Jump to content
House Price Crash Forum
laurejon

House Prices Under Labour Risen Four Times Faster Than Pay

Recommended Posts

House prices have risen four times faster than pay

The cost of buying the average home in England has gone up more than four times faster than the wage of the average employee over the last decade, according to a new TUC analysis of official statistics, published today (Wednesday).

In 1997 the average house could be bought for £60,000, equivalent to three years and six months of the then average wage of £17,000. But since then house prices have risen by 180 per cent taking the average house to £168,000, while the average wage has gone up by only 43 per cent, to just over £24,000. This means that it now takes nearly seven years of an average employee's wage to buy an average house.

There are some stark differences across the country. While well-off London boroughs have the most expensive houses, the gap between pay and house prices has grown the most in West Sussex where prices have gone up more than nine times faster than pay, followed by Waltham Forest in east London and Luton. (table below)

The London boroughs with the most expensive housing dominate the list of the top ten local authority areas with the biggest current gap between the pay of local employees and local house prices, but Dorset and Rutland also feature.

In Kensington and Chelsea it now takes more than 20 years of the local average salary of £26,000 to buy the average house, which now costs more than half a million pounds. As home to many of London's 'millionaire rows', Kensington and Chelsea is well clear of the rest of the table, but even in Dorset, Rutland and the more typical London borough of Merton, the average house still costs more than nine years of an average local employee's wages.

TUC General Secretary Brendan Barber said: 'Housing is by far and away the biggest cost for most people at work. These stark figures bring alive the housing crisis. They show just how quickly buying your own home has gone out of the reach of many working people. It is striking that house prices seem to have gone up in line with the pay of top directors and the super-rich, rather than middle and low earners.

'Of course sustained low interest rates and an excess of demand over supply have also helped fuel higher prices, but it is clear that demand at the top of the market from those with city bonuses and inflated boardroom pay has fed down to the rest of the market.

'Our research shows just how much housing has become an engine of inequality. If you are lucky enough to own your own home you have got that bit richer every day than those that do not.

'The Government is right to have put a new emphasis on housing, though it's a shame that this didn't start earlier. We desperately need more quality affordable homes to rent and to buy. Unions stand ready to back new housing policies that provide quality homes in proper communities that respect the environment, but if we are to build enough homes ministers will need to take on at least some of the vested 'nimby' interests that stand in their way.'

Share this post


Link to post
Share on other sites
When will you get it in your head this government IS the Tory party!

Absolutely.

A proper Labour government would have redistributed this bubble in a trice, with some property taxes on capital gains on your home and BTL properties. That would have prevented the BTL "my sister lives there" fraud as everyone would have paid taxes.

Plus a Labour government wouldn't have sold off the social housing stock in the first place, that it took so long to build up.

Share this post


Link to post
Share on other sites

Labour are the Tories?

So lets get this straight, you complain that the Tories killed HPI by raising interest rates, you complain that HPI is rampant today as Labour will not use interest rates as they should be used.

Are you on the same planet as me?

Share this post


Link to post
Share on other sites

If you ask me they're all the bl00dy same, voting only encourages them. We need a BIG change, doing away with the corrupt party adversarial and first-past-the-post election system which just encourages gerrymandering and self-interest, and means that a party can have a majority in the commons with only one in five votes.

Our leaders should be selected in the same way juries are, to sit one three-year term, swearing some kind of oath to the Queen (yes, her!) that having been randomly selected to represent our people they will do it to the absolute best of their ability and will not be corrupt and do it for their own ends.

Put the little man right back in the heart of his country's affairs, give him a say.

By all means point out flaws, improvements etc in this basic premise but it can't be any worse than the unrepresentative rubbish we have at the moment.

Share this post


Link to post
Share on other sites
When will you get it in your head this government IS the Tory party!

Agreed, that is their failure as a labour party, they have benefited the well off at the expense of the lowest paid in society, imagine a party so right wing that they allow illegal immigrants in order to take your minimum wage job. Cant imagine what the Tories are dreaming up now, last time they got in, their adgenda was based on punishing the working class for having the cheek to demand a decent life, supect next time it will be indentured servitude and of course the mimimum wage as it is will be toast by the end of the first budget. As for housing and the tories,(laurejons current theme) they didnt give a monkeys slippery niknak about housing except for their own kind, selling off the council housing has ultimatly led in part to where we are today, and the banning of any money being put back into social housing has also magnified the issue (something else Labour failed to apreciate)

Share this post


Link to post
Share on other sites
Agreed, that is their failure as a labour party, they have benefited the well off at the expense of the lowest paid in society, imagine a party so right wing that they allow illegal immigrants in order to take your minimum wage job. Cant imagine what the Tories are dreaming up now, last time they got in, their adgenda was based on punishing the working class for having the cheek to demand a decent life, supect next time it will be indentured servitude and of course the mimimum wage as it is will be toast by the end of the first budget. As for housing and the tories,(laurejons current theme) they didnt give a monkeys slippery niknak about housing except for their own kind, selling off the council housing has ultimatly led in part to where we are today, and the banning of any money being put back into social housing has also magnified the issue (something else Labour failed to apreciate)

How on earth did they punish the working classes?

Are you talking about the unions that held the country to ransom every few weeks?

I am working class and I can assure you under the Tories I paid less tax, I had better services, and I had no problem in owning my own home. I did this on a wage of 23k, and I wasnt penalised via council tax for living in a house.

If someone can point out how much better off I am today despite earning 50k pa then I would like to know.

Share this post


Link to post
Share on other sites
So lets get this straight, you complain that the Tories killed HPI by raising interest rates, you complain that HPI is rampant today as Labour will not use interest rates as they should be used.

They let a housing bubble develop in the 80's. It got killed in an inept attempt to stay in the ERM. If I thought for one second they would do anything about the problem I would vote for them.

The average Tory voter is after all the person with the most to gain from all this. Cameroon wont do anything to upset that apple cart. Regardless of what Cameroon says, you still get the impression the majority of the Tory party think that giving votes to women was a mistake.

Although they could be right about that one come to think of it.

Share this post


Link to post
Share on other sites
If someone can point out how much better off I am today despite earning 50k pa then I would like to know.

Is that all??? No wonder you have a chip on your shoulder... thought we'd be allowed to be one of the landed gentry by now did we??? Hmmm?

You are not allowed to have a slice of the pie. You are a serf, whether a taxed one or an indebted one. Crying about it isn't going to change anything.

Get this: The world that you so obviously have rose tinted spectacles for has gone. It will not come back. Ever.

Share this post


Link to post
Share on other sites
You are not allowed to have a slice of the pie. You are a serf, whether a taxed one or an indebted one. Crying about it isn't going to change anything.

Get this: The world that you so obviously have rose tinted spectacles for has gone. It will not come back. Ever.

Not convinced. I remember everybody moaning exactly the same at the last peak in the late eighties and of course it reversed to the point where houses became cheap.

This time round is slightly different; the housing bubble is larger and wages have been held down for years by uncontrolled immigration. Both of these will reverse at some point. Houses will be cheap again one day.

Share this post


Link to post
Share on other sites

How the hell can people call this Labour govt a bunch of Tories ? True Conservatism makes people take and accept responsibility for their own lives. Old fashioned Socialism binds people to the state, making people dependant on it for their livelihood - just as is happening. The modern Left wingers of today also hate the idea of Britishness and our past and want to destroy it - hence mass immigration and tying us more to Europe so our cultural identity is lost.

And as for referring to the Conservative govt failure of the ERM in the 1990s, I would like to point out that both the Labour party and the TUC at the time fully supported entry. After a failed attempt to stay in, at least the Tories realised it wasn't working and pulled us out of it. Who knows if Labour would have done the same.

Almost every policy today is classic Socialism :

- tax and spend with no concern for wasteage and results

- social control and failed social engineering

- constant propaganda and manipulation. Unemployment down - well, if you stop including 4 million people in the figures, it would be. Exam results up - well, if you make the exams easier and lower the pass mark, then its fairly obvious.

The economy they've basically left to its own devices - its beginning to spiral out of control, and they don't have a clue what to do about it. And as for their bizarre foreign policy....

Share this post


Link to post
Share on other sites
How the hell can people call this Labour govt a bunch of Tories ? True Conservatism makes people take and accept responsibility for their own lives. Old fashioned Socialism binds people to the state, making people dependant on it for their livelihood - just as is happening. The modern Left wingers of today also hate the idea of Britishness and our past and want to destroy it - hence mass immigration and tying us more to Europe so our cultural identity is lost.

And as for referring to the Conservative govt failure of the ERM in the 1990s, I would like to point out that both the Labour party and the TUC at the time fully supported entry. After a failed attempt to stay in, at least the Tories realised it wasn't working and pulled us out of it. Who knows if Labour would have done the same.

Almost every policy today is classic Socialism :

- tax and spend with no concern for wasteage and results

- social control and failed social engineering

- constant propaganda and manipulation. Unemployment down - well, if you stop including 4 million people in the figures, it would be. Exam results up - well, if you make the exams easier and lower the pass mark, then its fairly obvious.

The economy they've basically left to its own devices - its beginning to spiral out of control, and they don't have a clue what to do about it. And as for their bizarre foreign policy....

All above absolutely correct, our economy has been based upon the Government Spending, not real productive earning.

Obviously no Government can continue to spend unabated forever, and we are now very close to that juncture. Take a look at the currency markets, the UK is nearing bankruptcy.

If you like your housing benefit, your tax credits, your lack of public services then enjoy what you have left as its not going to be around some time very soon. We are effectively bankrupt, and so is British Business when the credit squeeze identifies that business is overborrowed and not worth the paper written on the balance sheets.

Share this post


Link to post
Share on other sites
How the hell can people call this Labour govt a bunch of Tories ? True Conservatism makes people take and accept responsibility for their own lives. Old fashioned Socialism binds people to the state, making people dependant on it for their livelihood - just as is happening. The modern Left wingers of today also hate the idea of Britishness and our past and want to destroy it - hence mass immigration and tying us more to Europe so our cultural identity is lost.

And as for referring to the Conservative govt failure of the ERM in the 1990s, I would like to point out that both the Labour party and the TUC at the time fully supported entry. After a failed attempt to stay in, at least the Tories realised it wasn't working and pulled us out of it. Who knows if Labour would have done the same.

Almost every policy today is classic Socialism :

- tax and spend with no concern for wasteage and results

- social control and failed social engineering

- constant propaganda and manipulation. Unemployment down - well, if you stop including 4 million people in the figures, it would be. Exam results up - well, if you make the exams easier and lower the pass mark, then its fairly obvious.

The economy they've basically left to its own devices - its beginning to spiral out of control, and they don't have a clue what to do about it. And as for their bizarre foreign policy....

I think the point being made is that NL has taken a lot of Tory strengths and used them as their own.

Spin was rampant in the Thatcher era, but obviously not as bad as it is now.

Fiddling the unemployment figures was a Tory master stroke: You are only unemployed if you are on benefit. Sorry, you don't qualify for benefit.

The ERM is a tricky one because the Right were correct. I remember hearing Alan Walters talking about the ERM as a disaster, saying you should just go ahead and have a single currency if you want it for political reasons (there is no economic reason for it, he argued). Hence Norma Lamont singing in the bath.

Leaving the economy to its own devices is another Tory cloak NL have stolen.

I am willing to concede that in many areas, NL is no different to OL, particularly in the realm of being unable to allow people to make their own choices, and being over controlling, Nanny-State, don't think for yourselves, we know being overweight is bad, we know that CO2 is what is causing Global Warming. We know there are WMDs in Iraq. And we are going to interfere in your life as a result.

I have no love for this government either, but one of the reasons the Tories can't get back in is because a lot of Tory platforms have been kicked out from under them.

Share this post


Link to post
Share on other sites
How on earth did they punish the working classes?

Are you talking about the unions that held the country to ransom every few weeks?

I am working class and I can assure you under the Tories I paid less tax, I had better services, and I had no problem in owning my own home. I did this on a wage of 23k, and I wasnt penalised via council tax for living in a house.

If someone can point out how much better off I am today despite earning 50k pa then I would like to know.

Is that all you are interested in, your pocket?

What about the fact that democracy is non-existant?

Or that whoever is in power, they all become apologists for imperisalism & Britain's roll in some of the worst human rights abuses in the world alongside the US & the media doesn't even care?

Share this post


Link to post
Share on other sites
Is that all you are interested in, your pocket?

What about the fact that democracy is non-existant?

Or that whoever is in power, they all become apologists for imperisalism & Britain's roll in some of the worst human rights abuses in the world alongside the US & the media doesn't even care?

I dont think you would find that Mrs T would have sent our troops to attend an illegal invasion of Iraq, and she certainly would not have left them there without the resources to do the job.

Share this post


Link to post
Share on other sites
I dont think you would find that Mrs T would have sent our troops to attend an illegal invasion of Iraq, and she certainly would not have left them there without the resources to do the job.

You're right. She sent them to die in the Falklands instead to protect some sheep.

Share this post


Link to post
Share on other sites
Guest pioneer31
When will you get it in your head this government IS the Tory party!

Wrong

Labour are worse.

Share this post


Link to post
Share on other sites
House prices have risen four times faster than pay

The cost of buying the average home in England has gone up more than four times faster than the wage of the average employee over the last decade, according to a new TUC analysis of official statistics, published today (Wednesday).

In 1997 the average house could be bought for £60,000, equivalent to three years and six months of the then average wage of £17,000. But since then house prices have risen by 180 per cent taking the average house to £168,000, while the average wage has gone up by only 43 per cent, to just over £24,000. This means that it now takes nearly seven years of an average employee's wage to buy an average house.

There are some stark differences across the country. While well-off London boroughs have the most expensive houses, the gap between pay and house prices has grown the most in West Sussex where prices have gone up more than nine times faster than pay, followed by Waltham Forest in east London and Luton. (table below)

The London boroughs with the most expensive housing dominate the list of the top ten local authority areas with the biggest current gap between the pay of local employees and local house prices, but Dorset and Rutland also feature.

In Kensington and Chelsea it now takes more than 20 years of the local average salary of £26,000 to buy the average house, which now costs more than half a million pounds. As home to many of London's 'millionaire rows', Kensington and Chelsea is well clear of the rest of the table, but even in Dorset, Rutland and the more typical London borough of Merton, the average house still costs more than nine years of an average local employee's wages.

TUC General Secretary Brendan Barber said: 'Housing is by far and away the biggest cost for most people at work. These stark figures bring alive the housing crisis. They show just how quickly buying your own home has gone out of the reach of many working people. It is striking that house prices seem to have gone up in line with the pay of top directors and the super-rich, rather than middle and low earners.

'Of course sustained low interest rates and an excess of demand over supply have also helped fuel higher prices, but it is clear that demand at the top of the market from those with city bonuses and inflated boardroom pay has fed down to the rest of the market.

'Our research shows just how much housing has become an engine of inequality. If you are lucky enough to own your own home you have got that bit richer every day than those that do not.

'The Government is right to have put a new emphasis on housing, though it's a shame that this didn't start earlier. We desperately need more quality affordable homes to rent and to buy. Unions stand ready to back new housing policies that provide quality homes in proper communities that respect the environment, but if we are to build enough homes ministers will need to take on at least some of the vested 'nimby' interests that stand in their way.'

For the past 10 years we have suffered rising taxes, a houseing bubble, declining competetiveness, mass immigration, declining education and declining public services. This is Tony Blair's legacy. Who is going to inherit this legacy? Well according to David Cameron, he is. Did he make a slip of the tongue? It seems not. George Osborne has now promised to match Tony Blair's profligacy on public spending.

David Cameron has probably won over a few thousand wealthy Guardian readers but from my perspective he is the Conservatives answer to David Brent.

Share this post


Link to post
Share on other sites
Guest pioneer31
Absolutely.

A proper Labour government would have redistributed this bubble in a trice, with some property taxes on capital gains on your home and BTL properties. That would have prevented the BTL "my sister lives there" fraud as everyone would have paid taxes.

Plus a Labour government wouldn't have sold off the social housing stock in the first place, that it took so long to build up.

which proper Labour govt are you referring to? The one before this which left the country in ruins?

Share this post


Link to post
Share on other sites
Guest Charlie The Tramp

Who was in power when HPI hit 36% per annum

http://news.bbc.co.uk/1/hi/uk_politics/vot...age/4446089.stm

It peaked at over 36% per annum - a level never seen before or since in the UK - the very same year that the three day week was introduced. A move usually associated with the economic hardship of the 1970s.

Come on chaps let`s get the facts right. :rolleyes:

Harold Wilson's 1974-76 Labour government exhibited the worst house record on house price stability with falls of 13% a year.

Yes I must say I liked Harold, went from my FTB maisonette to a 4 bed detached thanks to him. :D

Share this post


Link to post
Share on other sites
I dont think you would find that Mrs T would have sent our troops to attend an illegal invasion of Iraq, and she certainly would not have left them there without the resources to do the job.

Are you sure?

Thatcher supported Saddam's brutality against his own people with weapons & aid.

She & Regean had a proxy war with Iran (amongst others), sending Arms & Aid to Iraq.

Ironically, they also sent arms to Iran.

In fact, when Saddam gassed the Kurds, not only did she & her govn. pretend it was Iran's fault for about a year to cover

up his attrocities , they prevented scientists from sending the Kurds chemical suits to save thier lives.

Are we talking about the same 'Mrs T' here?

Share this post


Link to post
Share on other sites

I think things are going to have to get much worse in this country before they can get better. Mark my words, they will get worse, much worse if we keep heading in the direction were going in at the moment.

I think the only hope we have now is to fragment this country, split up the union. Each have their own governments, It's the only way forward in my view.

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...

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 355 The Prime Minister stated that there were three Brexit options available to the UK:

    1. 1. Which of the Prime Minister's options would you choose?


      • Leave with the negotiated deal
      • Remain
      • Leave with no deal



×
×
  • 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.