House prices to soar in London's commuter belt...

[Deleted member 22389]

A friend just sold his house in Hove to a Chinese who doesn't even live here. How can that be allowed??

Because we are stupid in this country that's why. Fair anough it's great for the seller, but this doesn't help first time buyers in the slightest, not as if they could afford Hove anyway.
What I would do is make it a requirement that all properties are sold to local people first, if they can't sell it that way, then it can be sold to an overseas buyer, but they have to pay more for the pleasure.

 

[The Antikythera Mechanism]

Where did you get these figures from? Your figure of 23% seems to be well over the top of my understanding of prices. I could not see reference to it in the link you provided.

http://www.reuters.com/article/2012/05/08/germany-property-bubble-idUSL6E8EM3KI20120508

I copied and pasted from the body of the linked article.

 

[Herr Tubthumper]

I copied and pasted from the body of the linked article.

Fair enough, I missed that. I still do not agree with 23% though.

 

[Beach Hut]

The inevitable interest rate rises will shatter a very fragile economy and put another two years on to this recession in my view.

Rail fares are now a disgrace in my view

 

[Thunder Bolt]

I recently had my house briefly re-valued for mortgage puposes and found it quite amusing that they quoted that as a "great location" for commuting to London. I live on the seafront nearer Newhaven than Brighton.

When we purchased the house I was still in a London job (but luckily got a job nearer to home after only 2 months of being in the house). I would say my commute to work (including bus and train and then tube) was around 3 hours and cost around a combined £6k a year . It certainly didn't feel "great" as a location then!

There are direct trains from Newhaven to Victoria in the morning and evening.

 

[mejonaNO12 aka riskit]

There are direct trains from Newhaven to Victoria in the morning and evening.

Indeed. He was technically correct but I was speaking more from a personal point and it's day-to-day impact on me, and how 2 hours can still be desbribed in such glowing terms as a great location.

Personally to where I worked it was Still was around 3 hours to work from leaving my house once I factored the bus to Newhaven and the tube from Victoria to Old Street and the gaps between.

Just puts into context what others are saying about places on the outskirts of London being bumped so high.

 

[User removed 4]

Indeed. He was technically correct but I was speaking more from a personal point and it's day-to-day impact on me, and how 2 hours can still be desbribed in such glowing terms as a great location.

Personally to where I worked it was Still was around 3 hours to work from leaving my house once I factored the bus to Newhaven and the tube from Victoria to Old Street and the gaps between.

Just puts into context what others are saying about places on the outskirts of London being bumped so high.

You would've saved a lot of time by going to london bridge its only two stops to old street from there .

 

[The Birdman]

Because when we were looking to move back to Sussex, HH was much cheaper than Brighton (and I certainly wouldn't describe where I lived as a prime location). We did consider it as a possibility but decided it was too quiet.

However, a friend of mine sold his house in Brighton and moved to a similar sized place in Burgess Hill and cleared his mortgage (as BH was so much cheaper). Prices are generally set by location so when an area's cheaper, it's generally for a good reason.

My only experience of HH is waiting for a train and drinking in a pub called the Burrells (sp?) Arms - it didn't strike me as an upmarket experience

That's why we leave that area by the station looking down market we don't want you moving to haywards Heath and discovering a hidden gem.

 

[Vegas Seagull]

Because we are stupid in this country that's why. Fair anough it's great for the seller, but this doesn't help first time buyers in the slightest, not as if they could afford Hove anyway.
What I would do is make it a requirement that all properties are sold to local people first, if they can't sell it that way, then it can be sold to an overseas buyer, but they have to pay more for the pleasure.

Hilarious, your last para describes just what actually happened

 

[nicko31]

http://www.moneymarketing.co.uk/new...ng-for-mortgages-from-january/2003695.article

Funding for lending scrapped, glad someone is finally seeing sense.....

 

[mejonaNO12 aka riskit]

You would've saved a lot of time by going to london bridge its only two stops to old street from there .

I think I got thrown by the previous post and wrote Victoria for some reason.

I did used to go to London Bridge and then walked to Old Street in the summer. Northern Line when it was a bit nippy.

 

[saafend_seagull]

Took me a little while to find a one bedroom flat to buy 15 months ago with street parking within 10 min walk of brighton station, seafront side. Looked for around 5 months in April 2012. Hardly anything on the market now either for similar properties, probably the London impact right there.

 

[Herr Tubthumper]

http://www.moneymarketing.co.uk/new...ng-for-mortgages-from-january/2003695.article

Funding for lending scrapped, glad someone is finally seeing sense.....

Thank god. It was an utterly ludicrous idea.

 

[seagullsovergrimsby]

http://www.moneymarketing.co.uk/new...ng-for-mortgages-from-january/2003695.article

Funding for lending scrapped, glad someone is finally seeing sense.....

I had to chuckle when I read this - "Chancellor George Osborne says: 'The FLS proved to be a successful tool in supporting the recovery. Now the housing market is starting to pick up, it is right we focus the scheme’s firepower on small businesses'." In other words he has cocked up big time with "Help To Buy"

 

[Herr Tubthumper]

I had to chuckle when I read this - "Chancellor George Osborne says: 'The FLS proved to be a successful tool in supporting the recovery. Now the housing market is starting to pick up, it is right we focus the scheme’s firepower on small businesses'." In other words he has cocked up big time with "Help To Buy"

Whilst I would also use the word 'tool', it would not be to describe the FLS. I wonder how much of this decision was down to Mark Carney?

 

[cunning fergus]

House prices were making a moderate recovery which appeared to be going OK. So what do the government do......bring to help to buy stage 2 a full 6 months early. The true cost of this decision this will come after the next election. Politicians in this country learn nothing from history.

IMO, Germany is where the smart money is heading, a housing market still at sensible levels built on solid fundamentals..

The smart money is heading to Germany, hence property prices have risen to values which are 20% in excess of the value the German Central Bank think they should be.

http://www.ft.com/cms/s/0/e5cb6ab6-3a54-11e3-9243-00144feab7de.html#axzz2lxXKkpa3

With interest rates at an all time low to counter the eurozone crisis the Germans will stuggle to prevent their own housing bubble and the subsequent potential for disaster...................of course if they wanted to cool the property market down then interest rates will need to go up which will royally f*ck the weaker countries in the eurozone.

So with these ingredients we will get more of the same political fudge as oppose to any coherent economic strategy.

Solid fundamentals...................I should coco.

 

[seagullsovergrimsby]

Took me a little while to find a one bedroom flat to buy 15 months ago with street parking within 10 min walk of brighton station, seafront side. Looked for around 5 months in April 2012. Hardly anything on the market now either for similar properties, probably the London impact right there.

I've been keeping my eye on property prices in Brighton and the surrounding areas and in the last three months alone they have shot up. Prospective buyers are in a panic mode , even repossessions that no-one would consider because they are shitholes are getting offers OVER the asking price and trying to complete as quick as possible before a higher offer comes in.

 

[Herr Tubthumper]

The smart money is heading to Germany, hence property prices have risen to values which are 20% in excess of the value the German Central Bank think they should be.

http://www.ft.com/cms/s/0/e5cb6ab6-3a54-11e3-9243-00144feab7de.html#axzz2lxXKkpa3

With interest rates at an all time low to counter the eurozone crisis the Germans will stuggle to prevent their own housing bubble and the subsequent potential for disaster...................of course if they wanted to cool the property market down then interest rates will need to go up which will royally f*ck the weaker countries in the eurozone.

So with these ingredients we will get more of the same political fudge as oppose to any coherent economic strategy.

Solid fundamentals...................I should coco.

It's debatable. And the 20% you quote is only in a few selected and specific places; the vast majority of the country is flat when it comes to house inflation. And Berlin was always going to rise given it's only 20 years old in it's current guise and it is receiving heavy investment in virtually every area and field you can think of.

"Not all German economists are convinced by the Bundesbank's gloomy analysis. The Institute for the German Economy in Cologne looked into the subject last year and concluded that the rise in property prices was healthy and no bubble was in sight. "In Germany we've seen roughly a 10% rise in credit," said Michael Schier of the institute's real estate team. "That simply doesn't compare to the 150% bubbles we saw in some of the countries that were hit by the credit crunch."

 

[cunning fergus]

It's debatable. And the 20% you quote is only in a few selected and specific places; the vast majority of the country is flat when it comes to house inflation. And Berlin was always going to rise given it's only 20 years old in it's current guise and it is receiving heavy investment in virtually every area and field you can think of.

"Not all German economists are convinced by the Bundesbank's gloomy analysis. The Institute for the German Economy in Cologne looked into the subject last year and concluded that the rise in property prices was healthy and no bubble was in sight. "In Germany we've seen roughly a 10% rise in credit," said Michael Schier of the institute's real estate team. "That simply doesn't compare to the 150% bubbles we saw in some of the countries that were hit by the credit crunch."

Sure it's debatable, however it is not the case that the German property is an unequivocal success story built on risk free fundamentals.........which was my point.

On the contrary there are plenty of economic indicators and economists all pointing to a property market that is heating up, albeit that does not immediately mean it will lead to the kind of devastation that we had in the UK, Ireland etc. however that misses the key point of this matter.

http://www.cnbc.com/id/49975868

The tragic reality of the current property situation in Germany is that it is yet another example of the myopic outlook of European politicians that has created an ill conceived euro zone. Germany is clearly in an economic league and cycle of its own, and what it may need to do to counter its own problems will be the polar opposite of what other euro zone countries need to do to manage their own desperate financial situation.

Accordingly the solution to an overheating property market will be laced with political expediency rather than a logical economic solution............which ironically is exactly the position we have in the UK.

You may have blind faith in your political masters, however it's not that long ago we has one here who announced to the nation that he had abolished boom and bust..........I wonder what happened to him?