wages, house prices, etc

want2bmortgage3

my question is, wages dont seem to be going up and havent really gone up for the last 10 years.

people are being forced to accept more part time less secure jobs, more people are out of work.

how does this affect house prices? how can the long term rise in house prices be sustained if wages aren't going up and nobody can afford to buy?

geneer

Actually looked at that recently.
Average wages have in fact kept up with inflation since 2007.

However, that may well be changing now.

HAMISH_MCTAVISH

want2bmortgage3 wrote: »

how can the long term rise in house prices be sustained if wages aren't going up and nobody can afford to buy?

Wages are up 37% in the last 10 years.

Wages continue to rise.

An estimated 2 million people currently renting could easily afford to pay a mortgage, but can't get one due to mortgage rationing.

geneer

HAMISH_MCTAVISH wrote: »

Wages are up 37% in the last 10 years.

Wages continue to rise.

An estimated 2 million people currently renting could easily afford to pay a mortgage, if mortgages weren't being rationed.

Well they could in Aberdeen.
City centre gaff £17K cheaper this quarter than last.

Percy1983

HAMISH_MCTAVISH wrote: »

Wages are up 37% in the last 10 years.

Wages continue to rise.

An estimated 2 million people currently renting could easily afford to pay a mortgage, but can't get one due to mortgage rationing.

So you propose that we let the free for all on mortgages continue the first 500000 of them who get the bank and say me get a house and the rest are priced out?

Out of those 2 million how many could have bought during the lax lending but didn't.

Now here is a very interesting question for you, you say they can't afford to buy, but if landlords weren't as greedy (or rent caps where forced) then many of them would be able to buy much sooner.

The overall sum is the current mortgage [STRIKE]rationing[/STRIKE] sensible lending is actually a good thing, it lets the financially savvy people first rather than the first to the bank and say give me money.

Thrugelmir

HAMISH_MCTAVISH wrote: »

Wages are up 37% in the last 10 years.

Minimum wage has risen 48%. So a few people have received considerably less.

PasturesNew

In 1997 I took on a job at £17,500. I had to leave as they were bought out and the whole Dept laid off as they used the Head Office department to perform the roles.

Two years ago I looked up that company, in that location, found the job title I'd been taken on as ... and they were advertising the role at £17,000.

macaque_2

HAMISH_MCTAVISH wrote: »

.

"Wages are up 37% in the last 10 years."
Based on above average wage inflation in the public sector and stellar pay rises for financial services/company directors. 15 million foot soldiers are learning how to live with less.

"Wages continue to rise"
For a rapidly shrinking rump of people in full time employment

"An estimated 2 million people currently renting could easily afford to pay a mortgage, but can't get one due to mortgage rationing"
Subject to base rates staying at 0.5% for the next 20 years.

PasturesNew

Another anecdote... in 1990 I was earning £6.60/hour as a secretarial temp .... In the past 4 years I've not found rates that high wherever I've lived, they all pay NMW or 20p/hour more.

Technology has written off many skills and where you needed skill 10-20 years ago to do a "proper job" of it a PC now does the task and mediocre people are paid NMW to do a passable job. Think of: secretaries, typographers, designers.... and hundreds of other jobs that used to require actual skill/practice to achieve a high level of perfection.... all gone. All now done with a PC and person on NMW.

shortchanged_2

HAMISH_MCTAVISH wrote: »

Wages are up 37% in the last 10 years.

That's still some way behind the 100 - 200% rise in many house prices that occured in the previous decade.

PasturesNew

Report on this morning's news on the telly said that here, where I live, the average house price is now 13x the average wage. It was only about 12.5x a couple of years back.... god bless 2nd homes for keeping our house prices high.

http://www.piratefm.co.uk/news/latest-news/545294/housing-crisis-getting-worse/