Where can you afford to live in the UK?

Graham_Devon

The BBC has released a neat little calcultator which shows you where you can afford to live in the UK.

You put in your deposit amount, what you require to buy or rent and then how much you can afford each month.

It then highlights which counties you can afford and the total percentage.

http://www.bbc.co.uk/news/business-23234033

So, to make a very basic point, looking at a family needing a 3 bed house, who can afford a 15k deposit and an £800 a month payment, they can afford to buy in 44% of the UK, but NO WHERE in the South bar South Wales. To be able to spend £800 a month on mortgage payments alone, they would have to be earning above the 26k average wage, but this still doesn't allow them to buy anywhere in the South based on the calculator (obviously there are ways and means).

They can afford to rent a 3 bed house in 64% of the UK, including the South West, and a couple of areas of Kent / Essex.

Someone who can afford £600 a month is limited to renting in just 30% of the UK and buying in 18% of the UK.

HAMISH_MCTAVISH

From the article....

"Requirements for higher deposits have raised the barriers to entry for home ownership," Mr Donnell says.

"This has increased demand for private renting and in many parts of the country renting costs more than buying with an 80% mortgage."

wotsthat

Graham_Devon wrote: »

So, to make a very basic point, looking at a family needing a 3 bed house, who can afford a 15k deposit and an £800 a month payment, they can afford to buy in 44% of the UK, but NO WHERE in the South bar South Wales. To be able to spend £800 a month on mortgage payments alone, they would have to be earning above the 26k average wage, but this still doesn't allow them to buy anywhere in the South based on the calculator (obviously there are ways and means).

There's Thanet or Dover if the cheaper end is chosen - I assume these are the cheapest parts of the South-East for a reason though.

I managed in a 2 bed house with 3 kids for a few years. A 3 bed was out of reach at the time.

HAMISH_MCTAVISH

Graham_Devon wrote: »

To be able to spend £800 a month on mortgage payments alone, they would have to be earning above the 26k average wage, but this still doesn't allow them to buy anywhere in the South based on the calculator (obviously there are ways and means).

1) The average wage of people in the South is higher than the national average wage of 26K.

2) The average wage of homebuyers is higher than the average wage of all people, as the bottom earning 30% have never been able to afford to buy.

3) Your statement is false. The calculator shows a fair few places in "the South" if you select "cheaper end of the market" housing, including Swindon, Medway, Thale, Ashford, Thanet, Dover, Plymouth, Torbay, Dorset, Somerset, etc.

Niv

Graham_Devon wrote: »

The BBC has released a neat little calcultator which shows you where you can afford to live in the UK.

You put in your deposit amount, what you require to buy or rent and then how much you can afford each month.

It then highlights which counties you can afford and the total percentage.

http://www.bbc.co.uk/news/business-23234033

So, to make a very basic point, looking at a family needing a 3 bed house, who can afford a 15k deposit and an £800 a month payment, they can afford to buy in 44% of the UK, but NO WHERE in the South bar South Wales. To be able to spend £800 a month on mortgage payments alone, they would have to be earning above the 26k average wage, but this still doesn't allow them to buy anywhere in the South based on the calculator (obviously there are ways and means).

They can afford to rent a 3 bed house in 64% of the UK, including the South West, and a couple of areas of Kent / Essex.

Someone who can afford £600 a month is limited to renting in just 30% of the UK and buying in 18% of the UK.

And had you selected that the property could be in the cheaper end of the local market with the parameters you state above your example family can afford to buy in 59% of UK.

Lagoon

We're the renters that can afford 30% of the UK on our current budget (and looking for mid-range housing). Interestingly, I have seen that a few of the areas we can afford (those at the very top of our budget) say this but are marked as unaffordable.

That all said, I don't much care where I live (area-wise; I'm more picky about the specific location and wouldn't move to a 'poor' area anywhere). I don't have an affinity to a certain area - I'll move where I can afford.

HAMISH_MCTAVISH

Graham_Devon wrote: »

Someone who can afford £600 a month is limited to buying in 18% of the UK.

False.

With 600 per month and a 15k deposit you can buy a 3 bedroom in 42% of the UK, a 2 bedroom in 52% of the UK, and a 1 bedroom in 63% of the UK.

With 800 per month and the same deposit it becomes 59% for a 3 bed, 75% for a 2 bed, and 85% for a one bed.

Goldiegirl

In the mid point of the market, I could currently afford to live in most areas if I sold my current house.

But when I retire, I don't think I'd be able to afford anywhere!

Graham_Devon

HAMISH_MCTAVISH wrote: »

1) The average wage of people in the South is higher than the national average wage of 26K.

It's not. Maybe in the South East. But not the South. Have a look at Bristol and the South West.

2) The average wage of homebuyers is higher than the average wage of all people, as the bottom earning 30% have never been able to afford to buy.

Granted, and the dispartiy keeps growing. This isn't a good thing.

3) Your statement is false. The calculator shows a fair few places in "the South" if you select "cheaper end of the market" housing, including Swindon, Medway, Thale, Ashford, Thanet, Dover, Plymouth, Torbay, Dorset, Somerset, etc.

Granted, I missed the disclaimer that I had gone for the middle option and hadn't tried out every option just to keep things simple. I was so busy covering my rear with the "there will be other ways and means" stuff I forgot to cover my rear with this one too.

lostinrates

Ok, I generally feel that where peoe can afford to live is pretty limited, so went to the calculator with interest and saw the questions focused on what people 'wanted' to live in. It made me short tempered so I decided not to bother.

Graham_Devon

lostinrates wrote: »

Ok, I generally feel that where peoe can afford to live is pretty limited, so went to the calculator with interest and saw the questions focused on what people 'wanted' to live in. It made me short tempered so I decided not to bother.

Why would it make you short tempered out of curisoty?

If you enter the low end of the market as the option, it will give you places, as Hamish found, in Plymouth.

I know where those places are, and personally would never buy a house there. I'm sure were all the same, and none of us would knowingly aspire to buy one of these places.

I'd rather spend more each month renting (by quite some way) than I would live in some of the much cheaper areas. They are cheaper for a reason.

Am I the only one? Would everyone else knowingly choose to buy for buying sake in one of these areas? Obviously if you are raised in such places your outlook may be different.

Or are we assuming everyone should hand over shed loads of cash to buy somewhere in an undesirable nieghbourhood? If they choose not to, should we feel angry that they avoid this choice?

This is the sort of stuff that many can afford in Devon, and it's the sort of stuff that calculator will look at.....



I may be a prude, but I wouldn't want to live there, not just on looks, but the crime figures are appuling, let alone spend my working life paying for it. (they are still around 100k).

if we just assume that places are affordable, then fine. But I do feel what you want comes into playm and mid range doesn't seem too outrageous?