London Housing Market Suffers Worst Collapse Since Financial Crisis

Tyler Durden's picture

At the end of 2016 we reported that the formerly invincible London home market had suffered its biggest crack in years, when home prices plunged the most in six years according to Rightmove. Asking prices in London dropped 4.3% in December with inner London down 6%.  Meanwhile, the most exclusive neighborhoods, like Kensington and Chelsea, recorded even sharper declines at nearly 10% as home buyers migrated to cheaper areas of the city.

While it was unclear what was the catalyst: whether post-Brexit nerves, China's crackdown on capital outflows, the ongoing depressed commodity market, or reduced migrations by wealthy Russian and Arab oligarchs, what is obvious is that the slump has continued, and according to the Royal Institution of Chartered Surveyors, its price balance for the city fell to the lowest since February 2009 last month, plunging to minus 49, which means that a greater percentage of agents reported drops in March.

Still, as Bloomberg reports, more respondents than not still expect prices in London to rise over the next year, the report showed. they may be disappointed.

Speaking to Bloomberg, Samuel Tombs at Pantheon Macroeconomics said that the London measure tends to represent the prime market rather than the city as a whole. The slump in the gauge tallies with other reports of sellers in central London having to cut prices to close deals.  Nationally, the RICS price index stayed at 22 in March, though the expectations for both values and sales over the next year weakened. New buyer inquiries and sales were stagnant, with the most expensive properties among the worst performers, according to report.

While buyers - especially those relying on mortgages - remain largely locked out of the market because of high prices, nervousness about Brexit and the U.K. outlook, price downside according to realtors may be "limited because of the continued shortage in the supply of property to buy, with estate agents’ listings reportedly at a record low."

Which is odd because a cursory check reveals not only that there is a glut of high end properties, many of which have been on the market as long as a year, but that despite huge discounts as high as 40%, nothing is moving, and just this one listing service has no less than 124 pages of properties - at 15 properties per page - with price declines in Kensington and Chelsea alone, up from "only" 53 pages when we last looked at the same website back in December.

“High end sale properties in central London remain under pressure, while the wider residential market continues to be underpinned by a lack of stock,” said Simon Rubinsohn, RICS chief economist. “For the time being it is hard to see any major impetus for change in the market, something also being reflected in the flat trend in transaction levels.”

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Bill of Rights's picture

No one in Londonstan can afford homes . Bring on the Clay Huts.

kliguy38's picture

No one could see this coming......

MarsInScorpio's picture

Another "unintended consequence" of "unplanned immigration."

Dear Brits in London (the few that still exist): E S & D.

evoila's picture

It will get only worse as the banks start moving to Germany and France.

ZeroPointOn's picture
ZeroPointOn (not verified) evoila Apr 16, 2017 5:13 AM

I'm making over $7k a month working part time. I kept hearing other people tell me how much money they can make online so I decided to look into it. Well, it was all true and has totally changed my life. This is what I do... http://bit.ly/2jdTzrM

chubbar's picture

Ever dawn on any of these retards that maybe everyone that has any significant money has already bought a house? How many multimillioinaires are these idiots figuring are wandering around?

Raffie's picture

Give all the muzzies the houses, problem solved.

They gave them everything else, why not the houses.

 

*sarcasm implied*

orangegeek's picture

too many goat fuckers in London

TheSilentMajority's picture

Prices still out of reach for most UK citizens.

Uncontrolled immigration 101.

hooligan2009's picture

still 50% overpriced for the quality and space - same with the shitty hotels. you need to get to park lane and mayfair for anything liek a decent hotel

maybe they should convert the 20% vacancy rate of central office space into residential and do everybody a favor

http://www.lfpress.com/2017/03/30/tech-boom-could-finally-cut-londons-hi...

Xando's picture

It's the English bugging out of Londonistan. Who wants to live in a foreign country?

flaminratzazz's picture

leave country, denounce citizenship..return as refugee..get tons of free shit..problem solved.

grow beard, fvk goats. whoreship mohammad..shit in streets, cut out clits, stone to death your sister for getting raped. kill the infidel..rape some young boys..sell 7 yo girls into slavery..Build mud hut..insert lip disc.. rape babies to rid one's self of aids..eat some monkey brains from a live monkey

it's all good.

HRH Feant's picture
HRH Feant (not verified) Apr 15, 2017 5:37 PM

Who the fuck wants to live in a city with a Muslim mayor that has residents running around wearing bin bags? Answer? No one that is intelligent.

Memedada's picture

What city? What mayor? The "City of London"? The "Lord Mayor"? He is not "Muslim" (or elected - but selected. Like US inc. The origin of your indoctrination).

The City of London is the property "market" (among many other "markets"/Ponzies) and a big deep state player. They've participated in sponsoring the indoctrination of you and I'm sure they're happy with the result (your misguided attention and irrelevant focus).

Fake Trump's picture

Who want to live in the US with a war criminal president.

Fake Trump's picture

Who want to live in the US with a war criminal president.

FredGSanford.'s picture

A Flat in London is 500 pounds and 25 quid.

Houses Depreciate's picture

This is a mere blip on the radar compared to the just emerging housing correction in the US.

Sudden Debt's picture

the can blame brexit and not the fact that housing rose due to capital flight into England from the middle east.

 

dojufitz's picture

Borrow as much as you can.....sign your name Muhammad.....

leave.......there will be 3,000,000 suspects with the same name......

they will never find you......

Iconoclast's picture

Prices in the S.E. of the U.K. have risen by circa 65% since 2010, it's fucking deranged. A correction of circa 30-35% takes it back to where it was. That's baked in IMHO. 4 bed terraces in parts of east fucking London are costing £1 million, they were 50 grand 28 years back.

c2nnib2l's picture

shit is about to hit the FAN 

Hammond have not included Crossrail 2 in the budget for the next year. Which means all those properties around it which developers were trying to finish over the last 3 years will drop in value at least 30% if not more. Plus all people from London that recently moved out hopeing that Crossrail 2 will happen are already cutting their veins. 

 

Happy days ! :D Brexit just behind the corner. Migrants leving. Food prices going up ! houses going down ! companies leaving CRISIS CRISIS CRISIS ! 

flaminratzazz's picture

Time to break out the Pete Seeger album and listen to "Where Have All the Flowers Gone?"

Drink the electric wine and drop out..

daMN it ..wrong thread

 

 

Guderian's picture

The first of banks to leave Londonabad for the continent because Brexit will give the signal to the Irish phenomenon to overwhelm England:

FULL SCALE COLLAPSE

only there won't be no bailout by the EU.

It will be banx to mosques, stadiums to madrassas and whiteys homes to pakis breeding holes.

My beer will be well cooled and my chips crispy and spicy, when SHTF -on my haciendy in Paraguay.

Fake Trump's picture

Next will be Australia and Hong Kong 

Last of the Middle Class's picture

Ever note how every rating that has anything to do with the economy in the free world is on some sort of meaningless scale, the likes of which nobody out side some close circle of friends has any fucking idea what it really means? OMG, it's at minus 49! That's terrible. It's like the reading populace cannot interpret any real numbers, so therefore, we must make a scale to interpret the numbers for them. Macroeconomic seamen ejaculated into the mouths of a populace too stupid to think for themselves. Liberal colleges have done their work.

Funn3r's picture

Prices in London are at defcon nosebleed because of ZIRP and because of dirty oligarch money. That's it. Nothing to do with immigrants, muslims, goats, space aliens. Let's make ZH un-idiotic again.

Megaton Jim's picture

Jump, you Limey Jew bastards!

Silver Savior's picture

Good. The housing industry and everyone involved in it needs a financial crisis. The high cost of housing is like stealing from the people legally.

katagorikal's picture

Your big bosses in the City, and top bureaucrats in Westminster, are paying you your salary, then taking most of it back in rent as your landlord in BTL suburbia. They are giving you your cake, then eating it themselves!