Jump to content
House Price Crash Forum
KickThemInThePant

Houses Now Cost 18 X Earnings!

Recommended Posts

i can get the link to work. any chance of a cut and paste.

im hoping to see more than a "wow !! arent house prices high" half gleeful report. im looking for some crisis reporting and some action towards getting some ideas together to tackle it.

i wonder if thats whats in the story ?

Share this post


Link to post
Share on other sites

There you go fred

Pressure grows on region's property

Kathryn Moore

HOUSE prices in the region are as much as 10 times the average salary as property inflation outstrips pay rises, according to a new report.

The average property in Britain now costs six times the average salary and homes are more than 70 per cent more expensive in relation to salaries than in 2000.

But Yorkshire outstrips the national average and in some areas of the county homebuyers are under even more pressure. In Harrogate the average house costs 10 times more than the average salary. In York they are 7.5 times higher. In areas like Hull, homes still cost more than four times average local pay.

Management consultancy firm Hay Group, which carried out the research, warned that people's ability to afford property in Britain was being eroded more quickly than previously thought.

The report's author, Ben Frost, said: "There's no escaping the fact that wage levels are simply not keeping pace with house price inflation anywhere in Britain... buying a house based on borrowing three times your salary is definitely a thing of the past."

He said that unless prices came down significantly employers would come under pressure to increase salaries in house price hotspots.

A spokesperson for Yorkshire Building Society urged buyers to be realistic: "If you work in Leeds or York, for example, where house prices are expensive, it is important buyers remain realistic and perhaps look outside their preferred areas."

The report, which looked at changes in average house prices and salaries in Britain between 2000 and 2005, found the North East has also suffered, with homes now 81 per cent more expensive in relation to wages in the region

The South West is the hardest-hit. In Richmond, south-west London, the average house price is 18 times above the average salary for the area. In London and the South East the average home costs seven times average salaries, with house price growth outstripping salary growth by 70 per cent and 65 per cent respectively.

In Scotland, people need 3.6 times their salary to get on the property ladder. In Wales, the cheapest region, they need to borrow 3.5 times their pay.

Skipton Building Society commented: "Rising property prices, whilst basically good for the person who already owns a home, are a huge obstacle for first-time buyers. Buying with friends or asking parents to act as guarantors for the mortgage are areas worth considering. Overall, Skipton believes in responsible lending – it may not always be in the borrower's best interest to get a large mortgage."

22 September 2005

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 302 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



×
×
  • 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.