Lack of supply pushing up prices

chucky

the_ash_and_the_oak wrote: »

What did they buy?

I earn 40k and have to be honest don't really have any problem paying London rent

to be fair - for anyone buying on a single salary, prices are very expensive. for a two income house buyer things are much easier.

Sir_Humphrey

the_ash_and_the_oak wrote: »

What did they buy?

I earn 40k and have to be honest don't really have any problem paying London rent

It is not so difficult if you don't have kids. That's where the trouble starts.

I know two Grade 7s (mid 40k) who have just moved out of London/SE having just had kids. I know another SEO who has just moved from London to Kent (not buying). I was chatting to a corporate lawyer friend who was saying the same as me the other day. He is also quite bearish on housing however.

If there were not plentiful unlet BTLs in my part of London I'd be genuinely bullish. But there aren't and I'm not.

the_ash_and_the_oak

chucky wrote: »

to be fair - for anyone buying on a single salary, prices are very expensive. for a two income house buyer things are much easier.

Of course - true of both renting and buying!

chucky

the_ash_and_the_oak wrote: »

Of course - true of both renting and buying!

this is what the bearish posters on here seem to struggle to understand and are hoping for. historically houses were bought on single salaries - they expect a return to this. it's not going to happen.

times have changed. property is/was usually being bought with two incomes thus pushing up prices and demand.

the surge in new build one bed room flats is that additional rung put into the housing ladder for those buying on single incomes

Conrad

Sir_Humphrey wrote: »

It is not so difficult if you don't have kids. That's where the trouble starts.

Lions that live by the best watering hole, have to fight hardest.

Sir_Humphrey

chucky wrote: »

this is waht the bearish posters on here seem to struggle to understand and are hoping for. historically houses were bought on single salaries - they expect a return to this. it's not going to happen.

times have changed. property is/was usually being bought with two incomes thus pushing up prices and demand.

the surge in new build one bed room flats is that additional rung put into the housing ladder for those buying on single incomes

But even on two good salaries it is difficult. £60k joint salary x3.5 +10% deposit is £230k - and those salaries are well above average. What is that going to buy you in most of London? A lot less than it would buy you up North.

If London/SE stays where it is and the rest of country continues to fall, what will happen to the competitiveness of London/SE? How long do you think people are going to hold on to unlet BTLs? London isn't an island, it is part of an open economy.

You must be crazy!

Really2

Sir_Humphrey wrote: »

But even on two good salaries it is difficult. £60k joint salary x3.5 +10% deposit is £230k - and those salaries are well above average.

Is £30K above average for London? I thought it was nearer £50K.

Out,_Vile_Jelly

chucky wrote: »

times have changed. property is/was usually being bought with two incomes thus pushing up prices and demand.

the surge in new build one bed room flats is that additional rung put into the housing ladder for those buying on single incomes

Out of interest, do you think singletons should resign themselves to never being able to buy? Actually I think I spy a niche in the market- an online dating site for those wanting to pool resources to obtain a mortgage. No need to upload photos or pretend to be cool or funny- just state your finances and preferred postcode.

And would you seriously consider a 1 bed newbuild flat a sensible purchase?

Sir_Humphrey

Really2 wrote: »

Is £30K above average for London? I thought it was nearer £50K.

A lot of bulls seem to think that, but they are hopelessly wrong.

Cue tiresome argument about median and means.

chucky

Sir_Humphrey wrote: »

But even on two good salaries it is difficult. £60k joint salary x3.5 +10% deposit is £230k - and those salaries are well above average. What is that going to buy you in most of London? A lot less than it would buy you up North.

what are you talking about - there are thousands of properties on Rightmove at less than £230k in London
http://www.rightmove.co.uk/property-for-sale/find.html?searchType=SALE&locationIdentifier=REGION%5E87490&radius=0.0&displayPropertyType=&minBedrooms=&maxBedrooms=&minPrice=&maxPrice=230000&maxDaysSinceAdded=&retirement=false&partBuyPartRent=&_includeSSTC=on&sortByPriceDescending=&primaryDisplayPropertyType=&secondaryDisplayPropertyType=&oldDisplayPropertyType=&oldPrimaryDisplayPropertyType=&oldSecondaryDisplayPropertyType=&newHome=&auction=false&x=77&y=11

how can you compare prices 'up north' to London?
what a stupid comparison.

Sir_Humphrey wrote: »

If London/SE stays where it is and the rest of country continues to fall, what will happen to the competitiveness of London/SE? How long do you think people are going to hold on to unlet BTLs? London isn't an island, it is part of an open economy.

i think that you're missing or ignoring the fact (deliberatly) that prices in london have risen quicker than any other area. the demand is there - pretty simple.

if you don't want to take part in that demand i suggest that you go back 'up north' or lower your expectations because they are way out of synch to reality.

cue Sir Humphrey complaining that house prices are too expensive because he hasn't got the best paid job and complains that he is single