UK household savings lowest in 40 years say ONS

tomterm8

I guess maybe the ONS Social Trends survey was brought out today? In which case, it would only talk about old data (data that has gone past its final revision)... and a BBC newsie didn't check recent data?

Thrugelmir

tomterm8 wrote: »

I guess maybe the ONS Social Trends survey was brought out today? In which case, it would only talk about old data (data that has gone past its final revision)... and a BBC newsie didn't check recent data?

Some providers of statistical information are allowed to make estimated returns then later on file final definative figures.

Really2

tomterm8 wrote: »

I guess maybe the ONS Social Trends survey was brought out today? In which case, it would only talk about old data (data that has gone past its final revision)... and a BBC newsie didn't check recent data?

I just tried something. Gross Disposable income at the end of the nominal bottom in the last crash was £110884m

Now it is £242930M so disposable income has gone up 220%

House price at the bottom 1993 was £50K

So X the average house 1993 (£50K) + increase in disposable income (220%) = £160K average house.

I think the link to housing cost has got to be disposable income, nothing to do with the average wage etc.

The figure is far to close to be a fluke, Just done a few dates and it seems to be very close.
Interesting.

drc

stueyhants wrote: »

BBC

People in the UK are saving less than at any time in the past 40 years, according to the Office for National Statistics (ONS).
The household saving ratio in the UK in 2008 was 1.7% of total resources, the lowest recorded since 1970, and well below the 7.6% average for that period.

I thought people saved more in times of reccession and hardship? I do hope people are using their savings wisely to pay down debt rather than fuel a consumption binge.

Under Labour the more prudent you are the less access to help (benefits) should you lose your job or home. You are expected to use up all your savings. No savings = access to various benefits so for many people, saving is a mugs game.

Thrugelmir

Really2 wrote: »

I just tried something. Gross Disposable income at the end of the nominal bottom in the last crash was £110884m

Now it is £242930M so disposable income has gone up 220%

House price at the bottom 1993 was £50K

So X the average house X increase in disposable income = £160K average house.

I think the link to housing cost has got to be disposable income, nothing to do with the average wage etc.

The figure is far to close to be a fluke, Just done a few dates and it seems to be very close.
Interesting.

You need to factor in that lenders do run their overall mortgage books at certain multiples. Despite the range of mortgages available. Only a certain amount of money is lent at 90% ltv, 80% ltv, 75% etc. In the end a loan book normally comes back to 3 - 3.5 times income. The difference to average house prices being the deposit.

Not a precise science but a good indicator.