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Fall in house prices accelerates in November – RICS
http://uk.reuters.com/article/2012/12/11/uk-house-prices-idUKBRE8BA00820121211
British house prices fell faster than expected in November, after dropping at the slowest pace in more than two years the month before, but surveyors were hopeful sales would grow in 2013, a survey showed on Tuesday.
I know there are other nationalities buying in Spain, but aren’t the Brits the biggest group?
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If UK house prices were to fall significantly it would most certainly impact further on Spanish property prices. Price falls in the UK are very regional, in major hot spots like London, Surrey, Bath, Tunbridge Wells etc price falls are fairly insignificant if at all because prices are so high anyway. Other parts of the UK are having larger falls but nothing like the falls in Spanish property prices. It matters little though in the UK for if someone takes 10-15% drop in price of their house to move to a new area, or as a friend of ours has just done, a reduction of 2% and sold within a week, he then saved 10% on his purchase direct from a developer. The key here is finding out when developers in the UK and probably in Spain, have their half year or year end results coming up, then put in the cheeky bids for cash and quick sale.
That said, there are few new developments in the UK, nor worth pursuing at present unless they are top end, like Spain there’s quite a lot of look-a-like unimaginative c–p out there built by Wimpey, Persimmon etc often it’s the same company incorporating others.
British buyers make up a large proportion of buyers in Spain but not if their UK property prices have fallen 🙄 UK Gov’t however will conjure something up to underpin UK property, they depend on it for a buoyant economy. 😆
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I own a flat in London, nothing grand, just an ordinary one, and according to Zoopla it has gone up slightly in value over the past five years.
Though harder to estimate, I believe my house in Spain has fallen in value by around 40% over the past five years.
As I hope to stay on in the sun, neither event affects me much. And I paid for the Spanish house in Pesetas, a few million of them, some of them in a plastic bag. Like everyone else.
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We bought a house in the home counties 15 months ago, it has risen in price by around 12% in that time and we would get the price since we’ve had several notes put though letter box should we wish to sell with an offer too (location and best plot) so had a couple of valuations done as a result which confirm price. No doubt it would sell fairly quickly. 🙂
Compare that with two friends who bought in Spain, one 2 years ago, one same time as we bought, both seen 25% and 20% falls in valuations even if they could sell 🙄 Overall swing of 32-37% in favour of the UK purchase for capital retention. 🙄
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We have property in Brighton – bought over 10 years ago. In 2008 prices dropped by about 15% but when interest rates were slashed sales dried up (nobody needed to sell) so it was difficult to bag any “bargains” (especailly while living in Spain). Since then prices have slowly crept back up and now they’re not far off peak (2007) prices. The market in Brighton is somewhat driven by London overspill but mainly it’s the student rental market that has kept prices stupidly high for what I think are very average properties.
I’ve read that outside the South East property prices have been steadily falling for a few years now while central London has shot up. It’s a very regionalised market.
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7 years ago we bought a house in Devon and sold it in June 2007 at the peak which was pure luck on our part, great profit too. A neighbour on same development has just moved from there and has sold for only £5k more than he paid but lost slightly when costs were considered, so basically the market there and a local agent who values low did him no favours, we used a more pro-active agent when we sold. In between that, we lived in Spain, (rented), and then bought and sold near Bournemouth just when market was rock bottom for buying but picked up for selling, it was those year end figures again when we bought, developer had taken the property we bought as a part-ex and they took the loss when selling to us. 😛 More difficult to do that now as such little stock of new builds coming on in UK. 🙁
The good news for him is that he’s moved to another new development in same county but negotiated a good discount because of year end figures, and, overall he’s happy, he’s banked a few bob too. 🙂
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@Chopera wrote:
We have property in Brighton – bought over 10 years ago. In 2008 prices dropped by about 15% but when interest rates were slashed sales dried up (nobody needed to sell) so it was difficult to bag any “bargains” (especailly while living in Spain). Since then prices have slowly crept back up and now they’re not far off peak (2007) prices. The market in Brighton is somewhat driven by London overspill but mainly it’s the student rental market that has kept prices stupidly high for what I think are very average properties.
I’ve read that outside the South East property prices have been steadily falling for a few years now while central London has shot up. It’s a very regionalised market.
Even within London there are areas where prices are starting to fall. My partner’s sister has been trying for nearly a year now to sell her flat near Islington (so she can move to Istanbul – her locum pharmacy earnings have declined here with all the competition from migrant competition). Hungerford Road N7 if anyone is interested 😀 She’s now lowered the price to where she’s getting offers.
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@katy wrote:
House price falls in the UK have been so tiny that it won’t have any impact on spanish prices. If anyone was crazy enough to buy in spain now they could shake off the UK loss (if any) easily. Halifax says that UK prices increased last month.
Yeah I agree.
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A fall in UK house prices won’t have that much impact on spanish property prices partly because since 2008 the fall in the value of Sterling against the Euro has meant that demand for Spanish property from the British has collapsed anyway regardlass of the property situation in Britain. The poor exchange rate of the Pound against the Euro has had a much bigger effect in detering British buyers from buying property in Spain than any other factor like the fall in UK property prices or the state of the British economy.
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