front page of Saturday's FT - re house prices

The_White_Horse

said in 1995 someone on the equivalent of £45k after tax now, could have afforded to buy in Camden overlooking Regent's Park.

Now that same person on £45k after tax could just about aspire to a house in Redbridge.

Percy1983

But we have iPhones....
....or something like that.

Carl31

£45k in 1995 will be worth more than £45k now, time adjusted

Or was that taken into account?

The_White_Horse

yes, it was taken into account.

prices are mad. houses that were on the market at 400k 18 months ago are being remarketed at £650k near me. insanity. yet some mug will pay.

Graham_Devon

I've always assumed these stories of houses seeing their value increase massively in London should be taken with a piece of salt.

However, a family member has decided to move back "home". They wanted to do this last year and nearly did, hence they can compare valuations, but stayed on another year.

His apartment has increased in value by 40% in a year, according to the EA valuation. This is not pocket money finance either, were talking a couple of hundred thousand, in a year.

He's over the moon of course, as prices have moved very little here in the same timeframe.

I'm just wondering how it's all possible. Surely, if these prices continue, people like him (who moved to London for a job and bought) will cease to exist soon...I would have thought at least. I'm sure he is on above average wage, but he's certainly not on hundreds of thousands a year. Yet around 2002 he was able to move to London and buy for the same wage. I'd guess he's on around 40-50k a year.

michaels

Graham_Devon wrote: »

I'm just wondering how it's all possible. Surely, if these prices continue, people like him (who moved to London for a job and bought) will cease to exist soon...I owuld have thought at least.

I hadn't previously realised that HPI was an existential issue :eek:

MFW_ASAP

michaels wrote: »

I hadn't previously realised that HPI was an existential issue :eek:

Perhaps they're so depressed with the cost of housing that they go back in time and stop their parents from meeting?

The_White_Horse

according to Loughton Monkey it's easy to get on the ladder in London. You just have to build a time machine and buy your first property in 1973.

in the last two years prices have gone utterly mad. they were pretty mad before. however, now, houses that were around £400-500 are north of £650k.

A friend of mine lives in a crappy semi - house next door sold for £1.39m. Its beyond all hope for people on very good salaries. How people on £20-30k, with families, live is beyond me

Linda_D_2

The_White_Horse wrote: »

according to Loughton Monkey it's easy to get on the ladder in London. You just have to build a time machine and buy your first property in 1973.

in the last two years prices have gone utterly mad. they were pretty mad before. however, now, houses that were around £400-500 are north of £650k.

A friend of mine lives in a crappy semi - house next door sold for £1.39m. Its beyond all hope for people on very good salaries. How people on £20-30k, with families, live is beyond me

If you had worked hard instead of being a benefit scrounger then maybe you would have been able to afford a decent house.

Jealous lefties like you expect it all without having to work for it

Graham_Devon

Thread on the housing board about this, here: https://forums.moneysavingexpert.com/discussion/4876790

Shows how these price rises trap even homeowners in London as they can no longer afford to move. This is due to the price difference between their exising flat or maisonette and the next "rung" up the ladder growing so wide. Unfortunately for some, they see the only way out of this is to give up their job and move elsewhere.

LydiaJ

Graham_Devon wrote: »

Thread on the housing board about this, here: https://forums.moneysavingexpert.com/discussion/4876790

Shows how these price rises trap even homeowners in London as they can no longer afford to move. This is due to the price difference between their exising flat or maisonette and the next "rung" up the ladder growing so wide. Unfortunately for some, they see the only way out of this is to give up their job and move elsewhere.

I'm not so sure that's unfortunate. That's just market forces at work - the housing market is unbalanced by so many people wanting to live in London rather than elsewhere, so London prices get ridiculous, so people move to other parts of the country, redistributing the demand. Maybe eventually some of the employers will work out that there are advantages to relocating some of the jobs to parts of the country where people can afford to live.