In 70% of England you can buy the average terrace on minimium wage

cells

The Land registry has started splitting its house prices by type.
So you can now look up the average price of a flat or a terrace or a semi or a detached and its interesting to note that according to the land registry the average terrace costs

NE = £67k
NW = £70k
Yorkshire and Humber = £78k

Three regions home to 15 million people and it is cheap enough for a single full time minimum wage to afford to buy the average terrace house.

E-Midlands = £90k
W-Midlands = £92k

Two regions home to 10 million people and it is cheap enough for one full time and one part time min wage to afford the average terrace

South West = £152k
East = £168k

Two regions home to 11 million people and a couple on just a little above min wage (or working 50h weeks on min wage) can buy the average terrace in those two regions


7 regions of England home to almost 70% of the population where the average terrace can be bought by a couple on minimum wage or less.

cells

South East = £201k

Here a couple on joint income of ~£42k can afford to buy the average terrace home. Should be affordable by a couple on the average £26.5k each

cells

London = £457k

It is only really when you jump to London does the joint income jump to an unrealistic (for the average locals) joint income of £97k needed.

cells

And remember this is for the average terrace in the region. If people on min wage are buying the average terrace who will buy the terraces in the cheaper parts of the region and the flats in the region?

Graham_Devon

Yer, maybe - I haven't and won't be bothering to check the figures.

I see your point - but I think it's a point which ignores reality somewhat. I could go further into detail about this, but to keep it short the first issue is you seem to assume everyone on minimum wage has no other debt, so would be able to raise a mortgage. The second issue would be you assume everyone on minimum wage works full time....(which is pretty impossible for anyone with a small kid or two). The third issue is that you seem to assume that on the minimum wage they will be able to afford to save for a deposit while paying all other current living costs (rent, car, etc). The fourth is that you assume that the areas with all this minimum wage work are also the areas with the lower cost housing. Theres loads of 2 bed terraces in the old Yorkshire mining towns that no doubt can be picked up at bargain prices. But is there full time work there too?

Suffice to say, you make a point, but it's a very basic point lacking any sense of reality or detail..... the reason so many won't be doing what you suggest is possible is precisely because it's not possible due to other life factors and other living costs.

Mistermeaner

Good news.

kinger101

It doesn't quite work though does it. The Yorkshire and Humber region is massive. House prices in Bridlington are of little relevance to someone living in say York.

cells

For the average terrace x median gross annual earnings for the region

NE 2.7x
NW 2.7x
Y&H 3.1x
EM 3.6x
WM 3.7x
SW 5.9x
East 6.3x
SE 7.0x
Lond 13.0x

[Deleted User]

Now, what's interesting is that in my local area there are very, very few terrace houses. There is a whole load of new flats, but very few little houses. There are very, very few 'starter homes' - and now they've rocketed in price; 4 years ago you'd get one for £200-230k, now it's £300-330k

Blacklight

Graham_Devon wrote: »

Yer, maybe - I haven't and won't be bothering to check the figures.

I see your point - but I think it's a point which ignores reality somewhat. I could go further into detail about this, but to keep it short the first issue is you seem to assume everyone on minimum wage has no other debt, so would be able to raise a mortgage. The second issue would be you assume everyone on minimum wage works full time....(which is pretty impossible for anyone with a small kid or two). The third issue is that you seem to assume that on the minimum wage they will be able to afford to save for a deposit while paying all other current living costs (rent, car, etc).

Suffice to say, you make a point, but it's a very basic point lacking any sense of reality or detail..... the reason so many won't be doing what you suggest is possible is precisely because it's not possible due to other life factors and other living costs.

I don't know how you've done it Graham, but faced with 100% absolute cast iron fact, you've still managed to argue the toss rather than accept it. It's denial man.

I always said averages divided averages was a false measure. Now we've got proper clarity and real detail, you gone down a tier and all of sudden average house prices 'round your way' are too high for priced out debt ridden, part time workers with dependants who live beyond their means.

Priced out homeless buskers with skinny dogs will be your next rationale no doubt.

cells

kinger101 wrote: »

It doesn't quite work though does it. The Yorkshire and Humber region is massive. House prices in Bridlington are of little relevance to someone living in say York.

York (£177.8k) is the one outlier in Yorkshire and the Humber but its not even 5% of the population of the region.

But even in york a couple working 52h each on min wage (£7.20ph) can buy the average terrace house.

But if min wage people are buying the average terrace house in york who should buy the less than average terrace homes in York or the terrace homes in the less desirable parts of york? leave them empty?