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Dewi9
20th August 2018, 11:36 PM
Many years ago I started on my first Open University course. It was M100. (Maths)


One of the set books needed to follow the coursework was entitled 'How to Lie with Statistics' and was a rundown on how sets of figures could lead to several different conclusions.


According to the Annual Survey of Hours and Earnings (ASHE), average gross annual earnings for full-time employees was £27,600 in 2015, latest figure I could find for the UK, so are probably around £28,000 currently.


Yet the Industry group UK Finance, who lend money to borrowers wishing to buy property gave a different figure. They say the average loan in June was £145,368 giving repayments of £605 per month, which equated to 17.2% of borrowers income. This calculates to an annual salary of £42,209, so which is correct ? ( from 'i' newspaper, business section )


One can only assume that the majority of borrowers have a joint income.


My only other question would be - How 'skewed' is the figure for 'Average Annual Earnings' given the high number of employees within industry who are on six and seven figure salaries ?


Living here in the wilds of rural Lincolnshire I would be surprised if the County Average Annual Wage was much over £17,000.


David

Harold Gough
21st August 2018, 07:01 AM
Yet the Industry group UK Finance, who lend money to borrowers wishing to buy property gave a different figure.

As that stands, I ask who are the "borrowers"? Are they private individuals buying a home or are they large or small businesses?

Harold

Walti
21st August 2018, 07:06 AM
As that stands, I ask who are the "borrowers"? Are they private individuals buying a home or are they large or small businesses?

Harold

They’re a fictional family of very small people that live under your floor! ;)

Or they are the people that can afford to take out a mortgage which by definition takes out those of below average income as they wouldn’t be able to afford the repayments!

Wally
21st August 2018, 08:26 AM
Lies, damn lies and statistics... some things never change but get coined under other names such as fake news or alternative facts. More recently... truth isn't truth?

TimP
21st August 2018, 08:40 AM
Would not the vast majority of borrowers (for a mortgage) be a couple? Seems the best, or only way to get on the self funded housing ladder right now, and probably has been for several decades.

Note: couples are available in a variety of options.

Wally
21st August 2018, 04:07 PM
I wonder how many would jump at the chanceof, if offered, a property for £1? Obviously, there is a caveat, which for one council was that the buyer would carry out the renovation within a set time period. The said council also offered financial assistance to help kick-start the individual project(s).

The program episode I watched had more takers than available properties. The difference made to the area(s) in question was quite soverwhelming.

To my mind, this approach is way better than paying extortionate rental fees and help those with limited funds get on to the property market ladder.

If more councils were to take up such scemes, the difference made to certain 'statistics' might just make reading them worth-while.

TimP
22nd August 2018, 11:16 AM
What happens when the renovation is complete? Can the purchaser simply sell it and pocket the cash? Seems like a good get rich scheme for any half capable builder. Bit like all this so called affordable housing which is surely only affordable when first bought, after that the buyer makes a profit selling it at the market rate?
And don’t get me started on the Help to Buy scheme where you could be helped to buy something up to £600K in value!!!! Grrrrrr!!!!!!

Wally
22nd August 2018, 12:38 PM
The short answer to your question is NO. There was a time limit placed. If memory serves, it was in the region of 4 -5 years residence before the house could be sold on.

The following might shed more light on the subject. I haven't been keeping up with events but theses updates etc., show that it can, for some, make a real difference. The pilot for Homes for a Pound launched in 2013 in the Granby Four Streets area of Liverpool, closely followed by a second phase in Anfield and Picton.

Homes for a Pound -->https://liverpool.gov.uk/housing/homes-for-a-pound/

The latest phase, which is the focus of a Channel 4 documentary (http://www.channel4.com/programmes/the-1-houses-britains-cheapest-street) aired in February 2018, sees empty terraced homes off Smithdown Road (http://www.liverpoolexpress.co.uk/mayor-wowed-revamped-1-home/) come back to life.

The properties, which are two and three bedroom houses, are located in Garrick Street, Bird Street, Richardson Street and Webster Road.

Update: Saturday 3 Feb 2018
--> https://metro.co.uk/2018/02/03/amazing-transformation-liverpool-streets-houses-cost-just-1-7283928/