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A movie dedicated to Kirstie Allsop of Channel 4’s “Location, Location, Location”
who famously said that she would eat her hat if house prices in the UK dropped.
Would you like ketchup with that Kirstie?http://www.parkerchris.pwp.blueyonder.co.uk/vocationvocationvocation.html
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I would always trust the UK market. We bought an off-plan (yes!) in Kingston-Upon-Thames to rent and also to keep a foothold in the UK. After a few years the renting wasn’t working very well (they were building a theatre in front of it 🙁 prices had shot up and the media was saying there would be a fall. So..we sold over 2 years ago 🙄 on what we thought was the top of the market. Don’t like to think how much more it would be worth now 🙁 The moral is..we all make mistakes 🙂
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In fairness to Kirstie Allsop (she’s a lady after my own heart – like her, I love knocking down internal walls) the video shows all newspaper headlines dated 2005.
I don’t know exactly when she made this comment, but if the video was made in 2005 which I feel it was – property prices in UK certainly didn’t come down or crash at that time.
Would be interesting to see if she changes her viewpoint now it’s 2007. -
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My part of Surrey a 3 bed 1930’s council house ,priced at 299,000 requiring total renovation ,recently went to sealed bids. Daughters friends’ lost out because they only went 25k over.
Properties ,either in good areas or well presented, will always hold their price.
However at the end of the day a property is still only worth what someone else is prepared to pay for it. -
But Katy – it was Kirsty who said that she would eat her hat if house prices in the UK dropped. And they didn’t – so she was right.
So it would have been right to have listened to her instead of the scaremongering newspapers/websites of the time.There should never be regrets about selling when we did, without the gift of hindsight we made our best decisions at the time. My lovely Victorian house I sold (to pay for Green Hills…..ouch!) is worth over £150,000 more today than when I sold, and I too was happy the time thinking I was selling at the top end of the market.
Imagine that in 1965 when we first moved from London to Devon, my father bought a country-house hotel on the edge of Dartmoor. Ex-vicarage, beautiful red-bricked and gabled house. 16 bedrooms, fully furnished (including antique mahogany chest of drawers/wardrobes in each room), stable, and 5 acres of land.
Oh, and a full grand piano in the dining-room!
Price: £16,500.Years later, we heard it sold for a couple of million (in the 70’s). They turned it into flats, and sold off most of the garden to a developer who built 12 bungalows on the land.
Now? Goodness knows – and to think, I could be a multi-millionaire by now just by having sat in it looking out the window!
Doesn’t bear thinking about……oh that wretched elusive hindsight! 😥 -
The fact that the Uk didn’t correct in 2005 only means that when it does it will correct further. Markets always take a long time to turn.
A lot of housing demand is discretionary. How much discretionary buying is going on in the UK at any one given time is generally influenced by three key factors.
1. Do buyers believe prices are going to go up or down (not over a 10 to 20 year time frame but the few years immediately following the purchase).
2. Can they borrow money to fund the purchase (is it available in the market).
3. Do they believe that the cost (all costs) will be covered by a combination of income and capital increases on the property?
As borrowing and other costs increase (and rental yields wither relative to costs) and lending criteria tighten (UK lenders under the direction of the regulator and a sense of self interest are now taking an interest in our own sub-prime sector = interest only no repayment vehicle/lie to buy etc.) a generation of buyers are finding it less easy to find the next 2-3% 2 year fixed rate that they have become accustomed to.
Cheap money is like a drug and when it’s been available for so long your usage and dependency tends to rise. Many users are good at hiding the problem and another symptom is denial. Artificially cheap money is the super crack of the last 5 years.
It remains to be seen how much UK property inflation (sorry equity increase/new wealth) is down to supply demand/fundamentals and how much is down to discretionary buyers getting into the market in the belief that prices in the UK only ever go up, no matter how much you pay/borrow and where you get on board the cycle.
As the US, Ireland and Spain are showing nothing goes up forever. This time it will be differant as there are now 100,000’s of highly leveraged newbie landlords and prices in the north have lost all relation to wages/yeilds as they suck in debt (not that they havent in the south only that they didn’t last time).
Don’t anyone fall for good houses in good areas won’t be affected. The higher they’ve gone away from demand based on fundimentals the further they will fall back.
As the Governor of the BOE said “Property prices are a matter of opinion, debt is real”
And from the Sage of Omaha “You only find out who’s swimming naked when the tide goes out!”
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@katy wrote:
I would always trust the UK market. We bought an off-plan (yes!) in Kingston-Upon-Thames to rent and also to keep a foothold in the UK. After a few years the renting wasn’t working very well (they were building a theatre in front of it 🙁 prices had shot up and the media was saying there would be a fall. So..we sold over 2 years ago 🙄 on what we thought was the top of the market. Don’t like to think how much more it would be worth now 🙁 The moral is..we all make mistakes 🙂
Hello Katy – Think I know where you are referring to – just a few minutes from where I live – a few 2-bed flats are on sale there this week for £650,000 ❗ It’s a lovely place to live.
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Pablo Silver or Lead? quote
Don’t anyone fall for good houses in good areas won’t be affected.
Melosine quote
Properties ,either in good areas or well presented, will always hold their price.Holding their price.. doesn’t mean one can make a quick or even a long term killing . Good value quality property and good areas are stayers. If the market should fall dramatically folk will at least get back what they paid for them.
Problem is people have forgotton now that a house is to live in. Most look at brick and mortar as way to make a fast buck.
The only winners are the money lenders. Always have been.
People ,of all ages, in England are drowing in debt. -
Suzanne: £600 per Qtr, for a block is not expensive. As you are probebly be aware that all new planning permissions ( Oh, no not planning permission) are granted with social hosing and some local job creation.
I think that the social housing do not pay for some of the services and the so called local job creation which invaribly means a concierge, who would collect your post even though you have a letterbox or at best a delivery from one of the stores.
The local job creation will consistent of a concierge from Poland, Latvia or Sudan.
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Kingston is a great place to shop too(my favourite pastime!). I’d love one of the (penthouse 😉 ) apartments overlooking the river opposite John Lewis. I could moor my little boat outside and the just pop over the water for a spot of retail therapy. Perfect!!
Before you say anything Charlie…I would take my sea-sick pills first! 😆
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Oh how thick am I today Katy ❗ Yes, it is so beautiful, particularly when it’s teaming with rain. You can wrap up & walk along the Thames and not see a soul, & all you can hear is the rain on the water & pattering splashes on the house boats decked with flower pots. And, it will always be here – I think! 🙂
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Have seen various views on tv and in the Press about a property crash.
It seems the Finance people agree generally that there could be a decline or even a crash in the UK, whereas those involved in Estate Agency like Phil Spencer, Kirsty Allsop (both agents), Savills etc are saying the complete opposite. (I wonder why, maybe their vested interest?)
Add the U.S., Spanish and talked of French property bubble burst and it makes you wonder about the UK. The only argument against a crash is the continual ‘demand outstripping supply’, mainly underpinned by investors and immigrants, never mind the poor 1st timers unable to get a foot-hold. If the many ‘buy to let brigade’ start to dump property because of fears of a crash or just not getting decent rental returns, plus interest rate rises, then the market really could crash here I believe.
Just my opinion though.
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