In work poverty due to overpriced housing costs

triathlon

MaxiRobriguez wrote: »

"Entitlement"

Spoken like someone who sounds like they're sitting quite cushty in a house they couldn't afford if they were buying it again today....

I would, and I am sure a lot of other people I know would. There are those that look at their lot and then look at what conditions there are in that era and then go for it making the best of what is on offer. Then there are the other type that cave in on day one and spend the next 40 years blaming the world for their failures.

Same pattern over and over again. I personally wish I was starting out today, HTB, lowest interest rates in history, and open gateway to trade with the world,

RelievedSheff

AG47 wrote: »

There is so much in work poverty now due to the discrepancy between wages and housing costs.

There can never be an end to help to bubble or other schemes until property comes down to meet wages or wages go up to meet property.

Either way there needs to be a correction or continue to inflate the bubble with housing benefits and schemes to help normal people who can’t afford overvalued property to somehow be able to afford it at inflated levels.

There is plenty of affordable housing if people are willing to look outside the box and move away from London and the South East.

Yes the same job in areas away from these property hotspots might bring a lower wage but at the same time the cost of living and the cost of housing is also much less.

triathlon

AG47 wrote: »

There is so much in work poverty now due to the discrepancy between wages and housing costs.

There can never be an end to help to bubble or other schemes until property comes down to meet wages or wages go up to meet property.

Either way there needs to be a correction or continue to inflate the bubble with housing benefits and schemes to help normal people who can’t afford overvalued property to somehow be able to afford it at inflated levels.

Reading your posts then I would probably agree yes, but poverty is probably not the right word.
I make enough money to live in housing that I am more than happy with as do all of my friends and family, and some of them do just everyday normal jobs.

I am not being funny and do not wish to offend, but there are some people who are always going to be in the poorest housing, that's a fact you cannot get away from. The only way to counter this is to be a success in life and then reap your rewards. Of course some try to buck the system, crime, hope by pure luck it falls into your lap, but by far the only way to get on life is education, hard work and of course some ability.

AG47

westernpromise wrote: »

Property is by definition affordable at its current price. For property prices to fall, there would need to be a decline in demand for it at that price. Typically this requires either demographic change or a recession that reduces what people can afford pay.

True demand is only from people who can afford it. There could be an overcrowded refugee camp which from your point of view would men huge demand.

westernpromise

AG47 wrote: »

True demand is only from people who can afford it. There could be an overcrowded refugee camp which from your point of view would men huge demand.

Rubbish. Nobody wants to get into a refugee camp, they are put there.

lisyloo

RelievedSheff wrote: »

There is plenty of affordable housing if people are willing to look outside the box and move away from London and the South East.

Yes the same job in areas away from these property hotspots might bring a lower wage but at the same time the cost of living and the cost of housing is also much less.

No some (many) of us do jobs that only exist in London.
Central government, investment banking, some airport jobs etc.

Yes if you’re a hairdresser or a bus driver, no if you have a job as an air traffic controller or government department or hedge fund manager.

There are loads of jobs around the London airports from the pilots, air traffic controllers, baggage handlers that cannot be reproduced (in numbers) elsewhere.

There is a reason prices are higher where the numbers of jobs and pay are better.

What’s the mathematical point of getting a much lower paid job so you can get a lower price on a house?
Surely you are better off getting better jobs and a higher priced asset and then you can free up equity when you retire?

Arklight

lisyloo wrote: »

No some (many) of us do jobs that only exist in London.
Central government, investment banking, some airport jobs etc.

DH looked outside London for 12 months and could not find a job and no, no one was interested in him doing things he’d done 10 or 20 years ago so trying to go down the career ladder is not possible.

Yes if you’re a hairdresser or a bus driver, no if you have a job as an air traffic controller or government department or hedge fund manager.

There are loads of jobs around the London airports from the pilots, air traffic controllers, baggage handlers that cannot be reproduced (in numbers) elsewhere.

There is a reason prices are higher where the numbers of jobs and pay are better.

Completely agree. The UK is a small country where most of the high value enterprise is located in and around one place.

It's very easy to tell someone to just leave the entire of the South East, and move to Wolverhampton, but are there jobs there?

movilogo

The property price inside M25 is inflated because it is propped by speculation and continuous supply of cheap labour.

Large multi-nationals in London employ graduates who stay in London by sharing/renting. When they want to start family, they move out of London and their place is filled by new graduates joining workforce and same circle repeats.

This keeps multi-nationals earning more profit by keeping wage low and profit high.

You might argue London wages are higher which is true in absolute terms. But in relative terms (against house price) London wage is lower.

London is like a pyramid scheme where flight of people continuouly going on - those who climb little higher live the game with new entrants coming their place.

Those who sit in top of London pyramids enjoy this cycle and continue to become richer.

This is why "Remaining in EU" support is highest in London. Without continuous cheap labour supply, the London bubble will burst.

You might ask why large businesses are not moving out of London. The answer is their owners/directors live in London and hence they don't want to inconvenience themselves

Having said that, some businesses did realize the problem and are moving out of London to places like Milton Keynes, Birmingham etc.

RelievedSheff

lisyloo wrote: »

No some (many) of us do jobs that only exist in London.
Central government, investment banking, some airport jobs etc.

Yes if you’re a hairdresser or a bus driver, no if you have a job as an air traffic controller or government department or hedge fund manager.

There are loads of jobs around the London airports from the pilots, air traffic controllers, baggage handlers that cannot be reproduced (in numbers) elsewhere.

There is a reason prices are higher where the numbers of jobs and pay are better.

What’s the mathematical point of getting a much lower paid job so you can get a lower price on a house?
Surely you are better off getting better jobs and a higher priced asset and then you can free up equity when you retire?

Are you suggesting that the London airports are the only ones in the UK?

You clearly have the must live and work in the South East mindset. But actually for the vast majority of people who don't work in central government or investment banking there are more affordable options away from London.

You don't need to be paid the same amount away from London due the the lower cost of living and the lower cost of housing. That doesn't mean you are living to lower standards just to lower costs.

westernpromise

movilogo wrote: »

The property price inside M25 is inflated because it is propped by speculation and continuous supply of cheap labour.

Cheap labour can only afford cheap housing so this HPC/conspiracist nonsense fails.

London house prices are high because it's Europe's only truly international city and one of only five in the world (the others are Hong Kong, Singapore, New York, and Dubai). If you're an ambitious economic migrant in Hungary, you don't head to Madrid or Berlin to make your way in the world. You head to the nearest English-speaking capitalist megacity.