Correlation between Unemployment and House Prices

Blacklight

HAMISH_MCTAVISH wrote: »

From the ONS:

The average for FTB's in 2007....

Income = £42,000
Mortgage Advance = £127,000 (LTV = 82%)
Purchase Price = £154,000

And the average for Q1 2015...

Income = £48,000
Mortgage Advance = £152,000 (LTV = 75%)
Purchase Price = £202,000

For home movers in 2007...

Income = £61,000
Mortgage Advance = £159,000 (LTV = 78%)
Purchase Price = £203,000

For home movers in Q1 2015

Income = £72,000
Mortgage Advance = £199,000 (LTV = 61%)
Purchase Price = £321,000



So the average Loan to Value has reduced while prices have increased, leading to markedly higher deposits for both FTB and Movers, in quite a significant way since the credit crunch.

There is little doubt property is consolidating in the hands of a wealthier but smaller percentage of society.

And that ongoing credit restrictions are also worsening the housing shortage and so indirectly driving up both prices and rents.

The question is, what comes next? (Another boom in prices now looks baked in, but what else?)

LIES! We don't care about the facts here, we just want to know how things compare to the average of everything!

HAMISH_MCTAVISH

Blacklight wrote: »

LIES! We don't care about the facts here,

Heh... Then you're on the wrong website.

For that approach try hpc....

Speaking of which, I guess the OP does explain why the usual suspects were so very gleeful back when unemployment was rising... distasteful as it is that anyone could celebrate misery like that at least their suspicions of links to unemployment and house prices had some basis in fact.

The-Joker

what messes up the numbers is all the part timers and self employed who are really relying on the gov, they may as well be unemployed.

HAMISH_MCTAVISH

Bumping for relevance

CLAPTON

presumably it tells us that immigrants tend to go to areas where there are jobs.

with the new wall of immigration we can expect higher price in London and the places where there are jobs.

unemployment stats are not a very useful guide to actual employment opportunities due to our mad benefits system.