HPC thread of the week

cells

ukcarper wrote: »

I believe he took the trouble to look up price for average terraced house in various areas then he looked up average full time earnings for that area and used that to calculate his figures.

yes I looked up the price of the average terrace in the regions and the average male wage of the region and posted what the wage to income was for the regions.

The crash-wishers cried well regions are big places and its not good data. So I then went and found the wage to terrace price of two dozen towns and cities and posted that.

Again they were not happy that the data showed many towns and cities were very affordable so they cried that well those towns are probably full of unemployed people or part time workers only so I went and found the percentage of people employed full time in each of the towns which was very close to 70% full time employed in all towns and cities bar London which was higher

and then...well they just ignored it all and continue to cry prices are far too high. Even though some towns are 2 x income, many towns are 3x income and about half the country is 4 x income or less

cells

wotsthat wrote: »

Sounds cheap to me.

In the now famous Stoke houses are cheap vs multiples and cheap vs renting.

Home ownership is falling when it's demonstrably cheaper to buy. I don't know why people who come from Stoke, who work in Stoke and have no plans to leave are choosing to pay more to rent.

EDIT: I think it's because they're either irrational or can't get a mortgage.

exactly

stoke was one of the cheapest towns where the average terrace costs £45k and the median full time male wage is £25,111

That is 1.8 x male wage

Even the nut jobs on HPC only want house prices to fall to 3.5 x male wage so even a crash-wisher wants prices in stoke to double!


In stoke an average terrace costs less than 1 x full time couple wage

cells

Birmingham Average Terrace vs Median full time wage
£101 k
£31.1 k

Even Birmingham our second biggest city is a very affordable 3.25 x full time male income. or 1.8 x joint male&female full time income

Do the crash wishers think that too expensive?
What should the average terrace in Birmingham cost? 1 x male wage? Free with 100 clubcard points?

padington

cells wrote: »

Birmingham Average Terrace vs Median full time wage
£101 k
£31.1 k

Even Birmingham our second biggest city is a very affordable 3.25 x full time male income. or 1.8 x joint male&female full time income

Do the crash wishers think that too expensive?
What should the average terrace in Birmingham cost? 1 x male wage? Free with 100 clubcard points?

The problem is that it's not fair that prices in London are so so high because so so many people want to live there.

Really everyone should have the right to mary whoever they want regardless of whether that person is already taken. That would be fair too.

TheeMaskedTurnip

padington wrote: »

The problem is that it's not fair that prices in London are so so high because so so many people want to live there.

Really everyone should have the right to mary whoever they want regardless of whether that person is already taken. That would be fair too.

It's their human rights. Innit.

mwpt

cells wrote: »

So how is banning or making BTL mortgages more dificult going to result in houses that cost two shillings?

You clearly believe in economics of supply and demand yet you don't when it comes to BTL in the same market as OO. You just bought a flat in Clapham Junction. I wonder, what price would an OO have paid for it. Did you get it BMV through an EA deal or did you outbid an OO? Or was it one of those unicorn flats that no OO wants to buy but plenty of people want to rent?

once prices max out at the new credit environment, we will be in a situation where owners are at max level (something like 72% owners 18% social 10% PR).

Can you tell me the exact credit costs and availability to achieve this? Should we have unlimited credit, self cert mortgage, credit at 0.01% because in that case I can buy the mansion in Wimbledon Common that I want? What is your methodology to determine how we price mortgages?

If instead you ration mortgages

We're not rationing mortgages.

westernpromise

padington wrote: »

The problem is that it's not fair that prices in London are so so high because so so many people want to live there.

Really everyone should have the right to mary whoever they want regardless of whether that person is already taken. That would be fair too.

I've been saying this about myself and Monica Bellucci for years.

Crashy_Time

cells wrote: »

Birmingham Average Terrace vs Median full time wage
£101 k
£31.1 k

Even Birmingham our second biggest city is a very affordable 3.25 x full time male income. or 1.8 x joint male&female full time income

Do the crash wishers think that too expensive?
What should the average terrace in Birmingham cost? 1 x male wage? Free with 100 clubcard points?

Tell us the areas or post the links to help us decide. My experience of Birmingham, admittedly from years ago, was that it was as rough as a badgers a*rse.

cells

mwpt wrote: »

You clearly believe in economics of supply and demand yet you don't when it comes to BTL in the same market as OO. You just bought a flat in Clapham Junction. I wonder, what price would an OO have paid for it. Did you get it BMV through an EA deal or did you outbid an OO? Or was it one of those unicorn flats that no OO wants to buy but plenty of people want to rent?

I dont own anything in clapham junction you must have me confused with someone else.

My last purchase was a property in hackney for close to the average London price. The few owners in the area (its about 80% renters) tend to buy the old large terrace homes for £1million or higher. Very few BTL will go and compete with the owners on the £1 million plus properties the owners buy because it simply does not add up to do that

Also even 20 years ago when prices in hackney were dirt cheap hackney was over 70% renters.

Its simple logistics, renters live more dense and are younger and dont have kids and rent smaller city centre properties. That makes sense as 3-5 young workers can be close to the jobs rather than a family where the man works and the woman looks after the kids. Those guys are in outer london which is more owners than renters.

mwpt wrote: »

Can you tell me the exact credit costs and availability to achieve this? Should we have unlimited credit, self cert mortgage, credit at 0.01% because in that case I can buy the mansion in Wimbledon Common that I want? What is your methodology to determine how we price mortgages?

let the market price mortgages, why do we need a regulator to make up stupid rules like no interest only (which you can get around by MEWing each two years). Why do we need a regulator who says no mortgage for over 65 years. Why do we need a regulator that says no mortgages for 25% down self cert even if the data shows they are less likely to default than normal borrowers?

mwpt wrote: »

We're not rationing mortgages.

so you say with one breath, followed by a second breath telling me that rationing mortgages for just people who dont need to self cert is a fine idea

cells

Crashy_Time wrote: »

Tell us the areas or post the links to help us decide. My experience of Birmingham, admittedly from years ago, was that it was as rough as a badgers a*rse.

half the country is close to the metric of Birmingham, eg wages to prices of ~ 2 x joint income