The industry has many problems
Something which is of concern to prospective homebuyers and investors in this industry as well as economic experts is the sharp rise in property prices within the UK. This has resulted in a very high average cost for properties with in the UK which are making the prospect of ownership almost impossible for a very large number of people. It is not only residential homes which is affected by this trend because the cost of parking space with in London has absolutely gone through the roof because of the rising demand for such properties. Economists who are analyzing the current property situation with in London are all coming to the conclusion that property is in this city will eventually only be accessible to the most affluent citizens. This is certain to place a lot of pressure on the middle to lower class citizens and according to statistics less than 10% of available properties are falling with in the financial means of single people. Even families where both spouses are employed will find that the options are limited when it comes to obtaining property in certain parts of London.
Property in London are becoming extremely exclusive
Some of these exclusive areas include Camden, Westminster, Kensington and Chelsea. The property prices in these areas are making it virtually impossible for lower income people to be able to afford these properties. According to accumulated statistics the property prices is in London has recently arisen 50,000 pounds in a single month. The problem is that most perspective property buyers are seeing salary increases that are only a fraction of the increases which are seen in the property market. The average salary earner simply cannot compete and therefore an increasing number of these people will be unlikely to be able to afford the kind of homes which they are dreaming about. The problem is not only affecting property purchases but this problem is also affecting those people who are renting. In order to be able to honor exorbitant mortgage payments property owners are left of no other choice but to increase the rent of those properties. This is resulting in a vicious circle which may not be broken for some time if ever.
What would be the effects on coming generations?
When looking at current trends it may be reasonable to assume that unless a major change takes place the current trend is likely to continue for many years until some kind of ceiling is reached. The problem is that it is a little difficult currently to predict when exactly that ceiling will be reached and meanwhile the situation for prospective buyers will continue to deteriorate and likewise the pressure on those who are renting properties will likewise become increasingly burdensome. Millions of young children may never be able to grow up in the typical family home which has been the good fortune of previous generations. To effectively address the current situation may not be an easy endeavor especially since the most affluent and those with the most influence in society are actually benefiting from the situation. Just like the potato famine in Ireland, people were slow in implementing changes because although people were dying the benefits to landowners was considerable. Sound a lot like the Biblical god of money, Mammon.