Monday, Nov 20, 2006

Summary of the housing situation today in UK and Europe

BBC News: Homes In The UK

Of the 25 million homes in the UK, about seven out of 10 are owner-occupied. The number of home owners has risen by more than one million since 1997 alone. House prices have been booming for more than a decade - almost tripling since 1996. The sharp increase has far outpaced wage rises. It has led to fears that many people will not be able to buy a first home, or a larger one. The typical first time buyer is now 33-years-old and takes five years to save the average 24,000 deposit (rising to 44,000 in London). It is thought that four out of 10 people buying a first home now rely on parental help. A shortage of homes has contributed to high house prices. In England, about 155,000 new households form each year, but as few as 120,000 homes are built. UK homes are among Europe's most expensive, but spending on housing as a share of income is fairly low - one fifth, compared to quarter in Germany and a third in Spain.

Posted by scumbag @ 12:18 PM (1822 views)
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6 Comments

1. little professor said...

Great in-depth special report on the current housing situation. Check out the "prices vs wages" graph to see how crazy things have become.

Monday, November 20, 2006 02:11PM Report Comment
 

2. sold 2 rent 1 said...

little professor,

How do you explain:-

"UK homes are among Europe's most expensive, but spending on housing as a share of income is fairly low - one fifth, compared to quarter in Germany and a third in Spain"

Monday, November 20, 2006 02:38PM Report Comment
 

3. paul said...

Yes, there's definitely some deft selective statistical manipulation there. I would doubt that the comparison data are from the same time period.

So they'll happily say that prices are the most expensive according to this month's data (which they publish and broadcast loudly and religiously), but the only income data they have is from over 5 years ago I'll bet.

Monday, November 20, 2006 05:06PM Report Comment
 

4. Dominic said...

I wonder where the 18% of income figure came from. It doesnt seem very feasable. A 70 grand mortgage will cost arround 650 a month suggesting an income of 40 K . Is this really the average ?
Also, where did the 5 million single people come from between 1990 and today? No other group went down. Did teh UK population really grow by 5 Million in 10 years ?

Monday, November 20, 2006 07:23PM Report Comment
 

5. nearly30 said...

Probably more sloppy journalism - whoever wrote it just opened their office window and shouted at any passing Londoner and asked what their income is. Looks like classic London/SouthEast bias to me.

I live 'Tup North' - and you can bet the figure of 18% income on mortgages is way off the mark - more like 60%!!!!

If thereis a crash soon - it will be up here - wages are not going up at all - in fact my area has had a terrible hit from job losses - especially full time jobs - and a major move towards contracted full-time & a massive increase in part-time hours.

Which is sh*t - as I have to look for a new job come March 2007!!!

Monday, November 20, 2006 08:26PM Report Comment
 

6. Houses_for_nesting_not _investing said...

The South is only a fools goldmine anyway, i should know i come from southampton [aka any further south and my feet would be wet]

Monday, November 20, 2006 09:43PM Report Comment
 

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