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Killer Bunny

How Awful! M Ps Cannot Afford To Buy In London.

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Suspect this is a play for more dosh, rather than bringing house prices down.

My solution? Move Parliament to Leicester or York.

(Well I say York, prices are loony there too)

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HaHa maybe they should start sending there children to state schools use that money for deposit, they already own homes, they get money for housing and now they can claim for their children.

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It's strange that given the precarious nature of their work that the issue of buying is such a big deal. I guess if they can't buy they can't get the equity that Osborne/Carney are hosing at homeowners though.

It;s not the buying they care about...it's the unearned, tax free lump sump they get after 5 years....or at least, they used to get.

I guess a lot of them that saw the boom years will want to get out at the next election and "cash in"...hence why our futures are all being destroyed now.

Edited by TheCountOfNowhere

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Suspect this is a play for more dosh, rather than bringing house prices down.

That is exactly what it is. They are trying to create this illusion of wealth that would mean houses prices are at the right level and it is just salaries for 'skilled' people that are too low.

It reminds me of that idiot David Trimble a few weeks ago, quoted on TV saying that the Lords were good value because 'you couldn't get any other professional to work for £300 per day' (obviously forgetting that £300 per day is knocking on towards 3x the national average salary).

In reality, it is much worse than this. It is not just the expensive central London boroughs, it is all over. I live right out in zone 6, and our MP lives in a tiny terraced house. He probably couldn't afford to buy that now either.

It is actually a sad indictment that our political class that they have the cheek to highlight a downside of a a bubble that they have been stoking for years and their constituents have been feeling for years.

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I also find it funny how the rhetoric 'I can't afford it on an MPs salary' is used and sounds so similar to nurses/firefighters/police stories of the last 20 years.

Sure, other professional salaries have shot up in banking etc, but saying an MP is underpaid assumes that they could walk into one of these mega-paid positions easily. Often, they couldn't and evne the ones that could may only be able to do so because they were previously a high profile politician.

I think if a lot of MPs went out onto the normal jobs market, they'd actually end up earning LESS than they do now, unlike a lot of nurses/firefighters who would get a payrise just from picking up a relatively menial job.

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It;s not the buying they care about...it's the unearned, tax free lump sump they get after 5 years....or at least, they used to get.

I guess a lot of them that saw the boom years will want to get out at the next election and "cash in"...hence why our futures are all being destroyed now.

Didn't a great number get out at the last election? About a quarter of the total? The gravy train coaches had hardly stopped before the carriage doors flung open and they were pounding towards the exits...

http://news.bbc.co.uk/1/hi/uk_politics/election_2010/8653380.stm

Edited by juvenal

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Suspect this is a play for more dosh, rather than bringing house prices down.

My solution? Move Parliament to Leicester or York.

(Well I say York, prices are loony there too)

Or mars. Or the bottom of the atlantic.

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Amazing that prices have to get sooooo far out of control for our lords and masters to start to identify a problem.

Why the fvck were they ever elected to any position of power and responsibility for making important decisions?

As aSecure Tenant says, the solution will not be to allow prices to fall, it will involve some market interference.

I foresee HTB3, where 20% equity is provided for essential political workers and if the recipient completes a full 4 year term the equity becomes a tax free gift.

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I think they should rent from the MPs that could afford a house and now own several.......just like the new young starters today that are 15 years behind the curve and growing, renting for longer, working for longer. ;)

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This is a real force.

MPs need to be on 5x what they are now to get even a modest property within a commute of work.

Or 20x if they want to go back to the days of MPs easily being able to afford a nice Georgian terrace in Pimlico.

We are beyond any acceptable level of HPI in London now. When you have top end professionals (thinking surgeons not MPs here) unable to afford even the tattiest ex-LA flat there is no way it can be sustainable.

At some point that Chinese/Russian cash tide goes back out.

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This is a real force.

MPs need to be on 5x what they are now to get even a modest property within a commute of work.

Or 20x if they want to go back to the days of MPs easily being able to afford a nice Georgian terrace in Pimlico.

We are beyond any acceptable level of HPI in London now. When you have top end professionals (thinking surgeons not MPs here) unable to afford even the tattiest ex-LA flat there is no way it can be sustainable.

At some point that Chinese/Russian cash tide goes back out.

This. Although I've no idea what the end game is. Are we there now? It's impossible to say - we just don't know what other rabbits they've got left in the hat, or what their willingness is to deploy them.

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At some point that Chinese/Russian cash tide goes back out.

Indeed, but the inherited money from playing the property game will remain for a little while longer.

The ability to buy a house in London today for younger people relates entirely to how much their parents are able to pump in to the purchase rather than how much you earn.

If you are 30 and want to buy a standard terraced housein Fulham for £1m, it doesn't really matter if you earn £20k or £100k a year, you will only get the house if your parents buy it for you. Of course, there are the mega-earners whose income does matter, but there are not actually that many of them.

In turn, the ability of the parents to pump in the money might just as easily come from making a few property investements themselves rather than traditional earnings.

The MPs seem to be suggesting that £250k is quite a standard salary in London because they see their banker friends earning that much, but it is still actually quite exceptional. The market is being kept alive by foreign investment, inherited/gifted money and (to a much lesser extent in prime London) cheap debt.

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This is a real force.

MPs need to be on 5x what they are now to get even a modest property within a commute of work.

Or 20x if they want to go back to the days of MPs easily being able to afford a nice Georgian terrace in Pimlico.

We are beyond any acceptable level of HPI in London now. When you have top end professionals (thinking surgeons not MPs here) unable to afford even the tattiest ex-LA flat there is no way it can be sustainable.

At some point that Chinese/Russian cash tide goes back out.

Chinese and Russian? Maybe, but I think the tide's going out for those guys. Wall Street's shits and monsters is a better guess. They have the wherewithal (thanks to ZIRP/QE) and the sophistication to build short positions against the property indexes and builders even as they're stampeding prices ever higher. Many of them will already have a working familiarity with London geography.

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They have the wherewithal (thanks to ZIRP/QE) and the sophistication to build short positions against the property indexes and builders even as they're stampeding prices ever higher.

Can you expand on this a bit please? I'm genuinely curious. I don't buy the wall of chinese money explanation either. But there is definitely something odd going on.

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Can you expand on this a bit please? I'm genuinely curious. I don't buy the wall of chinese money explanation either. But there is definitely something odd going on.

There are varying reports that only 20-30% of prime London has sold to UK buyers:

http://www.thisismoney.co.uk/money/mortgageshome/article-2340858/85-homes-Central-London-sold-overseas-buyers.html

http://www.thisismoney.co.uk/money/mortgageshome/article-2394704/Foreign-investors-snap-70-new-build-homes-central-London.html

http://www.theguardian.com/business/2014/feb/01/rich-overseas-investors-uk-eu-housing-market

There is another graph I've posted previously that most of the transactions in London last year were over £900K.

This is what is causing the boom headlines.

Everyone else is valuing their properties based on this phenomenon.

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I don't buy the wall of chinese money explanation either. But there is definitely something odd going on.

Chinese bought £350 Bns London property last year alone.

:o

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This is a real force.

MPs need to be on 5x what they are now to get even a modest property within a commute of work.

Or 20x if they want to go back to the days of MPs easily being able to afford a nice Georgian terrace in Pimlico.

We are beyond any acceptable level of HPI in London now. When you have top end professionals (thinking surgeons not MPs here) unable to afford even the tattiest ex-LA flat there is no way it can be sustainable.

At some point that Chinese/Russian cash tide goes back out.

well we are supposed to pay them for managing the country.

obviously they are not very good at their job.

if they think they can bleat and wail and get a raise then I've got some bad news.

performance related pay from now on it is.....GDP-RPI.

..just be thankful we're not backdating it.(and you're getting off lightly...take your licks like grown-ups or we'll throw in the electronic tags, clocking -in machines and "house of commons" publicly disclosed expense debit cards)..if you want dirty movies and duck ponds they are coming out of YOUR pocket, not ours.

AT THIS STAGE THE SWEETIES AND VISITING HOURS TO THE SWEETSHOP ARE MERELY BEING RATIONED....IT CAN GET WORSE IF YOU PUSH IT.

if you don't get the hint I guess we might have to try the french/chinese approcah.

GROW THE F*** UP

Edited by oracle

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