Tuesday, October 23, 2007

Laugh, cry, sit on the sidelines and pick your moment…?

First time buyers in London boroughs face house prices of twelve times income

People in one part of the UK already face house prices of 16 times their income, with a further five areas having house prices at 10 times income or more - a level not predicted to be the average across the country until 2026. The figures are revealed in the CACI Housing Affordability Index, and come at a time when the Government is concluding its consultation on the UK's future housing needs in its Housing Green Paper. If the Government were to choose to increase housing supply in areas where houses are least affordable, the CACI Index highlights those areas in need of most urgent release of land for residential development.

Posted by converted lurker @ 10:41 AM (1064 views)
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5 thoughts on “Laugh, cry, sit on the sidelines and pick your moment…?

  • Well the only time to buy something is when you cannot borrow or beg it from a friend, but at least with housing you can rent it.
    We are now predicting that house prices will fall in relation to inflation, not astounding, and it is still dependant on location.
    Please note: the phrase is “in relation to inflation”, which gives a wider scope than “prices will fall” (which is also very possible … but delayed until April when the new tax year starts, etc.)

    But we are predicting a recession, so the canny buyer will wait at least until April next year, and put the savings into a “6 month” higher interest accounts.
    Exactly where we will be in 12 or 18 months is uncertain, GBH has u-turned on an election, and could easily do the same in other areas, but it is still pensions that are very worrying.

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  • If we build more houses in the desirable areas of London they will be bought up by foreign investors and BTL.

    We need changes to the law (as per Australia) that limits house sales to people who are not born in the UK. We also need changes to the law that limit London house purchaes to people who want to live in these homes.

    The other problem is that people cannot get mortgages to buy homes with a short lease (and many properties in Wesminster and K&C) are coming into this catagory. This means that the homes are sold to investors who can then purchase the new lease and sell the home on (usually to a foreign person or BTL investor).

    London should be for the Londoners. We need workers to be able to live close to their place of work to cut down on the communiting and polution that this killing this country.

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  • Since when have people living on the Shetland Island had an average income of £34,243!!

    Also I am sure the average income in Kensington + Chelsea is more than £46,543!! they probably pay that in income tax per annum!

    So what is the average wage in the uk at the moment? £27k £32k?……….

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  • You have to wonder if the government believe their own spin on house prices, or would they take a crash into account when deciding housing policy. Overbuilding in some areas combined with a crash could prove disastrous for long term prices in that area. Changes in housing policy seem to be driven by public perception (and VI spin) on future affordability rather than a measured economic view, which is worrying – based on past experience, I would confidently predict this government to convince themselves that there actually is a shortage (and prices will go up forever etc.), build all over the green belt and then watch as the crash causes a housing glut, as in Spain and the US, making everyone a loser and causing irreperable damage.
    The staggering thing is that (other than their incompetence and arrogance) there is no logical reason for them to increase greatly the rate of new builds – all they have to do, like the rest of us, is wait and the affordability problem will sort itself out.

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  • David Smith's Sub Prime. . . says:

    What does David Smith make of 12 times income?

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