Just as we think we can settle down to our Christmas fare a somewhat chilling thought has been published about the central London property market in the Financial Times. The comments are probably not inaccurate as other parts of the country have seen a similar set of circumstances result in crashing property prices with Manchester being a prime example.
Even now Dockland properties bought off plan by speculators at the tail end of the boom that are due to be built out in early 2012 are catching a cold with values down some 20% meaning an immediate loss. Some investors are cutting their losses, forfeiting deposits and failing to complete the contracts. This is partly due to any lenders down valuing markedly and so the funding offered being way below that required and partly due to buyers considering it will be many years until the capital growth brings the property value back to the original purchase price.
An active central London market is fuelling the big property sales in the provinces and if this were to dry up then it would be a very long and cold winter.
