When will London burst ?

Catapa

caronoel wrote: »

You missed it matey
Next crash is due in about 10 years, but we have a loooong way up to go before then

[SIZE=-1][FONT=Arial,Helvetica]Prediction is difficult, especially if it's about the future. [/FONT][/SIZE]

[Deleted User]

antrobus wrote: »

They can't be that cheap.

Germans spend 28% of their disposable income on housing. The EU average is 22%. In the UK it is 21%.

Share of housing costs in disposable household income, by type of household and income group (source: SILC) [ilc_mded01]
http://appsso.eurostat.ec.europa.eu/nui/show.do?dataset=ilc_mded01

Presumably because housing costs don't take mortgage payments into account. If they did, the UK would be the highest. Moreover in Germany accessory costs (gas, electricity and council tax) are fixed and included in the rent (so called "Warmmiete" or warm rent).

cells

Killerseven wrote: »

If there is thi mass exodus from London, then who will do all the min wee jobs?

There will be. Lot of empty properties especially when you consider how many new properties re being added to londons supply every year.

Just shows how overvalued property and rents have got due to housing benefit pushing and holding up prices.

If housing benefit is cut, then rent no house price will fly to more fair level, but lots of repossessions on the horizon

Around 24% of London housing stock is council/HA/Social.
Thats more than what makes up low paid workers

plus plenty of low paid people are owners who bought a long time ago or inherited

cells

Killerseven wrote: »

We are only talking about reducing the max £500 week down to £445 week. That is £26k down to new cap of £23k.

So rents will just have to fall around £55 week to absorb the cuts.

But this is just the start, the trend is clear to see, more cuts have to follow and rents and house prices will slowly correct to where they should be.

The cap don't apply to working people or pensioners and the vast majority of renters are working people.

So it won't much impact rents at all as it applies to so few households. Probably less than 1% of the London housing stock

Killerseven

cells wrote: »

The cap don't apply to working people or pensioners and the vast majority of renters are working people.

So it won't much impact rents at all as it applies to so few households. Probably less than 1% of the London housing stock

Talk is it will apply to everyone

wotsthat

ciaccino wrote: »

Presumably because housing costs don't take mortgage payments into account. If they did, the UK would be the highest. Moreover in Germany accessory costs (gas, electricity and council tax) are fixed and included in the rent (so called "Warmmiete" or warm rent).

That seems like an unlikely presumption so I looked it up.

Eurostat's total housing costs include a mortgage for owners and rent payments for tenants. Utilities, maintenance and buildings insurance are also included.

It's a view often expressed here that Germans love renting and landlords are providing cheap rentals at low prices, low margins whilst being tightly regulated. Very little data accompanies this view - probably a heady mixture of anecdotal, wishful thinking and an idea that the grass is greener on the other side.

[Deleted User]

wotsthat wrote: »

It's a view often expressed here that Germans love renting and landlords are providing cheap rentals at low prices, low margins whilst being tightly regulated. Very little data accompanies this view - probably a heady mixture of anecdotal, wishful thinking and an idea that the grass is greener on the other side.

I have lived there and I can confirm that rents are considerably cheaper. There's a cap on rents that can be easily enforced by calling the local council.

antrobus

ciaccino wrote: »

Presumably because housing costs don't take mortgage payments into account. If they did, the UK would be the highest. ...

I think you'll find that Denmark beats the UK.:)

ciaccino wrote: »

...Moreover in Germany accessory costs (gas, electricity and council tax) are fixed and included in the rent (so called "Warmmiete" or warm rent).

I believe you are misinformed. In Germany you get both cold and warm rents - kaltmiete vs warmmiete. And what exactly is included in a warm rent depends on the rental contract, and whether or not it is fixed also depends on what it says in the rental contract.

Which is pretty much the same as in the UK. Only we tend to call them 'service charges'.:)

wotsthat

ciaccino wrote: »

I have lived there and I can confirm that rents are considerably cheaper. There's a cap on rents that can be easily enforced by calling the local council.

Thanks. I'll ignore the Eurostat data then.

Sabrina2000

The talk is that the cap will apply to those working or not, £23K, lots of landlords must be getting worried.