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Squeezed one-percenters feel worried due to cost of housing

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Caught this article in techregister (think it is from the FT)...

https://www.techregister.co.uk/the-squeezed-one-percenters-are-they-right-to-feel-worried/

Some choice quotes

"A consequence of the UK property market, most notably in London and the south-east, and the above-inflation rise in school fees is that individuals who 15 years ago would have felt they could afford most things within reason now find themselves significantly stretched,” says Caroline Burkart, a director of Scorpio Partnership, a strategy consultancy to the wealth management industry...."

“Perhaps when people like teachers were first being priced out of London, we should have realised that a decade or so later these forces would affect us too.” But he questions whether the 1980s and 1990s, when his cohort had it so good, really were a golden past whose norms can be recaptured...."

"But is the squeeze on the 1 per cent making them change their behaviour? Only to a certain extent. Catherine, another squeezed one-percenter in south-east England, says: “If we couldn’t afford boarding, we’d trim in other areas, or go flexi-boarding, or find a good day school.” If her family couldn’t afford to do that? “We’d move to the catchment area of a good state school. A grammar, perhaps.”

 

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49 minutes ago, iamnumerate said:

It is scary that the one percent can't afford a decent house in parts of London.  Not because I feel sorry for them but it is crazy situation.

It just high light how nuts it has got in the SE!

The question is how long before it starts unravelling to a noticeable extent?

Edited by koala_bear
typo correction

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14 hours ago, Captain Kirk said:

I wonder if the extra consumption resulting from the wealth effect is more than negated by the under consumption resulting from being squeezed?

The wealth effect is almost certainly a myth anyway. 

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Perhaps the country can no longer afford to pay the higher wages to obtain the better more easily affordable top lifestyles......if the bottom are struggling how can the money trickle up to the top?;)

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  • 295 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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