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House Prices And The 95Th Income Percentile

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FT leading today with the fact that large swathes of London are now unaffordable to the 95th income percentile, (what hope the rest of us!). An accompanying on-line story has a great little infographic, Britain’s middle class squeezed by soaring property prices.

This is a screen grab of the chart at 2007.

Mods: I've paid due heed to not quoting at length from FT articles. If the screen grab is also a no-no, please remove it from the post, or ask me to do the same.

EDITED BY MODERATOR -- WE ARE ON OUR LAST WARNING FROM THE FT SO WE HAD TO REMOVE SCREENGRAB - SORRY

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EDITED BY MODERATOR -- WE ARE ON OUR LAST WARNING FROM THE FT SO WE HAD TO REMOVE SCREENGRAB - SORRY

Mods: Oops - thanks for removing it. I'll know for next time.

IMO well worth the time and effort of signing up.

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FT leading today with the fact that large swathes of London are now unaffordable to the 95th income percentile, (what hope the rest of us!). An accompanying on-line story has a great little infographic, Britain’s middle class squeezed by soaring property prices.

This is a screen grab of the chart at 2007.

Mods: I've paid due heed to not quoting at length from FT articles. If the screen grab is also a no-no, please remove it from the post, or ask me to do the same.

EDITED BY MODERATOR -- WE ARE ON OUR LAST WARNING FROM THE FT SO WE HAD TO REMOVE SCREENGRAB - SORRY

Just sign in --- and read that article.

I have to say --- it is breathtaking...

London is going completely mad -- madder and madder....

AND -- The Letters/Comments after the article - put in by signed up FT readers -- they are ANGRY and INCREDULOUS -- 97% of them are screaming for and end to be put to all this -- tax these properties owned by shadowy non-doms --- it is RUINING London --

It is really interesting to see that SO MANY people -- not just the handful here on HPC -- are ANGRY and disgusted by all this....

Edited by eric pebble

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What's the point, the damage has been done and no government is prepared to do anything to reverse this trend. Banks must be saved at all costs even if it brings misery to the swathes of the masses. HPI is the only goal, we must have HPI because it fools the sheeple that they are getting wealthy when everything else around them is making them poorer. It is morally and socially wrong and is ruining peoples lives (including my own) and killing aspiration but when has any government had any ethics?

Guido Fawkes had the right idea.

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Just sign in --- and read that article.

I have to say --- it is breathtaking...

London is going completely mad -- madder and madder....

AND -- The Letters/Comments after the article - put in by signed up FT readers -- they are ANGRY and INCREDULOUS -- 97% of them are screaming for and end to be put to all this -- tax these properties owned by shadowy non-doms --- it is RUINING London --

It is really interesting to see that SO MANY people -- not just the handful here on HPC -- are ANGRY and disgusted by all this....

Ah sure, everyone complains on the internet.

To the OP: follow Alphaville if you can't be bothered with Murdoch's campaign against fair dealing.

I understand the objection to knicking charts - you can't make an excerpt, it's all or nothing.

Edited by okaycuckoo

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I do wonder how many properties are actually selling in London, and who's buying them.

I can accept there are more foreign buyers, maybe even double the normal rate.

But that would not account for the entire greater London area - London is much bigger than Chelsea.

Equally, I would not like to be holding a London mortgage when the market turns.

And dont say London is different. It was very different 90-84 when the market tanked in real + nominal values.

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Just sign in --- and read that article.

I have to say --- it is breathtaking...

London is going completely mad -- madder and madder....

AND -- The Letters/Comments after the article - put in by signed up FT readers -- they are ANGRY and INCREDULOUS -- 97% of them are screaming for and end to be put to all this -- tax these properties owned by shadowy non-doms --- it is RUINING London --

It is really interesting to see that SO MANY people -- not just the handful here on HPC -- are ANGRY and disgusted by all this....

People are basically selfish, your typical FT reader (low to mid level financial services worker) cannot now afford to live in large parts of London so NOW they complain. When nurses, teachers etc couldn't afford to live there (i.e. most of the last two decades), we didn't hear a word from them.

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I do wonder how many properties are actually selling in London, and who's buying them.

I can accept there are more foreign buyers, maybe even double the normal rate.

But that would not account for the entire greater London area - London is much bigger than Chelsea.

Equally, I would not like to be holding a London mortgage when the market turns.

And dont say London is different. It was very different 90-84 when the market tanked in real + nominal values

It's bigger than Chelsea I think. There are vast swathes of Hampstead as well, plus all the new-build flats in docklands, all along the river and elsewhere that are the only properties Asian investors will touch

Edited by Eddie_George

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I understand the objection to knicking charts - you can't make an excerpt, it's all or nothing.

It's not a chart - it's a really nice piece of work. You can zoom in and zoom out of the UK and look at the affordability data for each year from 2012 back to the early nineties. Well worth a look.

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The affordability level is fixed at 35 per cent of net income, as per official guidelines.

So, is this affordability at historically low interest rates, but at 7x salary multiples?

Edited by Eddie_George

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FT seems to be running a series of articles like this, about professionals or middle class people being forced out. There was one about Oxford becoming the preserve of what they called the uber-middle class and forcing academics out and so on. It's good stuff.

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People are basically selfish, your typical FT reader (low to mid level financial services worker) cannot now afford to live in large parts of London so NOW they complain. When nurses, teachers etc couldn't afford to live there (i.e. most of the last two decades), we didn't hear a word from them.

Sad but true.

They will also mostly vote for Boris, Dave/Osbo and believe markets are always right.

Amusing really.

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Sad but true.

They will also mostly vote for Boris, Dave/Osbo and believe markets are always right.

Amusing really.

A vote for Boris or Dave isn't a vote for the market.

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Can anyone help me...

Are all the data in that map (worth registering for... I just did) based on local income data too?

I would assume so. Local 95th percentile incomes are available for free from ONS. You could reproduce this yourself.

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Sad but true.

They will also mostly vote for Boris, Dave/Osbo and believe markets are always right.

Amusing really.

I think they will turn quickly. They'll forget about Boris in less than ten seconds. The world is undergoing a spate of popular uprisings. Many of the revolutions that we have seen so far have been driven by the middle classes.

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I think they will turn quickly. They'll forget about Boris in less than ten seconds. The world is undergoing a spate of popular uprisings. Many of the revolutions that we have seen so far have been driven by the middle classes.

I've been hearing a lot of this today in other contexts. I wonder if a more accurate description is "when it affects the middle classes, then you've pissed off too many people..."

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Just sign in --- and read that article.

I have to say --- it is breathtaking...

London is going completely mad -- madder and madder....

AND -- The Letters/Comments after the article - put in by signed up FT readers -- they are ANGRY and INCREDULOUS -- 97% of them are screaming for and end to be put to all this -- tax these properties owned by shadowy non-doms --- it is RUINING London --

It is really interesting to see that SO MANY people -- not just the handful here on HPC -- are ANGRY and disgusted by all this....

http://www.alexa.com/siteinfo/housepricecrash.co.uk

Yet hpc traffic appears at a low point again :unsure:

(I appreciate alexa can be unreliable)

hpc low on alexa feb 14.PNG

post-17-0-27441100-1393180430_thumb.png

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It's not a chart - it's a really nice piece of work. You can zoom in and zoom out of the UK and look at the affordability data for each year from 2012 back to the early nineties. Well worth a look.

Brilliant interactive map.....Much of London in the red. ;)

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http://

english.hani.co.kr/arti/english_edition/e_editorial/622333.html

Comparative Comebacks: Japan and the United Kingdom

Inflation adjusted house prices are now more double what they were in the middle of the 1990s. The median house in the U.K. costs about 50 percent more than in the United States even though its per capita income is around 20 percent less. Those who believe that this striking difference is due to the fact that the U.K. is a small island whereas the United States is a huge continental country, must explain why this distinction suddenly started having such a large effect on house prices. House prices in the United States were higher than in the U.K. in the 1990s.

 As everyone should know by now the story of bubbles is not a pretty one. They burst and ruin dreams and lives. Heavily leverage homeowners will see their equity vanish and find themselves owing more than the value of their home. The demand that was driven by illusory bubble-generated housing equity will disappear with the bubble. This will give the U.K. with yet another recession, possibly accompanied by a new financial crisis, as lenders are hit with another flood of bad mortgages.

Found this link on another forum. Even Korean newspapers can see the craziness - and it's a free read.

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