Average house price hits record high of £298,083
https://www.bbc.co.uk/news/articles/cevg9mm2rzgo
Posted by Aggressive_Plates
Average house price hits record high of £298,083
https://www.bbc.co.uk/news/articles/cevg9mm2rzgo
Posted by Aggressive_Plates
37 Comments
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Feels like the younger generation are never going to catch a break at this point
Not surprising when we spent the last 20 years, especially 5 years, siphoning money to the wealthy. What are they to do with their money but buy assets?
If we didn’t have millions of extra people, you could afford a house.
Really need affordable entry level housing to be made available. All I see is estates full of 3/4 legally minimum sized bedroom townhouses for £400k
> While the ONS originally estimated the net migration figures for the year ending June 2023 at 740,000, this has now been revised to a record-high 906,000.
Just build more houses bro.
I feel so sorry for people who need a home, it must be ready hard.
Back in the late 70s not many people even considered buying a home. That’s because rents were reasonable and well less than a mortgage. I remember I was the first in my family to buy a house, the family didn’t understand mortgages and so they all thought I was posh. In reality I bought the cheapest house in Birmingham I could find that was liveable for a grand total of £12.750 and we overpaid because we were young and did not haggle.
The median house price figure would be far more informative.
Remember, the population increasing by around a million due to immigration has nothing to do with this guys.
I don’t really know why people are surprised by this. The median salary is 35k in the UK. Let’s say that a normal couple both earn 35k which is certainly not at all out of the realms of possibility (even though Reddit would like to pretend otherwise). That is 70k combined salary per annum. Banks are offering between 4.5-5x salary for mortgages. 70k x 5 is 350k, that is before even a deposit is taken into account. If people think house prices are insanely overpriced, they really aren’t when you compare median salaries to mortgage offers.
Not particularly surprising considering median income has reached £35k, so for a dual income household this is affordable. That’s if you can afford the deposit. Decent deposits start at 20%. Not many people are sitting on £60k savings even on median incomes. Especially with how expensive rent is.
Unless we make saving much easier or make it easier to buy a house without a deposit, home ownership will skew towards the haves rathet than the have nots.
Force banks to consider what people pay in rent (last 5 years for example) to determine affordability on 100% LTVs. Create support and incentives for first time buyers and more critically first generation buyers. We need to make it possible for people who don’t own and don’t stand to inherit to be able to buy their first home. And ofcourse on top of all that, build more homes.
If you’re on minimum wage and single that’s ~£24k per year so if we’re still doing four times annual salary for a mortgage that’s £93k max.
The houses near me that are £93k are either shitholes, or in shitholes, or both. And I don’t live in a wealthy area.
Even if you buy an okay house in a shithole, you will have to live near cunts and deal with vandalism and anti social behaviour. If you buy a shithole, you have to spend a significant amount on top to do it up. You can’t just buy an okay house and have a decent standard of living.
The okay houses in okay areas are now £150k+ so you either need to pair up with someone, hope for a good mortgage deal, try not being on minimum wage, or scrimp as much of a deposit as you can to give you a boost up to moderately better standards.
People keep pointing their fingers at increased numbers of people due to immigration, whereas that’s only part of the story.
On my street alone, I’ve seen a private house flipper buy 4 separate properties all around the £200k price mark, and then transform them “Essex style” (do a really shoddy job with black window frames, make the loft a 4th bedroom etc inclusive of crushed velvet) and then double the asking price and only repair issues they find.
This is the real issue here, these are supposed to be family homes in a nice area for those just getting onto the market.
Over the next 4 years the UK average house price is expected to hit £350K…….How the fuck are we supposed to keep up with £12.5K being added to the average house price every single year over the next 4 years !
There’s a metaphorical bomb waiting to go off with housing, and it’s going to be brutal. I would not like the idea of retiring without owning your own home over the coming years….. and the less people that make it to retirement age without owning their own home is going to put even more strain on government spending.
Theres zero chance that the government can make any meaningful impact on home building to offset these price rises.
And how are wages supposed to keep up with rising house prices?
That’s a funny way to spell “Record numbers of foreign investment funds own record amounts of UK domestic property”
Average house price is a stupid metric tbh. When you have 1 bed terraces, in Sunderland and a 20 bed mansion in knightsbridge…its meaningless.
One of the houses I viewed a few years ago sold for 180k and has recently sold again for 280k. But the truly crazy part is that as far as I can see there were no major changes to it. The market is fucked.
Average house price is about £300k, average salary is about £35k.
You can’t get a mortgage for a £300k house unless you have about £70k household income.
So the only people (theoretically) that can buy homes are couples which are both full-time employees (buying a home which has a value relative to their combined earnings).
Perhaps a development of compact apartments can help singletons onto the property ladder.
Most building development sites I see are 3-4 bed homes and retirement spaces.
Plenty of young single men and women would happily jump at a compact apartment or tiny home, if it gave them freedom, independence and a step onto the property ladder.
That’s a record low where I live, and I ain’t even in London…
*Average indexed and modelled asking prices hits record high. Real average purchases are – at best – not rising that much, or are falling precipitously depending on where you are.
Worth remembering that whilst the out-of-control population increase is obviously affecting the supply and demand side of things, the economic mismanagement of this country also means that the pound is substantially less valuable than it was not long ago. As both of these factors will remain present at least for the rest of this term of government, prices will only get higher, and don’t expect wages to follow suit.
In 1964 my Dad bought our 3 bed semi for about £2600. He was an electrical/electronic design engineer on a good salary admittedly but reckoned he could buy it with about 12-18 months salary. So by that standard a similar professional should be paid about £250k today. Hmm… Not many of those jobs about.
The average house price is not a helpful metric to look at for a conversation about first time buyers. The average house price is something that people aspire towards as a long term goal. Few people come through adulthood, start their career and immediately opt for a median property. You start at the lower end of the market. The key metric to look at is the average price of properties bought by first time buyers. Whatever figure that is, it’s going to be below the value of the average house price.
Why does all this “RECORD HIGH HOUSE PRICES” always end up being written by the people who are incentivised to keep prices high? Rightmove, Halifax, Nationwide, Lloyds Banking Group ETC.
Lets start by using some impartial reports and dig into the detail eh?
average house in canada is 1.2 million. Considering exchange UK average is 512k cdn. I would love that.
The elite plan for all the young generation to be housed in “coffin rooms” at some stage with built to rent buildings. Nothing is sweeter than having a reliable income stream.
Google coffin rooms if you’d like more detail on this. This is where our dystopian society is headed!
Amazes me how some people don’t understand that “double the people” = “double the taxes”.
The issue is that population doubles, and taxation doubles, the government keeps cutting public spending, wasting billions on mates contracts, wars and so on.
I know someone who had a comestic imports business that was won the brink of bankruptcy, during covid they got some contracts to import hand sanitizer and now their car park is full of exotic cars, almost every senior staff of that building has a supercar.
The amount of government spending going badly spent both on billions of pounds going to mates on shit like the PPE scandal, as well as millions of people claiming all sorts of benefits by following tiktok guides on how to claim every benefit possible like faking to be suicidal, fake leg/hip pains etc.
We don’t need heavier taxation, we need scrutiny on the spending.
Ultimately it’s inflation too. I admit I don’t fully understand how everything else ties into this, but all I see are higher prices, higher taxes, lower wage increases, and fucking ridiculous interest rates. It seems as though we have a system where absolutely everyone is free to take advantage of the British public. Who we are giving money away to, or overspending on private contracts to, and all kinds of benefit fraud, are probably the source of our problems. But those more corporate beneficiaries slip a cheque to which ever cookie cutter party that’s in power, and we never get it fixed, so maybe it’s government corruption we need to stamp out. I’m stumped 🤔
Ultimately it’s inflation too. I admit I don’t fully understand how everything else ties into this, but all I see are higher prices, higher taxes, lower wage increases, and fucking ridiculous interest rates. It seems as though we have a system where absolutely everyone is free to take advantage of the British public. Who we are giving money away to, or overspending on private contracts to, and all kinds of benefit fraud, are probably the source of our problems. But those more corporate beneficiaries slip a cheque to which ever cookie cutter party that’s in power, and we never get it fixed, so maybe it’s government corruption we need to stamp out. I’m stumped 🤔
What’s wild about this is that the housing stock isn’t even *good*. Newer builds are already showing significant issues, while the older housing stock is poorly insulated, cramped, and obviously overpriced.
Combine that with the absolutely abysmal wages paid in the UK, even in highly skilled fields like tech and medicine, and it’s no surprise that many of those skilled workers are saying “fuck this” and moving elsewhere.
Shit wages, underwhelming (putting it politely) culture, awful public services, poor housing quality with laughable legal protection or regulation for renters, terrible social mobility, rapidly declining quality of education..the list really is never ending at this point.
Why anyone continues to bother with this shithole country if they have a choice is beyond me.
Well, guess I’m stuck living with my mother till I retire now 🙂
Stop calling it a crisis, this was engineered this way. Ask a homeowner in your life; do they want their house price to fall?
One very significant, though often less talked about issue, which is contributing to the surge property value, is the proliferation of HMOs.
I live in Liverpool right, and we have 3 universities.
If I go on Rightmove and enter the post code ‘L15’, and search for ‘To Let’, you might for arguments sake get around 350 results.
Now, if you go to ‘Filter’ and select ‘Do not include student properties’, the result you get is:
36.
So out of 350 available properties to let, only 35 are for working people.
It absolutely boils my piss that councils willingly and freely approve HMO applications, because it massively reduces the housing stock for working people.
Yes, house prices are generally rising due to increase in demand, but let’s not forget that HMO licences are a HUGE contributing factor why we have a supply issue too.
Where I live the only houses under 200k are pretty much mini houses. Houses where you cannot fit normal furniture and appliances. Basically houses from the 80s/90s that should have never been built!
Flats can be had for £165k to £225k but service charges is often high, not exactly the Royal Cresent so pretty idiotic that the service charge is half the cost (5k for the crescent Vs 2.5k for a flat in a fairly naff town).
An ok house is £225 to £275. Many need allot of work.
The biggest problem is the new builds. All 3/4 beds 350k to 500k. Poor quality housing aimed at those moving out of city/traveling in. It makes me sick, I blame the local authority and government. There is limited land near me and it’s all wasted on people who do not need it.
Ah, the older generation looks at the EA windows.
The younger generation looks at the Bitcoin price.
10 new buildings next to me, all listed for 600,000 each – moved the council lot in first, all foreign with kids – same set of people paying 600,000 for a 2 bed flat. Honestly a mugs game to try and earn a decent living.
Feel sorry for anyone trying to get on this ladder – working families completely ignored as per.