Friday, Mar 09, 2007
gap between wages and house prices widening
Telegraph: Homes earning more than their owners
The average house price increased by £122 per day last month, which equates to over £40,000 per year. This is far in excess of the average salary, which is around £24,000. This kind of surge was last in the late 80's the Telegraph reports.
Posted by jellycaster @ 10:24 AM (127 views) Add Comment
13 Comments
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1. uncle chris said...
I've said it before and I'll say it again - not round here they ain't (Welsh Borders). If anything they have fallen slightly over the past year and I can point to several local instances where the registered sale prices have fallen since 2005.
2. george monsoon said...
hmm its a bit static around my area, they are not going up or down, but I would still need to be earning 45 grand + per year to be able to own a two up two down terraced mould pit.
3. Steve said...
Which just shows that we are never going to be able to buy a nice house and we to start focusing on other things.
4. Chiswickian said...
Oh great. Working lunch just did an article on this saying that the average house has 'earned' the owners more than they can earn themselves from their own salary. The calculations I think (I wasn't paying 100% attention, working at the same time) was that the average house earned somewhere in the region of £3.3k in the last month. Supposedly the average monthly wage is £2k. Then they applied tax to the wage and came in around £1.5k. Coming to the conclusion that your home earned you 2.x times what you earned through your wages.
Wonderful. Just the type of logic/thinking we like to see propogated !
And now they're recommending equity release on the back of this and the closing comment is jump on the ladder now before you really can't afford to. Unbelieveable !
Oh, I just realised, it's BBC isn't it. Should've known better really.
5. bidin'matime said...
The irony is that the people who write this stuff will read it in x number of months time (when the market has crashed) and say it was obvious that these prices were unsustainable - the question is why they havent got the balls to say that now...
6. maddison said...
Because so many people have egg on their faces from saying exactly that in 2006 oh and 2005,2004,2003,2002 after september 11 which was 2001 !!
7. Davros said...
Where do they get 'earning' from.
Until you sell it's all paper money. Once you've sold, what do you do? Buy another over inflated property or rent?
8. disgustedofyork said...
I noticed two papers today lead on a HPI story, the Telegraph leads on houses earn more than their owners , and the Express had some feel good HPI story as well. Usually the Telegraph will spin any housing news 'good' or 'bad' to either be the harbringer of doom, or last days of Pompii decadence. The Express seems to be celebrating the acceleration of HPI, and let all the usual suspects in the industry are wheeled out to say how well things are going and how utterly wrong the doom merchants are (again). The only mention of anything less than perfect was a passing nod about how inheritance tax was spoiling the party, and how the IHT was the problem needing fixing rather than silly house prices.
9. Davros said...
Incidentally, it's all very well pundits referring to 'doom merchants' as some sort of eccentric crackpots, but at the end of the day we're referring to the IMF, the Chief Economist of Morgan Stanley amongst others. These are major voices in economics and more importantly independant, not the spokes person of a chain of estate agents or property website.
Besides, how can you talk up a market, where the average house price is 6 times earnings? If someone had the inclination to buy and had the money, they would of by now. Those of us who realise it's a mistake, won't be swayed by the same of property propaganda.
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11. Madam said...
The housing market can only develope in two ways.
1. It will crash leaving many people shattered in serious debt. Think about all the 50 year mortgages!
2. House prices will continue to rise so that the next generation will be the first generation of a snowballing "developing country". A few will have and the rest will be living on the streets. Welcome back Victorian times!
Either way there will be loosers and an extremely depressed U.K.
Big shame on our present politicians and bankers especially since they are travelling the same route as the US and look at what has happened over there now!
12. daft boy said...
I can't understand why all houseowners don't just cease working and just stick their cash card through the letterbox and take out the income from the house each month. It would be so much better for the environment. No one seems to consider the obvious solutions to the problems these days.
13. Tangara said...
Homeowner should sell and retire somewhere nicer then the UK...
What I can't understand is why so many accept to owe so much to so few...
We should not complain, there are good reasons "not to buy"...