"Housing Market Slumps"

ukcarper

economic wrote: »

that maybe what u want to believe. however its not a small minority. its a pretty significant one. maybe not most. but its certainly enough to explain high property prices .


from what I have seen by posters on these threads just clarified how much inequality has risen. yes true there are more people who cant afford to buy. this is due to inequality. but theres certainly no easy answer to this. to try to fix the problem will almost without doubt mean socialism and that is a very dangerous path to take.

Show me some figure to back it up then.

25% FTB had help from bank of mum and dad to the average value of £17.5k

economic

ukcarper wrote: »

Show me some figure to back it up then.

as GreatApe said getting figures about gifts is virtually impossible. so yes nothing to back up what I say so I don't blame you for not believing it.


im just observing what I have seen. the people I mention are certainly by no means rich nor do they have high flying or even specialist jobs requiring degrees. what they do have in common is that they are all baby boomers, working and saving hard over the years, having gone through periods of high wage growth (as wlel as property price growth).


agree probably not the majority or even the average. however it certainly is enough of a number to call is significant and the reason for the high price growth in London property.


here is a article on this:


http://www.telegraph.co.uk/financial-services/money-comparison/mortgages/bank-of-mum-and-dad-key-to-getting-on-the-property-ladder/


now I don't think its fair to take the mean (median is what should be used). however if you take the 5bn gifted and divide by the over 300k mortgages (lets use 400k to be super conservative). that's 125k - a large amount to gift.

martinsurrey

ukcarper wrote: »

I still think that's a very small minority.

ons wealth tables from 2014

Not on any side of this argument, just putting some data into it.

27% of households in the UK have a household wealth of over £500k (including pensions)

The average UK household has net wealth incl pensions of £225k.

if you go to the data by age.

median for each household type:

Single household, over 60/65
214,700

Couple both over 60/65, no children
549,700

Couple 1 over/ 1 under 60/65, no children
678,000

Couple, non-dependent children
466,100

ukcarper

economic wrote: »

as GreatApe said getting figures about gifts is virtually impossible. so yes nothing to back up what I say so I don't blame you for not believing it.


im just observing what I have seen. the people I mention are certainly by no means rich nor do they have high flying or even specialist jobs requiring degrees. what they do have in common is that they are all baby boomers, working and saving hard over the years, having gone through periods of high wage growth (as wlel as property price growth).


agree probably not the majority or even the average. however it certainly is enough of a number to call is significant and the reason for the high price growth in London property.


here is a article on this:


http://www.telegraph.co.uk/financial-services/money-comparison/mortgages/bank-of-mum-and-dad-key-to-getting-on-the-property-ladder/


now I don't think its fair to take the mean (median is what should be used). however if you take the 5bn gifted and divide by the over 300k mortgages (lets use 400k to be super conservative). that's 125k - a large amount to gift.

I've just posted those figures 25% average value £17.5k hardly hundreds of thousands

economic

martinsurrey wrote: »

ons wealth tables from 2014

Not on any side of this argument, just putting some data into it.

27% of households in the UK have a household wealth of over £500k (including pensions)

The average UK household has net wealth incl pensions of £225k.

if you go to the data by age.

median for each household type:

Single household, over 60/65
214,700

Couple both over 60/65, no children
549,700

Couple 1 over/ 1 under 60/65, no children
678,000

Couple, non-dependent children
466,100

there you go. a lot of wealth and that's just for median plus uk. imagine what it is for London figures (where pay is a lot higher and property has risen a lot more). people are wealthier then some people think.

economic

ukcarper wrote: »

I've just posted those figures 25% average value £17.5k hardly hundreds of thousands

sorry yes should be 12.5k not 125k. nothing really. however median is what should be used which I imagine would produce a much larger number.

ukcarper

economic wrote: »

sorry yes should be 12.5k not 125k. nothing really. however median is what should be used which I imagine would produce a much larger number.

I'm not disputing it has an effect, that's 25% that might not have bought.
That 5 billion is just 6.5% of cells 77 billion although I accept that that will not be the only part going into property.

ukcarper

economic wrote: »

there you go. a lot of wealth and that's just for median plus uk. imagine what it is for London figures (where pay is a lot higher and property has risen a lot more). people are wealthier then some people think.

I would be in that top 27% but my kids won't be seeing any of it to soon.

economic

ukcarper wrote: »

I would be in that top 27% but my kids won't be seeing any of it to soon.

because its all tied up in property?

ukcarper

economic wrote: »

because its all tied up in property?

Along with pension.