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UK Home Prices Have Biggest August Plunge On Record As Russian Sanctions Sink In
London home prices fell in August by 5.9%, the plunge the biggest since Dec 2007 (and 2nd biggest drop on record). Since western sanctions on Russian oligarchs hit 3 months ago, home prices have fallen in London (especially the highest-end regions, such as Kensington -7%) and now that weakness is accelerating and spreading across the entire UK. As Rightmove reports, the 2.9% drop in UK home prices is the worst August on record. How long before the UK pulls back on its 'support' for US sanctions? Costs, indeed?
Since sanctions began, London property prices have dropped with August's plunge almost a record...
But it is now spreading across the UK with August's weakness the worst on record...
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It appears the oligarchs are preferring the Hong Kong market to London's...
Charts: Bloomberg
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Blowback's a bitch, and so is the UK.
now this takes it to another level the term EXCUSE ... sanctions are not even couple of weeks old and they had this great impact on the market ... right I believe you, just show me a computer chart
The sanctions have been coming for a while, even if you leave your money on the table any Russians might have thought twice about putting more on. Rosneft is hurting too. Trade benefits both parties or it wouldn't occur, so sanctions will harm you and your enemy.
I'm sure this is meant as a distraction on both sides of the NATO/Warsaw Pact split so when their respective economies collapse the national governments can blame the other guy. A desperate Russia/USA will be just as dangerous (if not more so) than a reperation hit Germany.
When trade doesn't cross borders, troops do.
Which is why sanctions and embargo's, are Acts of War.
Something Washington has forgotten.
Well, at least there should be plenty to eat.
Europe pays farmers to destroy food -
The latest: Farmers in Europe will be paid to destroy or give away fruit and vegetables to stop prices from collapsing after Russia banned imports in retaliation for Western sanctions.
Blow back a bitch, bitchez!
Uk/Ukies, what's the difference? They are both Fascist regimes.
Sex Pistols, God save the Queen:
https://www.youtube.com/watch?v=dtUH2YSFlVU
Or something Washington remembers all too well.
Sure it's an excuse, they will use anything they can to divert attention elsewhere, but rest assured, the sanctions on Russia have backfired. Russian's have a knack for digging in, I know this very well, they will gladly endure more pain (considering where they have been) and it's impact will be minimal. Do you know any Russians? They are very resourceful, hard headed, stoic, and they are with Putin on this. Europe is a conquered 'state', it's leaders are obedient, and I think they will be having some very big issues with their denizens shortly, starting in the Ukraine, followed by Greece, then maybe Spain...
ok so 5.9% off the all time high... yawn....
They aren't coming back huggy.
Maybe the Chinese can fill the void but they prefer Kalifornia, it
being communist and all. No miserable climate to contend with either,
which is why I, and millions of other expats are not living in the UK.
"All Bubbles ultimately meet the Royal Pin Tip."
~ Old Proverb
The world is splintering with Asia as a New Paradigm separate from Europe and USA.....besides Chinese troops are now probing India to see how the US reacts. USA will need to face the prospect of a two-front war as they feared under Plan Orange with Britiain and Japan attacking in the 1920s
If you bought into the whole BRICS ideal, China is simply probing India to see how India reacts. Within BRICS, there will be gamesmanship to see who has the strong hand, and where their place is in the pecking order.
Russia will end up at the bottom as they are not playing their cards properly. They assume they have the claim on the top spot in the pecking order. China rightfully has that spot. Any action between China and India will result in India placing demands on Russia for support. Those demands will not be heeded. That act will show the world that Russia cannot parlez anything of significance within BRICS as they do not command the stature needed to hold court. India will then assume second place to China, as the world ignores Russia.
Brazil will not play second banana to Russia, especially after Russia has been played. Hence, Russia ends up on the bottom.
Maybe the Chinese can fill the void but they prefer Kalifornia, it being communist and all.
As a resident I can tell you this is bullshit. Sure Jerry Brown will get 58% in Nov. That's because the CA GOP is dead. Beyond that the other 42% love the weather and hate the gerrymandered political cesspool. Maybe we'd still be a majority if Regan hadn't sold us out with the 86 amnesty and NAFTA hadn't butt raped so many Mexican workers.
BTFD!
Just had a look at my local area, some one should tell the local estate agents, as they seem not to have heard.
I am in the market to buy, but definately not at these crazy prices.
Two bed townhouse in a run down area, offers in exess of £150,000 or us$252,000
comeplete madness in a very small market town in the east midlands...Sheesh!!
Two beds, having an argument with the misses ?
Just another 45% minimum to start getting to realistic UK house prices.
No worries our Builders are CONfident...
Looks like Chancellor Osborne's 2015 election bribe may have peaked too soon.
Time for Putin to go bunker bunker. Oligarch about to target oligarch.
YeeeeeeeeHaaaaaaaaa.
The NSA has too much dirt on the pedophillic British politicians for them to not rollover and obey their masters in the land of the free.
British politicians all slept with each other at school long before they married beards
Only the old Etonians.
how's the condo real estate mkt in Florida; the Russian billionaire enclave Miami-Sunny Isles Beach area
zubbi dubbi duubi condo for $ 2 Million flipped no id, cash, DA!
There's no problem which cannot be covered with printing more money.
And that's true for problems created by irresponsible money printing
Your move Carney.
Thanks for showing up. Back to the land of maple syrup and hockey pucks you go.
Oh and that must mean the magical GDP number must be inline to get revised down 2.9% then.
What would that make it,
Recession, Deep recession, depression or just slump
Oh boy! I have been waiting for this. Rich Russians have been using London and SE England as a home for their fabulous wealth since the 90's. This trend has grown as more and more Russians join the rich elites. I have seen first hand in London how the Russian 1% live, love, play and spend!
Any fears by Russians that Cameron the "ass clown" will keep sucking Obama's dick and keep attacking Russians who want to spend and buy in the UK, will only take billions OUT OF the property markets. The prices have been so distorted by the 1% with unlimted fiat and their finger tips, London RE is on a different planet. I dream of those fucks seeing property crash. And all the expensive High Rises built on speculation along the Thames, well I'de love to see those prices crash hard!
I am just a bitter 99%'er who can't afford London anymore!
Let us be honest. You are just dumb.
"And all the expensive High Rises built on speculation along the Thames, well I'de love to see those prices crash hard!"
All these things you mention Jack have one thing in common, St' George, with the flag of England as an emblem, being picky as I am I went looking to see what these properties had in common, ALL ALONG THE EMBANKMENT. They were under a lease, and people kept saying Duke of Westminster, you know the Chap in charge of the Dukedom (Decendent of Billy the Conqueror of 1066 and all that), and POORER than the Queen, ALLEGEDLY.
Now I don't know how true these thing are, but I bet the Duke would not want to lose all these mugs that turn up in London and either Rent long term (Leasehold buying) or to actually rent.
Au revoir, money. It's flying Eastwards like a majestic wild goose (of the golden egg sort) migration...
Let me say for the regular markets too, people have gone to the upper limits of sanity to leverage up on the real estate play in England. Middle Class and starter families have bet all their future income for the next 40-50 years that their RE play will return future equity. It is hard to explain how badly and how many people would be destroyed by any price drops or even any slowing in price rises! They are also subject to disaster if Interest Rates rise in any significant way.
People who bought in recently, are sitting on a razor blade edge, ready to tumble into Bankruptcy at the slightest nudge. And may I say, Government in the UK has done all it can to encourage these people, even funding their down payments! Cameron bet that he could blow an epic wealth effect housing bubble across the UK, that would return so much equity to familes that they would spend like mad in the consumer markets and this wealth effect would spur the UK into growth. WORNG! Cameron you feeble cunt!
The Home counties you mean Jack.
Not much of a bubble once you're outside them.
Just glad I sold our house there last year.
I can remember the bubble and burst of UK housing all the way back to the 1970's.
Long overdue for a slump.
Indeed. I should have said SE England.
Looking forward to the groupon daily deal of riverside London apartments.