Monday, Oct 15, 2007
DCLG - average house price in UK stands at £219,528
BBC News: House Price inflation cooling off
What is the average income of a FTB? I hear £23k is approx the average wage in UK, let's say an average couple brings in £40k, that means both working full-time for 25 years to pay-off a mortgage almost 6 times their combined income to buy an average house! Sustainable - I think not.
Posted by c'mon correction @ 01:28 PM (640 views) Add Comment
8 Comments
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1. Yorkshireman said...
Sustainable - definitely NOT. Ridiculous - definitely YES. If this is cooling off, then it needs to get very cold indeed before any of my children can or will try to buy a house. Who wants their partner to work for the next 25 years just to benefit the bank ?
2. dohousescrashinthewoods said...
Interesting that the BEEB aren't spinning this as rising prices. Change of direction from the master?
3. enuii said...
Second most popular post on BBC HYS on the subject means lots of people agree with the following quotation:-
'Not so long ago houses were affordable on ONE basic income (a mortgage of 3 times the average salary). Now a basic 3-bed detached in middle England costs about £270k. A 90% mortgage equates to FOUR times COMBINED salary of TWO people on £30k EACH. Now husband and wife BOTH have to work for the SAME living standard their parents had.
This has been a carefully engineered scam by the banks and government - the ONLY beneficiaries in this. More interest and more tax! Of course prices must fall!'
4. rocket robbie said...
Enuii
Why would first time buyers buy a three bed detached home? Surely they would buy a flat or a 2 bed attached house then they could afford it easily.
Where else other than London is a three bed detached house worth £270k?? I live in the south east and i have bought a four bed bunaglow in April for £215k in a very nice area.
5. david20040_0 said...
House prices rise 0.5%, OK that isn't that amazing but it is winter, I seem to remember house prices rising by that amount last year then booming again in the spring.
6. enuii said...
Rocket Robbie it is a QUOTE, I personally bought my house for 3x my then pitiful salary 20 years ago and I am still stuck in it. The quote was the second most voted one on the BBC's have your say thingy me bob which is an illustration of public/popular sentiment and not a generalisation on what todays First Time Buyers can or cannot afford. Anyway as I posted yesterday a developer near me is building 4 bedroom detached houses on a postage sized footprint of twenty two square feet, I suggest you demolish you bungalow and redevelop the plot and retire on the proceeds.
7. happyrenter said...
No spring boom David, most likely a spring bust
Until a couple of months ago, I'd have chosen the moniker 'reluctant renter' having sold up beginning of 2006 and seen some properties (real ones, not market stats) go for over asking as I looked for something to buy
for the last 4 months I've seen local market stagnation turn into dipping asking prices *across* the board (real ones in agents windows, not average ones on websites), and I fully expect the next few months to turn into a real fall as those who have to sell (builders, developers, amateur BTLs etc) have to really drop prices to make anything go. Next spring is going to be worse as the wannabe sellers join in along with the post Xmas repos.
There is no support for this market until FTBs get back in - 3.5x average earnings is probably where the crash will settle over the next 3-4 years, just like it did last time in the early 90s
8. wiltshire said...
David, is the driving season in the US over yet?