Damien

No, young people cannot get onto the housing market without either having a really high relative salary and/or a significant lump sum from elsewhere. The average salary in London across all age groups is about £34,000.

The average house or apartment in London is increasing far quicker than income increases. Even if a young person was to save as much as they possibly could they would still be falling behind.

Personally I don't understand the economics well enough to know why this isn't a bubble. Coren's advice is not really workable because young people need jobs but it may come about anyway because the workers will be priced out of London and the surrounding areas. It's not even as if rents are relatively stable because they're not either.

Quite what investors and the Government think the long-term consequence of this will be is not clear to me but the investors at least think it must be sustainable otherwise they would be pulling their money out....