Jump to content
House Price Crash Forum

R.Evans

New Members
  • Content Count

    63
  • Joined

  • Last visited

About R.Evans

  • Rank
    HPC Poster
  1. Retail Prices Index. All items. December 1974 ~ 19.1 December 2011 ~ 239.4 +1,153.4% Average earning index (periods after July 2010 constructed from average weekly earnings) Deceber 1974 ~ 12.6 July 2010 ~ 141.0 November 2011 ~ 145.1 +1,051.6% While this suggests some erosion of real earnings over the period it ignores the benefit of lower direct taxation (and also, by the way, of 'in work benefits' such as tax credits that were not available in 1974) 1974/1975 Income tax basic rate ~ 33% (up to £4,500) National Insurance Class 1 employees contribution rate ~ 5.5% 2011/12 Income tax basic rate ~ 20% (up to £35,000) National Insurance Class 1 employees contribution rate (contracted in) ~ 12% Net average weekly earnings for a single (non aged) employed person (not contracted out) were therefore £360.95 at the end of 2011 compared to £29.35 at the end of 1974 (I've used National Insurance contribution rates from April 1975 as the present system started in that month and the previous flat rate plus graded rate system was more complex - the calculated weekly contribution is £1.61). Average weekly net earnings therefore increased by by 1,126.6% compared to the increase of 1,153.4% in the RPI over the same period. This demonstrates that average net earnings have broadly matched general inflation over the period in question. To have the equivalent of end 1974 net average weekly earnings a single employed person requires £367.87, just £6.92 (1.88%) less than current average net earnings.
  2. I started work in 1975 and was paid £17.10 a week for 40 hours. The lowest posssible (i.e minimum wage) rate for this work today is £104.00 i.e over 6 times more. It impossible to believe that in the UK anybody is paid today the same or a lower rate today than they were or would have been paid in 1975.
  3. That's quite an interesting read. I'm not convinced by their rental yields chart though!
  4. Lots of students rented council places when I was at college (late 70s early 80s). My first place was a council place (77). Nice big flat. £2.10 a week as I recall.
  5. That sounds familiar. Even the idea of a choice between buying or renting from was just fanciful then.
  6. Thankyou. It is true that I supposed borrowing of £200,000 at 4.5% on a repayment basis. I did not suppose anything other than that. Sure, if such borrowing was floating rate that would be a very significant risk position to carry and, for me, it would be much too risky. It may be that some SVRs have doubled in the past three years. I do not know if that is true for all lenders but it doesn't strike me as being entirely improbable.
  7. Thankyou. The initial post referred to 'a typical £200k 3 bed semi'. Although I'm not in Oxfordshire my experience of such houses is that they have invariably had more than enough space for a washing machine and for at least one, and usually more than one, car. I would not choose to run a car in the circumstances outlined but I'm sure this is a matter of preference. I do think a washing machine would likely prove to be more economical for such a family.
  8. Thankyou. I agree that £11,156.60 is not a massive amount but I maintain that it's more than adequate. I think your estimate for groceries is about right, possibly a tad on the low side. I'd allow at least £100 a week (5,200 a year) for that and I accept your point about school dinners. In Oxfordshire they are presently £2.10 a day so £2.10 * 5 * 3 * 40 weeks = £1,260 a year, giving a total of £6,460 on those items. I disagree with you about school uniforms. They are extraordinarily inexpensive now and tiny a fraction of the cost they were when I was at school many years ago. I agree that they may be regarded as a necessary outgoing but I think your allowance is much too high. Even allowing your £1,500 a year for scool uniforms leaves £3,196.60 a year for, let us say purely discretionary spending. People have very different preferences when it comes to spending their money and it's certainly not my or anybody elses business to tell people what to do with their free cash. In the situation described I would almost certainly prioritise some saving above the other things you suggest and in the position outlined I would be disappointed if I saved less than £100 a month and I would expect to save rather more.
  9. Ha ha I never cease to be amazed by the extraordinary ways people have of spoiling houses but I'd say the house in the picture was built that way and, while it won't have Robert Adam turning in his grave, it's hardly ugly.
  10. Thankyou. I appreciate the point you are making but, having just spent a few minutes reading through the first few pages of readers comments (a truly dispiriting exercise), it appeared to me that most of the comments were sympathetic and in favour of the existing arrangements.
×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.