House Prices vs earnings

wotsthat

Graham_Devon wrote: »

It's all far too difficult to compare. Things have changed too much.

You don't need to compare - the ONS are beavering away working out what stuff people buy and what they spend on it.

http://www.bbc.co.uk/news/business-21753044

The Office for National Statistics (ONS) updates the basket each year so the contents accurately reflect current trends in spending.

The basket contains about 700 items.

Some 180,000 individual prices are collected from 150 areas of the UK each month to calculate the rate of inflation and outline the changing cost of living.

I did note that Champagne has been removed from the inflation basket. I'm partly responsible as I've instructed the butler to switch to Cava.

coastline

I'm not sure that chart is accurate regarding wages and RPI..
I know how much skilled workers were on from the 1970's onwards as myself and others chat about this...not London btw.
From the 70's that would imply a basic wage of £1200 yet the calculator below works it out around £500 a week which is far more accurate....and thats just from a website.
Have you ever worked for an employer who gives you an over and above inflation wage increase every year...can't see it.
The more I look at it the red RPI line is wrong...

http://www.thisismoney.co.uk/money/bills/article-1633409/Historic-inflation-calculator-value-money-changed-1900.html

grizzly1911

coastline wrote: »

I'm not sure that chart is accurate regarding wages and RPI..
I know how much skilled workers were on from the 1970's onwards as myself and others chat about this...not London btw.
From the 70's that would imply a basic wage of £1200 yet the calculator below works it out around £500 a week which is far more accurate....and thats just from a website.
Have you ever worked for an employer who gives you an over and above inflation wage increase every year...can't see it.
The more I look at it the red RPI line is wrong...

http://www.thisismoney.co.uk/money/bills/article-1633409/Historic-inflation-calculator-value-money-changed-1900.html

Pint of beer 26p 1977, gallon of fuel 85p, apply red line 2100/500 = £1.10 and £3.57 respectively?

coastline

grizzly1911 wrote: »

Pint of beer 26p 1977, gallon of fuel 85p, apply red line 2100/500 = £1.10 and £3.57 respectively?

I'm drinking with you..£1.10p..;)

IveSeenTheLight

wotsthat wrote: »

It's really easy to compare - the graph shows that the average person has got progressively better off as wages outpaced the cost of living since 1970. Also since 1995 HPI has outpaced both RPI and average wages.

The question also remains is how the dynamics of the household income has changed over the last 43 years and whether this has deviated from the "Average Nominal Earnings"

dryhat

It is no coincidence that they all start diverging and rising in the early seventies.

This is when the dollar replaced gold as the reserve currency of the world and inflation, theft and corruption started to take off.

Culminating in the mess we're witnessing today.

ukcarper

I worked in a petrol station in 1966 petrol was 4s 10p a gallon so 2100/100 £5.20 a gallon

Can't remeber beer but an LP was about £1 12s that makes an CD £32

ukcarper

coastline wrote: »

I'm not sure that chart is accurate regarding wages and RPI..
I know how much skilled workers were on from the 1970's onwards as myself and others chat about this...not London btw.
From the 70's that would imply a basic wage of £1200 yet the calculator below works it out around £500 a week which is far more accurate....and thats just from a website.
Have you ever worked for an employer who gives you an over and above inflation wage increase every year...can't see it.
The more I look at it the red RPI line is wrong...

http://www.thisismoney.co.uk/money/bills/article-1633409/Historic-inflation-calculator-value-money-changed-1900.html

In 1972 I was a technical office for BT earning £1500 a year looking at graph wages have increased about 20x since then making wage £30k which is roughtly what they earn now.

james_toney

meljm2 wrote: »

Yes - and it is comingh very soon. int5erst rates will have to rise this year to cut inflation, and then there will be the crash

QE has stopped working - there is nothing wot the goverrment can do.

it will be at least 40% fall this year

if interest rates rise there will be a crash, but the goverment are making sure they rise ,

can't see 40% crash this year

james_toney

meljm2 wrote: »

how mucdh do you think it will fall this tear? it cant kkeep rising - London is just crazy now

personally i think they will be stable maybe the odd 1-2% falls some months with others be rising..

think house prices will be flat for a few years yet