London Banter - View Single Post - Crossrail could bankrupt London

Graeme Wall

In message
(Neil Williams) wrote:

On Tue, 25 Mar 2008 13:38:58 +0000, Graeme Wall
wrote:

Do you propose that further growth of London is feasible, then?

I'd say it was inevitable.

I'd say we should be doing our utmost to avoid it, unless it is things
that can go on only in London.

Who is this We?

This is true, though the difference between rents and mortgages in
many places suggests that there is not a correct balance.

Which means?

It is vastly cheaper to rent than buy on a monthly basis in many
places these days. Certainly, in Milton Keynes one would pay about
£500 per month to rent a one-bed flat but £700-800 per month to
purchase it using a repayment mortgage. The main reason for this is
that there is a glut of rental property on the market.

Which presumably explains why rents seem to be increasing rapidly at the
moment.

Given the limited amount of property, this will necessarily cause purchase
prices to rise.

Have you looked out of your window lately?

--
Graeme Wall
This address is not read, substitute trains for rail.
Transport Miscellany at http://www.greywall.demon.co.uk/rail/index.html