A Millennial Speaks out

ukcarper

steampowered wrote: »

OK, so here is a graph showing average earnings against average house prices.

As you will see, the average house price was about 3.75x average earnings in 1975. That has increased to more than 8x average earnings today.

If you look at my graph you will see that prices by 1975 and they were over 5x in 1973.

I think that the discrepancy is that nationwide use median earnings and ONS us median earnings.

ukcarper

chucknorris wrote: »

These graphs can be useful, but they don't factor in mortgage rates, which has a significant impact on affordability.

They also don’t take into account that you can borrow more now.

triathlon

ukcarper wrote: »

Interesting graph

And putting a graph of historical interest rates next to it would have been interesting as well

ukcarper

ringo_24601 wrote: »

ukcarper - in some areas of London you see 17x ratios - http://www.cityam.com/264575/london-borough-has-uks-worst-salary-house-price-ratio

It is obviously worth remembering that this ratio isn't a direct look at affordability - since interest rates and mortgage rates are at historic lows at the moment.

They are about 13x in most of Surrey and that’s median earnings for Surrey.

steampowered

triathlon wrote: »

Going on what you are saying and if you are to be believed , even though you are excluding things such as high inflation and 3 day week etc, high interest rates, it falls into the category of being easier like I said and not easy, I personally would have picked the 1980's as the best ever years.

High inflation is already accounted for in the figures - the graph shows real house prices.

Higher interest rates in the 70s/80s is a valid point, but is this more than offset by the increase in the size of deposit required since then.

But it is all subjective and relative, every decade has it's issues and problems

Yes, every decade has its own issues and problems. Just like how every generation has it harder in some ways but easier in others. However, we are able to use facts to identify long term trends. And while millenials do have advantages in some respects, the state of the housing market is a real concern.

triathlon

steampowered wrote: »

High inflation is already accounted for in the figures - the graph shows real house prices.

Higher interest rates in the 70s/80s is a valid point, but is this more than offset by the increase in the size of deposit required since then.


Yes, every decade has its own issues and problems. Just like how every generation has it harder in some ways but easier in others. However, we are able to use facts to identify long term trends. And while millenials do have advantages in some respects, the state of the housing market is a real concern.

But Steam, you have to admit for young people renting has never been better, there is far more choice out there of good quality homes than ever before.

ukcarper

steampowered wrote: »

High inflation is already accounted for in the figures - the graph shows real house prices.

Higher interest rates in the 70s/80s is a valid point, but is this more than offset by the increase in the size of deposit required since then.


Yes, every decade has its own issues and problems. Just like how every generation has it harder in some ways but easier in others. However, we are able to use facts to identify long term trends. And while millenials do have advantages in some respects, the state of the housing market is a real concern.

I agree the state of housing market is a real concern especially around London, although ironically if you could get a mortgage it’s probably easier to pay that it was when rates were higher.

kinger101

Out,_Vile_Jelly wrote: »

When I was 14 I worked two full days at my local stables in exchange for one free ride (I thought this was a great deal at the time). Nothing like being a horsey teenager to teach you the value of your own sweat as it drips onto yet another !!!!!!-filled wheelbarrow.

Two full days! You were definitely taken for a ride.

westernpromise

steampowered wrote: »

face a higher tax burden than your generation did

No they don't. They pay less tax, even including student loan repayments.

I graduated in 1985 and paid more in tax and NI then than I would now on the comparable salary.

westernpromise

chucknorris wrote: »

Really? You think I've posted over 14,000 posts since 2008, just to set up an artificial profile to try and fool you the likes of you, who has only been here since last year, and with only 66 posts. I must have used a tardius otherwise how would I have known so many years prior to do that. I'd be less welcome on HPC than a prolonged fart in a lift.

Triathlon is probably someone off HPC who posts what he imagines a BTL landlord thinks, so that he can later jump up and down and whoop about how he said all those awful things, and nobody on MSE criticised him, so he wins. Or something.