Demand for rented accomodation rises

Graham_Devon

Thrugelmir wrote: »

Averages are wonderful. However they disguise a wide variation that extends beyond just salary multiples.

The lenders that didn't lend sensibly at the height of the boom. .

First National, Lehmans, Northern Rock, Bradford & Bingley, Alliance & Leicester, HBOS, Morgan Stanley, Bristol & West, Abbey National, Mortgage Express, Chelsea Building Society, GMAC and Amber Home Loans to name a few...........

My question to you. What do they all have in common?

Not included in the figures?

ukcarper

PasturesNew wrote: »

Looking at salaries, I wish I were a bloke.

You got me thinking, first record ONS is 1997 will have to use weekly pay as annual doesn’t go back that far.

1997 full time mean Female £300 Male £415, 2010 Female £513 Male £653

So in 1997 the average woman working full time earned 72% of a man in 2010 she earned 78% so some improvement.

nollag2006

julieq wrote: »

http://www.bbc.co.uk/news/business-14135553

Which is as predicted really. With a shortfall between number of households being created and homes built, overall demand for housing increases. As it's difficult to buy because of mortgage rationing, the only outcome is increased demand for rented housing.

It's quite true. I have had a tenant in one property since May 2009, and have never put the rent up.

New tenant is paying me 20% more !!!

:eek:

Result

ukcarper

Graham_Devon wrote: »

Doesn't matter.

Thats 40 years ago. Were talking about now.

So far, you've suggested it's ok as the average family earn 64k. Now it's been reduced to the 30th percentile, but based on 3.5x both incomes, which I don't believe lenders actually leant on, due to the insane risk.

All I'm asking is you work it out using real figures. You'll then see the problem. Which is the reason I guess for the hesitant responses.

Decided to see if it would be possible for a couple both working but in the lowest percentile to buy in my area. Male £17, female £13.5 total income £30.5k. If we use the 3.5 figure we get £106,750 lets say they have a 10% deposit about £11.5 k that gives them about £118k, that would get them a fairly good 1 bedroom flat.

Take home £1160 and £961 total of £2121 Mortgage at 6% £696 and at 9% £905. Similar flats to rent are £575 a month.

Graham_Devon

ukcarper wrote: »

Decided to see if it would be possible for a couple both working but in the lowest percentile to buy in my area. Male £17, female £13.5 total income £30.5k. If we use the 3.5 figure we get £106,750 lets say they have a 10% deposit about £11.5 k that gives them about £118k, that would get them a fairly good 1 bedroom flat.

Take home £1160 and £961 total of £2121 Mortgage at 6% £696 and at 9% £905. Similar flats to rent are £575 a month.

You have failed for the third time to include ANY outgoings in the "what can I borrow" calculator.

People have outgoings. Council tax for one. Most people have car payments etc that all have to be included when applying for a mortgage. Loads have kids, which instantly reduces amounts you can borrow. Pension contributions do the same.

Until that is accepted, you may aswell just make up hypothetical couples earning hypothetical amounts and make up hypothetical house prices.

ukcarper

Graham_Devon wrote: »

You have failed for the third time to include ANY outgoings in the "what can I borrow" calculator.

People have outgoings. Council tax for one. Most people have car payments etc that all have to be included when applying for a mortgage. Loads have kids, which instantly reduces amounts you can borrow. Pension contributions do the same.

Until that is accepted, you may aswell just make up hypothetical couples earning hypothetical amounts and make up hypothetical house prices.

Can you provide me a link to a what can i borrow calculator with outgoings.
Do you think two people can't live on £1425 a month after paying mortgage, that’s more than I get a month. .

Graham_Devon

ukcarper wrote: »

Can you provide me a link to a what can i borrow calculator with outgoings.
Do you think two people can't live on £1425 a month after paying mortgage, that’s more than I get a month. .

http://www.nationwide.co.uk/mortgages/calculators/howmuchborrowafford.htm

http://www.fool.co.uk/mortgages/mortgage-calculator/borrow-calculator.aspx

abaxas

ukcarper wrote: »

Can you provide me a link to a what can i borrow calculator with outgoings.
Do you think two people can't live on £1425 a month after paying mortgage, that’s more than I get a month. .

Agreed.

Maybe if you live 'darn sarf' you wont get much, but north of Watford and you'll have a mortage on a smallish house, run 1 or 2 cars and have a holiday every year.

Or none of the above and take aways 7 nights a week.

ukcarper

Graham_Devon wrote: »

http://www.nationwide.co.uk/mortgages/calculators/howmuchborrowafford.htm

http://www.fool.co.uk/mortgages/mortgage-calculator/borrow-calculator.aspx

Nationwide no outgoings only loans entered one £200 a month loan still got 3.8x.

Fool I entered £1000 a month commitments and got a maximum of 3.1x joint with £600 I got 3.5x.

geneer

geneer wrote: »

Hows that then?




Kinda cherry picking what you respond to eh Spamish.
Kinda loading up with a lot of disclaimers. :rotfl:


What is in fact kinda interesting is that the ratio of FTB lending multiples to the average price/average salary is remarkably consistent, which would suggest that this measure is actually a fairly decent way of proportionately assessing long term trends.


Whats also interesting is that the lending mutiples in 2007 were far higher than the 80's peak. Of course it may be that FTBs were not maxing themselves out then. But that does seem unlikely.

Not got much to say about aunty beebs reporting have you?

Annnnnnnnnnd he's gone.