£144,000 p.a to keep up with London house prices...

[nicko31]

That's pretty depressing if you are a renter in London, you need to earn £144k gross p.a just to keep up with the capitals house price inflation before you've done anything. When this bubble bursts it gonna hurt, no wonder the government doesn't want to withdraw help to buy.

 

[Greavsey]

Do you really think help to buy is propping up the London market!? If so then you are mental. It is foreign money flooding in as London is seen as a liberal safe place to live with a moderate climate and convenient time zone for doing business across the world.
This is then obviously having a knock on effect across the suburbs and into the commutable parts of the South of England. All the time most of the Middle East and Russia wants, and the government allow them, to live in London then I believe our "inflated" prices are here to stay.

Not sure what the answer is for first time buyers in the future.

 

[studio150]

It must be depressing when looking to buy in London, the Metro carries details of new developments on a regular basis, and it always seems that prices are from £350,000 which is for a one bedroom apartment. Unless you want to live in a riot area there is little or no chance of affording that.

 

[Uncle C]

House prices will always go up.

 

[halbpro]

House prices will always go up.

As an overall trend, pretty much yes. Not necessarily on a year to year scale though.

 

[sten_super]

Do you really think help to buy is propping up the London market!? If so then you are mental. It is foreign money flooding in as London is seen as a liberal safe place to live with a moderate climate and convenient time zone for doing business across the world.
This is then obviously having a knock on effect across the suburbs and into the commutable parts of the South of England. All the time most of the Middle East and Russia wants, and the government allow them, to live in London then I believe our "inflated" prices are here to stay.

Not sure what the answer is for first time buyers in the future.

I'm not sure there's any more truth in saying that foreign money is propping up the market. It is certainly affecting the very top end of the market, and there's bound to be some trickle-down, but I don't think that's what's really driving the market as a whole. I wonder to what extent it's driven by investment buyers (either individuals or funds) buying property based on the strong rental market and seeming never-ending price rises.

House prices will always go up.

Blimey you've changed your tune!

 

[Vegas Seagull]

That's pretty depressing if you are a renter in London, you need to earn £144k gross p.a just to keep up with the capitals house price inflation before you've done anything. When this bubble bursts it gonna hurt, no wonder the government doesn't want to withdraw help to buy.

Or good news if you own a nice big house!? Yippee

It's not a bubble & only going to hurt if you bought in the year or so before it bursts AND can't afford to pay the mortgage AND have no savings AND don't have parents to help you out....

 

[Icy Gull]

I watched this programme the other evening, real eye opener it was for me. I had no idea so much foreign money was going into basic London accommodation before it was even built. Well worth a watch imo.

http://www.bbc.co.uk/iplayer/episode/b03tqzqt/inside-out-london-the-great-property-race

 

[Uncle C]

Blimey you've changed your tune!

Glad to see you're paying attention.

 

[Greavsey]

Or good news if you own a nice big house!? Yippee

It's not a bubble & only going to hurt if you bought in the year or so before it bursts AND can't afford to pay the mortgage AND have no savings AND don't have parents to help you out....

Exactly. If things didn't go tits up after 2008 then not sure when it will, other than the obvious caviat of full scale nuclear apocalypse! Market forces are only getting stronger and what sane government or financial body is going to upset the apple cart with regulation now?

It has long been the case in major capital cities across the world that the elite own property in the prime locations and everyone else rents and is happy to do so. We are evolving or probably evolved to that model.

 

[Albion Dan]

It must be depressing when looking to buy in London, the Metro carries details of new developments on a regular basis, and it always seems that prices are from £350,000 which is for a one bedroom apartment. Unless you want to live in a riot area there is little or no chance of affording that.

Loads of two bed flats under £300k in perfectly decent areas within a 20m commute from mainline stations. Those ads are always advertising property very close to the city or river. The prices are ridiculous though, I have no idea how my kids will afford to stay here.

 

[Uncle Spielberg]

The UK will become like the rest of Europe with 70% of people renting, not because they want to but because they have no other option. This will get worse from 2015 when people getting their pension pots can get the whole lot in cash and will result in landlords building portfolios of rental properties as their pension income.

 

[Tom Hark Preston Park]

That's pretty depressing if you are a renter in London, you need to earn £144k gross p.a just to keep up with the capitals house price inflation before you've done anything.

Equally depressing that there will be a further knock-on effect on Brighton house prices as more and more London-based would-be buyers give up the chase and price local would-be buyers out of their own town.

 

[Triggaaar]

House prices will always go up.

.

 

[Uncle C]

Equally depressing that there will be a further knock-on effect on Brighton house prices as more and more London-based would-be buyers give up the chase and price local would-be buyers out of their own town.

But I thought rising house prices were a good thing.

 

[Uncle C]

.

Are you smiling or do you have wind?

 

[Tim Over Whelmed]

House prices will always go up.

Indeed they will

 

[Triggaaar]

Are you smiling or do you have wind?

I'm appreciating your changed view on house prices.

 

[Uncle C]

I'm appreciating your changed view on house prices.

So you should. What could possibly go wrong.

 

[Tom Hark Preston Park]

But I thought rising house prices were a good thing.

Depends on who you are. If you're a bright-eyed happy teenager without a care in the world, you probably haven't the vaguest notion yet that you'll be living with your parents til your forty, or you'll have to share a house with five others to afford the rent or you'll have to move away from the area to even stand a chance of getting a place of your own.