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How Affordable Are Houses Where You Live?

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Not sure where the MEN got their figures from, or why they thought it was 'news' that the average house in the area costs 3.5 to 4 times salary? Nothing to see here. The data for other areas does make interesting reading though ...

Figures have revealed how likely you are to be able to buy a house across Greater Manchester. Most parts of the region have a ratio of average prices to average wages of around 3.5 to four times, making securing a mortgage a possibility.

The most affordable areas are Wigan , where the average price is £93,308, 3.6 times the average wage of £25,707, and Oldham , 3.7 times average wages. In Manchester , the average home costs £98,569, four times the average wage of £24,600. The least affordable area is Trafford , where the average price is £194,164, 6.3 times the £30,768 average wage, followed by Stockport , where prices are 5.4 times wages.

Kensington and Chelsea is the least affordable place in England and Wales, with average prices 29.4 times average wages. The average home in the borough costs £1.34m, while the average wage is £45,625. Westminster is close behind with prices 24.9 times incomes.

The most affordable places in England and Wales are in the Welsh Valleys - in Merthyr Tydfil the average home costs £62,244, 2.9 times the local average wage of £21,374. In Blaenau Gwent, the ratio may be even smaller at 2.7 times, although there is only a mean wage for the area, which tends to be slightly higher than the median used for analysis in other areas.

The analysis is based on the comparison between the median full time wage in a local authority, taken from the Annual Survey of Hours and Earnings 2013, which uses PAYE to measure employee earnings, and the latest Land Registry average prices, from September. The comparison gives a rough indicator of how affordable housing is in the area.

They are based on the average house price, which is more likely to be a small house rather than a one bed flat and the average wage, which may be lower for younger first time buyers. For people buying as part of a couple, they may be able to double their income, and half the ratio between prices and earnings.

The Financial Conduct Authority defines high income multiple loans as above 3.5 times income for a single applicant and over 2.75 times for a joint application. With new mortgage affordability rules in place, it is more difficult to get loans up to five times income.

http://www.manchestereveningnews.co.uk/business/property/how-affordable-houses-you-live-8113806?ptnr_rid=79447&icid=eml_MENBusiness_PropertyReadMore

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Oldham , 3.7 times average wages

  1. The average gross weekly income in the borough of Oldham is £297; not only is this below the national average but it is the lowest of Greater Manchester's ten boroughs.
  2. Metropolitan Borough of Oldham - Wikipedia, the free ...
    en.wikipedia.org/wiki/Metropolitan_Borough_of_Oldham
    £57142.8
    What stats are they using?

Even using their figure of 22101
£81773.7

Edited by SarahBell

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Oldham , 3.7 times average wages

  1. The average gross weekly income in the borough of Oldham is £297; not only is this below the national average but it is the lowest of Greater Manchester's ten boroughs.
  2. Metropolitan Borough of Oldham - Wikipedia, the free ...
    en.wikipedia.org/wiki/Metropolitan_Borough_of_Oldham
    £57142.8
    What stats are they using?

Zoopla ave is £133,582 (ave asking 163,300) http://www.zoopla.co.uk/house-prices/oldham/

ratio of 8.6 to wages

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They aren't too bad around here TBH

http://www.rightmove.co.uk/property-for-sale/property-30848127.html

Not an area you would really want to live but if needs must.

What does that even mean?

Give up on your dreams, all your work and effort and savings in advancing things for your family, because here is an end of terrace with no driveway, you can just about afford in a rubbish area? Needs must? No. Needs is rebalancing the malinvestment and seeing those who happily paid £400K for a house, have an older neighbour begin trying to find one of the diminishing numbers buyer at £200K.

It might be value at its 2000 price.

http://www.rightmove.co.uk/house-prices/detailMatching.html?prop=29051641&sale=16773971&country=england

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Is there anywhere in the UK where houses would be affordable, to ordinary people, without ultra low mortgage rates and government subsidised deposits?

Nail, head. Nothing more needs to be said on the subject.

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Well it looks better than my first house.

Yes, already read how you are a bit upset you've not made out with as much HPI as others did. The very fact you even look at profit in selling, 'not a king's ransom' is part of what is wrong with our culture, imo. How's your mortgage tracker doing? Still 0.65% or something. Bailouts, pain shunted more on younger people again... "here you go... a terrace you can just about afford in a duff area."

I am 50 and bought at the last peek late80's when it comes down to it I think you were born at a luckier time than me. I haven't made that much out of houses. If you are old enough to have bought in 1995 then you had a good chance of HPI.

I like the fact you put 1963 in with genx. I was born late 1963 and I can't say I have had it lucky. Some of it comes down to when you had a decent paying Job. I didn't get an average paying job until 1987.

And by 1997 you could buy a reasonably price home.

I was born in 1979, didn't get an average paying job till 2003 and then in 2013 I could buy... oh wait.

If I got my timing right yes. but I didn't. It all comes down to timing and luck. I reckon I have made more money since 2009 with shares than I have made with houses.

Are you joking?

If you had an average paying job in 87 then you had 10 years to save and get involved before things got crazy in the late 90's.

Again if I got my Timing right and I didn't. if you look at the graph on the front page you will see house prices were the same in 1989 as they were in 2001 twelve years later. Anyone buying a house in those 12 years after I bought did better than me.

Just to add I bought my second house in 1992 for £46,000 and sold it 7 years later in 1999 for £54,000. So I made £8,000 in 7 years minus buy and selling costs of cause. Not a king ransom in my book.

All I am saying is that if I was 5 years younger and had done the same things at the same ages I would have been better off.

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I know the stats are always messed with but here in my street in Yorkshire....

5 houses for sale

1 3 bed bungalow been on for six months down from 179k to 166k still no takers- lovely house I have my eye on this.

1 extended 3 bed semi on for six months no takers down from 169k to 155k

1 2 bed bunglaow down from 169k to 139k still unsold taken off market

1 sold bungalow went for 120k that was a 30k price cut owned by an old dear who passed and family wanted shot of it quick. It sold just before the new mortgage regulations.

I keep a close eye on my area about 10 miles and just watch. They aren't affordable yet but lots of old folks croaking it and a slew of nice bungalows all coming down in price.

Not there yet but another year or so I will consider buying as 3.5 times my wage will get me a lovely big bungalow of a seller who will bite my hand off. The media try to tell me different but I dont give a shit all I care about is in the area I am living and even in my street big falls already.

Thats all I want a family home with a garden without crippling myself financially and its getting ever closer.

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