The fall of the Tory party

Of all properties.

It’s in the 2021 census.

Eg in Hackney 28% are owner occupiers (16% mortgaged 12% owned outright), 31% private rented, 41% social rented.

For England it’s 63%/19%/17%, so London is nowhere near representative of the national picture.

Overall there are 6.8 million people with a mortgage on the house they live in and they’ll all see significant rises either now or when their fixed rate ends.

Average energy bills went up £150 a month and the government stepped in so we didn’t riot. The average mortgage is £137k, so if we say we’re going to see average rates go from 2.5% to 6% that’s a £400 a month rise on average.

Rents will go up too.

Those people are also happy with higher interest rates as they are often cash rich and benefit from higher savings rates

Rents will go up too.

Think this might be what will keep driving rents up on London

And there are, apparently, 87,000 empty houses in London. I bet with an average of >1.5 bedrooms per property too.

Fixable.

My 80 year old parents paid 17.5k 49 years ago for their Victorian Crouch End terrace. A website says 1.6m-2m today. An inflation calculator says 170k.

cash rich and benefit from higher savings rates

But not if interest rates are below inflation.

Thanks, I wonder if that's were the BBC got their 15% of properties with a mortgage from?

My parents were the same. The value of their old home rose x12 over inflation over ~45 years. Madness.

Very true

Inflation doesn’t affect rich people as much. Food costs for a £100k earner aren’t 5x what a £20k earner eats, or needn’t be, and rich people often own assets that are inflating with inflation.

It's not good if you are asset rich but cash poor. Eg a retired home owner planning to live off cash assets which are not increasing in value as fast as your bills.

Of course you can equity release or downsize or something but you still aren't going to be happy with the higher interest rates.

You are though. A savings account last year was getting you 1% or so. You can get 4% now. So if Granny has £200k she’s gone from £2k a year to £8k. That’ll cover your food and heating bill rises no bother, and she’s probably not out buying a new car or a clothes or whatever else.

Assets m8. That’s what separates rich from poor and what they’re trying to trick you to not buying. Lease a car instead of buy one, Spotify instead of CDs, rent Microsoft office’

“Hey! Why buy stuff! Possessions are so millennium! Live for today!

Oh. Sorry, it’s tomorrow now and you can’t stop paying or we take your car, software and music away because it’s ours not yours you pleb.”

I sold a few thousand CDs last year. That asset won't cover much in the way of bills...

Granny has £200k

Granny is cash rich.

She’s single too, but not a glamorous Parisian type granny, more like a posh version of the skinny one from gogglebox.

She’s quite a developed character as it goes, been working on her a while.

You fule. Now you’re stuck paying for Tidal until you die.

Just be rich.

Truss has been sidelined for Hunt now. Embarrassing for her.

Right to buy effect I London cannot be understated, although it might have felt expensive in the 1990s, subsequent events will have eliminated those mortgages.

Listening to Hunt today he seems to have taken charge and sidelined Truss.

Reminded me of O level history and what Lenin did to Trotsky, only without the ice pick I guess. Or Quisling

But will things get better or are they already better

Just a slightly different flavour of worse.

This will be offset by higher outgoings.

Older people are more concerned with the increased cost of maintaining their quality of life over a small increase in cash savings (any large amounts of assets will likely be in shares and property rather than cash so not relevant to an increase in interest rates)

Most of the older people I come across are just wondering how to put food on the table at the same time as keeping warm as winter approaches...

Can a sub have two owners?