Hi,

I rent in West Hampstead, and I have noticed that prices have been falling since the summer.

In the summer, shabby 2 beds were offered for £450,000 in good locations while nice 2beds with garden / terrace were offered for above £500,000 or even £600,000

Now, the latter are offered at the price of the former.
This is a massive drop to me although summer prices were becoming unrealistic.

Just a reminder :
Early 2006, 2bed were sold for £300,000
Early 2007 for £400,000

So price growth has been very high and were are just going back to early 07 levels.

but it is encouraging

Examples you quote are not reflected by wider stats.

Are you able to articulate your point in a more substantive manner?

e.g. provide a quote, tables or a link?

Regards

Sox

I think OP first, then me would be the correct way round.

Possibly, but would you not like the opportunity to counter his examples/anecdotals with some facts?

Regards

Sox

My friend bought a nice 2 bed in WH (10 min walk from stations) in October 2005 for 260k, just had it valued at £350k. The properties mentioned above might be in posher streets, but don't seem to reflect that experience, which I admit is only one example.

He said he's going to put it up for sale in the next couple of months, so will let you know if he manages to get that price for it.

Hi, I am indeed referring to posher streets.

Your friends must have bought in South Hampstead or towards Kilburn, on the ill-fated Iverson/Maygrove roads.

If it is the latter, good luck to your friend. These streets are BTL streets, friven by the speculation there would be a merger of the local 2 train lines, giving more space and cachet to this area.

But it won't happen, hence BTLers desperate to sell.
Actually, auctions for WH only concern those proerties for the moment...

Asking prices are now up 10-20% from the date of my last post, visibly sellers are banking on the spring bounce to get out.

Rental prices have also gone up sharply for the higher end, although I suspect these flats are empty as a lot of ads mention "available now"

Some prices are as high as Hampstead or Central London locations, which is ridiculous for this area.

How are you monitoring these prices? Are you using Property Bee? If so can you post some examples?

I've been monitoring Queens Park prices and have seen several significant price reductions so I'm surprised that WH is bucking the trend. I'll post some concrete examples when I get a chance.

I am just looking at the ads on property websites like Globrix.
O know they are not the whole market.

But ads there are at a higher price than a month ago.

Clearly, what I believe is ;
- sellers are hoping for a Spring bounce
- as STRs is now in fashion, BTLers are raising rents massively.

The problem is that the spring bounce won't happen and that job cuts have started in the City.
M&A departments are now seeing cuts, sometimes pre bonus and it is just starting.

I cannot see how you can keep paying £400pw for a 1bed if you have no job, especially with the £59pw jobseeker allowance.

It is a waiting game that will be interesting.
As a die hard HPC, I need unemployment to start rising quickly (my lease expires in July) so my negotiation power stays intact.

Some examples of price drops in Queens Park:

History
date event
20th Feb 2008

* Price changed: from '£2,195,000' to '£1,995,000'

6th Feb 2008

* Initial entry found.


History
date event
1st Mar 2008

* Price changed: from '£1,500,000' to '£1,395,000'

27th Jan 2008

* Initial entry found.

History
date event
11st Mar 2008

* Price changed: from '£1,395,000' to '£1,295,000'

6th Mar 2008

* Initial entry found.

History
date event
1st Mar 2008

* Price changed: from '£720,000' to '£699,950'

14th Feb 2008

* Initial entry found.

History
date event
23rd Feb 2008

* Price changed: from '£599,950' to '£575,000'

10th Feb 2008

* Initial entry found.

History
date event
1st Mar 2008

* Price changed: from '£499,950' to '£475,000'

24th Jan 2008

* Initial entry found.

History
date event
1st Mar 2008

* Price changed: from '£399,950' to '£389,950'

27th Jan 2008

* Price changed: from '£425,000' to '£399,950'

24th Jan 2008

* Initial entry found.

History
date event
1st Mar 2008

* Price changed: from '£420,000' to '£380,000'

14th Feb 2008

* Initial entry found.