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Lbc Now - 80K Income Needed To Rent In London. Btl To Blame

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£80K is about right. I can just afford to rent in London (zone 3) and that's just about our combined salary. BTL is not the problem though. It's HOUSING BENEFIT and TAX CREDITS.

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Only need a Mc job, five people to rent one room, can't see the problem unless your mattress is the one next to the door. Doesn't the government want us all to live like this so we can "compete" with the far east?

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Brilliant. London has priced itself out of the global economy.

Personally, I'd rather earn 20K and live in Wales near beaches and countryside than a 100K a year just to be a wage slave in London. The country is fecked and all the greedy London journos, politicians and senior execs are too greedy and too stupid to realise that the seeds of our own doom are flourishing.

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£80K is about right. I can just afford to rent in London (zone 3) and that's just about our combined salary. BTL is not the problem though. It's HOUSING BENEFIT and TAX CREDITS.

+1

Dont forget council tax support. In the area i rent a band b flat thats another 1k freebie if you qualify.

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I think less than 5% of the population earn over 45K so, if true, then the 80K and above lot must be, what, less than 3%?

@resi_analyst tweeted this pic this morning. The green areas are predominantly social rented so I guess a great many Londoners can't afford the 'market' rents. Social rented in green, red outright owned (posh areas generally).

BiHvRiFCUAA9Hsa.jpg

Thats still a lot of green for the property hoarders to chip away at.

Edited by aSecureTenant

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£80,000 to me is a fortune. A lifetime of savings.

11 Oct 2012 at 10:18 AM

Inside Straight: London Partners Can’t Afford Homes

...As an expatriate American, this startled me: I’m confident there’s no American city where senior partners at major law firms can’t afford local real estate. But in London, this has the ring of truth to it. From an American’s perspective, everything in London is nauseatingly expensive (or “quite dear,” as the locals so quaintly put it). But the cost of housing goes far beyond “nauseatingly expensive”; it’s eye-poppingly, grab-your-chest-and-drop-to-the-ground, out of sight. It leaves partner pay in the dust. Here’s what I mean . . . .

I just rented a perfectly nice (but small) two-bedroom, two-bath apartment (or “flat,” as the locals say) in a perfectly nice building in a perfectly nice part of town. But I by no means moved into a medium-sized or large flat in the nicest building in the best part of town. I poked around online to do some research for this blog post. A similar unit in my building — a two-bedroom, two-bath, 1370-square-foot apartment — sold within the last year for GBP 2.5 million. That’s roughly USD 4 million, or $3,000 per square foot.

That’s ten times what you’ll pay for great space in Chicago and something like three times what you’ll pay for nice space in New York. I’ll call that confirmation of my misleading headline: Many senior partners at major law firms in London can’t afford to live in the city in which they work.

http://abovethelaw.com/2012/10/inside-straight-london-partners-cant-afford-homes/

Thats still a lot of green for the property hoarders to chip away at.

I like that image. Such a crisis... policy help young people afford to pay/buy/rent for what older VIs own.

“Landlords, like all other men, love to reap where they never sowed,” Karl Marx once famously said.

http://www.lawyersweekly.com.au/folklaw/the-price-not-right-for-london-lawyer

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@resi_analyst tweeted this pic this morning. The green areas are predominantly social rented so I guess a great many Londoners can't afford the 'market' rents. Social rented in green, red outright owned (posh areas generally).

BiHvRiFCUAA9Hsa.jpg

Thats still a lot of green for the property hoarders to chip away at.

Nice map. Indeed a good chunk south of the river where gentrification awaits (North of the South London Line now Overground which brings out "wrong side of the tracks" again.)

Again Savills are funding and doing some interesting work.

The Orange areas around Wandsworth / Clapham back up the mortage debt at a post code level from several months ago thread

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Dogs can't get mortgages?

You need a mortgage to get shared ownership. You pay rent on the property and your mortgage is for the deposit or key money for the secure tenancy. Genius that could only be cooked up in a Rentier State.

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Nice map. Indeed a good chunk south of the river where gentrification awaits (North of the South London Line now Overground which brings out "wrong side of the tracks" again.)

Again Savills are funding and doing some interesting work.

The Orange areas around Wandsworth / Clapham back up the mortage debt at a post code level from several months ago thread

This is census data. You can download the data yourself and produce a similar chart. It's not magic Savills research.

If you don't have the skills, there are mapping tools on the government website that can do some of this

http://www.neighbourhood.statistics.gov.uk/dissemination/LeadThematic.do?a=7&b=6287000&c=wandsworth+001a&d=141&e=7&f=30604&g=6339582&i=1001x1003x1004x1005&l=2482&o=362&m=0&r=1&s=1394207739453&enc=1

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This is census data. You can download the data yourself and produce a similar chart. It's not magic Savills research.

If you don't have the skills, there are mapping tools on the government website that can do some of this

http://www.neighbour...207739453&enc=1

I last did that kind of stuff about 5 years ago. I'm guessing it should be a lot easier now but lots of work is still required to filter the data before it goes near a map. The Savills map is also at a very granual level that show up road rail and river very well...

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How many people in the UK earn 80K?

My wife for one and the best part is that she is married to me and I have managed her expectations with regards to property ownership so now we are perfectly content living in our East Midlands 3 bedroom semi carrying low debt. The reason I say this is that by not purchasing our her dream £500k home we are not justifying the hundreds of other similarly priced properties that are awaiting new blood (folks can't downsize, sidestep forever and that is when the correction will happen outside of *London at least).

*London is a different kettle of fish and having lived there for 5 years I don't understand the appeal.

Edited by longtomsilver2

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I think less than 5% of the population earn over 45K so, if true, then the 80K and above lot must be, what, less than 3%?

Some data here:

http://en.wikipedia...._United_Kingdom

Last year £50,500 plus put you in the top 10%.

You have to remember there is a difference between London and elsewhere in the UK, and unless you are actually in London you might miss at first hand the skewing effect London can have on averages.

From my own experience in IT Sales, a fairly standard salary expectation in the South East with a vendor will be be £50-60k base with OTEs of £100-120k. If you are good you can go higher than that on the base and also bump up your commission. I have heard of a few guys having the odd really good year and taking in £300k, though of f course they don't do that every year, as normally the target then goes up. The trick to making £300k is to have an uncapped sales plan, ideally with accelerators and then as luck/sales management misjudgement would have it an easy target - that isn't so easy in established vendors with established territories and products, but can certainly happen in a start up. That said, IT Sales isn't what is was, I do know a few guys from a large vendor I used to work for who had £700k+ years back in the 1990s.

The one thing I will say, is that if you go back to the chart, a lot of the 89,000 earning between £200 and £500k, won't do that every year. Granted there will be some business owners in there who do earn that regularly and some footballers, actors etc , but for the sales guys many will move in the band just once in their life - I think the companies are willing to pay a few employees big money as it does make the others work harder - tournament theory.

£70,000 to £100,000 410,000 £100,000 to £200,000 300,000 £200,000 to £500,000 89,000 £500,000 to £1 million 16,000 Over £1 million 6,000

Edited by Mikhail Liebenstein

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@resi_analyst tweeted this pic this morning. The green areas are predominantly social rented so I guess a great many Londoners can't afford the 'market' rents. Social rented in green, red outright owned (posh areas generally).

BiHvRiFCUAA9Hsa.jpg

Thats still a lot of green for the property hoarders to chip away at.

Would be interesting to see how much of the 'private rented' sections are owned outright or carrying mortgages.

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Dogs can't get mortgages?

Oh yes! When they lie! :lol:

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PS why does the only bit of shared ownership (yellow) appear to be Battersea dogs home and the redundant Gas holders? (I'm completely serious)

Could that be where Boris's sister went on 'safari'?

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Only need a Mc job, five people to rent one room, can't see the problem unless your mattress is the one next to the door. Doesn't the government want us all to live like this so we can "compete" with the far east?

Apparently so. There's been a meme for some years now about how we must all "compete with China". That's basically saying that all human life is cheap and you only exist to make wealth for somebody else.

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