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Debate House Prices


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ups and downs of housing market who benefited

ukcarper
ukcarper Posts: 17,337 Forumite
Part of the Furniture 10,000 Posts Name Dropper
edited 20 January 2012 at 9:55AM in Debate House Prices & the Economy
I’ve been getting a bit feed up being told how easy it was to buy a house and how much money I’ve made so I did a simple calculation. I took the average house price for the following years which roughly coincide with the peaks and troths of house market. Then using the measuring worth website earning forecast I found what that figure would be in 2009 (used 2009 because that is the latest year the earning forecast is available for).

1970 £94k
1973 £144k
1977 £103k
1980 £144k
1983 £108k
1989 £149k
1995 £88k

Very simplistic I know but found it quite interesting.
«13

Comments

  • Lewis1967
    Lewis1967 Posts: 49 Forumite
    The people who benefit the most from the cycles are those who bought when houses are undervalued. The poor people who are buying now when houses are overvalued will be disapointed when they see property undervalued in several years time.
    Imagine if China started paying housing benefit the same as the UK. Half a billion people would move from the slums in tin can huts to all these new apartments they are building every year. Property prices would double from where they are now.
  • nearlynew
    nearlynew Posts: 3,800 Forumite
    Very good.

    Until you consider that up until about the late 80s it was possible and very common to buy these houses with a single wage.

    Affordability these days is calculated using two incomes.
    It is then you realise how people have been screwed over - requiring two incomes to buy what used to be managable with one.

    The additional social damage that has been caused by this situation is also plain to see.

    Anyone who thinks it is easier now than then is talking out of their 4rse.

    And I say this as a so-called "boomer" myself.
    "The problem with quotes on the internet is that you never know whether they are genuine or not" -
    Albert Einstein
  • CRASH_BANG_WALLOP
    CRASH_BANG_WALLOP Posts: 661 Forumite
    dude how many 20 somethings do you see on escape to the country
    Maidstone Prices - average reductions at 8.5% (£19,668) Feb 2012 - We thought the dudes were not allowed to drop prices?
  • ukcarper
    ukcarper Posts: 17,337 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    edited 20 January 2012 at 11:53AM
    nearlynew wrote: »
    Very good.

    Until you consider that up until about the late 80s it was possible and very common to buy these houses with a single wage.

    Affordability these days is calculated using two incomes.
    It is then you realise how people have been screwed over - requiring two incomes to buy what used to be managable with one.

    The additional social damage that has been caused by this situation is also plain to see.

    Anyone who thinks it is easier now than then is talking out of their 4rse.

    And I say this as a so-called "boomer" myself.

    I can’t see the relevance it’s nothing to do with affordability, it just show what they would be in comparison to now if they had gone up in line with wages. So yes even at the previous peeks houses in relation wages were cheaper than they are now but only by about 10%.
  • Lewis1967
    Lewis1967 Posts: 49 Forumite
    nearlynew wrote: »
    Very good.

    Until you consider that up until about the late 80s it was possible and very common to buy these houses with a single wage.

    Affordability these days is calculated using two incomes.
    It is then you realise how people have been screwed over - requiring two incomes to buy what used to be managable with one.

    The additional social damage that has been caused by this situation is also plain to see.

    Anyone who thinks it is easier now than then is talking out of their 4rse.

    And I say this as a so-called "boomer" myself.


    There have been a few fundamental changes that have pushed up and held up prices. But this only further goes to argue that property is overvalued at present.
    CRASH_BANG_WALLOP wrote: »
    dude how many 20 somethings do you see on escape to the country


    Depends if bank of mum and dad has run out or not yet :)
    Imagine if China started paying housing benefit the same as the UK. Half a billion people would move from the slums in tin can huts to all these new apartments they are building every year. Property prices would double from where they are now.
  • ukcarper
    ukcarper Posts: 17,337 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    CRASH_BANG_WALLOP wrote: »
    dude how many 20 somethings do you see on escape to the country

    How many 20 something have ever bought large houses in the country.
  • Lewis1967
    Lewis1967 Posts: 49 Forumite
    ukcarper wrote: »
    How many 20 something have ever bought large houses in the country.


    Lately not many, but go back far enough and I expect a lot.
    Imagine if China started paying housing benefit the same as the UK. Half a billion people would move from the slums in tin can huts to all these new apartments they are building every year. Property prices would double from where they are now.
  • ukcarper
    ukcarper Posts: 17,337 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Lewis1967 wrote: »
    Lately not many, but go back far enough and I expect a lot.

    You think so if so how far back.
  • Lewis1967
    Lewis1967 Posts: 49 Forumite
    My Great Grandfathers time, most men were married in their 20's and could buy their own house and land for a couple of years average earnings.
    Imagine if China started paying housing benefit the same as the UK. Half a billion people would move from the slums in tin can huts to all these new apartments they are building every year. Property prices would double from where they are now.
  • ukcarper
    ukcarper Posts: 17,337 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Lewis1967 wrote: »
    My Great Grandfathers time, most men were married in their 20's and could buy their own house and land for a couple of years average earnings.

    When was that then and was that a 5 bed converted barn or another similar escape to the county type property.
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