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'Pay outpaces house prices' in many areas

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http://www.bbc.co.uk/news/business-41244444

More than half of Britain has seen wages rise faster than house prices in the last 10 years, research by a mortgage lender has suggested.

Edinburgh and Birmingham are among the 54% of areas where pay has outpaced property prices since 2007, the Yorkshire Building Society found.

Yet the gap between wages and house prices has widened dramatically in other areas.

The building society suggested this had accentuated a north-south divide.

Across London and much of southern England, it has become "increasingly difficult for first-time buyers and those wanting to move up the housing ladder", said Andrew McPhillips, chief economist at the Yorkshire Building Society.

"However, the north of England, Wales and Scotland present a different picture entirely, with many places more affordable than they were before the credit crunch," he said.

"While some northern cities, such as Manchester, are less affordable than they were in 2007, in much of the north of England, Scotland and Wales, the gap between earnings and house prices is around a third of the average for London."

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hp72   

Is 2007 really a good benchmark for property prices?

In the southeast when I bought then (I know! I spent 10 years regretting it and working regularly 80 hours a week) it was 6-7 times joint salary. 

Why are the media espousing this level of cost / income multiple as a benchmark? 

FFS - let's get back to 3-4-5 x single income levels again. Then the economy can thrive (more?)

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2 minutes ago, hp72 said:

Is 2007 really a good benchmark for property prices?

In the southeast when I bought then (I know! I spent 10 years regretting it and working regularly 80 hours a week) it was 6-7 times joint salary. 

Why are the media espousing this level of cost / income multiple as a benchmark? 

FFS - let's get back to 3-4-5 x single income levels again. Then the economy can thrive (more?)

Good point, isn't it like saying the weather in March is the warmest in the year so far.

 

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Well house prices have risen 14% since 2007 ( Halifax house price index) so it's hardly surprising, especially as most of that rise is accounted for by London and the South East.

But, yeah, rather a favourable base year. 2011 and it wouldn't look so great.

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nome   

Re 2007 being the benchmark,... it's funny how everyone seems to conveniently forget/overlook the fact that that particular bubble , sorry, ''benchmark'' was only achieved thanks to years of irresponsible and fraudulent lending by the banks

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winkie   
48 minutes ago, Slimline said:

what total utter BS. They've doubled here since 2010!

That is why you need two full time salaries to buy one.;)

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2 hours ago, hp72 said:

Is 2007 really a good benchmark for property prices?

In the southeast when I bought then (I know! I spent 10 years regretting it and working regularly 80 hours a week) it was 6-7 times joint salary. 

Why are the media espousing this level of cost / income multiple as a benchmark? 

FFS - let's get back to 3-4-5 x single income levels again. Then the economy can thrive (more?)

They really do need to kill income multiples when lending to say 3 x joint salery as a max. Ashamed to say my girlfriend and I went 5 x joint in 2016 probably the peak. What plebs. Thanks to a recent promotion we are now at 4x still not comfortable with it and hammering chiselling the debt away at the rate of £10k a year.

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