Thursday, January 31, 2008

Affordability problems are still close to record levels

Cost of buying a home rose 351% in 12 years

The cost of becoming a home buyer in Great Britain has worsened by 351% since the most accessible point in 1996. The Royal institution of Chartered Surveyors says its accessibility index shows that a first-time buyer couple, who are both on salaries of £26,595 after taxes, now have to save up to 104% of joint take home pay, to build up the £27,729 needed for upfront costs.

Posted by jack c @ 12:29 PM (305 views)
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5 thoughts on “Affordability problems are still close to record levels

  • Affordability????

    Surely you guys must see now that this sort of news is all old world stuff.

    The world has changed; true its changed fast, but you need to check out the new rules.

    Houses are not going to get more “affordable” with HPC- forget it; they are going to get TOXIC.

    People are not going to want to “invest” in a depreciating asset, which has soaring costs associated with it… because it is a liability: anyway they actually wont have a choice.

    This is NOT business as usual- “at last the average guy on the street can afford the average house- hurray, victory for the common man”. NO!!

    This is a credit bubble bursting. This means most real assets that common people hold (houses, pensions, cars, boats etc) are going to plummet in value. -Terrible times for the common man.

    Just a matter of time before the P45s roll out.

    This is bad guys.
    The common man never does well when credit collapses; the world isn’t run by them or for them.

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  • waitingfor hpc says:

    what goes up – always comes down. Live with it. The average working man who did not MEW or borrow will be just fine and better off.

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  • wfhpc-
    should read “the tiny minority of working men who did not MEW or borrow, AND who keep their job- will be just fine”
    Actually- may be the best opportunity he has ever been given.

    But your comment is just right; we have to live with it.

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  • OK – so it’s a credit bubble bursting. And that’s bad. We get that. We also get that it was the inflating of the credit bubble that has caused house prices to become unaffordable.

    The fact remains that it should not have been allowed to inflate in the first place, and that’s what many on this site have been saying for a long long time.

    We need houses to live in and so the high house prices are what has the negative social impact (inflating bubble), and if people had realised that it was negative years ago, it may have prevented the bubble inflating as much as it has. The two things go hand in hand and I think most people on this site understand that. They are (on average) the more prudent of society and when the inevitable (INEVITABLE) shake-down comes, we will see who has been acaught with their trousers down – it is unlikely to be any HPC regulars.

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  • Good. I want to see more of this.

    The worse it gets, the sooner it will be over.

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