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Tired of Waiting

London Housing Crisis: High Costs, High Stress

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New figures underline the depth and extent of Londoners' concerns about spiraling accomodation costs

A new poll for the Chartered Institute of Housing points to Londoners' deep anxiety about their housing costs and how much more widespread it is compared with the rest of the country. Figures gathered by Ipsos MORI earlier this month showed that 36% of respondents are already concerned about their ability to pay their rent or mortgage, 45% are worried that they won't be able to meet their payments in a year's time, and that 53% are caused a great deal or a fair amount of stress by the expense of their accommodation.

http://www.guardian.co.uk/politics/davehillblog/2013/jun/22/london-housing-costs-anxiety?utm_source=twitterfeed&utm_medium=twitter

So, as most of us knew already, this housing crisis is not just an economic problem, it is also causing a considerable amount of stress and anxiety, and I'm sure it's damaging the health of millions of Brits, mainly the young, mainly in London/South/SE.

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Edited by Tired of Waiting

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I'd love to see a breakdown of people who simulataneously agree with the following two statements:

1. UK greenbelt should never be built on.

2. The destruction of the family is a prime cause of social problems in the UK.

I think quite a few true blues might be unable to join the dots. Stress, long commutes, high costs. All contributary factors which help feed the economic and social degradation of society, as your sig says, ToW.

Edited by cheeznbreed

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We all know the solutions, start building new housing on greenbelt land where the jobs are, create council housing for those on lower incomes,make house hoarding, the great UK pastime, unattractive via taxation etc.

It will not happen because none of the liblabcon political circus will do anything that will not win them elections, even something so desperately society destroying as the current housing crisis, if that means sacrificing their access to the gravy train to do so, because this will require selfless politicians who are thinking about two or three generations from now, not just the four years they can get to trough it up at our expense.

We truly are a nations of lions being led by selfish,bleating little sheep. <_<

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I'd love to see a breakdown of people who simulataneously agree with the following two statements:

1. UK greenbelt should never be built on.

2. The destruction of the family is a prime cause of social problems in the UK.

I think quite a few true blues might be unable to join the dots. Stress, long commutes, high costs. All contributary factors which help feed the economic and social degradation of society, as your sig says, ToW.

Yep.

I've been trying to find an old thread, where I was talking to ... (I think it was "sleeping dog"?, but Google says no... :unsure: ) anyway, I was saying that the parasites are kiiling the hosts, and s/he wrote something like going down together on a deadly embrace.

That is it.

And the country is unable to stop it, coz the parasites refuse to see that they are parasitising, on a wilful self blinding, self servicing (in the short term only though) process.

Collective madness.

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But the south is booming with jobs and wages isn't it???? Isn't the high costs and stress what make London so wonderful compared to the shrikers that live up north?

It's grimmer down South:

hptoearningsbyregion.png

I've used data from this source: http://www.communities.gov.uk/housing/housingresearch/housingstatistics/housingstatisticsby/housingmarket/livetables/affordabilitytables/

From the "Table 577: Ratio of median house price to median earnings by district, from 1997, MS Excel, 185 kb"

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I just wonder why so many jobs are still SE/London based.

With current communications technology, there's no reason why most knowledge work can't be done outside of London, or even from home. There are plenty of places 'up North' crying out for jobs and with cheaper/better housing stock and quality of life than London.

Further, those people would be contributing in the local economy too.

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I just wonder why so many jobs are still SE/London based.

With current communications technology, there's no reason why most knowledge work can't be done outside of London, or even from home. There are plenty of places 'up North' crying out for jobs and with cheaper/better housing stock and quality of life than London.

Further, those people would be contributing in the local economy too.

They don't care much for the rest of the country it seems........think of all the MPs whose family live outside London and also have a place paid for them in London to use all expenses paid......best of both worlds.

Why could they not conduct their business on skype or similar for instance.....think of the money it would save. ;)

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I just wonder why so many jobs are still SE/London based.

With current communications technology, there's no reason why most knowledge work can't be done outside of London, or even from home. There are plenty of places 'up North' crying out for jobs and with cheaper/better housing stock and quality of life than London.

Further, those people would be contributing in the local economy too.

Especially charities, the number that have HQs in central London is pretty astonishing for an organisation that ought to be preserving donations. But I think many are not really about that..

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I just wonder why so many jobs are still SE/London based.

Where's the printing press? Mystery solved.

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Especially charities, the number that have HQs in central London is pretty astonishing for an organisation that ought to be preserving donations. But I think many are not really about that..

There's a number of factors here.

Inertia is a big one. Many charities probably would struggle to afford the one off relocation costs for staff - and like many Londoners can't imagine a life outside of London so new hires are forced to move there.

Some charities have long leases bought cheaply or even donated when the area they are now in was much more run down.

Political influence. If you're a charity who wants the ear of MPs and Ministers - some of you (although probably not most) need to be based in London. See also media and other opinion formers - which are far less interested in anything happening outside of London, particularly if it involves them travelling there to report on it.

Then there's all of the hangers on - the specialist consultancies, the conferences, charities which support other charities etc - nearly all based in London.

I completely agree though - it's a bonkers strategy for the long term. Especially, as most (apart from a few high profile chief execs) charity workers don't get paid that much.

Edited by StainlessSteelCat

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It's grimmer down South:

I've never been truly convinced by that chart, principally because fixed costs for many people are very similar.

i.e. if you earned £20,000 a year and paid £10,000 in mortgage costs you would still have £10,000 to live on

if you earned £60,000 a year you could pay £50,000 in mortgage costs and still have £10,000 to live on.

Simplistic and extreme but higher wages areas have more scope for HPI on that basis alone.

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I've never been truly convinced by that chart, principally because fixed costs for many people are very similar.

i.e. if you earned £20,000 a year and paid £10,000 in mortgage costs you would still have £10,000 to live on

if you earned £60,000 a year you could pay £50,000 in mortgage costs and still have £10,000 to live on.

Simplistic and extreme but higher wages areas have more scope for HPI on that basis alone.

Sure but that would still mean that someone with a £60k salary in London would have the same standard of living than someone with a £20k living in a cheaper area.

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Sure but that would still mean that someone with a £60k salary in London would have the same standard of living than someone with a £20k living in a cheaper area.

Would you like a HPC thread with that?

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Sure but that would still mean that someone with a £60k salary in London would have the same standard of living than someone with a £20k living in a cheaper area.

Not if they owned their house. ;)

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I've never been truly convinced by that chart, principally because fixed costs for many people are very similar.

i.e. if you earned £20,000 a year and paid £10,000 in mortgage costs you would still have £10,000 to live on

if you earned £60,000 a year you could pay £50,000 in mortgage costs and still have £10,000 to live on.

Simplistic and extreme but higher wages areas have more scope for HPI on that basis alone.

If you earn 20K you can take home a lot more thanks to tax credits and other benefits.

If you earn 60K you can take home about the same as the above person due to the above.

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True. Or even if they bought it over 10 years ago, before the bubble. Their mortgages would still be very low.

http://www.bankofengland.co.uk/boeapps/iadb/repo.asp

Say 10 years ago a house cost £200k and the bofe base rate was 5% add 3% margin total interest payable 8%........£200,000 @ 8% IO cost of interest is £16k a year.

House now costs £300k bofe base rate 0.5% add margin of 3% total interest payable 3.5%.... £300,000@ 3.5% IO cost is £10.5k a year.

The big problem is the deposit required and verified proof of guaranteed income to show affordability of a repayment mortgage taking into account any other long-term debts and commitments including student debt on top of all that having a good past credit history. ;)

Edit to say......you can easily see how a person who wants to buy a place to let rather than to live in has so many advantages over a typical first time buyer without help who is only ever running backwards.

Edited by winkie

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(...)

Say 10 years ago a house cost £200k (...)

House now costs £300k (...)

I wrote: "over 10 years ago, before the bubble", and this is a thread about London, so your example, a £200k house, would cost MUCH MUCH MORE than £300k now.

.

Edited by Tired of Waiting

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I wrote: "over 10 years ago, before the bubble", and this is a thread about London. Your example, a £200k house, would cost MUCH, MUCH MORE than £300k now.

.

No....it would depend on the area and the house....there are still freehold homes to be had for £300k but some people are more fussier about where they live and what they will buy than others. ;)

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If you earn 20K you can take home a lot more thanks to tax credits and other benefits.

If you earn 60K you can take home about the same as the above person due to the above.

That was extreme, I don't expect the median figures to be quite so diverse.

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This is our topic here, but seen as a problem, not as an irrelevance.

Plenty of threads and posts about how 60/80/100k in London is worthless. I'm just saying that I don't think house price to median earnings is not necessarily comparable in determining grimness as other costs do not need to follow the same pattern.

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I'd love to see a breakdown of people who simulataneously agree with the following two statements:

1. UK greenbelt should never be built on.

2. The destruction of the family is a prime cause of social problems in the UK.

I think quite a few true blues might be unable to join the dots. Stress, long commutes, high costs. All contributary factors which help feed the economic and social degradation of society, as your sig says, ToW.

I don't agree with (1) but if I did I would say that the solution to the housing crisis in London is moving people who don't work in London to other parts of the country.

(Some would return to their own countries making an even greater saying although of course the majority are UK born). I know people who don't work and live here.

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  • 238 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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