Talk Morgan Forums Community The Malvern Arms UK Property Prices ....

How accurate is this report?
London Property Prices Falling

Hardly a ‘crash’. Attention grabbing headline.

I recommend The Anti-Clickbait Society, a Facebook Group where members repost stuff like this but with a summary of the actual story.

It sounded a bit dramatic, but like all downturns, it may present some good opportunities......
Hard to assess what is real!

It's another trend or phase in the house market. During and post Covid there was a massive shift from the urban conurbations, with their often stifling density of population to seek more open less crowded locations especially near the coast or in the countryside. However, one does tend to have less infrastructure eg
public transport, facilities like upmarket schools and shops and of course more limited entertainment choices out in the sticks away from the likes of London. The impact locally of London house money coming into an area, increases the purchasing power of the buyer and they can get far more property compared to a city centre location. End result competition for prime spots forces house prices to sky rocket locally.

However, once the rose tinted glasses fall away, and the lack of choice and variety wears thin, I'm increasingly seeing more press articles that many now miss the city way of life and want to return. The only problem is that the potential market of buyers for their over inflated house price is now much thinner on the ground, and so local house prices start to fall for the once highly sought after properties. Some are finding this a painful experience, a few are trapped by the current state of the local house market as they now can't afford to sell up. having paid too much in the first place and return. Locally we had seen some of the prime property prices double and treble post Covid, but those properties are now sticking on the market as the number of prospective buyers at these over hyped prices are getting fewer and far between, as the demand for such houses falls back to the more realistic demand levels that existed pre Covid.

An interesting assessment.Thank you John

Falling prices indicate a decrease in demand and/or an increase in supply, either one of which is a bloody good thing if you ask me.

Locally its a mix of both falling demand at certain price points and more local supply especially new housing estates being built. What the longer term effect will be has yet to be seen, although the new builds are more energy efficient, their build quality is pretty poor and once outside the 10 year guarantee may become money pits to maintain. especially in the harsher coastal marine environment around here.

I agree.

I have just sold my place with the intention of downsizing. I had a buyer for mine quickly and a new high price for my house design of which there are 7-8 others of the same design on the road.

My buyers lost their buyer due to a concern over interest rates and risk of the employment market becoming tight in the next few years. They have done a great job in getting it back moving again. It would appear the established and larger end of the market is moving but the chains have weak roots speaking to my solicitor. Properties which are more marginal (flood risk or other fears) are taking a bashing on price. Also the difference between asking price and what they are changing hands for is becoming daft. A quite decent house near me was put up for £800k and exchanged hands for £720k and this seems to be becoming common.

Ahh days of old, oh god, take me out and shoot me now....

The doubling of Council tax is certainly having an impact in some areas - lots of second home owner property on the market in Somerset and to a degree in Dorset. By putting it on the market they get normal rates for a year. I guess it is having the desired effect for some Councils.- freeing up houses for locals ?
However like most government/Local council actions people can find a way round (not going to say friends) who have ‘transferred ownership’ to a son and a couple who decoupled (aka separated, registered on the electoral register and got round it !!
Best regards MM
PS Trust everyone is enjoying top down weather.