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Debate House Prices
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What would happen if house’s dropped to the magic 3.5 times average income?
Comments
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2009 the average advance vs income was 3.02 times for FTB for non FTBs it was 2.76.
And my point is lenders loan books are still far higher than 3.5 times.
The lower figures as you quoted above. Are merely bringing the mortgage books back into alignment with what is acceptable risk. After the lending boom of 2003 -2007 (£600 billion). Many advances were also made on interest only basis.0 -
neverdespairgirl wrote: »Weren't any, apart from the afore-mentioned prohibition on castle building.
While in truth mediaeval planning lawas were minimal (want a house? go cut down a tree and build one), I think that we all know what s/he meant when they said 'mediaeval planning laws'0 -
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My point was that people shouldn't be needlessly pedantic....0
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Just to point out that this long standing ratio was around 3.5 times a SINGLE income.
House prices are not somehow more affordable at 3.5 times a joint income!
eg; Avg Earnings 1987 (the Lawson HPI Boom before the crash) £11,200 - Nationwide house price index - £39,663 - Population 57million.so says another ordinary mug fighting the 1% who own the political machine grinding them down from on high...
:A0 -
sure
http://www.communities.gov.uk/documents/housing/xls/table-517.xls
2009 the average advance vs income was 3.02 times for FTB for non FTBs it was 2.76.
the house price vs average income is a different matter - not as comfortable and is reflected in the average deposit amount.
you're trying to confuse the point by now taking specific banks now instead of saying 'all the major lenders" as you previously said to try and prove it's the norm - it's not the case at all
Couple of points that may already be well known:
"Income The income of borrowers is the total declared income on which the mortgage is based. It may overstate/understate the borrowers' true income and may include more than one income."
"First time buyers, in our statistics from the Regulated Mortgage Survey, are households that move into owner occupation without having to sell a property. Therefore numbers will include some buyers who have previously owned a property before, but are not in owner occupation at the time of purchase."
However those ratios are calculated, there's no doubt that they have been increasing over time. For example, Advance/Income for FTBs has increased by 50% compared to the rough average pre-1990. I guess that's obvious from the way prices have increased. Somebody's been financing the increase!No reliance should be placed on the above! Absolutely none, do you hear?0 -
Thrugelmir wrote: »Those invaders from France ignored the rules. Building the Tower of London in the process to name one.
Even brought their own stone.
IIRC, the first and central part of the Tower, the keep, was mostly built from Kent ragstone, although faced with some stone from Caen....much enquiry having been made concerning a gentleman, who had quitted a company where Johnson was, and no information being obtained; at last Johnson observed, that 'he did not care to speak ill of any man behind his back, but he believed the gentleman was an attorney'.0 -
While in truth mediaeval planning lawas were minimal (want a house? go cut down a tree and build one), I think that we all know what s/he meant when they said 'mediaeval planning laws'
I don't think it is pedantry. Massive dismissal of something someone dislikes as "medieval" when it's utterly inaccurate is irritating....much enquiry having been made concerning a gentleman, who had quitted a company where Johnson was, and no information being obtained; at last Johnson observed, that 'he did not care to speak ill of any man behind his back, but he believed the gentleman was an attorney'.0 -
While in truth mediaeval planning lawas were minimal (want a house? go cut down a tree and build one), I think that we all know what s/he meant when they said 'mediaeval planning laws'
"When I use a word," Humpty Dumpty said in rather a scornful tone, "it means just what I choose it to mean -- neither more nor less."
This is hilarious.No reliance should be placed on the above! Absolutely none, do you hear?0 -
definately - times have changed.Couple of points that may already be well known:
"Income The income of borrowers is the total declared income on which the mortgage is based. It may overstate/understate the borrowers' true income and may include more than one income."
"First time buyers, in our statistics from the Regulated Mortgage Survey, are households that move into owner occupation without having to sell a property. Therefore numbers will include some buyers who have previously owned a property before, but are not in owner occupation at the time of purchase."
However those ratios are calculated, there's no doubt that they have been increasing over time. For example, Advance/Income for FTBs has increased by 50% compared to the rough average pre-1990. I guess that's obvious from the way prices have increased. Somebody's been financing the increase!
buying property on one income is rare and won't be happening again as the norm.0
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