Average house price reached seven times salary

Graham_Devon

Some different research here.

Found it on the guardian article. Interactive PDF, with some interesting statistics.

http://www.haygroup.com/Downloads/uk/misc/Paynet_UK__Salarytracker_Interactive_PDF_June_2011.pdf

Can look at the average salaries across the UK, next to the average house price, average deposit, to the amount of years it will take to save a 20% deposit (16.6 years in my local area).

House prices reached 7 times average salary.

It's even got house prices vs job levels. (Professional, senior manager etc) where it shows the operative / clerk faces house prices at 9.5x salary and the senior manager faces house prices at just 1x salary.

In London, house prices at 9x average salary, though in the north east, they are 4.6x average salary.

Interesting to have a click around with anyway.

Pimperne1

The average house price chart is as good an example as you will get of the North South divide (which is also why it is a nonsense to have a national average house price index - although I agree they break it down in the LR report). This month's Land Registry data for example - including the large drops in Wales alongside the increases elsewhere for their headline figure. A bit misleading to me anyway.

PasturesNew

Round my way it's been over 12x. 7x would be giving them away in comparison!waiting for your doc to load, then I'll see if my area's on it, what they say.

It says 8.3% for my region, on that map.

macaque_2

Graham_Devon wrote: »

Some different research here.

Found it on the guardian article. Interactive PDF, with some interesting statistics.

http://www.haygroup.com/Downloads/uk/misc/Paynet_UK__Salarytracker_Interactive_PDF_June_2011.pdf

Can look at the average salaries across the UK, next to the average house price, average deposit, to the amount of years it will take to save a 20% deposit (16.6 years in my local area).

House prices reached 7 times average salary.

It's even got house prices vs job levels. (Professional, senior manager etc) where it shows the operative / clerk faces house prices at 9.5x salary and the senior manager faces house prices at just 1x salary.

In London, house prices at 9x average salary, though in the north east, they are 4.6x average salary.

Interesting to have a click around with anyway.

Shocking numbers. At normal interest rates anyone below the rank of senior professional would be paying between 80% and 160% of their salaries on mortgage payments.

Pimperne1

macaque wrote: »

Shocking numbers. At normal interest rates anyone below the rank of senior professional would be paying between 80% and 160% of their salaries on mortgage payments.

Then they must not only be shocking they must also be wrong.

shortchanged_2

It would be interesting to see a comparison of that taken back to 2000, just before house prices rocketed.

daveyjp

Pimperne1 wrote: »

Then they must not only be shocking they must also be wrong.

Apply an interest rate of 10% on a debt of 7 times a £25,000 salary - £175,000 - near enough £17,500 per annum repayment.

£25,000 less 30% for tax, NI etc - £17,500 net per year income.

AT 8% £16,400.

So maybe not so wrong.

Pimperne1

daveyjp wrote: »

Apply an interest rate of 10% on a debt of 7 times a £25,000 salary - £175,000 - near enough £17,500 per annum repayment.

£25,000 less 30% for tax, NI etc - £17,500 net per year income.

AT 8% £16,400.

So maybe not so wrong.

Sorry, I thought he meant normal interest rates.

HAMISH_MCTAVISH

Pimperne1 wrote: »

Sorry, I thought he meant normal interest rates.

He did say "normal" interest rates.....

Clearly he meant "the 3 decades of the highest rates in history".