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> Isn't there a thing in London about people subletting every part of their property to bus loads of migrant workers? No. 1. This isn't a widespread thing. No

> Isn't there a thing in London about people subletting every part of their property to bus loads of migrant workers? No. 1. This isn't a widespread thing. No idea how you've decided that it is. 2. How does overfilling properties lead to rising prices? If anything, it would serve to keep prices lower. 3. Which authorities are "in on the shuffle taking kickbacks"?

nmridul 13y ago
>> 2. How does overfilling properties lead to rising prices? If anything, it would serve to keep prices lower. When one family rents a 2 bedroom flat, they may be able to afford say 1K (husband and wife working). But when the same flat is rented to 4 singles, they might be able to afford 2000. Each person's share is just 500. So when the landlord asks them 1200, they would happily pay for it as the effective rent per person is only 300.
- YokoZar 13y ago
  What you are saying is that the primary driver of price is ability to pay. This is basically a claim that the market isn't competitive at all. That's a fairly strong thing to say, as even a vastly under-supplied market can be competitive.
  - fharper1961 13y ago
    I don't understand how prices in a vastly under-supplied free market will not rise until they reach the maximum price buyers are willing to pay.
    - YokoZar 13y ago
      "Willingness to pay" is different from "ability to pay" -- your willingness to pay will be greatly affected by the price of competitors or neighboring markets, for example.
      - twic 13y ago
        What competitors? What neighbouring markets?
        YokoZar 13y ago
        Right, if there's no competitors or neighbouring markets, then you have a monopoly situation, and the sole seller (or cartel) are free to set prices as high as people are able to pay. But just because there is a shortage doesn't mean there's a monopoly.
  - eli_gottlieb 13y ago
    If it's what people see, it's what people see. I've definitely seen effects like that in real-estate markets.
sireat 13y ago
This overfilling is pretty widespread across most nationalities just getting by in London, if you go by anecdotal evidence. A friend of mine lives somewhere in North London (I believe it is Golders Green), paying 1300pounds a month for 2 and half room apartment, paying council tax and so on, all on a minimum wage as a porter which is around 1200 pounds a month(why he prefers being a porter over a Perl programmer that is one of his skills is another question). If he were not subletting the room and half, there would be no way he would be able to work in London for a minimum wage. The situation is similar to most people working for minimum wage that he knows. Still, I think this overfilling is a symptom not the cause of high property prices. This overfilling by the poor has always happened in big cities.

nmridul 13y ago

>> 2. How does overfilling properties lead to rising prices? If anything, it would serve to keep prices lower. When one family rents a 2 bedroom flat, they may be able to afford say 1K (husband and wife working). But when the same flat is rented to 4 singles, they might be able to afford 2000. Each person's share is just 500. So when the landlord asks them 1200, they would happily pay for it as the effective rent per person is only 300.

YokoZar 13y ago
What you are saying is that the primary driver of price is ability to pay. This is basically a claim that the market isn't competitive at all. That's a fairly strong thing to say, as even a vastly under-supplied market can be competitive.
- fharper1961 13y ago
  I don't understand how prices in a vastly under-supplied free market will not rise until they reach the maximum price buyers are willing to pay.
  - YokoZar 13y ago
    "Willingness to pay" is different from "ability to pay" -- your willingness to pay will be greatly affected by the price of competitors or neighboring markets, for example.
    - twic 13y ago
      What competitors? What neighbouring markets?
      - YokoZar 13y ago
        Right, if there's no competitors or neighbouring markets, then you have a monopoly situation, and the sole seller (or cartel) are free to set prices as high as people are able to pay. But just because there is a shortage doesn't mean there's a monopoly.
- eli_gottlieb 13y ago
  If it's what people see, it's what people see. I've definitely seen effects like that in real-estate markets.

sireat 13y ago

This overfilling is pretty widespread across most nationalities just getting by in London, if you go by anecdotal evidence. A friend of mine lives somewhere in North London (I believe it is Golders Green), paying 1300pounds a month for 2 and half room apartment, paying council tax and so on, all on a minimum wage as a porter which is around 1200 pounds a month(why he prefers being a porter over a Perl programmer that is one of his skills is another question). If he were not subletting the room and half, there would be no way he would be able to work in London for a minimum wage. The situation is similar to most people working for minimum wage that he knows. Still, I think this overfilling is a symptom not the cause of high property prices. This overfilling by the poor has always happened in big cities.