UK Affordability still very good

GreatApe

One important factor when looking at this table is that at the end of the mortgage term our buyers are not in the same position. While the London buyer pays more of their income than the North East buyer he ends up with a house worth £400,000 more. So its not just housing they are paying for (the interest element of the mortgage) but also a savings account (the capital repayment part)


More reasonable FTB property purchases 25th percentile property prices.

GreatApe

8 regions, home to about 55% of the UK cost less to buy the average terrace in that region than to rent the average social home in the same region. Very affordable especially considering social rents go up each year while the mortgage does not.

The South West (17%), East England (19.3%) and South East (20.1%) are all well below that traditional definition many use as affordable for rents (1/3rd of take home pay)

Even London only costs 32.1% of a couples take home pay, the most affordable borough, Barking & Dagenham, costs just 19.8% of a couples take home pay for a terrace or 14.6% for a flat

davomcdave

GreatApe wrote: »

8 regions, home to about 55% of the UK cost less to buy the average terrace in that region than to rent the average social home in the same region. Very affordable especially considering social rents go up each year while the mortgage does not.

The South West (17%), East England (19.3%) and South East (20.1%) are all well below that traditional definition many use as affordable for rents (1/3rd of take home pay)

Even London only costs 32.1% of a couples take home pay, the most affordable borough, Barking & Dagenham, costs just 19.8% of a couples take home pay for a terrace or 14.6% for a flat

House buying is rationed by price. Social housing is rationed via waiting list. What's the waiting list in these regions?

The chief rationing factor is getting a deposit together which is simple if you live with your parents and don't eat for three years. Should my ex-girlfriend who was raped by her father have stayed at home until she could save a deposit or does she not get to buy or something else?

GreatApe

To try and cut off some silly questions and views before they arise:

Nobody can save a 20% deposit so while the mortgage is very affordable if you cant save the deposit you can not buy therefore it is not affordable so there!

It is not an issue for most, but 5% deposits are available if necessary.

The banks wont lend you that much as you fall above some mortgage criteria like 4.5x income or some other regulation/affordability rule that is due any minute now.

For a couple this is only a potential issue in London and only the more expensive boroughs

I am single nobody loves me so homes should be affordable to single person on a single income

Using the traditional 1/3rd of post tax income as affordable for rent, even for a single person 9 of the regions are affordable ranging from 14.9% to 34.1% of take home pay. And remember you own a house at the end of it unlike paying a third of your income in rent where you end up with nothing

But houses were a lot cheaper 10-15-20 years ago so they are expensive now

Something could be cheap 20 years ago and still be cheap today even though in the meantime its price doubled in real terms. The Cheapest English region the North East for instance is clearly cheap and yes it was a lot cheaper 20 years ago but it is still cheap today.

What if you lose your job, your mind, your wife, your dog then its not affordable!

Has nothing to do with the discussion

But my bedsit only costs £250 per month

Good for you crashy

But you can earn a better return on stocks and shares, my hindsight investments over the last 10 years have returned 1 million percent

Good Luck

davomcdave

GreatApe wrote: »

To try and cut off some silly questions and views before they arise:

Nobody can save a 20% deposit so while the mortgage is very affordable if you cant save the deposit you can not buy therefore it is not affordable so there!

It is not an issue for most, but 5% deposits are available if necessary.

The banks wont lend you that much as you fall above some mortgage criteria like 4.5x income or some other regulation/affordability rule that is due any minute now.

For a couple this is only a potential issue in London and only the more expensive boroughs

I am single nobody loves me so homes should be affordable to single person on a single income

Using the traditional 1/3rd of post tax income as affordable for rent, even for a single person 9 of the regions are affordable ranging from 14.9% to 34.1% of take home pay. And remember you own a house at the end of it unlike paying a third of your income in rent where you end up with nothing

But houses were a lot cheaper 10-15-20 years ago so they are expensive now

Something could be cheap 20 years ago and still be cheap today even though in the meantime its price doubled in real terms. The Cheapest English region the North East for instance is clearly cheap and yes it was a lot cheaper 20 years ago but it is still cheap today.

What if you lose your job, your mind, your wife, your dog then its not affordable!

Has nothing to do with the discussion

But my bedsit only costs £250 per month

Good for you crashy

But you can earn a better return on stocks and shares, my hindsight investments over the last 10 years have returned 1 million percent

Good Luck

Groaan.

If you are a low earner then you can't borrow enough to cover the deposit you can't save. Did you honestly learn nothing in 2008?

Low earners are poor and can't afford to buy a house or a bunch of shares or an E-Type. That you can't understand what it's like to be poor shouldn't mean you inflict your ridiculous ideas on the rest of us.

Why don't you try living off £40 a week for a month on groceries (all food, sanitation and cleaning products)? Just that. You still get your massive imputed rent and get to do whatever else your apparently massive wage and wealth affords you. Just live like not even the poorest person in the UK does in one part of their life for 4 weeks without eating out but you can use the store cupboard. Get yourself some insight.

Maybe they're making a fuss about nothing but it strikes me that you don't have a Scooby.

GreatApe

davomcdave wrote: »

Groaan.

If you are a low earner then you can't borrow enough to cover the deposit you can't save. Did you honestly learn nothing in 2008?

Low earners are poor and can't afford to buy a house or a bunch of shares or an E-Type. That you can't understand what it's like to be poor shouldn't mean you inflict your ridiculous ideas on the rest of us.

Why don't you try living off £40 a week for a month on groceries (all food, sanitation and cleaning products)? Just that. You still get your massive imputed rent and get to do whatever else your apparently massive wage and wealth affords you. Just live like not even the poorest person in the UK does in one part of their life for 4 weeks without eating out but you can use the store cupboard. Get yourself some insight.

Maybe they're making a fuss about nothing but it strikes me that you don't have a Scooby.

so the very poorest people in the UK can not afford to buy a house, thanks for that great insight

Now if you have anything to add about median wages buying average houses continue to post else stop trolling my thread

davomcdave

GreatApe wrote: »

so the very poorest people in the UK can not afford to buy a house, thanks for that great insight

Now if you have anything to add about median wages buying average houses continue to post else stop trolling my thread

I apologise if I keep conflating which idiot is posting something idiotic.

I'm sure you're wrong. I'm busy so I'll work out why later. It's a safe assumption on these 'make up a bunch of numbers' threads.

Tiners

(Not so) GreatApe - Can you please stop embarrassing yourself creating threads about how affordable housing is... it's bad enough that you feel the need to keep starting these threads all on the same subject, but when you end up having discussions with YOURSELF on them it's just bizarre.

Windofchange

Are you trying to set a record for the most amount of threads started on the same topic?

Windofchange

Seeing as you never open / read articles to inform yourself, I have summarised the key points. All recent.

Shelter / BBC - March 2017

"Nearly eight out of 10 families across England are unable to afford newly built homes in their local area, a report by housing charity Shelter says. Its research shows rising house prices hitting all parts of the country, not just London and the south-east."

AND

"It said the problem was worst in the West Midlands, where 93% of privately renting, working families could not afford to buy a newly built home, even if they used the government's Help to Buy scheme."

http://www.bbc.co.uk/news/education-39128037

FROM THE ONS - March 2017

"The median price paid for residential property in England and Wales increased by 259% between 1997 and 2016; median individual annual earnings increased by 68% in the same time period."

"On average, working people could expect to pay around 7.6 times their annual earnings on purchasing a home in England and Wales in 2016, up from 3.6 times earnings in 1997."

https://www.ons.gov.uk/peoplepopulationandcommunity/housing/bulletins/housingaffordabilityinenglandandwales/1997to2016

Money wise - Feb 2017

"Despite Londoners having an average wage of £34,000 a year – the highest average earnings in the country – the average house costs £563,041, which is double the national average and 16.6 times more than the typical London salary."

http://www.moneywise.co.uk/news/2017-02-06/house-prices-unaffordable-london-s-buyers-and-renters

City AM - April 2017

"In 87 per cent of cases (Local Authorities) across England, Scotland and Wales, house prices were more than five times average salaries."

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

Comment regarding the above on how UK affordability is still very good?

ukcarper

davomcdave wrote: »

Groaan.

If you are a low earner then you can't borrow enough to cover the deposit you can't save. Did you honestly learn nothing in 2008?

Low earners are poor and can't afford to buy a house or a bunch of shares or an E-Type. That you can't understand what it's like to be poor shouldn't mean you inflict your ridiculous ideas on the rest of us.

Why don't you try living off £40 a week for a month on groceries (all food, sanitation and cleaning products)? Just that. You still get your massive imputed rent and get to do whatever else your apparently massive wage and wealth affords you. Just live like not even the poorest person in the UK does in one part of their life for 4 weeks without eating out but you can use the store cupboard. Get yourself some insight.

Maybe they're making a fuss about nothing but it strikes me that you don't have a Scooby.

Although GreatApe's post doesn't stand much scrutiny I could live easily live on £40 a week for groceries etc.