State Pension Affordability

[sadkingbilly]

in 1981 we bought a three bed semi in north london, for 36k with cash from 15 months in KSA.
Then discovered MIRAS and got a 25k mortgage on it

[WTFH]

in 1981 we bought a three bed semi in north london, for 36k with cash from 15 months in KSA.
Then discovered MIRAS and got a 25k mortgage on it

Oh yes, MIRAS, that went in the 1990s. All those "lazy" people who can't benefit from it.

[GregRickshaw]

in 1981 we bought a three bed semi in north london, for 36k with cash from 15 months in KSA.
Then discovered MIRAS and got a 25k mortgage on it

I remember I 'set' a lot of adverts at the time for the Islington Gazette and gazing with wonder and open eyes at how much property was in London! £50k used to get us all excited when average house prices in my area at the time were probably about £18k for a property like yours.

[DoctorStrangelove]

I remember a chap around here buying a house for £10k cash, late 70s.

Ah. The 1970s when half of industry was on strike, and the other half was playing cards whilst hiding under the factory track.

We used to build things here. Admittedly they were mostly crap*. But The Great She Elephant cured all that by shutting it all down as quickly as possible. Then getting herself reelected by winning a war. You can fool some of the people all of the time etc.


*them were the days:

production problems at British Leyland. This was highlighted in August 1975 when Drive, the magazine of the British Automobile Association awarded a trophy to a Rover 3500 as the worst new car in England.

It reported that a Rover 3500 purchased in 1974 had covered 6,000 miles (9,700 kilometres) during its first six months, during which period it had consumed three engines, two gearboxes, two clutch housings and needed a complete new set of electrical cables.

The car had spent 114 of its first 165 days in a workshop.

From the date that was a P6 not the even worse SD1.

[woody1]

Property certainly seems a lot more unaffordable now than it was back in the 80s and 90s.

In 86 we bought a new 2-bed semi in Stockport for (1) £20k, on a 95% mortgage, based on one university research assistant £7k salary.
The following year we bought a 2-bed semi in York for (2) £30k, on a 95% mortgage, based on a university research £10k salary.
In 92 we bought a 3-bed detached in Wantage (Oxfordshire) for (3) £85k, on a 90% mortgage, with two modest research and admin salaries (£14k + £16k).

Couldn't see that being anywhere near attainable now.

Out of curiosity, I looked up recent sold prices of similar houses on the same streets.

(1) £230k
(2) £270k
(3) £450k

I doubt salaries of the jobs we had have gone up by the same multiples.

[malvolio]

I remember a chap around here buying a house for £10k cash, late 70s.

Ah. The 1970s when half of industry was on strike, and the other half was playing cards whilst hiding under the factory track.

We used to build things here. Admittedly they were mostly crap*. But The Great She Elephant cured all that by shutting it all down as quickly as possible. Then getting herself reelected by winning a war. You can fool some of the people all of the time etc.


*them were the days:


From the date that was a P6 not the even worse SD1.

British heavy industry in the 70s died because it couldn't compete with other countries' standards. Compare a Morris Marina to the equivalent Toyota for example, or a ship built for around a2/3rds the cost of a Clyde side yard. Not everything you read about Thatcher is even vaguely accurate; she was addressing the union's powers who were holding back the country. Sadly when that did happen it was rather too late.

Agreed privatisation did a lot of damage, but you have to remeber that there wren't a lot of alternatives at the time.

Still, hang around a while longer, once Sir Keir is replaced by Rayner you will be able to experience the 70s all over again.

[Snooky]

In 1980 the UK average hose price was £18k.

Tell me about it. I had to use watering cans for years until hoses came down to a more reasonable cost.

[gables]

I imagine a lot of us have stories like this.

When I first started working in London, after a couple of years of renting, in 1992 we bought a 2 bed flat in West Ealing for £77k, I think our joint salaries was around 28k. I seem to recollect the max mortgage was 2.5 * joint and required a 10% deposit; so 7k down and 70k mortgage with interest rate approx 12% - money felt tight.

According to Rightmove the exact same flat today is valued 475k

[DoctorStrangelove]

Still, hang around a while longer, once Sir Keir is replaced by Rayner you will be able to experience the 70s all over again.

I thought we were already, except it's the medics who are on strike all the time instead of the miners. .

What we need now is "In place of Strife" and the Prices & Incomes Board back again. .

Ah, them were the days.