MSE news 'House price crash is over'

chucky

westv wrote: »

It will be interesting to see what happens to mortgage rates once the base rate starts to move up again.

the current margin on fixed rates is about 3%-3.5% above BOE base rate.

historically it was around 2%, at times there were fixed rates that were closer than 2% to base rates.

two scenarios - either the base rate goes up and banks maintain this 3% margin or they do this and the mortgage market becomes more competitive and there forced to reduce this margin.

it looks like base rates will be very low for most of if not all of 2010.
we're a long way away from the mortgage market being competitive or base rates going up so it will be interesting.

chucky

Alan_M wrote: »

The office of National Statistics publish the earnings (my understanding is this is based on PAYE from employers).

in 2008 the national mean was in the region of £26,000 with London being some £10,000 above that.

If someone can provide the link it would be helpful, I've searched but can't find it.

It was quite an eye opener actually. It certainly surprised me.

not sure if it's the same survey you talking about. this one is taken from near on 30 million people.
http://www.statistics.gov.uk/downloads/theme_labour/ASHE_2008/tab7_7a.xls

Really2

Alan_M wrote: »

The office of National Statistics publish the earnings (my understanding is this is based on PAYE from employers).

in 2008 the national mean was in the region of £26,000 with London being some £10,000 above that.

If someone can provide the link it would be helpful, I've searched but can't find it.

It was quite an eye opener actually. It certainly surprised me.

Looking at the link chuky posted Mean male full time wage is £56K:eek: .for london...
Now that's not a bad average:)

Heyman_2

nearlynew wrote: »

Are you saying that this time next year average price will be higher?

Well my Crystal Ball appears to be on the blink at the moment. Good thing yours appears to be in full working order though.

I guess if they are higher then next year you could always give your 'rewired' user account a run-out.

Alan_M_2

Really2 wrote: »

Looking at the link chuky posted Mean male full time wage is £56K:eek: .for london...
Now that's not a bad average:)

Actually for London that list reads:

All jobs:

£29,260 median
£40.354 mean

Full Time

£32,778 median
£46,462 mean

Not sure where you got £56k - is that central london (i.e. the square mile) which would of course be higer...after all it's where all our MP's are;)

EDIT:

Yup found what you did:-

Full time Male

36,256 median
54,628 mean

So the very very big salaries at the top end of the scale are creating a larger spread between to two.

Interesting comment on Mean vs Median HERE

In my mind median is more realistic as it smooths out the weighted top heavy salaries.....but they are all statistics at the end of the day so can be interpreted as you wish.

chucky

Alan_M wrote: »

Actually for London that list reads:

All jobs:

£29,260 median
£40.354 mean

Full Time

£32,778 median
£46,462 mean

the Male jobs are even higher :eek:

Really2

Alan_M wrote: »

Actually for London that list reads:

All jobs:

£29,260 median
£40.354 mean

Full Time

£32,778 median
£46,462 mean

Not sure where you got £56k - is that central london (i.e. the square mile) which would of course be higer...after all it's where all our MP's are;)

For a male full time it is, sorry £54K I need new glasses (hand on I don't ware any.)
London 1,322 36,256 4.2 £54,628 3.5 18,565 23,625 25,836 27,915 31,869 41,229 48,833 54,414 61,351 93,446

The reason I quoted male full time as most bears seem to think a house purchase should be based on one male wage.:)

westv

Alan_M wrote: »

Not sure where you got £56k - is that central london (i.e. the square mile) which would of course be higer...after all it's where all our MP's are;)

No. Our MP's are in the City of Westminster. The "square mile" is the City of London.

Dan:_4

brit1234 wrote: »

House prices will return to normal values,

You may have your own assumption but normal values for 99.9% of the country is now set at 2007 levels.

Alan_M_2

westv wrote: »

No. Our MP's are in the City of Westminster. The "square mile" is the City of London.

Ahh, so in the statistics what does "Central London" cover?