House prices, according to Mum and Dad

Hereward

sanfrancisco wrote:

It doesn't at all. Not at all.

I am pleased that you personally are not experiencing rampant inflation. I hope this continues for you.

Well it does help living in an economically depressed area. That, and buying most of my food from farmers as I live in a rural area. :rolleyes:

sarah_elton

meanmachine wrote:

Oh yes, let's do that, shall we?

1970
Wage: £2000
House: £8000
TV: £200
Wage inflation: 10%

2006
Wage: 25000
House: 200,000
TV: £500
Ipod: 150
Wage inflation: 3%

I know which decade I'd rather be living in thanks. 1970 house prices high? Initially, yes. In 2-3 years, my 1970s pay packet would have fattened out nicely.

Not anymore.

You missed out "Mortgage Repayment:"

boydE

I bought my house in 1990, we were paying a few years later 15%, I was earning £2.55 per hour.

roswell

I purchased my house 5 years ago for a very nice sum of £21 000, since then my wage has gone up by a total of £1000, I wouldnt Buy my house now because plain and simply I probably couldnt get a mortgage now. So Affordability wise yes its more expensive now. A DVD player is cheaper now compaired to 2001 but i dont buy one every month and i most definatelty dont have to pay for one every month for 20 years.

WesternExpress

Guy_Montag wrote:

Getting back on topic, one major issue with this graph is the introduction of the fudge factor. We don't know how much the fudge factor is, only "In addition, using earnings as a measure of income ignores the effect of an important structural shift over the past two decades - the rise in the number of two-earner households."

So at some point, they stop taking the single salary as a measure of affordability & instead use two salaries - or as I like to say completely change the rules.

How does having 2 incomes help when trying to get a small one bedroomed place? And there is an increase in childcare costs. I REALLY resent thinking that I have to be in a 2 person income arrangement to be able to buy anything jsut becasue house prices have gone up. I wonder if at some stage my generation will rebel against this must buy now must work silly hours culture.

Guy_Montag

Couples don't stick together so much these days either,

dougk_2

sarah_elton wrote:

You missed out "Mortgage Repayment:"

Also since when is an ipod essential and since when does a comparison TV to one in the 70's cost £500 - try less than £100 from Tescos!

Also consider disposal income after the living essentials (ignoring income tax) - perhaps £20k of the £25k - essentials being food,clothes and council tax.
So over 3/4 income is left. In the 70's only about 1/2 to 2/3rd was left so you are better off

whambamboo

dougk wrote:

Also since when is an ipod essential and since when does a comparison TV to one in the 70's cost £500 - try less than £100 from Tescos!

Also consider disposal income after the living essentials (ignoring income tax) - perhaps £20k of the £25k - essentials being food,clothes and council tax.
So over 3/4 income is left. In the 70's only about 1/2 to 2/3rd was left so you are better off

what a lot of rubbish.

When I earned £25k I had zero disposable income after food, clothing, council tax and £850/month rent.

Tax is also 33%: 22% income tax, 11% NI.

seven-day-weekend

seven-day-weekend wrote:

EdInvestor wrote:

In the 60s and 70s, it took years to persuade a BS to lend you money to buy a house - mortgsages were effectively rationed.

QUOTE]

Quite true; we got turned down by three lenders in 1976, although we were both working and the property was well within our reach on ONE income; they didn't want to lend on an old house (Victorian Terrace) and when we finally got one that would lend on it we had to pay £700 deposit out of the £3000 asking price. (We borrowed the deposit from a relative).

Having said that, we still have this house and we could not afford it now on the salary my husband was on just before he retired from teaching two years ago (basing it on 3 x income as it was in the 70s).

kenshaz

Monthly Statistics

England & Wales: Sep 2006

Monthly
Price Change0.4% Viewings to
Sales Ratio11 Sales to Asking
Price Ratio95%

Latest News - The Market


04 October 06

• Lack of supply sustaining house prices rises - average prices up by 0.4% in September despite recent rate rise
• and they are still going up £600 a month on £150000 house