House prices increasing nine times faster than first time buyer wages?

Zero_Sum

HornetSaver wrote: »

The fact is that they have risen, sharply above earnings of those starting families, over decades. Data from a few weeks or a couple of years might indicate the start of something different, but doesn't alter that simple fact.

Thats not strictly true as its skewed by London & SE.

In the north (apart from a 3-4 year blip in the mid 2000's) house price to wages have seen very little variation over the past 30 years. Houses in my area are cheaper in real terms than 8 or 9 years ago despite interest rates being at all time lows.

andrewf75

GreatApe wrote: »

Ownership rates for uk born citizens are near historic highs so the talk of unaffordability is simply false.
The only time they were marginally higher was a few years before the crash when the banks were willing to lend to the black market workers via self cert mortgages.

But thats more because of a widening gap between rich and poor I would say. Most younger people who buy do so with help from their parents who have of course benefitted from the house price boom themselves. For people who don't have the benefit of well off parents and better than average paid jobs, houses are more unaffordable than ever.