Why were house prices cheaper in the 1970s than they are in the C21st?

ukcarper

Malcolm. wrote: »

You're right, there was a boom in 1972, I'll have to ask the exact year of purchase.

I think the HP to earnings ratio was lower then than of late according to these (I can't get them on the same graph though).

http://www.housepricecrash.co.uk/graphs-average-house-price-to-earnings-ratio.php

http://www.housingmarket.org.uk/wp-content/uploads/2009/08/hp-earnings-ratio-92-09.jpg

That first graph is very interesting and perhaps some of the people who keep saying how easy in was to buy in the 70s should look at it

ukcarper

Graham_Devon wrote: »

Jesus.

This is what I can't get my head around....

Some people telling us how hard it was back then....5x this, 4x that. Oh it was so hard. We had it so hard.

It's now 5-6x TWO wages. But apparently this is easier. The same people will invent a variety of ways to tell us how we can do it and stop whinging....but have to listen to them pick out CERTAIN part of a whole decade to tell us it was much harder for them.

It's getting boring. It's been factually documented that it's harder now. Same boomers see a documents rise in HPI and that document is absolutely undeniably right in every way.

Seems to be more of the boomer generation moaning that this document has come out, than there is younger generation moaning about the position they are in!!

6x 2 average wages would buy my 4 bed detached in outer Surrey and you would get some change

StevieJ

ukcarper wrote: »

That first graph is very interesting and perhaps some of the people who keep saying how easy in was to buy in the 70s should look at it

What would be even more interesting is an average mortgage rate line plotted on that graph.

Malcolm.

StevieJ wrote: »

What would be even more interesting is an average mortgage rate line plotted on that graph.

And a wage inflation line too.

wymondham

I would have said it was due to people not wanting/able to be budding landlords and buying up all the affordable housing.....

StevieJ

Graham_Devon wrote: »

Jesus.
It's getting boring. It's been factually documented that it's harder now. Same boomers see a documents rise in HPI and that document is absolutely undeniably right in every way.

Seems to be more of the boomer generation moaning that this document has come out, than there is younger generation moaning about the position they are in!!

Where is this factual document you keep prattling on about?

Graham_Devon

Malcolm. wrote: »

And a wage inflation line too.

And one which shows that 150k at 5% is probably more expensive than £30k at 15%.

Probably, I aint done the sums. Just making a dodgy point really.

Graham_Devon

StevieJ wrote: »

Where is this factual document you keep prattling on about?

Stuff about it here.

Mind it though, the wording used may provoke a coronary

http://www.telegraph.co.uk/education/universityeducation/7974527/The-Boomers-bonanza-has-left-precious-little-for-the-rest-of-us.html

StevieJ

Malcolm. wrote: »

And a wage inflation line too.

Then again you could just provide a chart showing affordabilty i.e. mortgage costs/net income.

zappahey

Exocet wrote: »

G, they were cheaper in real terms. Single wage buys a house. Not a shared equity high rise one bedroomed toilet... a house.

End of.

I don't think Generali is disputing that point.

The reality is that, in the seventies, it was very difficult to obtain a mortgage without spending years building up a relationship with a building society branch. Between that and the much higher availability of decent council housing, there was much lower demand for private housing.

House buying was a very middle class activity and not typically for the "lower classes". Of course, that's changed now that we're all middle class.