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House price rises
Comments
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zkeithz wrote:It is clear therefore that earnings drive house prices. The next question is, quite obviously, how much have earnings increased in the last 5 to 10 years? I doubt very much if the average wage earner has experienced an increase of much more than 20% in 10 years.
Edit: Okay, I've been thick. I misread your post. Back to ironing teatowels for me.Stercus accidit0 -
An article taken from the Daily Telegraph in May 2003 says that the average UK salary increased by 26% since May 1997.
http://www.manifest.co.uk/news/2003/20030527Telegraph.htm
I'd guesstimate that in the 3.5 years since the article, the UK average salary has gone up a further 10%.0 -
cwcw wrote:An article taken from the Daily Telegraph in May 2003 says that the average UK salary increased by 26% since May 1997.
http://www.manifest.co.uk/news/2003/20030527Telegraph.htm
I'd guesstimate that in the 3.5 years since the article, the UK average salary has gone up a further 10%.
But that isnt far from what one would expect from inflation. The problem is that house price growth averages to being significantly above inflation. Hence the basic issue of affordability remains.2 + 2 = 4
except for the general public when it can mean whatever they want it to.0 -
BT_man wrote:Where do you live? What's the job market like in that area?.....
Grimsby.Here are some examples:-
http://www.rightmove.co.uk/viewdetails-5846982.rsp?pa_n=1&tr_t=buy
http://www.rightmove.co.uk/viewdetails-13534328.rsp?pa_n=1&tr_t=buy
http://www.rightmove.co.uk/viewdetails-13072753.rsp?pa_n=1&tr_t=buy
http://www.rightmove.co.uk/viewdetails-7231648.rsp?pa_n=1&tr_t=buy
http://www.rightmove.co.uk/viewdetails-13792289.rsp?pa_n=1&tr_t=buy
Not much fishing industry here anymore but plenty of food processing factories always advertising for staff.We have a growing Immigrant community too.In an Acapulco hotel:
The manager has personally passed all the water served here.:rotfl:0 -
God, you culd easily add £100k in front of those asking prices to buy in Devon - and wages aren't that great down here either. It does show that property is overpriced, as I have found as a second time buyer, trying tomove to a bigger house (we have a 3 bed terrace). What fuels property prices down here is rich Southerners buying Holiday Homes (the weather is NEVER that great!) and the RIGHT TO BUY introduced by Maggie in the 80s had led to an influx of ex-local authority houses suddenly being introduced to the market over the last 10 years0
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talksalot81 wrote:But that isnt far from what one would expect from inflation. The problem is that house price growth averages to being significantly above inflation. Hence the basic issue of affordability remains.
I know. I was responding to the specific statement by zkeithz: "I doubt very much if the average wage earner has experienced an increase of much more than 20% in 10 years". In fact, wage inflation has been around 30% or more in the last 10 years. House price inflation has been almost 300% in that period. Interest rates 10 years ago were about 6%, so houses were clearly underpriced at the time. I wish I was a buyer 10 years ago.0 -
Leighthal wrote:Grimsby.Here are some examples:-
http://www.rightmove.co.uk/viewdetails-5846982.rsp?pa_n=1&tr_t=buy
http://www.rightmove.co.uk/viewdetails-13534328.rsp?pa_n=1&tr_t=buy
http://www.rightmove.co.uk/viewdetails-13072753.rsp?pa_n=1&tr_t=buy
http://www.rightmove.co.uk/viewdetails-7231648.rsp?pa_n=1&tr_t=buy
http://www.rightmove.co.uk/viewdetails-13792289.rsp?pa_n=1&tr_t=buy
Not much fishing industry here anymore but plenty of food processing factories always advertising for staff.We have a growing Immigrant community too.
So food processing factory jobs paying £12K a year and lot's of immigrants driving the wages down even further.
Lucky you...;)some people label me a troll.Totally Realistic Opinion Let Loose0 -
This seems to be the recurring theme on MSE:
"Stop complaining, I can buy a house for 50K where I live."
"Really?! Where?"
"Grimsby".
"Aah".
The number of threads that magically end up in Grimsby in a rather forlorn effort to prove that "houses really are still affordable"...0 -
Thats actually one of your better posts mm..0
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empfun wrote:The opening up and influx of immigrants to the country will create demand for housing. Thus property value will be reflected accordingly. The basic law of supply and demand.
I've seen this statement bounded around from time to time but have yet to see any evidence to back it up.
I don't think immigration is a whole world different than it has been for years, although where these immigrants are coming from may well have changed.
Anyhow, how are these immigrants going to effect house prices? They are hardly likely to be earning enough to buy a property, and even if they were the won't get a mortgage as they'll have only just entered the country.
Ahh I hear you say, they will keep everything going via rentals and buy to let etc....well BTL accounts for approximately 5% of mortgages, the other 95% being owner occupier, of course I don't have a figure to add to this for cash buyer investors that are renting etc. but even if we doubled the 5% that's hardly enough to create boom and bust scenarios.
So I'd be very interested to know how you think immigrants are actually supporting house prices or even contributing towards the supply and demand that you suggest?
Do you have any corroborative evidence of the same or is it just a theory that you've arrived at yourself?0
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