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Realistbear

The Times: House Prices Now 18 X Ftb Salary

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http://business.timesonline.co.uk/article/...2021793,00.html

Don't trust to beginner's luck
First-time buyers must check the competition for the right home loan, says Rebecca O’Connor
RECENT housing market statistics could make even the most optimistic first-time buyers recoil in horror and resign themselves to a life of renting.
The price of the average UK property is as much as 18 times higher than the average wage of a first-time buyer
and it takes five years to save a typical deposit of £23,967. The average age of someone buying a first home is now 33. The wait might seem off-putting, but it is better to be patient than to “panic buy”.
Barry Naisbitt, chief economist at Abbey,
says that slower house price growth means that first-time buyers have an opportunity to save larger deposits
, rather than rushing in and struggling with repayments.

So, what is the nice gentleman at Abbey saying? As prices continue to rise a FTB will eventually pare down the 18 X ratio to a normal 3.5 X ratio by saving more?

ZENO's paradox?

http://www.mathacademy.com/pr/prime/articl..._tort/index.asp

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http://business.timesonline.co.uk/article/...2021793,00.html

Barry Naisbitt, chief economist at Abbey, says that slower house price growth means that first-time buyers have an opportunity to save larger deposits, rather than rushing in and struggling with repayments.

Is he therefore implying that he doesn't see large % HPI in the foreseeable future?

Also where is the usual, "Our range of imaginative financing options means that affordabiity is possible for many".

It's what they don't say that counts as much but trying to decipher what they really think is harder.

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  • 302 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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