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Shamus

Lower Paid Find It Hard To Get On Property Ladder

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At this most momentous period in the great UK Housing Bubble time for a reality check me-thinks!!

This article warns of the problem of affordable housing spreading out from the Capital in 2001 when average house prices were £123,856 and the average UK salary was £24,376!!

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Workers on average earnings are being priced out of gaining a foot on the property ladder, not just in London and the south-east but in many other towns right across England and Wales.

A survey in the current issue of Labour Research magazine discovered that out of 171 counties and districts in England and Wales, there are only 51 where a man on the average male income could afford a home. A woman on the average female salary could only afford to become a homeowner in just seven places - four in Wales plus Middlesbrough, Stoke on Trent, and Hull.

Couples with a joint salary seeking a property often fare little better. Even if they raised just the prerequisite 5% deposit they would still be unable to afford an average house in 59 of the 171 areas.

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The Labour Research report notes that a pair of secondary school teachers on average pay for their area would be able to buy a house in most counties outside London and the south-east but would find themselves excluded from what are now regarded as the more desirable areas of Bath and north-east Somerset, Poole, Dorset, and Solihull in the west Midlands.

>

5 years later and now young city professionals cannot even afford to buy their first home.

Anyone who believes that there is not going to be a correction in house prices must be mad or work for the World's Greatest Newspaper - 'The Daily Express' !!

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At this most momentous period in the great UK Housing Bubble time for a reality check me-thinks!!

This article warns of the problem of affordable housing spreading out from the Capital in 2001 when average house prices were £123,856 and the average UK salary was £24,376!!

<

Workers on average earnings are being priced out of gaining a foot on the property ladder, not just in London and the south-east but in many other towns right across England and Wales.

A survey in the current issue of Labour Research magazine discovered that out of 171 counties and districts in England and Wales, there are only 51 where a man on the average male income could afford a home. A woman on the average female salary could only afford to become a homeowner in just seven places - four in Wales plus Middlesbrough, Stoke on Trent, and Hull.

Couples with a joint salary seeking a property often fare little better. Even if they raised just the prerequisite 5% deposit they would still be unable to afford an average house in 59 of the 171 areas.

.

.

.

The Labour Research report notes that a pair of secondary school teachers on average pay for their area would be able to buy a house in most counties outside London and the south-east but would find themselves excluded from what are now regarded as the more desirable areas of Bath and north-east Somerset, Poole, Dorset, and Solihull in the west Midlands.

>

5 years later and now young city professionals cannot even afford to buy their first home.

Anyone who believes that there is not going to be a correction in house prices must be mad or work for the World's Greatest Newspaper - 'The Daily Express' !!

The amount you need to put down to ensure you follow the 3.5x salary rule is rediculous. I worked out to do this we need to save at least 50k for a house, as a 5% won't get us a mortgage to buy a house. It used to be save 5k for a deposit and you're sorted, you have an affordable mortgage. I find that quite frightening.

Edited by Bubble Pop Electric

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The only thing apart from low interest rates which have kept this bubble going is speculation.

Mainly driven from the people who bought pre 2001 in the SE and London.

These people are now buying further property on the back of the equity in their present houses while still keeping their original property for investment (thereby limiting supply at the lower end).

Further increases in these areas will release more equity to be spent on more investment property.

The transactions happening now in these areas will spread out again to the rest of the country causing more pain to local people.

It can only change now with rates being increased IMHO.

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This article warns of the problem of affordable housing spreading out from the Capital in 2001 when average house prices were £123,856 and the average UK salary was £24,376!!

I remember that when I read articles like this at the time - thinking to myself "these house price rises should definitely stop soon". :rolleyes::rolleyes:

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I remember that when I read articles like this at the time - thinking to myself "these house price rises should definitely stop soon". :rolleyes::rolleyes:

it's been going on so long now that the only logical conclusion to draw is that we have long since reached escape velocity and have successfully freed ourselves from the effects of the earth's HPC gravity forever!

Ladies and gentlemen, we are floating in space...

"this is Major Tom to ground control"

or are we spiralling slowly off into a weightless oblivion? :blink:

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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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