oh dear (tm): Generation rent: the housing ladder starts to collapse for the under-40

[sal]

Well in 1999 I was a permie on £50K, so that means the average house (about £100K) was 2x my income.

In 2013, it looks like the average was £160K, so still about 2x my income for that year.

What's the problem? If you discount London and the SE, there's no problem affording a modest house if you have an education and some skills.

The problem with your logic is that you are comparing nation average house price to London and SE top end wages. No one is saying that people on 80k salaries are unable to afford a home even in London and SE.

Graphs are meaningless you don't need ONS to know that the property prices and rents are rising MUCH faster that wages if the trend continues in not so distant future people will simply not be able to afford a home no matter how hard they work. We are slowly going back to medieval times when the serfs don't have a choice but to rent every aspect of their lives from the Lord of the land.

And the sad part is the Government is doing nothing to stop the trend, on the contrary they are pouring fuel into the fire with HTB and tax breaks for BTL.

[PurpleGorilla]

Well in 1999 I was a permie on £50K, so that means the average house (about £100K) was 2x my income.

In 2013, it looks like the average was £160K, so still about 2x my income for that year.

What's the problem? If you discount London and the SE, there's no problem affording a modest house if you have an education and some skills.

Maybe someone earning £80k in your example wants more than a modest home. Given that wage is what, top 1% of incomes.

Let's say a 4.5x income mortgage on £80k. That's £280k. So let's look at a £310k property with a 10% deposit and £280k mortgage...

Loddon Road
http://www.rightmove.co.uk/property-...-53145428.html

Melbourne Close, St. Albans, Hertfordshire, AL3
http://www.rightmove.co.uk/property-...-53616425.html

Doods Road, Reigate, Surrey, RH2
http://www.rightmove.co.uk/property-...-49364014.html


Now, yes you can actually buy something. But honestly, hand on heart, do you think a £80k salary should only be able to buy you something like this. £80k is a big salary. IMHO £80k should get you something more like this;

Queen Victoria Court, Farnborough, Hampshire
http://www.rightmove.co.uk/property-...-35425917.html

Tithe Barn Close, St. Albans, Hertfordshire
http://www.rightmove.co.uk/property-...-52155830.html

4 bedroom Detached House in Reigate
http://www.rightmove.co.uk/property-...-50759159.html

[vetran]

Maybe someone earning £80k in your example wants more than a modest home. Given that wage is what, top 1% of incomes.

Let's say a 4.5x income mortgage on £80k. That's £280k. So let's look at a £310k property with a 10% deposit and £280k mortgage...

Loddon Road
3 bedroom semi-detached house for sale in Loddon Road, GU14

Melbourne Close, St. Albans, Hertfordshire, AL3
2 bedroom semi-detached house for sale in Melbourne Close, St. Albans, Hertfordshire, AL3, AL3

Doods Road, Reigate, Surrey, RH2
2 bedroom apartment for sale in Doods Road, Reigate, Surrey, RH2, RH2


Now, yes you can actually buy something. But honestly, hand on heart, do you think a £80k salary should only be able to buy you something like this. £80k is a big salary. IMHO £80k should get you something more like this;

Queen Victoria Court, Farnborough, Hampshire
5 bedroom retirement property for sale in Queen Victoria Court, Farnborough, Hampshire, GU14

Tithe Barn Close, St. Albans, Hertfordshire
4 bedroom detached house for sale in Tithe Barn Close, St. Albans, Hertfordshire, AL1

4 bedroom Detached House in Reigate
4 bedroom house for sale in 4 bedroom Detached House in Reigate, RH2

move to Slough

sorted.

[PurpleGorilla]

move to Slough

sorted.

You think you get more for your money?

SLOUGH
http://www.rightmove.co.uk/property-...-52883321.html

[vetran]

You think you get more for your money?

SLOUGH
3 bedroom semi-detached house for sale in SLOUGH, SL1

You are a contractor for goodness sake


Property for sale in SL4 - Houses for sale in SL4

[sal]

You are a contractor for goodness sake


Property for sale in SL4 - Houses for sale in SL4

He is only a contractor, not a BTL Landlord, so saddly he can't afford 1Mil home

[AtW]

Let's say a 4.5x income mortgage on £80k. That's £280k. So let's look at a £310k property with a 10% deposit and £280k mortgage...

Just WTF people and bank use multiples of GROSS salary when mortgage payments are not tax deductible??? Given that income tax also higher it's totally stupid to factor in gross.

[PurpleGorilla]

He is only a contractor, not a BTL Landlord, so saddly he can't afford 1Mil home

Correct, my personal budget goes up to £550k.

[AtW]

Japan house prices. (Small island, over crowded, low interest rates):

They've got big earthquakes too

[barrydidit]

The thing I like about receiving rent is there isn't a special 7.5% tax on it.

So i'm gonna get some more.

Like so -> 2 bedroom terraced house for sale in Manchester Road, Huddersfield, West Yorkshire, HD1

~£425 a month rent is 10.2% return, and saves £380 tax on the equivalent divvies. What's not to like?