First Time buyer - Opinion

It’s as close to the real world as reality television, yes, it might be reality to those who have never known anything different to today’s situation but I’m afraid that they are in for a rude awakening when the bubble bursts as it surely will, no way can the property market continue at present levels when prices are so out of line with earnings.

Common sense says that the current level of household debt is unsustainable and that eventually there will be a day of reckoning.

www.independent.co.uk/money/is-britain-facing-a-debt-disaster-a6808086.html

Won’t “spreading the London effect” simply lead to London property prices without a corresponding increase in earnings as the jobs created will only be suitable for a relatively small number of people?

I see two issues here, but basically there is a curve of wages, lots of people get a low wage and a few people get a high wage.  Right now, with only London really offering great high wages the difference between the top and the bottom is getting wider and the size of the bottom is getting wider.  Increasing the city opportunities means that the difference between the top and the bottom will reduce, the width at the top will get wider and the width at the bottom will get smaller.

If you look at pricing of houses, by adding in Manchester/Leeds/Bristol to the London volumes you will increase the supply and not over extend the demand.  This should also bring down the average cost of top end housing but increase the top end in Leeds/Bristol/Manchester.  I suspect this has been seen in the Salford affect as produced by the BBC.

All, in all, a good thing.

That there people who are missing out on globalisation, are unable to compete or lack the education.  I suspect that is outside the remit of a P2P discussion.  What I would say is I've been trying to elevate the aspirations of schools for many years (with little success) and the resulting educational norm of the feckless British is amazing.  The days of a job for life disappeared in 1980 and if people are still learning that today then it amazes me.

I once ran a business (in Lancashire) where not only did my average age 55 year olds expect to keep doing what they had always done but what they did is actually what their grandfathers did.  It took 3 months to disabuse them of this notion and, fair does, they all rose to the challenge and showed that you can teach old dogs new tricks.  The business showed a major turnaround going from break even to making 25% ROS in the first 6 months all down to them changing what they did.  So I don't believe that the jobs created will suit only a few people, but I do agree If they can't a&&&&d to change then only people from outside the area will get those jobs.

People are amazing, while the British lack an acceptable education system, their inherent intelligence and pure grit have shown me that they can do fantastic things, but, they often suffer from "boiled frog syndrom", with a clear message and a clear path to success they will achieve.

I see the northern powerhouse as a major opportunity for Northern people, I suspect the stupidity of the political classes in Sheffield and Leeds will ensure that only Manchester gets any real benefit.

I am, of course, only an adopted Yorkshire man. 

Have a great weekend

I don't know property prices very well in Liverpool Street, but the best flats in Islington, which is still walking distance from Liverpool street and probably more fun at the weekend are under £1000 per sq ft and have been drifting down for the past year. New builds still have very optimistic prices  along the lines of those you mention.

Having said that I have been to Liverpool Street at the weekend recently and it is very different than it used to be. I would happily live there.

As a side note many of my former colleagues (and me) spent many hours looking at property prices outside London. Sell the 3 bed flat, pay off the mortgage and buy a mansion somewhere on the outskirts of Leeds. Only a handful actually did though.