Why renting is so pathetic !!!😳

JencParker

BillJones wrote: »

If you think that, hop on the 135 Bus, get off at Canary Wharf, and have a wander around the shops and restaurants.

Canary Wharf is hardly representative of the millions that work in London every day. Not only is it only a small percentage of the total workers, it also has a high proportion of highly paid jobs, just like the city. There are millions of others that work in London, although I guess they don't count in your view of the world!

BillJones

JencParker wrote: »

Canary Wharf is hardly representative of the millions that work in London every day. Not only is it only a small percentage of the total workers, it also has a high proportion of highly paid jobs, just like the city. There are millions of others that work in London, although I guess they don't count in your view of the world!

Wow, what a ridiculous post. You really do seem to have a bee in your bonnet.

I did not claim that it was representative of anywhere. The OP said that he did not believe many people in London earn over £25k, so I pointed him to a part of London where there are hundreds of thousands of people who do.

And why on earth do you feel qualified to tell me who does and doesn't count in my "view of the world"?

Can I ask, do you actually have a diagnosable condition that means you want to invent views of other people, and have a fight over them, or are you just not a very nice person?

ukcarper

cheeky-virgin wrote: »

Hi

I m living in a one bed flat in east london and paying about £800 a month from 5 years. Now we have addition in the family and needed a bigger place to stay in and looking for 2 bed room house or flat from last 3 weeks and it's been a hell to find out that estate agents say you must be earning at least 36k a year to have 2 bed property which rent is £1100-1200 a month.

I earns around 28k a year and mrs not working and looking after the kids at the moment so it is impossible for me to get the private renting, I ain't claiming any benefit but still have this problem.

Please advice what to do.

Thanks

Have you looked into claiming LHA (housing benefit)

ukcarper

citricsquid wrote: »

The average UK salary is £28,000. London is far more affluent than the north of the country, I would not be surprised if the average London salary is nearer £40,000.

For a married couple with children £28,000 is not a good income, especially in London. I would go as far as to say it's a bad level of income. If you picked 2 random 22 year olds off of the street and gave them minimum wage jobs they'd have a joint income in the region of your family income.

If you're happy with an income of £28,000 that's fine, it's your choice, and money certainly isn't everything... but expecting to be able to live in the most affluent region of the country on that income is crazy.

The guideline amount that most people in personal finance circles will give you for rent is 30% of your take home income, 40% is the maximum someone should consider before they're entering into dangerous territory. You're proposing that you should pay £1200 per month on rent alone when you have an after tax income of £1850. That's 65% of your income spent on rent! 65%! That's absurd and doesn't even consider that you'll have higher utility usage, higher council tax....

Here's the simplest way to look at it: at the moment your rent is £850 per month and you're looking to increase it to £1200 per month. Do you have £450 to spare every month at the moment? That's how much more it's going to cost you (+rent, +utilities, +council tax) every month!

The letting agents are doing you a huge favour by turning you down because of their affordability criteria. This would drown you financially. It's a great shame that you've been priced out of the area that you've made a home -- and it's certainly a big problem this country has with housing costs -- but that's the way it is and you need to approach it realistically, you can't bury your head in the sand because you'll cause yourself even further financial problems.

Thequant was a bit rude in the way he approached his comment but ultimately he's right, you can't afford to have children in the south on your income. Your wife needs to get a job and you need to look at increasing your salary (although of course: easier said than done).

The median full time salary for London is £32.5k 70% percentile is £43k.

Gigervamp

I wonder what's going to happen when all the low wage earners are priced out of London. They won't be able to afford the extortionate fairs to travel into the area, so who's going to clean the loos, serve the coffees, pick up litter etc.

Angry_Bear

Gigervamp wrote: »

I wonder what's going to happen when all the low wage earners are priced out of London. They won't be able to afford the extortionate fairs to travel into the area, so who's going to clean the loos, serve the coffees, pick up litter etc.

Isn't the point about market forces that this will mean that wages will have to rise or prices will have to drop?

Although in reality I expect what will actually happen is that the jobs will go to temporary immigrants who will accept poorer living conditions (including people who temporarily migrate to London from other parts of the country). They will then live many to a house to save housing costs and will eventually move on when they either get better pay or want better conditions. Permanent lowly-paid employees will be heavily subsisdised by the state in terms of housing benefit - more accurately, employers who pay lowly will be heavily subsidised by the state.

N1AK

Gigervamp wrote: »

I wonder what's going to happen when all the low wage earners are priced out of London. They won't be able to afford the extortionate fairs to travel into the area, so who's going to clean the loos, serve the coffees, pick up litter etc.

What makes you think that'll happen? If Costa can't hire a Barrista in London for the current wage then they'll increase the wage (and prices). The same is true with tradesmen, cleaners etc.

Gigervamp

What makes me think that will happen? Well, just seeing how much the cost of housing has gone up in London over the last 15 years since I lived there.

My last house there sold for 83k (3 bed terrace in a nice little close). Those houses are now selling for over 200k. Wouldn't be able to afford to buy one now.

Gigervamp

Angry_Bear wrote: »

Isn't the point about market forces that this will mean that wages will have to rise or prices will have to drop?

Although in reality I expect what will actually happen is that the jobs will go to temporary immigrants who will accept poorer living conditions (including people who temporarily migrate to London from other parts of the country). They will then live many to a house to save housing costs and will eventually move on when they either get better pay or want better conditions. Permanent lowly-paid employees will be heavily subsisdised by the state in terms of housing benefit - more accurately, employers who pay lowly will be heavily subsidised by the state.

It will end up with ghetto areas where people are sharing beds and affluent areas.
The state will only pay so much. They've already capped benefits. I don't think market forces will reduce the cost of housing. Properties will be bought up by landlords to rent to multiple tennants and the properties in more desirable areas will be bought by foreign investors.

Angry_Bear

Gigervamp wrote: »

It will end up with ghetto areas where people are sharing beds and affluent areas.
The state will only pay so much. They've already capped benefits. I don't think market forces will reduce the cost of housing. Properties will be bought up by landlords to rent to multiple tennants and the properties in more desirable areas will be bought by foreign investors.

I would broadly agree, except that I expect the cap on benefits to be raised for London housing benefit at some point.