Panorama tonight: The Great House Price Bubble?

ukcarper

MFW_ASAP wrote: »

And Southwest. What I find interesting is that very few of the usual suspects who moan about high house prices actually live in the South East and are therefore not subject to these said high house prices. Those people on here who do live in the south east are too busy enjoying full employment to care.

To be high It's fairly high in South West at £170k the East is pretty high at £180k but that does include Essex.

Loughton_Monkey

MFW_ASAP wrote: »

So you're saying that it was just as hard in the past to buy a house?

I think you're agreeing with chucky and the stance of many on here.

A glance at Nationwide affordability data indicates the current "Earnings Ratio" of 4.67

Over the 122 quarters (30 years) it shows 29 quarters (i.e. 24%) where the earnings multiplier has been higher.

When you factor in record low mortgage rates it can be argued that current affordability is not particularly more difficult than average. But as I have said before, the true affordability of a house cannot be measured purely by a single number. Other factors are involved:

The amount of deposit required/used.
Interest rate of loan.
Other commitments like children, other loans,......

IveSeenTheLight

Loughton_Monkey wrote: »

A glance at Nationwide affordability data indicates the current "Earnings Ratio" of 4.67

Over the 122 quarters (30 years) it shows 29 quarters (i.e. 24%) where the earnings multiplier has been higher.

When you factor in record low mortgage rates it can be argued that current affordability is not particularly more difficult than average. But as I have said before, the true affordability of a house cannot be measured purely by a single number. Other factors are involved:

The amount of deposit required/used.
Interest rate of loan.
Other commitments like children, other loans,......

According to Nationwide FTB Affordability index 68 out of 122 quarters (55.74%) have been higher in terms of mortgage payments as a % of mean take home pay

IveSeenTheLight

IveSeenTheLight wrote: »

According to Nationwide FTB Affordability index 68 out of 122 quarters (55.74%) have been higher in terms of mortgage payments as a % of mean take home pay

According to Halifax Affordability Index, the average mortgage repayments as a percentage of income is 27.3% as opposed to the 30 year average of 36%

105 quarters out of 123 (85.37%) have been higher than they currently are

grizzly1911

MFW_ASAP wrote: »

So you're saying that it was just as hard in the past to buy a house?

I think you're agreeing with chucky and the stance of many on here.

It has never been easy.

In the past it could be achieved by people on modest single income with perhaps a second limited part time wage.

Two good full time wages have become necessary. What happens next?

Pobby

When I said I had 2 jobs it was not a bad task at all. Job I loved in the day but 2 gigs in a band a week certainly boiosted the incomed and of course was fun.

chucky

Pobby wrote: »

When I said I had 2 jobs it was not a bad task at all. Job I loved in the day but 2 gigs in a band a week certainly boiosted the incomed and of course was fun.

And probably illegal.

I hope that you declared that cash income for tax purposes.

Jonbvn

grizzly1911 wrote: »

It has never been easy.

In the past it could be achieved by people on modest single income with perhaps a second limited part time wage.

Two good full time wages have become necessary. What happens next?

Harvesting of body parts?;)

Aberdeenangarse

chucky wrote: »

And probably illegal.

I hope that you declared that cash income for tax purposes.

I'm sure he did.You really shouldn't judge people by your own standards.

MFW_ASAP

grizzly1911 wrote: »

It has never been easy.

In the past it could be achieved by people on modest single income with perhaps a second limited part time wage.

You seem to be contradicting yourself a lot these days, Griz. I guess that's what comes from playing devil's advocate all the time, sometimes you even disagree with yourself.