Realistbear Posted June 9, 2010 Share Posted June 9, 2010 (edited) http://uk.biz.yahoo.com/09062010/389/london-best-place-live.html Wealth According to the report, Londoners earn the highest average income at £620 per week (£32,240 per annum per household). London also showed the widest spread between lowest and highest incomes: the highest 10 per cent of households had incomes of £820 a week or more (so at least £42,640 per annum), compared with the lowest 10 per cent whose income was just £460 or less (so £23,920 or less per annum). By contrast, earners in the North East work for the lowest average income in the UK, taking home just £400 a week (£20,800 per annum). Only 10 per cent of households in the North East had net incomes of £480 a week or more (£24,960 per annum). 32.2k per annum does explain why prices are well over 250k on average in London. It also explains how some London prices are twice, three times that amount when you consider the very top earners are taking home an astronomical 42.6k per annum! Now I understand--silly me, there I was thinking houses in London and the SE were unaffordable. (Puts on Basil Fawlty disdain for oneself) Kerr, kerr..... But hang on, if the average high earners are earning 42.6k that means that if they get a 5 X income loan they can really only afford something LESS than 250k which means......that house are a bit dear? Edited June 9, 2010 by Realistbear Quote Link to comment Share on other sites More sharing options...
Timak Posted June 9, 2010 Share Posted June 9, 2010 Either those figures are wrong or everyone I know who works in London is lying about their income! Quote Link to comment Share on other sites More sharing options...
pie-eater Posted June 9, 2010 Share Posted June 9, 2010 Do those figures include the mega earners? The bankers on 250k - 5m will severely skew the numbers. Quote Link to comment Share on other sites More sharing options...
Jin Posted June 9, 2010 Share Posted June 9, 2010 Do those figures include the mega earners? The bankers on 250k - 5m will severely skew the numbers. They should skew the numbers higher - but they don't seem to be do they. Those salary numbers aren't overwhelming when you consider house prices - there's a severe disconnect between earnings and prices. Quote Link to comment Share on other sites More sharing options...
Mikhail Liebenstein Posted June 9, 2010 Share Posted June 9, 2010 (edited) They should skew the numbers higher - but they don't seem to be do they. Those salary numbers aren't overwhelming when you consider house prices - there's a severe disconnect between earnings and prices. The thing I don't get is that I know loads of people earning between £50k and £140k, I don't quite understand why the averages aren't actually higher in London. Most IT Consultants, Enterprise Sales Execs, Non Partner Lawyers and relatively Junior bankers will be somewhere in this range - all of them paying disproportionately large amounts of tax. I wonder if the figures are skewed downward by tax evasion by business owners, plumber, taxi drivers, and perhaps lower earnings by part timers. I forgot to add QUANGOCRATS, Government Special Advisers and Senior Council Officials. Edited June 9, 2010 by Mikhail Liebenstein Quote Link to comment Share on other sites More sharing options...
pie-eater Posted June 9, 2010 Share Posted June 9, 2010 They should skew the numbers higher - but they don't seem to be do they. Those salary numbers aren't overwhelming when you consider house prices - there's a severe disconnect between earnings and prices. I guess the mega earners are less than 1% of the employed in London. I earn over the average, and my wife more still. We still could only afford to buy a 2 bed flat in an average area in zone 3. Mad that if we were on the dole, we would qualify for a 2 bed in a prime area for free. If we had 'points', of course. Quote Link to comment Share on other sites More sharing options...
yellerkat Posted June 9, 2010 Share Posted June 9, 2010 According to the report, Londoners earn the highest average income at £620 per week (£32,240 per annum per household). Per household? Sounds low. Quote Link to comment Share on other sites More sharing options...
porca misèria Posted June 9, 2010 Share Posted June 9, 2010 Do those figures include the mega earners? The bankers on 250k - 5m will severely skew the numbers. Not the percentile points. Sure, it would skew the average within the top 10%, but not the 10% point itself. Quote Link to comment Share on other sites More sharing options...
pie-eater Posted June 9, 2010 Share Posted June 9, 2010 Not the percentile points. Sure, it would skew the average within the top 10%, but not the 10% point itself. True. Depends on how the numbers are crunched. Quote Link to comment Share on other sites More sharing options...
the flying pig Posted June 9, 2010 Share Posted June 9, 2010 (edited) The thing I don't get is that I know loads of people earning between £50k and £140k, I don't quite understand why the averages aren't actually higher in London. Most IT Consultants, Enterprise Sales Execs, Non Partner Lawyers and relatively Junior bankers will be somewhere in this range - all of them paying disproportionately large amounts of tax... nah, an average of £32k per household sounds about right to me. sure, there must be a few hundred thousand households who earn more than that,but many millions who earn a good bit less. Edited June 9, 2010 by the flying pig Quote Link to comment Share on other sites More sharing options...
pilchardthecat Posted June 9, 2010 Share Posted June 9, 2010 By contrast, earners in the North East work for the lowest average income in the UK, taking home just £400 a week (£20,800 per annum). Only 10 per cent of households in the North East had net incomes of £480 a week or more (£24,960 per annum). Does that include tax credits? Quote Link to comment Share on other sites More sharing options...
Kazuya Posted June 9, 2010 Share Posted June 9, 2010 1995, the last time house prices made sense in London. Quote Link to comment Share on other sites More sharing options...
Henrik Posted June 9, 2010 Share Posted June 9, 2010 NET income. To get 620 net per week, you'd have to be on 44k pre-tax according to http://www.thesalarycalculator.co.uk/salary.php Quote Link to comment Share on other sites More sharing options...
pie-eater Posted June 9, 2010 Share Posted June 9, 2010 NET income. To get 620 net per week, you'd have to be on 44k pre-tax according to http://www.thesalarycalculator.co.uk/salary.php About right, according to my pay slip. Quote Link to comment Share on other sites More sharing options...
DeepLurker Posted June 9, 2010 Share Posted June 9, 2010 The thing I don't get is that I know loads of people earning between £50k and £140k, I don't quite understand why the averages aren't actually higher in London. Most IT Consultants, Enterprise Sales Execs, Non Partner Lawyers and relatively Junior bankers will be somewhere in this range - all of them paying disproportionately large amounts of tax. I wonder if the figures are skewed downward by tax evasion by business owners, plumber, taxi drivers, and perhaps lower earnings by part timers. I forgot to add QUANGOCRATS, Government Special Advisers and Senior Council Officials. Maybe you forget that we all tend to mix with people much like ourselves, which always skews our perceptions? Amongst all the people that you know, how many are cleaners, bus drivers, parking attendants, supermarket shelf stackers? Quote Link to comment Share on other sites More sharing options...
PropertyGuru Posted June 10, 2010 Share Posted June 10, 2010 average is not median Quote Link to comment Share on other sites More sharing options...
Mr Yogi Posted June 10, 2010 Share Posted June 10, 2010 NET income. To get 620 net per week, you'd have to be on 44k pre-tax Or a plumber working three days a week... Quote Link to comment Share on other sites More sharing options...
Henrik Posted June 10, 2010 Share Posted June 10, 2010 Or a plumber working three days a week... very true, but then the problem is that you can't easily use the money to get a mortgage Quote Link to comment Share on other sites More sharing options...
Roseland69 Posted June 10, 2010 Share Posted June 10, 2010 Or a plumber working three days a week... There's an oxymoron in there somewhere... if my experience of London plumbers is anything to go by... Quote Link to comment Share on other sites More sharing options...
Tiger Woods? Posted June 10, 2010 Share Posted June 10, 2010 The thing I don't get is that I know loads of people earning between £50k and £140k, I don't quite understand why the averages aren't actually higher in London. Most IT Consultants, Enterprise Sales Execs, Non Partner Lawyers and relatively Junior bankers will be somewhere in this range - all of them paying disproportionately large amounts of tax. I wonder if the figures are skewed downward by tax evasion by business owners, plumber, taxi drivers, and perhaps lower earnings by part timers. I forgot to add QUANGOCRATS, Government Special Advisers and Senior Council Officials. What I think you are missing is the fact that you probably mix with people much like yourself. Wealthy people often have a skewed perception of what others earn because their friends and associates earn the same. I wonder if it is one reason why the bankers were able to let things get as far out of hand as they did - they just didn't realise (at a gut level) how little most people earn and what that means? My circle of UK friends, Oxbridge types, earn a huge amount on average. I'm now living in a part of Australia where, apart from the doctors, almost everyone I meet is paid a pittance. It affects your perceptions. Quote Link to comment Share on other sites More sharing options...
guitarman001 Posted June 10, 2010 Share Posted June 10, 2010 What sounds about right to you for a good wage? Friend of mine on £35k working as a mechanical engineer at a brewery up here in Scotland, but is adamant on going into the oil biz to rake in more cash - not sure if that's a good career move right now, but it got me wondering if that sort of salary was really enough. Probably not when you considered his huge mortgage on his flat and kid to take care of. His ethos was that there's money to be made and that if you don't screw somebody else, they'll screw you for the money I found myself half agreeing, half aghast. Quote Link to comment Share on other sites More sharing options...
Colin Posted June 10, 2010 Share Posted June 10, 2010 http://uk.biz.yahoo.com/09062010/389/london-best-place-live.html 32.2k per annum does explain why prices are well over 250k on average in London. It also explains how some London prices are twice, three times that amount when you consider the very top earners are taking home an astronomical 42.6k per annum! £600 is pathetic. This equates to £30k which in turn is £2k per month take home. YOU CAN BARELY LIVE ON £2k per month in the South East! AND THESE ARE AVERAGE INCOMES! This country is well and truly BORKED! Quote Link to comment Share on other sites More sharing options...
Rare Bear Posted June 10, 2010 Share Posted June 10, 2010 The average income does not buy the average house. Never did, never will. Quote Link to comment Share on other sites More sharing options...
Bloo Loo Posted June 10, 2010 Share Posted June 10, 2010 Either those figures are wrong or everyone I know who works in London is lying about their income! everyone earns 100K dontchaknow Quote Link to comment Share on other sites More sharing options...
Bloo Loo Posted June 10, 2010 Share Posted June 10, 2010 £600 is pathetic. This equates to £30k which in turn is £2k per month take home. YOU CAN BARELY LIVE ON £2k per month in the South East! AND THESE ARE AVERAGE INCOMES! This country is well and truly BORKED! you can easily live on 2K take home. parrently the average Northern Income is £400 per week TAKE HOME. or is that per household too? Quote Link to comment Share on other sites More sharing options...
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