What percentage of your income was on monthly mortgage (FTBs)?

Tancred

Lizling wrote: »

Lol, I assure you I'm on MUCH nearer £1.5k a month than £6k. Not far off £1.5k a month at all, in fact.

What makes the difference is that my other fixed outgoings are very low. I haven't got any kids (the big one!), haven't got a car, have minimal commuting costs and eat very cheaply (vegetarian and from Lidl/Indian supermarket).

Affordability is what's key, not income alone.

Obviously lifestyle is an issue. I have no choice but to commute 60 miles a day for work and pay £150 a month on fuel.
I'm also something of a gourmet and like to eat out frequently. Each to his own!

Tancred

Lizling wrote: »

Household income or individual income?

Probably true for household income since women were less likely to work back then. To put it another way, the average house cost maybe 3.5 times one person's earnings in the 70s and now it costs roughly 3.5 times 2 people's earnings!

As I stated in my post in 1976 you could easaily afford an average 3 bed semi on 3X average full time salary. Now even with two full time average salaries you would struggle in the south of England. It's true that far fewer married women worked back then, but it's a stark contrast even so.

Lizling

Tancred wrote: »

As I stated in my post in 1976 you could easaily afford an average 3 bed semi on 3X average full time salary. Now even with two full time average salaries you would struggle in the south of England. It's true that far fewer married women worked back then, but it's a stark contrast even so.

I don't disagree with you, Tancred. House prices haven't increased evenly across the country.As a recent London FTB with no one to share my mortgage with, I know that as well as anyone!

ukcarper

Tancred wrote: »

Rubbish. The average salary is now £26k - what can you get in the south-east for three times that (£78k) these days? Or even three times £30k - £90k? A studio flat maybe?

In 1976 the average wage was £3,744 a year and for three times that - £11,232 - you could buy a 3 bedroom semi in most parts of southern England. Maybe not with central heating and in perfect condition, but you could certainly find one.

I did say early http://www.housepricecrash.co.uk/graphs-average-house-price-to-earnings-ratio.php

ukcarper

Lizling wrote: »

Household income or individual income?

Probably true for household income since women were less likely to work back then. To put it another way, the average house cost maybe 3.5 times one person's earnings in the 70s and now it costs roughly 3.5 times 2 people's earnings!

As you can see from graph in previous post in the1970s house prices to earnings varied from just under 5x to just over 3x I believe the figure is now about 5x.

The figure used is male full time earnings.

ukcarper

Tancred wrote: »

As I stated in my post in 1976 you could easaily afford an average 3 bed semi on 3X average full time salary. Now even with two full time average salaries you would struggle in the south of England. It's true that far fewer married women worked back then, but it's a stark contrast even so.

True 1976 was a pretty good time to buy as was 1996 but then 1972 and 1989 were pretty bad similar to now but not as bad as 2007.

Going back to original question percentage is a pretty meaningless measure for example its a lot harder to live on say 66% of £25k than 66% of £100k.