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London House Prices Surpass 500,000 Pounds for the First Time

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    London House Prices Surpass 500,000 Pounds for the First Time

    London House Prices Surpass 500,000 Pounds for the First Time

    Anyone popping the champaign here?

    I wondered through Canary Wharf the previous 2 days (looking to rent a prop, don't ask) and I think half of the properties are empty.
    If you look at the large block of flats there aren't that many lights at night.
    Nevertheless agents don't seem to want to talk discounts. On openrent people seem very condescending...

    My questions is... who pays for all those empty properties? How does this work?
    How do they afford to keep them empty and are not concerned about the market...?

    London House Prices Surpass 500,000 Pounds for the First Time
    ANDREW ATKINSON
    (Bloomberg) -- The average home in London climbed above 500,000 pounds ($685,000) for the first time, bringing cheer to homeowners and piling on the misery for those increasingly priced out of the market.

    Values in the U.K. capital were 9.7% higher in November than a year earlier, a surge matched only by Yorkshire and The Humber in northern England, according to Land Registry figures published by the Office for National Statistics on Wednesday. At 513,997 pounds on average, prices in London are now more than double the national level.

    The increase coincided with the coronavirus crisis, which plunged the economy into its deepest slump in three centuries. That has widened the gulf between young people unable to afford the down payment on a home and older generations who have benefited from decades of rising values.

    London House Prices Surpass 500,000 Pounds for the First Time
    London House Prices Surpass 500,000 Pounds for the First Time
    Driving the surge this year were factors including pent-up demand following the first national lockdown in the spring and a tax cut on homebuying worth as much as 15,000 pounds. The stamp-duty holiday, which began in July, is due to expire at the end of March.

    Prices in inner London grew more quickly than those in outer boroughs. Kensington and Chelsea -- the U.K.’s most expensive district -- and Brent both recorded increases of more 20%. That’s despite increasing number of city dwellers moving out to places with more green space in response to the pandemic and changing work patterns.

    “Demand for property in inner London may be particularly responsive to temporary property tax changes as property prices are high and therefore so is the corresponding tax to be paid,” the ONS said. “In addition, compared with other regions of the U.K., London has a relatively high proportion of properties bought for investment, including from cash buyers and overseas investors.”

    Demand for inner London may increase further in the short term as nonresidents seek to snap up property ahead of a property-tax increase set to be introduced in April. A new route to U.K. citizenship for British Nationals Overseas in Hong Kong may also fuel demand, the ONS said.

    #2
    As it's an average that could also mean that there are some extremely high value properties skewing the value to the right. This is very likely to be true.

    A more useful measure would be the mode.

    Comment


      #3
      Originally posted by GigiBronz View Post
      London House Prices Surpass 500,000 Pounds for the First Time

      Anyone popping the champaign here?

      I wondered through Canary Wharf the previous 2 days (looking to rent a prop, don't ask) and I think half of the properties are empty.
      If you look at the large block of flats there aren't that many lights at night.
      Nevertheless agents don't seem to want to talk discounts. On openrent people seem very condescending...

      My questions is... who pays for all those empty properties? How does this work?
      How do they afford to keep them empty and are not concerned about the market...?
      I read somewhere a while back that Chinese investors were willing to pay a decent premium for a property that had never been lived in. Keeping it empty was therefore potentially more profitable than renting it.
      His heart is in the right place - shame we can't say the same about his brain...

      Comment


        #4
        Originally posted by Mordac View Post
        I read somewhere a while back that Chinese investors were willing to pay a decent premium for a property that had never been lived in. Keeping it empty was therefore potentially more profitable than renting it.
        Claiming losses every year what they could have earned in rent?

        Comment


          #5
          Originally posted by GigiBronz View Post
          Claiming losses every year what they could have earned in rent?
          I don't think it is that (not wholly, anyway). I believe, based on something a friend who had a Chinese colleague told me, it's more cultural.

          Comment


            #6
            It’s investors who bought it without visiting and can’t sell now because only an idiot would want to live in a tiny London high rise flat.

            Any dwelling less than 100 sq meters should not be allowed for residential purposes, that’s for single bedroom places

            Comment


              #7
              Originally posted by GigiBronz View Post
              Claiming losses every year what they could have earned in rent?

              They believe the value is greater if the properties are new.

              FIL was an expert water pumps, he commissioned lots of them for tower buildings and he was regularly told most of the owners were Chinese and would never use the properties or only as holiday homes. There was a need to get money out of China.
              "If you didn't do anything that wasn't good for you it would be a very dull life. What are you gonna do? Everything that is pleasant in life is dangerous."

              I want to see the hand of history on his collar.

              Comment


                #8
                Chinese buy tulipcoins now to get money out

                Comment


                  #9
                  Originally posted by AtW View Post
                  It’s investors who bought it without visiting and can’t sell now because only an idiot would want to live in a bedsit above a kebab shop.

                  Any dwelling less than 100 sq meters should not be allowed for residential purposes
                  ...
                  Entropy is NOT what it used to be.
                  Inertia, however........................

                  Comment


                    #10
                    London House Prices Surpass 500,000 Pounds for the First Time

                    I live 10 min walk from CW is a posh gated 24hr Secuity (private swimming pool, snooker club etc)

                    Car park is ghost town, looks like 50% capacity, everyone is moving out as no longer need to go into the office for life

                    3k rentals are not £1800 rentals a month

                    Look forward for going for a beer with you [emoji4]

                    You can get a CW hotel for £30 a night at the moment why would you want to rent


                    Sent from my iPhone using Contractor UK Forum
                    Last edited by GhostofTarbera; 20 January 2021, 20:10.

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