Blame 'non-residential - foreign' investment and foreign money laundering. The blame lays with the UK British government who are the 'franchisers' of this unfair and illegal corruption.
That's ALL political party's, Tower Hamlets-Labour-it's glorious Labour councillors evicted social housing tenants in order to sell their homes to a luxury developer who-"completely coincidently" they all had an interest in (see Private Eye for details) The morons who only spot something when "The other lot" do the crime yet go all forgiving/understanding and quote by rote conspiracy theories when their own party does exactly the same is the real reason why nothing changes.
This is extremely true. London is a harbour for stolen public money, drug funds and other illicit funds around the world. And these guys don't care how much they buy houses at, as long as they can buy ...
THIS! I work in Singapore and pay extortionate rent. If I wanted to buy a property, I’d have to pay 30% more as I am not Singaporean. I agree with this big it frustrates me that Singaporeans are able (and do) to purchase UK property without restriction.
@@angelikadepelika3758 With freehold, you own the land beneath you and you have much more flexibility to develop your property. With leasehold, you don't own the land beneath you and you will likely have to pay the ground rent to the freeholder and service charges to the management company. Your lease tenure also decreases over time, so if you have a short lease, you'll have to pay (generally £000s) to extend the lease.
@@Afrinaturality aah yes, now i understand. Thank you. Amsterdam and a few other big cities also have allot of land on lease here. You own the house but the land is property of the municipality, and you lease for 50 years etc.
Much as I dislike the UKs dysfunctional property market, buy to let has actually democratised capitalism as it is less about your income and more about the rental income. The whole point of BTL as a financial play is relying on currency devaluation and consequent house price inflation. The government and the BoE is charged with maintaining price stability (low inflation) but housing - the biggest factor in the cost of living - is excluded from the official index. The screwed up housing market is little to do with free market capitalism and more to do with the "hidden hand of the state".
This has been the plan from the start. A very specific group of people is printing themselves money and buying the houses for theirselves and their relatives to bring their family in as immigrants and there is no houses left for true english people. This has been the plan from the start
so true, hope some guys start thinking about this problem of capitalism, where workers work and live for it making richer those who own those capitals but get alienated while trying to possess such capital. Wait a second...
You are trying to say that Londoners in 1991 are having the same issues that Londoners have now 1. The interest rates in the Uk were not 13-14% in 1991 2. £150,000 in 1991 is equivalent to £342,000 today even then the average house price in London today is £667k 3. Also a big problem is that salaries has not moved with inflation meaning that people can not easily save for a deposit anymore
Its a state controlled economy, where market prices are manipulated high through the pretext of "planning permission" High real estate prices are needed for the oligarchs who are invested into real estate. Also, the fiat money lending bank mafia which owns the government has a vested interest in making land scarce
@@dronyman The BOE base rate was circa 12% in 1990/91, and as now, mortgage rates were set slightly higher than this. So three year fixes, were indeed 13/14%. If base rates go back to anywhere near this rate, then you might find that you can actually buy this property in the future for 342k. Also, you did have to put a deposit down on property in 1990/91.
I was born in NW Greater London in 1980 and lived there until 2017. The house prices went beyond the reach of the average person a while ago. They really began to accelerate at the turn of the century. My parents bought their 3 bedroom semi-detached house in 1997 for £130k and it sold for £500k in 2017. Now that the credit has been cut and you can no longer get 90% mortgages, it's impossible to for most people to be able to get onto the property ladder. Even an annual salary of £30k/40k is a struggle and there's not many non professional jobs that pay that. And this was on the outskirts of London where the situation isn't as bad. The closer you get to central London the worse it get's. As far as renting goes, you'll pay over £3500 pcm just for a 1 bedroom furnished studio apartment in many places. You'll pay well over £1000 for the same in even the outer regions of London now. I have no idea how people manage to continue affording the prices tbh. You can do it on an average salary if you live on the outer skirts but only just. You'll be left with very little, if anything after rates/expenses. You can house share for around £600 pcm but that's not a nice way to live. Unless you are earning £50k +, don't even think about London
I've lived in NW London, zone 4, my whole life and the house price inflation is insane. Mum bought our 3 bed terrace in '89 for £92k. That was the thick of the downturn and interest rates were 15%. But she was able to do it. I think she's a bit perplexed that my sister and I haven't bought yet, but I tell her all the time; our terraced house we still live in is worth £550k today. It's out of reach.
It’s pretty simple. The general public are being priced out of London by the rich who are buying houses to rent out. This has a knock on effect which means Londoners have no choice but to keep moving outwards. This means now houses on the outskirts of London are way out of reach for new buyers. It’s not as simple as just upping and leaving London when your job/family/everything you have ever known is in London. I have friends who have been paying £1200 a month in rent for over 10 years, but when they try to get a mortgage that is half that cost they get refused. Absolutely insane.
Also certain industries have their hubs in London / S.E. The problem with moving to cheaper areas is that they often have fewer jobs, and generally lower wages, which makes getting a mortgage a less affordable prospect.
I agree but many people seem to forget about those people living on the outskirts/commuter towns of London. Since londoners are getting out priced they’re moving into areas which are considerably cheaper (by London standards) to be able to afford & then commute to work because those towns typically have easy assess into london (Mostly Kent/Essex towns) pushing up prices for people who’ve also lived in these area’s their whole life. A lot of these area’s have typically been predominantly social housing/working class with most of the social housing sold off & now privately rented out to those who would of got social housing, makes completely no sense. These area’s are practically becoming as gentrified as London is to accommodate the needs of new people moving in while pushing people who was born there, out. Personally, banks/mortgage lenders need to abolish the “X times your salary is the max you can borrow” and consider bringing back 100%+ mortgages to those who are financially stable. base it off of monthly payments & not the total amount borrowed.
It's not the rich buying houses, it's company landlords. I have a lot of new construction come up around me but can't buy any of those houses coz they're all built for renting. If you artifically create supply issues, prices would jump up for sure.
im from London and while i love my hometown, i have no idea why anyone would really want to buy property here. the city is turning overly dirty, overly populated with people just getting by and working 24/7, and it doesnt have the personality it once did. London is changing so much and not for the better. greed is taking over everything!
I'm a Londoner and I agree to some extent. It depends where you are in London. Some boroughs are (still) clean, well managed, quiet and worth their price. I want to buy a house in Stanmore in Valencia Road - the houses look like they were taken from Berlin. The area is super quiet, with Jubilee Line and a great park for jogging. I lived in many areas in London and some me be as you say but there are many great places too - SW19 and SW20. I now live in The Drive in Ickenham and it's also a great area.
@@adamuppsala1931 yes, for sure there are still nice areas, but the majority is not as nice as people make out it is (unfortunately) - realised this when I did couriering for a month. It’s not the exciting place it used to be! I always dreamed of having a town house but it’s not realistic anymore due to these prices. What you pay in London can get u a mansion with a swimming pool and land elsewhere in the U.K.… would rather have my own pool than a shitty communal garden 😂 hope you manage to make your dream of Stanmore come true!
Never visited such a beautiful large green city. Everywhere had a park and even out in lower income areas you get great parks. Absolutely loved Little venice, regents canal, Greenwich park… so quaint , yet so forward thinking and international.
@@marlboroqueen I would rather have a shitty communal garden and be so close to non-stop entertainment. 8 months of shitty weather in some big home somewhere quiet is unbelievably dull and miserable. London gives out so much energy which helps me cope with appalling weather. So much to do. Then every 6 weeks down to the Mediterranean. Big homes and countryside in England my ass.
When I was in Japan I rented a tiny box room in a not great place, but it was only 20,000 yen (about £160) a month plus bills of about another 7000 yen (~£50). I had money to eat and drink out so didn't mind a terrible kitchen and there was the sento (public bath) for just 300 yen so my shitty bathroom didn't matter so much. The last room I rented in London in 2014 was £530 a month, had a clothes moth infestation, and was on key meter so ran out of electricity all the time. Eating and drinking in London costs a fortune if you don't want chicken shop, and the shower in my place was broken for 3 months so I had to wash with a BUCKET for that time. Never again.
@DrJams you can be every day fluent (able to get by without translation) in 6 months with daily study and speaking. I was on working holiday visa so did lots of things, but at the time I was living in the mentioned accommodation, I worked in an izakaya (Japanese traditional bar)
I'm a born Londoner through and through. Those houses they're showing as stock images are bloody depressing. Show the tower blocks and the 2.5 bed terraces, which is more like what most of us live in. Little post war houses with a garden, or a block, or an expansive social housing estate that stretches across a few blocks on one street. That's most Londoners. The images they're showing are multi-million pound gaffs, hardly average.
@@davidphan100 but currently the ones who Would live in belgravia can’t because of the investors so live in Chelsea, those who would live in Chelsea but can’t are in Clapham, those who would be in Clapham are in Peckham and those who would live in Peckham are priced out. Cutting off the investment head would free up properties across the whole pack.
@@davidphan100 Nottinghill. I’m five generations of Nottinghill. Most of the properties on my families two streets Ledbury Rd & Lonsdale Rd have been purchased over the last 20 years by foreign investors making it impossible for locals to remain. The rents are insane. When I was kid in the 70s & 80s it was maybe a bit rougher but a more pleasant place to live.
Absolutely. The question is, how could the government effectively regulate the housing market against mass foreign investment? Answer: the question is moot - it's already too late.
I wouldn't underestimate the busting of unions. Wages in general are way to low in the UK. They haven't followed inflation and/or wealth increase/economic growth since the eighties.
I'm a 26 year old living in London with my parents. There is NO value here I would never buy a house in the UK let alone in London. I'm fortunate to have an online business so I can work and live anywhere, people get trapped in London for 'work' paying obesene amounts of money to live here without increasing their wealth.
Come to the UAE , houses are cheaper here and the standards of living are lower and cheaper than the UK, if you don't mind I can hook you up with interesting properties.
@@lewisitor The UAE will also throw people in jail, kill people and commit human rights abuses for ridiculous purposes. They’ve arrested people over CBD oil and arrested people for having a tiny spec of weed on the bottom of their shoe. The UAE is a joke of a country. Islamic countries are some of the worst countries.
As a former London homeowner, in zone 2, I can tell you that it is really overpriced and prevents London from becoming a better city. We sold up a few years ago and we were able to buy a much bigger home mortgage free. However, in the relatively short period of time prices have risen again and it means that we can never live in London again.
Like that , the guy at 4.06 saying about Margaret Thatchers retraining policy in the 80s ' I'm thick , I can't go to college ' !!! Brilliant , honesty .
It frustrates me how the older generation mostly don't grasp the housing market situation. My dad is always saying "when are you gunna buy a house" I'm like "look mate, you bought your house in 1989 without a deposit and the mortgage repayments were nothing" now in my generation you need atleat 30,000 to get somewhere decent and the repayments are so much more due to the inflation in house prices
London was very expensive even in 1988 when I first moved there after university. I think you would need to go back to the 1950s when London was relatively affordable.
@@johnlongford1734 15% on a small loan is less than 5% on a massive one. You should do the maths before you say something that idiotic. If owning a home is easier now than then, why is home ownership falling. You strike me as someone proving the poster above's point, not disproving it.
No you don’t if you look outside of London. You can pickup pretty smart city centre apartments in Leeds and Manchester for 150k and on the outskirts for around 120.
London has always been expensive but the rises of the last 10 years are entirely due to dysfunctional monetary policies. The government and B of E have avoided recessions by using artificially low interest rates and QE. I think things are about to change dramatically but anyone who says they can predict the future is a fool. What I find very disturbing is the situation whereby prices have been driven up by investors accessing artificially cheap debt and using it to buy whole portfolios of property.
The problem is supply. This country basically declared war on social housing, govt from Thatcher onwards, turned its back on basic housing provision, pushing most people into private rentals. This video shows the data, more property in London is rented than ever before. Add to that price inflationary policies, help to buy - a developer's subsidy basically, liberalisation of buy to let, allowing rich investors to buy to leave all over London. It did not have to be like this. The govt could have maintained a level of social housing supply, limited right to buy, which would have calmed demand and cooled prices over the last 20 years. They didn't and now the average London terraced house is half a million pounds. Totally unaffordable.
@@ruffey1748 UK establishment is not interested in increasing the supply of houses to buy or making it easier for tenants to rent any words they utter in that direction is simply lip service the aristo's have all their wealth in land property and investments and they're hanging onto it! always have and always will!
It looks disturbing when the yield is less than 2% and prices are 13x average earnings. But it is really a bet on long term currency devaluation by the government which is probably only second to death and taxes as a near certainty.
In 1960 I lived in Battersea ,a south London district..I was offered a house for 2000 pounds....That property is now on the market for almost 750000 pounds
Moved out of London a few years ago, best decision I have ever made. The UK has many beautiful cities and towns, London is brilliant but the prices are nuts.
Me too, bought a house and moved from NW London to Brampton up the A1, 45 min drive.I now own a 4 Bed house with garden garage and a 2 car drive for less then £300K. Beautiful area safe for the children!!
Plus buy to let sector used as a pension/ financial instruments so the formerly affordable housing is not just unaffordable. Its pushing people out into housing built on the green belt which in turn push out locals and permanently damaging the environment and reducing arable land.
@@katem6562 and in turn reducing the supply of housing that can actually be bought, pushing up prices even more. If it's not already London isn't a city for inhabitants but for investors
One of the main reasons is that the house prices have gone up but not the wages have not followed in proportion due to corporate greed. There should be a standard CPI or “ cost of living “ increase guaranteed to each person working backed by law . If the employer wants to give an additional 1-5 % based on merit that’s their choice but a minimum cost of living increase should be guaranteed for everybody in the workforce and not only to the people in Union jobs.
They ve been doing it in Australia for years , no hyperinflation there. The English , they think they know everything better but they clearly don’t. Look at the state of their country : Almost double digit inflation, no workforce to pick produce in the fields so tons of produce wasted, alcoholism and drug use everywhere , knife crime, stagnating salaries, gap between rich and poor getting wider and wider, the ultra rich and big corporations don’t pay enough tax, the real estate sector has been ruined by going after the small landlords with taxes, more and more people falling into poverty and using food banks, NHS pretty much only to get generic prescriptions filled otherwise you have very very long waiting times, lack of funding for special needs schools and they are mostly full so special needs children end up in regular schools where they are usually bullied, funding for care for special needs children and adults pretty much non existent , ridiculous pensions on which you can’t survive on with dignity unless you have other sources of income and own your own home, poor treatment of veterans with physical injuries and/ or PTSD. I could go on but I’m already starting to get depressed so I’ll leave it for know. I think the people in charge should start eating some “ humble pie” , and look to other nations that are doing things better in some areas for inspiration….
@@jamesphoenix1850 Thats not how that works. It literally just increases wage according to how much more profit and inflation is caused.its backed by their labor. Hyperinflation only gets caused by spending spending spending thats not backed and has no mony value come back.
@@theoverlord1925 I agree with everything you have said, and all of that is true, but I suspect your solution to the problem is different from mine....
A lot of cities around the world are having the same issue. It is not unique to London or even the UK. Two things that they failed to mention that have also played a factor in proprietary prices is that the population of Greater London has increased from 7.2 million in 2000 to 8.9 million in 2019. And that huge swaths of once affordable and rundown areas were saw investment and gentrification. London has never been a cheap city. But the change I have seen in the last 15 years is that’s it’s gone from being expensive but attainable to a rich man’s play ground.
The population of London has been historically higher than it is now (look back to the 1960’s). The root of the problem is Thatchers policies in the 80’s getting rid of social housing stock from the system and allowing the property investors to take over.
@@a1white To be fair the minimum standards of living have increased a lot since then. While there still is a problem with slum landlords (just see the bottom end of Spareroom) it used to be two or three to a room, sleeping on the floor, and three generations of family in a crowded 3 bed terrace house because no one could afford their own home. Arguably Thatchers policies allowed many more families to own a home, which is great for social mobility. She just didn't realise that if you allow a working class family to buy a home for a fraction of its value, they would instantly sell it to a full time landlord and use the money for trips to spain
As an ex-Londoner this all seems very familiar. My wife and I each earned around the national average salary and even combined we stood no chance of owning a home in any of the areas we lived and worked. Now all the pubs and venues closed that I liked I saw no point in staying in that city.
Mainland Chinese money laundering using real estate all around the world has priced all the locals out. The only was to fix this will be bloody revolution.
I am a first time buyer. I think buying in the UK in general is a complicated and lengthy process. The buyers have no protection and the seller will make you wait until they find their own house to buy as well. It is ridiculous.
Immigration has only really affected the social housing market. However, when it comes to private properties this market has been adversely affected by foreign investors buying up properties solely as investments thus pushing up prices as the demand increases.
the whole idea of investment properties is ludicrous. You can't have affordable properties while also having rich people are corporations competing for living space. Make it make sense.
Exactly. Singapore seems to have got it right. Housing for all the nationals in high quality HDBs. Then separate more expensive housing for foreign investors. They’re not competing for the same properties.
Why? In Britain, Property is treated as an asset, not a home. The means to enable people to find and afford to own property is massively corrupt. Estate agents should not exist!
@@LysanderLH and social housing shouldn't be a home for life....there are people living in council houses earning 6 figures as their circumstances changed.
@@jenjones90 dealing with people/families inheriting social housing would require local council housing teams to retrain and create new departments specifically for that purpose. As staffing budgets are very tight, staff would probably be moved from homelessness teams, thus creating other issues.
Long old time ago, I know some people who bought their house in Finchley in the mid 1950s for approximately £3500. The house is now worth £1.2 million. Crazy😂
Buy upper middle class house in Essex still 490 to spend on car and life. There no bottom in market . It 185 to 280 where I live for 1 bed bungalow or flat and then 350 for semi and then 400 to 420 for 4 bed detach house and then 500 to 600 for veiw or near a train line . . The difference between semi and detach house is only 100 or 80 grand . That's problem there no bottom once get on property ladder it relatively easy to move up but almost impossible to get on
The problem in the United Kingdom is that billionaires from all over the world launder money there by buying property. So there is nothing left for the young British or foreign people who live there! I lived in the UK for 15 years and had a miserable life, always sharing houses with strangers! Today I live in the countryside of Sweden and have an infinitely better standard of living, even though I face worse weather and higher taxes than in the United Kingdom. If I were a young British man I would immigrate to Australia, Canada or New Zealand and make my life in one of those countries. The United Kingdom is completely dominated by billionaires from the Middle East, India, Pakistan and Russia. Try to find out the origins of the majority of property owners in the United Kingdom and everything will become very clear and evident!
CNBC conveniently forgets Tony Blair, who when in office stopped building affordable social housing whilst simultaneously opening the border to millions of East Europeans in 2004. He then went on to make millions in the property market. Many MP's today, especially Tory MP's are private landlords who have no intention of reforming the private rented sector. To many vested interests are involved with most property owning MP's (many with private villas in Spain, France and Italy) plotting to rejoin the EU.
@@curtisducati And crucially didn't replace them. The current points based housing allocation clearly stipulates only the most vulnerable and most in need are placed in band A and B (top priority). Those not placed in bands A and B will probably be waiting decades for affordable/secure housing. Because asylum seekers and specifically refugees are considered the most vulnerable in society they will obviously get housing priority. And with net migration at around 250 thousand per year, they'll need to build a city the size of Birmingham every four years just to house asylum seekers. It's a complete disaster and all thanks to open door immigration.
When I was in UK. I saw empty boarded up streets under a constant grey sky, litter everywhere. Homeless people sleeping in doorways. A women with cat whiskers makeup casually walking into Tesco with her pajamas. Opioid addicts out of their mind and women so drunk they urinated on the streets. It's a sad declined country.
This video totally fails to mention that the judicial, administrative, political, media and finance/business industries/professions are all centred in London. When all the economic power is centred in one city, it attracts all the people to that location/city. This means that demand for housing outstrips supply and hence prices continue to rise, which creates a housing bubble. When all the major industries/professions are based in one city because because most of the talent is based there and people are there because businesses are there because the talent is there... It becomes a hamster wheel. Along with this, demand for housing continues to outstrip supply thus pushing prices. One solution is to relocate entire industries/professions across the uk and the talent will follow them. After all there is more to the uk than just London. However the political will is there not and many powerful property developers will not allow any move which would reduce their land/property prices. Which means... nothing is likely to change in the foreseeable future.
Agreed. Firms are slowly trying to return to full in-office work, even when it's not necessary, and with most big organisations being in London, many people have no choice but to move there. Remote working would resolve most problems, but firms are too greedy and controlling to allow it.
You're spot on! But it's much easier to blame Thatcher than do any real analysis and implement policies that will cause significant change. In true political form, lets blame someone else and thus not have to address the issue ourselves
@@MissimoCat Remote working is not the only solution. As a young person, when everything is based in London, it makes other places in the UK just very unnatractive to live in, even if I can work from home. The rest of the south are like suburbs of Lonodn with nothing there half the time. Cities in the north seem to have more of a personality but until more business moves there they will never have as much going on. There has to be some reason for people to move to these areas. I'm from a tiny commuter town in the south. I'm never gonna live there long term as a young person. There are no young people there and no facilities at all.
Failed to even mention the steady increase in population of London since 1981. The drop in people getting married and increase in carreer driven singletons living alone.
It also fails to mention the fact that Right to Buy was originally a Labour Party proposal in their 1959 Manifesto. Furthermore, New Labour had more than a decade to limit expansion of the Buy to Let phenomenon which started in 1996 but did nothing. A perfect storm!
They also forgot to mention that londons population was decreasing dramatically pre 1980s, so houses should have been getting less expensive during that period.
A lot of the properties in the 80s in London, were available to hardworking young professionals, i.e nurses, doctors, surveyors, builders, etc, however those were the halcyon days of the baby boomers and post Empire, and in the height of it, a hardworking family and indeed many did so, bought their houses. Fast forward a couple of decades, a lot of those properties were sold for a quick profit. I could tell you that Battersea was just a working class area next to Kensington and there were no yuppies in Brixton, and that was the early 90s. Change happens unfortunately and now those career driven singletons live together in several pocket neighbourhoods in LDN.
This is happening all over the place. Here in Southern California, the average house is about $800,000. Many adult children live at home now, and rent is ski high.
That's still affordable compared to London, imagine paying that $800,000/£500,000 for at best a run down 2 bedroom terraced house on the outskirts of the city or alternatively a small 2 bedroom apartment nearer but still not actually in the centre, or a half share of a semi-reasonable apartment in the centre.
I live in SoCal. My tiny 3 bedroom house is valued at $700,000. Corporations are buying up houses everywhere and renting them for outrageous prices. In northern California overseas people are also buying up 2-3 houses and leaving them empty as investments. People are now completely priced out of the market.
@@gr8macaw1 sounds crazy but it shows how bad the situation is that reading that I think, 3 bed $700k that’s not too bad. In the US average salary is like $60k, here our average salary is £28k, I live about an hour outside London and I’d struggle to get a modest 3 bed like you’re saying for less than £450-500k
The property taxes is a very attractive reason. To buy in London. They only go up in the US. Imagine owning a home and paying $800-$1000 a month in tax
For the US, it really depends on the State. Income tax varies too. Texas has very lucrative income & property tax rates. California screws you over. Some countries eff you up with income & property taxes too -especially if you make over certain amount.
@Jimbo Jimbo thats actually not true, factoring in exchange rate, $1000 is the cost at $500k (if you can find one that cheap in London but the maximum is $2,800 , even for a $100million property. Here in the UK all properties are allocated a band based on the value of the property, regardless of size or location
In California prop 13 passed in 1978 it limited property tax increases to 2% a year as long as you lived in the house from the date purchased. I bought my house in SoCal in 2000 and my tax has not increased more than 2% yearly. I currently pay $4,500 per year.
But you Americans are the most taxed people on the planet....lol. All your tax dollars go to building useless huge nuclear powered aircraft carriers.....but you do get to say Fkin A - when it passes you.
It’s extremely sad that I’m being pushed out of the place I was raised in & have all my family in. I currently pay half of my earnings to have my 1 bed place. Before council tax etc. London is home & it’s sad I don’t see a future here because of this.
You have to try to take the plunge. I moved from NW London in 2020 45 mins away in a place called Brampton. its the best place and thing I have ever done. I had that mindset and so do many 'I can only live in London' and that's what messes people up!
Because you limit supply and allow rich foreigners (who do not even live in the city) buy up all the property to hide/wash their money. See also Vancouver
Amsterdam is facing a housing crisis too, average home of 70m2 starts at 650,000 euros and gets overbid by 10%. Imagine paying 700,000 for a 70m2 house. And the mortgage interest rate jumped from 1.2 to 2.5% in 1 month.
@@kyleafc9583 average 700,000 euro is alot tho. Even in the most expensive state of cali, the average prices are not that much. Also note, Dutch salaries are alot lower than American.
@@darreldennis7115 the average cost of a median home in California is actually $700k… average salary in US is $56k and in Holland it’s the equivalent of $40k… not that much of a different Darrel.
Yeah, But in Amsterdam you can go out, smoke a joint and dont care about mortgages......or anything...... In Europe, you work to live. In the US you live to work. It is horrific. You only have to look at US expat vids to see how bad a deal the US citizens get.
I was brought up in a house in Nth London in that was built in the 1930's. My grandfather was actually the Clerk of Works when the road was built and he moved into one of the newly built houses. My dad was raised in that house and i was born into it in 1965. In the early 80's my mother and 2 of my sisters brought the house under the right to buy scheme for £30k. In the 70's and 80's this was a very working class neighbourhood and very few people could buy their house despite the right to buy scheme. A house recently sold for £720k and to the amusement of the 'oldies', instead of battered rusty old cars like 'there used to be', there's now Range Rover's, big Audi's and even some of those 'electric things'! These are 'normal' houses, no architectural merit, 3 bedrooms with the 3rd about the size of a single bed, in a non descript road. Young couples new to the market, no chance.
We need to discourage housebuilders from hoarding plots with planning permission. Treasury and the Bank of England must be weaned off their dependence on land and house prices, and rebalance the economy away from property. There must be fundamental land reform to bring development land forward for housing at sensible prices so that new housing can be truly affordable and existing prices can stabilise. We need to stop developers from dodging the buiding of social housing.
The thing is thet a certain group of people is buying all the houses and bringing their family in as immigrants. And there are no more houses left for actual english people
@@uk9383 Dude. Statistics. It really helps you. Like if you chop an apple into 10 pieces and you take a piece and someone tells you to give him an apple and you give him a 10th of an apple. then that is fucked up. Just like your total ignorance that you have to look at which slices / percentage each sector makes up in a given market. Foreigners are mostly laundering their money. These are properties less than 1% can afford. In numbers however they do not matter. In money, yes
@@uk9383 Goodness, what nonsense! As usual The Sun/The DM readers blaming immigrants for every problem under the sun instead of looking to their own government corruption, laziness and greed.
I am so sorry for anyone younger trying to buy a house in London. I paid £96k for mine in 1994 and now it is worth £450k. And that is in Croydon - not a nice place. If I had to buy now I would move to Manchester or Glasgow.
Its expensive to buy property anywhere in the south because rich people from London or who have property in, and work in, London, have second homes by the beach or in the Cotswold area, for example. Many people in Devon and Cornwall, especially, but elsewhere too, can't afford to even rent a room. Its disgraceful. The rich get richer and we poor get poorer. The socio-economic divide is widening again
Basically landlords were able to set mortgage interest payments against rental income which gave them a distinct advantage against first time buyers who had to pay their mortgages out of taxed income. These landlords were able to snow ball their purchases of low priced affordable property creating an acute shortage of available property on the market. Planning applications restricted constructions to within the Green belt and brown field sites and the shortage of properties against the appeal of London particularly amongst the international jet set forced property prices up combined by the importance of the financial centres in the City of London which attracted hundreds of thousands of high earning individuals involved in Finance, Banking, Accountancy and Legal firms drove up prices as they were on a different income level to the majority of the population. An acute shortage of affordable housing was created in the 1980s with the right to buy under Thatcher where hundreds of thousands of affordable flats and houseing was sold to the tenants at knock down prices.
The average wage in London is appreciably higher than anywhere else in the UK! This has a direct influence on why it’s so expensive in London. Not only that you are getting many rich International investors buying Property in London which again pushes prices up!!
If you import 300 000+ new people into a small island to resettle every year to compete over the existing housing stock, what do you expect other than hight rents & property prices will escalate.(100000+ BNO immigrants from Hong Kong came to UK last year).
This is a great example of cultural differences. In the UK renting and living with parents are seen as failures and you're only respected if you're a home owner. Only a 3 hour flight away in Greece it's normal to live with parents until you're into your 30s and longer if need be. Even closer to home in Germany everyone rents, but then again the renters rights and the entire culture around renting is totally different. In my experience renting in Scotland was more secure given the laws there.
Well in Greece many people cannot live in rent away from their parents because their wages are too low. And that doesn't happen only in unskilled jobs. The vast majority of the people does not consider it normal.
Stop allowing international purchases to be made so freely and easily. Nowhere else allows property to be purchased by non-residents without restriction.
A lot of London's wealth comes from supporting shell companies and money laundering. There'd be intense lobbying against any proposal to clean that up.
It's quite simple, London's population has increased by over 2 million people in the last twenty years. There are now people living in sheds in back gardens, more people, limited space, that is bound to push up the price of housing.
Buying a home is a term that includes freeholds and leaseholds but recently leasehold contracts are getting to be a bit of a scam and the terms need checking carefully.
Incorrect. Vast majority of houses are _not_ leasehold - ie you _do_ own the land. In recent years, houses have been built which are leasehold (on large estates usually) but I would not touch them with a bargepole; I think people who bought them, sadly, were poorly advised and/or didn't read _the small print._ Flats have traditionally been leasehold, but it is possible for the flat-owners to get together and buy the freehold, so they can be in charge of their own bills and maintenance etc, and not at the mercy of someone else who may be ripping them off, as can happen. You can therefore buy a flat which is leasehold or _share of freehold_ in many places. Leases can be incredibly complicated which is why you need a specialist solicitor, as we used with my flat in an outer London borough.
We need a law to be passed that allows a tennant’s rent to be accepted by banks as proof of being able to repay a mortgage But people keep voting for posho Etonians so it’ll never happen
You don't remember the great financial crash of '07 then? Prior to that people openly lied to a bank about how much they earnt. As a result they took out mortgages they could only afford at zero percent rates of interest. It wasn't just a UK thing; the Americans had Ninja loans - No Income, no Job, no problem. People went absolutely crazy in the decade prior to the crash. The current affordability tests are to ensure it doesn't happen again. I had a three hour interview with the bank to get my mortgage - they went through everything. If we don't learn from the past then we will repeat it. As for posho Eatonians - well I am no fan of BoJo, but the last time the Uk housing market went bang it was under Gordon "no more Tory boom and bust" Brown.
@@TheTW11 Your bank knows how much is going to your landlord each month via your direct debits, they could see that if you’ve been paying £1.2k pm for two years that you could afford a mortgage, no lying, no trickery, no problem, surely?
@@Brokout I hear you - I rented in London for 18 years and I felt the same. But the banks are trying to protect themselves. I guess the rules were set by the FCA. Maybe people were committing fraud - you could set up a direct debit to your mate and get half of it back. I dunno. But prior to these rules people just lied - my own sister did. She bought a 300k house back in the '90s on a midwife salary - she just lied. Got away with it cos the rates were so low. It annoyed me cos I played the game and was honest and I was screwed by it. There was a Panorama program on it in the 90's. Two reporters posed as teachers and went round estate agents in Ealing. They were told openly by the agents to lie about their salary and they even had in-house people who could organise mortgages for them based on fictitious salaries. So today's current rules are a result of previous madness. They have f ucked it up for everyone.
@@JI7NKJ Yes exactly, mortgage repayments are way less than rent and for people who are paying over the course of a few years, that’s more than enough proof
This has nothing to do with the housing policy 40 years ago. The house price hike is driven by the very low-interest rate in recent years, making it very easy for rich people to finance it with debt as an investment. Many people are buying homes for investment instead of for living. The government should introduce heavy council tax for landlords owning multiple properties, and make it less attractive for them to be used as an investment.
Housing cost has skyrocketed in all powerhouse magacities around the world, not just London. There are cities that the majority of the population, globally, wants to live. London is one of them. From that perspective, London prices are high but not as inflated as in some other major cities around the world. Still, the ROI on London property is not as high as it used to be, even taking relatively low taxation into account. There are better real estate investment opportunities outside London in the UK at the moment. One might find even better ones on continental Europe too.
I'm about to buy a one bed in London for half a million at 28... How have I managed to do this? earn a little over six figures. This is simply what's required to buy in z2 London now and this cannot be expected to be feasible for most 20-30 year olds.
@@thunderbug8640 maybe but ill be selling it to an even bigger mug in 30 years time when I retire which should fund that townhouse in Tuscany - the world... she keep on going round!
Too many people coming here and needing property in a very small country. There are now more people in London that some countries. Finland, Denmark, Finland, Swizerland to name a few. Spent 2 days in London recently - only heard one English accent.
@8rick1ane We too were taken over, twice, and it left us in far better shape. Like we left countries in better shape when we left. There are countries like India that have thanked us for what we did for them. Look at Singapore and how well they've done. Surprising how others have needed to be propped up for decades and will do forever. They come here because we are highly intelligent and a well-off country. If they take it down theyll be left with what they left behind. Their look out really.
It’s an easy answer. The country allows international investors to buy residential property. Global demand on constrained supply lifts prices. The UK government gets more property taxes from higher property prices, international investors get the “safety” of the UK legal system and diversification away from their home country. Everyone needs a place to live, so the chances of renting out a London property is high, making this place a “safe investment”
If you want to reduce the birth rate, just keep developing an economy based on ever increasing house prices. Also worth remembering that Housing Benefit is paying for the accommodation of vast numbers of unwaged/low waged tenants in London.
@@CNBCi An an American expat, and 22 yrs in London I have seen eye watering increases in property prices (much to do with Oligarchs and other foreign investments driving up the market). BUT I would still rather buy in London than any major US city as London market will always be a better investment and any dips recover quickly. There are also better schemes in the UK for helping people get on the property ladder which I don’t see as much in the US.
It is not just London, it is the same all over the UK. Anyone with a decent house is not moving because the costs to move are too high and there is nothing available to buy. The market has almost completely stagnated. Far too many "londoners" bought second and third homes over the last 2 years due to ultra low interest rates. What we need is higher interest rates to force second and third homes back onto the market which will create some reality back into prices.
People say communism doesn't work but go to Singapore where the property is mostly under public ownership and of decent quality. It seems to work pretty well.
@@hashmo101 The housing mafia have the governments in their pockets. Restrict supply and increase rent prices. These rich families make money from renting their properties out to the average salary man. The game is ridged.
What member of the middle class was going to snag themselves a house in Belgravia lol. It is because of the shayateen Margaret Thatcher that basic entitlements such as housing are out of reach for working people
Based on my memory of the late 80s in London, a reasonable one bedroom flat was about 7 or 8 times as much a modest salary. Now it's 19 or 20 times as much. Rent is 10 ten times what is was in the late 80s, whereas salaries have about doubled. So if you rent first, how the hell can you even save for a 5% deposit? Not exactly rocket science, is it?
The fact is there is no AFFORDABLE housing being built in London. Developers /planners/Councils label it is such but wages (especially Public sector workers) are stagnant and condos end up being bought up by property magnates or overseas developers. It is getting beyond a joke. I’m furious. The public sector workers will end up moving elsewhere more affordable and then who will staff the hospitals, police, libraries, schools, etc in London. Libraries are so often overlooked. They’re safe places for the vulnerable and going to be havens for those who can’t afford to keep their heating on over winter. Protect them!
Someone here suggested the average price of a studio can be over £ 3500. That's for really really high spec super luxury ones. You are expected to pay over £1000 for a studio in London. I have friends who live in zone 2 and rent pretty decent studios for just over that price. where I live, Canada Water, you can rent a modern studio for £1,100-200. If you want to live in Chelsea then that astronomical figure makes sense.
Really weird CNBC are pinning it on free market reforms not planning permission issues. Free markets work based on supply & demand, the problem in the London housing market is that supply isn't keeping up. Why? Planning permission to build new houses is difficult to get. There aren't many house builders in the UK and once they get planning permission there's no time limit on when they need to build by, meaning they can buy up the land & choose to wait to build when the housing market is up. It incentivises builders to wait, since prices go up when demand out strips supply.
Another reason is an absolutely stupid rule of leasehold and freehold, which is very unique for the UK. Most of apartments are leasehold and you are buying a 100 year rent, so you are still don’t own a home :)
7:10 Not true for Billionaire's row in NYC. Or for many other luxury properties. All you need to do to avoid paying significant property tax is a loophole - like the luxury housing developer paying for affordable housing to be built elsewhere - the price of this often makes up a fraction of the money saved through tax. The ultra luxury billionaires row houses for example are paying relatively very little in property tax.
It’s really tough, having been born in central London and love this city. Moved out to a commuter town of Luton, not great but far cheaper and I don’t miss much at all. Prices are unlikely to come down, government is heavily invested in property market to let anything effect it. Move out and avoid London.
Had it not been for the inflation and monetary and fiscal policy by the government, the housing price in crucial city would never be incredibly unaffordable.
from the south east coastal town UK house prices here have rocket'd since the pandemic due to the large number of people leaving London for a better way of life and Sadiq Khan's new London, no longer having to battle the commute has led to many things including hyper inflation my home has increased only on paper mind by 150K in just two years
Same here. Southern seaside town. Not very desirable or particularly expensive. But now it is for same reasons. Will turn out like Cornwall if we don’t take actions.
In 3 years the value of my house at the outskirt of London has increased by 10%. I could not afford today what I could afford then, despite changing jobs and have a substantial increase in salary for both me and my partner. The help-to-buy scheme seem just a gift to construction companies so that are sure to be able to sell all the flats they build. High taxes on luxury properties would discourage speculations and force building societies to invest on more affordable houses.
Not a single mention of immigration? We're not having as many children as our grandparents so obviously the growing number of people in the country are coming from outside. Then theres the fact that there is a monopoly of house building projects that get favourable conditions to build cheap but over priced housing that the help to buy scheme is made for. Did I mention that a massive portion of funding that the conservatives receive is from construction firms? So labour creates stagnant wages and increased population growth while the conservatives monopolise the influx of people by building more housing to generate more income for themselves. If Blair didn't change the immigration laws in the UK the rough estimate of median house costs would be around £80k not £250k.
Supply and demand. Also class system. Banks dont lend a mortgage imunless you already have a large sum saved up. A good consistant salary. And a parent who owns property to be a garantee. Uou need good credit 'score' basically you need wealthy parents. Everyone wants to have a lodger to pay for the mottgage. The system needs mugs to rent the spare room for the 'business ' model to work.
The graph at 3:50 is misleading because it doesn't include owner occupiers without a mortgage, which make a significant part of the housing market (approximately 1/3) and recently (~2016) overtook owners wirh mortgages as the largest single group.
Blame 'non-residential - foreign' investment and foreign money laundering. The blame lays with the UK British government who are the 'franchisers' of this unfair and illegal corruption.
That's ALL political party's, Tower Hamlets-Labour-it's glorious Labour councillors evicted social housing tenants in order to sell their homes to a luxury developer who-"completely coincidently" they all had an interest in (see Private Eye for details) The morons who only spot something when "The other lot" do the crime yet go all forgiving/understanding and quote by rote conspiracy theories when their own party does exactly the same is the real reason why nothing changes.
This is extremely true. London is a harbour for stolen public money, drug funds and other illicit funds around the world. And these guys don't care how much they buy houses at, as long as they can buy ...
Maybe legal corruption?
THIS! I work in Singapore and pay extortionate rent. If I wanted to buy a property, I’d have to pay 30% more as I am not Singaporean. I agree with this big it frustrates me that Singaporeans are able (and do) to purchase UK property without restriction.
JC S Nah it's the banks they lend money for property speculation cut out all this BTL! one home for one person/family .
Hong Kong: HOLD MY BEER.
😭
你哋有公屋
😁😁
😂😂😂😂
I absolutely fucking HATE that phrase ‘Hold my beer’; it bears no relevance to the literal meaning of asking someone to hold your pint of beer.
This video didn’t even mention that most London property is leasehold and that this screws over people even more as they don’t legally own anything!!!
Anyone who lives in a flat, anywhere in the country, it will be leasehold!
Can you explain this construction? Is leasehold different from renting?
@@Bellabambina123 no there is also common hold and share of freehold ;)
@@angelikadepelika3758 With freehold, you own the land beneath you and you have much more flexibility to develop your property. With leasehold, you don't own the land beneath you and you will likely have to pay the ground rent to the freeholder and service charges to the management company. Your lease tenure also decreases over time, so if you have a short lease, you'll have to pay (generally £000s) to extend the lease.
@@Afrinaturality aah yes, now i understand. Thank you. Amsterdam and a few other big cities also have allot of land on lease here. You own the house but the land is property of the municipality, and you lease for 50 years etc.
When working people are prevented from accessing capital in a capitalist society you’ve got a major problem brewing.
Much as I dislike the UKs dysfunctional property market, buy to let has actually democratised capitalism as it is less about your income and more about the rental income. The whole point of BTL as a financial play is relying on currency devaluation and consequent house price inflation. The government and the BoE is charged with maintaining price stability (low inflation) but housing - the biggest factor in the cost of living - is excluded from the official index. The screwed up housing market is little to do with free market capitalism and more to do with the "hidden hand of the state".
This has been the plan from the start. A very specific group of people is printing themselves money and buying the houses for theirselves and their relatives to bring their family in as immigrants and there is no houses left for true english people. This has been the plan from the start
so true, hope some guys start thinking about this problem of capitalism, where workers work and live for it making richer those who own those capitals but get alienated while trying to possess such capital. Wait a second...
You're damn right!
Of course Communism is better
A home in london that’s £1 million in 2022 could have been bought for £150,000 in 1991, which is £375,000 with inflation
But back then you could buy homes without a deposit
Mortgage rates in 1991 were 13/14% compared to 2% now. 150k x 13/14% = 20k per year. 1mil x 2% = 20k per year. So central bank policy hasn' t helped.
You are trying to say that Londoners in 1991 are having the same issues that Londoners have now
1. The interest rates in the Uk were not 13-14% in 1991
2. £150,000 in 1991 is equivalent to £342,000 today even then the average house price in London today is £667k
3. Also a big problem is that salaries has not moved with inflation meaning that people can not easily save for a deposit anymore
Its a state controlled economy, where market prices are manipulated high through the pretext of "planning permission"
High real estate prices are needed for the oligarchs who are invested into real estate. Also, the fiat money lending bank mafia which owns the government has a vested interest in making land scarce
@@dronyman The BOE base rate was circa 12% in 1990/91, and as now, mortgage rates were set slightly higher than this. So three year fixes, were indeed 13/14%. If base rates go back to anywhere near this rate, then you might find that you can actually buy this property in the future for 342k. Also, you did have to put a deposit down on property in 1990/91.
I was born in NW Greater London in 1980 and lived there until 2017. The house prices went beyond the reach of the average person a while ago. They really began to accelerate at the turn of the century. My parents bought their 3 bedroom semi-detached house in 1997 for £130k and it sold for £500k in 2017. Now that the credit has been cut and you can no longer get 90% mortgages, it's impossible to for most people to be able to get onto the property ladder. Even an annual salary of £30k/40k is a struggle and there's not many non professional jobs that pay that. And this was on the outskirts of London where the situation isn't as bad. The closer you get to central London the worse it get's. As far as renting goes, you'll pay over £3500 pcm just for a 1 bedroom furnished studio apartment in many places. You'll pay well over £1000 for the same in even the outer regions of London now.
I have no idea how people manage to continue affording the prices tbh. You can do it on an average salary if you live on the outer skirts but only just. You'll be left with very little, if anything after rates/expenses. You can house share for around £600 pcm but that's not a nice way to live.
Unless you are earning £50k +, don't even think about London
Spot on
I've lived in NW London, zone 4, my whole life and the house price inflation is insane. Mum bought our 3 bed terrace in '89 for £92k. That was the thick of the downturn and interest rates were 15%. But she was able to do it. I think she's a bit perplexed that my sister and I haven't bought yet, but I tell her all the time; our terraced house we still live in is worth £550k today. It's out of reach.
@Steven Smith
Not sure where you’re looking for a 1 bed studio, but the vast majority are not £3500 pcm in Central London
Unfortunately this is the harsh reality of the market, and the trend is upwards.
There are 90% mortgages, but it doesn’t make financial sense getting one unless mummy and daddy can bail you out if you come unstuck.
It’s pretty simple. The general public are being priced out of London by the rich who are buying houses to rent out. This has a knock on effect which means Londoners have no choice but to keep moving outwards. This means now houses on the outskirts of London are way out of reach for new buyers. It’s not as simple as just upping and leaving London when your job/family/everything you have ever known is in London. I have friends who have been paying £1200 a month in rent for over 10 years, but when they try to get a mortgage that is half that cost they get refused. Absolutely insane.
Also certain industries have their hubs in London / S.E. The problem with moving to cheaper areas is that they often have fewer jobs, and generally lower wages, which makes getting a mortgage a less affordable prospect.
I agree but many people seem to forget about those people living on the outskirts/commuter towns of London. Since londoners are getting out priced they’re moving into areas which are considerably cheaper (by London standards) to be able to afford & then commute to work because those towns typically have easy assess into london (Mostly Kent/Essex towns) pushing up prices for people who’ve also lived in these area’s their whole life.
A lot of these area’s have typically been predominantly social housing/working class with most of the social housing sold off & now privately rented out to those who would of got social housing, makes completely no sense. These area’s are practically becoming as gentrified as London is to accommodate the needs of new people moving in while pushing people who was born there, out.
Personally, banks/mortgage lenders need to abolish the “X times your salary is the max you can borrow” and consider bringing back 100%+ mortgages to those who are financially stable. base it off of monthly payments & not the total amount borrowed.
Woefully simplistic
Yikes
It's not the rich buying houses, it's company landlords. I have a lot of new construction come up around me but can't buy any of those houses coz they're all built for renting.
If you artifically create supply issues, prices would jump up for sure.
im from London and while i love my hometown, i have no idea why anyone would really want to buy property here. the city is turning overly dirty, overly populated with people just getting by and working 24/7, and it doesnt have the personality it once did. London is changing so much and not for the better. greed is taking over everything!
I'm a Londoner and I agree to some extent. It depends where you are in London. Some boroughs are (still) clean, well managed, quiet and worth their price. I want to buy a house in Stanmore in Valencia Road - the houses look like they were taken from Berlin. The area is super quiet, with Jubilee Line and a great park for jogging. I lived in many areas in London and some me be as you say but there are many great places too - SW19 and SW20. I now live in The Drive in Ickenham and it's also a great area.
@@adamuppsala1931 yes, for sure there are still nice areas, but the majority is not as nice as people make out it is (unfortunately) - realised this when I did couriering for a month. It’s not the exciting place it used to be! I always dreamed of having a town house but it’s not realistic anymore due to these prices. What you pay in London can get u a mansion with a swimming pool and land elsewhere in the U.K.… would rather have my own pool than a shitty communal garden 😂 hope you manage to make your dream of Stanmore come true!
Never visited such a beautiful large green city. Everywhere had a park and even out in lower income areas you get great parks. Absolutely loved Little venice, regents canal, Greenwich park… so quaint , yet so forward thinking and international.
@@marlboroqueen I would rather have a shitty communal garden and be so close to non-stop entertainment. 8 months of shitty weather in some big home somewhere quiet is unbelievably dull and miserable. London gives out so much energy which helps me cope with appalling weather. So much to do. Then every 6 weeks down to the Mediterranean. Big homes and countryside in England my ass.
@@JohnSmith-sm7ez Did you time travel back to 1988? London's a dump now.
When I was in Japan I rented a tiny box room in a not great place, but it was only 20,000 yen (about £160) a month plus bills of about another 7000 yen (~£50). I had money to eat and drink out so didn't mind a terrible kitchen and there was the sento (public bath) for just 300 yen so my shitty bathroom didn't matter so much.
The last room I rented in London in 2014 was £530 a month, had a clothes moth infestation, and was on key meter so ran out of electricity all the time. Eating and drinking in London costs a fortune if you don't want chicken shop, and the shower in my place was broken for 3 months so I had to wash with a BUCKET for that time.
Never again.
You went to Japan? How was learning the language and what job did you have?
@DrJams you can be every day fluent (able to get by without translation) in 6 months with daily study and speaking.
I was on working holiday visa so did lots of things, but at the time I was living in the mentioned accommodation, I worked in an izakaya (Japanese traditional bar)
I'm a born Londoner through and through. Those houses they're showing as stock images are bloody depressing. Show the tower blocks and the 2.5 bed terraces, which is more like what most of us live in. Little post war houses with a garden, or a block, or an expansive social housing estate that stretches across a few blocks on one street. That's most Londoners. The images they're showing are multi-million pound gaffs, hardly average.
They weren’t always million pound homes, that’s the point
Which are 80% of the time uninhabited... first tackle that problem ( obligation to live full time in a house ! )
@@phmwu7368 true
I live in Greenwich. (not the posh Cutty Sark part), and a 3 bedroom terrace opposite me is around a million now.
Stop foreign investors from parking their money in property.............. problem solved
Yes because us normal people can afford a gaff in belgravia and Mayfair
Yeah but us normal people can’t afford anywhere in London
@@davidphan100 but currently the ones who Would live in belgravia can’t because of the investors so live in Chelsea, those who would live in Chelsea but can’t are in Clapham, those who would be in Clapham are in Peckham and those who would live in Peckham are priced out. Cutting off the investment head would free up properties across the whole pack.
@@davidphan100 Nottinghill. I’m five generations of Nottinghill. Most of the properties on my families two streets Ledbury Rd & Lonsdale Rd have been purchased over the last 20 years by foreign investors making it impossible for locals to remain. The rents are insane. When I was kid in the 70s & 80s it was maybe a bit rougher but a more pleasant place to live.
money laundering is an essential part of British economy
London’s been the catalyst of a U.K-wide problem. Foreign money hypes property prices.
Absolutely. The question is, how could the government effectively regulate the housing market against mass foreign investment? Answer: the question is moot - it's already too late.
@@dansimmons21 never too late
@@st20332 genuinely hope you're right :)
I wouldn't underestimate the busting of unions. Wages in general are way to low in the UK. They haven't followed inflation and/or wealth increase/economic growth since the eighties.
I'm a 26 year old living in London with my parents. There is NO value here I would never buy a house in the UK let alone in London. I'm fortunate to have an online business so I can work and live anywhere, people get trapped in London for 'work' paying obesene amounts of money to live here without increasing their wealth.
That's bad Nomad.
Come to the UAE , houses are cheaper here and the standards of living are lower and cheaper than the UK, if you don't mind I can hook you up with interesting properties.
@@lewisitor The UAE will also throw people in jail, kill people and commit human rights abuses for ridiculous purposes. They’ve arrested people over CBD oil and arrested people for having a tiny spec of weed on the bottom of their shoe. The UAE is a joke of a country. Islamic countries are some of the worst countries.
🤣🤣😂😂👆🏼👆🏼👆🏼 Scammer
You can rent a house with garden for 1.5k to 3k USD a year in Southeast Asia.
As a former London homeowner, in zone 2, I can tell you that it is really overpriced and prevents London from becoming a better city. We sold up a few years ago and we were able to buy a much bigger home mortgage free. However, in the relatively short period of time prices have risen again and it means that we can never live in London again.
Like that , the guy at 4.06 saying about Margaret Thatchers retraining policy in the 80s ' I'm thick , I can't go to college ' !!! Brilliant , honesty .
Indeed he is strong in, his character and has extreme integrity. That is something alot of individuals don't possess today.
It frustrates me how the older generation mostly don't grasp the housing market situation. My dad is always saying "when are you gunna buy a house" I'm like "look mate, you bought your house in 1989 without a deposit and the mortgage repayments were nothing" now in my generation you need atleat 30,000 to get somewhere decent and the repayments are so much more due to the inflation in house prices
Only partially right. My mortgage was at 15% interest. Things weren’t as easy as you seem to think.
London was very expensive even in 1988 when I first moved there after university. I think you would need to go back to the 1950s when London was relatively affordable.
@@johnlongford1734 15% on a small loan is less than 5% on a massive one. You should do the maths before you say something that idiotic. If owning a home is easier now than then, why is home ownership falling. You strike me as someone proving the poster above's point, not disproving it.
@@johnlongford1734 misleading, interest was only briefly that high in the late 70's.
No you don’t if you look outside of London. You can pickup pretty smart city centre apartments in Leeds and Manchester for 150k and on the outskirts for around 120.
London has always been expensive but the rises of the last 10 years are entirely due to dysfunctional monetary policies. The government and B of E have avoided recessions by using artificially low interest rates and QE. I think things are about to change dramatically but anyone who says they can predict the future is a fool. What I find very disturbing is the situation whereby prices have been driven up by investors accessing artificially cheap debt and using it to buy whole portfolios of property.
Yep, correct.
@@Leah-ju8ht surtout les russes
The problem is supply. This country basically declared war on social housing, govt from Thatcher onwards, turned its back on basic housing provision, pushing most people into private rentals. This video shows the data, more property in London is rented than ever before. Add to that price inflationary policies, help to buy - a developer's subsidy basically, liberalisation of buy to let, allowing rich investors to buy to leave all over London. It did not have to be like this. The govt could have maintained a level of social housing supply, limited right to buy, which would have calmed demand and cooled prices over the last 20 years. They didn't and now the average London terraced house is half a million pounds. Totally unaffordable.
@@ruffey1748 UK establishment is not interested in increasing the supply of houses to buy or making it easier for tenants to rent any words they utter in that direction is simply lip service the aristo's have all their wealth in land property and investments and they're hanging onto it! always have and always will!
It looks disturbing when the yield is less than 2% and prices are 13x average earnings. But it is really a bet on long term currency devaluation by the government which is probably only second to death and taxes as a near certainty.
In 1960 I lived in Battersea ,a south London district..I was offered a house for 2000 pounds....That property is now on the market for almost 750000 pounds
Mariah, share pics of how London was like in the swinging 60s. we wanna see .
I said it in my own comment, but always go for a property even if that means one must take a loan and/or mortgage.
I’m in Canada and my house price in 1960 was around $70, now it is $1500000
But how much was your grocery bill back then compared to now? Petrol salary etc
I'm in earth, and my crust price was negative 100, now it is $18000000 and a nuclear threat if you start mining it
Moved out of London a few years ago, best decision I have ever made. The UK has many beautiful cities and towns, London is brilliant but the prices are nuts.
Me too, bought a house and moved from NW London to Brampton up the A1, 45 min drive.I now own a 4 Bed house with garden garage and a 2 car drive for less then £300K. Beautiful area safe for the children!!
Unregulated real estate investment inflates house prices. London as a whole is just a city where Oligarchs and Petro states park their money.
Plus buy to let sector used as a pension/ financial instruments so the formerly affordable housing is not just unaffordable. Its pushing people out into housing built on the green belt which in turn push out locals and permanently damaging the environment and reducing arable land.
@@katem6562 and in turn reducing the supply of housing that can actually be bought, pushing up prices even more. If it's not already London isn't a city for inhabitants but for investors
One of the main reasons is that the house prices have gone up but not the wages have not followed in proportion due to corporate greed. There should be a standard CPI or “ cost of living “ increase guaranteed to each person working backed by law . If the employer wants to give an additional 1-5 % based on merit that’s their choice but a minimum cost of living increase should be guaranteed for everybody in the workforce and not only to the people in Union jobs.
Your proposal would generate hyperinflation so no thank you.
They ve been doing it in Australia for years , no hyperinflation there. The English , they think they know everything better but they clearly don’t. Look at the state of their country : Almost double digit inflation, no workforce to pick produce in the fields so tons of produce wasted, alcoholism and drug use everywhere , knife crime, stagnating salaries, gap between rich and poor getting wider and wider, the ultra rich and big corporations don’t pay enough tax, the real estate sector has been ruined by going after the small landlords with taxes, more and more people falling into poverty and using food banks, NHS pretty much only to get generic prescriptions filled otherwise you have very very long waiting times, lack of funding for special needs schools and they are mostly full so special needs children end up in regular schools where they are usually bullied, funding for care for special needs children and adults pretty much non existent , ridiculous pensions on which you can’t survive on with dignity unless you have other sources of income and own your own home, poor treatment of veterans with physical injuries and/ or PTSD. I could go on but I’m already starting to get depressed so I’ll leave it for know. I think the people in charge should start eating some “ humble pie” , and look to other nations that are doing things better in some areas for inspiration….
@@jamesphoenix1850 Thats not how that works. It literally just increases wage according to how much more profit and inflation is caused.its backed by their labor.
Hyperinflation only gets caused by spending spending spending thats not backed and has no mony value come back.
@@theoverlord1925 I agree with everything you have said, and all of that is true, but I suspect your solution to the problem is different from mine....
@@RK-cj4oc It's more complicated than that, inflation is driven by the ratio between money supply and productivity.
A lot of cities around the world are having the same issue. It is not unique to London or even the UK.
Two things that they failed to mention that have also played a factor in proprietary prices is that the population of Greater London has increased from 7.2 million in 2000 to 8.9 million in 2019. And that huge swaths of once affordable and rundown areas were saw investment and gentrification.
London has never been a cheap city. But the change I have seen in the last 15 years is that’s it’s gone from being expensive but attainable to a rich man’s play ground.
The population of London has been historically higher than it is now (look back to the 1960’s). The root of the problem is Thatchers policies in the 80’s getting rid of social housing stock from the system and allowing the property investors to take over.
@@a1white No - that's not true. Thatcher's policies only changed a few lives.
@@scinformation7229 😂
@@a1white To be fair the minimum standards of living have increased a lot since then. While there still is a problem with slum landlords (just see the bottom end of Spareroom) it used to be two or three to a room, sleeping on the floor, and three generations of family in a crowded 3 bed terrace house because no one could afford their own home.
Arguably Thatchers policies allowed many more families to own a home, which is great for social mobility. She just didn't realise that if you allow a working class family to buy a home for a fraction of its value, they would instantly sell it to a full time landlord and use the money for trips to spain
It was affordable in the 90s. Now its impossible
As an ex-Londoner this all seems very familiar. My wife and I each earned around the national average salary and even combined we stood no chance of owning a home in any of the areas we lived and worked. Now all the pubs and venues closed that I liked I saw no point in staying in that city.
Hello. What seems to be the problem?
Mainland Chinese money laundering using real estate all around the world has priced all the locals out. The only was to fix this will be bloody revolution.
I am a first time buyer. I think buying in the UK in general is a complicated and lengthy process. The buyers have no protection and the seller will make you wait until they find their own house to buy as well. It is ridiculous.
And the sellers have no protection from a buyer pulling out at the last minute.... Works both ways
The big problem UK have in terms of housing, is the mass immigration that's created the housing crisis. Rwanda is a start but more needs to be done.
You can never own your property in a Monarchy like UK where the Crown owns everything and even your freehold is not secure. Read land law for UK.
Immigration has only really affected the social housing market. However, when it comes to private properties this market has been adversely affected by foreign investors buying up properties solely as investments thus pushing up prices as the demand increases.
@@FART-REPELLENT They've affected far more than just housing.
the whole idea of investment properties is ludicrous. You can't have affordable properties while also having rich people are corporations competing for living space. Make it make sense.
Exactly. Singapore seems to have got it right. Housing for all the nationals in high quality HDBs. Then separate more expensive housing for foreign investors. They’re not competing for the same properties.
@@hashmo101 because Singapore cares about its citizens.
Why? In Britain, Property is treated as an asset, not a home. The means to enable people to find and afford to own property is massively corrupt. Estate agents should not exist!
@@cordfortina9073 and Social housing should never have been sold off to tenants for a few pounds each.
@@cordfortina9073 which came first? The faulty policy or the sell off? (I lived in London from 70-99 and saw it all first hand)
Get yrself a license m8
@@LysanderLH and social housing shouldn't be a home for life....there are people living in council houses earning 6 figures as their circumstances changed.
@@jenjones90 dealing with people/families inheriting social housing would require local council housing teams to retrain and create new departments specifically for that purpose. As staffing budgets are very tight, staff would probably be moved from homelessness teams, thus creating other issues.
Long old time ago, I know some people who bought their house in Finchley in the mid 1950s for approximately £3500. The house is now worth £1.2 million. Crazy😂
They will hardly benefit from that though 😕
Unless they down size or move elsewhere, they won’t benefit from the market profit the house has amassed. It’s all pretty stupid really.
@@peteradaniel Yeah but that is how most people retire is it not. Either that or re-mortgaging it.
Buy upper middle class house in Essex still 490 to spend on car and life. There no bottom in market . It 185 to 280 where I live for 1 bed bungalow or flat and then 350 for semi and then 400 to 420 for 4 bed detach house and then 500 to 600 for veiw or near a train line . . The difference between semi and detach house is only 100 or 80 grand . That's problem there no bottom once get on property ladder it relatively easy to move up but almost impossible to get on
My grandparents. harrow. 2.5k 1950s . 3 bed terraced
The problem in the United Kingdom is that billionaires from all over the world launder money there by buying property. So there is nothing left for the young British or foreign people who live there! I lived in the UK for 15 years and had a miserable life, always sharing houses with strangers! Today I live in the countryside of Sweden and have an infinitely better standard of living, even though I face worse weather and higher taxes than in the United Kingdom. If I were a young British man I would immigrate to Australia, Canada or New Zealand and make my life in one of those countries. The United Kingdom is completely dominated by billionaires from the Middle East, India, Pakistan and Russia. Try to find out the origins of the majority of property owners in the United Kingdom and everything will become very clear and evident!
CNBC conveniently forgets Tony Blair, who when in office stopped building affordable social housing whilst simultaneously opening the border to millions of East Europeans in 2004. He then went on to make millions in the property market. Many MP's today, especially Tory MP's are private landlords who have no intention of reforming the private rented sector. To many vested interests are involved with most property owning MP's (many with private villas in Spain, France and Italy) plotting to rejoin the EU.
@@curtisducati And crucially didn't replace them. The current points based housing allocation clearly stipulates only the most vulnerable and most in need are placed in band A and B (top priority). Those not placed in bands A and B will probably be waiting decades for affordable/secure housing. Because asylum seekers and specifically refugees are considered the most vulnerable in society they will obviously get housing priority. And with net migration at around 250 thousand per year, they'll need to build a city the size of Birmingham every four years just to house asylum seekers. It's a complete disaster and all thanks to open door immigration.
In the US our politicians favorite scam is insider trading. Even when this becomes public nothing happens to them. Its business as usual.
very true
When I was in UK. I saw empty boarded up streets under a constant grey sky, litter everywhere.
Homeless people sleeping in doorways. A women with cat whiskers makeup casually walking into Tesco with her pajamas. Opioid addicts out of their mind and women so drunk they urinated on the streets.
It's a sad declined country.
Yes, Kensington's not what it once was.
and cat whiskers for make up - what is the world coming to?! 😺 @@manofweed1
Those empty boared up houses are usually in some completely forgotten town in the north where there are no jobs.
This video totally fails to mention that the judicial, administrative, political, media and finance/business industries/professions are all centred in London. When all the economic power is centred in one city, it attracts all the people to that location/city. This means that demand for housing outstrips supply and hence prices continue to rise, which creates a housing bubble. When all the major industries/professions are based in one city because because most of the talent is based there and people are there because businesses are there because the talent is there... It becomes a hamster wheel. Along with this, demand for housing continues to outstrip supply thus pushing prices. One solution is to relocate entire industries/professions across the uk and the talent will follow them. After all there is more to the uk than just London. However the political will is there not and many powerful property developers will not allow any move which would reduce their land/property prices. Which means... nothing is likely to change in the foreseeable future.
Agreed. Firms are slowly trying to return to full in-office work, even when it's not necessary, and with most big organisations being in London, many people have no choice but to move there. Remote working would resolve most problems, but firms are too greedy and controlling to allow it.
You're spot on! But it's much easier to blame Thatcher than do any real analysis and implement policies that will cause significant change. In true political form, lets blame someone else and thus not have to address the issue ourselves
@@MissimoCat Remote working is not the only solution. As a young person, when everything is based in London, it makes other places in the UK just very unnatractive to live in, even if I can work from home. The rest of the south are like suburbs of Lonodn with nothing there half the time. Cities in the north seem to have more of a personality but until more business moves there they will never have as much going on. There has to be some reason for people to move to these areas. I'm from a tiny commuter town in the south. I'm never gonna live there long term as a young person. There are no young people there and no facilities at all.
The CONSUMERS are in London that’s why businesses come to London
Failed to even mention the steady increase in population of London since 1981. The drop in people getting married and increase in carreer driven singletons living alone.
It also fails to mention the fact that Right to Buy was originally a Labour Party proposal in their 1959 Manifesto. Furthermore, New Labour had more than a decade to limit expansion of the Buy to Let phenomenon which started in 1996 but did nothing.
A perfect storm!
They also forgot to mention that londons population was decreasing dramatically pre 1980s, so houses should have been getting less expensive during that period.
A lot of the properties in the 80s in London, were available to hardworking young professionals, i.e nurses, doctors, surveyors, builders, etc, however those were the halcyon days of the baby boomers and post Empire, and in the height of it, a hardworking family and indeed many did so, bought their houses. Fast forward a couple of decades, a lot of those properties were sold for a quick profit. I could tell you that Battersea was just a working class area next to Kensington and there were no yuppies in Brixton, and that was the early 90s. Change happens unfortunately and now those career driven singletons live together in several pocket neighbourhoods in LDN.
Getting married, leave that ridiculous ritual alone.
@@sidesauce Financial disaster
This is happening all over the place. Here in Southern California, the average house is about $800,000. Many adult children live at home now, and rent is ski high.
That's still affordable compared to London, imagine paying that $800,000/£500,000 for at best a run down 2 bedroom terraced house on the outskirts of the city or alternatively a small 2 bedroom apartment nearer but still not actually in the centre, or a half share of a semi-reasonable apartment in the centre.
I live in SoCal. My tiny 3 bedroom house is valued at $700,000. Corporations are buying up houses everywhere and renting them for outrageous prices. In northern California overseas people are also buying up 2-3 houses and leaving them empty as investments. People are now completely priced out of the market.
@@gr8macaw1 sounds crazy but it shows how bad the situation is that reading that I think, 3 bed $700k that’s not too bad. In the US average salary is like $60k, here our average salary is £28k, I live about an hour outside London and I’d struggle to get a modest 3 bed like you’re saying for less than £450-500k
@@gr8macaw1 That's true in UK too. Empty homes, bought by oversease investors.
its called corporate greed.
The property taxes is a very attractive reason. To buy in London. They only go up in the US. Imagine owning a home and paying $800-$1000 a month in tax
For the US, it really depends on the State. Income tax varies too. Texas has very lucrative income & property tax rates.
California screws you over.
Some countries eff you up with income & property taxes too -especially if you make over certain amount.
@Jimbo Jimbo thats actually not true, factoring in exchange rate, $1000 is the cost at $500k (if you can find one that cheap in London but the maximum is $2,800 , even for a $100million property. Here in the UK all properties are allocated a band based on the value of the property, regardless of size or location
In California prop 13 passed in 1978 it limited property tax increases to 2% a year as long as you lived in the house from the date purchased. I bought my house in SoCal in 2000 and my tax has not increased more than 2% yearly. I currently pay $4,500 per year.
But you Americans are the most taxed people on the planet....lol.
All your tax dollars go to building useless huge nuclear powered aircraft carriers.....but you do get to say Fkin A - when it passes you.
It’s extremely sad that I’m being pushed out of the place I was raised in & have all my family in. I currently pay half of my earnings to have my 1 bed place. Before council tax etc. London is home & it’s sad I don’t see a future here because of this.
I left for Spain a few years back. I know how hard it can be hope you can find your answer
You have to try to take the plunge. I moved from NW London in 2020 45 mins away in a place called Brampton. its the best place and thing I have ever done. I had that mindset and so do many 'I can only live in London' and that's what messes people up!
It does not help that a lot of dirty money has encouraged developers to focus on building luxury properties.
Because you limit supply and allow rich foreigners (who do not even live in the city) buy up all the property to hide/wash their money. See also Vancouver
Exactly!!
Correction- it’s hard to get on the U.K. property ladder full stop.
Because pseudo housing charities and foreign investors are bulk buying.
Hard is a gross understatement.
Lisbon has become quite expensive, too, and wages in Portugal are some of the lowest wages in Europe, we’re pretty much doomed :/
The lowest I think
@@newmind4850 not quite, Romania and Bulgaria have the lowest wages as far as the EU is concerned.
Amsterdam is facing a housing crisis too, average home of 70m2 starts at 650,000 euros and gets overbid by 10%. Imagine paying 700,000 for a 70m2 house. And the mortgage interest rate jumped from 1.2 to 2.5% in 1 month.
but you get train and bikes and just gentle functioning transport
LOL 2.5%!! interest rates in US are 5.75%
@@kyleafc9583 average 700,000 euro is alot tho. Even in the most expensive state of cali, the average prices are not that much. Also note, Dutch salaries are alot lower than American.
@@darreldennis7115 the average cost of a median home in California is actually $700k… average salary in US is $56k and in Holland it’s the equivalent of $40k… not that much of a different Darrel.
Yeah, But in Amsterdam you can go out, smoke a joint and dont care about mortgages......or anything......
In Europe, you work to live. In the US you live to work. It is horrific.
You only have to look at US expat vids to see how bad a deal the US citizens get.
Now London house prices are on average 15 times the average annual salary, not 13 times.
I was brought up in a house in Nth London in that was built in the 1930's. My grandfather was actually the Clerk of Works when the road was built and he moved into one of the newly built houses. My dad was raised in that house and i was born into it in 1965. In the early 80's my mother and 2 of my sisters brought the house under the right to buy scheme for £30k. In the 70's and 80's this was a very working class neighbourhood and very few people could buy their house despite the right to buy scheme. A house recently sold for £720k and to the amusement of the 'oldies', instead of battered rusty old cars like 'there used to be', there's now Range Rover's, big Audi's and even some of those 'electric things'! These are 'normal' houses, no architectural merit, 3 bedrooms with the 3rd about the size of a single bed, in a non descript road. Young couples new to the market, no chance.
We need to discourage housebuilders from hoarding plots with planning
permission. Treasury and the Bank of England must be weaned off their
dependence on land and house prices, and rebalance the economy away from
property. There must be fundamental land reform to bring development
land forward for housing at sensible prices so that new housing can be
truly affordable and existing prices can stabilise. We need to stop
developers from dodging the buiding of social housing.
Genius. Absolute genius. This solves everything. Please take a megaphone and take to the streets
The thing is thet a certain group of people is buying all the houses and bringing their family in as immigrants. And there are no more houses left for actual english people
@@uk9383 Dude. Statistics. It really helps you. Like if you chop an apple into 10 pieces and you take a piece and someone tells you to give him an apple and you give him a 10th of an apple. then that is fucked up.
Just like your total ignorance that you have to look at which slices / percentage each sector makes up in a given market. Foreigners are mostly laundering their money. These are properties less than 1% can afford. In numbers however they do not matter. In money, yes
That’s not the builders fault,they do that to have continuity of work for it’s employees.
@@uk9383 Goodness, what nonsense! As usual The Sun/The DM readers blaming immigrants for every problem under the sun instead of looking to their own government corruption, laziness and greed.
I am so sorry for anyone younger trying to buy a house in London. I paid £96k for mine in 1994 and now it is worth £450k. And that is in Croydon - not a nice place. If I had to buy now I would move to Manchester or Glasgow.
Its expensive to buy property anywhere in the south because rich people from London or who have property in, and work in, London, have second homes by the beach or in the Cotswold area, for example. Many people in Devon and Cornwall, especially, but elsewhere too, can't afford to even rent a room.
Its disgraceful. The rich get richer and we poor get poorer. The socio-economic divide is widening again
Basically landlords were able to set mortgage interest payments against rental income which gave them a distinct advantage against first time buyers who had to pay their mortgages out of taxed income. These landlords were able to snow ball their purchases of low priced affordable property creating an acute shortage of available property on the market.
Planning applications restricted constructions to within the Green belt and brown field sites and the shortage of properties against the appeal of London particularly amongst the international jet set forced property prices up combined by the importance of the financial centres in the City of London which attracted hundreds of thousands of high earning individuals involved in Finance, Banking, Accountancy and Legal firms drove up prices as they were on a different income level to the majority of the population. An acute shortage of affordable housing was created in the 1980s with the right to buy under Thatcher where hundreds of thousands of affordable flats and houseing was sold to the tenants at knock down prices.
London is hell for poor people. Most of us are not gonna have kids. Can barely survive ourselves, wouldn’t inflict this on a child.
lets link up i am loaded
The average wage in London is appreciably higher than anywhere else in the UK! This has a direct influence on why it’s so expensive in London. Not only that you are getting many rich International investors buying Property in London which again pushes prices up!!
If you import 300 000+ new people into a small island to resettle every year to compete over the existing housing stock, what do you expect other than hight rents & property prices will escalate.(100000+ BNO immigrants from Hong Kong came to UK last year).
This is a great example of cultural differences. In the UK renting and living with parents are seen as failures and you're only respected if you're a home owner. Only a 3 hour flight away in Greece it's normal to live with parents until you're into your 30s and longer if need be. Even closer to home in Germany everyone rents, but then again the renters rights and the entire culture around renting is totally different. In my experience renting in Scotland was more secure given the laws there.
Well in Greece many people cannot live in rent away from their parents because their wages are too low. And that doesn't happen only in unskilled jobs. The vast majority of the people does not consider it normal.
Stop allowing international purchases to be made so freely and easily. Nowhere else allows property to be purchased by non-residents without restriction.
A lot of London's wealth comes from supporting shell companies and money laundering. There'd be intense lobbying against any proposal to clean that up.
Because wealthy foreigners are allowed to snap up property at ridiculous prices even though they don't live here.
Same affordability crisis in Canada, especially the major cities!
Toronto !!
Vancouver 😞
@@604h22a how is Montreal mate? Any clue?
It's the same globally especially in most western nations.The plan is that "you will own nothing and be happy" ie the WEF ie the great reset
@@palashrawat401 400.000 pounds still gets you a nice little place near Toronto or Montreal
I left London for ten years. Hated it but needed to be done.
It's quite simple, London's population has increased by over 2 million people in the last twenty years.
There are now people living in sheds in back gardens, more people, limited space, that is bound to push up the price of housing.
And 3 million from 1993, ironically the most “diverse” boroughs have the highest unemployment
Is it impossible to build houses or something? I don’t see why it’s a problem
Also there are hundreds of thousands of homes built in the last twenty years. What is your point?
@@JamesSmith-di4mc lots of demand outpacing supply.
But why no one talks about the leaseholds which is the vast majority of home “purchases” in England
Buying a home is a term that includes freeholds and leaseholds but recently leasehold contracts are getting to be a bit of a scam and the terms need checking carefully.
Incorrect. Vast majority of houses are _not_ leasehold - ie you _do_ own the land. In recent years, houses have been built which are leasehold (on large estates usually) but I would not touch them with a bargepole; I think people who bought them, sadly, were poorly advised and/or didn't read _the small print._
Flats have traditionally been leasehold, but it is possible for the flat-owners to get together and buy the freehold, so they can be in charge of their own bills and maintenance etc, and not at the mercy of someone else who may be ripping them off, as can happen. You can therefore buy a flat which is leasehold or _share of freehold_ in many places. Leases can be incredibly complicated which is why you need a specialist solicitor, as we used with my flat in an outer London borough.
Nothing wrong with living with parents. I made 6 figures from my restaurants in Myanmar (Asia) yet I still live with my parents.
Live in Myanmar then?
@@moasha3872 no that's Jewish culture. The west has a history of homesteading communities
We need a law to be passed that allows a tennant’s rent to be accepted by banks as proof of being able to repay a mortgage
But people keep voting for posho Etonians so it’ll never happen
You don't remember the great financial crash of '07 then? Prior to that people openly lied to a bank about how much they earnt. As a result they took out mortgages they could only afford at zero percent rates of interest. It wasn't just a UK thing; the Americans had Ninja loans - No Income, no Job, no problem. People went absolutely crazy in the decade prior to the crash. The current affordability tests are to ensure it doesn't happen again. I had a three hour interview with the bank to get my mortgage - they went through everything. If we don't learn from the past then we will repeat it.
As for posho Eatonians - well I am no fan of BoJo, but the last time the Uk housing market went bang it was under Gordon "no more Tory boom and bust" Brown.
@@TheTW11 Your bank knows how much is going to your landlord each month via your direct debits, they could see that if you’ve been paying £1.2k pm for two years that you could afford a mortgage, no lying, no trickery, no problem, surely?
@@Brokout I hear you - I rented in London for 18 years and I felt the same. But the banks are trying to protect themselves. I guess the rules were set by the FCA. Maybe people were committing fraud - you could set up a direct debit to your mate and get half of it back. I dunno.
But prior to these rules people just lied - my own sister did. She bought a 300k house back in the '90s on a midwife salary - she just lied. Got away with it cos the rates were so low. It annoyed me cos I played the game and was honest and I was screwed by it.
There was a Panorama program on it in the 90's. Two reporters posed as teachers and went round estate agents in Ealing. They were told openly by the agents to lie about their salary and they even had in-house people who could organise mortgages for them based on fictitious salaries. So today's current rules are a result of previous madness.
They have f ucked it up for everyone.
Great point considering most people are paying far more in rent than they would by paying a mortgage
@@JI7NKJ Yes exactly, mortgage repayments are way less than rent and for people who are paying over the course of a few years, that’s more than enough proof
This has nothing to do with the housing policy 40 years ago. The house price hike is driven by the very low-interest rate in recent years, making it very easy for rich people to finance it with debt as an investment. Many people are buying homes for investment instead of for living. The government should introduce heavy council tax for landlords owning multiple properties, and make it less attractive for them to be used as an investment.
Housing cost has skyrocketed in all powerhouse magacities around the world, not just London. There are cities that the majority of the population, globally, wants to live. London is one of them. From that perspective, London prices are high but not as inflated as in some other major cities around the world. Still, the ROI on London property is not as high as it used to be, even taking relatively low taxation into account. There are better real estate investment opportunities outside London in the UK at the moment. One might find even better ones on continental Europe too.
I'm about to buy a one bed in London for half a million at 28... How have I managed to do this? earn a little over six figures. This is simply what's required to buy in z2 London now and this cannot be expected to be feasible for most 20-30 year olds.
Exactly, you can only afford it if you're rich
what's your job?
@@markohenry5891 milkman? What’s a milkman?
A one bed for £500k?! Mugged.
@@thunderbug8640 maybe but ill be selling it to an even bigger mug in 30 years time when I retire which should fund that townhouse in Tuscany - the world... she keep on going round!
Too many people coming here and needing property in a very small country. There are now more people in London that some countries. Finland, Denmark, Finland, Swizerland to name a few. Spent 2 days in London recently - only heard one English accent.
@8rick1ane We too were taken over, twice, and it left us in far better shape. Like we left countries in better shape when we left. There are countries like India that have thanked us for what we did for them. Look at Singapore and how well they've done. Surprising how others have needed to be propped up for decades and will do forever. They come here because we are highly intelligent and a well-off country. If they take it down theyll be left with what they left behind. Their look out really.
It’s an easy answer. The country allows international investors to buy residential property. Global demand on constrained supply lifts prices.
The UK government gets more property taxes from higher property prices, international investors get the “safety” of the UK legal system and diversification away from their home country.
Everyone needs a place to live, so the chances of renting out a London property is high, making this place a “safe investment”
Exactly Why?! Rotten houses, outdated culture, lazy people, crap food...
It's happening here in the U.S.A also that's why our 41 yr old daughter and granddaughter live with us.
Well kick them out. That's so unamerican
Absolutely no value for money in London property, unless you are a very rich investor. Great place to visit but not to live.
If you want to reduce the birth rate, just keep developing an economy based on ever increasing house prices.
Also worth remembering that Housing Benefit is paying for the accommodation of vast numbers of unwaged/low waged tenants in London.
A point that is very rarely mentioned, and mostly large families too.
Bruuuuuh I'm 35 still living with my parents.
It'd be worth mentioning the role of oligarhs' money pumped into the the real estate market.
We may have another video in the works about this...
@@CNBCi Release it!!!🤣
@@CNBCi Chinese and Russian money
@@CNBCi An an American expat, and 22 yrs in London I have seen eye watering increases in property prices (much to do with Oligarchs and other foreign investments driving up the market). BUT I would still rather buy in London than any major US city as London market will always be a better investment and any dips recover quickly. There are also better schemes in the UK for helping people get on the property ladder which I don’t see as much in the US.
It is not just London, it is the same all over the UK. Anyone with a decent house is not moving because the costs to move are too high and there is nothing available to buy. The market has almost completely stagnated. Far too many "londoners" bought second and third homes over the last 2 years due to ultra low interest rates. What we need is higher interest rates to force second and third homes back onto the market which will create some reality back into prices.
People say communism doesn't work but go to Singapore where the property is mostly under public ownership and of decent quality. It seems to work pretty well.
Agreed
Great: another video describing the problems and not highlighting any potential solutions!
Luddo Nocco , there are no solutions.
@@PHlophe build more homes and make it super expensive for non owner occupiers to purchase them?
Videos be like: the future is dark. Deal with it.
@@hashmo101 The housing mafia have the governments in their pockets. Restrict supply and increase rent prices. These rich families make money from renting their properties out to the average salary man. The game is ridged.
Videos like these will never acknowledge the affect of mass immigration. Can’t pursue solutions until the proper causes have been identified.
Russian oligarchs buying up dozens of homes is another factor that makes it harder for middle- and working-class people to get a house in London
What member of the middle class was going to snag themselves a house in Belgravia lol. It is because of the shayateen Margaret Thatcher that basic entitlements such as housing are out of reach for working people
Yes. There are a lot of our rich people that bought a property in London. But is there anyone to blame aside British government?
Money laundering
Based on my memory of the late 80s in London, a reasonable one bedroom flat was about 7 or 8 times as much a modest salary. Now it's 19 or 20 times as much. Rent is 10 ten times what is was in the late 80s, whereas salaries have about doubled. So if you rent first, how the hell can you even save for a 5% deposit? Not exactly rocket science, is it?
*No one talking about OVERPOPULATION?*
Is it because of all the laundered money brought into the country from others buying houses in London is good way to clean it even more.
In whole world its really expensive!!! For example here in Brazil.
The fact is there is no AFFORDABLE housing being built in London. Developers /planners/Councils label it is such but wages (especially Public sector workers) are stagnant and condos end up being bought up by property magnates or overseas developers. It is getting beyond a joke. I’m furious. The public sector workers will end up moving elsewhere more affordable and then who will staff the hospitals, police, libraries, schools, etc in London. Libraries are so often overlooked. They’re safe places for the vulnerable and going to be havens for those who can’t afford to keep their heating on over winter. Protect them!
Someone here suggested the average price of a studio can be over £ 3500. That's for really really high spec super luxury ones. You are expected to pay over £1000 for a studio in London. I have friends who live in zone 2 and rent pretty decent studios for just over that price. where I live, Canada Water, you can rent a modern studio for £1,100-200. If you want to live in Chelsea then that astronomical figure makes sense.
Born in London, now work and live in Hong Kong. I sure know how to pick them don't I?
Those most popular cities are always the most expensive to live in (shocker!). Its no different in Paris, Hong Kong or New York.
Really weird CNBC are pinning it on free market reforms not planning permission issues. Free markets work based on supply & demand, the problem in the London housing market is that supply isn't keeping up. Why? Planning permission to build new houses is difficult to get. There aren't many house builders in the UK and once they get planning permission there's no time limit on when they need to build by, meaning they can buy up the land & choose to wait to build when the housing market is up. It incentivises builders to wait, since prices go up when demand out strips supply.
Another reason is an absolutely stupid rule of leasehold and freehold, which is very unique for the UK. Most of apartments are leasehold and you are buying a 100 year rent, so you are still don’t own a home :)
They are usually 999 years
@@manorexia1964 I’ve never seen 999 years. Which city are you referring to?
@@nikitayarygin1314 Hounslow west London, Feltham for example
Standard lease is 99 years.
7:10 Not true for Billionaire's row in NYC. Or for many other luxury properties. All you need to do to avoid paying significant property tax is a loophole - like the luxury housing developer paying for affordable housing to be built elsewhere - the price of this often makes up a fraction of the money saved through tax. The ultra luxury billionaires row houses for example are paying relatively very little in property tax.
The help to buy scheme is horrible, it is a grenade waiting to go off, and when it does, loads of folks will suffer
Weve moved up north and bought our house outright and there's work here,i still get the minimum wage but it goes a little further
It’s really tough, having been born in central London and love this city. Moved out to a commuter town of Luton, not great but far cheaper and I don’t miss much at all. Prices are unlikely to come down, government is heavily invested in property market to let anything effect it. Move out and avoid London.
Had it not been for the inflation and monetary and fiscal policy by the government, the housing price in crucial city would never be incredibly unaffordable.
Airbnb is adding to this problem...
Answer = foreign investors
Answer = British government should focus more on GB itself, not some Ukraine crisis and etc.
Answer= incompetency in managing money
from the south east coastal town UK house prices here have rocket'd since the pandemic due to the large number of people leaving London for a better way of life and Sadiq Khan's new London, no longer having to battle the commute has led to many things including hyper inflation my home has increased only on paper mind by 150K in just two years
Same here. Southern seaside town. Not very desirable or particularly expensive. But now it is for same reasons. Will turn out like Cornwall if we don’t take actions.
If everyone wants to live in a place, that place can charge whatever they want because those idiots will PAY IT. NYC and LA are the same.
In 3 years the value of my house at the outskirt of London has increased by 10%. I could not afford today what I could afford then, despite changing jobs and have a substantial increase in salary for both me and my partner. The help-to-buy scheme seem just a gift to construction companies so that are sure to be able to sell all the flats they build. High taxes on luxury properties would discourage speculations and force building societies to invest on more affordable houses.
Not a single mention of immigration? We're not having as many children as our grandparents so obviously the growing number of people in the country are coming from outside. Then theres the fact that there is a monopoly of house building projects that get favourable conditions to build cheap but over priced housing that the help to buy scheme is made for. Did I mention that a massive portion of funding that the conservatives receive is from construction firms? So labour creates stagnant wages and increased population growth while the conservatives monopolise the influx of people by building more housing to generate more income for themselves.
If Blair didn't change the immigration laws in the UK the rough estimate of median house costs would be around £80k not £250k.
Supply and demand. Also class system. Banks dont lend a mortgage imunless you already have a large sum saved up. A good consistant salary. And a parent who owns property to be a garantee. Uou need good credit 'score' basically you need wealthy parents. Everyone wants to have a lodger to pay for the mottgage. The system needs mugs to rent the spare room for the 'business ' model to work.
The graph at 3:50 is misleading because it doesn't include owner occupiers without a mortgage, which make a significant part of the housing market (approximately 1/3) and recently (~2016) overtook owners wirh mortgages as the largest single group.
Tenants are the new slaves.
Landlords with mortgage are also slaves
This video completely ignores mass migration as a part of why the house prices are so high in not just London but the U.K. as a whole.
And you're overlooking the rich people buying up the houses which is why the house prices are actually increasing?
Average salary of 30k a year.
Tax : am I a joke to you
Take home after tax on 30K is about 24k
You can put 90 different cities and counties with the same video title