In Britain, Austerity Is Changing Everything (NYT Article)

dowie said:
I'm not trying to ignore that there are issues but didn't you also post previously on this subject about spending some silly amount on rent, presumably if you'd chosen to live in a cheaper area then over those 9-10 years you might have saved substantially more?

What I mean is there is generally a mix of factors, for example some of my friends who are often complain gin about being skint and work in media still want to live in fashionable areas and pay nearly twice as much in rent as they'd be paying if they lived somewhere more affordable.
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The cheapest place in Kidlington where I live a few miles outside oxford you need to earn over £60k to get a mortgage with a 10% deposit roughly. The average salary is less than half that. While in the past 12 months prices have been stable (less than 1% growth) they still rose 35% in this "cheap" area over 5 years

In general gap between house prices and salary is increasing, less people in the market, bank of mum and dad is slowing down, so its ether going to be a case of people are stuck in renting forever as only people able to afford the cheaper places will be LL's which poors more fuel onto the fire. That or it all collapses at some point.

Moving further out is not an option for a lot of people as any savings made will get gobbled up by the extra transport costs weather that be car bus or train.

I work hard, got a nice bumb in pay last year and hopefully this year, I have deposit money in the bank for cheapest place here almost and twice as much almost in non liquid assets I could sell but I can't get the mortgage as my salary is still to low and so they only want to lend me £150/160k which gets you nothing.
 
dowie said:
I think it is a mix of things, property has become less affordable but also there are some personal choices people can make too
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Its become less affordable due to supply and demand and people domestically (and foreign) seeing properties as a "investment" rather than a home for real people to live. I don't think the rises would be as massive if there was no B2L and high scaling tax's on the number of properties people own and a good house building program.
 
KillBoY_UK said:
The cheapest place in Kidlington where I live a few miles outside oxford you need to earn over £60k to get a mortgage with a 10% deposit roughly. The average salary is less than half that. While in the past 12 months prices have been stable (less than 1% growth) they still rose 35% in this "cheap" area over 5 years

In general gap between house prices and salary is increasing, less people in the market, bank of mum and dad is slowing down, so its ether going to be a case of people are stuck in renting forever as only people able to afford the cheaper places will be LL's which poors more fuel onto the fire. That or it all collapses at some point.

Moving further out is not an option for a lot of people as any savings made will get gobbled up by the extra transport costs weather that be car bus or train.

I work hard, got a nice bumb in pay last year and hopefully this year, I have deposit money in the bank for cheapest place here almost and twice as much almost in non liquid assets I could sell but I can't get the mortgage as my salary is still to low and so they only want to lend me £150/160k which gets you nothing.
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I don't think it is any more, prices seem to be stagnating a bit and we might see that continue for a bit or even drop a little.

Buy yeah if you're on a low income then it probably isn't realistic as a single person to buy a place, you'll perhaps need to be in a relationship. I guess it isn't just the expanding population (through both births and immigration) and the increased numbers of people in the workplace, greater participation of women in higher paying jobs etc.. but also I guess with people getting married later too you have more single people taking up say 1 bedroom properties.
 
SPG said:
Then leave the area, no one is forcing you stay.
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I was going to argue but the others already have done. There is an element of compromise on where you live but for us; we both work in central London and would not be able to get jobs outside of London (film and finance respectively). Any savings on moving out would be gobbled up by transport costs times two. Not to mention that we've actually been in our flat for a long time with no rent increases so compared to the "market rate" we're actually paying a lot less. So we're managing to save an awful lot whilst living a fairly comfortable lifestyle. Doesn't mean we could buy the flat we live in though -- or anything in our area.
 
dowie said:
I don't think it is any more, prices seem to be stagnating a bit and we might see that continue for a bit or even drop a little.

Buy yeah if you're on a low income then it probably isn't realistic as a single person to buy a place, you'll perhaps need to be in a relationship. I guess it isn't just the expanding population (through both births and immigration) and the increased numbers of people in the workplace, greater participation of women in higher paying jobs etc.. but also I guess with people getting married later too you have more single people taking up say 1 bedroom properties.
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Do you not think its broken system we have if people need double the average salary to even get a studio/1bed ? Heck people oh below average who need homes too like cleaners, nurses teachers etc.
 
KillBoY_UK said:
Do you not think its broken system we have if people need double the average salary to even get a studio/1bed ? Heck people oh below average who need homes too like cleaners, nurses teachers etc.
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It's a mix of both, given the changes in the workplace, in people's lifestyles etc.. then some of it is understandable. There is also a shortage of new homes being built though and there probably should be some reforms made to the rental market to give people more stability there - 12 month contracts as standard might well be fine for flat shares but aren't so great for families.
 
Scam said:
Not to mention that we've actually been in our flat for a long time with no rent increases so compared to the "market rate" we're actually paying a lot less. So we're managing to save an awful lot whilst living a fairly comfortable lifestyle. Doesn't mean we could buy the flat we live in though -- or anything in our area.
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Same here actually.

I'm spending a lot on rent, but I live in a terrace of 4 houses which are all the same size/layout and all owned by the same landlord.

My rent hasn't gone up from £950 PCM since 2013 when we moved in, but the identical house next door was recently rented out for current market rates at £1300 a month.
 
When i was making a pointless jaunt around the Isles, I noticed that people were commuting from Newcastle to London... that must be so irreparably depressing...

It's cheaper to fly to a different country and back to London than it is to do that...
 
Its only broken as a significant number of people used to live in Council stock housing, these were the people on low wages. It was fair rent and in general not for profit, it was effectively yours for life and so it should be.... then along came.... wait for it... wait for it.... Thatcher :)

Others went to the private sector due to jobs, not married etc.

A quick fix with simple legislation would be "No one is allowed more than 1 extra property's for renting purposes" This would instantly get a bucket load of houses back on the market, lets see how the blue run from that.
 
Fubsy said:
Problem with moving away is that then you end up spending time and more money still on commuting. Not exactly great public services at the time being either.
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But if it enables you to get onto the ladder? I spent that last 10 years of living with parents in an area where the average price is over £500k. Paying 2.3k a year travel costs.

No way I could afford to live there despite all my friends living there with their families.

I moved 15 minutes down the road (an A road mind you). Probably about 8 miles as the crow flies.

Now in an area where the average house price is 252k. 10 minute longer commute each way, and an extra £700 a year. I also have a nice 3 bed semi.
 
balky12 said:
snip
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Exactly why I live in Thatcham and not Newbury, but there isn't much in it around the area, our not so nice 2 bed was 250k. It's still too much when on 24k p/y gross. I'm lucky I live with someone that can help - otherwise it's renting a room time again.
 
SPG said:
A quick fix with simple legislation would be "No one is allowed more than 1 extra property's for renting purposes" This would instantly get a bucket load of houses back on the market, lets see how the blue run from that.
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I think it would need far more complex changes than that to stop people from giving ownership of individual properties to all their extended family, but if done correctly, it could help some areas.

Southampton has a huge student population, but a ridiculously low number of beds available for them in halls of residence. So landlords won the lottery by buying an awful lot of the more basic houses/flats within ~3 miles of the city centre through the Buy To Let scheme , turning them into "silly season" houses of multiple occupation at sky-high rents per home, pushing up rent prices for non-students and pushing up house buying prices at the lower end of the market in the surrounding ~10+ miles.
 
Yes, same happened in Nottingham, they have turned some (ok large) homes in single student bedsit property's and all the grandeur is gone, the people that own them do not give a fig.
 
This is pretty much happening everywhere to be honest. Most places where there are universities also have large parts of land bought up to build student accommodation which has angered many local people because there is increasing demand for more homes/flats to be built that are not being met.

I do wonder if we will begin to see over the next 10-20yrs more people relocating further and further into Northern England and Scotland because of house prices and availability. It seems inevitable really.
 
I was working in a school in Stoke today where they've managed to find the funding for a secondary kitchen that will be open during the school holidays, because a lot of their kids aren't getting fed so it will serve free food for the kids during the holidays.
 
It's already happening. And like you say that phenomenon is not unique to student digs. Why do you think 1-2 bed flats are so unaffordable nowadays? BTL is the reason. It's a easy cash cow for those on the right side of the fence.
 
Telecaster said:
I was working in a school in Stoke today where they've managed to find the funding for a secondary kitchen that will be open during the school holidays, because a lot of their kids aren't getting fed so it will serve free food for the kids during the holidays.
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I wish there was more exposure of this. The government drones on about child obesity, but fails to see the other side of it completely. I do wonder if the very children they target regarding obesity are actually children from wealthier families who can afford to have the food they want. Since starving children with nutritional deficiency resulting in rickets are on the rise too, and you then have to wonder whether theas children in particular are suffering because of poverty.

The sugar tax will make no difference really to stopping the consumption of sugar in wealthier individuals and families, but it probably will to poorer people and children, who may not even be obese to begin with, and who may actually benefit from sugar such as those in milkshakes in the first place.
 
Bear said:
For sure I sound angry when someone says quality of life isnt as good as some suggest and then begins to real off a list of things which are absolutely within the control of the individual, but seemingly want to hand off responsibility for it
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You don't live in the real world. This typical "alright Jack" attitude is exactly the problem with the older generation.
 
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