Wednesday, Mar 07, 2012
Can't pay, won't pay
Shelter: Londoners driven out by housing costs
Almost a third (30%) of Londoners say they expect to be driven out of the capital by the high cost of housing.
Shelter’s figures, published today, also show that the two thirds (65%) of Londoners who don’t own their own home don’t think that they will ever be able to afford to buy in their area of London.
Posted by dill @ 08:29 PM (1195 views) Add Comment
25 Comments
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1. khards said...
In other news Londoners expect house prices and rents to stay unfordable for the foreseeable future.
2. nod2glod said...
The cost of housing is too high. but this is BS to say these people have some kind of entitlement to live in their area of london. if they can't afford it, then they are going to have to move. otherwise what do you do, someone can only move into an area until someone with the entitlement to live in that area moves out, or a new house is built? it's just silly.
3. crash bandicoot said...
If Londoners can't afford houses and are forced to leave who will move in to replace them? Are people who work in Milton Keynes going to move to central London because the trains are nice and empty going out of London in the morning? No, once the meddling stops the market will sort it out. If you can't afford the price that's your problem. If nobody can afford the price that's the seller's/landlord's problem.
4. drewster said...
What Crashie says. For every person who moves out, another moves in. In fact the net inflow is slightly positive, because new homes are built all the time and people are living in ever-increasingly crowded properties. Besides, "driven out of the capital" might just mean - horror of horrors - having to live in Essex or Kent.
5. Mr G said...
As N2G says it's BS to say these people have some kind of entitlement to live in their area of london. if they can't afford it, then they are going to have to move.
I'd like to live in the South of France but can't afford it, so I live in West Yorkshire instead.
6. mr g said...
As N2G says, this is BS to say these people have some kind of entitlement to live in their area of london. if they can't afford it, then they are going to have to move.
I'd like to live in the South of France but can't afford it so I live in West Yorkshire.
7. This comment has been removed as it was found to be in breach of our Blog Policies.
8. dill said...
@ mr g
Were you born and bred in West Yorkshire, or did you land there at some point due to a job opportunity?
9. taffee said...
with the birth of the internet,I fully expected people to be moving out of the cities....the opposite seems to have happened...for now
some parts of london that people mass to are dreadfull hotbeds of crime and thoroughly dreadfull places to live.
people who paid through the nose to live in some london suburbs may not recover their money in a lifetime imo
10. khards said...
Corrected for you:
some parts of UK that people mass to are dreadfull hotbeds of crime and thoroughly dreadfull places to live.
people who paid through the nose to live in the UK suburbs may not recover their money in a lifetime imo
11. mark wadsworth said...
London isn't really a geographical place with some sort of indigenous population.
Real "Londonders" whose parents and parents' parents have always lived there are about one-tenth of the population, the rest is people who have arrived from elsewhere in the UK or abroad. It's like a giant motorway services station with a completely transient population.
As Nod says, it's no big deal moving a few miles further out to find somewhere cheaper to live, local train services are excellent. And as Drewster says, for every person who moves out, one moves in, and rather surprisingly, the total population of "London" (however defined) has been stable at between six and eight million for a century or two.
The people worst hit by being priced out of their own areas with no easy escape route are in the South West, where ironically there is no shortage of land, it is very sparsely populated.
12. nod2glod said...
fubar, you entitlement attitude might disagree will people here, but you dont have to use derogatory language. if you can't communicate in a decent manner, maybe you shouldn't comment.
13. fubar said...
Yeah Mark? So it's only 800,000 people who are affected. (got a link for your figures?) I'll be sure to mention to the people I know that they aren't real people from a real place. Is that UKIP official policy?
14. This comment has been removed as it was found to be in breach of our Blog Policies.
15. mark wadsworth said...
Aha, Fubar is our new troll.
16. dill said...
A gentle reminder to all that the 'sense of entitlement' exists at the top of the spectrum, as it does the bottom. The classic example is all the hoo-ha over the proposed mansion tax (which I understand has now been scrapped). Quelle surprise.
17. fubar said...
Mark, of course you're right. And I will wear the badge (the middle-class categorisation of anything they don't like or think is respectable enough for polite company) with pride. Of course it could also be argued that your response is a classic example of exactly that sort of hijacking of the cultural discourse.
Nobbers is an appropriate term for people who can categorise an entire city as suffering a sense of entitlement on a website that exists to serve that sense of entitlement.
18. nod2glod said...
troll, or just someone who is having some kind of break down.
19. mombers said...
Just so long as everyone who doesn't make enough money to live in London gets booted. This includes the Widow in a Mansion.
20. fubar said...
Nod2glod,
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21. fubar said...
Enough already.
22. letthemfall said...
Agree with dill. Aside from the rights and wrongs and inquities and distortions of HB, those at the bottom are easy victims of govt legislation, whereas those at the top, from bankers to "poor" widows, have the ear of the govt right against their voluble mouths.
23. happy mondays said...
It's a bit F8cked up when people have to leave there place of birth due to a sort of financial ethnic cleansing, i would be pretty naffed off if i had to leave my friends & family due to not being able to afford to live in the area..
24. khards said...
Yes, I know the feeling. I had to leave Cornwall over a decade back, to be honest there is not enough industry there to support the house prices and rents. The money flows from London to the outer regions, so if no one can afford London prices then IMO no one can afford to live anywhere because the wage house price ration for the whole country must be to high.
25. mark wadsworth said...
Khards, Cornwall is an extreme case, as you explain.
But there is no fixed "rent to wage ratio", the ratio is actually "rent to net wage after tax minus bare minumum expenditure" and rents soak up between 70% and 100% of that excess amount (depending on how you calculate it).
So if local wages are £10,000, rents are practically zero, and if local wages are £20,000 rents are (say) £5,000 a year and if local wages are £30,000 then rents are £10,000 and so on, so the rents as a % of wages goes up and up depending on how high local wages are, in London, rents are nearly 50% of gross wages and more than 50% of net wages. Which is another way of saying, as the economy grows and people's gross wages grow, rents rise disproportionately.