Paying the mortgage

ukcarper

Looking at measuring worth the equivalent earnings now of someone earning £1000 a year in 1972 is £17,800 but using RPI that £1000 would be £10,800 leaving £7000 to spend on additional housing costs.

Even if you allow £1000 a year for mobile and broadband which weren't around in the 70s it still leaves £6000.

[Deleted User]

ukcarper wrote: »

But £600 which is what he was earning is about 8% of £7500 which was average house price in 1972.

In 1972 average house price to earnings ratio was just under 5 now it's about 5.2x.

You really are hopeless at maths, aren't you?

Current average salary is about £24k. Current average house price is, coincidentally, about £240k. That's 10x as much, well above what you can get a mortgage for. You also ignored the difficulty of saving for a deposit, or actually paying such a huge mortgage with high utility bills and the cost of living.

CLAPTON

DELETED USER wrote:

You really are hopeless at maths, aren't you?

Current average salary is about £24k. Current average house price is, coincidentally, about £240k. That's 10x as much, well above what you can get a mortgage for. You also ignored the difficulty of saving for a deposit, or actually paying such a huge mortgage with high utility bills and the cost of living.

sometime two people combine together to buy a house

the average person doesn't buy the average house : many people rent

ukcarper

DELETED USER wrote:

You really are hopeless at maths, aren't you?

Current average salary is about £24k. Current average house price is, coincidentally, about £240k. That's 10x as much, well above what you can get a mortgage for. You also ignored the difficulty of saving for a deposit, or actually paying such a huge mortgage with high utility bills and the cost of living.

For a start average house price is £170k But the long term figures are based on full time male earnings so although they might be 10x using your figures that is irrelevant when comparing house prices to earnings over time.

HAMISH_MCTAVISH

ukcarper wrote: »

For a start average house price is £170k

Sort of.

The average price of a typical house is about 170K.

The average of all houses sold is around 240K.

And the average FTB house is closer to 100K.

But the long term figures are based on full time male earnings so although they might be 10x using your figures that is irrelevant when comparing house prices to earnings over time.

Long term average is 4 times male, mean, full time, average income.

Current average using the same data is 4.4.

HAMISH_MCTAVISH

DELETED USER wrote:

It's becoming obvious that all you boomers claiming it was just as hard or worse when you were young have not actually done the maths, or failed to understand the real cost of living for the young today.

I'm Gen X and I do think it's harder to buy today than it was when I first bought.

But that has nothing to do with house prices, and everything to do with mortgage rationing.

ukcarper

HAMISH_MCTAVISH wrote: »

Long term average is 4 times male, mean, full time, average income.

Current average using the same data is 4.4.

I believe they are Halifax figures the figures I quoted were Nationwide and a graph going back to 1953 is here http://www.housepricecrash.co.uk/graphs-average-house-price-to-earnings-ratio.php

Graph for 1983 to now is here

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


The average terrace house price is £125k Land Registry

A couple one on average and one on NMW would earn £36k so after 10% deposit they would require a 3.125x earnings mortgage.