Housing Crisis in London

Young home owners are a minority in London.

The average mortgage deposit for first-time buyers is now over £60,000 and according to a report from independent analyst Oxford Economics, property prices will continue to soar in the capital over the next seven years.

Recently published data from Greater London Authority reveal that almost twice as many Londoners in the 25 to 34 age group now rent from a private landlord than those who own a property, and the gap is rapidly rising.

This is the first time tenure has been broken down by age group. Paula Higgings, chief executive of Home owners Alliance, said:

“Buying in London is open only to those with wealthy relatives and people who win the Lottery.

“This is robbing a generation of any prospect into the housing ladder and it is incredibly unfair”.

Mortgage experts answer that there had also been an increase in the number of banks and building societies prepared to offer 90 per cent mortgages in recent months, but these are still only available to borrowers with spotless credit records.

It only helps those from a wealthy background.

While owner occupation in the capital has fallen to lowest level since the early Eighties, almost one in four all over the UK say they may be forced to leave their local area because the cost of housing is too high, an Ipsos MORI survey revealed. 

The proportion is twice as high among those living in London.

Don't call a cab, get the tube instead!

Tourists, clubbers and night workers will be able to get the tube back home until 2am.

The managing Director of London Underground (LU) Mike Brown, last week revealed plans to run extended services on Fridays and Saturdays to let people have more fun and boost the night economy.

Mr Brown said: “It will be a real benefit for London’s night-time economy, either for people working late or enjoying themselves. If you want to buy that extra meal, cup of coffee or pint of beer, why wouldn’t we want to encourage that?”.

Three lines will stay open until late from 2015 to make the city’s heart beat strongly: the Jubilee and the Victoria lines, that are the most modern and the Northern Line, the upgrade of which will terminate next year.

However, there are concerns regarding shifts’ negotiations and pay rise requests from the Union Bosses.

They also warned that the service could cut into vital maintenance time needed to keep the world’s oldest Underground system running.

Despite the success of the Olympics when the Tube ran at least one hour later every night and coped with record passenger numbers, in fact, LU was not built for a round-the-clock service.

According to Manuel Cortes, leader of the TSSA union, apart from maintenance works, there are other issues to be taken into considerations, like the health and safety of both staff and passengers.

Luckily, all the parts involved are willing to negotiate terms and conditions and make it happen.

Is London still in the EU?

The English Prime Minister wants a different European Union (EU), "less rigid and bureaucratic".

In his long-delayed speech in London on January 23, Mr Cameron declared he wants to renegotiate Britain’s relationship with the EU and for this reason he will give Britons an in/out say on the treaty if Tories win the election in 2015. 

In this case the national vote will be held by autumn 2017 at the latest.

David Cameron agrees with a European Union dedicated to free trade and competitiveness and wants to enhance intense cooperation on issues like tackling terrorism, but “decisions affecting the people of a country should be made by the Government of that country,” he said.

His speech divided the Coalition, while Labour said the Prime Minister had shown weaknesses by giving in to the eurosceptics, who finally see the opportunity for Britain to loosen its ties with the EU and try for a half-in-half-out status similar to Norway’s or Switzeland’s.

However, politicians all over the EU have made it clear that David Cameron could not have it both ways.

European Parliament president Martin Schulz said:”I find what Mr Cameron is doing very implausible”.

John Cridland, director-general of the CBI, said that the EU single market is fundamental to Britain’s future economic success, but the closer union of the Eurozone is not for this country. The CBI wants to work closely with government to get the best deal for Britain.

According to Chancellor of Exchequer George Osborne, Britain is tumbling towards a historic triple-dip recession because of the debts built up over many years and problems with the Eurozone, where UK exports most of its products, in recession.

High Street chains face the internet domain

On January 15, music giant HMV announced it was putting himself into administration after 91 years in the disc selling business.

The multinational retailing company joined a parade of High Street casualties, including Jessops, a chain of camera shops, and Blockbuster, which rents DVDs and computer games.

It has all happened in just over a week.

Shortly before Christmas even electrical retail chain Comet closed its 236 stores all over the UK after nearly 80 years in the business.

Is this the death of the High Street?

Probably not yet, however the reality strikes after Christmas and the competition from cut-price internet sites, along with high business rates, does not help the world of  mainstream electronics retailers.

The British Retail consortium has urged the Government to freeze the rise of 2.6% in business rates schedule for April, which it calculates would add £175 million to retailer’s costs.  Business rates are now higher than rents in some areas, and retails will struggle more and more if the Government does not act to curb this inexorable rise.

According to the Office for National statistics, the disastrous month means the retail industry has seen its worst year-on-year growth (0.3 per cent) since 1998.

Despite recessions and the devastating collapses of several UK retail chains, department stores grew sales 0.4 per cent, while online sales were up 1.6 per cent and grew to 10.6 per cent of all retail sales over the month. Music and video have moved online fastest for obvious reasons, followed by books and electrical goods.

Will the online shopping take over the world of retail at some point? We cannot answer right now.

However, retailers all over the UK know that they will face another challenging year.

It is 150 Years and is still running!

Source: www.google.com

Last Thursday marked the 150th Anniversary of the London Underground, which is also the first tube in the world.

On January 10, 1863 the first underground journey was made between Paddington and Farringdon on the Metropolitan Line. The vehicle was built by the Metropolitan Railway, a company formed to reduce congestion on central London roads and that served the capital until 1933.

At that time there were around 25,000 passengers a day using the Underground.

It now carries more than 1 million travellers a year, serves 270 stations and has 249 miles of track.

The ongoing upgrade programme, that was started in 2006, is one of the largest and most complex engineering projects in the world and will carry on for the next nine years.  

There have been major improvements to the system so far. Stations like Blackfriars, King’s Cross and Green Park have been rebuild and others will be renovated soon  (i.e. Tottenham Court Road and Victoria).

Capacity and service frequencies have been boosted on the Jubilee and Victoria Line and later in 2013 there will be higher frequency services on the Central line.

Transportfor London (TFL) was created in 2000 to replace the London Regional Transport and is the local Government body responsible for most aspects of the transport system both in London and in England.

London Underground plays a very significant role in most Londoners’ lives, not to mention the tourists.

Without the Tube, special events such as last summer’s Olympic and Paralympic Games would not have been the massive success that they actually were.

A wide range of celebratory events and activities will be held throughout 2013 to explore the Tube’s fascinating history.

For more information visit:

http://www.tfl.gov.uk/corporate/projectsandschemes/25979.aspx

Did you know? The word “Underground” and the rounded station logo first appeared in 1908.

Merry Christmas and Happy New Year!

My best Christmas wishes and Happy New Year to all my dear readers...

This is the end of the gap

London Overground’s Southern extension opened to rush-hour passengers two weeks ago, creating London’s first orbital surface railway.

The new link between Clapham Junction and Surrey Quays means passengers can avoid changing in central London and commuting is now quicker, easier and cheaper too.

The extension came just one month after London Overground celebrated its fifth birthday and at least four trains an hour in each direction now link the South-West of the capital with East London.

South Londoners can also enjoy a new range of journey options both East and West with quick connections to national Rail services to Gatwick and across South-East and South-West England.

According to Mike Brown, managing director of London Underground and London Rail, the Southern extension is the last piece in the jigsaw of the outer orbital route.

“If the Circle line is the equivalent of the North and South Circular roads, this is the M25 of rail,” he said.

London Mayor Boris Johnson, before boarding the new service for the first time said: ”The Overground is hugely popular. Trains are comfortable and air-conditioned. This has helped us mount our argument to continue the integration between the Underground and the Overground”.

The new 1.3Km stretch of line cost £75 million and most of it has been funded with support from the Department for Transport, while the Mayor and Tfl contributed £15 million to it.

Around 13 million passengers a year are expected to use the new rail link while forty-eight drivers and five support staff have been hired. This is surely good news in the current economic climate.

To find out more about London Overground, go to:
http://www.tfl.gov.uk/corporate/projectsandschemes/16224.aspx