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Average London Home Will Cost £650K By 2020

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It means a new generation of young Londoners will be excluded from home ownership, researchers warn

Lots of countries that will happily pick up the money making work and provide far better working and living conditions. The next generation will find that the jobs will have gone, been outsourced or completely automated wherever possible.

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Article talks about "reasearch" and "report" but doesn't say who or what. About as meaningless as newpapers when they say "a source said". Last line finally mentions Lucian Cook of Savills, so I suspect this article was commissioned by an Estate Agent.

Edit: My bad, Oxford Economics reasearch, using the multiply and percent buttons on their calculators. I glazed over in the middle of the article.

Edited by Starla

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I again offer my HPC growth model to any Prof reading this that states at @10% YoY growth a £100k house will be worth £1.36bn in 100 years.

Of course no self respecting economist is going to offer that up in any research as it clearly shows he'd be talking b0110cks, but a £650k house, now that's realistic....

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No worries there is absolutely no doubt in my mind that by 2020 the average London wage will be £185,000 :lol:

It's wont be 650K unless a loaf if £40 and the postman is earning £500K a year.

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I can't remember the last time I saw a property in London below 650K that I'd even want to put the dogs in.

You can get something half decent for that, it would be liveable anyway.......the dilemma is paying that kind of money would mean you would hardly be living in it, you would have to spend all hours of the day and late into the evening out at work paying for it......what is the point of that?......using it as a place to camp up for the night.....there must be a better way to live a life. ;)

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It's wont be 650K unless a loaf if £40 and the postman is earning £500K a year.

It could easily be 650K if there is war in the Far East....

rich refugees are always welcome...specially glowing ones.

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It's 2007 again !!!! That's exactly the sort of idiotic headline we were getting then.

Collapse to follow.

+1. As a long time Standard reader this looks very familiar.

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It's 2007 again !!!! That's exactly the sort of idiotic headline we were getting then.

Collapse to follow.

I hope that London is going to crash a Dubai style in 6 months:

- prices higher than in 2007

- Hackney growing 12% pa

- help2buy mortgages starts from 4.5%

- funding for landing canceled for mortgages

- living costs going up

- static wages

- cuts in London banking employment sector

- housing benefit reduced to £500 pw

- capital gains taxation for foreigners

- more taxation for BTLs

- negative sentiment

Edited by Damik

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I hope that London is going to crash a Dubai style in 6 months:

- prices higher than in 2007

- Hackney growing 12% pa

- help2buy mortgages starts from 4.5%

- funding for landing canceled for mortgages

- living costs going up

- static wages

- cuts in London banking employment sector

- housing benefit reduced to £500 pw

- capital gains taxation for foreigners

- more taxation for BTLs

- negative sentiment

Agreed - but you just don't get the hysteria.

One young girl in our office - doesn't even yet have a permanent contract - has just bought a flat in Kingston with her partner. It took her months to find a place and always got outbid by cash buyers/BTLs and she just got in early on a property being sold by a downsizing pensioner who was just keen to sell. The congrats all round when she got it from other colleagues - you would think she had one the lottery not a £250k debt on a ground floor flat needing updating with no outside space in zone 6. :D

Until the hysteria and cheap money ends - this could go on for a while yet!

Although if you believe this NHF report even bankers will be on housing benefit in London in 10-15 years - as they won't be able to afford to rent either in the capital! :D

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No we are somewhere between 'Media Attention' and 'Enthusiasm heading up towards 'Greed', some of the boomers have already priced in at 'Greed'.

You are quoting the Official Position....there never was a bubble.

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You are quoting the Official Position....there never was a bubble.

They certainly have overlooked the actual bubble.

I'm still waiting for a reply from the BoE to my what is a bubble question.

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It's worth a read,

-population heading for 70 million

-house building at the lowest level since the 1920's.

The answer is crystal clear, we must build more houses, especially in the South East and employment hot spots like Cambridge and the M4 corridor. Oh for a political party with the courage and vision to steamroller the NIMBY objectors.

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It's worth a read,

-population heading for 70 million

-house building at the lowest level since the 1920's.

The answer is crystal clear, we must build more houses, especially in the South East and employment hot spots like Cambridge and the M4 corridor. Oh for a political party with the courage and vision to steamroller the NIMBY objectors.

London houses are being bought by bankers not by immigrants! Expanding the housing stock won't bring down prices unless ZIRP and QE also stop, or steps are taken to discourage property speculation.

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Isn't 2020 one of those special years around which many plans are centred. For example Vision 2020 and so on.

It wouldn't be a complete surprise if £650,000 has some significance as well.

It sounds like Unlucky London 2020 more than anything else.

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Agreed - but you just don't get the hysteria.

One young girl in our office - doesn't even yet have a permanent contract - has just bought a flat in Kingston with her partner. It took her months to find a place and always got outbid by cash buyers/BTLs and she just got in early on a property being sold by a downsizing pensioner who was just keen to sell. The congrats all round when she got it from other colleagues - you would think she had one the lottery not a £250k debt on a ground floor flat needing updating with no outside space in zone 6. :D

Until the hysteria and cheap money ends - this could go on for a while yet!

Although if you believe this NHF report even bankers will be on housing benefit in London in 10-15 years - as they won't be able to afford to rent either in the capital! :D

Sounds so depressingly familiar - both the tale and stupid projection in the OP link.

It's far, far, worse than 2007 now. The idea is to sucker in those who weren't ready/able to buy or paying attention in 2000-2007. Quite a few of my younger colleagues (late 20s/early 30s) have bought in the last year. Pointless saying anything. You can highlight general unaffordability, etc. But they are getting to the age where they want to settle down with a plus 1 and escape the scumlords - a buying a house hovel of any kind seems to the only way of doing this (esp. if they have middle class upbringings). Sad to watch them willing sell themselves into slavery.

Not to mention, of course, anyone who thought we were in London bubble in the early 2000s and waited/sold up - probably couldn't afford to buy there now.

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Agreed - but you just don't get the hysteria.

One young girl in our office - doesn't even yet have a permanent contract - has just bought a flat in Kingston with her partner. It took her months to find a place and always got outbid by cash buyers/BTLs and she just got in early on a property being sold by a downsizing pensioner who was just keen to sell. The congrats all round when she got it from other colleagues - you would think she had one the lottery not a £250k debt on a ground floor flat needing updating with no outside space in zone 6. :D

Until the hysteria and cheap money ends - this could go on for a while yet!

Although if you believe this NHF report even bankers will be on housing benefit in London in 10-15 years - as they won't be able to afford to rent either in the capital! :D

That is the mindset now. For years, people have talked about the holy grail of getting onto the 'housing ladder' and how difficult it is, but we are at a totally different level now.

Even though the prices are probably 7-8x higher in cash terms and 3-4x higher in real terms than they were 20 years ago, there is this riduculous level of competition to buy anything halfway decent. 20 years ago there wuld have been a fair bit of competition for truly good houses, now it seems anything in London that is not in a warzone goes to sealed bids!

As you say, the person who actually gets the house after this process feels like the have had a massive victory and this is reinforced by everyone around them, be they jealous 'comptitors' looking to do the same or greedy current homeowners delighted to see the market is still soaring.

There might be a few people who are 'in the know', but they just keep their mouths shut. I certainly do now - even though Iwouldn't buy myself, there is no way that I would advise someone not to buy now and find I was proved wrong again like I have been over the past 10 years.

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