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

Wages Are No Longer Underpinning Silly House Prices

Recommended Posts

http://www.telegraph.co.uk/money/main.jhtm.../ixcitytop.html

Taxes are squeezing take-home pay

By Robert Watts (Filed: 07/05/2006)

Gordon Brown will this week be forced to acknow-ledge that tax rises mean take-home pay is struggling to keep pace with inflation.
On Friday the Office for National Statistics will publish The Effects of Taxes and Benefits on Household Income 2004-05, an annual analysis that outlines the rising burden of council tax, National Insurance and other taxes.
Economists say there is increasing evidence that take-home pay is being squeezed by higher taxes, and this helps explain the electorate's increasing willingness to turn against the Government, despite the economy growing.
The latest data from the ONS says that income tax payments were 7.5 per cent higher in the year to the end of March 2006 than in the previous year. An equivalent measure of National Insurance showed a rise of 5.8 per cent over the same period.

So, if wages are not keeping up and employment is getting weaker what else is keeping house prices from crashing dramatically? IR and lax lending perhaps. IR are headed up leaving just lax lending.... :o

Share this post


Link to post
Share on other sites

When tax on petrol, council tax, etc., are taken into account - not just take home pay, I wonder where diposable income is at? Could it actually be falling?

Share this post


Link to post
Share on other sites

When tax on petrol, council tax, etc., are taken into account - not just take home pay, I wonder where diposable income is at? Could it actually be falling?

IMHO "disposable income" is key--this should be factored into the CPI. "Real" inflation is that which affects us the most financially- the non-discretionaries like home heating fuel, petrol, travel, council tax etc.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 301 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%



×
×
  • Create New...

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.