22 year average wait for FTB's

Graham_Devon

RenovationMan wrote: »

Why do you feel that the forum was set up just for you, Graham?

LOL. Run along now.

flecker

wotsthat wrote: »

People taking home £20k can't afford to buy a house - no s**t. They are NEVER going to be able to afford them - they need to earn more - there's no way round this.

Where do you live? In my borough (in North Yorks) £20k is comfortably above the median income.

Median income: £18.8k
Average house price: £244.6k

I.e. someone earning three times the median income can't afford an average house (at 3.5x income, paying a 10% deposit).

Le_Chuck

MrsRee wrote: »

Precisly. Yet the yoof today moan about the hand they've been dealt. They don't know they're born.

But houses were much cheaper, so easier to save a deposit.

I'd much rather have low house prices & high interest rates than the current situation

Thrugelmir

wotsthat wrote: »

There's a housing shortage and yet prices fell in 2011. That indicates that other powerful influences are affecting the market.

Yes, the old chesnut, the lack of available funding. It will continue to influence and shape the market for some years yet.

ukcarper

flecker wrote: »

Where do you live? In my borough (in North Yorks) £20k is comfortably above the median income.

Median income: £18.8k
Average house price: £244.6k

I.e. someone earning three times the median income can't afford an average house (at 3.5x income, paying a 10% deposit).

When has someone on median income been able to buy with 10% deposit and a 3.5x income mortgage.

According to Land Reg in North Yorks average terrace house is £128k and semi is £152k

flecker

ukcarper wrote: »

When has someone on median income been able to buy with 10% deposit and a 3.5x income mortgage.

According to Land Reg in North Yorks average terrace house is £128k and semi is £152k

I'd hope that someone on 3x median income could buy with a 10% deposit and a 3.5x income.

My borough's Richmondshire in North Yorks. I was going by these figures:

http://harrogate-news.co.uk/2011/11/06/north-yorkshire-families-warned-looming-housing-crisis/

ukcarper

flecker wrote: »

I'd hope that someone on 3x median income could buy with a 10% deposit and a 3.5x income.

My borough's Richmondshire in North Yorks. I was going by these figures:

http://harrogate-news.co.uk/2011/11/06/north-yorkshire-families-warned-looming-housing-crisis/

At the beginning 1999 compared to earnings the average house was well below long term average at £70k.

Median pay was £14.5k so if you had the 10% deposit you would need a 4.3x salary mortgage.

Derivative

As usual, a completely ridiculous statistic.
Let's take someone who's not actually trying to save money, see what they have left over at the end of the month, and 'save' it.

If you earn £18k after tax, you can save £30k in 10 years.
There is your 20% deposit on a "starter" £150k home.
No, you won't be able to get the mortgage.
But saving the deposit is not as difficult as made out.

(Never mind the fact that ~£120k gets you a flat within M25 - we'll pretend £150k is the starter level because we base our stats on someone with children, marriage and no savings).

Is this 'starter' enough for you? 2 bedrooms seems pretty luxurious to me.
http://www.rightmove.co.uk/property-for-sale/property-18586081.html
Sub £50k. Could probably do better, can't be arsed as you could smack 30% on top and it'd still be well within the realms of affordable.

wotsthat

flecker wrote: »

Where do you live? In my borough (in North Yorks) £20k is comfortably above the median income.

Median income: £18.8k
Average house price: £244.6k

I.e. someone earning three times the median income can't afford an average house (at 3.5x income, paying a 10% deposit).

It doesn't matter where I or anyone lives. You are confirming exactly what I'm saying - £20k isn't sufficient income to buy the average house.

There are three options:
- earn more
- move somewhere cheaper
- hope house prices fall in price

The first two options involve someone taking control of their destiny. The third relies on hope.

There is another option. That requires our potential buyer to accept that the average person can't buy the average house (I don't think this is a new phenomenon). On £18.8k at 3.5x earnings and a 20% deposit (it seems unlikley that this person will pick up a mortgage with a 10% deposit) they are looking at a maximum price of £85k. The average in N. Yorks may be £250k but there are options to fit their budget and, to be fair, they do look like the type of house you'd expect someone with an income of £20k to be able to buy.

Graham_Devon

EdgEy wrote: »

Is this 'starter' enough for you? 2 bedrooms seems pretty luxurious to me.
http://www.rightmove.co.uk/property-for-sale/property-18586081.html
Sub £50k. Could probably do better, can't be arsed as you could smack 30% on top and it'd still be well within the realms of affordable.

The article is using the UK average.

With any average, you will always be able to find something under it. Which is what you have just done.

But every house in Hull will be under the average UK price.