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Original poster

What will actually happen?

217 replies

usernamechanged1 · 25/03/2023 21:40

There are many threads on here about mortgage, rent, utility, food prices all going up. I don’t think there are many left who aren’t noticing the financial strain.

So, whilst we’ve all heard “this can’t go on…” and “when will this stop…”, it is continuing to go on and shows no signs of stopping. I’m wondering what we should actually expect.

I feel like we’re heading towards a place where people will be working but literally unable to survive. I appreciate there are people in that position already, so what happens when this is a mass problem affecting a majority of the country.

It’s akin to working an eight hour shift and having 13 tasks taking 1 hour each to do. It’s simply impossible; the maths don’t add up.

Is it out of the realms of possibility that we could see people take to the streets? For crime to shoot up (shoplifting, robberies etc).

I think many of us thought the CoL crisis would be temporary, but maybe it isn’t.

OP posts:
sevenbyseven · 25/03/2023 23:05

I just think the bubble has burst. Cheap food, cheap air travel, excessive consumption, fast fashion, our wasteful, disposable culture. Lots of that is unsustainable, environmentally as well as economically.

Unfortunately our society is far from equal so some are feeling the pain far more than others.

RedEyeBaby · 25/03/2023 23:09

The cost of housing as a multiple of wages is more. We spend less on food as a percentage of income - I read somewhere it has been about 17% these last decades, compared to the middle of the 20th century when it was more like 40%. But houses cost more multiples of your salary than years ago (I'm generalising) so of course we struggle.

Petrol has gone up hugely of course, and heating but it's true that houses were naturally colder in the past. I'm not suggesting the old days were better, just making comparisons.

We've not had a foreign holiday in a long time but it is what it is.

In moving home, we have signed up to a mortgage that will accrue a large pot of value in the house. That money must be earned, but it is static and cannot be used to heat, eat, clothe, or entertain. It will only flow again when we pass away and the house is sold, and our children will undoubtedly need to put their share of it into their own houses. Nobody wants to have their house devalued of course, so it's a very difficult thing to redress. There may be a price crash but then many people will be plunged into negative equity, and anyway, prices would have to fall a long way to return to the income multiples of even the 1990s.

A wage increase would help people pay bills, but wouldn't really help will house prices because it would encourage people to buy a bigger house, I think.

But it's all just opinion and speculation. I'm not an expert.

RedEyeBaby · 25/03/2023 23:11

I would agree with posters' comments about overconsumption and waste. We get a lot of products imported from very far away, that's money flowing out of our pockets into the economy of a different country. We used to be really good at manufacturing, now it's so rare.

SwimmingAgainstTheTides · 25/03/2023 23:12

I have said this before on MN, financially l am probably one of the less well off on here, widowed lone parent, minimum wage, no holidays, car , savings, etc for ten plus years, and l probably out work many , yet in other ways l am one of the richest because of my mindset.

Mamamia7962 · 25/03/2023 23:17

Agree that the bubble had to burst. We want it all cheap food, cheap holidays, cheap fuel, cheap cars, cheap throwaway imported goods. It couldn't go on.

Babyroobs · 25/03/2023 23:26

There does still seem to be a lot of people who are not struggling though. I was in the hairdressers this morning ( something I've considered giving up as it costs a lot). There was a small group of hairdressers and customers all discussing their summer holiday plans - all abroad- Greece, Cyprus for 10 days, talking/ comparing their all inclusive deals, multiple kids going, all were mid thirities I'd say, so not an age where kids left home etc. My db and family all off to new York to celebrate the end of A'levels soon, colleagues on constant cruises, 3 weeks trip to India no expense spared. Now I know there are a lot of struggling people as I meet a lot through my work. Would be interesting to know what percentage are struggling to meet basic costs as there seems to be a lot who still have plenty of excess money. Also I know you can't always trust everything on fb but mine really is a constant stream of people out multiple times constantly - drinks, meals, spa days. How are they doing it I would love to know !!

AlwaysGinPlease · 25/03/2023 23:37

Babyroobs · 25/03/2023 23:26

There does still seem to be a lot of people who are not struggling though. I was in the hairdressers this morning ( something I've considered giving up as it costs a lot). There was a small group of hairdressers and customers all discussing their summer holiday plans - all abroad- Greece, Cyprus for 10 days, talking/ comparing their all inclusive deals, multiple kids going, all were mid thirities I'd say, so not an age where kids left home etc. My db and family all off to new York to celebrate the end of A'levels soon, colleagues on constant cruises, 3 weeks trip to India no expense spared. Now I know there are a lot of struggling people as I meet a lot through my work. Would be interesting to know what percentage are struggling to meet basic costs as there seems to be a lot who still have plenty of excess money. Also I know you can't always trust everything on fb but mine really is a constant stream of people out multiple times constantly - drinks, meals, spa days. How are they doing it I would love to know !!

Your last line - how they are doing it ...is easy to answer. It's different incomes. Simple.

DrCoconut · 25/03/2023 23:39

Interesting to see a caravan mentioned as a cheap holiday option in times gone by. Prices for places like Haven are eye watering now. Even smaller sites are charging £700 - £800+ for a week in summer. That is way beyond the budget of people who are struggling.

Capricornone1 · 25/03/2023 23:40

The rich and poor divide will be even bigger than it already is.

Capricornone1 · 25/03/2023 23:44

SwimmingAgainstTheTides · 25/03/2023 23:12

I have said this before on MN, financially l am probably one of the less well off on here, widowed lone parent, minimum wage, no holidays, car , savings, etc for ten plus years, and l probably out work many , yet in other ways l am one of the richest because of my mindset.

Nope I’m definitely poorer! Haven’t had a holiday since 2019 and recently lost my job. It’s bloody hard to keep up the positive mindset when you through poor mental health into the mix. I pray that things will one day change.

Nat6999 · 26/03/2023 00:34

As mortgage rates rise there will be more repossessions & the housing market will be flooded with more underpriced houses as lenders try to recoup money. It was the same in the 80's, don't believe anyone that this week's rate rise was the last one. The government are going to have to do something or the whole country will be flooded with homeless people who have had their homes repossessed. Bringing back interest relief on mortgages would help & stopping housebuyers borrowing more than 3 times their income.

Dracuuule · 26/03/2023 00:41

This really is the time when the rich get richer and we get poorer.
Why isn't there more anger about this?
It doesn't have to be like this, yet it is.

pompomdaisy · 26/03/2023 00:45

I think people will have to cut their cloth accordingly. We went to visit my DH mum last week. All the nephews arrived in much nicer cars than us. All on medium to low salaries. I think people have just got used to a level of debt that they won't be able to sustain.

PlateBilledDuckyPerson · 26/03/2023 00:48

SunshineGeorgie · 25/03/2023 21:57

It feels like we've gone back to the 70's

Luxuries like holidays abroad, fancy homeware, brand new cars etc were not I thing I recall

It was all secondhand, caravan holidays

I don't think it will end or 'stop'...this is it now.

In some ways, that wouldn't be a bad thing. It would benefit the environment.

ArseInTheCoOpWindow · 26/03/2023 00:51

I just think the bubble has burst. Cheap food, cheap air travel, excessive consumption, fast fashion, our wasteful, disposable culture

And yet, Primark which is queen of high fashion is always rammed.

Crumpledstilstkin · 26/03/2023 00:54

I think people have got used to a level of lifestyle that's totally unsustainable. I've travelled a lot and the lifestyles were totally different virtually everywhere. Most of the world don't live in Instagram perfect houses with heating and hot running water on tap, go on massive holidays 3x a year, and drive brand new cars. A lot of places rely on a community to pitch in together to pool resources much more. It's not necessarily a bad thing if our lives become a bit simpler as long as expectations on aus adjust too.

SunshineGeorgie · 26/03/2023 02:01

Yes, if nothing else, the environment will do better.

GayforMoleman · 26/03/2023 02:01

Some of these replies are a fucking joke. When you're already living on the absolute basics, prices keep going up and you're now in very real danger of losing your home, do come back and reply again. You have no fucking idea how much it's gone from frying pan to fire.

EddieSteady · 26/03/2023 02:32

I read the other day we have more than half of the population (only just, it was 52% I think) taking more out of the pot than putting in. That's not sustainable. Plus there's covid to pay for.

The problem is, everyone agrees that we need more money as a nation, but no-one wants to be the one who pays more tax or putting more in in other ways.

I think they'll have to be some kind of adjustment to social housing and it not being for life but think that'll be really distressing and unfair for a lot of people. I live in an expensive city in the SW and housing and rental prices are mad.

It's also a city with huge social housing waiting lists and you won't even be given a bidding opportunity unless you're over 55, in receipt of certain benefits, an asylum seeker or care leaver. So there's this huge swathe of people who rightly, aren't eligible for social housing but are priced out of the housing market, but need UC to help them pay their rent and bills even though they're in work. So it's this ridiculous situation where full time workers on what on paper is a decent wage, need state help.

SunshineGeorgie · 26/03/2023 03:24

Where would the people you kick out of social housing go?

Why would you do that?

Capricornone1 · 26/03/2023 04:05

GayforMoleman · 26/03/2023 02:01

Some of these replies are a fucking joke. When you're already living on the absolute basics, prices keep going up and you're now in very real danger of losing your home, do come back and reply again. You have no fucking idea how much it's gone from frying pan to fire.

This

EddieSteady · 26/03/2023 04:10

SunshineGeorgie · 26/03/2023 03:24

Where would the people you kick out of social housing go?

Why would you do that?

I didn't say I would kick people out now did ? i said it would be distressing and unfair but i think some adjustment should be made but i don't have a solution But there are a lot of people in social housing whose circumstances have changed. Kids have grown up and left home, they're now earning more etc. I know several people in 3/4 bedroom council houses who are now empty nesters or have adult kids still at home earning full time wages. While other families who currently have young children are in hostels or over-occupying 1/2 bedroom flats.

A family member has just been offered a 3 bed for her and her DC which is brilliant and she's been waiting for years. But her DC are in secondary school and so could be moving out in less than a decade or at home but bringing in full time wages. She's in her 30s so could be living there for 40 years. Do I think she should have to worry about being kicked out? No. But I also don't think it would be fair for her to be in a 3 bed council house for the rest of her life when she no longer needs a 3 bed when families with young kids can't get housed? No.

SunshineGeorgie · 26/03/2023 05:00

Once kids have moved out I doubt most people would be of an age to get a mortgage even if they are earning enough....not so easy

There aren't enough smaller properties and the rules are you find your own swap and it has to be correct size

So a couple moving from a 3 bed to a one bed need to find someone in a 1 bed wanting to swap......BUT, they would need to be eligible with enough people to fill the 3 bed. Swaps are hard to do, but that's the rules. Never going to happen

Crumpetdisappointment · 26/03/2023 05:16

there are plenty of well off people, you know with large cars, plenty of savings.
who post here