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a literal house

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About a literal house

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  1. I mean the earnings of the median person in the UK is already closer to the median person in Slovenia/Poland on a PPP basis than they are to the median person in America or Australia, and yet the political debate is still centred around increasing taxes on young working people rather than actually fixing any of the problems. I dont think most people in Britain realise just how bad their lives are compared to the rest of the developed world, and just what a high price they are paying for supporting the white underclass and various third-worlders. Brits still feel smugly superior to Americans despite how far behind they lag on pretty much every quality of life measure. There's no sign of any of this changing. http://en.wikipedia.org/wiki/Median_household_income
  2. The UK system is obviously unsustainable and is going to collapse at some point, but its unlikely to be in the near future. Its more probable than things will just get worse and worse for the current generation and the one after them. It takes a huge amount to trigger genuine revolution, and most people are prepared to tolerate increasingly crappy lives even if they grumble a lot about it (look at Italy/Greece for example)
  3. A family with 2 children and a single worker earning £15k a year gets around £15k extra in various tax-free benefits. Pretty much every family in London has the equivalent of a £40k salary minimum after you total up the various benefits. Thats enough to pay for the high rental costs (even though the quality of life will be awful), and London house prices are partly set based on projected rental yields. Also an increasing number of immigrants are from the EU rather than third world. These people typically do have money, and are earning a decent salary. The median worker in London is on £35k.
  4. Its not obvious that it does work against them - a lot of people in London dont _want_ to buy. Its an international city - people come for a few years, and then go home. Remember that less than 45% of people in London are white British, and even many of those will be from Northern cities who have come down to work with the eventual intention of moving back. Its a hugely transient population, most of whom are quite happy to rent because they know they wont be staying for their whole lives.
  5. Since when have councils/governments ever been embarassed about needlessly overpaying people to perform useless work?
  6. I know nothing about how farming works, but the story makes no sense to me. Who has "cut the price they are paid by 25%"? Surely the price farmers sell at is their own decision? Why are they agreeing to sell for less than cost?
  7. Mass homeownership was a novel 20th century phenomena, there is no reason to think it will continue indefinitely into the future. Throughout most of history, those at the middle/bottom of the pyramid have rented rather than owned their accommodation, and this is still the case in many parts of Europe. Realistically we are moving towards a situation where most young people are going to rent indefinitely unless their parents can buy them a house. Current London house prices are almost certainly based on projections about future rental yields - asking "who can afford to buy them and live in them" misses the point, because that isnt what happens.
  8. Its difficult to imagine why house prices wont rise 30%, if you look at the fundamentals of the housing market. The UK still has net immigration figures of over 200,000 year, and the population is poised to reach 70 million by 2030. Most of that is going to be concentrated in the South East (immigrants arent moving to the Scottish highlands), and the amount of new housing being built is nowhere near enough to match it. So you have a further increase in demand in a market which already has a serious supply shortage, and prices are only going to move in one direction in response to this. There is nothing obvious which will prevent this from happening; there is no sign of immigration being reduced, no sign of planning permission being relaxed, no sign of cuts to housing benefits to limit demand (all mainstream parties are committed to maintaining current levels of in-work benefits, and the deficit will be covered via higher taxes regardless of who wins the election).
  9. 10% transaction tax is simply insane, and I dont understand why anyone would think its a good idea since the effect will be to a) increase house prices, make it much harder for first time buyers to get on the market, and c) further increase the tax burden on the middle class, for whom the UK isnt a particularly pleasant place these days as it is.
  10. Actually its higher than I thought, the median full-time salary in London is acutally £34216 In April 2013 median gross weekly earnings for full-time employees were highest in London, at £658, and lowest in Northern Ireland, at £460.http://www.ons.gov.uk/ons/rel/ashe/annual-survey-of-hours-and-earnings/2013-provisional-results/stb-ashe-statistical-bulletin-2013.html
  11. Those salary figures are misleading because they include part-time workers (most of whom are claiming Working Tax Credit anyway). The median salary of a full-time worker in London is £30k. Also due to feminism and unlike 50 years ago, most buyers outside the upper-middle class now structure their finances around a joint income, so youre looking at around £50-60k for a typical couple. Using your 5.4x median wages multiplier, that gives a price of £280-320k, which isnt far off what a 2-up-2-down in Walthamstow today, outside the village area.
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