Cost of buying average home in England now unaffordable, warns ONS
https://www.theguardian.com/money/2024/dec/09/cost-of-buying-average-home-in-england-now-unaffordable-warns-ons?utm_term=6757f4c62a1e42542009704894c8a952&utm_campaign=BusinessToday&utm_source=esp&utm_medium=Email&CMP=bustoday_email
Posted by WanderwellGMS
35 Comments
What a time to be alive, single, in London, without parental help… Honestly, is this a warning that young people should consider leaving the country?
It’s been unaffordable for about 10 years, if not more. Single people have no hope in hell of ever buying property. Couples can only just about scrape it together. Mortgage criteria is they will lend you 4.5x your salary, yet house prices are almost 12x your salary if you’re on just above minimum wage. If your parents can’t (or won’t) help you, you’re absolutely scuppered.
> In London, where house prices have rocketed most in the past two decades, even many households in the top 10% of local earners – with disposable incomes of at least £89,901 – would not be able to afford an average-priced property in the capital.
> An average home changed hands in London for about £530,000 last year, equivalent to 14.1 years of average income. For those in the top 10%, it would take 5.9 years to buy an average property, while it would take 34.7 years for those in the bottom 10th.
I wonder how much of these figures is skewed by London prices? Housing seems to be much more affordable outside of England according to these statistics.
Yeah I’m living out a car.. in full time work 5 days a week 1 day over time plus long shifts haven’t been on holiday in 20 years! Haven’t traveled anywhere other than work, dentist 3 times a year and local shops… can just about afford to keep my 90s car on the road…
The only way I was able to save up a healthy deposit between myself and my partner was leaving the country lol
Tax the crap out of second, third, fourth… properties.
Exponential taxes on second, third, fourth… properties for private owners AND corporations.
Build more homes
But its almost like the ruling class have a vested interest in property prices staying inflated
Expand your view of “normal” to beyond the Western world and beyond living memory: multi-generational households are the norm for the vast majority of humans ever to live.
We have only lived in our own homes without blood relatives for a very very short period of time.
Water wet. And then they wonder why younger generations are being taken in by political grifters.
Despite saving more than £100,000 and earning £48,000 a year, buying just a crap 2 bedroom house an hour away from London by train is still going to be a financial struggle…
I discovered to afford an average home all I have to do is take out a 40 year mortgage, save up £15,000 and save up £106,000 of my own money. Simple!
Heres another idea can we stop being so London centric and build opportunities that pay well outside of the M25?
Foreign investors buying property help push prices up [https://www.kcl.ac.uk/getting-to-the-bottom-of-high-uk-house-prices1](https://www.kcl.ac.uk/getting-to-the-bottom-of-high-uk-house-prices1)
Money laundering [https://www.theguardian.com/money/2020/dec/21/luxury-london-homes-still-used-to-launder-illicit-funds-says-report](https://www.theguardian.com/money/2020/dec/21/luxury-london-homes-still-used-to-launder-illicit-funds-says-report)
That’s been the whole point all along. ‘Warns’ lol
Well I could’ve told you that for free, even worse in big cities
Most of us have known this for years. You know there is something wrong when 2 adult’s work all the hours available and it’s barely covers you both with rent that I’d relatively cheap compared to market average. Something drastic needs to be done to help people.
And they keep building more and more at exorbitant prices. All these big new build estates are filled with 3 and 4 bedroom houses. A couple that are looking for thier first home don’t need this
Yup had over 8k in savings and I couldn’t even get a flat in Manchester trying for a 5% mortgage the wanted 15% so now I’m renting private for £900 a month thanks!
> now unaffordable
Took them long enough to notice, didn’t it?
If you’re a young professional hoping to raise a family in the UK, leave. Honestly there’s no point in striving for success in a country that doesn’t value you. You’ll have a better quality of life in plenty of other countries around the globe.
The property market is set up to favour dual incomes. Especially those with no kids.
Someone’s buying! Maybe a ban on foreign ownership?
Now unaffordable? Now?
Was the north massively skewing the average before Now or something because it’s been unaffordable for a while within about 100miles of where I live.
Basically this is mainly interest rate driven. No need to get upset about this as we are coming out of a period of extremely low interest rates.
Homeowners tend to not sell quickly if they’re getting less than what they think they should get, developers don’t develop if they can’t turn a profit. This will take time and patience.
The governments have done all they can to push house prices down and London prices have essentially moved below inflation in the last decade.
Give it two years and interest rates will be down and then people can start complaining again about rising prices.
No shit. Did you know we were better off in the 1950s than we are now? 75 years of progress has reduced our affluence substantially. In the ’50s a man could buy a house, a car, support a stay at home wife and two children on one salary. My contention is that the free market and capitalism does not serve the interests of the common people and that’s why I’m a socialist.
Now unaffordable? Now??? Da fuq they been the last 10 years?
NOW?… it’s been bloody unaffordable for years already, I’ve already accepted that I will forever spend most of my pay on some arsehole who wants to sap me of every penny because he was old enough to buy a house for 10k and the only way I’ll ever own one is when my entire family dies off
Warns who? Investment capital? Banks? Multi-million landlords with thousands of properties? Because those are the ones that can do something about it and they don’t give a shit, they’ll just keep jacking up the price, rest of us fuckers who can’t put £200 away for a downpayment know houses have been unaffordable for the best part of the last 30 years
Guess we are getting to the point that the market is pricing itself out of business
Isn’t this average being dragged up by London? Who have like a double average salary to the rest of the UK
Thats quite funny, now? I’ve been in this country over a decade and since the very beginning was an issue, but I would say the biggest issue this country have is the scam of share ownership, and leashold, if you remove that would be way much better and also not allowing people/companies who does not live in Uk buy tons of houses and play with the price.
P.S. I would like to buy a house, but I would not mind if tomorrow a law only allow british citenzenships buy a house and I can only rent, at least I know my money will stay in the country and it wont go to an investment fund or some guy living abroad that never was here
Stop allowing people to rent out more than one property. More houses in the current situation means more landlords stopping a whole generation from joining the property ladder. A company/individual can only receive rental income from one property at a time. Houses will only be valuable as an asset and will pass to people actually wanting to live in them.
We dont need ‘average homes’ we need homes that are tailored to different needs. In part this is not just a supply issue but an expectations one as well.
Where I live there is a constant moan about lack of affordable homes for ‘young people’ and how they are being taken up by airbnb’s etc.
What my wife and I have found is that these same young people don’t want the affordable 1960’s, 70’s, 80’s homes, or one to one and a half bedroom cottages, they want new builds.
Those who complain about Airbnb’s had the same opportunity to buy the homes in the state many of them were in when purchased. What they want is to buy the renovated homes at pre-renovation prices. And most of these Airbnb’s locally are owned and run by locals.
Obviously, there will be differences across the country and you will have different experiences local to you.
The fact is that with 16 year olds potentially having the ability to leave home and go on the council housing list and the vast majority of homeless being under 25, mostly males, we need greater numbers of housing uniits catering for this demographic. Again, Im not suggesting this is the only demograpic needing catering for, just pointing out an example of need and requirements.
Even if all the ageing population were to suddenly place all their homes on the market to afford winter fuel allowance etc. are there enough suitable smaller properties for them? They would be competing with singles and couples buying low to lower mid range homes thus pushing the prices up there.
Empty homes – There’s always a big deal made about empty homes. A couple of thoughts based on my experience. When my mother dies her home sat empty for none months as I couldnt sell it until I was granted probate. By the time it sold over a year had passed. We’ve just bought a very affordable home that as per my first comments no-one locally wanted. it had sat on the market for over 6 months. By the time the sale went through and we were able to move in, it remained empty and 10 months had elapsed. Our previous home – very competitively priced mid range in size etc excellent for downsizing to or upscaling to, has sat on the market for six months.
The other issue is where do you build any new housing stock? How many of us have seen 300 homes dropped into a new estate with no infrastructure or without upgrading local infrastructure and corresponding jobs and amenities. Homes need to be built where they are needed with the correct infrastructure – yes lets think true 15 minute cities – jobs, not just part-time in McDs or S.bucks or a hotel, career worthy jobs, entertainment, social life, transport, shops, medical facilities, social care etc etc.
If you talk to young people workig in shops in Aberdeen, Inverness, Wick, they all have the same message – they think where they live is crap and want to move somewhere more exciting with better opportunities. Building more affordable homes in these places may not have the impact intended.
Final thought. There’s a skills shortage. And should the Ukrainian war finish in Ukraine’s favour, then US and European money will be available for rebuilding the country – leading to a European wide shortage of builders and building materials as it will get sucked into the new money pit.
The real problem is we lock this in.
If house prices spontaneously drop all current/recent owners will be ‘punished’ so will want to protect their assets.
I purchased peak COVID like a fool. When first time buyers got a discount so naturally the prices just increased. Timed 2min viewing and lines to get in, all that shit.
I want cheaper housing but would be telling lies if I said I wouldn’t be bitter about it personally. I’ll have to suck eggs, will give me something to moan about in the care home I won’t be able to afford I guess?
Same situation as Americans wiping student loan debt.
I paid 280, my neighbours paid 320 if it dropped to what it’s really worth like 200 we are indirectly fucked.
🥲
A decent home around my area is £250K ish. I’m on £21.5K a year with £25K saved. I’m gonna have to get split with another member of my family who is already set and then buy them out after my mortgage is paid. That’s gonna have to be my plan.