London home 'needs £93,000 wage'

Ron2256

wrote:

A single buyer would require the near-six-figure income to get a 90% mortgage at 3.5 times their salary.
The average wage in London is £26,000, while overcrowding rates are 2.5 times the national rate, the report said.

http://news.bbc.co.uk/2/hi/uk_news/england/london/8306120.stm

I find strange nobody spotted this article on the BBC website.

For all you, wannabe buyer in London, it's time to get a 5th job or sell a kidney, probably both, and stop winging, you never had it so good apparently.:rolleyes:

Really2

Ron2256 wrote: »

http://news.bbc.co.uk/2/hi/uk_news/england/london/8306120.stm

I find strange nobody spotted this article on the BBC website.

For all you, wannabe buyer in London, it's time to get a 5th job or sell a kidney, probably both, and stop winging, you never had it so good apparently.:rolleyes:

I must admit i cant see that (£26k) as the average wage for London. Unless it includes part time etc.
That is virtualy the same as the rest of the UK.

Wookster

Yup, this just points out what we already know. Houses are over priced at the moment and still have a long way down to go.

Ron2256

Really2 wrote: »

I must admit i cant see that (£26k) as the average wage for London. Unless it includes part time etc.
That is virtualy the same as the rest of the UK.

Well, this is from the BBC. It wouldn't surprise me if this was complete tosh. Still worth reading though, just like this forum.

The_White_Horse

this is what I have been saying all along (as I live near London). My wage is pretty fair - but not enough to buy a small run of the mill terrace house. I must earn more than a lot of people in London.

It is just unsustainable.

when my parents bought their house, in the 70's - it was 3 times my father's (then low) salary. When he sold it to move to a flat, it was the equivalent of about 10 x the average salary. He said himself, there was no way he would have been able to afford the house if he had to buy nowadays.

The whole house price issue is nonsense. they are too high. not only that, without self cert, 100% loans and ridiculous multiples, they can't be sustained. How can they be???? it is impossible.

time for people to wake up and smell the coffee.

Really2

Ron2256 wrote: »

Well, this is from the BBC. It wouldn't surprise me if this was complete tosh. Still worth reading though, just like this forum.

It's a shame they don't link to report so we could look at the data. I can't see it on the NHF website.

edit found it.
http://www.housing.org.uk/Uploads/File/HomeTruths/LONDON%20HOME%20TRUTHS%202009.pdf

Really2

To add, (not that it doesn't make London still really expensive)

Median full time is £31824
Mean Full Time is £39780

Cant see how you guys buy down their.

The_White_Horse

Really2 wrote: »

To add, (not that it does not make London still not really expensive)

Median full time is £31824
Mean Full Time is £39780

Cant see how you guys buy down their.

with great great difficulty.

but its ok, they are actually too cheap and will be rising soon.

chucky

Ron2256 wrote: »

http://news.bbc.co.uk/2/hi/uk_news/england/london/8306120.stm

I find strange nobody spotted this article on the BBC website.

For all you, wannabe buyer in London, it's time to get a 5th job or sell a kidney, probably both, and stop winging, you never had it so good apparently.:rolleyes:

it's a rubbish article Ronald - not your fault i know

they're comparing the average salary against the average property, not everyone in that salary range would buy property. they should be only comparing the average household salary vs average property.

for FTB's you should be comparing an FTB salary against an FTB property (whatever that is)

btw - property in London is very expensive and probably unaffordable to most anyway.

Really2

How drasticaly would it effect the figures if City of London prices and earnings were stripped out?

Would it be any nearer to the rest of the UK. (not for any other reason orther than I have no idea:))

For an indication 4X mean (local) single wage (both sexes not just male ) + 10% would get you a 2-3bed semi/terrace in an average area where I live.

the_ash_and_the_oak

I pointed that out on the other thread Chucky!

I'm not sure how you would remove City workers Really2. They don't live in the City of London itself (mainly because the actualy popn of the CIty is tiny). So you would only really be removing prices not wages if you did that imo?