What Quarter of a Million gets you in London

ruggedtoast

mayonnaise wrote: »

Seems a bit low to me.
This report mentions 900 p/w.
http://data.london.gov.uk/documents/fol10-income-report.html
(but it's 2010 data)

Gross though.

Generali

mayonnaise wrote: »

Seems a bit low to me.
This report mentions 900 p/w.
http://data.london.gov.uk/documents/fol10-income-report.html
(but it's 2010 data)

Fair enough. I think my point still stands though. These flats are not in nice areas at all and are tiny for the most part.

ruggedtoast wrote: »

Gross though.

I meant gross except for the deposit which is > 3xnet earnings assuming each person earns the same to maximise post tax income.

Whatever way you dice it, this can't go on indefinitely.

Generali

michaels wrote: »

Hmm, looking at median in ones of all.rather than house buyers again.

Surely what matters is whether net incomes after other li ing costsike food, council tax and commuting in London can service the amount of property debt outstanding? I suspect on this metric property debt still has a way to go; economics 101 demand for 'housing services' is pretty inelastic.

Well as I say, the median income for the top 10% is about £60,000.

Housing in London is readily substitutable for housing in Kent or Hertfordshire and a season ticket, especially housing in Tottenham Hale.

HAMISH_MCTAVISH

Generali wrote: »

Whatever way you dice it, this can't go on indefinitely.

Absolutely.

When London prices have risen so much that enough people are prevented from buying in London so as to equalise supply and demand, prices will stop rising.

But as London is a global city, and demand comes not just from the millions of Londoners but also from tens of millions of wealthy people world wide, that may take longer than many people think....

I'd expect London to slow at some point in the near term, and HPI in the rest of the country to start catching up with London, as the ripple effect already seems to be spreading.

Generali

HAMISH_MCTAVISH wrote: »

Absolutely.

When London prices have risen so much that enough people are prevented from buying in London so as to equalise supply and demand, prices will stop rising.

But as London is a global city, and demand comes not just from the millions of Londoners but also from tens of millions of wealthy people world wide, that may take longer than many people think....

I'd expect London to slow at some point in the near term, and HPI in the rest of the country to start catching up with London, as the ripple effect already seems to be spreading.

I don't doubt any of what you say. There has to come a point where buying a house in London is such a spectacularly bad idea that prices fall, possibly substantially. I'd hate to try to predict when that may be though.

BillJones

Generali wrote: »

Something's gotta give. There'll be a revolution at this rate.

If only London had some form of public transport, buses, trains, or even an underground system, then people could work in the centre without needing to live there.

Sadly it must have none of these, given the weird posts such as yours bemoaning the cost of living in the centre...

Bantex_2

Generali wrote: »

Something's gotta give. There'll be a revolution at this rate.

Seem to remember people saying that when a grotty one bedder in an unfashionable part of SE London hit £100,000.

BillJones

Graham_Devon wrote: »

I really have no idea how these people live in London to be honest.

It's almost as though they may have to live on the outskirts and commute in...

Snakey

How long has it been since a single person working in a coffee shop or a factory has been able to buy, on their own, in a nice part of town? I know I couldn't do it in Manchester in 1993.

Graham_Devon

Snakey wrote: »

How long has it been since a single person working in a coffee shop or a factory has been able to buy, on their own, in a nice part of town? I know I couldn't do it in Manchester in 1993.

It's not really about single people. Many people with children cannot have both adults working full time, so are reduced to a single income. Often any part time income is spent on childcare, not neccesarily all year round, but certainly in school holidays etc....Theres no magic child minder that appears at school holiday time unless you are lucky enough to have parents close by who are willing to help.