Brexit, Media Blamed As London House Prices Plunge Most Since 2009

After a decade of soaring prices, spurred on by hot money flows from Russia and China, London's 2017 property slowdown is accelerating in 2018 as Bloomberg reports house prices are falling at the fastest pace since the depths of the recession almost a decade ago, with the capital’s most expensive areas seeing the biggest declines.

Average prices fell 2.6% to 593,396 pounds ($820,000) in January, according to a report published by Acadata on Monday. That’s the most since August 2009.

London’s highest-priced boroughs were the biggest losers over the last year, while the largest single drop was recorded in Wandsworth, down almost 15 percent.

Wandsworth and Southwark are home to huge speculative property developments facing on to the River Thames – including the Battersea Power Station development – but the market for £1m-plus one-bed properties has shrivelled in recent years.

But, as Bloomberg reports, anecdotally it's considerably worse according to realtors:

Business has been slow in “a lot” of offices since the start of the year, though there are more deals being done in some central outlets, Simon Aldous, a director at Savills, said in a survey published last week by the Royal Institution of Chartered Surveyors.

Offers for homes are often more than 10 percent below asking prices, James Gubbins, a partner at Dauntons in Pimlico, said in the poll.

“Uncertainty over Brexit is the issue,” Gubbins said.

Media coverage of the slowdown, including headlines about falling house prices, is making consumers nervous and holding back demand. New buyers registering with real-estate agents fell for an 11th month in February, RICS said last week.

The slump in London home prices has weighed on national prices too as home price inflation has dropped to its lowest since Feb 2012:

Increased taxes on landlords and loan limits in Singapore have also helped to damp demand from overseas, and as Lucian Cook, head of residential research at broker Savills Plc, warns, a decade of soaring prices means London’s more exposed to political and economic uncertainty, the prospect of interest rate increases and mortgage loan limits.

Interestingly, the north-west of England has now replaced the capital as the fastest-growing property market in the UK. Top of the league for price growth is Blackburn, which recorded average prices ahead by 16.4% over the last 12 months.

Ironically, especially compared to the US, with the most recent official data showing earnings growth averaging 2.5%, that means that unusually, wages are currently outpacing house prices.

Comments

philipat Zero Point Tue, 03/13/2018 - 05:22 Permalink

"Brexit is the issue". I'm not sure that is anything more than a plausible excuse. London property prices are in an enormous bubble and, despite what Governments and Central Banks want us to believe (confidence, don't you know) the Global economy is turning sharply down and will accelerate if a full trade war breaks out.

In reply to by Zero Point

Slack Jack vato poco Tue, 03/13/2018 - 08:05 Permalink

.

GLOBAL WARMING Blamed As London House Prices Plunge Most Since 2009???

After all; What is the value of a property that will be underwater in a couple of hundred years?

Record-Setting Hurricanes; Record temperatures; Record-Setting Wildfires; ya think it might be global warming?

THE EVIDENCE OF GLOBAL WARMING IS OVERWHELMING.

So, why is the global rise in temperatures so worrisome?

For one thing, as temperatures rise good farmland will become desert (e.g., dust-bowl conditions will probably return to the American Midwest).

Another major problem is sea-level rise.

Have a look at http://pubs.usgs.gov/fs/fs2-00/

or a copy of that page at http://www.preearth.net/pdfs/USGS-sea-level-and-climate.pdf

The U.S. Geological Survey people claim that;

The Greenland ice sheet melting will raise sea-level 6.55 meters (21.5 feet),
the West Antarctica ice sheet melting will raise sea-level 8.06 meters (26.4 feet),
the East Antarctica ice sheet melting will raise sea-level 64.8 meters (212.6 feet),
and all other ice melting will raise sea-level 0.91 meters (3 feet).

For a grand total of about 80 meters (263 feet).

So, what does an 80 meter (263 feet) rise in sea-level mean. Have a look at the following map of the world after an 80 meter rise. It means that over one billion people will have to be resettled to higher ground and that much of the most productive agricultural land will be under water. Fortunately, at current rates, the Greenland ice sheet will take over a thousand years to melt and the Antarctica ice sheet, much longer. However, the greater the temperature rise the faster the ice sheets will melt, bringing the problem much closer. Remember, the huge ice sheet that recently covered much of North America, almost completely melted in only 15,000 years (today, only the Greenland ice sheet, and some other small patches of it, remain). Since then (15,000 years ago), sea-levels have risen about 125 meters (410 feet), only 80 meters to go.

The ice sheets have been continuously melting for thousands of years. What is left of them today, is still melting, and will continue to melt. Human caused global warning will cause this remnant to melt significantly faster. This is a big, big, problem.

For HUGE detailed maps of the "World after the Melt" go to:

http://preearth.net/phpBB3/viewtopic.php?f=16&t=23

Global temperatures are increasing. And by quite a lot each year.

2016 is the hottest year on record for global temperatures.

This is 0.0380 degrees centigrade hotter than the previous record year which was 2015.

0.0380 is a large increase in just one year.

2015 was the hottest year (at that time) for global temperatures.

This was 0.1601 degrees hotter than the previous record year which was 2014.

0.1601 is an absolutely huge increase in just one year (at this rate temperatures would increase by 16 degrees in a century).

2014 was the hottest year (at that time) for global temperatures.

This was 0.0402 degrees hotter than the previous record year which was 2010.

http://preearth.net/images/temp-anomalies-1880-2017.txt

The conspiracy to hide global warming data.

The National Oceanic and Atmospheric Administration (NOAA) is given tax money to make global temperature records available to the public. However, certain people at NOAA continually sabotage this aspect of NOAA's mandate. For example, these people have (deliberately) sabotaged the web-page that delivers the temperature records.

Look for yourself:

Go to the page: https://www.ncdc.noaa.gov/monitoring-references/faq/anomalies.php scroll down to the The Global Anomalies and Index Data section and click the download button and see what happens. Well, you get the message:

"Not Found. The requested URL /monitoring-references/faq/anomalies-download was not found on this server."

I guess that the 2017 data must be truly horrible if they have to hide it away.

http://preearth.net/phpBB3/viewtopic.php?f=16&t=23

In reply to by vato poco

sabaj49 Slack Jack Tue, 03/13/2018 - 09:45 Permalink

my guess is your head has been exposed to global warming

can't even make complete thought now

----

brexit and loss of 10,000 banksters and hedge fund crooks

guess they are taking their stolen $$$ to EU bankster land

In reply to by Slack Jack

CatsPaw Tue, 03/13/2018 - 04:30 Permalink

The prices dont fall because of Brexit or because of bubbles.

Prices fall because people cant afford to buy at those prices.

 

Its always about what you can and cannot afford. (and London is stupidly expensive).

JDFX Tue, 03/13/2018 - 04:31 Permalink

Almost as if we see price cycles , all around. 

 

Super cycle wave analysis ! Rent, buy, sell, rent, buy, sell.

Rinse repeat with the ebb and flow.

 

 

 

Aleedsfella Tue, 03/13/2018 - 04:38 Permalink

Everything is the fault of Brexit/Putin/Trump here in the British propaganda media, nothing at all to do with pulling every trick in the book for decades to pump up property prices. Very few people can afford to buy a home here any more and the price of renting is almost as ridiculous. The housing market will crash soon and the wealthy will be crying while the masses cheer!

milanolarry Tue, 03/13/2018 - 04:59 Permalink

Weird. We all knew Brexit a long time ago. It takes such a long time for the market to figure out and react. The MSM should think of a better excuse next time.

caesium Tue, 03/13/2018 - 05:48 Permalink

Prices fell 10-15% the day after Brexit. Since then the market has slowed. A 1% interest rate hike between the fed and the ecb will trash this pig. In fact, I predict inflation will be the result of IRs the opposite to what will be intended. Many British companies will not survive even half the IR mean during the Thatcher years.

max_is_leering Tue, 03/13/2018 - 06:35 Permalink

it's fucking GB folks...what do you expect from a shithole chock full of fuckin' limeys with bad teeth, really shitty food and even worse sports... oh wait, theys gots Nigel F., but it's still a shithole 

Long memory man Tue, 03/13/2018 - 06:52 Permalink

The real reason is that we are mainly skint here in the UK, no money left, all gone on paying for Gov't, 48% of our population work for them in some form or other. Bent deals left and right Carillion is just one small one.

Keep smiling even though 20% of our population is below the poverty line.

Sapere aude BraceforImpact Tue, 03/13/2018 - 07:20 Permalink

But was that before we had to pay the U.S. in gold for arms to fight 2nd world war?

Or when the UK agreed to help manipulate the price of gold?

 

"In front of 3 witnesses, Bank of England Governor Eddie George spoke to Nicholas J. Morrell (CEO of Lonmin Plc) after the Washington Agreement gold price explosion in Sept/Oct 1999. Mr. George said "We looked into the abyss if the gold price rose further. A further rise would have taken down one or several trading houses, which might have taken down all the rest in their wake. Therefore at any price, at any cost, the central banks had to quell the gold price, manage it. It was very difficult to get the gold price under control but we have now succeeded. The US Fed was very active in getting the gold price down. So was the U.K." 

In reply to by BraceforImpact

analyser Tue, 03/13/2018 - 07:19 Permalink

In debt we trust, deflation we get.Take : 

Volkswagen : cash flow from operating activities for the group negative by  around 2 billion Euro, we have never seen that doing that before. Cash flow from investing activities - 16.5 billion. In debt and leasing we trust

artichoke Tue, 03/13/2018 - 08:47 Permalink

Or people don't like paying millions to have neighbors from Grenfell, or Pakis with 8 kids, being given the flat next to them as council housing.