Nationwide Chief Economist Can't Do Maths

[Colin]

Housing market 'treading water', says Nationwide

Mr Gardner calculated that someone earning the average salary, and saving 15% of their take-home income, would now take eight years to save enough for the typical 21% deposit on the average house.

They quote £161,183 for the average house. Average take home in 2008 was £1600 per month - it's shrunk since then.

If you do the maths he is at least 50% off the mark and the BBC let him get away with it.

With idiots like this running the banks and building societies it's no wonder we are in the sh1t!

[Bloo Loo]

Housing market 'treading water', says Nationwide

They quote £161,183 for the average house. Average take home in 2008 was £1600 per month - it's shrunk since then.

If you do the maths he is at least 50% off the mark and the BBC let him get away with it.

With idiots like this running the banks and building societies it's no wonder we are in the sh1t!

silly, you are forgetting the massive compound interest Nationwide are paying their savers.

[Lepista]

Housing market 'treading water', says Nationwide

They quote £161,183 for the average house. Average take home in 2008 was £1600 per month - it's shrunk since then.

If you do the maths he is at least 50% off the mark and the BBC let him get away with it.

With idiots like this running the banks and building societies it's no wonder we are in the sh1t!

He may be referring to a couple perhaps?

But anyway, what is 15% of gross income as a percentage of the average household discretionary income? I'm guessing it's way over 100%, i.e. it's unaffordable.

If you also take into account savings to buy your next car, your pension, rainy day money, then it's a non-starter.

Edited March 1, 2011 by Lepista