£194,400 minimum wage

GreatApe

A couple in 2020 working 40 hours a week 51 weeks of the year multiply their earnings by 4.5 x via a mortgage and they have a 15% deposit that gives them a budget of £194,400 in 2020

By comparison according to Land Registry these are the average prices today

North East £123.7k

Norther Ireland £125.5k

Scotland £138.8k

Wales £145.3k

North West £152.6k

Yorkshire&Humber £152.2k

East Midlands £176.8k

West Midlands £180.5k

Houses are so cheap in 8 UK regions that a couple in 2020 on min wage can afford to buy not a house on the lower end but the median house in their region. There is no housing bubble in most the country homes are cheap :T

PasturesNew

Lots of flaws in that ....

That's the idea that politicians put out there as a dreamed up NMW by 2020 to try to head for, not fact.

Not everybody's in a couple.

Not everybody can/wants to live in those places where houses are cheaper.... and if they all moved there the prices would go up.

A region is a huge area - but you have to live close to where work is if you're not paid a lot, or things aren't likely to improve, due to the cost of commuting. Half way up a mountain 40 miles from a main road is cheap for a reason.

House prices WILL increase as wages do because people will be able to borrow more.

Thrugelmir

GreatApe wrote: »

A couple in 2020 working 40 hours a week 51 weeks of the year multiply their earnings by 4.5 x via a mortgage and they have a 15% deposit that gives them a budget of £194,400 in 2020

In case you hadn't realised. The standard statutory entitlement to holiday leave is 5.6 weeks or 28 days.

Reduces their potential borrowing ability.

Rise in employee auto enrolment pension contributions may reduce the amount lenders are willing to advance. By April 2019 will have risen to 4%.

michaels

IN case you hadn't realised the entitlement is to paid holiday leave so actually the 194k is probably a bit under - but then 40 hours is probably more than median full time weekly hours.....

GreatApe

michaels wrote: »

IN case you hadn't realised the entitlement is to paid holiday leave so actually the 194k is probably a bit under - but then 40 hours is probably more than median full time weekly hours.....

I reckon many lower paid workers work more hours to try and make up for the lower hourly pay with more hours

Anyway the median full time male income is about twice the min wage that is more representative of what people earn. Still with min wage folk having the ability to bid to almost £200,000 where is the housing affordability problem? Even our second biggest city a median 2 bed terrace is £130,000 easily affordable by median full time earners

davomcdave

GreatApe wrote: »

I reckon many lower paid workers work more hours to try and make up for the lower hourly pay with more hours

Anyway the median full time male income is about twice the min wage that is more representative of what people earn. Still with min wage folk having the ability to bid to almost £200,000 where is the housing affordability problem? Even our second biggest city a median 2 bed terrace is £130,000 easily affordable by median full time earners

The median household income is £23,500.

Andy_L

davomcdave wrote: »

The median household income is £23,500.

Which is a different number/measure to what GreatApe is talking about, which is still higher than £23.5k.

The median disposable household income is £25,600

https://www.ons.gov.uk/peoplepopulationandcommunity/personalandhouseholdfinances/incomeandwealth/bulletins/nowcastinghouseholdincomeintheuk/2015-10-28

Whilst median income (for full-time workers) is £28k

https://www.ons.gov.uk/employmentandlabourmarket/peopleinwork/earningsandworkinghours/bulletins/annualsurveyofhoursandearnings/2016provisionalresults

davomcdave

Andy_L wrote: »

Which is a different number/measure to what GreatApe is talking about, which is still higher than £23.5k.

The median disposable household income is £25,600

https://www.ons.gov.uk/peoplepopulationandcommunity/personalandhouseholdfinances/incomeandwealth/bulletins/nowcastinghouseholdincomeintheuk/2015-10-28

Whilst median income (for full-time workers) is £28k

https://www.ons.gov.uk/employmentandlabourmarket/peopleinwork/earningsandworkinghours/bulletins/annualsurveyofhoursandearnings/2016provisionalresults

My apologies, faulty memory.

My point really is that comparisons like this are a bit silly. Why would a young couple borrow 4.5x joint wage if both are on the minimum wage? If one loses their job or their health or, heaven forbid, they decide to have kids (yeah, I know that according to many here kids are optional which is an even more stupid idea than Brexit) they find themselves trying to repay a mortgage 9x their wage. If they're an older couple and still on the minimum wage they'd be nuts to borrow so heavily.

Pretending that houses in Britain are cheap doesn't mean that they are.

Windofchange

And back in the real world

http://www.cityam.com/262960/uk-house-prices-unattainable-no-not-just-london-most

economic

Windofchange wrote: »

And back in the real world

http://www.cityam.com/262960/uk-house-prices-unattainable-no-not-just-london-most

if people cant afford to buy they only have themselves to blame. they should stop spending so much and actually save. buy smaller places and cheaper locations. its simple really. no one is entitled to property. prices are based on supply and demand and nothing else.

davomcdave

economic wrote: »

if people cant afford to buy they only have themselves to blame. they should stop spending so much and actually save. buy smaller places and cheaper locations. its simple really. no one is entitled to property. prices are based on supply and demand and nothing else.

What do you think happens to demand for housing when interest rates are cut to zero and why do you think aspiring home buyers are responsible for that?