Comments on: London house prices at an all-time high http://www.creditwritedowns.com/2009/10/london-house-prices-at-an-all-time-high.html a finance news and opinion site Thu, 18 Mar 2010 23:48:24 +0000 hourly 1 By: Bullish data, recoveries, crashes and the psychology of forecasting redux - Credit Writedownshttp://www.creditwritedowns.com/2009/10/london-house-prices-at-an-all-time-high.html#comment-9580 Bullish data, recoveries, crashes and the psychology of forecasting redux - Credit Writedowns Fri, 29 Jan 2010 15:12:36 +0000 http://www.creditwritedowns.com/2009/10/london-house-prices-at-an-all-time-high.html#comment-9580 [...] are inflating assets far and wide: European high yield, American high yield, Swedish house prices, London house prices, Chinese property prices, and inducing reckless lending. The list is endless. Even Bill Gross’ [...] [...] are inflating assets far and wide: European high yield, American high yield, Swedish house prices, London house prices, Chinese property prices, and inducing reckless lending. The list is endless. Even Bill Gross’ [...]

]]> By: Bullish data, recoveries, crashes and the psychology of forecasting redux « naked capitalismhttp://www.creditwritedowns.com/2009/10/london-house-prices-at-an-all-time-high.html#comment-7052 Bullish data, recoveries, crashes and the psychology of forecasting redux « naked capitalism Mon, 02 Nov 2009 18:00:51 +0000 http://www.creditwritedowns.com/2009/10/london-house-prices-at-an-all-time-high.html#comment-7052 [...] are inflating assets far and wide: European high yield, American high yield, Swedish house prices, London house prices, Chinese property prices, and inducing reckless lending. The list is endless. Even Bill Gross’ [...] [...] are inflating assets far and wide: European high yield, American high yield, Swedish house prices, London house prices, Chinese property prices, and inducing reckless lending. The list is endless. Even Bill Gross’ [...]

]]> By: Edward Harrisonhttp://www.creditwritedowns.com/2009/10/london-house-prices-at-an-all-time-high.html#comment-8063 Edward Harrison Tue, 20 Oct 2009 18:40:33 +0000 http://www.creditwritedowns.com/2009/10/london-house-prices-at-an-all-time-high.html#comment-8063 That's my understanding as well. This is really just a sign that overseas buyers are returning and the City is doing well because of large bonuses. In the real world, credit is still being restricted and buyers at the low-end are finding it hard to get on the property ladders.<br><br>Prices in the UK are still far out of alignment with historical price-to-rent and price-to-income ratios. That's my understanding as well. This is really just a sign that overseas buyers are returning and the City is doing well because of large bonuses. In the real world, credit is still being restricted and buyers at the low-end are finding it hard to get on the property ladders.

Prices in the UK are still far out of alignment with historical price-to-rent and price-to-income ratios.

]]> By: Edward Harrisonhttp://www.creditwritedowns.com/2009/10/london-house-prices-at-an-all-time-high.html#comment-8061 Edward Harrison Tue, 20 Oct 2009 18:15:10 +0000 http://www.creditwritedowns.com/2009/10/london-house-prices-at-an-all-time-high.html#comment-8061 It could do. There are a number of factors at play. First is the pound. Because London is an international hub, many people from Asia and the Middle East own property there. During the crisis, these buyers were non-existent. Second, London being Europe's financial center gets a lot of buyers not just from UK finance people but from finance guys from all across Europe and the US (all the bankers from UBS, Deutsche, Morgan Stanley, etc etc - they all live in London's tony districts like Kensington, Chelsea, Notting Hill) and right now bonuses in finance are looking good. Third is interest rates. The FSA is talking about cracking down on reckless lending but the low interest rates are increasingly being combined with near 100% mortgages again. This makes it easier to leverage up for creditworthy buyers. Finally, there is a dearth of property on the market at the moment. This is causing a lot of gazumping (a British term for putting in a higher bid just to get the property in a bidding war) It could do. There are a number of factors at play. First is the pound. Because London is an international hub, many people from Asia and the Middle East own property there. During the crisis, these buyers were non-existent. Second, London being Europe's financial center gets a lot of buyers not just from UK finance people but from finance guys from all across Europe and the US (all the bankers from UBS, Deutsche, Morgan Stanley, etc etc – they all live in London's tony districts like Kensington, Chelsea, Notting Hill) and right now bonuses in finance are looking good. Third is interest rates. The FSA is talking about cracking down on reckless lending but the low interest rates are increasingly being combined with near 100% mortgages again. This makes it easier to leverage up for creditworthy buyers. Finally, there is a dearth of property on the market at the moment. This is causing a lot of gazumping (a British term for putting in a higher bid just to get the property in a bidding war)

]]> By: HypeSkeptichttp://www.creditwritedowns.com/2009/10/london-house-prices-at-an-all-time-high.html#comment-8062 HypeSkeptic Tue, 20 Oct 2009 18:07:11 +0000 http://www.creditwritedowns.com/2009/10/london-house-prices-at-an-all-time-high.html#comment-8062 There is a property bubble at the high end of the market, with all sorts of silly shenanigans among competing buyers of £1m-plus homes. It's all cash/bonus/overseas money. The rest of the market is doornail dead. Overall UK house prices are expected to come down 3% next year. Real people are trying to pay down debt, can't get home loans, losing their jobs. <br><br>Dunno about the real economy leaving recession. It seems to be on life support (QE). Withdraw the Bank of England's funny money, or tickle interest rates up a whisker and we'll be double dipping before you can say 'give that *anker a bigger bonus.' There is a property bubble at the high end of the market, with all sorts of silly shenanigans among competing buyers of £1m-plus homes. It's all cash/bonus/overseas money. The rest of the market is doornail dead. Overall UK house prices are expected to come down 3% next year. Real people are trying to pay down debt, can't get home loans, losing their jobs.

Dunno about the real economy leaving recession. It seems to be on life support (QE). Withdraw the Bank of England's funny money, or tickle interest rates up a whisker and we'll be double dipping before you can say 'give that *anker a bigger bonus.'

]]> By: Edward Harrisonhttp://www.creditwritedowns.com/2009/10/london-house-prices-at-an-all-time-high.html#comment-6921 Edward Harrison Tue, 20 Oct 2009 12:40:33 +0000 http://www.creditwritedowns.com/2009/10/london-house-prices-at-an-all-time-high.html#comment-6921 That's my understanding as well. This is really just a sign that overseas buyers are returning and the City is doing well because of large bonuses. In the real world, credit is still being restricted and buyers at the low-end are finding it hard to get on the property ladders.<br><br>Prices in the UK are still far out of alignment with historical price-to-rent and price-to-income ratios. That's my understanding as well. This is really just a sign that overseas buyers are returning and the City is doing well because of large bonuses. In the real world, credit is still being restricted and buyers at the low-end are finding it hard to get on the property ladders.

Prices in the UK are still far out of alignment with historical price-to-rent and price-to-income ratios.

]]> By: Edward Harrisonhttp://www.creditwritedowns.com/2009/10/london-house-prices-at-an-all-time-high.html#comment-6920 Edward Harrison Tue, 20 Oct 2009 12:15:10 +0000 http://www.creditwritedowns.com/2009/10/london-house-prices-at-an-all-time-high.html#comment-6920 It could do. There are a number of factors at play. First is the pound. Because London is an international hub, many people from Asia and the Middle East own property there. During the crisis, these buyers were non-existent. Second, London being Europe's financial center gets a lot of buyers not just from UK finance people but from finance guys from all across Europe and the US (all the bankers from UBS, Deutsche, Morgan Stanley, etc etc - they all live in London's tony districts like Kensington, Chelsea, Notting Hill) and right now bonuses in finance are looking good. Third is interest rates. The FSA is talking about cracking down on reckless lending but the low interest rates are increasingly being combined with near 100% mortgages again. This makes it easier to leverage up for creditworthy buyers. Finally, there is a dearth of property on the market at the moment. This is causing a lot of gazumping (a British term for putting in a higher bid just to get the property in a bidding war) It could do. There are a number of factors at play. First is the pound. Because London is an international hub, many people from Asia and the Middle East own property there. During the crisis, these buyers were non-existent. Second, London being Europe's financial center gets a lot of buyers not just from UK finance people but from finance guys from all across Europe and the US (all the bankers from UBS, Deutsche, Morgan Stanley, etc etc – they all live in London's tony districts like Kensington, Chelsea, Notting Hill) and right now bonuses in finance are looking good. Third is interest rates. The FSA is talking about cracking down on reckless lending but the low interest rates are increasingly being combined with near 100% mortgages again. This makes it easier to leverage up for creditworthy buyers. Finally, there is a dearth of property on the market at the moment. This is causing a lot of gazumping (a British term for putting in a higher bid just to get the property in a bidding war)

]]> By: HypeSkeptichttp://www.creditwritedowns.com/2009/10/london-house-prices-at-an-all-time-high.html#comment-6919 HypeSkeptic Tue, 20 Oct 2009 12:07:11 +0000 http://www.creditwritedowns.com/2009/10/london-house-prices-at-an-all-time-high.html#comment-6919 There is a property bubble at the high end of the market, with all sorts of silly shenanigans among competing buyers of £1m-plus homes. It's all cash/bonus/overseas money. The rest of the market is doornail dead. Overall UK house prices are expected to come down 3% next year. Real people are trying to pay down debt, can't get home loans, losing their jobs. <br><br>Dunno about the real economy leaving recession. It seems to be on life support (QE). Withdraw the Bank of England's funny money, or tickle interest rates up a whisker and we'll be double dipping before you can say 'give that *anker a bigger bonus.' There is a property bubble at the high end of the market, with all sorts of silly shenanigans among competing buyers of £1m-plus homes. It's all cash/bonus/overseas money. The rest of the market is doornail dead. Overall UK house prices are expected to come down 3% next year. Real people are trying to pay down debt, can't get home loans, losing their jobs.

Dunno about the real economy leaving recession. It seems to be on life support (QE). Withdraw the Bank of England's funny money, or tickle interest rates up a whisker and we'll be double dipping before you can say 'give that *anker a bigger bonus.'

]]> By: Jakehttp://www.creditwritedowns.com/2009/10/london-house-prices-at-an-all-time-high.html#comment-6916 Jake Tue, 20 Oct 2009 03:00:19 +0000 http://www.creditwritedowns.com/2009/10/london-house-prices-at-an-all-time-high.html#comment-6916 Does this have anything to do with the absolute collapse of the Pound (i.e. are foreigners coming in and buying at a 20% discount even though the price in Pounds is higher)?<br><br>If so, are locals (i.e. Londoners) now completely priced out of the market? Does this have anything to do with the absolute collapse of the Pound (i.e. are foreigners coming in and buying at a 20% discount even though the price in Pounds is higher)?

If so, are locals (i.e. Londoners) now completely priced out of the market?

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