Jump to content
House Price Crash Forum
Sign in to follow this  
The Masked Tulip

90% Of Houses Unaffordable For Those On Average Wage

Recommended Posts

http://www.northamptonchron.co.uk/news/local/fewer-than-four-per-cent-of-homes-in-south-northamptonshire-are-affordable-for-first-time-buyers-1-5612284

96% round our way :lol::lol::lol::lol: ( He laughs insanely ).

A quote from that article:

"“Young people are working hard and doing their bit. Now the government has to meet people halfway and increase the supply of affordable homes - not the supply of credit - or the prospect of a home of their own will slip even further out of reach for future generations.”"

SOMEONE GETS IT !!!!!!

Edited by TheCountOfNowhere

Share this post


Link to post
Share on other sites

silly thread, house prices are irrelevent when the cost of getting mortgage is near 0%...well for some lucky FTBS, 20% of the money they borrow is cost free....for now.

Course, clever city Brains are working out ways to securitise 100% interest free mortgages and pay themselves 3% commission and pension funds the holy grail of 9% returns...Im sure there is an equation they have to make all that work properly.

Share this post


Link to post
Share on other sites

New housing estate of 60 homes on outskirts of my village in rural Devon.

Mix of normal unaffordable and affordable housing

Gross median average salary for the county is £22.5k

Unaffordable housing released first at prices of £320k and £420k with HTB - a steal at just 15-20 x average salary

Affordable housing to be released at £250k - a steal at 10 x average salary

New build prices match the prices of the existing stock

Salaries clearly need to rise.

Share this post


Link to post
Share on other sites

This is te correlation to the scarcity of planning permissions granted in the area - nothing else.

It is a correlation to current policy of enforcing maximum gearing on all new property borrowing.

If 5 million new homes were built tomorrow they would be priced at same gearing we have today.

There is no normal market at work here.

When interest rates rise there will be new policy to maintain that gearing (mortgage interest relief, state backed long term fixed rate etc).

I can only see some major currency catastrophe altering this now - until Gen Y sit at the head of the policy table and unleash a couple of decades of frustration on asset holders.

Share this post


Link to post
Share on other sites

Clearly it is average wages that need to revert to the mean historic relationship with average house values.

Can you see what it is yet?

This.

The problem isn't 'house prices' at all.

It's 30 years of falling wages, coupled to China joining the WTO in 2001.

Solution is to raise wages - which is what'll happen next. If it doesn't there will be civil wars as in mid-east.

One can see from the right wing's attempts to stir up racial hatred (GO HOME vans, Roma steal babies, HMRC raids in Chinatown etc etc ) that the ruling elite and their sponsors would prefer civil war.

Share this post


Link to post
Share on other sites

....but, but affordable houses that are built as affordable become unaffordable when re sold.....like council housing sell off at an discount in some places......some of the ex council houses are bigger better and in better places than the stuff they are building today, hoping someone will purchase them knowing very well they are unaffordable for most. ;)

Share this post


Link to post
Share on other sites

This.

The problem isn't 'house prices' at all.

It's 30 years of falling wages, coupled to China joining the WTO in 2001.

Solution is to raise wages - which is what'll happen next. If it doesn't there will be civil wars as in mid-east.

One can see from the right wing's attempts to stir up racial hatred (GO HOME vans, Roma steal babies, HMRC raids in Chinatown etc etc ) that the ruling elite and their sponsors would prefer civil war.

No good to the people without a job......lower living costs would be better. ;)

Share this post


Link to post
Share on other sites

No good to the people without a job......lower living costs would be better. ;)

That's the bit isn't it.Wages were always going to fall when 2 billion low paid workers entered the world workforce.Nothing wrong with that as we could expect multi decade deflation.So with deflation at -3% a year and steady wages everything fine.

The top 1% though own assets,not labour and that is a disaster for them and their banking buddies with their leverage that needs inflation to work.

So we got the elite opening up the workforce and home markets to the world,but made sure they themselves got the benefit.

The only way you can make this work in the short to medium term is to get everyone in huge debt and make sure cash savings get stolen by stealth.The debt slaves try to keep going and going as long as they can.

We are starting to see though the outcome of this.People just decide not to bother working.At least not for anyone else.Far better to go and dig your allotment etc.

Share this post


Link to post
Share on other sites

This is te correlation to the scarcity of planning permissions granted in the area - nothing else.

After a quick Google there appears to be a £100k variation in price for the same house design by a particular builder in different parts of the country. That may be land values. But I have a feeling that there is an opportunity to take a large profit on each unit in the new estate in my village courtesy of local house prices, which reflect the desirability for second homes.

Share this post


Link to post
Share on other sites

This.

The problem isn't 'house prices' at all.

It's 30 years of falling wages, coupled to China joining the WTO in 2001.

Solution is to raise wages - which is what'll happen next. If it doesn't there will be civil wars as in mid-east.

One can see from the right wing's attempts to stir up racial hatred (GO HOME vans, Roma steal babies, HMRC raids in Chinatown etc etc ) that the ruling elite and their sponsors would prefer civil war.

wot ?

Share this post


Link to post
Share on other sites

That's the bit isn't it.Wages were always going to fall when 2 billion low paid workers entered the world workforce.Nothing wrong with that as we could expect multi decade deflation.So with deflation at -3% a year and steady wages everything fine.

The top 1% though own assets,not labour and that is a disaster for them and their banking buddies with their leverage that needs inflation to work.

So we got the elite opening up the workforce and home markets to the world,but made sure they themselves got the benefit.

The only way you can make this work in the short to medium term is to get everyone in huge debt and make sure cash savings get stolen by stealth.The debt slaves try to keep going and going as long as they can.

We are starting to see though the outcome of this.People just decide not to bother working.At least not for anyone else.Far better to go and dig your allotment etc.

Nice.

Share this post


Link to post
Share on other sites

This.

The problem isn't 'house prices' at all.

It's 30 years of falling wages, coupled to China joining the WTO in 2001.

Solution is to raise wages - which is what'll happen next. If it doesn't there will be civil wars as in mid-east.

One can see from the right wing's attempts to stir up racial hatred (GO HOME vans, Roma steal babies, HMRC raids in Chinatown etc etc ) that the ruling elite and their sponsors would prefer civil war.

Crap.

If the banks keep interest rates, lending multiples and LTV at the same levels, people will be just as poor and house prices will rise.

Share this post


Link to post
Share on other sites

As always the price is not set by the cost of the build.

Instead the price is set by what people are willing to pay (and borrow)

We have a loan shark for a chancellor.

We can't expect anything else really.

Share this post


Link to post
Share on other sites

This.

The problem isn't 'house prices' at all.

It's 30 years of falling wages, coupled to China joining the WTO in 2001.

Solution is to raise wages - which is what'll happen next. If it doesn't there will be civil wars as in mid-east.

One can see from the right wing's attempts to stir up racial hatred (GO HOME vans, Roma steal babies, HMRC raids in Chinatown etc etc ) that the ruling elite and their sponsors would prefer civil war.

Qué? :blink:

Share this post


Link to post
Share on other sites

It is a correlation to current policy of enforcing maximum gearing on all new property borrowing.

If 5 million new homes were built tomorrow they would be priced at same gearing we have today.

There is no normal market at work here.

When interest rates rise there will be new policy to maintain that gearing (mortgage interest relief, state backed long term fixed rate etc).

I can only see some major currency catastrophe altering this now - until Gen Y sit at the head of the policy table and unleash a couple of decades of frustration on asset holders.

+100

When will the build en-mass clique ever realise this?!?

Share this post


Link to post
Share on other sites
We have a loan shark for a chancellor.

Which is quite an extraordinary thing, when you think about it. How did it come to this, that the Chancellor of the Exchequer is now the front man for the housing ponzi scheme?

I'm seriously wondering if Help to Buy is more than just a grubby election gimmick- it might be a last desperate throw of the dice to keep the entire rotten edifice of UK debt standing upright. The banks could not survive a real HPC- but if it's true that 90% of people on the average wage cannot afford to buy then a HPC is inevitable-unless.....

Unless we could from somewhere raise an army of debt zombies to fight in our cause- they would need to be young, with years of potential debt servicing work left in them- how could we create such an army?

What about a state backed mortgage guarantee scheme?

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • The Prime Minister stated that there were three Brexit options available to the UK:   217 members have voted

    1. 1. Which of the Prime Minister's options would you choose?


      • Leave with the negotiated deal
      • Remain
      • Leave with no deal

    Please sign in or register to vote in this poll. View topic


×

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.