When will London burst ?

Sabrina2000

Typhoon2000 wrote: »

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.

Its not that simple, but yes you go the gist of it, this will be very bad for the recovery.

Sabrina2000

chiefie wrote: »

London needs teachers, police, nurses, firefighters, ambulances, hotel staff, public utilities staff - they won't be able to rent or buy. My question was really how can London remain supported by these people when they can no longer live there. People will be living in Stoke and travelling down (1hr 25 to Euston) before we know it

The answer to your question is they will rely on housing beenfit to pay the high rents.

AAll the talk about cuts will not happen, if they did London would burst.

MARTYM8`

caronoel wrote: »

Not a valid comparison at all

Mortgage rates were rarely below 10% for much of the 70's and 80's. There are plenty of decent fixed rates available now at a quarter of that cost. So while house prices have risen, the cost of servicing a mortgage has dropped off a cliff.

As for nothing being available on the "average" wage, I popped in £160k into Rightmove (4 times multiple against your average wage assumption of £40k), and it brought up more than 500 properties:
http://www.rightmove.co.uk/property-for-sale/find.html?searchType=SALE&locationIdentifier=REGION%5E87490&insId=2&radius=0.0&minPrice=&maxPrice=160000&minBedrooms=&maxBedrooms=&displayPropertyType=&maxDaysSinceAdded=&_includeSSTC=on&sortByPriceDescending=&primaryDisplayPropertyType=&secondaryDisplayPropertyType=&oldDisplayPropertyType=&oldPrimaryDisplayPropertyType=&newHome=&auction=false

The real issue is the "want it now" culture.

Few first time buyers could ever afford a 4 bed semi in a leafy suburb as their first home, but today's kids want the moon on a stick.

I think being honest in large parts of the country now most young people would be lucky to be able to aspire to buy a one bed flat - they will never be able to afford anything as luxurious as a house when average house prices are now apparently ten times median salaries.

But of course the reason they cannot afford £300k to buy a home when they earn £25k is because they spend too much on beer, Sky tv and holidays.:rotfl:

[Deleted User]

chiefie wrote: »

London needs teachers, police, nurses, firefighters, ambulances, hotel staff, public utilities staff - they won't be able to rent or buy. My question was really how can London remain supported by these people when they can no longer live there. People will be living in Stoke and travelling down (1hr 25 to Euston) before we know it

We need a system that will help pair up better paid private sector workers with public sector workers

I've married a nurse, so i'm helping out the cause

chiefie

ringo_24601 wrote: »

We need a system that will help pair up better paid private sector workers with public sector workers

I've married a nurse, so i'm helping out the cause

Snap ! Me too

Mallotum_X

chiefie wrote: »

Snap ! Me too

And me, although my nurse works for a private hospital where many of the patients fly in, maybe not such a help.

padington

MARTYM8` wrote: »

I think being honest in large parts of the country now most young people would be lucky to be able to aspire to buy a one bed flat - they will never be able to afford anything as luxurious as a house when average house prices are now apparently ten times median salaries.

But of course the reason they cannot afford £300k to buy a home when they earn £25k is because they spend too much on beer, Sky tv and holidays.:rotfl:

They don't need 300k to buy a place up north. Nor do they need £5 to buy a pint.

missyrichards

chiefie wrote: »

London needs teachers, police, nurses, firefighters, ambulances, hotel staff, public utilities staff - they won't be able to rent or buy. My question was really how can London remain supported by these people when they can no longer live there. People will be living in Stoke and travelling down (1hr 25 to Euston) before we know it

Someone my husband knows at his work commutes in from the North to get to work in London as he couldn't afford to buy anything decent and he would rather make the sacrifice and have a nice, big house up there. He must have a ridiculous amount of commuting time! Their jobs are fairly well paid though and the man gets help with travel costs so the effort is worth it. Most people working in London couldn't do that type of thing as the travel costs would make it unaffordable.

chucknorris

missyrichards wrote: »

Someone my husband knows at his work commutes in from the North to get to work in London as he couldn't afford to buy anything decent and he would rather make the sacrifice and have a nice, big house up there. He must have a ridiculous amount of commuting time! Their jobs are fairly well paid though and the man gets help with travel costs so the effort is worth it. Most people working in London couldn't do that type of thing as the travel costs would make it unaffordable.

As you say the time it takes is relevant too (in addition to the costs), I only commute in from Surrey, it is about 80 mins, door to door, and about 50-55 mins on a train. What makes it easier is that I can watch a movie (downloaded from sky) between to and from work, and occasionally I do some work. But I wouldn't fancy commuting for much longer than that, and I only do it about twice a week on average over the year.

MARTYM8`

padington wrote: »

They don't need 300k to buy a place up north. Nor do they need £5 to buy a pint.

Yes - I agree house prices are cheap in the areas where there is no work.

I have a young guy working in my team - had to leave Lancashire and come to London because he couldn't get work in the area he wanted to work in. Not uncommon I would suggest.

I make the point again - average house prices (presumably a typical average house) are ten times median salaries. So I might suggest that prices out a lot of people from buying the supposed 4 detached house they apparently want immediately. So they are probably looking at stretching themselves to buy a flat - in the areas where there is work - and that requires potentially their maximum earning power in their 30s so there is not much chance of a move up the supposed ladder.

Or alternatively maybe I have missed those banks wanting to offer 8 times salary mortgages to all these supposedly lazy youngsters!

So try not to dump on our kids, grandkids, nephews and nieces - no final salary pensions, massive graduate debt, huge national debt we created to pay off, zero hours contracts, low wages. Yes - they are all just lazy aren't they!