In UK how can house prices have almost doubled in the last 10 years when wages have hardly gone up at all?

Question

To compare - how do, or how can people manage to pay their mortgage? Also the rate of inflation in UK is based on "items" "chosen" by the government in their favour each month to make it look like it hasn't gone up much when all utility bills have actually soared. How is this allowed and WHY?

Answer 1

You know I often wonder these things myself, last year we were lucky enough to finishing paying our mortgage and thought great a bit more money each month, no such luck, the house rates, water rates, insurance, gas and electric have gone up and taken the extra we thought we would have from having no mortgage anymore, my hubby has worked at the same place for 12 years and his wage is about £100 more a month that in was 12 years ago yet everything else is going through the roof and we all have to find the money somewhere don't we, the government need a reality check on what people are having to pay out each month, I honestly think they believe that because so many people have credit cards they have enough income to cover them, no way they are having to get credit cards to help pay their bills each month, I just thank my lucky stars that I am not starting out on the mortgage front and buying a house, I think I would be better in a tent in a field somewhere living off the land, it would be cheaper.

Answer 2

I have no idea why it is allowed but I know what you mean!

I had an oil fired heating system put in 8 yrs ago, it cost £88 for 900ltrs of oil, today it costs £325!!!!!!!!!!!!!

My house value has increased by £65000 over 3 years!!!!!!!!!!!!!! but im not rich coz its dead money.

My wages in no way compare to these increases.


I just read that about the average wage being over £500 a week.........that might be a fact but look at it this way......9 ppl earn £200/wk and the 10th person earns £600/wk therefore the average for these 10 ppl is £240/wk.....get it. The average may be £500+ per week but there are very few people getting it! Obviously if you can afford to live by the Thames in the docklands then YOU are lol.

Answer 3

. . . with house prices so much depends on where you live, my house as doubled in the last five years (London Docklands on the river) but I have friends in other parts of the country whose houses certainly have not doubled in the last ten years.
Inflation (items have been standard for decades and not chosen by any government) has been fairly constant for the past ten years at 2 to 2.5%.
Utility bills, no longer under state ownership, have become realistic (this is a capitalist society, you wouldn't been complaining if you held shares in the utility companies) and if you think wages haven't gone up - go speak to your employer.
The national average wage in the UK is currently £26,151 per annum or £502.90 per week (check it out on the internet).
So how is what allowed ?

Answer 4

Interest rates are much lower than 10 years ago, so this makes the cost of money cheaper. In addition, lenders are much more flexible in mortgage lending e.g. lending higher income multiples.

In addition, the market itself has become more flexible. Now, its generally a couples only market; and its heading in the direction of only "certain" types of couple (e.g. where one is earning a high salary).

When prices get too high, then the mortgage market will respond with new products e.g. long term mortgages, interest only. No doubt, when things get really silly, they will find a newer way of lending money.

Also, there is an increase in demand for homes due to immigrants arriving in the UK - especially with the enlargement of the EU.

Answer 5

Not just in the UK. Parts of the US housing prices have gone up more than 200%, along with homeowner's insurance, property taxes, etc.

The average worker in some locations can no longer afford a home. I had to sell mine & move to a part of the country where it has not gotten out of control, YET.

Government is in bed with big business, that is how it happens.

Answer 6

Employers who take economic migrants over British workers must be fined heavily. supply them tax cuts for using British workers and lead them to pay extra in the event that they do no longer. you will quickly see a downturn interior the variety of economic migrants taking jobs!! we would desire to ascertain all Brits have jobs earlier we initiate up inviting others in. i do no longer supply a damn what employers "choose". Its thoroughly insane to circulate away British human beings on the dole and grant jobs to those who're coming from in a foreign country. no longer all British unemployed persons are "long term unemployed and resent working" - thats BS. There are human beings like my father in regulation, a gifted and qualified electrician, a no longer situation-free worker, never been unemployed in his life, has these days been made redundant at almost 50 and no person will hire him as a results of fact its much less stressful and extra low-value to hire a 25 twelve months old Pole for £5.50 an hour. Its utter BS and it makes me offended! My FIL has spent his life working and paying taxes to this united states and now he's being dumped on as a results of fact employers won't pay a great salary for a great British worker! Its crap. uk out of eu!!!

Answer 7

Trying to catch up on inflation is like watching a dog chasing his own tail and the tail is getting shorter.

Answer 8

Over population.

Answer 9

so you pay more interest on your mortgage, more tax to insure it and maintain it and the government then gets a cut when you are dead because the value of your estate is too large.

Answer 10

simply because interest rates are low.

and yes wages have gone up...

try reading the press and perhaps getting a better paid job.

and to correct you they have tripled/quadrupled not doubled .

- depending on where you live.