Rent In London Is Consuming 57% Of Millennials' Income

Tyler Durden's picture

While the luxury housing bubble has burst in the UK, one-bedroom rentals that are popular among millennials are still putting a dent in their discretionary cash flow.

A new study by Countrywide Plc, the UK's largest realtor, reports that a one-bedroom apartment in London now consumes 57% of a millennials net income on average, up 16% from 2007 which saw rent consume 41% of income.

The average cost of a small home in London now stands at $1,609 a month, up 48% in the past nine years, and well surpassing wage growth of 11% over the same period Bloomberg reports.

In Great Britain overall, one-bedroom apartment rents are taking up over 45% of income for millennials, up from 2007 levels as well.

With the price to own completely unaffordable due to the influx of foreign investors and cheap money, many individuals and especially millennials, have turned to renting, pushing rent higher as a result. It seems as though those millennials who expect to make hundreds of thousands after graduating school better track those jobs down quickly, lest they want to end up like many of their counterparts in the US who increasingly live with their parents.

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TradingIsLifeBrah's picture
TradingIsLifeBrah (not verified) Jun 14, 2016 8:32 PM

Don't think of it as rent, think of it as an investment in someone else's future #BreMain

eforce's picture

The type of people that bitch about housing costs in the UK are generally the ones responsible for them being so high in the first place.

Stuck on Zero's picture

Rent is so high because large areas of London have been rendered uninhabitable.

eforce's picture

Those people protesting will be socialists, socialism caused the housing problems we have now.

Stainless Steel Rat's picture
Stainless Steel Rat (not verified) eforce Jun 14, 2016 11:38 PM

The problem is $500 TRILLION of phony derivatives money driving up the housing market.  The big banks are effectively given a license to counterfeit with their ability to conjure this financial instrument.  It is NOT too big to fail.  It must fail, or we all will continue to be their slaves!!!!!  If I can counterfeit money, then the world is my slave.  They will drive the prices up, and then short them down.  This is wealth extraction 101, pure and simple!  It is time that SOMEONE stands up to this!

ZD1's picture

London's Muslim mayor is more concerned about women being "sexualized" in advertisements so he's banning "unrealistic" scantily clad women from ads.

 

Thanks Sharia Law!

 

http://www.breitbart.com/london/2016/06/13/londons-muslim-mayor-ban-biki...

COSMOS's picture

Someone had a good post about percentages of muslims in a country and what stage of sharia law you end up with.

I remember in elementary school Chumbah Wanda the Scumbut Syrian immigrant confiscated all the Barbie dolls from the girls on the playground. He also molested the Ken dolls in his gay playhouse.

I forgot to mention his first wife divorced him because he kept on molesting Ken dolls in his gay playhouse even on his honeymoon.

When I heard about the shooting in Orlando I was almost sure it was him. He is still a ticking Islamic Time bomb in my opinion. Watch out San Francisco and the Gay West Coast of America.

Lets Buy The Dip's picture

and at the same time, energy prices bottom here, and then they send GAS prices back up. 

probably more trouble coming to the market. 

look at the longer term chart of energy, wow =>http://www.bit.ly/1B4K0wk.

these bastards screw us both ways. Do you know love that. 

And who do they have to answer too? Their bottle of GIN, they come home too, while they laugh. 

This world I effed up man. Effed up I tell you. 

maskone909's picture

Whats that famous equation by some econ guy? When a certain percentage of ones income goes to FOOD, you will have riots in the streets? Getting closer every day!

maskone909's picture

Personally i think when one cant affors the ink for the clever protest sign, its time to sharpen the guillotine blades

philipat's picture

Either mass protests or London grinds to a halt because working people will no longer be able to live there. Even commuting in the UK costs a lot because train fares are amongst the highest anywhere and by far higher than anywhere else in Europe and with terrible service thrown in for good measure.

i_call_you_my_base's picture

Wonder what will happen when an entire generation collectively realizes that they've been swindled.

Déjà view's picture

Corrupt shell companies laundering I'll gotten gains in London properties while authorities look the other way. If it feels good-do it!

Sign of a declining corrupt nation...pay attention America, Canada, Australia, New Zealand-5 eyes...BLIND BY CHOICE!

Mr.BlingBling's picture

Cry me a river.  Studios are going for >$2,500 in SF.

peddling-fiction's picture

Same high-priced craziness going on in most large cities worldwide.

LetThemEatRand's picture

"Inflation in advanced economies fell to 0.3% last year, the least since 2009 and down from 1.4% in 2014, according to IMF data."

Quote from the "how low can bonds yields go" article below this one.  One of those nice examples of a gang of facts brutally beating the living fuck out of IMF data, which of course was cited by the Bloomberg author of that article without the slightest question of its accuracy.

logicalman's picture

The bloodsuckers don't care where the blood comes from.

Rent is high, discretionary spending is low

Rent is low, discretionary spending is high.

Either way some large corporation is making you are being made anemic.

All that matters is that the blood continues to flow.

 

i_call_you_my_base's picture

True, although with discretionary spending high at least you have a shot at selling someone something or getting a job in support of it.

venturen's picture

the rent is going to the people given trillions to buy the apartments in 2009

Atomizer's picture

I like the new Muslim Mayor of London. You voted for him, expect the backended consequences. Don't care, live in America.

We have a asshole Muslim for President. Our country comes first before yours. This US President Jackass is in a lot of trouble. Watch and see.

BREXIT: June 23, 2016. Get the fuck out.  

DaNuts's picture

https://www.youtube.com/watch?v=PR60m1WTiT8&list=RDPR60m1WTiT8#t=18

Khan should wear a dress and grow a beard if he expects women to cover their heads, and other parts.

Islam demands it.

Crawdaddy's picture

Poverty diminishes as beard awesomeness increases. It's the law mofos. Don't h8 the messenger.

LetThemEatRand's picture

Have you considered the possibility that popular culture is making big ass beards popular in order to increase public acceptance of muzzie culture?

Crawdaddy's picture

Yes indeedy I have noticed that. Also noticed the cool beard movement coincides with an attempt to use a manly beard as the marker of real men. Visible markers that cost nothing but the avoidance of shaving. On TV and the intertubes, the cool beard dudes are encouraged to chill. Don't kick the invading mohomadeans in the nuts but offer a hand of encouragement as they go through their "shared" struggle.

Cool beard dudes need to be kicking some alloursnackbars in the huevos.

cbxer55's picture

There referred to as hipster beards. Some have predicted that 2016 would see the end of that silly trend. I doubt it, considering the El Cheapos who think buying razors is expensive. I buy 20 of them from Sam's, they last me years. Use a little soap as shaving cream. Shave every other day, rather  than every day.

It's all good!  ;-)

logicalman's picture

I've had a beard for about 32 years now.

Only ever grew it silly long once, just because.

It's not that I like beards particularly, I just hate wasting time and enriching the shareholders of Gilette.

Based on shaving taking 10 minutes a day - 3,650 minutes a year- 60 hours - roughly 2 1/2 days a year

Multiply by 32

80 days - not far short of 3 months of my life not wasted shaving.

OK, call me lazy.

 

Spungo's picture

LOL young people. Get on those knees and suck this dick. Negative interest rates and higher real estate prices are around the corner.

JuliaS's picture

Help the children! What about the children? Save the children! You know what I say? I say fuck the children! Fuck 'em! They are getting entirely too much attention.

- George Carln

PoasterToaster's picture
PoasterToaster (not verified) Jun 14, 2016 9:25 PM

The media obsession with Gen Y continues.  Well let's get a few things straight.

1)  They will never inherit money and property like the Boomers did, because it has all been siphoned away by scams like inflation and debt

2) They are already moving into middle age, as the oldest are 35+, so the image if the eternal fresh faced 20 year old out to beat the world is already dated; the 18-21 group represents the leading edge of a different demographic

3) Segmenting by age isn't very useful if you ignore income; rich asshole "Millenial" children are vastly outnumbered by working stiffs, same as it has always been

4) Pretending all of Gen Y falls into the privileged "Millenial" camp just pisses off the normal young adults who couldn't give two shits if Ashton and Boopsie don't get to be a CEO before they are 30

5) Fuck this gerrymandering of the public into competing slave camps

TheRideNeverEnds's picture

Why don't they just learn some Arabic, throw a towel on their head, and claim they came from Syria?

Free housing, free food, free everything.

yogibear's picture

And the banksters at Goldman, JPM, Wells Fargo, are laughing all the way to the bank as they have perpetual debt slaves that are consumption zombies.

Mercury's picture

A new study by Countrywide Plc, the UK's largest realtor, reports that a one-bedroom apartment in London now consumes 57% of a millennials net income on average, up 16% from 2007 which saw rent consume 41% of income.

 

Get a fucking roommate you miserable pukes!

 

cbxer55's picture

A room mate in a one bedroom? Really? I don't like the sound of that one bit.

I live in a really nice large one bedroom. Costs me around $880 per month. Pool, 24 hour gym on site, spa. Livin the life of Reilly! LOL

NordikAvenger's picture

Countrywide still operates as a legit business?  Ha!

g3h's picture

They deserve it since they stay.

 

Such is the Facebook age.  Maybe they like it.

Being ripped off.

Allen_H's picture

I am in the EU, the rent here has become crazy, I have till the end of this month to find a place to move to, and I cannot find one. This would not be so bad if I did not have a girlfriend and a cat. The (christian satanist) owners will not talk, they brought somebody in today to view the place, we had a real argument, apparently my money is not good enough ! These are Austrians ! They have this natural evil.

Because of the rapefugees it is very hard to find a place. Who knows whats going to happen ? I don't know what to do, I keep searching and trying to get government help, but again, they now only help the rapefugees.

I feel betrayed, shattered, in my life, which has always been a real struggle, nothing ever works out right. I am fucked. And I am in my 40s. I am a video editor/animator who battles to find work, see: https://vimeo.com/128059912

I am so angry, but I do not know what to do now.

Ich habe angst !

 

dojufitz's picture

Europe is fucked until the new Adolf comes along and sorts things out.

lalita93's picture

They should add a little bit more, because I'm planning to move here hahah. I have a friend there who speaks arabic and I want to visit her. I've been even taking lessons to learn arabic by Skype with a new site, http://preply.com/en/arabic-by-skype. If you are interested in learning any language I recommend it.