House prices still unaffordable for the average earner despite wage rises – Nationwide

20 comments

1. “Despite wages rising above the rate of inflation in recent months”. Where do these people work haha?

2. It galls me that journalists never put practical questions to politicians – it’s always “But how will you pay for that?!” as a way to shut down government taking action on absolutely anything. But there’s never a moment taken to question politicians about the practical implications for what they’ve done to society – Nobody will ever ask Keir Starmer, when he refuses to address housing over the next five years, “But what’s the plan? What are Britons actually supposed to DO?”

   Because the question can’t be answered, and it reveals just how far British society has been allowed to crumble. And if there’s one thing the media isn’t here to do, it’s to hold politicians to account.

3. Depends on what kind of property you’re trying to buy. If you’re a single person (like most people on Reddit), 1-bed flats can be had for around £100k-£150k – even less in some cases.

   So if you’re on the average wage of around £30,000, you can borrow up to £135k. The issue is, unless you’re living with your parents or are due some kind of inheritance, it can be difficult and time-consuming to save up a decent sized deposit, as most of your wages are sinking into renting costs.

4. A £200 a month wage rise isnt going to undo the fact that house prices should be around £70,000 now.

5. Until net migration is brought way down, prices and rents will continue to rise. The issue is supply is not keeping up with demand and this creates a chronic shortage of housing. You can’t have rapid population growth and also decrease house prices unless you build a completely unrealistic number of new houses every year. It’s much, much easier to rapidly grow your population through immigration than it is to expand infrastructure and public services.

6. Labour have based their success on growing the economy with no real backup plan. With most of our trading partners shifting to protectionist right wing policies , war in Europe and and ever aging population I doubt there will be any meaningful growth. If their is it will be held in the hands of the top 10% anyway.

   But don’t worry we can blame immigrants in a few years and elect a bunch of nutters like everyone else seems to be doing at the moment..

7. Yeah because its house prices that are the issue not wages.

   Something that can only be fixed by increasing supply.

8. Either lift wages up out the pockets of share holders and CEOs. Or drop the house price’s to meet needs. A young couple on less than 50k can’t buy in north west Essex because…it’s 400k plus for a poxy tiny New build.. nearly half a million quid.. so bored of this.

9. I’d imagine you can assign a decent amount of the societal/population issues on the fact that peoples children are growing up to the idea that they probably won’t be able to have their own home or retirement, let alone the mental health impact that has.

10. Who would have thought it.. endless immigration causing housing issues.. its called supply and demand, fewer available houses means higher prices.

11. Historically (1920’s > 2000), house prices have been 4x the median salary, give or take a bit for location.

    Currently they are nearly 10x the median salary.

    Do something about that. I’m a home owner, I’d gladly see my house value plummet if it meant people could actually buy a house. Though I would obviously rather they increase pay, or a combo of both.

12. Why do I keep hearing about rising wages? I don’t seem to have had much of a rise working for the NHS in years.

13. It’ll be decades before inflation wipes out the effect of the multiple rounds of quantitative easing money pumped into asset prices, if ever. And that assumes it won’t be done again.

14. The depressing thing for renters in their 20s and 30s is that if interest rates do go back down the house price rises are going to be absolutely bananas again and its another load of reaching hands slapped away from the bottom rung.

    Its relentless.

15. It’s not the house prices that are the problem it’s the way mortgages are given. I can go to an estate agent and they will say I can afford a rental of £1000pcm, yet a bank or lender will say i cannot afford a mortgage. There are folk out there who have rented for years never missed a payment and can afford the rent, yet again the banks will say they cannot.

16. Nationwide just doubled my fixed rate. It wasn’t even a good rate to begin with. It was that or go to standard variable which apparently to them is 7.99% and hope things “smooth out”.

17. Nationwide could just lower their interest rates. There is no one holding a gun to their heads. Imagine actively saying their products are unaffordable to normal people and actively doing fuck all about it.

18. Minimum wage was created so people could afford decent housing

    It’s not fit for purpose and needs increased. Or measures need to be introduced to allow people to gain housing on minimum wage.

19. wage increase doesn’t solve a demand/supply problem.

    You currently have a situation where there are not enough localized housing. If we only have enough houses for 30% of people, then only 30% of people will get a house. Increasing everyone’s money, doesn’t suddenly increase housing capacity to 40%. It just means the amount of people who can theoretically compete for that 30% housing is now higher, which then means house prices go up.

20. All areas of the UK need a solid 10-15 year plan. Counter to “democracy” what that even means in today’s world, we need a group of these politicians to sit down, plan and agree to a long term plan. Each side can get on their soap box and peddle lies every 4 years as normal, but at least we have a plan that must be stuck too whoever is in charge.

    Only way out of this mess. Nothing can be done in 4 year chunks when things are this bad