Jump to content
House Price Crash Forum
Sign in to follow this  
Guest

Halifax -0.6

Recommended Posts

Amazing that the average house costs £200k in a country with an average full time salary of £25k.

Share this post


Link to post
Share on other sites

Rock on

They clearly need to readjust their methodology !!!

The only people buying £200K houses are those that have been gifted £100K in untaxed unearned equity.

If you want to use earned/taxed income, forget it....for now.

Share this post


Link to post
Share on other sites

Amazing that the average house costs £200k in a country with an average full time salary of £25k.

it isn't the averages that are out imo

two earners on the average wage can easily afford the average house, particularly if they have some equity (i.e. the average house isn't their first purchase)

it is the outliers - by outliers, I mean 'London'

Share this post


Link to post
Share on other sites

I presume too late to effect the Super Thursday interest rate release unless Halifax gave the Committee a sneak preview. Sentance on the Today programme thinks we will get a split vote as opposed to a 9-0, again pointing to the UK topping G7 growth for a second year running and full employment. Neither seem compatible with zirp.

Share this post


Link to post
Share on other sites
Amazing that the average house costs £200k in a country with an average full time salary of £25k.

According to here :-

http://www.economicshelp.org/blog/5568/housing/uk-house-price-affordability/

house-prices-2001-2013q2-600x418.png

......then average house prices are about 10% higher than they were in the 2007 peak.

Even though productivity is LOWER nominally than it was in 2007 - and wages flat. All that borrowing....and borrowing.....and BTL.....

Must be the perfect time to buy, right?

Edited by canbuywontbuy

Share this post


Link to post
Share on other sites
Guest

it isn't the averages that are out imo

two earners on the average wage can easily afford the average house, particularly if they have some equity (i.e. the average house isn't their first purchase)

it is the outliers - by outliers, I mean 'London'

Many families have kids and have at least one parent working part time or not at all. Leaving kids with a childminders 5 days a week just to buy an overpriced house is not the answer.

Share this post


Link to post
Share on other sites

Many families have kids and have at least one parent working part time or not at all. Leaving kids with a childminders 5 days a week just to buy an overpriced house is not the answer.

I can point you in the direction of a heck of a lot people who believe it is and are living this very dream.

Share this post


Link to post
Share on other sites

it isn't the averages that are out imo

two earners on the average wage can easily afford the average house, particularly if they have some equity (i.e. the average house isn't their first purchase)

it is the outliers - by outliers, I mean 'London'

A lot of factors make the income multiples a little out of date, count of nowhere's unearned equity from previous ownership is a biggie. But also two income households and longevity. Gone are the days when the husband worked thirty years and died of a heart attack and the wife who never worked went onto widow's pension. As a couple we have 71 years aggregate full time work behind us and a few decades to go unless we pack it in.

Edited by crashmonitor

Share this post


Link to post
Share on other sites

A lot of factors make the income multiples a little out of date, count of nowhere's unearned equity from previous ownership is a biggie. But also two income households and longevity. Gone are the days when the husband worked thirty years and died of a heart attack and the wife who never worked went onto widow's pension. As a couple we have 71 years aggregate full time work behind us and a few decades to go unless we pack it in.

And when 2 wages isn't enough, what next?

Remember, HPI forever.

Share this post


Link to post
Share on other sites

And when 2 wages isn't enough, what next?

Remember, HPI forever.

2 wages already arent enough.

People were really struggling in 2007....imagine how things are now.

Share this post


Link to post
Share on other sites

Amazing that the average house costs £200k in a country with an average full time salary of £25k.

You are comparing what is now accepted to be a two salary expense to a single salary.

Houses that were bought on single salaries are now being sold to people happy to use two. Living the dream is now to have a shelter with more expensive bricks and hardly see your children, so you can spend more hours working to service more debt.

The BoE decided only 15% of mortgages can be higher than 4.5x household income. That's enough to support banker's bubble prices, so future pay rises can supposedly be eaten up mortgage rate rises. 50 year mortgages as the new normal next.

Bankers 1

Public's quality of life 0

Share this post


Link to post
Share on other sites

Amazing that the average house costs £200k in a country with an average full time salary of £25k.

Not really, if you have people who bought the asset in the past people can afford an upgrade. If I was a FTB I couldn't afford the mortgage nor would I be given one for my current house and it would have been a real stretch to buy our first house now. Because I got onto the ladder at the beginning of the insanity I can afford to live in a house I couldn't now afford to buy. Long term it's not sustainable but the issue you highlight in the short term can be masked.

Share this post


Link to post
Share on other sites

The first flat I bought, were it for sale today, would be about £100k - £105k (based on the last one in the block sold in April 2015). When I bought it, in April 1996, it was £41,500

In terms of its price as a percentage of the average house price, how much has it moved by? Not a lot I would say.

It didn't feel cheap to me at the time and I remember things being pretty tight in the run up to buying it (to save the deposit) and afterwards (to pay the mortgage and bills)

Share this post


Link to post
Share on other sites

The first house I bought was 3x my salary with a 10% deposit, it recently sold for what would have been today 10x plus equivalent salary. But for course I didn't waste money on iPODS. So 3x as expensive. (since 1983 so 32 years).

I bought my first couple of houses for cash ( IICR ).

I paid the mortgage on my 3rd one off at 31.

My fourth or was it fifth house was cash also.

Right now you'd have to be earning £150K - £300K a year to do the same.

That was all outside london and on 1 income.

I doubt there are many now who can even come close to that.

Edited by TheCountOfNowhere

Share this post


Link to post
Share on other sites

Rock on

Didn't even realise this was out today ... nothing being reported on the local radio station which is on in the office. Strange, as when the Nationwide reported up earlier in the week it was on the news every 30 minutes. Bias?!

Share this post


Link to post
Share on other sites
Guest

Didn't even realise this was out today ... nothing being reported on the local radio station which is on in the office. Strange, as when the Nationwide reported up earlier in the week it was on the news every 30 minutes. Bias?!

I don't think they understand minus figures next to house price rises! Hence they don't publish them

Share this post


Link to post
Share on other sites

The first flat I bought, were it for sale today, would be about £100k - £105k (based on the last one in the block sold in April 2015). When I bought it, in April 1996, it was £41,500

In terms of its price as a percentage of the average house price, how much has it moved by? Not a lot I would say.

It didn't feel cheap to me at the time and I remember things being pretty tight in the run up to buying it (to save the deposit) and afterwards (to pay the mortgage and bills)

If it were on sale today its price should be nearer £153,000, given that the average house price (not flat) in 2nd quarter 96 was £53,000.

In real terms, what you paid in '96 would be equivalent (inflation adjusted) to paying c.£69,000 today.

The sacrifices you must have made.....How on earth did you ever manage?

Share this post


Link to post
Share on other sites

If it were on sale today its price should be nearer £153,000, given that the average house price (not flat) in 2nd quarter 96 was £53,000.

In real terms, what you paid in '96 would be equivalent (inflation adjusted) to paying c.£69,000 today.

The sacrifices you must have made.....How on earth did you ever manage?

Depends where you live I guess. In terms of micro-census areas, the cheapest area last year (burnley - average price 33k, barely doubled from 1995 prices.

The most expensive micro-census area, westminster, went from £327k in 1995 to £3.5 million today.

The difference between most expensive and cheapest area went from about 30 times to over 100 times...

Share this post


Link to post
Share on other sites

I was commenting more on the affordability aspect. His mortgage would have been just over three times the average wage (assuming a 10% deposit).

The comment about the real terms value stands. The flat would have been cheap.

Perhaps he can provide a link to the sold Flat?

Share this post


Link to post
Share on other sites

I can provide a link to the flats sold in the development - and it looks as though the one I had in mind went for over asking: at £113k, not the £105k I was told it had been for sale at. Just goes to show it is always best to check!

http://nethouseprices.com/house-prices/streets-details/east%20sussex/heathfield/high%20street/tn21/8lu/tn21%208lu

My wage at the time was about £18k, though I did have the benefit of a company car, so what would usually be the second biggest expense wasn't.

I had saved £5k saved up and when I had paid the deposit and legals etc. I felt pretty skint. I don't remember what the mortgage payments were, but I borrowed £37,350 over 25 years on a standard Halifax repayment product.

So, Apr 1996 = £41,500: May 2015 = £113k

Share this post


Link to post
Share on other sites

I can provide a link to the flats sold in the development - and it looks as though the one I had in mind went for over asking: at £113k, not the £105k I was told it had been for sale at. Just goes to show it is always best to check!

http://nethouseprices.com/house-prices/streets-details/east%20sussex/heathfield/high%20street/tn21/8lu/tn21%208lu

My wage at the time was about £18k, though I did have the benefit of a company car, so what would usually be the second biggest expense wasn't.

I had saved £5k saved up and when I had paid the deposit and legals etc. I felt pretty skint. I don't remember what the mortgage payments were, but I borrowed £37,350 over 25 years on a standard Halifax repayment product.

So, Apr 1996 = £41,500: May 2015 = £113k

New build?

No wonder your figures look so conservative :rolleyes:

Edited by 25 year mortgage 8itch

Share this post


Link to post
Share on other sites

it isn't the averages that are out imo

two earners on the average wage can easily afford the average house, particularly if they have some equity (i.e. the average house isn't their first purchase)

it is the outliers - by outliers, I mean 'London'

I agree, if by "easily afford" you mean "require both adults to engage in full time wage labour for 25-30 years with no wage cuts and few if any breaks in working due to redundancy, childcare, health problems, or even just getting sick of being a wage slave and fancying a break". Easy peasy.

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:   215 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.