Nationwide- +0.8% MoM +3.9% YoY

Loughton_Monkey

92203 wrote: »

If house prices weren't so silly, yes. Why should someone on a low minimum wage be excluded from being able to pay a mortgage, safe in the knowledge that when they retire, they can live free of rent....

Surely you cannot be serious? Basically you promulgate the idea of virtually 100% home ownership.

What about cars being cheap enough so that the same minimum wage earner can buy one so that he doesn't have to rely on infrequent buses or trains late at night.....

We're talking here of somone bringing home £12K a year. What sort of price do you consider correctly "unsilly", and what sort of house would this be?

92203

Loughton_Monkey wrote: »

Surely you cannot be serious? Basically you promulgate the idea of virtually 100% home ownership.

We're talking here of somone bringing home £12K a year. What sort of price do you consider correctly "unsilly", and what sort of house would this be?

Although the notion of someone on a low wage owning their own place may seem a completely alien concept in today's climate, I think that anyone who is credit worthy and has a full time job should be able to buy their own house.

I would consider sensible pricing to be 2001 prices + inflation.

In my home city it was possible to buy a house on a NMW job back in the early 00's. If you don't believe me, look here and draw some comparisons ; http://www.zoopla.co.uk/house-prices/lincoln/newark-road-ln5/ln5-8nq/?q=ln58nq&results_sort=newest_listings&search_source=home

The area in question is rather grotty, as are many of the people who live there, but it is still a step on the ladder, and if you're committed for the long haul, infinitely preferable to being at the mercy of the poorly regulated private rental market.

HAMISH_MCTAVISH

House prices today are "heavily undervalued" says top economist.

https://forums.moneysavingexpert.com/discussion/4731133

HAMISH_MCTAVISH

92203 wrote: »

Nice one Hamish. Smug as ever, and gloating .

Fella wrote: »

gloating.

chucknorris

92203 wrote: »

If house prices weren't so silly, yes. Why should someone on a low minimum wage be excluded from being able to pay a mortgage, safe in the knowledge that when they retire, they can live free of rent.

I'm going to find it hard to communicate with someone so out of touch with reality, but I'll give it a go. So what system would you propose to determine the value of houses if not an open market? Because there is no way on earth that people can afford to buy in most areas on min wage even back in 2001, never mind now.

ruggedtoast

chucknorris wrote: »

I'm going to find it hard to communicate with someone so out of touch with reality, but I'll give it a go. So what system would you propose to determine the value of houses if not an open market? Because there is no way on earth that people can afford to buy in most areas on min wage even back in 2001, never mind now.

Maybe the cost of food will go up so much that no one on a minimum wage job will be able to afford that either. Presumably that will please and delight you as well.

chucknorris

ruggedtoast wrote: »

Maybe the cost of food will go up so much that no one on a minimum wage job will be able to afford that either. Presumably that will please and delight you as well.

Maybe it will but I wouldn't have thought so as buying food is a necessity and wouldn't the min wage be linked to buying food? Buying a house however is not a necessity!

EDIT: What makes you think I am pleased and delighted? Did I mistakenly sound a bit like you talking about Bruce Banner like you often do?

92203

chucknorris wrote: »

I'm going to find it hard to communicate with someone so out of touch with reality, but I'll give it a go. So what system would you propose to determine the value of houses if not an open market? Because there is no way on earth that people can afford to buy in most areas on min wage even back in 2001, never mind now.

I think it's you who's out of touch and possibly deluded, if you genuinely believe that we have a free market when it comes to housing.

Instead we have a deliberately engineered supply shortage, masqueraded behind archaic planning regulations. Prices are increased further by cheap credit and numerous measures to underpin high house prices - HTB, FLS, SMI etc.

Reduce the supply-side restriction, and houses (and crucially building land) will become much more inexpensive, and ultimately houses more affordable to buy or rent!

Finally, with regard to buying on NMW back in 2001 - look at the prices here - clearly possible, and Lincoln is a nice city too

http://www.zoopla.co.uk/house-prices/lincoln/newark-road-ln5/ln5-8nq/?q=ln58nq&results_sort=newest_listings&search_source=home

Then we have my parent's old house.

http://www.zoopla.co.uk/house-prices/lincoln/nettleham-road/ln2-1rw/?q=ln21rw&search_source=nav

Sold for £64K in 1999 (affordable on 1 x normal wage), last sold for £225k in 2012 (would require 2x >£25k incomes or 1 >£50k wage).

Based on the above, people who weren't able to buy before the boom are at a significant disadvantage.

ukcarper

92203 wrote: »

I think it's you who's out of touch and possibly deluded, if you genuinely believe that we have a free market when it comes to housing.

Instead we have a deliberately engineered supply shortage, masqueraded behind archaic planning regulations. Prices are increased further by cheap credit and numerous measures to underpin high house prices - HTB, FLS, SMI etc.

Reduce the supply-side restriction, and houses (and crucially building land) will become much more inexpensive, and ultimately houses more affordable to buy or rent!

Finally, with regard to buying on NMW back in 2001 - look at the prices here - clearly possible, and Lincoln is a nice city too

http://www.zoopla.co.uk/house-prices/lincoln/newark-road-ln5/ln5-8nq/?q=ln58nq&results_sort=newest_listings&search_source=home

Then we have my parent's old house.

http://www.zoopla.co.uk/house-prices/lincoln/nettleham-road/ln2-1rw/?q=ln21rw&search_source=nav

Sold for £64K in 1999 (affordable on 1 x normal wage), last sold for £225k in 2012 (would require 2x >£25k incomes or 1 >£50k wage).

Based on the above, people who weren't able to buy before the boom are at a significant disadvantage.

First thing to remember is that 1999 was the bottom of biggest crash since war and by 2001 they were still very low compared to long term average. Secondly the minimum wage was £3.70 in 2001 and is £6.31now.

chucknorris

92203 wrote: »

I think it's you who's out of touch and possibly deluded, if you genuinely believe that we have a free market when it comes to housing.

Instead we have a deliberately engineered supply shortage, masqueraded behind archaic planning regulations. Prices are increased further by cheap credit and numerous measures to underpin high house prices - HTB, FLS, SMI etc.

Reduce the supply-side restriction, and houses (and crucially building land) will become much more inexpensive, and ultimately houses more affordable to buy or rent!

Finally, with regard to buying on NMW back in 2001 - look at the prices here - clearly possible, and Lincoln is a nice city too

http://www.zoopla.co.uk/house-prices/lincoln/newark-road-ln5/ln5-8nq/?q=ln58nq&results_sort=newest_listings&search_source=home

Then we have my parent's old house.

http://www.zoopla.co.uk/house-prices/lincoln/nettleham-road/ln2-1rw/?q=ln21rw&search_source=nav

Sold for £64K in 1999 (affordable on 1 x normal wage), last sold for £225k in 2012 (would require 2x >£25k incomes or 1 >£50k wage).

Based on the above, people who weren't able to buy before the boom are at a significant disadvantage.

Nope it is definitely you that is deluded and out of touch with reality. Of course they are at a disadvantage the market has moved on, man up and deal with it! Buying a house isn't a right, obviously not everyone will be able to afford it, especially those on min wage.