London house prices - not falling?

[Ruminnnn]

i keep reading how London house prices are falling. But looking at Rightmove today, I am seeing no evidence of that!

Anyone know what’s going on?

It depends which part of London.

Prices have been falling for ages in Central London due to fewer international buyers since Covid.

It's very possible that prices aren't falling in certain parts of London though. There isn't just one property market but a whole series of markets and that's especially true in London where desirable neighbourhoods can be literally round the corner from deprived neighbourhoods.

They've fallen significantly in west London where I live. We will probably have to sell our property for less than we bought it for 10 years ago.

They are on outskirts. I’m looking at CR3 - just on border of South London / Surrey. I’m looking at flats not houses but definitely falling. Some have dropped 25k

The thing is, when people aren't getting a "good price", they mostly sit tight and everything stagnates. It took years in London after 2007 and sales dwindled to almost nothing, then took off with a roar a couple of years later. .

All you can do is keep looking and hope someone needs to sell and can't hold off.

House prices rose in October.

What sort of percentage is 25k in relation to the price of the properties?

I’m looking at north London - central ish! Prices are definitely higher than a few years ago!

I'm in east London and needing to sell fairly soon. I have seen a few 'reduced' prices on Rightmove... it does worry me.

SE London and prices are definitely lower than a year ago.

Feels as though the best houses are selling at steady nominal prices, but about 11% down in real terms from prepandemic.

Thing is, there aren't huge numbers of buyers who can afford to be relaxed about the prices sellers are demandind. The unexceptional houses aren't selling at all - they sit on the market forever. Doer-uppers don't seem to be selling either.

So I don't know if there's a backlog of houses that need to be sold eventually, but would have to be heavily reduced to find buyers?

Where we are flats struggle to sell, but proper family homes are snapped up in seconds as there’s a real shortage. We’re in a desirable family area though and once people have their family home they don’t tend to move. As pps said I think it can differ everywhere, but in our area alone I bet if you averages out the flats not selling well vs the family homes selling well it would give you a 0% property price increase (for example) which wouldn’t reflect the whole picture. Also round here I think people buy their family home with a long term view so aren’t so fussed about getting that £10k off asking price as in 15 years will it matter - also they probably don’t have a choice as someone else would just pay asking price or over.

@Zanatdy CR3 is a great place to live

Asking prices are finally dropping although from a high base as you mentioned hence the mixed feeling. Not everything is happening on Rightmove, agents are sometime sending the memo « would you consider this house at that price » or just general begging to view listing they overpriced in order to get low balls. I think the market has entered more firmly the next stage of sellers capitulation as we have been seeing hefty reduction by motivated sellers.

It really is. So many lovely country walks (we have set up a local ladies walking club and finding so many lovely places to walk) but also 30mins to London Victoria. Excellent schools, my 3 children have been fortunate enough to go to an outstanding primary & secondary schools. Only due to a promotion last year I’ve been in a position to finally buy something, as I’m a single mum. But I’m in two minds whether to buy a flat here, or wait 2.5 more years until my youngest goes off to Uni and move back to North Wales where I grew up, still have family & friends (including one of my adult son’s) there and I can buy a 3/4 bed detached for same cost as a flat here. Job wise I can join our Liverpool branch, 45 mins drive and only 2 days per week in office. Feels like a no brainer but I absolutely love living here in CR3. I’m going in circles with it all. But I keep looking, hence I know the prices have definitely dropped and some flats have been on RM for months and months

So around 325k I think those flats were that dropped. So around 7.5%. Think they dropped in 2 drops rather than from 325 - 300 straight away. I’m going to start writing the prices down of ones I quite like the look of - see how much they drop by

My parents recently sold their house in west London. It was a 3 bed mid terraced house with loft conversion and extension with drive for 2 cars . They ended up having to sell it for a lot lower than expected. At least 5 years ago it was worth more than what they sold it for. Back then it was a very sought after area and houses sold like hot cakes and hardly any houses went on the market. They wanted to move out of London and be closer to me and the grand kids. Also they are both getting on a bit now so it was now or never. So they just accepted the offer after being on the market for a year with no real interest and a lot of reducing the price. I think if they decided to sell when stamp duty was removed, they probably would have got £100k more for the house.

Thats a good idea to start noting the prices of ones you’re interested in to see what happens to them.

Do you think they were reasonably priced to begin with and aren't selling? Or are they "optimistically" priced?

We are in CR4 and our neighbours recently sold their house (not flat) after it had been hanging around for a while because they knocked 25k off the price (475k down to 450k). It sold within days of them dropping the price. DH and i both said at the time it went on the market that we thought 475k was pretty punchy. But I wonder to what extent people havent adjusted to the current state of the property market so are still maybe being a bit over optimistic on pricing, rather than pricing realistically?

I’m looking at houses mainly - smaller terraces, rather than massive ones - maybe that’s why nothing feels cheaper?

Although, having said that, I saw a 900sq ft flat listed as “under offer” and it had been on at a million!!! We sold a 1000sq ft garden flat in the same area for £850k two years ago.

Are the listing prices just higher and people are offering less? It definitely looks like a price rise on the surface. I assumed it was the Bank of Mum and Dad keeping prices afloat.

Making me want to quit London altogether, to be honest.

No falling round here (SW London). Steady I'd say. Houses still go pretty quick as leafy area with good schools. Rentals are very quickly snapped up.

Just sold a flat in SE London, for about 10% less than it would have been worth a year or two ago. Am leaving London all together and have just accepted I won’t make as much money as I’d hoped and keen to just get out tbh.

Prices did really spike of course during the stamp duty holiday as it created an artificial sense of panic to buy.

I think they are reverting now to the prices they were before the stamp duty holiday peak (in most areas).

Yeah I bought it at the wrong time (2018) and am selling at the wrong time (now) so despite putting in a brand new kitchen and bathroom and extension in the time I’ve been here, I’ve had to sell it for what I bought it for. A shame but my fault for buying and selling a the wrong points of the market!

Where I’m moving to (not London) prices are going crazy with lots of stuff going for a lot over asking, so it goes feel quite London specific. I guess post Covid people are leaving London (like me) and there’s less demand.

The most accurate statistics look at the price at completion, not the asking price.

But remember the property market isn't even. Highly desirable properties rarely track the market down. Most of the decrease in the average price is born by the least desirable properties. The big swings in price are at the bottom end of each market segment.

Aw, well not really your fault. Most of us just buy & sell as it suits our lives and it’s just luck or bad luck whether it turns out to be a good deal financially or not.

You’re moving on with your life anyway and that’s the best approach