This is a very important point. When I contrast my family in Switzerland who have rented the same places for 30+ years at an affordable level (in a very unaffordable buying market) to the folk working for me in London who rent, it is world's apart in terms of protection from eviction, price rises etc.
Housing Spend
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This is a very important point. When I contrast my family in Switzerland who have rented the same places for 30+ years at an affordable level (in a very unaffordable buying market) to the folk working for me in London who rent, it is world's apart in terms of protection from eviction, price rises etc.
Man of Honour
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Just moved back in with my mum but was spending about 45% on housing in zone 3/4.
It's worth it when you're young for the freedom but it'd be hard to stomach if i was older (currently 22)
It's worth it when you're young for the freedom but it'd be hard to stomach if i was older (currently 22)
Under the neo liberal system it will continue happening just allowing a tiny % to own the majority whilst the rest of us suffer on.
Feel sorry for my kids as it is this rate property for them would simply be impossible.
Mortgage is 26% of our joint income, so 13% personal income.
We pay 38% (each) into a joint account which covers mortgage, utilities, council tax, phone/TV/Broadband and saving.
We spend about 18% (each) on the supermarket shop and our cars each month, then shove an extra 20% into other savings accounts.
That leaves about 20% 'spare' each month, although I'm about to start paying most of that into a pension, so the other savings will have to be reduced.
I'm 31, wife is 35.
We pay 38% (each) into a joint account which covers mortgage, utilities, council tax, phone/TV/Broadband and saving.
We spend about 18% (each) on the supermarket shop and our cars each month, then shove an extra 20% into other savings accounts.
That leaves about 20% 'spare' each month, although I'm about to start paying most of that into a pension, so the other savings will have to be reduced.
I'm 31, wife is 35.
Our first mortgage was for £13000 (1982) and the rates were in the order of 5-8% (not fixable in those days) endowment so we paid the endowment costs say £25 per month and between £650 and £1040 per annum in interest on the loan. I earned £3500 per annum at the start of the term.
So £975 was 28% and £1340 was 38%. Allowing for wife part time earnings say between 20% and 30%.
Go figure the Grauniad.
So £975 was 28% and £1340 was 38%. Allowing for wife part time earnings say between 20% and 30%.
Go figure the Grauniad.
You bought a house whilst earning not much more than half the national average wage. "Go figure".
Soldato
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Looks like it is currently about 20% of my net income for the mortgage ... I did think it was higher
About 25% for me, which is exceptionally good for a minimum wage flunkey because I bought my house ~20 years ago. If I was doing it today, even renting a small place in a mediocre area of a very cheap town would be significantly more than that, probably 35-40%. Buying anything would have course be impossible. Most people in my position today can't live without some form of outside help.
Also, of course, any %age of a lower income is effectively more than the the same %age of a higher income because it leaves less for other essentials. So a %age gives some useful information but is far from being the whole story. 50% from an income of £10000 a month is barely relevant. 50% from an income of £2000 a month is manageable. 50% from an income of £1000 a month is impossible.
Also, of course, any %age of a lower income is effectively more than the the same %age of a higher income because it leaves less for other essentials. So a %age gives some useful information but is far from being the whole story. 50% from an income of £10000 a month is barely relevant. 50% from an income of £2000 a month is manageable. 50% from an income of £1000 a month is impossible.
I scanned the article for national average wage, did not find it. It just compared generations. I suppose that you are suggesting that it was easy to buy in my position then, but you can still buy a comparable (old two bed terrace in a northern town) for 4 x income if not too fussy about area or condition, which I was not.
I am only suggesting that my first housing loan was not too dissimilar to housing cost re income today (rent/mortgage) in percentage terms.
But that suggest is wrong. There is nothing around here which someone on half the national wage could buy. Not even a run down 1 bed flat in the worst estate is that cheap.
So you being able to afford that is a clear indication of how much cheaper houses were back then.
25% of my monthly income and 12% of our combined if we pay minimum. Being able to survive on one of our incomes was really important to us so we only took 50% of the mortgage we were offered by the bank and bought a smaller house. Our wages have gone up since we took it out 4 years ago, interest rates have dropped as our LTV has improved so we are really comfortable at the moment even overpaying by about 20% of the minimum monthly payment. We do live in the north so it's cheap as chips to buy a fairly standard 3 bed semi.
We did the same. Made sure we could hold the place comfortably on the lowest income.