Depends how you define 'making ends meet'. If by that you mean living from paycheck to paycheck (if you actually have one!) but failing to build any wealth, then yes, I suppose the majority do make ends meet. The real issue is the super rich are here only to avoid tax under the non domicile regulations. They force up prices for the tax paying majority. About 50 years ago, areas like Belgravia and Mayfair were for the British upper middle classes. Now, thanks to the influx of the tax avoiding oligarchs, Arabs, Americans etc. these British upper middle classes struggle to afford Kentish Town. Something has gone wrong.
First of all, asking prices don't mean that much. Sales tend to be transacted much lower than what the seller wants. For example, a house on my road was offered at £1 million in January of this year. It sold in July at .....£900k. The surge in rents underpins property prices simply because the yield has increased. It's very attractive to cash rich buyers. Even I'm thinking of buying another property. Yes, of course it does!!I think you just made this up!! There's no difference. We haven't seen any hyperinflation yet simply because the velocity of money is slow. If that were to pick up, there would be much higher price inflation. I think the velocity will creep up (in the UK, the level of mortgage approvals has been rising). I personally do not think either the UK or the US will experience hyperinflation however.
Can you not see clear signs of economic CONTRACTION? What do a huge number of layoffs in London's primary revenue generating industry mean to you?
Sure, i already mentioned that the redundancies are rising in the financial sector. What is your point?
Plenty of 'London's different' posts here. Mmmm, where have we heard that one before............... Look at your economic history everyone, London property prices have been booming and busting for centuries. So do you want to bet against natural economic cycles or are we now truly in a 'new paragon'
You said layoffs are increasing but then in your next posts said there is no deflation and seem to think property prices will keep rising.. if I'm not mistaken?
I can only restate the facts which are, rents are rising, property prices are rising, inflation is rising, and wealthy people are still coming to live in London. Btw, not sure why multimillionaires and billionaires would come to live in a cesspool/shithole. NY City would be the preferred destination for anyone who wanted that, i would have thought!
http://www.guardian.co.uk/money/2009/jun/27/emigration-jobseeking probably it is more true today. property rich but cash poor can move across the ocean . property is dirt cheap in parts of the US. the left over cash can be used for living expenses or to start a business.