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UK house prices are unattainable... no, not just London, most the country, latest statistics suggest

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I've been saying this for a very long time despite what others, on here included, often say that it's just a London/south east problem.

 

There are plenty of areas I'm familiar where average house prices are a ''measly'' £150k or so... but local jobs are scarce to non-existent and local average wage is probably barely half the UK average wage, meaning local house prices are still 10x local average wage

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good article, and very simple to read. I'm actually inclined to forget the London/Oxford insanity and look near my neck of the woods (North East) to confirm what the article says.

The fact you need two wages for one mortgage says it all. 

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^ cityam link

Quote

 

So, assuming you can convince a bank to lend you the maximum the government's Money Advice Service will allow, 4.2 times, the average Londoner will need to save a mere £435,543 as a deposit to buy a housestudio/1 bed flat.

A more likely scenario, where couples buy together, would mean that two people on London's average salary would still need to save £290,757 between as a deposit them to snap up a property studio/1 bed flat.

 

and the current situation never once deterred by all the UK's main parties when in power.  Who can ever forget Chancellor Osborne's HtB etc to boost prices and the property developer favouritism - then allowing the consequent buying up of most new developments by rich overseas people.

The time wasting and self serving Conservatives, Labour and the LibDems along with their best chums and supplier of MPs lavishly paid sinecure jobs the banks and other lenders have a lot to answer for.

Edited by billybong

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I don't need any stats to tell me this.  I now couldn't afford to buy my first house and my current house is now way beyond our salary reach and would be an impossible dream.

The property market is crazy, 30 plus year mortgages are fast becoming the norm as it's the only way to keep the payments "affordable".  Soon it will be 50 year mortgages unless something drastic happens.  It's all very depressing that this is the UK economy, sucking the life out of the productive economy just to maintain basic shelter.

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A colleagues parents bought their London house for £3k 50 years ago - about £50 K now - it sold for £1 million - so the deposit is more in real terms than it was 50 years ago.

Shows how expensive things have got now.

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On 15/04/2017 at 5:58 PM, nome said:

I've been saying this for a very long time despite what others, on here included, often say that it's just a London/south east problem.

 

There are plenty of areas I'm familiar where average house prices are a ''measly'' £150k or so... but local jobs are scarce to non-existent and local average wage is probably barely half the UK average wage, meaning local house prices are still 10x local average wage

Welcome to Norfolk

Northern incomes

Southern House Prices 

Below from 

http://www.edp24.co.uk/property/revealed-how-much-you-need-to-earn-to-afford-a-home-in-different-parts-of-norfolk-1-4336653

Please hold in mind this is 2015 so the prices are 10-30% higher depending on the area.


58f3ac2c5759b_ScreenShot2017-04-16at18_38_22.png.036ab9d2472dd634e7644fdd1608381d.png

Edited by Fromage Frais

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10 hours ago, billybong said:

^ cityam link

and the current situation never once deterred by all the UK's main parties when in power.  Who can ever forget Chancellor Osborne's HtB etc to boost prices and the property developer favouritism - then allowing the consequent buying up of most new developments by rich overseas people.

The time wasting and self serving Conservatives, Labour and the LibDems along with their best chums and supplier of MPs lavishly paid sinecure jobs the banks and other lenders have a lot to answer for.

If the base rate is 0.25%, and the public are in debited to there eyeballs, then to keep the economy moving forward, then the doors are open to wealthy foreign ownership... at some point a statistic snap will be produced to show averages asset ownership by non-U.K. citizens, I'll simplify how many premier league football clubs are British owned :o)

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16 hours ago, maverick73 said:

I'm presuming Yarmouth is the next hotspot B)

There are some lovely properties in Great Yarmouth.

Unfortunately they are not cheap either and its more of a case that the dumpy terraces in the centre dragging the averages down.

http://www.rightmove.co.uk/property-for-sale/property-47231728.html

http://www.rightmove.co.uk/property-for-sale/property-63324758.html

http://www.rightmove.co.uk/property-for-sale/property-60830447.html

http://www.rightmove.co.uk/property-for-sale/property-63028001.html

Cheaper than Norwich yes as the above would be another 100k possibly but not cheap considering all the factors.

If you want a decent family home your talking 250-300k which looks a bargain....but only due to the insanity of the rest of Norfolk.

Even going as far as Gorleston which has jobs due to the hospital your talking a good % more on the prices.

 

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On 16/04/2017 at 11:42 AM, interestrateripoff said:

All sharing together.....

....all in it together, until they need to get out of it alone.;)

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14 minutes ago, Fromage Frais said:

There are some lovely properties in Great Yarmouth.

Unfortunately they are not cheap either and its more of a case that the dumpy terraces in the centre dragging the averages down.

http://www.rightmove.co.uk/property-for-sale/property-47231728.html

http://www.rightmove.co.uk/property-for-sale/property-63324758.html

http://www.rightmove.co.uk/property-for-sale/property-60830447.html

http://www.rightmove.co.uk/property-for-sale/property-63028001.html

Cheaper than Norwich yes as the above would be another 100k possibly but not cheap considering all the factors.

If you want a decent family home your talking 250-300k which looks a bargain....but only due to the insanity of the rest of Norfolk.

Even going as far as Gorleston which has jobs due to the hospital your talking a good % more on the prices.

 

Wow, they are awesomely cool homes, I'm guessing it's appeal would grow if grammar schools popped up as part of the government drive to keep the engine of the economy chunring B)

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20 hours ago, Fromage Frais said:

Welcome to Norfolk

Northern incomes

Southern House Prices 

Below from 

http://www.edp24.co.uk/property/revealed-how-much-you-need-to-earn-to-afford-a-home-in-different-parts-of-norfolk-1-4336653

Please hold in mind this is 2015 so the prices are 10-30% higher depending on the area.


58f3ac2c5759b_ScreenShot2017-04-16at18_38_22.png.036ab9d2472dd634e7644fdd1608381d.png

Is that mean annual earnings just single income? Isn't it people using joint income mortgages that are buying these days?

 

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Considering the ups and (rare, not big enough) downs have been pretty similar throughout the country, albeit at different absolute levels, this really does merit a "No sh1t Sherlock" response.

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2 minutes ago, Democorruptcy said:

Is that mean annual earnings just single income? Isn't it people using joint income mortgages that are buying these days?

 

Well if you consider both earn the same and HPI has been 10-30% since that table either way its not affordable.

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Cannot believe that the average wage for young people in Oxford and South Lanarkshire is identical. Can only assume that the real 'talent' from Oxford sods off to London as soon as they graduate, leaving the cleaners/baristas etc to drag down the average.

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8 minutes ago, Fromage Frais said:

Well if you consider both earn the same and HPI has been 10-30% since that table either way its not affordable.

I think the governbankment's plan is 4.5 times 2 incomes and as the MMR has no maximum term, if necessary just add a few extra years onto the mortgage to reduce the initial monthly payments. If sub prime.... defer some of the debt via the shared equity Help to Buy Bail Banks.

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In Birmingham the median two bedroom house costs £130,000

The min wage is now close to £15,000 a year working a 40 hour week.

A couple even on the min wage can purchase the median house in Birmingham

More realistically when you look at the full time male + full time female wage in Birmingham it comes to over £50,000 annually which puts Birmingham at a very affordable level of about 2.5 x joint income. Its no comparison prices are much cheaper outside of London and dare I say it, even cheap in some parts of the country like Birmingham

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Only 46 authorities out of 355 have a lending ratio of 3 to 5 times the income, it was only 20 years ago when 3 was classed as the norm. No wonder the market is stalling, How naive to think that these sorts of ratios can keep on increasing.

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Even the average earner now has no part in the home owning democracy that Britain once sought to build.

Average work is no longer enough. You need more money before you can take part. 

Like the overseas money launderers. They are welcomed.

But an average earner wanting their work to buy an average local house? No, you can sod off. You'll do nothing to increase house prices so you're not wanted.

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