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Debate House Prices


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Is £40,000 really a liveable income for families in the UK?

MrRee_2
MrRee_2 Posts: 2,389 Forumite
in Debate House Prices & the Economy
That is the question posed by the BBC.

Just £40,000 is the average that families have to live on per year - I cannot believe it is that little ...... it must be a struggle if it's true - maybe the information is a couple of years old?

Anyway ... interesting read:-

http://www.bbc.co.uk/news/magazine-15197860
Bringing Happiness where there is Gloom!
«134567…33

Comments

  • Aberdeenangarse
    Aberdeenangarse Posts: 1,262 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    Maybe you've got your head stuck up your @rse
  • MrRee_2
    MrRee_2 Posts: 2,389 Forumite
    It's the BBC dear boy - the BBC!

    I have very little input into what they write - all powerful though you think I am!
    Bringing Happiness where there is Gloom!
  • Norfolk_Jim
    Norfolk_Jim Posts: 1,301 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    Gosh, thats at least twice what mine has to live on
  • shortchanged_2
    shortchanged_2 Posts: 5,546 Forumite
    Well when you consider the average house price is around £160,000 it obviously isn't enough.

    Well either that or house prices are overvalued.
    Why are we here?......................because we are not all there.
  • quantic
    quantic Posts: 1,024 Forumite
    Part of the Furniture Combo Breaker
    edited 30 November 2011 at 1:31PM
    Our household income is £45k, we have no kids and live in the North East so house prices are relatively low. It amazes me how people can survive on less than this living in the south and with kids too.

    Also, says a lot really that the family in the article has a house "worth" £300k and earn 40k, while I could only dream of owning a house for half that.
  • FTBFun
    FTBFun Posts: 4,273 Forumite
    shortchanged wrote: »
    Well when you consider the average house price is around £160,000 it obviously isn't enough.

    Well either that or house prices are overvalued.

    The average person doesn't buy the average house though.
  • Graham_Devon
    Graham_Devon Posts: 58,560 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    Love that report, nearly posted it earlier. It's a case of polar opposites with the case studies they have used.
  • michaels
    michaels Posts: 29,211 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    Strange, we live in the SE have a 250k mortgage and run 2 cars and 3 kids on 25k pa and still save a couple of hundred each month...
    quantic wrote: »
    Our household income is £45k, we have no kids and live in the North East so house prices are relatively low. It amazes me how people can survive on less than this living in the south and with kids too.

    Also, says a lot really that the family in the article has a house "worth" £300k and earn 40k, while I could only dream of owning a house for half that.
    I think....
  • MrRee_2
    MrRee_2 Posts: 2,389 Forumite
    shortchanged wrote: »
    Well when you consider the average house price is around £160,000 it obviously isn't enough.

    Well either that or house prices are overvalued.

    I would suggest that 4x joint income would give £160,000.

    Add to that the £32,000 deposit and we have £192,000.

    This would point to what I have been saying for months, as the Land Registry puts average house prices at £159,999 - house prices must increase!

    Certainly, there are no falls required.
    Bringing Happiness where there is Gloom!
  • silvercar
    silvercar Posts: 49,890 Ambassador
    Part of the Furniture 10,000 Posts Academoney Grad Name Dropper
    I suspect that anything much lower than 40k gives you access to Working tax credits, child tax credits, childcare tax credits, child benefit, etc etc to bring your income roughly upto 40k.

    (I know that you need children to get these benefits, I'm generalising).
    I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.
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