3.5

mitchaa

thegibdog wrote: »

It's just a figure I've heard mentioned before - I had a quick search for it but couldn't find an up to date figure. Apparently it was just over £30k in 2006/07, I can't imagine that it will have increased much since then. Although maybe mitchaa's figure of £37k is correct, I work with statistics and know that figures like these tend to vary from source to source!

£32,779 in 2005/6

http://news.bbc.co.uk/1/hi/uk/7071611.stm

Although the report was written in 2007, the data in the table at the bottom is from FY 05/06, so we have gone 3yrs since then 06/07, 07/08 and 08/09.

Im sure ive seen a more upto date version, but cant seem to find it. Giving 4% for the last 3yrs would put it at around £37k today.

kennyboy66_2

Men full time MEDIAN £27102, MEAN £32817
Women FT MEDIAN £21424, MEAN £25246

National statistics 2008

mitchaa

kennyboy66 wrote: »

Men full time MEDIAN £27102, MEAN £32817
Women FT MEDIAN £21424, MEAN £25246

National statistics 2008

Yep agree, but i think someone was pointing out that the average household does not have 2 FT workers in it as women generally have time off with children and/or go back to work PT.

kennyboy66_2

IveSeenTheLight wrote: »

I think the figures you are referring to are from here
http://www.hbosplc.com/economy/includes/26_02_09Affordability.xls


I dont understand your spurious comment. The figures are factually proven

It is statistically spurious / bogus to use the UK average house price and then claim that the average buyer is made up of one woman and one man both earning the median or mean wage.

Averages are only as good as your dataset and the use of them can easily be manipluated.
In 1999 the 15 year House Price Earnings Ratio (HPER) was only 3.66

We will now go into a period when each quarter, the 25 year HPER ratio will go up (as the oldest data will be lower than each set of newly released quarterly data).

This will nicely coincide with prices continuing to fall, so that by the beginning of 2010 you will probably be able to claim that the Q1 2010 ratio is less than the 25 year average.

Despite this prices are likely to continue to fall.
In the words of Dopestar "it will melt your mind".

As the Ratio in Yorkshire and Humberside has in the past been substantially less than 3.0, I doubt folk there are getting too excited by a ratio that is still 20% higher than the 25 year average for that area.

There ain't really much point in pointing out the continued flaws in the statistics you bend to suit your point of view, you just want to believe.

"There's nowt so queer as folk" as they say east of the Pennines.

twirlypinky

mitchaa wrote: »

Yep agree, but i think someone was pointing out that the average household does not have 2 FT workers in it as women generally have time off with children and/or go back to work PT.

Not just off because of children, some households are actually just one person.

Entertainer

Rollerball wrote: »

More like double that. £200-£250K and that's not in a great area either.

You can get one bed flats (converted, bay fronted Victorian properties) in London for £140k. Crummy postcodes though.

IveSeenTheLight

kennyboy66 wrote: »

There ain't really much point in pointing out the continued flaws in the statistics you bend to suit your point of view, you just want to believe.

LOL, I gave you the link to the stats you were referring to.
Now they are my stats and they are flawed

Take what you want from stats, they are what they are and you have to understand how they are contrived.

I dont bend stats, I quote them as they are and others can take from them what they want

There are many on here that bend stats I agree with you, but I definately am not one of them

ukcarper

The thing that shows salary multiple mortgages are a very blunt instrument is interest rates up. Up until the last 10 to 20 years the most you could borrow was 4x-salary but interest rates varied from say 5 to 15% trebling repayments.

IveSeenTheLight

kennyboy66 wrote: »

Men full time MEDIAN £27102, MEAN £32817
Women FT MEDIAN £21424, MEAN £25246

National statistics 2008

Did I not quote this and provide the link in post 29?
http://forums.moneysavingexpert.com/showpost.html?p=19309447&postcount=29

Maybe these are also stats you believe I am bending :rotfl:

IveSeenTheLight

kennyboy66 wrote: »

It is statistically spurious / bogus to use the UK average house price and then claim that the average buyer is made up of one woman and one man both earning the median or mean wage.

I can accept this and ask if you know any actual data on average household incomes.
One issue to consider is that the lower end of household earners may never be able to afford to buy property, yet they would still figure in average househole income statistics.
historically, it was not the norm / given to be able to buy a property, only the rich could afford it.

kennyboy66 wrote: »

In 1999 the 15 year House Price Earnings Ratio (HPER) was only 3.66

We will now go into a period when each quarter, the 25 year HPER ratio will go up (as the oldest data will be lower than each set of newly released quarterly data).

I think you will find that the HPER ratio will go down

kennyboy66 wrote: »

As the Ratio in Yorkshire and Humberside has in the past been substantially less than 3.0, I doubt folk there are getting too excited by a ratio that is still 20% higher than the 25 year average for that area.

I do not doubt this, but as the ratio is currently 3.96 (before deposit considered) you could discuss that property is affordable in this region

i.e. a person earns £25, 250 and with a 3.5 ration would be able to get a mortgage of £88,375. Therefore currently they could buy a £100k property with a 11.625% deposit

Interestingly if you take that £100k property, you could see that their £25,250 is indeed a HPER ratio of nigh on 3.96 (current average for Y&H)
Therefore according tot he stats, house prices are affordable at 3.5 multiplier rates in their area