UK Affordability still very good

Graham_Devon

WengerIn wrote: »

As I say, the £833 means that if you save for 5.5 years you have your 20% deposit.

Theres more to this aswell.

You have your deposit for the price of a house 5.5 years ago.

So the 5.5 years of savings still sees that person some way off having enough of a deposit if the trend in house over the last 5 years continues.

A lot of people have commented on this in articles, the TV etc. You do at least have cash savings though.

always_sunny

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".

It is reasonably cheap, you must think it's mad for TfL to charge £215.90 a month for a travel card to travel from Dagenham to Central London then!

WengerIn

always_sunny wrote: »

It is reasonably cheap, you must think it's mad for TfL to charge £215.90 a month for a travel card to travel from Dagenham to Central London then!

To be fair I'd pay £220 not to be in Dagenham any more.

GreatApe

Graham_Devon wrote: »

Theres more to this aswell.

You have your deposit for the price of a house 5.5 years ago.

So the 5.5 years of savings still sees that person some way off having enough of a deposit if the trend in house over the last 5 years continues.

A lot of people have commented on this in articles, the TV etc. You do at least have cash savings though.

In most the country buying with a 5% deposit would be viable. For a couple both working full time they probably can get together the £5-£10k deposit needed in just half a year.

Take a two year fix pay some down and refinance on a 80% LTV at a better rate at that point.

WengerIn

GreatApe wrote: »

In most the country buying with a 5% deposit would be viable. For a couple both working full time they probably can get together the £5-£10k deposit needed in just half a year.

Take a two year fix pay some down and refinance on a 80% LTV at a better rate at that point.

At which point the 9x income mortgage becomes a 12x one.

GreatApe

WengerIn wrote: »

At which point the 9x income mortgage becomes a 12x one.

It's unreasonable to expect a single income to buy the average terrace house in the most expensive region in the country. Plenty of joint income or generational wealth or capital wealth to bid in London means the average single person won't get the average terrace.

The most expensive region is London and that is 6.5 x joint income using a 95% mortgage.
Most the other regions are 2-3x joint income using a 95% Mortgage.

WengerIn

GreatApe wrote: »

The most expensive region is London and that is 6.5 x joint income using a 95% mortgage.
Most the other regions are 2-3x joint income using a 95% Mortgage.

No it isn't.

ukcarper

ringo_24601 wrote: »

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

A couple fo that on rightmove.

WengerIn

ukcarper wrote: »

A couple fo that on rightmove.

You can't take 2 flatshare ads and just assume everyone can live at those prices any more than you can take two male median incomes and assume a couple can both earn it and then prove everyone can live in Hackney.

This might be the most innumerate thread yet.

ukcarper

WengerIn wrote: »

You can't take 2 flatshare ads and just assume everyone can live at those prices any more than you can take two male median incomes and assume a couple can both earn it and then prove everyone can live in Hackney.

This might be the most innumerate thread yet.

There are on rightmove so it's a ball park figure. I've already posted median household income for London and it's a lot less than 2x median full time income, as I've said his figures don't stand up to scrutiny. It's just that I don't accept it impossible to save.