Nationwide: +1% MoM +10.5% YoY

Percy1983

Out of interest how many of your homeowners could afford to buy the house you live in at there current value? (As in you are 20 years younger and don't own a house)

System

I'd only be 8, so no.

ukcarper

Percy1983 wrote: »

Out of interest how many of your homeowners could afford to buy the house you live in at there current value? (As in you are 20 years younger and don't own a house)

A better question would be. Out of interest how many of you homeowners could afford to buy the first house you bought at current value? (As in you are 20 years younger and don't own a house). The answer is yes there is a similar house for sale which I could buy with a 4x joint mortgage and that is with my wife’s part time salary and the equivalent of my old salary. The mortgage would be bigger in relation to my salary i.e. 4x instead of 3.5 then.

Really2

I would be 14 and my house would not be built. So double no from me.

Really2

ukcarper wrote: »

A better question would be. Out of interest how many of you homeowners could afford to buy the first house you bought at current value? (As in you are 20 years younger and don't own a house). The answer is yes there is a similar house for sale which I could buy with a 4x joint mortgage and that is with my wife’s part time salary and the equivalent of my old salary. The mortgage would be bigger in relation to my salary i.e. 4x instead of 3.5 then.

My first house would be 3X joint now. It was 2.5X when we purchased 9 years ago.

Pete111

Really2 wrote: »

My first house would be 3X joint now. It was 2.5X when we purchased 9 years ago.

On previous earnings (and assuming the same deposit?) Our first place mortage multiple would have increased from 2.6x to 3.8x

on the other hand at current value it would be 1.2 x current joint income now - we bought it 6 years ago but our household income is at least triple what it was in 2004.

Which is nice.

Really2

Pete111 wrote: »

On previous earnings (and assuming the same deposit?) Our first place mortage multiplie would have increased from 2.6x to 3.8x

on the other hand at current value it would be 1.2 x current joint income now - we bought it 6 years ago but our household income is at least triple what it was in 2004.

Which is nice.

Wow thats a big increase.

But as a comparison you can't use your wage X years ago and todays price as that removes your wage inflation. A person buying today would be on today's wages. So that would be what you think someone else would get paid now for the job you were doing X years ago. If you are doing the same job your wage now and price now are both adjusted to your personal inflation.

Pete111

Really2 wrote: »

Wow thats a big increase.

But as a comparison you can't use your wage X years ago and todays price as that removes your wage inflation. A person buying today would be on today's wages. So that would be what you think someone else would get paid now for the job you were doing X years ago. If you are doing the same job your wage now and price now are both adjusted to your personal inflation.

Can't complain. However, I should stress my wife takes the lions share of the plaudits for that - I only make the beer money!

To cover your second point - I think thats's what I meant when I said it had gone up from 2.6 to 3.8 x salary - ie it would be much more of a stretch for 26 year old me (+ then fiance') to buy our flat now

nollag2006

HAMISH_MCTAVISH wrote: »

:beer:

Hmmmm, now, remind me again, who was it that was so very wrong about HPI not reaching double digits this year????

Anyone?




Great news for homeowners.

Inflation has eroded the value of your mortgage, as you'll have had pay rises along the way too.:beer:

For procrastinators, not so much..... Now house prices are more expensive, AND everything else is more expensive too.




Hmmm, most of last years growth was from May onwards. We are due a post election bounce from May onwards this year.

The slowdown in growth this year so far is primarily down to the Feb figures being low. And we all know that was the Snowmageddon problem skewing them.

So much for the housing bears triumphalism.....

Still, those cash buyers must run out soon, right?



Oh dear....... ANOTHER bear meme utterly discredited.

It was the increase in mortgage lending which has driven the recovery, not cash rich buyers.

Ah well, surely there is a pent up supply of soon to be forced sellers building, right?



Ahhhh...... So there probably won't be a big increase in supply of "motivated sellers" after all.

So will we be seeing big price falls from the limited increased supply coming through?



No falls then..... Just a decrease in the rate of growth.

But I thought we were supposed to have a double dip in March???

Whatever happened to that?


:rotfl::rotfl::rotfl:

PhylPho

The daft triumphalism of threads such as this must be viewed with despair by many an aspiring WTWP FTB.

WTWP? Wozzat then? It stands for "Wrong Time / Wrong Place" and it's oh-so easily ignored by those whose tunnel vision is such as to lead to the assumption that the higher an area's property prices, the higher that area's average household income must be.

On which basis there are vast swathes of over-priced Yorkshire and Cumbria (two counties I know particularly well; I actually saw a 3-bed 1950s semi for sale in Keswick yesterday: £345,000) where every school leaver gets on the ladder of adult life (and not long thereafter, the housing ladder) with a salary commensurate with the prices asked locally.

Yeah. Right.

Fact is, thousands of those young people are in the wrong place, at the wrong time.

They made the mistake of being born in areas susceptible to the influx of funny money from elsewhere.

They made the mistake of being born in areas where social housing stock was flogged off by the Thatcher Government without a care for its replacement or the consequences of successive re-sales that would ultimately see a £25-a-week Council house that served as a home for a rural family turned into a £300,000 holiday let owned by some guy spending a fifth of his City bonus.

An island as small as this can no more afford the kind of ruptured Society we now have than a young couple can afford the kind of house prices so prevalent today.

Those who think there's enormous satisfaction to be gained from seeing a rise in house prices are, one presumes, also going to derive equally enormous satisfaction at the way this country daily becomes more divided, more unequal, and more -- much more -- unfair.