Thought Id start this one going because its rather dead on this board at the moment and I suppose all my usual muckers are either at the Stella tennis event watching Dim Tim (lose again) or at Henly Regatta eating cucumber sandwiches (they wish,...NOT).

Anyway please feel free to just talk to yourself blast away and let it go on any company or subject you wish. Just wish Id thought of this one before.

cheers GF.

London prices have been artificially low for some time. A rise in prices was overdue and it is still not enough.

that's a matter of opinion, especially if you are talking about "smart" central london!

I am talking about all of London

I wonder when the bubble will burst!

old story, but gives an idea of where the market is going.



Rent costs Harrow families more than 50 per cent of their wages, according to Shelter
.
1:00pm Wednesday 9th January 2013 in News By Emma Innes .


http://www.harrowtimes.co.uk/news/10149527.Rent_costs_families_more_than_50_per_cent_of_their_wages/


The average family in Harrow now spends 51 per cent of their earnings on rent.

New research by housing charity Shelter shows that in the borough private rent is eating up more than half of an average family’s wages.

The research, which drew on government figures, shows that in 23 of London’s 32 boroughs rent takes up more than 50 per cent of a family’s wages.

Campbell Robb, chief executive of Shelter, said: “The news that renting in the capital is unaffordable isn’t a surprise to the Harrow families who are stuck in the rent trap, unable to save anything towards a home of their own because they’re paying out so much each month in rent.

“But the fact that rental costs in most areas of London are eating up more than half of family incomes should stop us in our tracks.

“Rising rents, the constant threat of eviction, and hidden fees are all par for the course in London’s frantic rental market.”

I doubt it will burst. As far as London is concerned it will reach a balanced level. The prices have to rise due to the size of the demand. There are plenty of areas of London where there are almost no homes under £1m for a house. The only option is flats and they will rise even faster. That is just looking at the outer area.

the rush to try and get votes will fcuk up the uk boom and bust is back big time
wages down rents up it will be a big bang .

next years pension rise gone before it is paid for heating their homes .
nothing for food and clothes .
Cameron said pensioners should put on their coats and go to bed
and turn of the lights .

fred+MK - i note that RBS with their "help to buy" scheme will only allow 55% of income to be entailed (not quite the right word), and a few other strings too ..... nevertheless, that's a huge change from when i bought my first house (flat) in about 1972 when the accepted multiple was 3x earnings (33%) ... however, it should not be forgotten that interest rates were then very much higher

Hays,

So were black tulip bulbs.

Manuel.

The rises will feed into inflation and rates will increase.

I think we are stoking up problems, short and longterm.

=============

But I have been struggling this morning to find shares in the FTSE 350 with reasonable P/E and projected EPS growths and I am finding it difficult.


Is the market going to trade sideways for a while or ?

the avge gov pension is £6760 a year energy bills for the pensioners £1450 a year
that leaves the old with 5310 a year or £102 a week living wage £280 a week .

the UK 2013 .
all parties should hold their heads in shame

fred - it was ALL tulip bulbs and ditto investing in south sea company and a number of other spiffing schemes

rate rises - almost certainly so in say 2 years time, but that will (also) be linked to growing world economies ..... in any case, i'ld be quite surprised to see mortgage rates rise from the current approx 5% to >7%, which historically is still low

ftse - "my man" still reckons 6900, which gives a fair amount of headroom, though that doesn't quite answer your Q .... you might want to look at something like RTN, as i think that is now a promising sector with "feelgood" now seemingly firmly on the up track

Tulip bulbs had little intrinsic value. Property has a large intrinsic value in that it is needed to live in. The extra above intrinsic value is the demand. That demand is not going away.

hays - property, like tulip bulbs and gold, has a perceived value .... a bit unfair i know as i too am more than happy that my pension fund is almost exclusively in bricks and mortar with 5% yield

UMMMM.

Don't forget the ground nut's

cynic
I know an area where you can get 20+% return

ah, but you forget that i own the freehold and have done since 1978 and my tenant is AAA+ with a (minimum) 10 year lease :-)
owning the freehold of course does all sorts of interesting things to the return, depending on how you wish to measure it!

Jimmy Savile Zombie Costume Dropped By Amazon

The outfit, which features a blue shell suit, medallion and fake cigar, is described by a charity as "the height of bad taste".

the new nuclear plant to be built will cost 14b and will cost the uk tax payer over 1.2b a year in payments to edf ever year for 30 years .

it is crazy the UK should build the station and run it not the French and Chinese
1.5b will go to the French and Chinese ever year .
it is crazy politics . CAMERON SHOULD BE HOUNDED OUT
THE CONSERVATIVE PARTY IS SELLING THE UK DOWN THE PAN