UK Affordability still very good

ukcarper

Graham_Devon wrote: »

A room? £600 per month?

Kind of shows just how crazy things have got. We don't tend to notice as it creeps in like this. But 30 years ago, if you'd said to anyone it would cost you £600 per month to rent a room in a suburb of London they wouldn't have believed you and would probably have said something about 3rd world countries.

£600 for a room is now seen as OK and, it seems, somewhat "cheap".

I agree prices in London are very expensive but it was back on the 70s, I couldn't afford to live in London back then.

£600 a month seems a lot to me but renting that would allow that person to save an extra £600 a month using Wengerin's figures.

WengerIn

ukcarper wrote: »

Your post is an example of over egging it the other way, if people are serious about getting a property they should not be renting a flat on thier own with all the cost that involves and £833 leaves a lot of scope for saving.

You can rent a room in Dagenham for less that £600 a month including bills.

As I say, the £833 means that if you save for 5.5 years you have your 20% deposit. If we put that up to a grand (she rents the room but still doesn't eat or mensturate) then she gets a deposit together in a bit less than 5 years and then spends her life crapping herself if it looks like base rates are going to get cranked uo to 3%.

If you think that means houses are affordable then more fool you.

WengerIn

ukcarper wrote: »

I agree prices in London are very expensive but it was back on the 70s, I couldn't afford to live in London back then.

£600 a month seems a lot to me but renting that would allow that person to save an extra £600 a month using Wengerin's figures.

An extra £300 not £600. And I haven't put anything in for the inevitable move that is par for the course renting in London.

ukcarper

WengerIn wrote: »

An extra £300 not £600. And I haven't put anything in for the inevitable move that is par for the course renting in London.

£600 £300 rent £200 council tax gas electric etc.

Correction £400 after re reading I see you have included council tax in rent.

I'm not saying GreatApe is right as I don't think he is but I don't think saving is the problem if you are committed. You don't need a 20% deposit and if you tried hard you could probable save £8 to £10k a year.

[Deleted User]

I was paying £550 a month to rent a room in zone 3 London 12 years ago and that seemed a decent price.

GreatApe

In zone 2 Hackney the going rate is about £650 including bills and the full time median take home pay is £2,250 leaving. A zone 1-2 travail card is £110 per month if you spend £490 a month on food/cloths/other that still leaves £1,000 per month you can save.

If you start working age 21 by the time you are 30 you could have saved £108,000 + a lot of interest.
Partner up at 30 with someone who was also financially responsible and you have £216,000 + a lot of interest and also the ability to borrow £280,000 at 4 x joint income

This savings and 4 x income borrowing allows a budget in excess of the average terrace.

WengerIn

ukcarper wrote: »

£600 £300 rent £200 council tax gas electric etc.

Correction £400 after re reading I see you have included council tax in rent.

I'm not saying GreatApe is right as I don't think he is but I don't think saving is the problem if you are committed. You don't need a 20% deposit and if you tried hard you could probable save £8 to £10k a year.

And then instead of borrowing 8x your income you're borrowing 9 or 10.

The fundamental problem with all Ape's threads like this is that they're rubbish. On my figures you saved ten grand a year, more in fact. Only trouble is you save for 5.5 years and borrow 8.7x your income.

GreatApe

Graham_Devon wrote: »

A room? £600 per month?

That room not only gets you a room it gets you a £500 per month post tax income boost compared to much of the rest of the country.

Kind of shows just how crazy things have got. We don't tend to notice as it creeps in like this. But 30 years ago, if you'd said to anyone it would cost you £600 per month to rent a room in a suburb of London they wouldn't have believed you and would probably have said something about 3rd world countries.

Its just inflation at play, like how my mother says bus ticket prices are silly they used to be 20p in her time

The rate is maybe £350-£400 in most the country and £550-£650 in London so the London premium is £150-300 per month which is made up by the higher wages

£600 for a room is now seen as OK and, it seems, somewhat "cheap".

£600 for a room including bills is less than 27% of take home pay which is affordable

GreatApe

Windofchange wrote: »

So, there's none in social housing? None being put up by the council in a bed sit? None on the streets? Again, any comments on the articles and figures I posted above or are you just going to your default position of let's exclude a huge chunk of people and claim you've made some sort of point? Nobody agrees with you and even the more tolerant people on here have got tired.

Wanna dive into some actual figures as per above? Do you want to tell me why home ownership is falling off a cliff across the board? How the 16 million people with no savings are all just lazy and don't want to save?

How ironic you go on about confirmation bias every other post.

85% are not in private renting, you are trying to argue homes are so unaffordable and rents sky high but only 15% rent (2011 census) and the figure is even lower for the UK born and the migrants tend to be much more likely to rent (over 70% of recent 0-5 year migrants rent privately)

So all your energy is arguing that this 15% who rent privately are getting shafted and its impossible for them to buy. Let me ask how low do you think this 15% private renting should fall? To zero percent? is that desirable or possible? If not then what figure should private renting fall to maybe 10%? If so your argument is that 1.4 of the 28.4 million households are not in an ideal position. That would mean 27/28.4 million are in an ideal position = 95% of them

GreatApe

of the arguments posted by the crash cheerleaders about how expensive things are or how difficult it is for some fictional people to save a deposit were just as true 5 years ago too

Yet prices did not crash five years ago, they went up £180,000 since then for London and £60,000 for England. People over the last five years clearly were able to save and buy and prices were so affordable that they got bid up £60,000 over the period

And as always we are actually talking about people who have no help or inheritances, most uk born Brits will share in the annual £200 billion transfer of wealth from old to young.