Typical wage £20K. Typical house £150K

the_ash_and_the_oak

skiTTish wrote: »

20 k is not 'average' I would say its the lower end of the pay scale
And traditionally buying a house has never been an option for people at the lower end of the pay scale ,thats what social housing is for.

Owner Occupancy stats show it is more of an option today than it was 40 years ago - credit has gotten cheaper and more easily accessible to a steadily growing proportion of society - increasing the capital price - if this pattern of the last 4 decades or so, of cheaper and more accessible finance, continues then this will be a big driver for prices, with increasing owner occupancy stats (in a way this is the strange thing, the higher the capital price - the easier to buy)

lieutenant_dan

nearlynew wrote: »

I don't give a f*ck about statistics or interest rates.

All I know is the "thickies" that I went to school with, and I still see 30 years later, are all home owners wih £200-300k houses, despite having left school with no qualifications.

They started out as building labourers, warehouse men, shop assisstants, window celaners, taxi drivers etc...........

.....................and are still doing the same.


Some kid starting out today could never do the same.



When it comes down to being disadvantaged because of when you were born, things are really f*cked up.

Good post.

If you look around there's loads of people in their 50s/60s with their mortgages paid off having done extremely modest, manual jobs (and this is with moving straight into a 2/3bed house, not working up the ladder)

Obviously if they were young and starting out now, they would never have gotten close to owning the same type of property. We're in the strange situation of above average wage owner first time buyers being able to buy modest accomodation only, 10/20 years ago they would have decent accomodation to match the decent salary.
Another interesting point raised in the thread is of the government potentially paying rent for retirees who have never been able to buy and been stuck renting for 40 years+. Surely this is a big drain on the system, especially as retirement could mean a period of 20 years+. The housing market has some correction downwards still to make, or the long term consequences for this generation and the govt that supports them could be serious.

PasturesNew

skiTTish wrote: »

20 k is not 'average' I would say its the lower end of the pay scale

I am returning to this point as mitchaa just posted the link to the latest salary stats and where I live £20k is the median salary for full-time females. £20k is the median for lots of people in lots of regions if you scan down the list.

tek-monkey

All I know is that the student loans company thinks the average wage is a lot higher, more like £28k. I am glad of this, as I don't have to pay my loans back yet

ses6jwg

I just graduated from University in May 2:1 degree in Politics & History OK not vocational but a good degree from a good University currently earning 19.5k p.a.

Most of my friends are on similar wages and some of them did things like engineering, physics, optometry.

IveSeenTheLight

the_ash_and_the_oak wrote: »

Owner Occupancy stats show it is more of an option today than it was 40 years ago - credit has gotten cheaper and more easily accessible to a steadily growing proportion of society - increasing the capital price - if this pattern of the last 4 decades or so, of cheaper and more accessible finance, continues then this will be a big driver for prices, with increasing owner occupancy stats (in a way this is the strange thing, the higher the capital price - the easier to buy)

I agree with what you are saying, but it is unlikely that owner occupier stats will increase

It's highly unlikely that the owner occupier stats will increase as the only stats I've seen on here are in percentage terms.
70%ish owner occupancy is relatively high when you consider the other 30% is made up of social and private rental

You are correct in that the increase in the percentage is a marker of how the demand (desire and ability) rose to become owners and as such how house prices have increased

What we are now seeing is that the limited supply of quality property, means that the properties are being limited to those with higher financial capabilities.

it would appear that NearlyNew would like a situation where the people without qualifications can all become home owners. For that to happen, there needs to be a vast increase in available properties, something I cannot envisage happening anytime soon to that level.

IveSeenTheLight

PasturesNew wrote: »

I am returning to this point as mitchaa just posted the link to the latest salary stats and where I live £20k is the median salary for full-time females. £20k is the median for lots of people in lots of regions if you scan down the list.

There is limited quality properties for sale.
This means that the people buying them would appear to be those better financially situated than the median average, outbidding those on lower saleries.

It's getting very repetative saying this, but if people are expecting properties to be available to the median average single salary earners, then there needs to be a mass increase of the supply of properties of sufficient quality to support the median average single salary buyer being able to afford them.

the_ash_and_the_oak

IveSeenTheLight wrote: »

I agree with what you are saying, but it is unlikely that owner occupier stats will increase

It's highly unlikely that the owner occupier stats will increase as the only stats I've seen on here are in percentage terms.
70%ish owner occupancy is relatively high when you consider the other 30% is made up of social and private rental

You are correct in that the increase in the percentage is a marker of how the demand (desire and ability) rose to become owners and as such how house prices have increased

I don't think owner occupancy stats will rise either! There was a big 'if' in my post - if the improving direction of the cost/availability of credit of the last 40 years continues then the upward direction of oo-stats/prices will also follow. If cost/availability turns, a similar effect will be had on oo-stats/prices

IveSeenTheLight wrote: »

What we are now seeing is that the limited supply of quality property, means that the properties are being limited to those with higher financial capabilities.

Which imo will turn out to be something of a problem for the existing holders of non-quality property

IveSeenTheLight

the_ash_and_the_oak wrote: »

I don't think owner occupancy stats will rise either! There was a big 'if' in my post - if the improving direction of the cost/availability of credit of the last 40 years continues then the upward direction of oo-stats/prices will also follow. If cost/availability turns, a similar effect will be had on oo-stats/prices

I can foresee that prices could still rise and the percentage of OO's drops.
I don't believe they are directly co-related.
Other factors such as properties bought for private rental or if social housing was to increase would have a more direct bearing than house prices on the percentage of OO's

the_ash_and_the_oak wrote: »

Which imo will turn out to be something of a problem for the existing holders of non-quality property

Will it?
Is it a problem at the moment for the number of properties that are not of sufficient quality?
I know a number of properties left empty that could be refurbished or sold on to be redeveloped but have not been?
Why is that?

If you were referring to people who are trying to sell and have a less competative property, the market will set the rate at some point assuming an agreement between the seller and buyer can be met

nearlynew

skiTTish wrote: »

And traditionally buying a house has never been an option for people at the lower end of the pay scale ,thats what social housing is for.

I love it when HPI cheerleaders come out with this one.

I bet you also think it's bad when someone gets repossessed because they can't pay their mortgage and that the government should help them stay in their house.