take up some of the existing btl properties that individuals sell off, but I would have thought large companies would be interested in large blocks rather than the occasional house and flat dotted about here and there which small btlers have bought. Much simpler to manage a large block. Then there are the small btlers setting up companies though i think I read that may make mortgage finance harder to get.

It does seem possible that btl may account for a (slightly?) smaller share of the market in future, which would put some downward pressure on prices.

[RinaH]

I think if prices were back at 2013/2014 prices (which were still crazy) they would be snapped up. When l look at zoopla sold prices going back a year ago they seem so more reasonable than current stock.

[Pixelated]

I agree with the comments about greedy vendors/unrealistic estate agents (and vice versa). I am looking to buy, currently renting, saw a property recently up for sale for 25 per cent more than the vendor paid for it this time last year . BTL owner unwilling to budge on price. Relatively new property, absolutely no improvement work done at all to justify the difference. Perhaps unsurprisingly, it's been on the market since last November with no takers, me included.

Previously, buyers might have been willing to take a risk perhaps paying a slightly higher price knowing that annual rises in the property market would cover it. Not so now. Too many variables and too much uncertainty.

Motivated sellers with properties that are correctly priced are selling.

[RinaH]

What's wrong with EAs? They seem to want to self-destruct. Why don't they lay it on the line to vendors? They can't be making any money in a stand-off. Surely the EA who makes the quick sales will attract volume?

[RutStuck]

Just heard back on a sealed bid that we were too nervous to take part in (London). The EA gave us an inside track as he's hoping to keep us warm for something else. The winning bid was so astronomically above everyone else. They took it into a whole different price bracket. A rare property etc but still. It's hard to get inside the minds of some people. I'm so nervous about overpaying and ending up in negative equity yet others seem to hand over their money with abandon.

[EssentialHummus]

rut I'd guess (because we've been in a similar situation) that these were buyers with a potentially higher budget, who saw something special/unusual in the property and thought, we're having it at whatever cost.

People are also not that good at acting rationally in "sealed bids" situations - there's an element of game theory to it.

[RutStuck]

I'm in the "l fear loss more than l desire gain" camp l think. I don't seem to have the stomach for the bidding madness. I guess successful bidders are in the opposite camp.