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JustAnotherProle

A Generation Priced Out Of London

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I haven't seen this posted and thought I would bring it to the masses. The generation lost is finally speaking out? How long before we see major demonstrations about this disgusting state of affairs? :angry:

Well, zip-a-dee-doo-dah. The average rent in London is set to top £1,000 a month: an acute shortage of properties has sent prices soaring.

That's excellent news for those hoping to cash in on the buy-to-let market - and rubbish news for everyone else.

Since the average Londoner doesn't buy their first house until they are 43, private renting is a fact of life, particularly for the young. However, what is seen as normal in France, Germany or the US is here stigmatised.

In our property-owning democracy, only an obsession with interest rates and ever-rising house prices make you a proper citizen; renting means patronising smiles and monthly standing orders to subsidise someone else's mortgage.

Read the full commentry HERE

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The situation is now far worse that it has ever been, it has always been bad trying to buy, but rents have in the past been in the realms of sanity, not so now......if your employer wants you they will have to pay your rent, otherwise move elsewhere to earn less but live better. ;)

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Aye, and now the front page of City AM is whining about how none of us are preparing for our retirement...

Well, guess what. Until we have a house paid for, it's all a bit academic. Who in their right mind these days would be paying into a pension (with it's fees, locked in nature and government raids) instead of saving for a deposit - or emmigration?

http://www.cityam.com/news-and-analysis/the-ostrich-generation

http://www.cityam.com/news-and-analysis/allister-heath/uk-hopelessly-optimistic-pensions

Sadly they don't do comments by the looks of things.

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I haven't seen this posted and thought I would bring it to the masses. The generation lost is finally speaking out? How long before we see major demonstrations about this disgusting state of affairs? :angry:

Read the full commentry HERE

Unbridled immigration has a lot to answer for. If someone from a different country has a lot of money and can buy a house, then someone in the UK wont be able to.

If there are too many people for the quantity of housing available, and the nation has no room to build masses of new housing, the economic result is sky high house prices. A huge economic win for those lucky enough to have bought land or inherited it before mass immigration.

I doubt we will ever get what we consider to be 'affordable housing' unless this issue is tackled.

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That's excellent news for those hoping to cash in on the buy-to-let market

Including a fair few MPs.

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Unbridled immigration has a lot to answer for. If someone from a different country has a lot of money and can buy a house, then someone in the UK wont be able to.

If there are too many people for the quantity of housing available, and the nation has no room to build masses of new housing, the economic result is sky high house prices. A huge economic win for those lucky enough to have bought land or inherited it before mass immigration.

Repeating the usual false myths doesn't make them any more true, there is enough empty land for everyone, it's the planning laws that force us to live in less than 5% of available space while the British landed/rentier elite lives it up undisturbed in their large country mansions.

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Repeating the usual false myths doesn't make them any more true, there is enough empty land for everyone, it's the planning laws that force us to live in less than 5% of available space while the British landed/rentier elite lives it up undisturbed in their large country mansions.

+1

Although immigration does have effects elsewhere (e.g. when immigrants with skillsets in professions that already suffer from excessive supply drive down wages even further and make housing even less affordable).

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Repeating the usual false myths doesn't make them any more true, there is enough empty land for everyone, it's the planning laws that force us to live in less than 5% of available space while the British landed/rentier elite lives it up undisturbed in their large country mansions.

The laws of economics always hold true, too many people chasing too little housing, prices rise.

You seem to be implying that we should concrete over more of our precious green land in order to let more immigrants live here?

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Repeating the usual false myths doesn't make them any more true, there is enough empty land for everyone, it's the planning laws that force us to live in less than 5% of available space while the British landed/rentier elite lives it up undisturbed in their large country mansions.

We're talking about London here. Unless you think we should cover Hyde Park with tower blocks I think you'll find that there is something of a shortage of land in the capital. Our current economic policy is to sell off Park Lane, Knightsbridge and Putney to rich foreigners - it's often celebrated in our press that the global 'elite' choose to base themselves in London these days. The end result, though, is that the less rich Brits that have to live in London to find work end up dispossessed and pushed further and further out into the shabby suburbs paying higher and higher rent and having to commute further and further.

30 years ago a typical family doctor, say, could expect to buy a nice semi in a nice part of town like Barnes. Not so now, you need over a million to buy a house like that and, excepting those lucky enough to have bought somewhere before this madness, we're all the poorer for it.

Edited by gimble

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The laws of economics always hold true, too many people chasing too little housing, prices rise.

Lack of housing is a myth.

You seem to be implying that we should concrete over more of our precious green land in order to let more immigrants live here?

Scaremongering (concrete over) is a very childish way to argue, in Germany they regularly give planning permission on green land bordering towns when required and Germany still has plenty of green land.

The false myth of concreting over UK green land has been debunked many times already here on HPC, no need to attempt to use the same nonsense over and over again as feeble argument.

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We're talking about London here. Unless you think we should cover Hyde Park with tower blocks I think you'll find that there is something of a shortage of land in the capital.

There is no physical shortage of housing or land, even in London. There is a lot of wasteland and empty houses due to speculation and greed though.

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Lack of housing is a myth.

Scaremongering (concrete over) is a very childish way to argue, in Germany they regularly give planning permission on green land bordering towns when required and Germany still has plenty of green land.

The false myth of concreting over UK green land has been debunked many times already here on HPC, no need to attempt to use the same nonsense over and over again as feeble argument.

I repeat - this is about London. There is - almost - no land available for development. Either we knock stuff down and build higher, expand the suburbs and make everyone commute further or try to take steps to control the population.

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Lack of housing is a myth.

Well I guess if you have enough money it is a myth.

Supply and demand never lie, the price tells you all you need to know. Prices dont get bid to the moon when there is massive oversupply of something.

Lack of housing, where people want to live, which includes London, is very very real. Just look at the price.

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I repeat - this is about London. There is - almost - no land available for development. Either we knock stuff down and build higher, expand the suburbs and make everyone commute further or try to take steps to control the population.

I wonder how they managed to fit that huge Olympics develpment in the middle of London then, if there was no land available.

London has plenty of wasteland, former industrial sites, etc.

Go for a drive around London (Zones 3-5 not central London) and you will see what I mean.

Also there are hundreds of thousands of empty houses in London, mostly by speculators and/or developers for future use or speculating on price rises.

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Well I guess if you have enough money it is a myth.

Supply and demand never lie, the price tells you all you need to know. Prices dont get bid to the moon when there is massive oversupply of something.

Lack of housing, where people want to live, which includes London, is very very real. Just look at the price.

Did you actually learn anything here on HPC? House prices are primarily determined by how much people can borrow, nothing else.

Also the "supply and demand" rule only works in a free market, housing is anything but a free market!

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I think Brits in London under 30/35 have been totally screwed.

Private rents and prices in London are just insane, even in the suburban areas where the foreign investors don't buy. I remember back in 95, you could rent a reasonable-sized two-bed flat in SE14/SE8/SE15 for about £500 a month. By 2005, that was more like £900 a month if you were lucky, and your rooms would be small.

At the end of the day, it is about increased demand for resources and infrastructure, declining real wages, and access to the credit boom of the last ten years.

wiseeagle, I know what you are saying about land available. The only problem is infrastructure. In the last five years, we've seen a lot of build on sold off farm land in our area on the outskirts of already existing housing areas; yet our roads were planned and built for populations a seventh of the size of what we now have. Our sewerage is significantly over-capacity, as are our schools. We are even having problems with the wattage and water pressure, and access to supermarkets and shops. In short, too many houses plugged into an infrastructure meant for late 19th/early 20th century populations that cannot be changed without massive upheaval (like compulsory purchasing property and knocking down houses to widen roads and put in train lines).

What we probably need are new towns, but then how do you get employment into new towns without tax breaks?

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I haven't seen this posted and thought I would bring it to the masses. The generation lost is finally speaking out? How long before we see major demonstrations about this disgusting state of affairs? :angry:

Read the full commentry HERE

Who is going to buy the Properties then? The headline is oxymoronic; if a whole generation is priced out prices will fall until they are priced in.

This is happening already mortgage approvals are plummeting because prices are too high. Vendors will crack eventually and prices will fall. Just give market forces some time to work, IR moving up would also help speed things up.

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London's population grew 8% in 10 years:

http://news.bbc.co.uk/1/hi/england/london/7639338.stm

... much faster than in the rest of the UK.

Note the date of the article and the period it refers to:

Greater London's population grew by 542,000 to 7.56 million between 1997 and 2007 - an increase of 8%, according to the figures.

The 2008/2009 recession made a lot of middle class foreigners leave again, I know myself several Europeans who moved back to France / Germany / Switzerland / Belgium / Scandinavia in the last 4-5 years.

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When you fly in and out of London you see how much green space there is within the M25.

In Central London I agree there is very little land for building, but within a 20 minute train ride from the centre of town there is LOADS of land. If planning permission was granted for housing within the Northern bounds of the M25, meaning that you could get a 4-bedroom terrace for £200,000-ish (build cost would be much less than this), this would massively affect the price of sh1tty 4-bed terraces in Clapham, which currently have asking prices between £700k - £1million.

There is plenty of land within easy commuting distance, and once you unlock this and sort out bank lending, prices would easily come down to affordable levels. The solution is there (bank lending being the main problem), but those with real power in this country don't want that to happen, so it won't.

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Who is going to buy the Properties then? The headline is oxymoronic; if a whole generation is priced out prices will fall until they are priced in.

This is happening already mortgage approvals are plummeting because prices are too high. Vendors will crack eventually and prices will fall. Just give market forces some time to work, IR moving up would also help speed things up.

I think that the problem pointed out is that the indigenous population is priced out, not that everyone is priced out.

I would have to agree, though London has for centuries attracted rich foreigners.

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Unbridled capital flows too. Last year over half of the new builds flats in London were purchased by overseas investors.

Yes - over 60% of all new builds in central London bought by overseas investors

http://www.whathouse.co.uk/news/knight-frank-central-london-asian-buyers-research-813

"Global property consultants Knight Frank has reported that nearly 60 per cent of all new-build homes in London's central districts that has been sold in the six months to the end of April 2011 was snapped up by buyers in the Far East.

The largest proportion of buyers was in Hong Kong (24%), trailed by those in Singapore (12%) and mainland China (10%), with other countries in the region making up the balance. Furthermore, the company reports that Asian buyers purchased £120 million-worth of Central London property through its offices in the last two months alone. It reports that properties in the £400,000 to £1 million bracket are proving particularly popular with this buying sector.

"Asia is the fastest-growing region for cross-border sales of London property," says Neil Batty, Head of Knight Frank IPM. "Having established this business with significant success in Hong Kong, Singapore and Malaysia, we are now rapidly expanding into mainland China."

Knight Frank puts the phenomenal popularity of Central London property down to several factors: a favourable exchange rate, strong capital growth potential and long-term investment appeal.

This research certainly backs up anecdotal evidence from housebuilders that the What House? team has talked with recently, including Berkeley Homes, Weston Homes, and St James, who have all reported tremendous success with London developments at property exhibitions that they have attended in the Far East over the past few months."

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When you fly in and out of London you see how much green space there is within the M25.

A cousin lives on a farm in Caterham, FFS. Bought for a song in 1996. Can't grow anything but organic hay, and can't (obviously) build more housing on it.

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Yes - over 60% of all new builds in central London bought by overseas investors

No self respecting indigenous Londoner would want any of those central London new built flats anyway, that's a completely separate market.

What London is lacking is a planning / development strategy that takes infrastructure and proper housing developments (not slave boxes or show-off high end flats) into account.

But I guess the major of London (regarless if he's called Ken or Boris) only cares about ego boosting projects like new doubledecker busses or congestion charging (car hate) or skyscrapers or similar crap, rather than a serious comprehensive plan for the development of London.

Edited by wise_eagle

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  • 284 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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