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Homes for FTB's at most affordable in 10 years
Comments
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IveSeenTheLight wrote: »The stats I have seen is actual income, which has increased.
As I said, I'll post the data from the ONS at the weekend.
ONS Data
2011 Provisional Data (I used the Table 7.7a - Table 7 - Place of Work by Local Authority)
2010 Revised results (Again I used the Table 7.7a - Table 7 - Place of Work by Local Authority)
If you look at the all earners tab (Full & Part Time, Male and Female) the data can be broken down into 471 local councils / regions
This data breaks down as: -
Median
198 datasets increased it's median average
244 datasets decreased it's median average
The area with the greatest median increase was St Albans at 17.152% (mean increase was 3.394%)
The area with the greatest median decrease was Copeland at -31.903% (mean decrease was 17.421%)
Mean
211 datasets increased it's mean average
252 datasets decreased it's mean average
The area with the greatest mean increase was South Bedfordshire at 28.503% (median increase was 0.467%)
The area with the greatest mean decrease was Colechester at -20.265% (median increased 2.131%)
Overall
The median line decreased by 0.561% whilst the mean line increased by 0.222%.
Therefore it appears that the Overall income average has
increased by £59 per year whilst
the median income average has decreased by £199 per year.
The great thing about these tables is that you can look at your own local area and also see the breakdown of overall full time, overall part time, male full time, male part time, female full time & female part time:wall:
What we've got here is....... failure to communicate.
Some men you just can't reach.
:wall:0 -
After recently posting anecdotal evidence, I came in for a bit of stick (not particularly from you), and this bit of (reasonable) advice from yourself......
"Seems to me the lesson to learn here for everyone is that if your not willing / able to back up the facts then is there really a point in posting the anecdote"
Indeed, I agree with you.
I could go and point you the CML data which will provide a greater data of FTBers buying property.
http://www.cml.org.uk/cml/media/press/3257
In May there were 18,100 FTBer'sThe characteristics of first-time buyer loans began to return to normal after March and April’s stamp duty effect. First-time buyers on average took out a loan of £104,000 in May, up from £97,750 in April. They also borrowed 3.21 times their income, up from 3.12 in April and they paid 19.6% of their income in capital and interest payments, up from 19.1%. All of these May figures are more in line with the typical experience over the last year. The proportion of first-time buyers buying properties valued at between £125,000 and £250,000 rose from 37% in April to 44% in May, but was not quite back at the norm of around 50% seen since 2007.
I hope that you can see that we can get data to back up the facts, rather than ask for P60's from the OP
:wall:
What we've got here is....... failure to communicate.
Some men you just can't reach.
:wall:0 -
The problems will come when in the country's current state, todays school leavers and graduates can't get a job, no hope of buying a house, even renting one. The term 'FTB' will be filed in the archives, or maybe a new term, 'MAFTB' - Middle Aged FTB.....
This thread is about affordability now. As I have said before the biggest problem facing young people is not house prices but lack of good jobs. All we can do is hope things improve other wise we will all face an uncertain future and both bears and bulls will suffer..0 -
paulmapp8306 wrote: »I wasnt saying someone on min wage could afford a house - I was using that as an example of how pay could have gone up but actual income gone down.
As to how those on pay freezes have been impacted on re rent/mortgages etc. Thats easy - there struggling more than before, having to cut back on other things - like food in some cases !!.
As for me - Im currently renting and am based in Belfast at present. Rent is just under £400/month plus £115 Council Tax, so yes cheaper than the SE - but were not just talking about the SE. Im buying in Nottingham - so not up North but the Midlands. Again though - not in the same price grouping as the SE.
We decided 5 years ago we wanted our own home when I left the forces not rented if possible, so started saving at that point. Food budget was slashed, extras like Sky and high speed broadband cut. Clothes was limited to £50/month tops. We had no holiday for 5 years, havent been out except for once a year on our aniversary (normally a meal and the flicks). The kids have swim lessons but thats it. Mobiles are PAYG and only get topped up when we have funds at the end of the month. Our "spending money" is £20/week - for all 4 of us and for everthing including that extra loaf of bread or pint of mild because we have run out.
During those 5 years we have managed (though it was tough at times) - and saved £400/month which led to a £20k deposit and £4k for legals and extras. That equates to a 15% deposit on the house we chose.
Thanks for telling me how you did it. It's quite interesting to see something from a different perspective in different locations.
What you suggested was completely alien to me, but now i can see why. Renting in a cheap (compared to many locations) area and buying in one of the cheapest areas in the UK. (The average price is half that of the national average at just 88k)
Now, that makes complete sense considering what you said. But when you initially said it, I just couldn't get my head around it and assumed you were living rent free or something! Add £300 to your rent each month and double the price of the house you are looking to buy....how would you fair then? As that's what most are talking about.0 -
Graham_Devon wrote: »Thanks for telling me how you did it. It's quite interesting to see something from a different perspective in different locations.
What you suggested was completely alien to me, but now i can see why. Renting in a cheap (compared to many locations) area and buying in one of the cheapest areas in the UK. (The average price is half that of the national average at just 88k)
Now, that makes complete sense considering what you said. But when you initially said it, I just couldn't get my head around it and assumed you were living rent free or something!
What was the moral of the story?
He and his family sacrificed 5 years on a very strict budget to save up the deposit required.:wall:
What we've got here is....... failure to communicate.
Some men you just can't reach.
:wall:0 -
#I'm sure relative income will be very different in Belfast as opposed to the south east.Graham_Devon wrote: »Add £300 to your rent each month and double the price of the house you are looking to buy....how would you fair then? As that's what most are talking about.
Indeed, according to the ONS, the mean difference is £5,767 whilst the median difference is £5,521.
This means an additional £460 (median) or £480 (mean) per month :wall:
What we've got here is....... failure to communicate.
Some men you just can't reach.
:wall:0 -
IveSeenTheLight wrote: »What was the moral of the story?
He and his family sacrificed 5 years on a very strict budget to save up the deposit required.
Right....and you believe sacrificing 5 years of your life to be able to afford a property in one of the cheapest parts of the country is a good thing?
Don't be silly ISTL.
While I will commend anyone for knuckling down and doing what they have to do, trying to make out everyone should sacrific large chunks of their young adult life, and it being a good ting is a step too far in my book!0 -
Graham_Devon wrote: »Right....and you believe sacrificing 5 years of your life to be able to afford a property in one of the cheapest parts of the country is a good thing?
Don't be silly ISTL.
While I will commend anyone for knuckling down and doing what they have to do, trying to make out everyone should sacrific large chunks of their young adult life, and it being a good ting is a step too far in my book!
Apart for perhaps in the 90s that is what people have had to do perhaps not 5 years but I would say that is because people saved before they rented and had kids. A 10%deposit would be about £18k where I am if you save £1000 a month you could save that in less than 2 years. Very difficult I know if you are renting a 3 bed house and bringing up a couple of kids but if before you do that you rent a room if a shared house it is easily achievable.0 -
Graham_Devon wrote: »Right....and you believe sacrificing 5 years of your life to be able to afford a property in one of the cheapest parts of the country is a good thing?
Don't be silly ISTL.
While I will commend anyone for knuckling down and doing what they have to do, trying to make out everyone should sacrific large chunks of their young adult life, and it being a good ting is a step too far in my book!
Home ownership is not a right.
We've been fortunate in the last generation that it has been open to more than in the past.
Were likely to be returning to an era where home ownership becomes even more harder.
Despite your desire for property ownership to be available for all, it is unfortunately not reality.
According to LR, the Avg. Price is £161,677
In Nottinghamshire the Avg. Price is £117,899
So, yes, Nottingham is cheaper than the average, however the £20k deposit would still provide 12.4% LTV to the average house price.
Remember, FTBers don't typically buy an average house, yet this instance shows how they could buy a 4 bed semi in their cheap area.
Potentially the samedeposit could still secure a family home around much of the country.:wall:
What we've got here is....... failure to communicate.
Some men you just can't reach.
:wall:0 -
Apart for perhaps in the 90s that is what people have had to do perhaps not 5 years but I would say that is because people saved before they rented and had kids. A 10%deposit would be about £18k where I am if you save £1000 a month you could save that in less than 2 years. Very difficult I know if you are renting a 3 bed house and bringing up a couple of kids but if before you do that you rent a room if a shared house it is easily achievable.
Indeed, it's obviously easier if you focus before you have children.
Graham's premise is that you can't do this with kids, yet someone has advised that they have.
Maybe Graham believes you should have the cake and eat it :wall:
What we've got here is....... failure to communicate.
Some men you just can't reach.
:wall:0
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