House prices..
- Thread starter fendi
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I'm not sure where JohnnyG is talking about, but in Twickenham, TW1 there have been lots of price drops.
I'm keeping check of Rightmove and there are lots more places under £250K now than there were a few months back.
This is both in absolute numbers and as a proportion of the total properties available.
There are also a lot fewer places over £1m now as well.
When we were looking it was quite difficult to find a place under the 3% stamp duty threshold in a good condition and decent area, had we been looking now it does seem a far richer market in terms of choice going by all the usual sites
Ealing and Hillingdon, not too far from you I'd guess
Hillingdon is very close to me.
Ealing is a little farther away.
I'm surprised that Ealing, in particular, is showing price drops as this area has seen rapid rises over the last few years. Ealing Broadway has a lovely park, a great transportation network and whole bunch of shops, so it is an area that is bound to attract people, wanting to live/buy in London.
When we were looking it was quite difficult to find a place under the 3% stamp duty threshold in a good condition and decent area, had we been looking now it does seem a far richer market in terms of choice going by all the usual sites
Indeed, the figures are on a spreadsheet at home but I seem to recall that in February around 12% of properties in Twickenham were <£250K.
At the last check it was something like 16-17% I think.
is this only because there are more properties for sale in that area?? or have you noticed that these properties now under £250,000 where originally on for £260,000+??
The flat I'm selling is in Ealing and whilst it's still a good place to live and it's a great property, FTBs can't get the same sort of mortgages now so if you want to sell you pretty much have to lower the asking price to an amount they can lay their hands on and still be able to afford the council tax & maintenance charges etc.
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The issue isn't anything to do with the availability or suitability of property, there is plenty of suitable property sat empty - that has alreay been highlighted by other forum members several times now.
The issue is the availability of credit with which to buy this property. The demand is there, but the consumer confidence and credit is not.
This situation will not improve anytime soon either.
I do remember posting about this at the end of last year and got shot down in flames from a lot of people who'd rather bury their heads in the sand. I can't say I am happy that I was right, but it's interesting to see how fast the bubble is popping.
There will be more tears yet though, this has barely even started...
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Here's an idea, how about 3.5x verified income (no more self-cert mortgages please)? Sounds sensible to me, so it'll never catch on
It's not that sensible as affordability should be the determining factor so it might catch on after all
Someone earning £32k per annum could theoretically get a mortgage on my flat with a 25% deposit, that still doesn't mean they can afford to live in it
Someone earning £32k per annum could theoretically get a mortgage on my flat with a 25% deposit, that still doesn't mean they can afford to live in it
Soldato
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Around here, transactions for houses are falling through everywhere.
People are refusing to go through with deals unless sellers take 20 or 30 thousand off agreed sellign prices, so the market is virtually none existant, as very few are budging.
People are refusing to go through with deals unless sellers take 20 or 30 thousand off agreed sellign prices, so the market is virtually none existant, as very few are budging.
It's not that sensible as affordability should be the determining factor so it might catch on after all
Someone earning £32k per annum could theoretically get a mortgage on my flat with a 25% deposit, that still doesn't mean they can afford to live in it
Doesn't seem too bad to me, 75% of £140k is only £105k, standard 25 year mortgage would only be around £700/month barring any drastic changes in interest rates. £32k/year gives just under £2k/month take home and from what I've heard, once your accomodation is paid for, living in London isn't really as expensive as people make out.
I've been monitoring the market where we want to move to over the past 4 months. I've seen a couple of properties drop from around £235-240k to £225k.
The problem with new builds is that the developers are notoriously unflexible on price due to wanting to protect the value of their development - i.e. if they sell for £30k under asking price, everyone is gonna want the same discount. They need to protect the market value and to be honest the way the market is at the moment, I've discounted buying a house at the new build development we visited around 3 months ago. Nice houses but they just aren't realistic on price, whereas I suspect private sellers of vacant properties will be much more open to offers.
to right £165k for a 2 bed flat, new build are stupidly expensive and poorly built, partitioning so you can hear your neighbour fart.
I agree, but I was using it as a way of highlighting that just using income multipliers isn't necessarily the best way to gauge someone's ability to afford what they want to borrow.
My flat has a monthly maintenance charge of @£80 and a CT bill of @£1100 per annum so that's almost another £200 per month on top of a mortgage before you even factor in any utility bills or existing personal debt, the latter which is usually considered by the ML though
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Won't falling house prices = More demand which in turn = more inflation, so basically it will cancel its self out ?
There are more properties for sale, but as I mentioned in my post the proportion has increased as well.
I discovered Property Bee last week too and have noticed that prices are indeed dropping of various flats and houses too.
This is a graph showing the proportion of properties above £1m and below £250K, the top and bottom ends of the market around here.
As you can see the propertion over £1m has dropped off considerably since Feb and the proportion less than £250K has increased.