Saturday, July 5, 2008

London lack of supply!

Lots of Londoners think that London is - or was - immune to the House Price Crash. Lack of supply, millionaires who don't care about prices ... London price would not fall.

Would it?

I think that Pimlico is kind of central London ...

"Flat I bought for £175,000 last year is now worth less than £100,000"

It's no more a lack of supply but much more a lack of demand, 10 years of lie are coming to an end. Get ready for the british version of the credit crunch.

2 comments:

Vonric said...

In French we would say "démagogie". This guy (if the story is true, I have doubts knowing the quality of this newspaper) as been robbed and is stupid (a studio for £225k ? anybody comparing with the average incomre of a family in London will find the odds).

Yes the property prices have fallen. Yes this is good news because the social crisis was close. No need to take silly examples... ;-)

French Fry said...

It was 175 000 studio in Pimlico.
not 225 000...

A big number of people have been robbed and were being stupid in the last 2 years. And at the time it was celebrated by a number of people - porn porn porn -.

BTW it is no silly example. Lots of BTL "investors" have been buying brand new flats in city centers, just to see the value halves ...

It is good news in the sense that it was going to happen anyway, the sooner the better. It is bad news because NE is back and thousands of gullible people, who bet on ever rising price are in the deepest shit ever seen for a long time