When will London burst ?

chiefie

For you economics experts out there . How can house prices continue to rise whilst the service economy depends upon continued low wage employment ? And whilst key public sector workers aren't paid enough to buy or rent somewhere ? how does this work and where is it all going ?

Typhoon2000

They will have to spend less on booze, fags and Sky TV in order to afford to live in London. And get help from their parents.

cells

chiefie wrote: »

For you economics experts out there . How can house prices continue to rise whilst the service economy depends upon continued low wage employment ? And whilst key public sector workers aren't paid enough to buy or rent somewhere ? how does this work and where is it all going ?

people don't need to be able to afford to buy to sustain high house prices, they just need to be able to afford to rent. a BTLer will then push/keep prices linked to rents and mortgages

this is quite clear as evidence by some parts of London now having only about 25% owners, the rest are renters

padington

chiefie wrote: »

For you economics experts out there . How can house prices continue to rise whilst the service economy depends upon continued low wage employment ? And whilst key public sector workers aren't paid enough to buy or rent somewhere ? how does this work and where is it all going ?

Cross rail 1 and 2 to ferry them in and lots more central London bunk beds for the young.

Oh and rail fair freezes and freeing up the temp spare room market to help make it work.

Not to forget moving out the unemployed and moving in workers.

The stage is being set for another big London boom.

michaels

Don't forget that all that nice cheap labour at the bottom keeps latte and cleaner prices low for those at the top who can afford to buy. No wonder the Islington Labour set is so in favour of mass immigration.

padington

michaels wrote: »

Don't forget that all that nice cheap labour at the bottom keeps latte and cleaner prices low for those at the top who can afford to buy. No wonder the Islington Labour set is so in favour of mass immigration.

No one benefits more than big business and those that own swathes of London land.

CLAPTON

padington wrote: »

No one benefits more than big business and those that own swathes of London land.

how does big business benefit from high London house prices e.g. Roll Royce, Unilever, Aviva, Shell, Sainsbury, BHS and many more................

Generali

Imagine the mess if London bursts. There'd be bits of London all over the home counties.

chewmylegoff

Generali wrote: »

Imagine the mess if London bursts. There'd be bits of London all over the home counties.

It will play havoc with property prices. The estate agent will have a devil of a job explaining away the fact that part of Deptford is blocking the back gate and the roses have been compacted by the @rse end of Lewisham DLR station.

Won't somebody please just think about the children.

purch

chiefie wrote: »

For you economics experts out there .

I think you need to discuss this with your friend Bubble & Squeak as he is a self-confessed "expert" on London property, and apparently the market "peaked" 13 months ago.

padington

CLAPTON wrote: »

how does big business benefit from high London house prices e.g. Roll Royce, Unilever, Aviva, Shell, Sainsbury, BHS and many more................

Keep up, we were talking about mass immigration at that point.