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How Much More Would You Be Earning If Wages Had Kept Up With House Prices?

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http://england.shelter.org.uk/campaigns/building_more_affordable_homes/the_house_price_gap

The House Price Gap

Lately, house prices have got so out of control it’s leaving many of us struggling. Buying a house is out of reach for most of us, rents keep rising, and wages just haven't kept up.

In fact, if wages had gone up by as much as house prices since 1997, the average person would be earning £29,344 more a year.

See how much extra you’d be bringing in if average wages had gone up as fast as house prices in your area.

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My Postcode in Northampton NN3 xxx says - You’d be earning £23,919 more a year, on average, if wages had risen by as much as house prices in your local area. :blink:

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http://england.shelter.org.uk/campaigns/building_more_affordable_homes/the_house_price_gap

The House Price Gap

Lately, house prices have got so out of control it’s leaving many of us struggling. Buying a house is out of reach for most of us, rents keep rising, and wages just haven't kept up.

In fact, if wages had gone up by as much as house prices since 1997, the average person would be earning £29,344 more a year.

See how much extra you’d be bringing in if average wages had gone up as fast as house prices in your area.

______

My Postcode in Northampton NN3 xxx says - You’d be earning £23,919 more a year, on average, if wages had risen by as much as house prices in your local area. :blink:

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32k. But if that's based on the average wage for where you live..

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If banks lend at multiples of income then houses are leveraged to incomes.

Woo-hoo! At least another 60k for me!

(shocking really)

Oh, and my children will be 42 before they can afford the deposit for their first home...

Edited by tomandlu

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If banks lend at multiples of income then houses are leveraged to incomes.

same they use affordability to leverage the income...this means the whole lot requires lower and lower rates....

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also relevant

how much would house prices be now if based on 3 times income / 2 times joint, interest rates at the reasonable 5%, the requirement to have at least 5 % deposit

not to mention BTL and rocketing rents and of course LIAR LOANS (aka self cert)

it is not necessarily wages/salaries that are not sufficient for day to day living but that house prices/ rents are too high

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I would be earning around 100k for a 3 day week. Indeed, I've used this argument to people when they ask why I haven't bought a house.

'At these prices, I will only buy when my wage triples through no effort on my part'.

As far as I'm concerned, although my salary has doubled nominally since I started work 14 years ago (and I would attribute pretty much all of that to experience rather than inflation linked earnings), it's 50% less than it was when I started in relation to house prices.

Someone doing the role I did 14 years ago, starting at 22k would today expect to start on roughly the same. There has been ZERO wage inflation.

edit to add further anecdote: my rent has gone up basically nothing in that time - mainly because I avoid agencies and am a good tenant.

Edited by Frugal Git

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Well it says £15k .But its way wrong,

http://www.rightmove.co.uk/property-for-sale/property-29027478.html?premiumA=true

Repo and offer in for £33k about to go sold.That was my first street,i bought a house a carbon copy 4 doors away when i was 21 for £28k and sold it 6 years later in 2000 for £29k.So they have gone up nominal there 10% in 20 years.

House price have collapsed all over the north east.

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Woo-hoo! At least another 60k for me!

(shocking really)

Oh, and my children will be 42 before they can afford the deposit for their first home...

IS that the resoultion foundation figures today?

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Well it says £15k .But its way wrong,

http://www.rightmove.co.uk/property-for-sale/property-29027478.html?premiumA=true

Repo and offer in for £33k about to go sold.That was my first street,i bought a house a carbon copy 4 doors away when i was 21 for £28k and sold it 6 years later in 2000 for £29k.So they have gone up nominal there 10% in 20 years.

House price have collapsed all over the north east.

I would say that's about the right price for a place like that. It's about as much as I would want to pay for something similar near Cambridge. Same thing would probably be 250k though here (and people would inexplicably pay it).

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I would say that's about the right price for a place like that. It's about as much as I would want to pay for something similar near Cambridge. Same thing would probably be 250k though here (and people would inexplicably pay it).

Yep agree 100%.Nothing wrong with them.Spend a few k tidying up and fine for first house.In the north east they are back down to decent prices like that for FTBs.Like you say about right for what they are "worth" as somewhere cheap to live.The rest of the country must be bonkers to be paying what they are for houses.

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I have a question.

How much have your earnings increases out stripped your rent ?

Im on even par.

laugh.giflaugh.giflaugh.gif

Same. My rent is the same as it always was - it's a smaller proportion of my income than it was 14 years ago (if I was to still be working full time), but like I said, my wage increases are 100% to do with experience, and zero to do with inflation IMHO.

There are people in Cambridge paying what I would call crazy rents, but that's their business because they want to live in some aspirational flat with service charges built into thier rent that absolutely have risen because of the parasites in the industry. For those who are satisfied with basic accomodation, it's not gone up at all.

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Yeah but it's designed to swell their intended audience with joy as HPI soars. Most mail readers are older homeowners.

It just says to me...misery for workers....misery for savers....misery for home owners inevitable

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I have a question.

How much have your earnings increases out stripped your rent ?

Im on even par.

laugh.giflaugh.giflaugh.gif

Past ten years. Comparing 'cleaner' job then with 'fork lift truck driver' job now.

Wages up about 18%, but chance of getting wages as a form of income is down.

My rent is up 120%. Housing benefit also.

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Discussing this in office 3 guys here 15 years plus older than me based in London.Houses now worth 10x their salary and 2 of them seen massive rises based on valuations on street in last month.

No way I could ever buy here :unsure:

Based on Shelter site for my postcode my wages would be 38k higher if in touch with housing ..

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Discussing this in office 3 guys here 15 years plus older than me based in London.Houses now worth 10x their salary and 2 of them seen massive rises based on valuations on street in last month.

No way I could ever buy here :unsure:

Based on Shelter site for my postcode my wages would be 38k higher if in touch with housing ..

38k? Pfft - I'm much more not richer than you are... ;)

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You’d be earning £59,925 more a year, on average, if wages had risen by as much as house prices in your local area.

What an F*ing joke this country is.

And this is why the government cannot ever stop trying to stoke HPI, as our houses for the most part are more productive at generating wealth than their occupants.

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You’d be earning £59,925 more a year, on average, if wages had risen by as much as house prices in your local area.

What an F*ing joke this country is.

You’d be earning £60,779 more a year, on average, if wages had risen by as much as house prices in your local area.

Joy...

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Woo-hoo! At least another 60k for me!

(shocking really)

Oh, and my children will be 42 before they can afford the deposit for their first home...

Nah.. 50% government loaned deposit, on 10% shared ownership means that they'll be able to raise the £250k mortgage for 5% of a grotty flat by the age of 35, no probs.

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