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How do normal people afford to buy houses in the UK?
The average household income is around 25K. The average house price is 230K. From what I understand, mortgage lenders will lend up to 3/4 times your income. So how does this work? Do only rich people own their own homes?
Also, in another thread, a couple people were saying that 20K a year is "quite a lot" for two people to live on. How does this work, given the cost of housing (and everything else)? Is there anywhere in the UK where you can buy a home on that kind of income?
Please enlighten me. No fighting pls (unless it's amusing).
Also, in another thread, a couple people were saying that 20K a year is "quite a lot" for two people to live on. How does this work, given the cost of housing (and everything else)? Is there anywhere in the UK where you can buy a home on that kind of income?
Please enlighten me. No fighting pls (unless it's amusing).
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Reply 2
no hero in her sky
The average household income is around 25K. The average house price is 230K. From what I understand, mortgage lenders will lend up to 3/4 times your income. So how does this work? Do only rich people own their own homes?
Also, in another thread, a couple people were saying that 20K a year is "quite a lot" for two people to live on. How does this work, given the cost of housing (and everything else)? Is there anywhere in the UK where you can buy a home on that kind of income?
Please enlighten me. No fighting pls (unless it's amusing).
Also, in another thread, a couple people were saying that 20K a year is "quite a lot" for two people to live on. How does this work, given the cost of housing (and everything else)? Is there anywhere in the UK where you can buy a home on that kind of income?
Please enlighten me. No fighting pls (unless it's amusing).
20k is fine if you're renting. I don't think many new people are trying to buy a house now, they'd rather rent and wait until they can afford it.
You could buy flats in some places for less than or around 100k :/ It's not a house, but it's not rented, either.
Reply 3
I don't know the details but I guess not as many people buy houses young. The average price of a terraced property in my area is 130K I think, in some areas less than that so a lender would only be going up to 5 times the average income for a property. I think its a trend for younf people to buy flats/apartments as a first foot on the property ladder, I know people who have recently bought flats in thier mid 20's. Once you have property I suppose its easier to work you way up to something bigger.
Reply 4
rinabean
20k is fine if you're renting.
But not if you have a family, really. That's only 296 pounds a week after taxes, and it's generally advised that you shouldn't spend more than ~35% of your income on housing... I don't know if there's anywhere you can rent a 2/3 bedroom house for 103 pounds a week...
Maybe some village in Wales.Do a large proportion of people live in council housing or something?
Reply 5
no hero in her sky
But not if you have a family, really. That's only 296 pounds a week after taxes, and it's generally advised that you shouldn't spend more than ~35% of your income on housing... I don't know if there's anywhere you can rent a 2/3 bedroom house for 103 pounds a week... Maybe some village in Wales.
Do a large proportion of people live in council housing or something?
Maybe some village in Wales.Do a large proportion of people live in council housing or something?
No, I read the post you were talking about, and that was about two people. 20k's fine for two people. A family could get by on that, but yeah, more would be ideal. (Technically the other post was about a family, because it was a mum and daughter [I think], but you know what I mean! :P)
Quite a lot of people are in council houses, at least where I live. I don't know any real figures, though, sorry :/
Edit: Ooh, I kinda have some numbers for you. I've been house-hunting lately and there are 2/3-bed houses for about 550 pounds a month where I've been looking. Granted, there are also many for more, and these aren't the nicest or most spacious houses, but they're ok. This is in decent city suburbs, too. In the less-nice areas there are more for that price and an odd few for less.
Because averages don't work like that.
The average house price may be £230,000 - but that doesn't mean most houses cost £230,000. You can get a perfectly viable and pleasant family home in a nice town up here in Scotland for a huge deal less than that.
In fact, for £230,000 up here, you could buy a considerably better house than the one my sister has just paid £500,000 for in Surrey. Moreover, if you believe the statistics, we have the better quality of life.
The average house price may be £230,000 - but that doesn't mean most houses cost £230,000. You can get a perfectly viable and pleasant family home in a nice town up here in Scotland for a huge deal less than that.
In fact, for £230,000 up here, you could buy a considerably better house than the one my sister has just paid £500,000 for in Surrey. Moreover, if you believe the statistics, we have the better quality of life.
Libertinus Septentrionalis
Because averages don't work like that.
The average house price may be £230,000 - but that doesn't mean most houses cost £230,000. You can get a perfectly viable and pleasant family home in a nice town up here in Scotland for a huge deal less than that.
In fact, for £230,000 up here, you could buy a considerably better house than the one my sister has just paid £500,000 for in Surrey. Moreover, if you believe the statistics, we have the better quality of life.
The average house price may be £230,000 - but that doesn't mean most houses cost £230,000. You can get a perfectly viable and pleasant family home in a nice town up here in Scotland for a huge deal less than that.
In fact, for £230,000 up here, you could buy a considerably better house than the one my sister has just paid £500,000 for in Surrey. Moreover, if you believe the statistics, we have the better quality of life.
Do you really think nobody knows the definition of an average?
Reply 8
What council housing? Depending of your local authority, they have probably sold most of them off!
My sister is "house hunting", as it were, and it's completely ridiculous.
People are paying silly money for property; in my sister's case she's looking for a flat in Glasgow's west end and it's outrageous.
Why would someone want to buy a single bedroom flat for 240k? I don't care if they think it's in a trendy area, to me it makes much more sense to buy into a propetry outside the city for a quarter of that price and just commute!
I was honestly trying to hard to surpress my sniggering laughter when I went on a showing.
My sister is "house hunting", as it were, and it's completely ridiculous.
People are paying silly money for property; in my sister's case she's looking for a flat in Glasgow's west end and it's outrageous.
Why would someone want to buy a single bedroom flat for 240k? I don't care if they think it's in a trendy area, to me it makes much more sense to buy into a propetry outside the city for a quarter of that price and just commute!
I was honestly trying to hard to surpress my sniggering laughter when I went on a showing.
Allthewayhome
What council housing? Depending of your local authority, they have probably sold most of them off!
True enough. But the private rental market is apparently fairly good for the consumer right about now. Still, I think people understandably want to get a mortgage going while they're relatively young.
My sister is "house hunting", as it were, and it's completely ridiculous.
People are paying silly money for property; in my sister's case she's looking for a flat in Glasgow's west end and it's outrageous.
Why would someone want to buy a single bedroom flat for 240k? I don't care if they think it's in a trendy area, to me it makes much more sense to buy into a propetry outside the city for a quarter of that price and just commute!
People are paying silly money for property; in my sister's case she's looking for a flat in Glasgow's west end and it's outrageous.
Why would someone want to buy a single bedroom flat for 240k? I don't care if they think it's in a trendy area, to me it makes much more sense to buy into a propetry outside the city for a quarter of that price and just commute!
Well, when you find yourself commuting to and from the city twice a day just to have both a work and social life, it can become monstrously inconvenient and quite expensive.
I don't think I'd like to live in the middle of nowhere if it wasn't for the fact that my friends, family and acquaintances also live in the middle of nowhere.
Reply 10
Libertinus Septentrionalis
Well, when you find yourself commuting to and from the city twice a day just to have both a work and social life, it can become monstrously inconvenient and quite expensive.
I don't think I'd like to live in the middle of nowhere if it wasn't for the fact that my friends, family and acquaintances also live in the middle of nowhere.
Well, when you find yourself commuting to and from the city twice a day just to have both a work and social life, it can become monstrously inconvenient and quite expensive.
I don't think I'd like to live in the middle of nowhere if it wasn't for the fact that my friends, family and acquaintances also live in the middle of nowhere.
Fair do's.
I just think that these people are incredibly naive regarding the real worth of their property. Granted, the west end won't exactly stop being fashionable anytime soon but comparing what you can get outside the city to what you have inside then I would have feel swindled in some many.
Being a "young professional md" as she styles herself these days, she's still keen on it though, and who I am to say what's to be done with her money, but you don't want to be stuck with a sow's ear when you wanted a silk purse which I fear will happen to many people when the market starts to re-align itself.
Reply 11
They dont mate.
Reply 12
Libertinus Septentrionalis
Because averages don't work like that.
The average house price may be £230,000 - but that doesn't mean most houses cost £230,000. You can get a perfectly viable and pleasant family home in a nice town up here in Scotland for a huge deal less than that.
In fact, for £230,000 up here, you could buy a considerably better house than the one my sister has just paid £500,000 for in Surrey. Moreover, if you believe the statistics, we have the better quality of life.
The average house price may be £230,000 - but that doesn't mean most houses cost £230,000. You can get a perfectly viable and pleasant family home in a nice town up here in Scotland for a huge deal less than that.
In fact, for £230,000 up here, you could buy a considerably better house than the one my sister has just paid £500,000 for in Surrey. Moreover, if you believe the statistics, we have the better quality of life.
It also means that 50% of households make less than 25K. You fail to have a point.
It would also seem reasonable to assume that, in places where property is signficantly cheaper than average, salaries are also less than average.
Well, clearly the OP didn't consider the implications of it.
You've deduced this how?
Allthewayhome
I just think that these people are incredibly naive regarding the real worth of their property. Granted, the west end won't exactly stop being fashionable anytime soon but comparing what you can get outside the city to what you have inside then I would have feel swindled in some many.
Ach, just pick up something in Maryhi... err... North Kelvinside.
no hero in her sky
It also means that 50% of households make less than 25K. You fail to have a point.
It would also seem reasonable to assume that, in places where property is signficantly cheaper than average, salaries are also less than average.
It would also seem reasonable to assume that, in places where property is signficantly cheaper than average, salaries are also less than average.
Where your mistake lies is that you're assuming a proportionate link.
Reply 15
well remember that most people will inherit a house from their parents, so should be able to afford something similar, later on at least.
big problem if you want to a house down south and your family home is up north!
big problem if you want to a house down south and your family home is up north!
Reply 16
Libertinus Septentrionalis
Ach, just pick up something in Maryhi... err... North Kelvinside.
Zing!
What's in a name?
Inherit a house? Most, surely will not!
Reply 17
gooseymcgoose
well remember that most people will inherit a house from their parents
Yeah... when they're 50/60.
Inheritance tax is huge though.
And if you have siblings it might get a bit complicated...
Reply 18
Libertinus Septentrionalis
Where your mistake lies is that you're assuming a proportionate link.
The median earner can't afford the median house, that is what the OP is trying to say, they've accidentally provided stats about the mean earnings/house price, but the distribution isn't going to be so crazy that they're particularly different. They do have a point!
Reply 19
gooseymcgoose
The median earner can't afford the median house, that is what the OP is trying to say, they've accidentally provided stats about the mean earnings/house price, but the distribution isn't going to be so crazy that they're particularly different. They do have a point!
The median house price is 168,000. The median earnings are 24K. In some parts of the country, the median house price is 8 times the median earnings.
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