UK house prices

[Mega]

http://www.housepricecrash.co.uk/for...nty-telegraph/

[llanlad2]

Re: UK house prices

Since the original 2007 peak I stated there wasn't going to be a precipitous decline in the UK equivalent to Spain,Ireland and the US due to the supply constraints in the UK, the rental market and low interest environment. The Euro safe haven thing has also played out to protect the UK market somewhat.

House prices are now pretty much above the previous peaks in lots of the country now. I am certain the high end market has topped especially following all the London safe haven extravagance that went on. The smart money (eg Duke of Westminster) sold out his central London holdings this last year. Rental yields have also dropped significantly as a result of rising house prices in the last year. This means the booming buy to let market will be peaking as well. There is also more political will behind housebuilding in the UK to relieve the supply issue which will have a real impact in the future but effect sentiment now.

So all in all Mega, I think yep , after all the previous UK house price crash calls , the second top may well be in even without the added negative of an interest rate rise. Not until wages rise will house prices go up again. However I think any crash will be short lived as a crash means the rental yields look favourable again for those with cash to buy. And yield is what everyone is chasing in this Zirp world.

[touchring]

Re: UK house prices

Since the original 2007 peak I stated there wasn't going to be a precipitous decline in the UK equivalent to Spain,Ireland and the US due to the supply constraints in the UK, the rental market and low interest environment. The Euro safe haven thing has also played out to protect the UK market somewhat.

House prices are now pretty much above the previous peaks in lots of the country now. I am certain the high end market has topped especially following all the London safe haven extravagance that went on. The smart money (eg Duke of Westminster) sold out his central London holdings this last year. Rental yields have also dropped significantly as a result of rising house prices in the last year. This means the booming buy to let market will be peaking as well. There is also more political will behind housebuilding in the UK to relieve the supply issue which will have a real impact in the future but effect sentiment now.

So all in all Mega, I think yep , after all the previous UK house price crash calls , the second top may well be in even without the added negative of an interest rate rise. Not until wages rise will house prices go up again. However I think any crash will be short lived as a crash means the rental yields look favourable again for those with cash to buy. And yield is what everyone is chasing in this Zirp world.

I have the perception that there's a lot of Russian money going into London properties.

Singapore and Hong Kong real estate markets attract Asian money (from China, Indonesia, Thailand, etc). I've not seen much of Russians here or any East European. But this might slowly change with the current situation in Ukraine.