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This is pretty much the situation in the UK for the last few years, although the rents are closer to 10% the property value. Where I'm from, a nice area but pre

This is pretty much the situation in the UK for the last few years, although the rents are closer to 10% the property value. Where I'm from, a nice area but pretty limited job prospects in any industry, a 2 bedroom apartment sells for £150k ($220k) and rents for £800 ($1200) a month.

koralatov 11y ago
Which part of the UK are you in? I knew there was a growing housing problem nationwide, but it's always interesting/depressing to hear specifics. I'm in Aberdeen, and I've noticed the same kind of issue, except here renting a two-bed in a not-crappy part of town is £1,000+ per month. A crappier area, like where I live, is between £700 and £800. A nice area is in the region of £1,500. Here, the (currently stuttering) oil industry has had a huge intensifying effect on price rises, both by putting more well-paid people into the rental market and by creating a larger than average pool of Buy-to-Let landlords looking to invest their oil earnings in property "for their retirement".
- lucaspiller 11y ago
  I'm not there anymore, but this is West Dorset. It's a nice place to raise a young family, but the job prospects are few and far between. It's a bit too far to commute to major cities unless you want a 3+ hour drive or train journey each day. Unless you are happy working in Tesco or being an office administrator, all young people will gravitate towards London. The biggest industry is tourism, but that of course is very seasonal. There is a lot of new development going on (around 60/40 split between green and brown field) most of it being retirement apartments. They are a great idea as they create jobs and relieve housing demand, but at ~£300k they are well out of the price range of most local people.
jseliger 11y ago
I've posted this before, but it's germane here: http://www.buzzfeed.com/dlknowles/britains-dysfunctional-property-market-in-gi-fm44#.krPm5pdVO http://www.buzzfeed.com/dlknowles/britains-dysfunctional-pro... . The UK and London in particular has essentially decided to make increasing the supply of housing through building more of it extremely, extremely hard. Econ 101 suggests that holding supply constant as demand increases will raise prices. The solution is intellectually easy but politically difficult. The UK can, if it so chooses, make housing much less expensive by simply letting markets function.

koralatov 11y ago

Which part of the UK are you in? I knew there was a growing housing problem nationwide, but it's always interesting/depressing to hear specifics. I'm in Aberdeen, and I've noticed the same kind of issue, except here renting a two-bed in a not-crappy part of town is £1,000+ per month. A crappier area, like where I live, is between £700 and £800. A nice area is in the region of £1,500. Here, the (currently stuttering) oil industry has had a huge intensifying effect on price rises, both by putting more well-paid people into the rental market and by creating a larger than average pool of Buy-to-Let landlords looking to invest their oil earnings in property "for their retirement".

lucaspiller 11y ago
I'm not there anymore, but this is West Dorset. It's a nice place to raise a young family, but the job prospects are few and far between. It's a bit too far to commute to major cities unless you want a 3+ hour drive or train journey each day. Unless you are happy working in Tesco or being an office administrator, all young people will gravitate towards London. The biggest industry is tourism, but that of course is very seasonal. There is a lot of new development going on (around 60/40 split between green and brown field) most of it being retirement apartments. They are a great idea as they create jobs and relieve housing demand, but at ~£300k they are well out of the price range of most local people.

jseliger 11y ago

I've posted this before, but it's germane here: http://www.buzzfeed.com/dlknowles/britains-dysfunctional-property-market-in-gi-fm44#.krPm5pdVO http://www.buzzfeed.com/dlknowles/britains-dysfunctional-pro... . The UK and London in particular has essentially decided to make increasing the supply of housing through building more of it extremely, extremely hard. Econ 101 suggests that holding supply constant as demand increases will raise prices. The solution is intellectually easy but politically difficult. The UK can, if it so chooses, make housing much less expensive by simply letting markets function.