And here, especially for you, some reality:

Using this, we can see some prices today.

2011 average prices

Lancaster – terrace £120,420. In 1986, a two up, two down was around £14,500 (I know, because that’s what I was buying on a wage of £105 gross per week – £5,460 per annum. I lost it when made redundant and took a job at £60 gross per week – £3,120).

Hackney – £304,638. There are one-bed flats down our road right now that, when built around four years ago, we put on the market for £250,000. Prices in our housing association block were £60K around 17 years ago. Selling now (if you've bought the rest) for around the price quoted in that survey – one sold for £365,000 around three years ago. These are 'two bed' – ie, one is a box room with just about room for a single bed, but nothing more. Being what used to be regarded as sensible, you need an annual income (let's allow for it to be a combined income) of over £105K.

The mean income in London is £29,947.

The mean income in the north west is £20,483. (Data here)



Smith Institute: “The affordability of owner-occupation has deteriorated over the long term. Average house price increases outstripped average earnings from 1970 to 2000 in all areas of the UK except Scotland. Since 1980 the incomes of higher earners have risen faster than those of others, leading to greater pressure on those at the margins of home ownership. There has been a long-term drop in the proportion and numbers of first-time buyers (FTBs) and a decline in the rates of owner-occupation among younger age groups since the late 1980s.” (p11)


Report here (pdf)

Chart showing growth in house prices v growth in pay from 1998 to 2010.

And here, especially for you, some reality:

Using this, we can see some prices today.

2011 average prices

Lancaster – terrace £120,420. In 1986, a two up, two down was around £14,500 (I know, because that’s what I was buying on a wage of £105 gross per week – £5,460 per annum. I lost it when made redundant and took a job at £60 gross per week – £3,120).

Hackney – £304,638. There are one-bed flats down our road right now that, when built around four years ago, we put on the market for £250,000. Prices in our housing association block were £60K around 17 years ago. Selling now (if you've bought the rest) for around the price quoted in that survey – one sold for £365,000 around three years ago. These are 'two bed' – ie, one is a box room with just about room for a single bed, but nothing more. Being what used to be regarded as sensible, you need an annual income (let's allow for it to be a combined income) of over £105K.

The mean income in London is £29,947.

The mean income in the north west is £20,483. (Data here)



Smith Institute: “The affordability of owner-occupation has deteriorated over the long term. Average house price increases outstripped average earnings from 1970 to 2000 in all areas of the UK except Scotland. Since 1980 the incomes of higher earners have risen faster than those of others, leading to greater pressure on those at the margins of home ownership. There has been a long-term drop in the proportion and numbers of first-time buyers (FTBs) and a decline in the rates of owner-occupation among younger age groups since the late 1980s.” (p11)


Report here (pdf)

Chart showing growth in house prices v growth in pay from 1998 to 2010.