How much should the average house price be?

ukcarper

Just a thought.

£150k at 5% over 25 years £870 per month, mean full time wage £32k take home £2000 per month, leaving £1170 after mortgage. Minimum wage £12,646, take home £913 a month so mean full time has more money after paying mortgage than someone on minimum wage has before they pay rent.

At 8% mortgage is £1170 leaving £830.

Graham_Devon

5% might be what you can get today. What about in 3, 4, 5 years time? Or are we pessamist doommongers for factoring the future payments in?

Le_Chuck

Including pension conts, £32k is around £1,850 p/m take home pay (soon to be £1,780 for many)

And the median pay is around £25k or £300 pm take home less

ukcarper

Le_Chuck wrote: »

Including pension conts, £32k is around £1,850 p/m take home pay (soon to be £1,780 for many)

And the median pay is around £25k or £300 pm take home less

But then again according to Land Reg average price for a terraced house is £123k.

Even so using your figures the house buyer still has the same as someone on minimum wage and that person has to find his rent and pension contributions.

Loughton_Monkey

Why the fixation on 'averages'? This is doomed to failure.

If you earn 'average' UK salary, and spend the average UK spending, and buy an average UK house on an average UK mortgage and mortgage rate, and take out the average amount of debt, I can assure you of only one thing:

On average, you will be in the shlt!

Linton

ukcarper wrote: »

But then again according to Land Reg average price for a terraced house is £123k.

Even so using your figures the house buyer still has the same as someone on minimum wage and that person has to find his rent and pension contributions.

My mind is boggling a bit at the thought of what an average terraced house might be. It must be somewhere between a £5K semi-derelict hovel in a semi-derelict Lancashire ex-mill town and a £10M 4 storey (terraced) Georgian mansion in Kensington.

Cleaver

Linton wrote: »

My mind is boggling a bit at the thought of what an average terraced house might be. It must be somewhere between a £5K semi-derelict hovel in a semi-derelict Lancashire ex-mill town and a £10M 4 storey (terraced) Georgian mansion in Kensington.

Imagine your average UK type of town or city. Swindon, Middlesborough, Nuneaton, Burnley, Portsmouth, Norwich, Dundee, Liverpool, Exeter, Bath, Nottingham. Now imagine a two up, two down, nice starter terrace. Are we there?

The price for that house will probably be somewhere between £80k and £160k depending on the place, so ukcarper's average terrace house being £123k feels pretty bang on. As you pointed out, there will be some in London for millions and others in sh*tholes for £5k, but these will be the minority in the bellcurve.

ukcarper

Linton wrote: »

My mind is boggling a bit at the thought of what an average terraced house might be. It must be somewhere between a £5K semi-derelict hovel in a semi-derelict Lancashire ex-mill town and a £10M 4 storey (terraced) Georgian mansion in Kensington.

I suppose that's the problem nobody knows what there average properties are.

According to Land Reg
£255,911 Detached, £152,701 Semi, £123,063 Terraced, £151,024 Flat, £161,823 All.

Graham_Devon

ukcarper wrote: »

But then again according to Land Reg average price for a terraced house is £123k.

Even so using your figures the house buyer still has the same as someone on minimum wage and that person has to find his rent and pension contributions.

As so many people suggest the FTB should buy FTB houses, howcome it's ok to suggest the average earner should buy a small terrace and not the average house? Who then buys the average house? The high earner?

ukcarper

Graham_Devon wrote: »

As so many people suggest the FTB should buy FTB houses, howcome it's ok to suggest the average earner should buy a small terrace and not the average house? Who then buys the average house? The high earner?

For a full time worker the 30% percentile is £20k take home £1330, £110k mortgage £650 so still possible to by average terraced.