What do readers think will happen to London house prices?
1:53 PM, 3rd December 2015, 10 years ago
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Due to the recent changes in Stamp Duty and mortgage interest tax relief how does everyone think they will effect London house prices?
I have limited my question to London, because Buy to Let purchases are a very significant proportion of the market.
I can see stagnation at best and most likely a fall coming.
Interested to hear your thoughts.
Chuck
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Member Since February 2011 - Comments: 3454 - Articles: 286
1:56 PM, 3rd December 2015, About 10 years ago
Hi Chuck,
Don’t forget measures to assist owner occupiers and first time buyers such as Help to Buy, Shared Ownership and RTB will have an inflationary pressure as well as the deflationary pressure you mention above.
Member Since January 2011 - Comments: 12217 - Articles: 1412
10:58 PM, 3rd December 2015, About 10 years ago
The new measures will possibly slow down new building construction but that will only serve to increase demand and hence prices.
If BTL investors sell to owner occupiers this will have inflationary pressure on rents.
Member Since August 2015 - Comments: 287
10:43 AM, 4th December 2015, About 10 years ago
I am quite sure that some of the new build apartments sold off plan to Chinese investors will be seen to have been a bit toppy price wise sometime in the future
£2m+ market is slowing just now in volume terms and I think there will be stagnation there at best for the next 6 – 12 months
Other than that, I don’t see anything other than strong demand supporting prices at current levels just now. I don’t see the rate of price increases of the last couple of years being maintained, but I don’t see huge falls coming any time soon either
I don’t see yields / rents going up by much above inflation in the coming year or two.
I wouldn’t be surprised to be wrong
Member Since April 2014 - Comments: 306
12:32 PM, 4th December 2015, About 10 years ago
Savills prediction for London in 2016 & 2017 is flatline
See link
http://www.thisismoney.co.uk/money/mortgageshome/article-2734697/House-prices-rise-25-7-2018-Savills-predicts.html
Member Since February 2011 - Comments: 3454 - Articles: 286
12:46 PM, 4th December 2015, About 10 years ago
Halifax has forecast that house prices will grow by 4-6 per cent in 2016, as the increasing difficulty in getting on the housing ladder and the prospect of a rate rise begin to put the brakes the market.
In 2015, activity levels have remained modest by historical standard, the lender says. A continuing shortage of supply is likely to continue to act as a significant constraint on activity in 2016.
Price growth is expected to slow more sharply in London than elsewhere. All regions are expected to experience price rises in 2016.
House price growth is expected to be broadly in line with income growth beyond 2016.
Member Since September 2013 - Comments: 771
9:03 AM, 5th December 2015, About 10 years ago
Seeing most of London is now owned by Foriegn investors the prime area will still be in demand. Stil much will just be left as empty blocks.
Unless something happens in other rich countries to stem the flow of investment I dont think London prices will drop.
All the stupid government schemes to pass the debt onto home owners will prop up the market and hold the price.