Monday, October 24, 2011

We’ve run out of money

Consumers’ recession is getting worse

Summary... I think the headline says it all but it's nice the industry that spawned the house price bubble is, belatedly, recognising it. Anecdote tonight: young villager took up job in London has retured because the rent she was paying left her nothing to live on. Parents subsided her for a while but that became unsustainable.

Posted by stuartking @ 12:39 AM (4314 views)
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6 thoughts on “We’ve run out of money

  • I’ve heard plenty of anecdotes like that, it’s been happening for a long time. Often the parents subsidise the child for a few months when they first move to London, helping with e.g. rent deposit. That’s particularly relevant where the child is working as an unpaid intern in media, fashion, or other highly-coveted industries. After a few months (sometimes years) they can finally get a paid job or better paid job, and can afford to live independently.

    The rising rents prove that there’s still a huge supply of people willing and able to pay those high rents.

    My anecdote of the day: A lot of bright young people I know, seeing unaffordable house prices, a stagnating economy, and low salaries, are either actively planning to move to Australia or have already done so.

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  • happy mondays says:

    @ drewster – Fair play to them, why put yourself on hold.. This is what i did in the recession of the early 90’s packed myself up & spent nearly 3 yrs living working travelling across the globe & probably the best thing i ever did. 🙂

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  • Rents are the reality check of this runaway property market.

    Just another piece to the puzzeled, “to big to fail”, ponzi scheme.

    Let’s now put up housing benefit!!!! lol

    It’s all gone a bit off and this is becoming increasingly obvious.

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  • Independent: Dire economy keeps expats from returning
    A growing number of expats are cancelling plans to return to the UK, instead preferring life overseas.

    Around 15 per cent have changed their minds about coming back in the past year, a survey by Lloyds TSB International found, and as many as 69 per cent of these expats now plan to stay overseas indefinitely, a 13 per cent rise on the number last year.

    A better quality of life, healthier finances, lower cost of living and safer neighbourhoods were among the reasons cited for Britons staying away. As many as 74 per cent reckoned they had a better life overseas, with just 7 per cent saying things would be better in the UK.

    Britain’s faltering economy seemed to be a significant factor in people not returning to Britain, with 52 per cent saying their cost of living was lower abroad, and only 24 per cent saying it was now more expensive.

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  • I do hope those bright young things aren’t expecting to find affordable gaffs in Australia…

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  • House prices are high in Oz, but you get a lot more space for your money. I don’t know how rents compare to incomes, but I’m told your money goes further, i.e. you can rent a nicer place in Sydney for a given % of your income than you could in London. There’s a lot more new-build, no obsession with draughty old Victorian terraces.

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