Average house prices nearly 7x average earnings

[Deleted User]

Just been on the BBC that average house prices are nearly 7x average earnings, up from 3x average earnings in 1997. In some parts of London it can be as high as 28x.

A few people on this forum have tried to claim that houses are still affordable in relation to wages. These numbers show that in relative terms the average person needs more than twice as long to save up a deposit and their mortgage, if they can get one, will eat up twice as much of their income as people who bought in 1997.

Blacklight

Interest rates were 14 times higher in 1997 than they are now.

I think this is one of the reasons that kids have to stay in school a bit longer these days.

chucky

DELETED USER wrote:

Just been on the BBC that average house prices are nearly 7x average earnings, up from 3x average earnings in 1997. In some parts of London it can be as high as 28x.

A few people on this forum have tried to claim that houses are still affordable in relation to wages. These numbers show that in relative terms the average person needs more than twice as long to save up a deposit and their mortgage, if they can get one, will eat up twice as much of their income as people who bought in 1997.

You obviously don't understand how averages work.

The average earning person doesn't buy average property.

The above average earning person buys average property.

HAMISH_MCTAVISH

:rotfl:

These bogus scare stories are spreading rapidly.

The bears are running scared.

Loving it....;)

bsms1147

chucky wrote: »

You obviously don't understand how averages work.

The average earning person doesn't buy average property.

The above average earning person buys average property.

Yes but weren't those points true in 1997, too?

shortchanged_2

DELETED USER wrote:

Just been on the BBC that average house prices are nearly 7x average earnings, up from 3x average earnings in 1997. In some parts of London it can be as high as 28x.

A few people on this forum have tried to claim that houses are still affordable in relation to wages. These numbers show that in relative terms the average person needs more than twice as long to save up a deposit and their mortgage, if they can get one, will eat up twice as much of their income as people who bought in 1997.

It's a fact many of the rampers on here try to hide all the time.

The low interest rates are painting a false picture at the moment giving the appearance of affordability.

SailorSam

I'm glad i don't need to get a mortgage as a Ftb on a house today. But having said that i remember in the late 70s when i did buy my first terraced house i worried about 25yrs of debt when i paid £6,500.

Thrugelmir

Blacklight wrote: »

Interest rates were 14 times higher in 1997 than they are now.

That's 70% for some mortgage products.....:shocked:

AndyGuil

Average earnings in one area at not the same as others.

chucky

bsms1147 wrote: »

Yes but weren't those points true in 1997, too?

Not what I'm saying.

I'm not saying house prices are high or low. I'm saying using average earnings means very little.

If everyone's salary used to calculate average earnings could buy a house we could make a direct comparison. It's comparing apples with pineapples.

gazzabboi

SailorSam wrote: »

I'm glad i don't need to get a mortgage as a Ftb on a house today. But having said that i remember in the late 70s when i did buy my first terraced house i worried about 25yrs of debt when i paid £6,500.

Back when mars bars were 20p