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

cells

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). 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.

so are you saying people who don't work full time should reasonable expect to buy the average terrace home? Maybe part time folk on 15 hours a week should be able to buy the average terrace home in their region?

I have no objection to that. However who is going to buy the less than average terrace house then or the terrace homes in the less than average desirable area? people working 5 hours a week on min wage?

And the 18% of homes that are social, who will fill them up if people working 5 hours a week are buying their own homes. ghosts?


and if your argument is that in some places there are no jobs paying even min wage i would suggest you are wrong as the lowest paid region is the NE and the median gross annuall earnings in the NE are £24,876

missbiggles1

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.

Well, it's only about 40 miles between York and Bridlington so it's perfectly commutable for someone who works in York but can't afford to buy there.

Towser

This is very interesting to me but how did you arrive at the 70%.

According to the news there is not 70% available?

These are historic figures? So today's minimum wage cannot buy it now?

Correct me if I am wrong. Why do I feel so poor then?

I am in the SE there is a two up two down on the market on Rightmove for £335,000.

I like your thinking style but I don't think the figures add up.

What I would like to know from you is which least deprived area can you buy the biggest house for £335,000. The least deprived area being the most important factor.

cells

cells wrote: »

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

For me this is the main data point. We all know London is expensive but with this ratio its easy to see that at least 5 regions representing a huge chunk of the nation are very affordable

The NE/NW/Y&H seem especially good value relative to wages. And this can be seen by the fact that in those regions prices are lower in nominal terms than they were 10 years ago!

Region : Ten years ago ---> Now

The north East £78,300 ---> £67,500
The north West £72,700 ---> £69,700
Y&H £81,300 ---> £78,000

Prices are a good deal more affordable now than they were ten years ago.

cells

Towser wrote: »

This is very interesting to me but how did you arrive at the 70%.

According to the news there is not 70% available?

These are historic figures? So today's minimum wage cannot buy it now?

Correct me if I am wrong. Why do I feel so poor then?

I am in the SE there is a two up two down on the market on Rightmove for £335,000.

I like your thinking style but I don't think the figures add up.

as per the first post

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.

You say you are in the South East which is not in those 7 regions, in the South East the average terracce is £201k and 7x average median annual gross earnings. You note your area is £335k for terrace homes on rightmove that means you are in a more than average price SE area.

What I would like to know from you is which least deprived area can you buy the biggest house for £335,000. The least deprived area being the most important factor.

so you want me to find the top 10% of towns in your region, and find the biggest house a budget of £335,000 will get you? the idea being that in the best most expensive places £335,000 does not get you much?

I am willing to do that for you if you are willing to find me the top 10 restaurants in your region and tell me what £20 will buy me for dinner in them

Graham_Devon

cells wrote: »

I have no objection to that. However who is going to buy the less than average terrace house then or the terrace homes in the less than average desirable area? people working 5 hours a week on min wage?

BTL landlords.

There was a programme on not too long back which a thread was created on here about.

Basically London landlords would buy up terraces in great quantities, especially around Liverpool and Manchester. They would then rent them to HB tenants and realise the profit. There are entire business setup in the area to act as a go between between the landlord, tenant and seller. The landlord very rarely even visits the property.

It's big business right now and the properties you are talking off, specifically the lower end in the deprived areas are the number 1 properties on the list for this kind of buyer.

PasturesNew

The flaw is it speaks of regions.... I bet where the 'affordable on NMW' houses are, there are no jobs at all, nothing, not even NMW jobs .... so then you have to add on the cost of commuting, making it unaffordable.

Thrugelmir

cells wrote: »

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.

Trouble is your logic is flawed. Mortgage lending is based on affordability not a lending multiple of income.

cells

Thrugelmir wrote: »

Trouble is your logic is flawed. Mortgage lending is based on affordability not a lending multiple of income.

My logic says that the following areas are very affordable
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

How low do the earning multiples need to go for it to be affordable in your books? less than 2x? less than 1x?

Towser

It's my perception that 7O% of the population live in the SE that's why house prices are sooo expensive. The only place me or OH can get a job in our industries.

so you want me to find the top 10% of towns in your region, and find the biggest house a budget of £335,000 will get you? the idea being that in the best most expensive places £335,000 does not get you much

? No

I know where the least deprived areas are but which one of them is most affordable - find the biggest house a budget of £335,000 will get ?

I cannot do the restaurant thing though. But at least let me know the method so that I can at least work it out for myself.