(Link is out of date).
The London Evening Standard estimated that a single person needed an income of £38k to live alone in London. That was two years ago. Now the average monthly rent is double the national average at £1,500 per month. But what do you get for your money? For a luxury price tag do you get space? light? quiet? a nice neighbourhood? Oh, nooooo.
Inside Tiny One-Bed London Home On Sale At £275k http://news.sky.com/story/1427755/inside-tiny-one-bed-home-on-sale-at-275k
A tiny ex-council flat in this block is on the market for £1.15 million http://www.standard.co.uk/news/london/madness-in-the-london-housing-market-tiny-excouncil-flat-on-the-market-for-115-million-10269280.html
London flats ‘worse than prison cells’ condemned by council http://gu.com/p/4xbba/stw
But it’s not all bad news. Remember London weighting? The Treasury is raking in most of its Stamp Duty from the multi-million priced houses in central London.
Stamp duty: London weighting http://econ.st/1ryFZk0 via @TheEconomist
Oh, you thought I meant London weighting, that top-up on London salaries to compensate for the higher cost of living in the capital. Well the news there is the idea of London weighting has been quietly abandoned. Over ten years ago it was about £2,000 and it was suggested then that £4,000 would be more realistic. Since then house prices have rocketed, alongwith rents, and London weighting is still about £2,000 for most people.
London weighting should be £4,200, say researchers http://gu.com/p/dhmf/stw
High property prices lift rental sector demand http://www.cityam.com/212726/high-property-prices-lift-rental-sector-demand via @CityAM
BBC News – London’s population hits 8.6m record high http://www.bbc.co.uk/news/uk-england-london-31082941
About twenty years ago I moved to London. The population then was about 7m. The rent on our slum bed-sit seemed ridiculous, we were both working, no dependents and bringing in a standard family income. I checked out house prices. The cheapest houses in our area (Balham/Tooting) were between £200,000-£250,000. House prices outside London were about £75,000 at this time. This seemed extortionate for small, bad quality homes. I looked at renting in suburbs further out. The savings in rent were cancelled by the increase in travel time and cost of travel. I looked at going outside London completely and discovered the London blight (high rents in commuting distance to London) extended so far that again, any lower rent would be cancelled by travel cost and time. So we decided to live as cheaply as possible looking forward to the day when we could leave London and hopefully buy a house somewhere else.
In 2011 we were priced out of London as my husband had retired and the rent on our tiny studio (converted from a bed-sit by putting a wall down the middle) was now equal to either my entire monthly income or my husband’s. So in the twenty years we lived in London we spent approximately £100,000 in rent, to live in one room, on a noisy main road, with noisy neighbours. For the same rent my step-daughter living in Yorkshire lived in a 3-bed semi, in a cul-de-sac in a country town.