"Housing Market Slumps"

GreatApe

ukcarper wrote: »

I think it's difficult to recruit in certain sectors and if the majority of low pain worker left the city would not function.

But that would not happen, lets say all the private renter nurses left London you would still have 9 million +100,000 each year who can do the work and become nurses. Plenty of London residents would like to be Nurses who are currently on much worse terms and pay.

but I don't accept that it's a good thing.

I agree that if people could buy bigger homes (which is different from homes being cheaper) quality of life would be better. However there is no easy way to go about doing this the closest thing I can imagine that is on the fringe of reality is either get rid of most the current social tenants or have a MASSIVE rebuild program neither is close to being realistically possible

BikingBud

GreatApe wrote: »

:rotfl:

the new definition of affordable, homes are unaffordable unless affordable by 'people who earn not a 'lot of money'.

Now thats cleared up :rotfl:




as this debate has shown the word itself can be used in such a wide way as to make almost any price affordable or not depending on its definition

Although its clear that what is affordable is not that clear What is easier to to be able to suggest what is CHEAP

I would like to propose we call homes cheap where a 20% down 30 year repayment mortgage cost less than renting the local social stock. And by that definition 8 of the UKs regions are CHEAP not just 'affordable' but CHEAP

So we've stuck 5 yrs on the average mortgage how much does that cost in total amount payable? That makes it cheap does it? Stretching what people used to borrow to buy a house in 25 years now takes 5 years longer
300k@3% for 25 yrs = £426,900
300k@3% for 30 yrs =£455,400
an extra £28,500

Cheap and affordable are relative to your income.

You never said how much you would be willing to stump up every month to buy, come let us know. Not a random figure but what you are willing to pay every month as a % of your salary.

GreatApe

BikingBud wrote: »

So we've stuck 5 yrs on the average mortgage how much does that cost in total amount payable? That makes it cheap does it? Stretching what people used to borrow to buy a house in 25 years now takes 5 years longer
300k@3% for 25 yrs = £426,900
300k@3% for 30 yrs =£455,400
an extra £28,500

Cheap and affordable are relative to your income.

You never said how much you would be willing to stump up every month to buy, come let us know. Not a random figure but what you are willing to pay every month as a % of your salary.

so not only are those 8 regions of the UK cheaper to buy a house than rent the local social house, but at the end of the mortgage you get a house and £0 monthly mortgage while at the end of 30 years in the social you still need to pay rent and the social landlords increase rents each and every year

Homes in 8 of our UK regions are CHEAP

How will you spin your way out of this one? :T

BikingBud

Cheap
Cheaper
Cheapest

Here you go you do it for me.

How much 30%, 50%, 25%, 80%, do tell?

Windofchange

GreatApe wrote: »

But that would not happen, lets say all the private renter nurses left London you would still have 9 million +100,000 each year who can do the work and become nurses. Plenty of London residents would like to be Nurses who are currently on much worse terms and pay.



I agree that if people could buy bigger homes (which is different from homes being cheaper) quality of life would be better. However there is no easy way to go about doing this the closest thing I can imagine that is on the fringe of reality is either get rid of most the current social tenants or have a MASSIVE rebuild program neither is close to being realistically possible

Yup and they can just magic themselves through the 3 year degree to become a nurse? Oh yeah, and the government has scrapped the bursary, so they are now £50,000 in debt when they come out the other side. But of course being such a low skilled and brainless job we'll just round up the local job centre queue and put them in a blue uniform.

Do you actually believe what you put down or are you just being controversial for the sake of it? You're either one of the world's greatest trolls, or you genuinely are a couple of sandwiches short of a picnic.

BikingBud

Not a picnic just the basket

economic

Windofchange wrote: »

Yup and they can just magic themselves through the 3 year degree to become a nurse? Oh yeah, and the government has scrapped the bursary, so they are now £50,000 in debt when they come out the other side. But of course being such a low skilled and brainless job we'll just round up the local job centre queue and put them in a blue uniform.

Do you actually believe what you put down or are you just being controversial for the sake of it? You're either one of the world's greatest trolls, or you genuinely are a couple of sandwiches short of a picnic.

oh why wont anyone think of the poor nurses!!!!

GreatApe

BikingBud wrote: »

Cheap
Cheaper
Cheapest

Here you go you do it for me.

How much 30%, 50%, 25%, 80%, do tell?

I dont want to tell you about my financial details so I will say x% where x is equal to £475pm which is I believe about the average social rent

So now tell me in how much of the uk can you buy a starter terrace and pay less than £500pm on the 30 year repayment mortgage? Hint its more than half the uk and its cheaper to buy there than to rent the social

GreatApe

Windofchange wrote: »

Yup and they can just magic themselves through the 3 year degree to become a nurse? Oh yeah, and the government has scrapped the bursary, so they are now £50,000 in debt when they come out the other side. But of course being such a low skilled and brainless job we'll just round up the local job centre queue and put them in a blue uniform.

Do you actually believe what you put down or are you just being controversial for the sake of it? You're either one of the world's greatest trolls, or you genuinely are a couple of sandwiches short of a picnic.

If there was a labor shortage in London, which there clearly isn't with +100,000 annual population, then the sectors which had a shortage would adapt in many ways one of which might be reducing the entry requirements or others might be to set up much faster more effective training programs. Of course there are multiple more ways a shortage can be tackled (not just for nurses for most things) with things like software and hardware, with changes in regulation, with people entering the workforce sooner and leaving later, with people working more hours etc etc

Needless to say London has no shortgage of labor and can take care of itself it does not need you as guardians of Londons labor shortgage

BikingBud

GreatApe wrote: »

I dont want to tell you about my financial details so I will say x% where x is equal to £475pm which is I believe about the average social rent

So now tell me in how much of the uk can you buy a starter terrace and pay less than £500pm on the 30 year repayment mortgage? Hint its more than half the uk and its cheaper to buy there than to rent the social

You continue to miss the point I don't care what you earn it might be 3 figure or 6 figures. Although your offering of £475 does indicate that you don't want to spend much! The figure might be between 71/2% (£75k) or 28% (£28k) but you will not get much for that in reality. Possibly £100k-110k and it's not just about starter terraces, these are real people with real jobs and with families scraping buy on often much less than £28k.

Affordability is about how much of your cash you are able to spend on something.

Would you spend 100% of your money on a pint of beer?

Would you spend 50% on a pint?

or maybe 0.5% perhaps?

Would you spend 100% on housing? or 50% or 30%?

You can chose to have beer or not, your life will not be affected to any degree.

However the fact that you are paying a significant proportion of your wage on housing costs those things become luxuries, along with holidays, clothing, running a car, getting a hair cut, going to the dentist, buying food etc. Living is unaffordable due to excessive housing costs.

Whereas if you pay 30% of your wage then chances are you can do the other things that are an essential part of life and if you are really lucky and only pay ~20% you might be able to have a few holidays.

That is the reality that most people have to deal with daily as they consider how far their cash will spread. Using multiples of income ensured that allowance was made for other living expenses, the multiples have crept up and the period of the loan has crept up to accommodate increasing prices, becoming unaffordable.