Why are house prices still so high?

Zero_Sum

Thrugelmir wrote: »

Is around here. Rent a room abounds. Likewise people buying up what was a decent average family home and sub dividing into 2 flats. Or extending the property into a number of apartments. Currently there are 6.500 residents parking permits issued for some 5,000 odd official spaces.

The change is noticeable. Fly tipping abounds for example.

The natives are getting restless.

"Around here"

So you agree with me that it isnt a national problem
Its a localised issue mainly in London/SE and a few tourist hotspots like the lakes & cornwall.

Round my way, a couple on NNW can afford to buy a half decent 3 bedroom family home.

westernpromise

Zero_Sum wrote: »

Im not denying the country as a whole is wealthy. The problem is much of that wealth is concentrated amongst a small propotion of the population.

You think it should be concentrated in your hands presumably. LOL!

lisyloo

Goldman2020 wrote: »

Anyone within inner and outer London have any comment re the cost of renting and house prices in relation to the topic?

Is it not mainly supply and demand? And also not helped by the amount of foreign buyers?

Anyone who does central government related work doesn’t have a choice about working in London.
If you’re a nurse of a driver then I would agree with statements about moving north, but if you have a career in a government department or bank/stock exchange then it’s a lot harder.

For people of high income and perhaps a couple on middle incomes it can still be worth it.
We are planning to retire about 55 rather than 67 so for us it has been worthwhile to make some money (earning) for a few years.
I am glad we chose to rent for this shortish (7 year?) period.
People didn’t believe me when I said cut off point to buy was 9 years, but it was a second property with CGT and extra stamp duty.
I did some calcs with assumed growth in hpi and with hindsight we know prices are now going down, so I overestimated hpi and rent increases (none).
I decided to rent and put into my SIPP with 45.8/32% tax relief (my old employer gave me their 13.8% NI, new one doesn’t).

I’d love some parts of government and banks to move out of London and a few bits have but not much. It’s a vicious circle. The banks have been in London so the talent is there, is the banks now move to bleneau gwent they’ll have trouble recruiting hedge fund managers.

Whilst people decide this is the best place for them to be then house prices and rents will remain relatively high.

London is not my first choice but my partner was unemployed for 12 months. People sneer at this In their comments when we have very low unemployment, but when you are near retirement (not attractive for any physical jobs) and have industry specific skills and if you are advanced in your career then it becomes very difficult.

Can you imagine Boris Johnson becoming a deliveroo rider?
Sure he rides a bike but at 54 he’d have to stop half way through the shift.

Whilst one anecdote I suspect it may be the same for others (at least those with families).
It might not be their first choice, but the job/career advantages (and sometimes it may be their only offer) make it worthwhile for them and their family.

The one thing that is surprising is the yield. Gross yield of 4% in zone1.
The landlord has done well on the capital gains but not the income, but they won’t be complaining.

lisyloo

westernpromise wrote: »

You think it should be concentrated in your hands presumably. LOL!

Some of us would like wealth to be a bit more evenly distributed (and not only the have nots).
An example of a rich socialist is Charlotte church.

Countries that have less inequality score higher for happiness.
We’re doing quite badly for inequality in the UK.

Unfortunately I don’t feel there is a good offering politically.
I have some liberal/socialist tendencies but I won’t vote for Corbyn/Abbott.

There are some moves going on.
Not sure if you’re aware of moving contractors inside IR35, but in general not enough as were hugely distracted by brexit at the expenses of everything else.

Zero_Sum

)

westernpromise wrote: »

You think it should be concentrated in your hands presumably. LOL!

No, just a more even distribution
Its a key driver behind Brexit, leave voting areas are those that have generally suffered the hardest due to Tory austerity & general lack of investment.

lisyloo

Zero_Sum wrote: »

)
Its a key driver behind Brexit, leave voting areas are those that have generally suffered the hardest due to Tory austerity & general lack of investment.

Or rather perceive it that way.
There are areas that get EU money are leave areas.

How do you link Tory austerity to the EU?

Zero_Sum

lisyloo wrote: »

Or rather perceive it that way.
There are areas that get EU money are leave areas.

How do you link Tory austerity to the EU?

Its more about kicking the establishment & sending a message they arent happy with the status quo.
The EU funding is a bit of myth also, London has had loads of it, one of the poorer areas near me hasnt seen any. In the main it still goes to the major cities. And in any case its our money anyway that we're just getting back.