Telegraph: Lending main obstacle for buyers, causing Brits to "give up"

FATBALLZ

HAMISH_MCTAVISH wrote: »

Average full time male including overtime is £34,000.
http://www.statistics.gov.uk/pdfdir/ashe1210.pdf

I'm sure you know your post was just as correct as the one before it, you are simply using the mean average rather than the median. I think most people would say the median is more relevant in terms of house buying.

ukcarper

AndyGuil wrote: »

Average salary was £23,764 in 2007.
http://www.statistics.gov.uk/pdfdir/ashe1107.pdf

Average salary in 2010 is £25,948.
http://www.statistics.gov.uk/pdfdir/ashe1210.pdf

I'm not sure why people keep quoting mean for all wages I would have thought that you would expect to be working full time if you want to buy a house. I also the house to earnings ratio often quoted is male full time.

Rechecking I see that £25,948 is median full time all employees so has anyone got a link to show what figure has been use in the often quoted historical average?

Conrad

In case any one is interested I'm still in talks with my MP re over burdensome FSA mortgage regulation which is the TRUE reason Banks are being so cautious. It's going better than I thought actualy. I keep pestering him to do more and take it higher up the food chain.

And no this is not about me being a VI mortgage broker, as I earn more when people need me. No this is about the daily injustice I witness where perfectly able applicants are unable to proceed thanks to FSA regulation.

Graham_Devon

HAMISH_MCTAVISH wrote: »

Average full time male including overtime is £34,000.
http://www.statistics.gov.uk/pdfdir/ashe1210.pdf

Jeezus.

It gets ever more desperate.

Just use the god damn average will yer!?

Median gross annual earnings for full-time employees (including those whose pay was
affected by absence) were £25,900,

There. Done.

Females need to buy houses too. Surprisinging. I know.

myhouse_2

HAMISH_MCTAVISH wrote: »

Well to be fair I'm cheating somewhat, as even the BOE have come out and said they believe the new "neutrality point" for base rates is around 3%, versus the 5.5% seen in the last decade.

And as I can't see the economy in a roaring recovery any time in the next 5 years, that would justify raising base rates to the point where demand destruction is required, I'm quite prepared to bet that we won't see rates much above 3% before 2016.

CML

The average multiple for FTB's never crossed 3.5 times income at peak, and the average for 2TB never crossed 3 times income.
The numbers that genuinely overstretched, to the point where even small rises in base rates will cause forced sales, are vanishingly small.

I would suggest that with house prices now just around 10% below peak, and already well above it in some areas, 8 years of ultra low rates will do very nicely for most.

The BoE's view of their idyllic "neutrality point" matters not a jot - they can't predict what rates will need to be in a years time never mind after that - they are pushed and pulled by too many factors they have little control over. And we have seen how well their inflation predictions have been.
The economy doesn't need a "roaring recovery" for rates to go back up - a gentle sustained recovery or evidence that inflation is becoming ingrained will provide sufficient impetus.
CML? Would need to see a link to look at the figures, and besides, I'm always suspicious unless it's corroborated by others - looking at rightmove/halifax/nationwide shows how different the numbers can be.
8 years of ultra-low rates would no doubt do nicely for most house owners. Doubt they're going to get it though.

Rautavaara

Diminsh the full.

Replenish the humble.

Pobby

Let us go back to the late 70`s. A house in the South East, Reading, would be about £29k for a large terrace. Wages then, if you had your head screwed on, would be £12k a year for a couple. Less than 3.5%. Of course, inflation was matched with higher IRs and wage inflation. Same place now, about £190,000. Deposit required, I guess £19k, repayments, maybe £12k a year.

However, I do not see that as a real reflection on earnings. It fine to talk about the median wage, but many are get a lot lower. There are still people getting off their butt working for a minimum wage job.

HPI sucks.

shortchanged_2

HAMISH. Lets face facts. The reason many first time buyers are struggling to get on the property ladder these days is because houses became and still are vastly overpriced.

The current strict lending criteria is needed to help reduce house prices to a more realistic and sustainable level for the longer term.

ukcarper

The only graph I can find for average house price to average wage is this Nationwide one here.

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

This shows it to be 6 in 21/04/2006 average house price then according to Nationwide was £165k therefore wage used would be £27.5k.

The wage figure for 2006 according to ONS

All mean £24,292 median £19,521
Full Time mean £29,269 median £25,544
Full Time Male mean £23,692 median £25,766

Nearest seem to be Full Time Male mean but take your choice.

ukcarper

Now this link http://www.findaproperty.com/displaystory.aspx?edid=00&salerent=0&storyid=23046 which shows long term average of 4 shows it to be March 2009 to be about 4.4x and the average house price to be £157,326. Making average wage £35,750 which is near enough full time male mean on ONS so it would look like that is what Halifax use.