More rationing

IveSeenTheLight

Graham_Devon wrote: »

Theres nothing being twisted here, and your aggressive response to my point shows it's hit a nerve.

All I'm doing is stating fact.

You didn;t, you made a statement that £36k was a higher tax bracket.

The FACT is it is not.

You can't choose to ignore the LEL allowance just to try and twist a stat to make your point more substantial than it is.

Originally Posted by Graham_Devon
The problem being, that this average one person income now comes out as being £36,504

Thats NOT average income. Indeed. That figure is in the higher rate income tax band ignoring the allowance.

P.S. No nerve hit, just want to point out blatant untruths

IveSeenTheLight

Graham_Devon wrote: »

Right so why is it rubbish?

Median average wage = 26.6k.

Median house prices = 175k.

26.6 x 6.3 = £167,500. (which is the average on another index, but close enough to the 175k you gave).

So you've stated it's rubbish and then proved my rubbish point?

Can you provide links for your stats above?

Lets consider for a moment your stats are correct, are you advocating that we should lobby for a substantial increase in low price properties to reduce the median house price?

[facetious]
Let's knock down townhouses and build skyscrapers of two bedrooms on the same footprint then.

You could get rid of a few £500k properties and build a hundred £100k properties in their place.
[/facetious]

ukcarper

IveSeenTheLight wrote: »

The thing to consider when looking at average wages, is that not everyone can afford.
Currently there is about 64% Owner Occupancy, theoretically meaning that (very roughly) only the top 64 percentile of earners have the opportunity to be home owners and as such this may be a reason why the mean was used as opposed to the median.

Of course if there was a significant increase in supply, then likely we would see an increase in owner occupancy and potentially drive prices lower such that a greater percentile of the population could afford to buy property

I agree with the above but when comparing the relative affordability over time median would be better. But obviously it is not as simple as that and many more things come into play.

CLAPTON

IveSeenTheLight wrote: »

The thing to consider when looking at average wages, is that not everyone can afford.
Currently there is about 64% Owner Occupancy, theoretically meaning that (very roughly) only the top 64 percentile of earners have the opportunity to be home owners and as such this may be a reason why the mean was used as opposed to the median.

Of course if there was a significant increase in supply, then likely we would see an increase in owner occupancy and potentially drive prices lower such that a greater percentile of the population could afford to buy property

The fact that 64% of households are owner occupiers does not mean that only 64% have the opportunity to own.

Young people at the beginning of their career may not yet know where they wish to live or intend to live. Huge numbers of foreign immigrants see themselves as being here only for a short time so would not want to buy.

Certainly there are also people who would love to buy but can't afford it (or can't get a mortgage) but lets not say that everyone in rented property is desperately trying to buy.

IveSeenTheLight

IveSeenTheLight wrote: »

Can you provide links for your stats above?

I've found a link showing the Median House Price of £175k (which was Q4 2011)
http://data.gov.uk/dataset/median_house_price

Quickly looking at the stats, they seem very rounded (Last 5 quarters were £180k, £180k, £175k, £180k & £186k)


I think I'd like to understand a little more the methodology, but also unsure at this time whether it's a valuable stat to put in context.

IveSeenTheLight

CLAPTON wrote: »

The fact that 64% of households are owner occupiers does not mean that only 64% have the opportunity to own.

Young people at the beginning of their career may not yet know where they wish to live or intend to live. Huge numbers of foreign immigrants see themselves as being here only for a short time so would not want to buy.

Certainly there are also people who would love to buy but can't afford it (or can't get a mortgage) but lets not say that everyone in rented property is desperately trying to buy.

I know, I know.
There are always exceptions, which is why I said (very roughly).
I'd be confident if you did enough analysis that the comparison to actual buyers would work out to be circa the top 2/3's percentile.