UK Real Esta drops 5.9% since sanctions on Russia and on Russians.

[notgoodenough]

Guess its time to give Hong Kong a second look. If Russian money continues to leave the UK, their property prices will nose dive. Nobody has more invested in London real estate than the Russians.

UK Home Prices Have Biggest August Plunge On Record As Russian Sanctions Sink In | Zero Hedge

London home prices fell in August by 5.9%, the plunge the biggest since Dec 2007 (and 2nd biggest drop on record). Since western sanctions on Russian oligarchs hit 3 months ago, home prices have fallen in London (especially the highest-end regions, such as Kensington -7%) and now that weakness is accelerating and spreading across the entire UK. As Rightmove reports, the2.9% drop in UK home prices is the worst August on record. How long before the UK pulls back on its 'support' for US sanctions? Costs, indeed?

Since sanctions began, London property prices have dropped with August's plunge almost a record...

 

[waz]

A few things here, the 5.9% drop is for the London region, which has been the main driving force pushing up the UK average. The overall UK drop is 2.9%, which isn't a major change, considering we are in holiday season. There is also the threat of rate rises, which are putting people off, and the fact that there has been a surge in supply, with many sellers competing on the market, people have now been forced to ask for lower selling prices.

However, the Russian element cannot be discounted as it can create a negative multiplier effect. With their absence in the high end market, not causing the rift or pushing out of other buyers into more cheaper areas, you will see a drop in prices. The UK wll miss the Russian "high end market".

Overall I'm totally against what is happening in the UK housing market.

 

[888jamie888]

A drop which is from a historical high. I am sure many Brits would welcome a drop in house prices.

 

[notgoodenough]

Its the high end sale prices that dictate the market. If Russians stop paying stupid amounts of money for properties in London, everything else will deflate as well, and much faster also. London is the main indicator. Nobody else pays that kind of money. In those quantities. Nobody. Except the Russians. Just wait for China to do the same thing in Canada. And if both leave New York, then its all over. I hope people,especially those nato bots realize just how important the BRICS SCO group is to keeping your countries solvent. But if you still dont understand, well then you can all go broke.

A few things here, the 5.9% drop is for the London region, which has been the main driving force pushing up the UK average. The overall UK drop is 2.9%, which isn't a major change, considering we are in holiday season. There is also the threat of rate rises, which are putting people off, and the fact that there has been a surge in supply, with many sellers competing on the market, people have now been forced to ask for lower selling prices.

However, the Russian element cannot be discounted as it can create a negative multiplier effect. With their absence in the high end market, not causing the rift or pushing out of other buyers into more cheaper areas, you will see a drop in prices. The UK wll miss the Russian "high end market".

Overall I'm totally to what is happening in the UK housing market.

Thats actually true. Then maybe they wont have to take out 100 year mortgages just to buy a two bedroom apartment in London. The problem is the effect it will have on the overall economy. Tens of billions in equity evaporated. It wont be pleasant if thats what you think.

A drop which is from a historical high. I am sure many Brits would welcome a drop in house prices.

 

[Informant]

Its the high end sale prices that dictate the market. If Russians stop paying stupid amounts of money for properties in London, everything else will deflate as well, and much faster also. London is the main indicator. Nobody else pays that kind of money. In those quantities. Nobody. Except the Russians. Just wait for China to do the same thing in Canada. And if both leave New York, then its all over. I hope people,especially those nato bots realize just how important the BRICS SCO group is to keeping your countries solvent. But if you still dont understand, well then you can all go broke.



Thats actually true. Then maybe they wont have to take out 100 year mortgages just to buy a two bedroom apartment in London. The problem is the effect it will have on the overall economy. Tens of billions in equity evaporated. It wont be pleasant if thats what you think.

Jesus, you've lost the plot. Russian oligarch's love London. London is the Financial capital. Now go cry in a corner.

 

[Jungibaaz]

A drop which is from a historical high. I am sure many Brits would welcome a drop in house prices.

A drop in house prices is extremely bad for the economy.

 

[Informant]

A drop in house prices is extremely bad for the economy.

This is just a temporary drop, Russian money needs to go through london to be white. No other place.

 

[888jamie888]

A drop in house prices is extremely bad for the economy.

And the sky is blue, it was a tongue in cheek comment on my behalf.
Summer is usually slow, due to record house prices, more people want to sell whilst at the same time fewer people want to buy = reduction in prices. Factor into that the likely higher cost of a mortgage.
I am going to reserve judgement before blaming this on sanctions.

 

[notgoodenough]

The problem is you are lying. This isnt a normal " summer drop " as you say. Read and learn to corellate.

THE BIGGEST DROP SINCE 2007 AND THE 2ND BIGGEST DROP IN HISTORY.

Pretending this is normal and coincidental is laughable. People in the investment community have been calling this for the past few months. The minute we heard there would be sanctions and asset freezes on the Russian oligarchs. This isnt a surprise to any of us. Actually, im still waiting on Canada. But thats another issue.

London home prices fell in August by 5.9%, the plunge the biggest since Dec 2007 (and 2nd biggest drop on record). Since western sanctions on Russian oligarchs hit 3 months ago, home prices have fallen in London (especially the highest-end regions, such as Kensington -7%) and now that weakness is accelerating and spreading across the entire UK. As Rightmove reports, the2.9% drop in UK home prices is the worst August on record. How long before the UK pulls back on its 'support' for US sanctions? Costs, indeed?

And the sky is blue, it was a tongue in cheek comment on my behalf.
Summer is usually slow, due to record house prices, more people want to sell whilst at the same time fewer people want to buy = reduction in prices. Factor into that the likely higher cost of a mortgage.
I am going to reserve judgement before blaming this on sanctions.

 

[888jamie888]

The problem is you are lying. This isnt a normal " summer drop " as you say. Read and learn to corellate.

THE BIGGEST DROP SINCE 2007 AND THE 2ND BIGGEST DROP IN HISTORY.

Pretending this is normal and coincidental is laughable. People in the investment community have been calling this for the past few months. The minute we heard there would be sanctions and asset freezes on the Russian oligarchs. This isnt a surprise to any of us. Actually, im still waiting on Canada. But thats another issue.

I know, but these aren't 'normal' house prices.

Take a break mate, stop starting so many threads. Get outside and get some fresh air.

 

[notgoodenough]

Yeah. Thats not correlative.

I know, but these aren't 'normal' house prices.

Take a break mate, stop starting so many threads. Get outside and get some fresh air.

 

[Schutz]

The problem is you are lying. This isnt a normal " summer drop " as you say. Read and learn to corellate.

THE BIGGEST DROP SINCE 2007 AND THE 2ND BIGGEST DROP IN HISTORY.

Pretending this is normal and coincidental is laughable. People in the investment community have been calling this for the past few months. The minute we heard there would be sanctions and asset freezes on the Russian oligarchs. This isnt a surprise to any of us. Actually, im still waiting on Canada. But thats another issue.

Then it was inevitable wasnt it and a good thing, they announced today that the average price of a house in the UK has reached £250,000 which is double that of the USA, how can people live when houses are so overpriced. My parents house is fairly modest (and no it is no way near London) and its in a working class area but its worth over £250,000, they only paid something like £15,000 for it 25 years ago.