Can the last poor* person to leave London please take their kids with them.

(329 Posts)
fakenamefornow Mon 16-Jun-14 15:29:03

WTAF is going on with house prices? I want to move to London but it seems impossible.

I think Surrey's going to be next to remove all traces of the poor.

* By poor I mean anyone on average income or below, so actually, just not rich.

thedancingbear Mon 16-Jun-14 15:30:53

I want to move to London but it seems impossible

Trust me, you don't.

DamnBamboo Mon 16-Jun-14 15:31:17

Aside from the fact that I don't understand your post at all, the high houseing costs in London is not recent at all.
House prices have been prohibitively high in London for a very long time, well over a decade.

Many high earners can't afford it either.

DamnBamboo Mon 16-Jun-14 15:32:09

Trust me, you don't

Why not?

WorraLiberty Mon 16-Jun-14 15:33:03

Yes, why not? confused

MrsKoala Mon 16-Jun-14 15:36:45

We can't afford it. I grew up there and i have had to move away from my family and friends and DH has to pay £400 to commute in. When DH got £60k per annum we thought it was rock'n'roll money. Sadly it isn't anywhere near enough. But having said that we do much prefer where we live now/are moving to.

MaryWestmacott Mon 16-Jun-14 15:38:23

London has been for a while (as in, last 10 years or so) - a place for the very rich, the poor who get assistance to pay their rent/social housing, and the middle class young (who can afford to rent small flats for stupid money, but have to move out of London if they want space when they start a family of their own) - the only 'normal' middle income types I know living in London have been there for a loooonnnng time so benefitted from rising house prices, or those who sadly inherited a lump youngish (in their 20s) so could buy a normal sized house - but in those cases it involved someone very close to them dying before their time, and I quite frankly would rather live outside the M25 and my DCs have all 4 grandparents and uncles alive.

Where in London do you need to get to? Work out where the nearest 'big' train station is and work down the line. You'll find places you can afford are full of people just like you, I'm in Kent and it's full of young families saying things like "well, we had a lovely top floor flat in South East London, but we could get a 3 bed house with a garden for the same money here..."

MrsKoala Mon 16-Jun-14 15:42:14

Totally agree Mary. We are in Kent too and everyone at the toddler groups lived in flats in London then moved out here when they had their dc.

My DH works in London Bridge and based on advice from MNers we followed the line out to Kent and are now buying in Tonbridge (fingers crossed).

TheWordFactory Mon 16-Jun-14 15:49:13

marywest has it.

London is for the rich and the poor. And the young who will share/slum it.

Years ago DH and I bought a flat very centrally. It wasn't cheap, but we could afford it as two late twenties professionals. The block was full of people like us.

We've recently started living there again during the week sometimes (having rented it out for almost two decades) and the block is now full of extremely rich people...

SybilRamkin Mon 16-Jun-14 16:07:14

I disagree that London's not affordable - DH and I have bought a 3-bed flat in zone 3, admittedly with no garden but it cost c.£250k and is in a lovely area. And we don't earn ridiculous amounts, we're public sector.

Mintyy Mon 16-Jun-14 16:11:16

DamnBamboo
House prices have risen by something like 17% in London in the last year alone. No other part of the country is suffering anything like this kind of house price inflation.

I agree that London is for the very wealthy or those who are willing to live in tiny spaces with no gardens.

It is an utter shame.

MrsKoala Mon 16-Jun-14 16:12:11

We couldn't afford £250k Sybil and DH earns £60k.

ouryve Mon 16-Jun-14 16:21:15

Sybil - most families couldn't get a mortgage for a quarter of a million pounds on an average income, with the return to 3.5x salary limits. They'd need a stinking huge deposit upfront.

AmberLav Mon 16-Jun-14 16:22:51

It is getting silly here, I bought with DH in South East London in 2008, and we would not be able to afford to buy our house now. We have neighbours who bought for a pittance 30 years ago, when it was a much less nice area who have been amazed at how prices have gone (but it is a much nicer area now...).

It's hard to define rich, we are not bankers with big bonuses, but by most of the country standard I think we would be considered rich, despite feeling very squeezed middle!

Spidermama Mon 16-Jun-14 16:27:42

The average house in London is still going up in value by a thousand a month. It's a bubble and the government/bank of England are in denial. London is pulling away from the rest of the country like a steam train and soon there'll be no young talented creative people around any more. London will become like Dubai. A city for the rich and largely middle aged.

Brighton's heading the same way. Young interesting families can't afford to live here so they're all moving out to Worthing. Commuters from London are buying all the houses, putting up the prices beyond those one can afford on a Brightonian wage. It's a worry.

whois Mon 16-Jun-14 16:29:59

We couldn't afford £250k Sybil and DH earns £60k

You should be able to if you've been saving for a deposit.

10% deposit £25k
Plus
4 x £60 = £240k

WooWooOwl Mon 16-Jun-14 16:30:15

I agree with you that house prices are crazy, especially in London. I'd love to move back there at some point but I can't see it ever happening because of the cost of housing.

There are plenty of poor people in London though, they are just lucky enough to have social housing, and sometimes housing benefit as well.

juneau Mon 16-Jun-14 16:31:51

You live where you can afford to live. It has ever been thus. If you can't afford to live in London, don't. We live outside London (having lived there for seven years) and you couldn't pay me to go back. Yes, it has wonderful shops, restaurants, museums and lots of jobs, but its very easy to take advantage of those things while living elsewhere.

nicename Mon 16-Jun-14 16:34:53

Super rich or super poor (or expats on a stonking package). That's the trick!

MrsKoala Mon 16-Jun-14 16:35:47

Well the house we have just bought is £220k with a £30k deposit, the monthly payments are £1200 a month. which atm is all we can stretch to. However that is based on £400 fares and no car. So i suppose we'd only need ? £150-£200 fares so would be better off by £250? a month. Not sure if that would cover the extra mortgage? Also remember the cost of moving - £250k would be 3% SD and then the fees so at the best way another £6k?

Iseenyou Mon 16-Jun-14 16:36:46

There is hope in sight though - newspaper reports that London house prices actually fell (by 0.5%! but...) in early June compared with a month earlier - obviously still a huge annual rise, but slowing.... And I think there was something similar reported last week as well. But it varies in different boroughs, I think.
Still, the massive 'heat' has to some extent disappeared in London I think - not all properties selling within 48 hours of the open day, and I've noticed a number of houses changing agents, which usually suggests that offers have not been forthcoming or as high as vendors would like.

Still, it is true that London has been out of reach for many people for a long time - it is odd that it seems to be seen as more of an 'issue' now. Perhaps because the rest of the South East is now seen as going the same way?
The mortgage affordability tests do seem to be making a difference though - cash buyers can't/won't prop up the whole of the London market?

Fideliney Mon 16-Jun-14 16:49:37

Two higher rate tax payers here and (mainly due to bad timing re housing market) and despite decent deposit we had to resort to shared ownership to stay in London.

I'm regretting it TBH. We've made some money on our owned share but we are paying crazy money on rent on the rest, still being clobbered by spiralling living costs and meanwhile the soul really is being sucked out of London. Before my eyes.

Realistically now, because of DCs education we are stuck for another six years sad

Fideliney Mon 16-Jun-14 16:51:37

Why do you want to move to London fake?

MarshaBrady Mon 16-Jun-14 16:54:51

I don't think you can move in, yes unless on very high salary. I have lots of friends that don't earn loads, and some that do, but the ones that don't just bought their houses years ago as others have said.

But moving in, too hard. You need that equity unless you have that very high salary.

MrsKoala Mon 16-Jun-14 16:56:07

Also Whois, your calculations are based on someone accepting a 10% deposit. A few people we approached said they would only lend £180k based on DHs income - that's possibly different if there were 2 earners, i'm not sure? We found lots of people advertising 10% deposits and repayments of £900 a month on a loan of £200k but then when we actually applied the lowest we found on £190k was £1200. So i don't know what it would be on £225k. We also had to pay an extra £1k for the mortgage to be fixed at a rate we could afford without me working.

And if people have been renting already in the SE, the chances are they have not been able to save a big deposit as have been paying a lot in rent and council tax (rent on our 2 bed flat is £1300 and the CT is £240 a month shock )

I think it's shame as London is going to become a transient place where people can't afford to settle.

Join the discussion

Join the discussion

Registering is free, easy, and means you can join in the discussion, get discounts, win prizes and lots more.

Register now