What is an 'Average' Property?

talksalot81

olly300 wrote:

You are actually right.

None of my friends (all FTB) are buying 1 bedroom flats if they are in couples. They are buying/have brought 3 bedroom houses which they intent to live in as long as possible and bring their children up in.

There seems to be a split between my male and female single friends FTB. The women tend to buy 2 bedroom properties while the men buy 1 beds. This may be due to age difference as the men are normally 3-5 years younger than the women who buy.

Many of those I know are after 2/3 bedroom housing. However many have not got the slightest intention of staying there for all that long. There are very few who can afford housing of this size in an area where they would especially want their kids growing up. The reason most I know want further up the ladder on a first step is because the further up the ladder they go, the more rapidly their investment grows. This is ultimately flawed because many cannot afford what they are getting into but it is the normal perception.

sm9ai

dougk wrote:

Well that where I think you may be wrong!

Usually when house prices go down (more than a small %) its normally becuase of some sort of economic crisis or similar. At this point there is high unemployment and rather than a pay cut, a large number of people find they have NO pay. So yes when prices drop significantly expect a high chance of a pay cut as well!!!

True, but thats due to the economic crises not due to house prices. Okay they probably both happen at the same time but you never know.

cupid_s

I'd say an average property is a 3 bed terrace, or a 2 bed semi.

And both are affordable on average wages, even young persons wages. It just depends on where you want to live. There are loads of houses and flats in this city on the market for less than 150k but most people I know wouldn't want to live in them as the areas aren't good enough. But surely that's their problem as they could afford a house just not the exact one they want in the exact area. They're too fussy and expect it all now and moan that they cant afford a 3 bed semi in the best area. It annoys me

sm9ai

cupid_stunt wrote:

But surely that's their problem as they could afford a house just not the exact one they want in the exact area. They're too fussy and expect it all now and moan that they cant afford a 3 bed semi in the best area. It annoys me

Maybe, but would you be more annoyed with significantly increased congestion on the roads from people having to travel further to work.

cupid_s

sm9ai wrote:

Maybe, but would you be more annoyed with significantly increased congestion on the roads from people having to travel further to work.

I don't really understand the relationship. The 'desirable' areas are not those close to the centre, or even with good transport links such as main roads or railway stations.

Congestion has no effect on me really as I get the train to work every day. I live 10 mins walk to the train station and then it's only 7 minutes on the train. But no-one wants to live in my area and houses are cheap.

sm9ai

Okay but for the majority who don't use public transport. Push them further out of town and it is going to have an effect on the roads.

cupid_s

I agree with the principal but a lot of my friends are currently looking at buying houses or have recently bought and every single area that they 'would consider living in' is about as far out from the centre you can get and still be in the city.

If people are so bothered about commuting and the effect on the roads why do they all want to live so far out. In general the more inner city areas are the cheapest so everyone could buy there and no-one is being pushed out of town.

daveb975

The other problem is that 'average' is an over-used term in the property market.

For example, I was reading the other day that Surrey has a higher 'average' property price than London. Probably true, but does not mean that house prices in Surrey are higher than in London, just that the 'average' house is much bigger.

A 3 bed semi is probably considered by most to be the average property. In the London suburb where I live, the average property price is about £300k. 1930's 3 bed semis in the best roads go for about £550k, where as very similar houses in the poorer part of town go for nearer £250k.

I think that the 'average' property can only be found by applying a regional average price to a local area. For example, say the regional average for the whole of the SE is £275k. This would mean that buying an average house in the poorest part of my town would get you a 3 bed semi, but the average in the best part would only be a 2 bed flat.

Buyers with any amount of money always have a choice - area vs size. The average house price in the whole country is about £190k. If you have got that to spend on a house, you could probably buy a 4 bed detached in a lot of areas, whilst being lucky to secure a bedsit in others!

cwcw

The question depends on whether you're asking about average size, or average price. In terms of size, I think a 3 bed semi is still regarded the "average" house. In terms of price, using Sheffield as an example, this same "average" 3 bed semi could cost £100k or could cost £300k, purely depending on the area. Nationally, the price variance of the 3 bed semi will be even greater.

Looking at it the other way, if average uses price, then £180k is about the average property. However, in Sheffield this could be a 4 bed detached house or a 1 bedroom flat, again depending on the area, and again this will probably vary even more nationwide.

Basically, the concept of the "average property" is a nonsense.