[quote onlychildhamster]@MrsSkylerWhite we are on combined income 70k, we bought a flat for 400k at age 28 and 30 in zone 3 north london. Lived with parents for 3 years to buy it. We are a 10 minute walk from bishops avenue where a house can cost up to £30 million so there are affordable pockets even in the most posh neighbourhoods. I have friends who live in Primrose Hill and they say there is a lot of poverty in the council flats there- problems with substance abuse, addiction, food insecurity. I think average people are more likely to live in Camden which is also very diverse, and i know perfectly ordinary people who own flats there.
But I don't really get why everyone keeps comparing this house to their local area. There was a thing in the metro about a tiny studio flat in the knightsbridge area going for £325, it is literally the size of a shed. It overlooks harrods and harvey nichols. So small is the flat, that Portuguese firm Caiano Morgado, who specialise in space-saving, were brought in with the previous owner to rethink and get the most out of the miniature space.
metro.co.uk/2021/08/11/shed-sized-micro-penthouse-overlooking-harrods-sells-for-325000-15069413/
It was advertised as being suitable for a member of domestic staff for an ultra rich family who lives in a bigger apartment in the same building. It can also be used to store shopping during annual shopping trips to Harrods My Dh hypothesized that it might even be used for affairs and liaisons that a rich man doesn't want his wife to know about!
There were so many commentators who said what £325k could buy in their respective villages/towns which were all nowhere near London, let alone Harrods. There was this lady who commented that it could buy a huge converted farmhouse with acres of land where she lived. I enquired if that was anywhere near Harrods or even any department store selling designer goods. If a person wants to buy a place to store shopping, why would they buy it in rural NE England which is SEVERAL HOURS from Harrods? Likewise for a member of domestic staff, what good is putting their maid in Bolton when they live in Central London... And if they purchased an apartment for liaisons, they can't exactly have a liaison in a mansion in northern england if they live in London right???
Its the same for this house even if its £2 million, not 325k. its also in a very posh neighbourhood, near good private schools and also Regents Park. Yes you can buy a bigger house in the North of England with the same money, but it probably wouldn't fit their requirements. Maybe it would change in the future, but I think for now the majority of people with £2 million budgets still prefer to stay in London and the SE as they are far more likely to have business interests there...[/quote]
The point is the over inflated prices in London that isn’t reflective of the economic fundamentals.
We all know London is expensive but the issue is the extra price paid for these houses because of location really does not accord with any real economic value. The demand is based solely in an emotional need to be seen in the right postcode.