Jump to content
House Price Crash Forum
worried1

London Prices 50% Up On 2010

Recommended Posts

I just caught the end of this piece and can't find a link on the website, but there was a report on the BBC Breakfast London news this morning calmly announcing that London buyers are now paying on average 50% more for houses than they were in 2010.

The average paid according to their survey is £450k now compared to £300k in 2010.

This is in line with what I have been seeing so the news itself comes as no surprise, but it is still quite galling to see it reported in such a calm and slightly positive fashion.

For someone earning £40k a year (£30k after tax) trying to buy the 'average' house that increase has effectively wiped out every penny that they have earned in the last five years.

On the other hand, if you are lucky enough to own two houses, why bother working at all unless you earn well into six figures?

Share this post


Link to post
Share on other sites

Ahh, the BBC, they even had some bloke on Holby sitting telling us all how prices had shot up in the last 3 years.

Is there any mention mof criminality skewing the figures ?

Any mention of the over seas collapses which has stopped foreign buyers ?

Any mention of the massive over supply ?

Any mention of the insane government pyramid support schemes ?

Any mention of how much MPs have pwersonally benefitted from this ?

Hmmmm, thought not.

Edited by TheCountOfNowhere

Share this post


Link to post
Share on other sites

Any mention of how "rich overseas buyers" have been setting prices and how local people are moving out. Any mention how it's the 2nd priciest city in the world after Monaco for goodness sake.

Edited by billybong

Share this post


Link to post
Share on other sites

The downturn prompted about 250,000 people to leave the construction industry, says Patrick Law, corporate affairs director of Barratt Developments, one of the UK's biggest house builders. Now that demand has returned, there is a skills shortage, with bricklayers, carpenters and joiners in short supply.

The Federation of Master Builders' chief executive, Brian Berry, asks: "How much stronger would the pace of growth in the UK construction industry be if we had an ample supply of skilled trades people?"

The Local Government Association agrees. "We've trained too many hairdressers and not enough bricklayers," says chairman, Gary Porter.

You couldn't trust anyone to build a house who can't plan that far ahead when the so called problem has been in the news for years.

Despite the skills shortages, the number of homes being built by the private sector has risen sharply in recent years. Barratt is building more than 14,000 houses a year, with the completion rate now 40% higher than it was in 2011, Mr Law says.

That sounds untrue for the private sector as the total number of houses built a year has fallen significantly over recent years since about the time of the economic collapse and it's made up mainly of private sector builds.

_82595283_uk_house_building_624v2.gif

Edited by billybong

Share this post


Link to post
Share on other sites

Incidentally the above point about training too many hairdressers seems very misleading


http://

www.theguardian.com/money/2002/apr/21/wageslaves.careers

Also, like cooking, it is numerically dominated by women - about 90% of the UK's 120,000 hairdressers are female - but most of the star names are men.

No doubt the figures are a bit different since 2002 but for sure the general principle/proportions will likely still apply.

If they are going to give reasons for a shortage of bricklayers and building labour (mostly men - probably well more than 90%) they might at least be a bit more accurate with their reasons.

From ask.com


According to the Hair and Beauty Industry Authority of the United Kingdom, or Habia, there were 35,704 hair salons in the United Kingdom in 2012. Habia also reported that 245,795 people were employed in the hair and beauty industry in 2012. Know MoreFull Answer

The people employed in the hair and beauty industry make up about 0.87 percent of the country's total workforce. The industry has 90 percent female workers and only 10 percent male workers. Self-employed workers make up 42.2 percent of the industry workforce, while 57.8 percent of the workers are employed by someone else. Workplaces in the industry that have between one and 10 workers make up 93.5 percent of all workplaces.

Edited by billybong

Share this post


Link to post
Share on other sites

Where's the money coming from? Doesn't every millionaire in the world have a London flat by now?

I really can't see any hope for the future any more. There'll seemingly never be a correction sufficient to wipe out the nominal gains since the turn of the century, and so all my effort to save has been made worthless. As worried1 points out, houses are increasing in price more than I earn gross each year.

Moving to London was a big change for provincial and risk-averse me, but all I do is work. No pay rise for four years due to the financial crisis, but I watch homeowners get 'richer' by the week. The dating scene might be bigger but I feel kind of ridiculous trying to date while negotiating with housemates like a student.

Honestly, what's the point? The company I work for exports all over the world - but what am I actually getting out of this deal?

Anyone fancies living in London, don't bother. You can't afford it.

Share this post


Link to post
Share on other sites

Where's the money coming from? Doesn't every millionaire in the world have a London flat by now?

I really can't see any hope for the future any more. There'll seemingly never be a correction sufficient to wipe out the nominal gains since the turn of the century, and so all my effort to save has been made worthless. As worried1 points out, houses are increasing in price more than I earn gross each year.

Moving to London was a big change for provincial and risk-averse me, but all I do is work. No pay rise for four years due to the financial crisis, but I watch homeowners get 'richer' by the week. The dating scene might be bigger but I feel kind of ridiculous trying to date while negotiating with housemates like a student.

Honestly, what's the point? The company I work for exports all over the world - but what am I actually getting out of this deal?

Anyone fancies living in London, don't bother. You can't afford it.

Unfortunately I agree with you.

It's all too late now. Anything but a huge 50%+ crash would make it worthwhile for me to buy - that still means around £100K for a 3-bed semi in Northampton FFS. That's still me accepting a price for a property that's outpaced inflation and wages considerably.

Not going to happen anyway.

The plan was - save hard, buy a home for your family, prosper reasonably, retire, reasonable pension - and contribute to society via taxes.

This plan is not possible now. You must choose some of the above, not all of the above (asides from tax paying, which is not a choice). Perhaps even retirement won't be an option when I get to my late 60s. Maybe the state pension will disappear. What sort of demographic will the UK have in even 5 years' time? 10 years? It's changing so fast. We're being swamped by low-cost labour. Automation is decimating/will decimate manufacturing and even many services. The government are serving big business. The changes in the economy and society seem to be accelerating. We have a potemkin economy - under the veneer of "recovery", it's a sclerotic mess.

My savings are all I have as an escape plan. Do I gamble it all and then borrow - just to buy a house in the UK?

Share this post


Link to post
Share on other sites

London house prices have made London a closed shop.....only open to the very wealthy.

London is destroying its potential future....it is not accommodating any longer to its own working people or enterprising hard working outsiders......unless they are prepared to become slaves to rentiers..... Look outside, there are lots of opportunities is other more welcoming places where your hard work will be valued, and you know what you put into it you will get out of it......London no longer offers that option.

Share this post


Link to post
Share on other sites

The plan was - save hard, buy a home for your family, prosper reasonably, retire, reasonable pension - and contribute to society via taxes.

This plan is not possible now. You must choose some of the above, not all of the above (asides from tax paying, which is not a choice).

I've been thinking about those points for the last few years and trying to imagine the consequences (still working on it).

Once you can no longer pay for education, housing and pension in a lifetime, something is seriously wrong. I'm in my late 40's and its not a problem for me but for my kids, I see no chance for them to have what I did.

The best I think I can do for them is:

1. Tell them to avoid mainstream universities and the £50K bill (+RPI++). Get a degree part-time whilst working so you end up qualified with experience and no debt.

2. Build annexes in the garden so they can live independently (plenty of space). Move out when they want.

3. Teach them about tax, financial services and all the ways the value of your labour gets taken from you

4. How to pick a nice care home :)

Share this post


Link to post
Share on other sites

Where's the money coming from? Doesn't every millionaire in the world have a London flat by now?

I really can't see any hope for the future any more. There'll seemingly never be a correction sufficient to wipe out the nominal gains since the turn of the century, and so all my effort to save has been made worthless. As worried1 points out, houses are increasing in price more than I earn gross each year.

Moving to London was a big change for provincial and risk-averse me, but all I do is work. No pay rise for four years due to the financial crisis, but I watch homeowners get 'richer' by the week. The dating scene might be bigger but I feel kind of ridiculous trying to date while negotiating with housemates like a student.

Honestly, what's the point? The company I work for exports all over the world - but what am I actually getting out of this deal?

Anyone fancies living in London, don't bother. You can't afford it.

What do you work as - and is ther nowhere else in the UK you can get similar work ?

Share this post


Link to post
Share on other sites

Any talk of volumes ? A rics report today has a record low on average properties for sale per agent. The worry seems to be long term worry agents will not have enough to sell.

Share this post


Link to post
Share on other sites

My mum has just phoned to say she's bought a flat in London

"they nearly snapped my hand off y'know... properties are going up all the time, I'm jolly lucky to have got in now...bricks and mortar... they are not making any more land y'know blah blah... it's an investment"

Mum has previously lost 200K on "property investments" after getting her brain fried watching too much Homes Under Da Hammer.

Share this post


Link to post
Share on other sites

Ouch - seems she has missed the top by a good 6 months at least. On the wrong side, Ouch. Make that 200 a 400. :ph34r:

Share this post


Link to post
Share on other sites

Where's the money coming from? Doesn't every millionaire in the world have a London flat by now?

I really can't see any hope for the future any more. There'll seemingly never be a correction sufficient to wipe out the nominal gains since the turn of the century, and so all my effort to save has been made worthless. As worried1 points out, houses are increasing in price more than I earn gross each year.

Moving to London was a big change for provincial and risk-averse me, but all I do is work. No pay rise for four years due to the financial crisis, but I watch homeowners get 'richer' by the week. The dating scene might be bigger but I feel kind of ridiculous trying to date while negotiating with housemates like a student.

Honestly, what's the point? The company I work for exports all over the world - but what am I actually getting out of this deal?

Anyone fancies living in London, don't bother. You can't afford it.

You could retire in luxury on 200K in many many places in this world. Or you could lock it into British bricks.

I honestly can't agree more with some of the posts so far in this thread. It's an impossible situation: you think it can't get any worse since prices for even slave boxes are insane but with people falling over each other to bid up the market and the lack of supply all the fundamentals for HPI are there so guess what happens!

I work in the City writing trading algorithms for an Investment Bank: came down here a year and a half ago, working class lad, from the provinces, poor family etc. to get on my bike and make something of myself, but houses down here have earned more than even my relatively decent earning per year so there's honestly not much point anymore: that dream of working hard in life is pretty much dead when there's such a levy sucked out of the ambitious/productive economy ('coz we all need a roof right?).

With returns in the grossly propped up housing market where they are (i.e. well above equity/bond/any other asset class benchmark indices) inheriting a house or two and being part of that vested interest cartel almost trumps even being a hedge fund manager or setting up your own business! Mental.

I think if I don't get a promotion or two in the next few years (god knows I'll need the money down here!) then I'm offski back up north, set up a business in Birmingham or Manchester or something, if I could make 200K doing something genuinely productive up there without getting raped too much in rent (aka serfdom-tax) then I'll happily retire in Spain/Italy or somewhere nice that I actually want to live that's not full of greedy middle class baby boomer morons

... I'd only disagree about the dating scene: most women I've met down here always just seem to be looking for the next best thing all the time - give me a nice down to earth northern lass any day!

Share this post


Link to post
Share on other sites

I'll happily retire in Spain/Italy or somewhere nice that I actually want to live that's not full of greedy middle class baby boomer morons

Well, there and it Italy probably especially so, you will be in an awe when you realise how moronic and expropriating is state bureaucracy, it will "compensate" for a lot of upsides the life may have there. Sure if no business run out, then 50% more palatable

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now

  • Recently Browsing   0 members

    No registered users viewing this page.

  • The Prime Minister stated that there were three Brexit options available to the UK:   32 members have voted

    1. 1. Which of the Prime Minister's options would you choose?


      • Leave with the negotiated deal
      • Remain
      • Leave with no deal

    Please sign in or register to vote in this poll. View topic


×

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.