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StainlessSteelCat

London House Prices Sucking Cash Out Of The Economy

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Been saying this for years , I don't think its just the central London prices either.Prices on outskirts once you factor in travel costs are not affordable either.

I do love how the answer again is build more houses ...which is pointless if the same people buy them up to rent out !!

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A couple of City AM peices this morning on this topic:

"Rocketing house prices cost London £1bn"

"Employee exodus: the housing crisis is now a dire threat to the future of Londons business"

Specific references made to lack of disposable income and the effects this has on the economy, well duh we've only been saying this on HPC for what the last 10 years or so.

Edited by goldbug9999

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The Grauniad and City AM stories (and a similar one in the Torygraph http://www.telegraph.co.uk/finance/economics/11925071/Revealed-The-3bn-cost-of-Londons-housing-crisis.html) are about a report published by a campaign group called "Fifty Thousand Homes". The report is based on research by the Centre for Economics and Business Research. Interestingly "Fifty Thousand Homes" is, according to London First (http://londonfirst.co.uk/fifty-thousand-homes/), a "business-led campaign".

So the wailing and gnashing of teeth appears to be coming from part of the business community. About time they woke up to the problem, but hey, I suppose it's something.

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Been saying this for years , I don't think its just the central London prices either.Prices on outskirts once you factor in travel costs are not affordable either.

I do love how the answer again is build more houses ...which is pointless if the same people buy them up to rent out !!

Well it cant hurt thats for sure. Anyway whilst effect of a marginal increase in supply will be small, there is a supply tipping point somewhere where the prices would become driven by competition between rentals rather than competition between renters.

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Well it cant hurt thats for sure. Anyway whilst effect of a marginal increase in supply will be small, there is a supply tipping point somewhere where the prices would become driven by competition between rentals rather than competition between renters.

No it can't but are the homes they build actually going to be affordable

The prices in London are having effect in my town , Luton ..prices up 14.9 in a year.£182k to £209 avg price

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Been saying this for years , I don't think its just the central London prices either.Prices on outskirts once you factor in travel costs are not affordable either.

I do love how the answer again is build more houses ...which is pointless if the same people buy them up to rent out !!

Well you know what the answer was before....stick them in the army...break it down to build it up.

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Been saying this for years , I don't think its just the central London prices either.Prices on outskirts once you factor in travel costs are not affordable either.

I do love how the answer again is build more houses ...which is pointless if the same people buy them up to rent out !!

I live within decent commuting distance of London. Asking prices are insane here. Rental prices are now trying to catch up, presumably because of Londoners exiting the capital. Had this new build beauty pop up in one of my Rightmove alerts a few days ago:

http://www.rightmove.co.uk/property-to-rent/property-54872171.html?utm_content=v2-ealertspropertyimage&utm_medium=email&utm_source=emailupdates&utm_campaign=emailupdatesinstant&utm_term=letting&sc_id=18430123&onetime_FromEmail=true

With the median local income at just over £18,500, more problems loom.

So we're moving away from commuter belt to the country for £950PCM for a 4 bed detached cul-de-sac south backing garden. To me £950PCM is still too much to pay for a roof over us, but it would cost circa £1700PCM in SE Essex for a similar property.

Madness.

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Because wealth is not evenly distributed in this country of ours and most jobs there is a top limit that can be earned, and because income has not kept up with land asset prices only means more and more people are stuck living in a home they can not afford to move....There is no ladder.....so the only thing for those with some equity is to capitalise any profits and move away.....this is good for other places because it brings good people and good businesses into their area.....hopefully the London bubble will turn out to be advantageous for other parts of the country.....London refugees.

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The Grauniad and City AM stories (and a similar one in the Torygraph http://www.telegraph.co.uk/finance/economics/11925071/Revealed-The-3bn-cost-of-Londons-housing-crisis.html) are about a report published by a campaign group called "Fifty Thousand Homes". The report is based on research by the Centre for Economics and Business Research. Interestingly "Fifty Thousand Homes" is, according to London First (http://londonfirst.co.uk/fifty-thousand-homes/), a "business-led campaign".

So the wailing and gnashing of teeth appears to be coming from part of the business community. About time they woke up to the problem, but hey, I suppose it's something.

That'll be the 'independent' CEBR that also trumpets price rises, london centric everything and lobbies against property taxes, so not at all about self-interest. Identify the problem (unaffordable housing) then propose a solution that does nothing to address it (building more in the most expensive areas for even greater concentration of agglomeration impact, to make them even more unaffordable). Same as always.

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That'll be the 'independent' CEBR that also trumpets price rises, london centric everything and lobbies against property taxes, so not at all about self-interest. Identify the problem (unaffordable housing) then propose a solution that does nothing to address it (building more in the most expensive areas for even greater concentration of agglomeration impact, to make them even more unaffordable). Same as always.

I did think the name "London First" was a teensy bit of a giveaway.

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I live within decent commuting distance of London. Asking prices are insane here. Rental prices are now trying to catch up, presumably because of Londoners exiting the capital. Had this new build beauty pop up in one of my Rightmove alerts a few days ago:

http://www.rightmove.co.uk/property-to-rent/property-54872171.html?utm_content=v2-ealertspropertyimage&utm_medium=email&utm_source=emailupdates&utm_campaign=emailupdatesinstant&utm_term=letting&sc_id=18430123&onetime_FromEmail=true

With the median local income at just over £18,500, more problems loom.

So we're moving away from commuter belt to the country for £950PCM for a 4 bed detached cul-de-sac south backing garden. To me £950PCM is still too much to pay for a roof over us, but it would cost circa £1700PCM in SE Essex for a similar property.

Madness.

http://www.rightmove.co.uk/property-to-rent/property-26611707.html

Brief Description changed: WIGMORE WONDER! - WONDER This two bedroom end of terrace semi detached house is has recently been refurbished to a high standard available to a professional family or sharer's. The property boasts an entrance hall, lounge diner with a conservatory. Upstairs there is one double and single bedroom, Call now!
Price changed: from '£825 pcm' to '£925 pcm'
Status changed: from 'null' to 'Available'
13/08/2014
Price changed: from '£750 pcm' to '£825 pcm'
Subtitle changed: 2 bedroom semi-detached house
Title changed: Beanly Beanley Close, Luton

Same all over Luton , rents are crazy now....

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Same all over Luton , rents are crazy now....

It will all fall back imo.

Buy this Luton plot and park a caravan? #74 Only joking - no way. Doubt permission would be given for a Japanese style micro house. (Was withdrawn from last month's auction, re-entered into this). Handy for the train.

http://www.auction.co.uk/residential/LotDetails.asp?A=935&MP=24&ID=935000076&S=L&O=A

Some interesting parcels of land been coming to auction in last few months.... lot of garage blocks going into a few auctions ahead, and a few other properties which paint something of a story. Rental property being sold off. Bungalow in Poole with 2002 guide price (£150K+ iirc), that was recently attempted to let out at £950pm.

Edited by Venger

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I wonder if the government now tests the waters for new policies by putting them in the press first, or perhaps this is how they "warn" the public of impending policies (like they did with the BTL changes). Lots of very bearish articles about London property (and HPI in general) recently.

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Its the whole SE, not just London. I am doing 6 months more here then moving back to the Midlands/North. I'd probably take half my salary as well. I don't see the point in working for a living down here, its a mugs game. I refuse to upgrade my accommodation as I simply can't get my Midlands brain to compute with the prices down here (and consequently I am in a property that a refugee would probably refuse). Can't wait to get as far away from London as possible. People are seriously struggling down here while landlords compare their portfolio sizes.

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As a Londoner, I know that there are plenty of houses in London, we just pay people who don't need to live in London to live in them.

If after 6 months HB no wages we said to people you have to move, prices would drop. Even though I have 25% LTV mortgage I would be in danger of negative equity. Although that would go over time and I can't afford to move anyway so I wouldn't mind.

Sadly this is not going to happen.

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Been saying this for years , I don't think its just the central London prices either.Prices on outskirts once you factor in travel costs are not affordable either.

I do love how the answer again is build more houses ...which is pointless if the same people buy them up to rent out !!

Yes building more houses to sell at the same prices to fix the problem..... A sort of oxymoron.

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As a Londoner, I know that there are plenty of houses in London, we just pay people who don't need to live in London to live in them.

If after 6 months HB no wages we said to people you have to move, prices would drop. Even though I have 25% LTV mortgage I would be in danger of negative equity. Although that would go over time and I can't afford to move anyway so I wouldn't mind.

Sadly this is not going to happen.

So you are saying to live in London you have to have a London job.......London is a home for very many people both rich and poor, being born there or having a strong network of family and friends there is a good reason and a need to live there......or are you saying only the rich coming from anywhere are the only ones worthy or entitled to live there.... Don't think so.

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So you are saying to live in London you have to have a London job.......London is a home for very many people both rich and poor, being born there or having a strong network of family and friends there is a good reason and a need to live there......or are you saying only the rich coming from anywhere are the only ones worthy or entitled to live there.... Don't think so.

Not everyone who works in London is rich, in fact most aren't. Do you think that everyone who works in London are rich? Or did you deliberately misunderstand what I was saying?

I have friends in London who don't work and I would miss them if they have to move but it is the easiest, quickest fairest solution to the problem. The status quo is not sustainable.

Edited by iamnumerate

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