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The London Housing Bubble Will Gobble Up Our Capital's Civic Space

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http://www.theguardian.com/commentisfree/2013/oct/17/london-housing-bubble-gobble-civic-space

I'll tell you what's wrong with the conversation about housing – we all know there's a market failure. Any market of essential goods that most people can't afford is a failure. But, in still talking about it entirely as individuals who are unable to buy what they want, we contain ourselves within a relatively small consumer space. We fight the logic of the market with the logic of … consumers who can't afford the market. But what we're really looking at is a crisis of civic space as much as a crisis of personal space.

The library I learned to read in, and where I had my first Saturday job, has been turned into a prep school. For stupid, sentimental reasons, this saddens me far more than if it had turned into flats. Spaces aren't being distributed away from all children towards rich adults, they're being taken away from all children and given to rich children. The same local authority, along with many others, is talking about selling its town hall. It's entirely reasonable.

..

Naturally, this comes back to a property bubble, and the buck ends with a London property bubble. It may not seem important if you're outside London but it is, for two reasons. First, "London", in terms of land values, will soon translate as "anywhere that is commutable to London". Second, the next general election wouldn't be the first that politicians have fought entirely on the economics of the capital city, and it won't be the last.

Clearly some will see as a signal to buy in the commuter belt....

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If the Guardian doesn't like London perhaps it ought to relocate to somewhere more sensible like, ooo I dunno, Manchester!

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there's a market failure

The only failure, outside guardian fantasy land, is there is no market, only a load of government directives making it profitable for the banks to push prices up and government violence prohibiting the development of land.

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It makes me feel sick to post this anecdote.

I'm fortunate enough to live in a 1 bedroomed HA flat in zone 2/3 in south east London. My flats is band C council tax. I mentally valued this flat when I moved in it in 2001 at £150k. Come 2008 similar flats in my street were being sold for £350k. It was around this time that I gave up all hope at buying a flat in my area and started spending my sizable deposit on enjoying myself instead. What was the point in saving for a flat when it was being inflated away month on month by HPI. I also stopped looking at flats prices in my street as it was not only upsetting, but really depressing me. .......until just now.

I am astounded that an identical flat to mine (confirmed by floor plan) in the same street is currently on the market for wait for it..... £600k.

If that's not a bubble, I don't know what is. All I can say is that this particular crash is going to be spectacular!!!

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there's a market failure

The only failure, outside guardian fantasy land, is there is no market, only a load of government directives making it profitable for the banks to push prices up and government violence prohibiting the development of land.

There is no land 'market' without government interference.

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If the Guardian doesn't like London perhaps it ought to relocate to somewhere more sensible like, ooo I dunno, Manchester!

It could be renamed "The Manchester Guardian". (Or Grauniad?) :huh:

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It makes me feel sick to post this anecdote.

I am astounded that an identical flat to mine (confirmed by floor plan) in the same street is currently on the market for wait for it..... £600k.

If that's not a bubble, I don't know what is. All I can say is that this particular crash is going to be spectacular!!!

Completely beyond the wages of normal people. It's a rich game of pass-the-parcel. I am just waiting for the music to stop. :blink:

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It makes me feel sick to post this anecdote.

I am astounded that an identical flat to mine (confirmed by floor plan) in the same street is currently on the market for wait for it..... £600k.

If that's not a bubble, I don't know what is. All I can say is that this particular crash is going to be spectacular!!!

What is the average wage in London ?

That price is going beyond the means of HTB to support it so if any of these buyers are heavily leveraged then the banks are in for another kicking when it goes sh*t faced.

Edited by stormymonday_2011

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It makes me feel sick to post this anecdote.

I'm fortunate enough to live in a 1 bedroomed HA flat in zone 2/3 in south east London. My flats is band C council tax. I mentally valued this flat when I moved in it in 2001 at £150k. Come 2008 similar flats in my street were being sold for £350k. It was around this time that I gave up all hope at buying a flat in my area and started spending my sizable deposit on enjoying myself instead. What was the point in saving for a flat when it was being inflated away month on month by HPI. I also stopped looking at flats prices in my street as it was not only upsetting, but really depressing me. .......until just now.

I am astounded that an identical flat to mine (confirmed by floor plan) in the same street is currently on the market for wait for it..... £600k.

If that's not a bubble, I don't know what is. All I can say is that this particular crash is going to be spectacular!!!

Simply mind-boggling. How on earth have this been allowed to happen? Who in their right minds think this is a good thing - for shelter? How can the country/economy/society survive long-term on the back of such insanity.

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