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

Official: Devon Housing Now 11.1 Times Income

Recommended Posts

http://www.thisisdevon.co.uk/displayNode.j...;pNodeId=142722

HOUSE PRICE TIME BOMB

11:00 - 17 August 2006
Devon is officially the most unaffordable county in the UK for buying a home - with Cornwall a close second, a new study reveals.
The report, released by the National Housing Federation, warns that the region's housing crisis is a "timebomb" which could explode over the next five years, with average house prices rising even further.
The NHF looked at the gap between wages and house prices to come up with its conclusions.
The research highlights Devon as the most unaffordable county to buy a home in the country closely followed by Cornwall and then Dorset.
Somerset, alongside Oxfordshire, is the sixth most unaffordable place in the country, the study says.
MPs and housing experts are calling for more action to ease the situation, in the wake of the report.
Geoffrey Cox, Conservative MP for Torridge and West Devon, said:
"Unless we do something about it soon we will simply have a large retirement park across vast swathes of Devon."
And Andy Goundry, Cornwall branch chairman of the National Association of Estate Agents (NAEA), said: "We have a desperate need for housing that meets local demand."
The NHF report, released today, shows that in Devon the average house price last year was £212,028 -
11.1 times more than the average wage of £19,115.

What a mess. HPI ruining the economy in Devon. What do you think its done to the whole country? Everyone can move to beatiful Essex where houses are only 9.3 times income. :lol:

Crash anyone? :lol::lol::lol:

Share this post


Link to post
Share on other sites

http://www.thisisdevon.co.uk/displayNode.j...;pNodeId=142722

HOUSE PRICE TIME BOMB

11:00 - 17 August 2006
Devon is officially the most unaffordable county in the UK for buying a home - with Cornwall a close second, a new study reveals.
The report, released by the National Housing Federation, warns that the region's housing crisis is a "timebomb" which could explode over the next five years, with average house prices rising even further.
The NHF looked at the gap between wages and house prices to come up with its conclusions.
The research highlights Devon as the most unaffordable county to buy a home in the country closely followed by Cornwall and then Dorset.
Somerset, alongside Oxfordshire, is the sixth most unaffordable place in the country, the study says.
MPs and housing experts are calling for more action to ease the situation, in the wake of the report.
Geoffrey Cox, Conservative MP for Torridge and West Devon, said:
"Unless we do something about it soon we will simply have a large retirement park across vast swathes of Devon."
And Andy Goundry, Cornwall branch chairman of the National Association of Estate Agents (NAEA), said: "We have a desperate need for housing that meets local demand."
The NHF report, released today, shows that in Devon the average house price last year was £212,028 -
11.1 times more than the average wage of £19,115.

What a mess. HPI ruining the economy in Devon. What do you think its done to the whole country? Everyone can move to beatiful Essex where houses are only 9.3 times income. :lol:

Crash anyone? :lol::lol::lol:

But the BBC said the Nationwise said that houses are at a record 3.2x income [up from 3.05% in 2003]

Share this post


Link to post
Share on other sites

But the BBC said the Nationwise said that houses are at a record 3.2x income [up from 3.05% in 2003]

Its around 10 times in my area as the average salary around here is about 16k and you can buy a decent small semi for that amount. 1 Bed flats are around £100k so I suppose that makes it 6 times salary. Never heard of an average property in the UK at 3.2 times average salary???? I wonder if the BBC are talking about another country?

Edited by Realistbear

Share this post


Link to post
Share on other sites

But the BBC said the Nationwise said that houses are at a record 3.2x income [up from 3.05% in 2003]

:lol: If only I could buy a 'average house' for about £70,000. We'd all be laughing. Maybe they were forecasting what it will be next year :lol::lol::lol:

Share this post


Link to post
Share on other sites

The BBC will happily regurgitate any old PR drivel fed them by the lending/housing industries.

That is what taxpayers pay their huge licence fee for. A poorer younger generation is going to have to rethink whether they still want to pay their dues, the BBC is going to be in for a nasty shock one day.

Share this post


Link to post
Share on other sites

Essex, among the least desireable places in the natioon is quite high on the multiples:

http://www.herts-essex-news.co.uk/news/sta...me%20buyers.lpf

House price misery for first-time buyers
HOUSE prices in Harlow and Epping Forest are now almost 10 times higher than average income, according to new research.
The National Housing Federation's east of England branch has issued new figures which paint a stark picture for first-time homebuyers in the area.
The average house price in Harlow during 2005 was £168,644, 8.7 times higher than the average wage of £19,423.
It is even worse in Epping Forest, where the average wage of £31,242 is 9.3 times lower than the average house price of £291,591. Both figures are higher than the Essex average, where the house price to income ratio is 8.04.
However, Alan Howick, partner in Howick & Brooker estate agents in High Street, Old Harlow, has advised house-buyers not to panic.
"There are swings but at the end of the day the overall picture is pretty level," he said. "There's no need to press the alarm bell.
"The market has a way of balancing itself out, of finding its level."
He admitted the situation has not been helped by people buying homes to let but said there was still plenty of choice in the housing market.
"About five or 10 years ago letting agents took up about half-a-page in a local newspaper. Now you have page after page of properties to let.
"
However, supply outstrips demand and investors have walked away from it."

We have got to face it, Gordon has created one helluva ugly mess hasn't he? Irresponsible lending, IO mortages, accomodative/inflationary IR, ramping, articifial CPI, jobs for the boys (civil servants) have all combined to create a Miracle Economy. And we know there is no such thing as the economuic cycle has not, and cannot, be beaten.

Edited by Realistbear

Share this post


Link to post
Share on other sites

"The market has a way of balancing itself out, of finding its level."

So that would be a crash then? :rolleyes:

Or are all our wages going double overnight to give us half a chance?

Share this post


Link to post
Share on other sites

So that would be a crash then? :rolleyes:

Or are all our wages going double overnight to give us half a chance?

With multiples at around 10 X salary most would need a 300% increase in salary and even then it would be a struggle. The historic norm for mutliples was 2.5 times salary.

It shows how out of touch this market is with reality. No wonder IO loans and marginal credit has been used in the dying days of the bubble.

Edited by Realistbear

Share this post


Link to post
Share on other sites

In fact the average house price here in Plymouth is £152,000.The more``pretty`` parts of Devon is where the big money is.Exeter,the other main Devon city,again is more expensive than Plymouth.Both cities by far provide much of the employment in the region.

Share this post


Link to post
Share on other sites

I wonder if the BBC are talking about another country?

Never [never] land :blink:

I notice in last few weeks several VI sources [press, BBC, radio] have been trotting out these stupid 3.2x figures - I think they came from Nationwide?

Share this post


Link to post
Share on other sites

They are talking about mortgages which are based on self cert (aka lying) and parents bailing out with massive MEW for the kids deposit. Thus everything looks rosey from that set of loan statistics, and then they barefacedly talk about actual prices Vs average wage and suddenly it doesnt fit...but hell who cares, dont look too hard and everything will OK. *blows in Joe public's ear and fondles his rump predatively*

Share this post


Link to post
Share on other sites

http://www.thisisdevon.co.uk/displayNode.j...;pNodeId=142722

HOUSE PRICE TIME BOMB

11:00 - 17 August 2006
Devon is officially the most unaffordable county in the UK for buying a home - with Cornwall a close second, a new study reveals.
The report, released by the National Housing Federation, warns that the region's housing crisis is a "timebomb" which could explode over the next five years, with average house prices rising even further.
The NHF looked at the gap between wages and house prices to come up with its conclusions.
The research highlights Devon as the most unaffordable county to buy a home in the country closely followed by Cornwall and then Dorset.
Somerset, alongside Oxfordshire, is the sixth most unaffordable place in the country, the study says.
MPs and housing experts are calling for more action to ease the situation, in the wake of the report.
Geoffrey Cox, Conservative MP for Torridge and West Devon, said:
"Unless we do something about it soon we will simply have a large retirement park across vast swathes of Devon."
And Andy Goundry, Cornwall branch chairman of the National Association of Estate Agents (NAEA), said: "We have a desperate need for housing that meets local demand."
The NHF report, released today, shows that in Devon the average house price last year was £212,028 -
11.1 times more than the average wage of £19,115.

What a mess. HPI ruining the economy in Devon. What do you think its done to the whole country? Everyone can move to beatiful Essex where houses are only 9.3 times income. :lol:

Crash anyone? :lol::lol::lol:

Hmmm could be a nice place to live. Wealthy homeowners keeping the chavs out of the smart areas. Shops and restaurants staffed by people renting, and as renting is so cheap as we are often told, they'll have plenty of disposable income to keep the local economy growing. Plenty of customers for those of us who may fancy buy to let. Just avoid most of Plymouth and Exeter, they're a bit naff.

Share this post


Link to post
Share on other sites

http://www.thisisdevon.co.uk/displayNode.j...;pNodeId=142722

HOUSE PRICE TIME BOMB

11:00 - 17 August 2006
Devon is officially the most unaffordable county in the UK for buying a home - with Cornwall a close second, a new study reveals.
The report, released by the National Housing Federation, warns that the region's housing crisis is a "timebomb" which could explode over the next five years, with average house prices rising even further.
The NHF looked at the gap between wages and house prices to come up with its conclusions.
The research highlights Devon as the most unaffordable county to buy a home in the country closely followed by Cornwall and then Dorset.
Somerset, alongside Oxfordshire, is the sixth most unaffordable place in the country, the study says.
MPs and housing experts are calling for more action to ease the situation, in the wake of the report.
Geoffrey Cox, Conservative MP for Torridge and West Devon, said:
"Unless we do something about it soon we will simply have a large retirement park across vast swathes of Devon."
And Andy Goundry, Cornwall branch chairman of the National Association of Estate Agents (NAEA), said: "We have a desperate need for housing that meets local demand."
The NHF report, released today, shows that in Devon the average house price last year was £212,028 -
11.1 times more than the average wage of £19,115.

What a mess. HPI ruining the economy in Devon. What do you think its done to the whole country? Everyone can move to beatiful Essex where houses are only 9.3 times income. :lol:

Crash anyone? :lol::lol::lol:

I wonder how long it will take before there is rioting in the streets about the injustice of it all?! This country is f**ked!

Share this post


Link to post
Share on other sites

Hmmm could be a nice place to live. Wealthy homeowners keeping the chavs out of the smart areas. Shops and restaurants staffed by people renting, and as renting is so cheap as we are often told, they'll have plenty of disposable income to keep the local economy growing. Plenty of customers for those of us who may fancy buy to let. Just avoid most of Plymouth and Exeter, they're a bit naff.

If you thimk Plymouth is a bit naff you should have seen it 20 years ago.Looked like something from a rundown part of Eastern Europe.In fact,I come from Reading.Have you seen the state of that of late!Although wages here are lower,there are some nice places to visit!

Share this post


Link to post
Share on other sites

I wonder how long it will take before there is rioting in the streets about the injustice of it all?! This country is f**ked!

Don't be so silly - all the plebs can be conned into rioting about is nonentities like the poll tax :lol: not the biggest pyramid scam in the history of the island. :angry:

Share this post


Link to post
Share on other sites

on the news tonight it said the south west is most expensive part of the country with average wage at £21k and average home 9 times this. But an EA said there's no problem and business is great for them!!!!!!

Share this post


Link to post
Share on other sites

on the news tonight it said the south west is most expensive part of the country with average wage at £21k and average home 9 times this. But an EA said there's no problem and business is great for them!!!!!!

I bet the EA had that hollow look in his eyes with beads of sweat forming on his head as his legs trembled knowing the ghastly truth behind the reckless bravado.

History shows that, over the past 100 years, house prices have ALWAYS remained in line with wages. Apart from the usual boom and bust bubble periods, the largest of which we are in. 5 X earnings will break a market as it did in the Great Crash. 10 times earnings....well, what can you say?

:o

Share this post


Link to post
Share on other sites

http://www.thisisdevon.co.uk/displayNode.j...;pNodeId=142722

HOUSE PRICE TIME BOMB

11:00 - 17 August 2006
"Unless we do something about it soon we will simply have a large retirement park across vast swathes of Devon."
."
Who wants to live in a county of zimmer frames, WRI teashops and perma hairstyles.
I wonder how long it will take before there is rioting in the streets about the injustice of it all?! This country is f**ked!
Molotov cocktails anyone?

Share this post


Link to post
Share on other sites

I note that the Halifax puts the price to earnings ratio at 5. 76 times for the UK as a whole.This is very misleading because it is based on full-time male earnings.Men only make up half the work force and only two-thirds of them work full-time.so the Halifax is basing its statistics on the top earning third of the workforce.A further distortion arises from using the mean wage as opposed to the medium.The middle earner earns about 75% of the mean because top earners skew the average.houses are far less affordable than 5.76 looks.But then halifax always spin their figures.

Share this post


Link to post
Share on other sites

On our local telly last night;

Poole housing one of the most expensive in the country- average wages are 20 grand average houses 250 grand.

Basic maths show it's not a viable market.

Lots of people do move into the area but unless you NEVER have to work again once you've bought your seaside home the fact that jobs are scarce and pay is low does affect YOU.

This is how EAs round here justify the market- people moving into the area bla, bla, bla. Well, unless you are that loaded that you can afford to sit on your ar$e and never work again the fact that average wages in the south west are low does impact you- how are you going to eat and pay bills FFS?!

For the retired moving here- council tax is astronomical and fuel increases will hit hard- unless your pension is huge the house prices do impact you.

I'm getting fed up with people saying that 2+2=5. People aren't earning the money to pay for overpriced houses- it's that simple.

Share this post


Link to post
Share on other sites

On our local telly last night;

Poole housing one of the most expensive in the country- average wages are 20 grand average houses 250 grand.

Basic maths show it's not a viable market.

Lots of people do move into the area but unless you NEVER have to work again once you've bought your seaside home the fact that jobs are scarce and pay is low does affect YOU.

This is how EAs round here justify the market- people moving into the area bla, bla, bla. Well, unless you are that loaded that you can afford to sit on your ar$e and never work again the fact that average wages in the south west are low does impact you- how are you going to eat and pay bills FFS?!

For the retired moving here- council tax is astronomical and fuel increases will hit hard- unless your pension is huge the house prices do impact you.

I'm getting fed up with people saying that 2+2=5. People aren't earning the money to pay for overpriced houses- it's that simple.

Poole is seeing some declines in prices according to the latest ODPM data:

http://news.bbc.co.uk/1/shared/spl/hi/in_d...ml/county30.stm

Poole

£256,011 Q:-2.2% Yoy: 3.8% 874

Purbeck

£227,634 Q: -14.7% YoY: -3.0% 261

Sources:

England and Wales

Land Registry of England and Wales. The information above is based on figures provided by the Land Registry of England and Wales.

Figures for England and Wales are for the period April to June 2006.

Share this post


Link to post
Share on other sites

I bet the EA had that hollow look in his eyes with beads of sweat forming on his head as his legs trembled knowing the ghastly truth behind the reckless bravado.

History shows that, over the past 100 years, house prices have ALWAYS remained in line with wages. Apart from the usual boom and bust bubble periods, the largest of which we are in. 5 X earnings will break a market as it did in the Great Crash. 10 times earnings....well, what can you say?

:o

I don't know how the EA has the gall to say that it's ok/fine and dandy that most people are priced out.

Share this post


Link to post
Share on other sites

And Andy Goundry, Cornwall branch chairman of the National Association of Estate Agents (NAEA), said: "We have a desperate need for housing that meets local demand."

The NHF report, released today, shows that in Devon the average house price last year was £212,028 - 11.1 times more than the average wage of £19,115.[/indent]

This article was being discussed on Radio Devon yesterday.

The NAEA guy said that house prices are due to rise 50% over the next 5 years and will then average £300K in Devon and that will exacerbate the problem. :lol::lol::lol:

So let's see - that would make house prices 16 times the average wage.

I guess it's irrelevant how high prices are to the average wage now. What's the difference, 11, 16 houses are completely out of reach for local workers.

Share this post


Link to post
Share on other sites

This article was being discussed on Radio Devon yesterday.

The NAEA guy said that house prices are due to rise 50% over the next 5 years and will then average £300K in Devon and that will exacerbate the problem. :lol::lol::lol:

So let's see - that would make house prices 16 times the average wage.

I guess it's irrelevant how high prices are to the average wage now. What's the difference, 11, 16 houses are completely out of reach for local workers.

Its a new paradigm where miraculous things happen. :lol:

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.