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First-Time Buyers Paying £173,000

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UK average house prices increased by 1.9% over the year to February 2013, the Office for National Statistics has reported.

It says the “average UK mix-adjusted house price” stood at £233,000 in February. Annual house price rises were driven by a 5.9% rise in London prices.

Excluding London and the South-East, UK house prices rose by just 0.6% in the year to February and stood at £186,000.

The ONS puts the average London house price at £395,000 and in the North-East at £143,000. Average house prices are £125,000 in Northern Ireland, £177,000 in Scotland and £160,000 in Wales.

The ONS says that UK first-time buyers paid an average of £173,000 for their property in February. The average price paid by a home mover was £269,000.

The average price of a new home in February was £230,000, less than the average of £234,000 for a pre-owned home.

As usual, the ONS statistics are completely at odds with those of the Land Registry, which excludes the price of new homes.

The Land Registry reports that the average price paid by all types of buyers for a property in England and Wales during February was £162,606 – lower than the ONS quotes for first-time buyers alone.

So who can actually afford these prices? Can you afford a grand a month in just mortgage payments?...no counting for living costs, depreciation, fees, life...

Crazy.

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So who can actually afford these prices? Can you afford a grand a month in just mortgage payments?...no counting for living costs, depreciation, fees, life...

Crazy.

payday loans, credit cards, private loans from friends and family, fraud...two jobs?

Actually lets say you earn 25k..thats at least 1.6k after tax as a wild estimate...sounds reasonable you think, ok now add on fuel if you drive, commuting costs, travel fare, bills and food...begins to look a bit tight... :huh:

Edited by JustAnotherProle

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No idea how anyone with a joint salary below 50k can even remotely think they can afford a 173k house without a huuuuge deposit.

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So who can actually afford these prices? Can you afford a grand a month in just mortgage payments?...no counting for living costs, depreciation, fees, life...

Crazy.

Rent out the living room, garden shed or any other spare space available. ;)

Sleep+in+Tub.jpg

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No idea how anyone with a joint salary below 50k can even remotely think they can afford a 173k house without a huuuuge deposit.

But on 50k a year, you should have a huge deposit anyway

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But on 50k a year, you should have a huge deposit anyway

2 x £25k after tax say < £3400 a month

Unless you're living rent free at Mum & Dads I'd argue that affording to save £1000 a month depends on your circumstance.

Edited by PopGun

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2 x £25k after tax say < £3400 a month

Unless you're living rent free at Mum & Dads I'd argue that affording to save £1000 a month depends on your circumstance.

Without turning it into one of 'those' threads, I'd argue its very possible. Obviously I understand this would be more difficult in London/SE but that's a choice too.

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Some of the figures around are not that far from what we earn/spend and it is achievable, so long as you don't go wasting too much free cash. We don't live the life of a hermit but you have to be sensible about things like new cars, mobile phones, SKY TV, expensive meals out, etc.

If we ever look to buy we're also going to be 'saving' (Don't forget it's dead money!!) £600/month in rent that can go towards that mortgage payment.

Things can change quickly though. In the last six years I've been made redundant twice and that comfy monthly wage overnight becomes £70/week or however much it is!

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Where are all these £25,000 per year jobs?

and what do single people do for housing these days?

I suppose it depends what line of work you're in as to what you're target salary would be. I wouldn't class £25,000/year as that high personally but I imagine any job around that salary would be looking for relevant experience and/or qualifications.

The question about single people is a valid one. I can't imagine too many single people can even start thinking about saving for a house so they probably look to rent a room, house share or, if they have any deposit funds available, buy a small place. Certainly not the £173,000 house quoted.

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Where are all these £25,000 per year jobs?

Everywhere? There are literally millions of them with anything vaguely skilled paying that much. The chances are that over a half of jobs done by males in full time employment pay more than that.

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According to that table, the average male in full time employment grosses £28,400. So yes, likely over half of them are over 25k, and slightly under half are under that.

Yes, as I'm sure Monger knew too but that's the evidence. FT male sample is about 10 milliom,people, so 5 million men earning over 28k, let alone 25.

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So who can actually afford these prices? Can you afford a grand a month in just mortgage payments?...no counting for living costs, depreciation, fees, life...

Crazy.

THE reason we are NEVER going to recover ----

THE reason the UK is b*ggered --

UNLESS & UNTIL the

"average house price" is 3 x the "average" annual income --

WHICH - INCIDENTALLY - is under £20k....

i.e. The "average house price" = no more than £60k.

Edited by eric pebble

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Everywhere? There are literally millions of them with anything vaguely skilled paying that much. The chances are that over a half of jobs done by males in full time employment pay more than that.

Not in rural areas. Also, the cost of housing would 'normally' link to non-skilled workers pay too (at the low end). Their work is necessary, and shelter is a requirement for their labor.

besides..

The average male salary is not the same as the average male 'FTBer' salary (or indeed the average female FTBer salary, also required under this scenario).

A 55 year old, earning his peak lifetime salary tends to skew the figures higher than the average 23 year old salary. Not to mention the distortion caused by the occasional banker/footballer on £100,000 a week.

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Ideal for first time buyer....

Whilst I agree a first time buyer is not going to be looking for an 'Average' house, It seems that EA's at least seem to regard similar to the above as ideal first time buyer fodder.

In all my talks with friends and colleagues it seems that most of them got their first property for about 1.5x to 2x their wage, this was a spread from about 1992 to 1998, a chap who got his place in 2000 had to spend nearly 2.5x. (I should add none had to live on a council estate in an ex-council house similar to the above)

I look back at 4th year apprentices buying 30K houses in reasonable areas...Probably never going to happen again.

I'll leave it to the number crunchers to work out what two early 20 somethings earn now and how far out of kilter everything is now if the above is a first time buyer property price.

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Not in rural areas. Also, the cost of housing would 'normally' link to non-skilled workers pay too (at the low end). Their work is necessary, and shelter is a requirement for their labor.

besides..

The average male salary is not the same as the average male 'FTBer' salary (or indeed the average female FTBer salary, also required under this scenario).

A 55 year old, earning his peak lifetime salary tends to skew the figures higher than the average 23 year old salary. Not to mention the distortion caused by the occasional banker/footballer on £100,000 a week.

I agree and the 55 year old would be earning at their peak and should if had any sense paid for their house in full.....these are the exact people who are purchasing the old FTBer property up to rent to what used to be first time buyers aged mid 20s who are now having to pay big rents to them and are unable to save.

Win Win for them.....lose lose all the way for the FTBer without the help of bank of mum or dad. ;)

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I agree and the 55 year old would be earning at their peak and should if had any sense paid for their house in full.....these are the exact people who are purchasing the old FTBer property up to rent to what used to be first time buyers aged mid 20s who are now having to pay big rents to them and are unable to save.

Win Win for them.....lose lose all the way for the FTBer without the help of bank of mum or dad. ;)

Nope. The average UK worker's wages peak in their early 30s.

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Not in rural areas. Also, the cost of housing would 'normally' link to non-skilled workers pay too (at the low end). Their work is necessary, and shelter is a requirement for their labor.

besides..

The average male salary is not the same as the average male 'FTBer' salary (or indeed the average female FTBer salary, also required under this scenario).

A 55 year old, earning his peak lifetime salary tends to skew the figures higher than the average 23 year old salary. Not to mention the distortion caused by the occasional banker/footballer on £100,000 a week.

So you're happy to use the data as evidence but only the bits which back-up your argument?

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  • 238 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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