London House-Price crash

Rudi Hedman said:
I don’t see why people want to live close to London in a flat anyway. I understand in previous decades because people went out and socialised, but now, may as well live anywhere, especially with remote working. Demand means people will live all over in reality but sod London now. Many people living in areas to be among other professionals who they don’t ever mix with so they can quote the Hamlet they live in to other non Londoners and feel they fit in.
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There's no shortage of people wanting to live in London - you just have to look at demand for rental properties to know that.

These new-build blocks were historically overwhelmingly sold to overseas investors who would rent them to tenants - seems to be a major lack of investor demand these days.
 
CPFCSaturn said:
There's no shortage of people wanting to live in London - you just have to look at demand for rental properties to know that.

These new-build blocks were historically overwhelmingly sold to overseas investors who would rent them to tenants - seems to be a major lack of investor demand these days.
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With the stock market showing extremely heavy gains and the paper work is childishly simple no wonder. Up over 21% last year plus an average dividend yield of 3.7% and gaining daily this year,no wonder.Anything defence related is leading the way.
 
beak said:
With the stock market showing extremely heavy gains and the paper work is childishly simple no wonder. Up over 21% last year plus an average dividend yield of 3.7% and gaining daily this year,no wonder.Anything defence related is leading the way.
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Yep, I just don't think London off-plan buy-to-lets stack up as an investment anymore; you're lucky to hit a 5% gross yield, unlikely to ever see much appreciation in value, minefield of legislation and laws, huge risk of bad tenancies with little protection.

As you say, with other investment options also performing so much more attractively... it's not surprising.
 
CPFCSaturn said:
Yep, I just don't think London off-plan buy-to-lets stack up as an investment anymore; you're lucky to hit a 5% gross yield, unlikely to ever see much appreciation in value, minefield of legislation and laws, huge risk of bad tenancies with little protection.

As you say, with other investment options also performing so much more attractively... it's not surprising.
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Wealth warning the bubble will burst we don't know when but after April tax year end would be a historically good to suggest point.
 
Welsh house prices starting going up a few years back when people were buying second homes for holidays and to rent out.
The Welsh Government started taxing second homes in a big way, so people are trying to sell. trouble is , the prices are still too high for local people to afford. Youngsters struggle to get a mortgage , largely because the initial deposits are so high, and banks are more selective over who to give mortgages to. There are many English who bought cheap holiday lets in Wales, who are struggling to sell, because they expect property values to keep rising. Well, prices are largely static in rural Wales.
 
Forest Hillbilly said:
Welsh house prices starting going up a few years back when people were buying second homes for holidays and to rent out.
The Welsh Government started taxing second homes in a big way, so people are trying to sell. trouble is , the prices are still too high for local people to afford. Youngsters struggle to get a mortgage , largely because the initial deposits are so high, and banks are more selective over who to give mortgages to. There are many English who bought cheap holiday lets in Wales, who are struggling to sell, because they expect property values to keep rising. Well, prices are largely static in rural Wales.
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Labour could play a blinder here. If they changed the rules on IHT to allow people to bequest the mortgage deposit direct to the building society of the young person. I can't imagine it would cost that much in the way of lost tax and would unlock the pressure on those looking to buy.

Asset rich income poor grandparents? They would pay the deposit with some form of equity loan from the building society.
 
In the land of the blind, the one eyed man is King. An Eagle above mentioned how 'prices in Wales are static'. That's actually brilliant compared to the crash elsewhere.

and in other news........
Regulatory changes. They are causing a ton of landlords to dump their properties. A fire-sale onto the market. Its genius from Keir. Bringing in these changes just as the market was getting wobbly anyway.

www.mortgagestrategy.co.uk

'Thousands of smaller landlords set to sell up in 2026'

Thousands of UK landlords are expected to leave the private rental sector in 2026, according to property purchasing firm LandlordBuyer. The firm said that
www.mortgagestrategy.co.uk www.mortgagestrategy.co.uk
 
PalazioVecchio said:
In the land of the blind, the one eyed man is King. An Eagle above mentioned how 'prices in Wales are static'. That's actually brilliant compared to the crash elsewhere.

and in other news........
Regulatory changes. They are causing a ton of landlords to dump their properties. A fire-sale onto the market. Its genius from Keir. Bringing in these changes just as the market was getting wobbly anyway.

www.mortgagestrategy.co.uk

'Thousands of smaller landlords set to sell up in 2026'

Thousands of UK landlords are expected to leave the private rental sector in 2026, according to property purchasing firm LandlordBuyer. The firm said that
www.mortgagestrategy.co.uk www.mortgagestrategy.co.uk
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Property prices coming down is a good thing for a large percentage of the population - the houses don't disappear when landlords sell up.

I don't think the new legislation is very good on average, but it reducing values by a few percent is not a primary concern.
 
Badger11 said:
A friend is an IFA she tells me her clients who have second homes are dumping them en masse so she expects house prices to fall in the first part of the year.
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Its a sign that the crash is coming . House prices will fall but they won't fall enough to encourage buyers .Second home owners who likely had buy to let mortgages on very low or even 0% will find the new rates taking all their profits and some .That means higher rents or as your friend is doing selling up . That particular investment is no longer a 'payer'
New builds will have to fall as well to be competitive but the new prices wont cover the cost of building them ,Builders will stop building what they cant sell ,contractors will fold rather than go into debt and the game will be up .

Foreign investment groups with 100 + year plans will buy up all the property on the cheap and everyone will be renting , for ever .

You will own nothing and be happy .
 
Dogburger said:
Its a sign that the crash is coming . House prices will fall but they won't fall enough to encourage buyers .Second home owners who likely had buy to let mortgages on very low or even 0% will find the new rates taking all their profits and some .That means higher rents or as your friend is doing selling up . That particular investment is no longer a 'payer'
New builds will have to fall as well to be competitive but the new prices wont cover the cost of building them ,Builders will stop building what they cant sell ,contractors will fold rather than go into debt and the game will be up .

Foreign investment groups with 100 + year plans will buy up all the property on the cheap and everyone will be renting , for ever .

You will own nothing and be happy .
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So no activity and no price movement after a minor drop is your prediction?
 
CPFCSaturn said:
It's a market; I think prices will continue to drop until things sell.
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the 1989 price-slide continued downward for ages. There were No capital gains for another 8 years.
I believe the 08 crash was with a faster recovery but it was a much steeper fall - most of the 08 property crash was invisible. Cos a spectacular fall in the value of Sterling hid it (the property crash) from most eejits.

Sterling fell sharply on the day of the Brexit vote - and never really recovered. Therefore Sterling is unlikely to fall a ton again. Therefore this new price crash does not have the safety net of Sterling falling again. So house-prices must take the brunt of the impact.

We are back to the Era of Negative Equity & handing the house-keys back to your mortgage provider.

i would not buy London property until 2031 at the earliest.


 
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