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spyguy

Sunday Telegraph - Average Deposit £65,924

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So the average deposit is now, roughly, what you'd expect the average house to cost ~ 3 x average salary.

The housing market is just a few very rich people shuffling cash around.

90% of the rest of the housing market depends on FTB- its stuffed!

Seriously, what are the chances of selling up before 1)IR go up (probably a lot) not due to inflation but credtiros being reluctant to forward money to UK housing - think Greek bonds @ 90% 2) Another bank goes down.

GF friend works for 'old established' EA' - estates + lots of commercial rather than just residencial sales.

They've just shutdown the satellite offices and are trying to run a region from one office.

Frankly, there is so little cash they need to swing the axe again.

I notice that all EAs down the main drag were shut - that's 10am on Saturday and about 12 business.

Talk about being eaten by the internet.

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So the average deposit is now, roughly, what you'd expect the average house to cost ~ 3 x average salary.

The housing market is just a few very rich people shuffling cash around.

90% of the rest of the housing market depends on FTB- its stuffed!

Seriously, what are the chances of selling up before 1)IR go up (probably a lot) not due to inflation but credtiros being reluctant to forward money to UK housing - think Greek bonds @ 90% 2) Another bank goes down.

GF friend works for 'old established' EA' - estates + lots of commercial rather than just residencial sales.

They've just shutdown the satellite offices and are trying to run a region from one office.

Frankly, there is so little cash they need to swing the axe again.

I notice that all EAs down the main drag were shut - that's 10am on Saturday and about 12 business.

Talk about being eaten by the internet.

What is the average salary?

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What is the average salary?

Average Salary is around 25.7k according to the ONS. [However, over two thirds of UK taxpayers earn less than average salary]

Average salary increased by around 6.5k from 1996 to 2006, as the Average House Price was manipulated to rise by [our crooked government, and bankers etc] by a staggering 300%

Bank bailouts then locked those fraudulent profits in, by stealing from the rest of us.

Even if the average house price reverted to 65k again, the 1996 average house price, it would still significantly less affordable than it was back in 1996, as the cost of living has risen extortionately.

No point in working at all, if you are in the majority, two thirds, of taxpayers who earn less than average salary.

All in this together my fat hairy ****.......

Edited by Milton

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Funds sourced from the bank / landlord of mum and dad (living at zero cost or discount to market rents).

'The kids won't leave' I hear a lot.

Edited by Ash4781

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What is the average salary?

Depends what you mean by average...

This Is Money gives £25,900 as the average salary in 2010.

The Guardian, in a article dated 8th December 2010 , says " The median gross annual salary for full-time employees in the UK rose by just 0.3% to £25,879 in 2010, according to the latest Annual Survey of Hours and Earnings (Ashe), published today by the Office for National Statistics (ONS). Median gross full-time weekly earnings were £499, up 2.1% from 2009.

The median – a midpoint of a range of numbers – is considered a better measure of earnings than the average (the sum of a range of values divided by their number) as it avoids distortions caused by big salaries earned by a very small proportion of the workforce."

Median full-time weekly earnings for women were £439 in 2010 (=£22,828 p.a.), compared with £538 for men (= £27,976 p.a.).

I can't find the actual ASHE survey because the government websites are farking awful keep getting reorganised.

Figures aren't available yet for 2011, obviously.

So, based on the 2010 figures and according to my calculator, 3 x median salary is £77,637 and 3 x average salary is £77,700.

Therefore the average deposit is not far off 3 x average / median salary.

In 1985, when I first started looking at houses, the average salary was £11,691 and the average house price was £31,100, according to my researches some reasonably reliable figures on the internet. As it happened, I wasn't earning anything like £11,691, so didn't buy a house. That had to wait until I was married and the amount borrowed could be based on two incomes.

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Sorry, I forgot the link:

http://www.telegraph.co.uk/finance/personalfinance/borrowing/mortgages/8768615/Housing-deposits-rise-tenfold.html

Assuming you believe the research or not -all things housing need a pinch of salt -then it does indicate that only the very rich are trading houses.

You might be lucky and get some trickle down but chances are you are the 95% of the population who does not have 65K in cash.

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So the average deposit is now, roughly, what you'd expect the average house to cost ~ 3 x average salary.

The average salary now has little to do with house prices.

Now women are prepared to work full time just to pay twice as much for a house, it's household income that is the driver.

The first woman who signed up for a joint income mortgage, has ruined the life of millions of women and their children.

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The first women couple who signed up for a joint income mortgage, have ruined the life of millions ofwomen and their children

people

Fixed for you ;)

Edited by swankyman

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Average salaries are an increasing irrelevance nowadays regarding the ability to pay a mortgage . I never understand why lenders's multiples are based on salaries rather than disposable income. Since inflationary food, clothing, fuel and ancilliary prices are now a universal factor in available spending after paying for basics, bare salary levels for the majority are becoming a poor indicator of ability to cope with a mortgage.

Edited by VacantPossession

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The average salary now has little to do with house prices.

Now women are prepared to work full time just to pay twice as much for a house, it's household income that is the driver.

The first woman who signed up for a joint income mortgage, has ruined the life of millions of women and their children.

Well that rather depends on the individual's income, in the case of both men and women.

As I mentioned in my post above, even when average house prices were c. 3 times average earnings I didn't earn enough to buy even a one-bed flat in an area I'd have been safe. When I married, my husband couldn't have afforded a house big enough to bring up our planned children without my income in addition. By that time council / housing association housing was already difficult to get.

Historically, in families on low incomes the woman has very often worked. My paternal grandmother worked in the 1920s as her husband earned hardly anything, although they did have a tied house. A girl who lived over the road came in during working hours to mind the children.

Two of the major reasons for the classic fifties family of working father and stay at home mother, in the working classes as opposed to the middle classes, were good wages for men in industry and offices and good quality public housing at low rents. I wonder when we'll see that set of circumstances again.

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Average salaries are an increasing irrelevance nowadays regarding the ability to pay a mortgage . I never understand why lenders's multiples are based on salaries rather than disposable income. Since inflationary food, clothing, fuel and ancilliary prices are now a universal factor in available spending after paying for basics, salary levels for the majority are becoming a poor indicator of ability to cope with a mortgage.

You would if you were getting a bonus based on the larger amount of mortgage interest the borrower had to pay you.

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How much of this would be due to people selling, renting for a while and then jumping back in?

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Average salaries are an increasing irrelevance nowadays regarding the ability to pay a mortgage . I never understand why lenders's multiples are based on salaries rather than disposable income. Since inflationary food, clothing, fuel and ancilliary prices are now a universal factor in available spending after paying for basics, bare salary levels for the majority are becoming a poor indicator of ability to cope with a mortgage.

Thanks for highlighting that. I'm suprised it is not mentioned more on Hpc

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The average deposit is not £66k. Maybe in central London. Even in the south east if you buy a house for £200k with a 20% deposit is still only £40k.

No, I do believe this figure. Remember, this is not just FTBs.

Consider:

  • A FTB couple buy a £100,000 house in 2001, 5% deposit, I/O mortgage.

  • Sells it for £160,000 in 2010 to a (mug) FTB, who has a 20% deposit of £32 (by some miracle / BoMaD).

  • First couple takes their £65,000 equity and puts it down on their overpriced £320,000 house. Big deposit to include.

I suspect this is happening many times over, for bigger and bigger values. And remember, not all people took out interest only mortgages, it just made my calculation easier.

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Who the heck (except the rich!) has 65k available for a deposit? That's like what, 3x the average annual income-ish?

Say you can save 5k per year, It'd take 10+ years to save up for...how can prices be sustained at current levels if it takes that long to save up for it!

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This is a revealing statistic from the Scottish Government regarding Owner Occupiers on Low Incomes:

There are an estimated 145,000 households in Scotland who own their houses (either outright or with a mortgage) and have incomes below 6,000 per annum.

45% of all households with incomes below 6,000 are owner occupiers.

Scotland has proportionately fewer low-income householders who are owner occupiers than the rest of the UK.

So nearly half of these owner occupiers are earning less than 6k per annum. Nearly 70,000 homes.

And these 145,000 households are better off, as a proportion, than owner occupiers in the UK as a whole!!!

It shows how the effect of benefits, on income, are artificially propping up the figures.

Whilst hard working average earning taxpayers, now on 26k per annum have been unable to afford a shoebox for a decade.

Whats the point in working?

Edited by Milton

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This is a revealing statistic from the Scottish Government regarding Owner Occupiers on Low Incomes:

So nearly half of these owner occupiers are earning less than 6k per annum. Nearly 70,000 homes.

And these 145,000 households are better off, as a proportion, than owner occupiers in the UK as a whole!!!

It shows how the effect of benefits, on income, are artificially propping up the figures.

How many of them are on pensions? Is there an age breakdown?

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How many of them are on pensions? Is there an age breakdown?

71% of low-income owner occupiers were aged over 60, 32% aged over 75.

Fewer than one in 5 (19%) of low-income owner occupied households had an adult member in employment.

8% of low-income owner occupiers do not have a bank account and 43% have no savings.

Edited by Milton

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Two of the major reasons for the classic fifties family of working father and stay at home mother, in the working classes as opposed to the middle classes, were good wages for men in industry and offices and good quality public housing at low rents. I wonder when we'll see that set of circumstances again.

When we get another big war that kills off a substantial proportion of the FTB population.

Be careful what you wish for!

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  • 285 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%



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