Bonzo77 Posted November 7, 2014 Author Share Posted November 7, 2014 Yes. Inflation alone would push that £5k up to about £75k all on it's own - dont forget the massive inflation figures we had in the late 1970s for a start. To get that up to over 200k is only a trebling of prices, and that is not at all uncommon for an in demand good who supply is generally inelastic on the timescale - the price rises and rises quickly. The "massive" increase in housing costs over the decades isn't actually that bad when you look at it. Yes it's well above inflation but with the demand from immigration, natural population growth, increase in single people and single parent families etc matched to a very much smaller increase in housing inventory - it's not that large an increase. But there wasn't a shortage of houses, yet there was a 200% increase in a decade. Link to comment Share on other sites More sharing options...
Anna B Posted November 7, 2014 Share Posted November 7, 2014 No we are short of housing full stop. Doesnt matter how much you have there is a general shortage of housing stock at all levels of the market, that's why prices are rising. You don't find many people who can afford £2,800 a month rent in homeless hostels. Funny that. Link to comment Share on other sites More sharing options...
Obelix Posted November 7, 2014 Share Posted November 7, 2014 You think you are making a clever point I know Anna, but the truth is you are simply not understanding the implications of what you are saying. You dont find them, because instead of paying £2800 a month for a house worth that they pay a little over the odds for a slightly less good house. Ther person in there pays a little more, for a house worth a little less and so everyone shuffles down until the person in the one bed poky flat goes into a hostel and that person pops out onto the street homeless. Everyone's where you expect them to be (well everyone except you it seems) we have a shortage of housing everywhere and the guy on the street knows that all too well. As I said - we are short of housing full stop and that's why prices are rising. Now I know you'd love to pin that on the "rich" because that's the way you work in your "oh everything is just so so awful won't someone do something about it" but it doesn't help and it doesn't solve any problems whatsoever. ---------- Post added 07-11-2014 at 01:46 ---------- But there wasn't a shortage of houses, yet there was a 200% increase in a decade. But there was a shortage of houses - there has been a shortage of houses in this country to lesser or greater degrees ever since the late 1940's. Ergo the price rises... Link to comment Share on other sites More sharing options...
Bonzo77 Posted November 7, 2014 Author Share Posted November 7, 2014 But there was a shortage of houses - there has been a shortage of houses in this country to lesser or greater degrees ever since the late 1940's. Ergo the price rises... Not according to this.......... http://www.positivemoney.org/issues/house-prices/ Link to comment Share on other sites More sharing options...
lines Posted November 7, 2014 Share Posted November 7, 2014 Not according to this.......... http://www.positivemoney.org/issues/house-prices/ No, its not a "not", its an as well! Link to comment Share on other sites More sharing options...
Obelix Posted November 7, 2014 Share Posted November 7, 2014 (edited) Not according to this.......... http://www.positivemoney.org/issues/house-prices/ According to what? It firstly agrees with what I've just said then gives a pile of "data" that is completely unsourced anyway... Have a look at proper researched data... https://www.gov.uk/government/statistical-data-sets/live-tables-on-dwelling-stock-including-vacants Tie that up with the population figures and you can see the shortfall yourself and how it gets worse. Tie that in to adjusted inflation values... and you can see where it goes... Edited November 7, 2014 by Obelix Link to comment Share on other sites More sharing options...
cardoor Posted November 7, 2014 Share Posted November 7, 2014 The gentrifying of London is happening at an alarming rate and MUST stop. It is disgracefully incomprehensible that any council can sell off social housing to some greedy rich millionaire and make people homeless. Link to comment Share on other sites More sharing options...
Cyclone Posted November 7, 2014 Share Posted November 7, 2014 Makes you wonder why some rich kid would want to buy them then huh? Did you miss the part where they were bought by an investment fund, in which this MP is a minor (very minor) investor? ---------- Post added 07-11-2014 at 07:24 ---------- I suppose Benyon is a knight in shining armour then? It's just an average business doing what average businesses do. WHY were these people paying below market rent, 50% below? Who owned it before? ---------- Post added 07-11-2014 at 07:24 ---------- The gentrifying of London is happening at an alarming rate and MUST stop. It is disgracefully incomprehensible that any council can sell off social housing to some greedy rich millionaire and make people homeless. Was it council owned? I can't find anything that says it was. Also gentrification is normally considered to be a good thing. Link to comment Share on other sites More sharing options...
Bonzo77 Posted November 7, 2014 Author Share Posted November 7, 2014 It's just an average business doing what average businesses do. WHY were these people paying below market rent, 50% below? Who owned it before? Stop kidding yourself. The property was bought under the premises that the new land lord would keep the rent affordable, then they went back on that promises instantly and raised their rent. Why are they paying 50% below? Because that's what the average working Londoner can afford to pay. The market value is an inflated amount that only millionaire's can afford, because that's what the population of London is quickly becoming. These are hard working people, Nurses and such like. They deserve to stay in their homes. There's lots of other, more ethical ways this MP can use his money to make more money. ---------- Post added 07-11-2014 at 07:42 ---------- Also gentrification is normally considered to be a good thing. Why is it? Link to comment Share on other sites More sharing options...
Cyclone Posted November 7, 2014 Share Posted November 7, 2014 Was it? I've seen nothing to suggest that there was any 'premise' about rents. Clearly that isn't what the "average" Londoner can afford, if it was then that would be the market rate. If you run a business and you have a choice about charging market rate or some massively discounted rate, why would you not charge the market rate? You don't care who's paying it, so long as someone is. Businesses exist to make profit, not to provide subsidised housing to people in London. Link to comment Share on other sites More sharing options...
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