Meeting affordable housing quotas, as long as it doesn't reduce your profits

[carmanmemoranda]

No idea but whatever the amounts you'd need to factor in historical interest rate trends and adjust accordingly..

Housing for the average buyer has never been affordable without a lot of sacrifices, something younger generations can't seem to do. Perhaps that's why we have people earning £40K being reliant on food banks.

The average house in the UK currently costs around nine-times average earnings, based on data as at 30 November 2022. The last time house prices were this expensive relative to average earnings was in the year 1876, nearly 150 years ago

Was your 1st mortgage around 9 times your earnings?

 

[fillyboy]

Was your 1st mortgage around 9 times your earnings?

From memory about 3 to 4 times higher I think, that was my salary, the wife earned around a third or more less than me.

Mortgage interest rates were around 10% and rising, if you could get a mortgage, the money wasn't there on the supply side. We transferred our £1000 deposit between 3 different building societies based on 'whispers' that they had money available to lend. Eventually, following a 'tip' we paid a 'financial advisor' 200 quid to 'advise' us to transfer the money to Leeds Permanent in Southall and as if by magic obtained an 'endowment mortgage', fortunately, 2 years later when we moved house we were able to ditch the endowment and get a repayment mortgage.

We had a fair few friends who bought houses in the years following us, we knew far more who sat for years on council waiting lists.

 

[Justin Passing]

T'was 2.5 the man's plus once the woman's in our day, up to 3.5 + 1. Unreliable, them women.
We got a higher rate if we got married. SO we got married.
Tina Turner ringing in our ears. WLGTDWI?

 

[fillyboy]

We got a higher rate if we got married. SO we got married.

Married mans tax allowance not to be sniffed at either.

 

[Deleted member 18243]

Inflation for 1. The levels of your earnings and therefore taxation for 2. Versus the anticipated years of pension age

Inflation my arse. It isn't my fault if governments print money as a form of borrowing but with no intention of ever paying it back. If anyone else did that it would be called counterfeiting.

Taxation: at current levels we each pay more than half of what we earn in the various taxes. Over my working lifetime I might have paid the best part of a million pounds in taxes and therefore my state pension pot will be at quite a level I'm certain! I paid this in good faith that the govt would invest it wisely and that it would grow. I might choose to take it in gold when the time comes.

I'm right aren't I? They've kept my money safe haven't they?

 

[Justin Passing]

Married mans tax allowance not to be sniffed at either.

True, ~£1k likely, at the mo.
Same for a Civil Partnership afaik.

Back then it meant being able to borrow several k more, though.

 

[Dork Lard]

Been playing with Rightmove a little more . . . .

2 bed semi 1950's ex council house within 5mls radius of Dork towers @£125000.

2 bed semi 1950's ex council house within 5mls of Reading town centre @£340000

These 2 houses are almost identical, certainly built at the same time to the same design plan. Similar condition & you could certainly move straight in.

So, what makes for that difference in price??? At £125k a working couple could easily obtain that mortgage even if just above min wage. At £340k they'd need to be earning above £40k each . . . . .

 

[denso13]

So, what makes for that difference in price???

Location, location, location...

 

[carmanmemoranda]

So, what makes for that difference in price??? At £125k a working couple could easily obtain that mortgage even if just above min wage. At £340k they'd need to be earning above £40k each . . . . .

And raise a deposit of around £ 30 000.

Which takes a lot of saving especially if already renting. Before you even factor in thoughts of children

 

[Diver Fred]

I'm right aren't I? They've kept my money safe haven't they?

No, sorry, they have been giving it to people of child bearing age to have big families so there will be housing shortages, travel congestion, hospital blockages, and loss of green space.

 

[JohnD]

£125k a working couple could easily obtain that mortgage even if just above min wage.

I wonder if this is an economically depressed area.

What's the basic wage for a Pizza deliveryman on a zero-hours contract?

Zero.