Lack of supply pushing up prices

Really2

Sir_Humphrey wrote: »

The way you bulls go on, you sound like you forgot what happened the last time house prices got out of control. :rolleyes::rolleyes:

Labour got in.

System

Humphrey if it's any consolation I'd love to live in London as well but I can't afford it either, so I live elsewhere.

LydiaJ

chucky wrote: »

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.

Of course. And culturally we live in a time of such stable relationships, don't we? Where a couple buying a house together are more likely to stay together for the duration of the mortgage than they used to be in the past? So the proportion of single-adult households (with or without kids) is small and falling, isn't it?? [/sarcasm]

Radsteral

in south east london i m looking at, rightmove or find a property barely bring any listing if you click at '' new houses last 3 days or 1 week '' you have to click 14 days to see some.
I place it within 1 mile from lewisham station and it brings listings in... you name it .. dulwich... se23... charlton.
i think the website s engine s gone mad.
And even these houses we see, they tend to come up '' sold'' under offer prety quick

Sir_Humphrey

chucky wrote: »

advice!?! you actually take advice off people on an internet forum!?!?

Obviously not. Duh! I called it fatuous "advice". Is that not enough of a clue?

Seriously, there is a big time-bomb for most companies in London right now. There are a lot of twenty-somethings working who are quite content with flatshares and the suchlike. They are going to to be off if things do not become affordable soon, and there is a cheaper alternative elsewhere. It is a brain drain waiting to happen.

If I were an entrepreneur, why should I choose London over Manchester or Brum to set up when I could pay 2/3rds the salary in the North or Midlands? Yorkshire/Lancashire are only two hours on the train.

Really2

Sir_Humphrey wrote: »

If I were an entrepreneur, why should I choose London over Manchester or Brum to set up when I could pay 2/3rds the salary in the North or Midlands? Yorkshire/Lancashire are only two hours on the train.

Worked that one out 8 years ago.;):)

Sir_Humphrey

Really2 wrote: »

We have a child, we had several years of wage inflation before having our child.

I know people who have done this. There is a big difference between wage inflation in the past than to now.

Steep wage inflation would be an alternative way of resolving the housing situation. I just find further house price falls a more realistic scenario given the current economic climate.

Regarding the wage issue - you are right if as I believe you live outside London. I know a couple with a toddler on a joint income of I guess about £60-70k who find it a struggle in London (they bought at the market peak). I can guess their salaries as they are both public sector. It is child care that is the killer in London, it costs an absolute fortune. That would cease once she started school, but that is four-five years and other expenses would then kick in.

a_j_mair

lemonjelly wrote: »

Thing is, in the drought sellers/builders are going to be getting top dollar for the ones they've built/are selling.
So there's no real incentive for them to flood the market with over supply is there? May as well trickle the supply in & keep getting well above cost price to maximis profits.

Works in so many ways too - less building = less staff to employ = keeps costs down = bigger turnover.

Builders are not getting anything like the prices they were 18 months ago, there are far more propertys on the market there for more choice and better deals for buyers to be had

Building costs are also going up, it may be a recession buit the rice of materials has risen, some a considerable amount.

Starter homes are still moving but anything a little more expensive £200k and up has to be proced competively in todays market for it to sell

As has already been said alot of sellers dont like hearing there house is worth 20% less than they think

Thats the situation in south west scotland anyway

Really2

Sir_Humphrey wrote: »

It is child care that is the killer in London, it costs an absolute fortune. That would cease once she started school, but that is four-five years and other expenses would then kick in.

I think at 3 years old you get 15 hours a week funded by the government (or some thing like that). You may be able to cheer your friends up with that news.

lostinrates

Really2 wrote: »

I think at 3 years old you get 15 hours a week funded by the government (or some thing like that). You may be able to cheer your friends up with that news.

Which should nicely cover th time it takes to commute to and from work!

Over a tiny geographical space it can take a long time to cross...on Public transport. I used to allow an Hour at peak to get from Hampstead to Chelsea, often only took me 40 mins though, not sure it ever took less (except by car late ay night, when the rods ae clear, its just minutes.). I was going to Battersea regularly for a while, that took longer, because of the change to a bus, the wait for that tc.