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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Original poster

To think there is not a chance the average family only spends £67.30 a week on housing, is "only" £55,795 in debt and...

59 replies

Roseflower · 01/12/2011 00:38

this debt includes mortages. Yet the average house price is apparenty £241,279 so it makes little sense.

And £67.30 a week ? Really? People actually can cover there entire rent/mortage, council tax on so on on this amount?

The statics are from this article here www.bbc.co.uk/news/magazine-15197860

AIBU to think these figures simply dont work?

Either that or we have gone seriously wrong somewhere and I wish our figures were so low...

OP posts:
acumenin · 01/12/2011 08:31

o.O We're in the fourth decile and we spend £108 pw on rent and council tax. Our income breaks down roughly:

housing and council tax : 33%
discretionary and COD: 25%
food: 18%
gas electricity water: 9%
savings: 5%
insurance: 3%
charidee: 3%
comms: 2%
transport: 2%

I thought that was pretty normal (except the low transport costs but that's because we're mostly housebound). I'm pretty amazed that people are spending such low proportions on housing. It has always been our biggest expense, by miles, and we live in an actualfax slum. Wow, I'm really suprised by that article.

Angelswings · 01/12/2011 08:41

There are some people who get accommodation free as part of their job, it means they get paid less but that doesn't show on the statistics.

Sevenfold · 01/12/2011 08:42

we rent with HA and our rent is way over that so it is rubbish

Trills · 01/12/2011 09:03

YABU - and anyone saying "our rent is X" is missing the point.

Mean averages can be skewed by very high or very low values.

Many households do not pay anything on housing, and many households have no debt.

It's not the average household-with-a-mortgage-that-they-got-in-the-last-few-years.

catsrus · 01/12/2011 09:10

agree willywaggle one of my pet hates is the way in which 'average' is misused all the time Angry - I think mode is what we need to know - what is the most common spending pattern and what % of the population does that represent?

NinkyNonker · 01/12/2011 09:12

Haha, we live very sensibly, yet to rent or buy is extortionate here. We have no debt bar mortgage, but you try buying anywhere in your thirties, on the South Coast and only have a £55k mortgage without lots of family help!

I guess there are real regional variations and obviously age ranges.

hardboiledpossum · 01/12/2011 09:13

It makes me feel sad that we pay over £1000 to rent a tiny 2 bed flat. If you were lucky enough to buy over 10 years ago then it makes such a difference, both my parents have tiny mortgages compared to my rent and live in nicer areas and much bigger houses.

acumenin · 01/12/2011 09:13

Hm, the new Family Spending release does not break down by decile group, so...I'm not really sure to whom it can possibly be relevant? Can any lurking statistonerd enlighten me?

acumenin · 01/12/2011 09:14

Oh! I take it back: Housing expenditure by gross income decile group, 2010

lesley33 · 01/12/2011 09:14

I agree with Trills. Many people don't understand statistics as this thread shows. So for example take 100 people. And imagine:
20 of them are older - have paid off their mortgage and only paying ct - housing costs about £28 a week on average.
1 person living in tied housing only paying ct - £25 per week.
5 people in rented getting benefits so only paying £10 per week on rent and ct.
20 other people getting benefit help with rent and ct so only paying £ 30 per week
5 people with low mortgages so only paying £28 per week on ct and £30 on mortgage a week - total of £58 per week
This would mean the other 49 people would be paying £106 a week and the average would still be £67.30.

And the average house price is skewed in the same way by big expensive properties. The majority of people do not live in a property worth anywhere near £241,000

NinkyNonker · 01/12/2011 09:17

We do understand that, Hmm, people are just using the thread as an excuse to let off a little steam is my reading of it.

A £241k property is not a big place round here, it's what we're looking at and you are talking a bog standard 2/3 bed semi.

hardboiledpossum · 01/12/2011 09:19

Did they use the mean or median to find the average?

hardboiledpossum · 01/12/2011 09:22

lesley I do undestand stats but it still frustrates me. Where I am 241k wouldn't get you much, a one or two bed flat. The average house price here is 604k

Bramshott · 01/12/2011 09:23

I think the article muddies the waters between "family" which implies a family group with children living at home, and "household" which covers everyone from young professionals to retired couples.

lesley33 · 01/12/2011 09:24

ninkynonker - Depends on your understanding of what is bog standard housing. I would view a semi as middle class housing. Bog standard is terraced housing in my book. And house prices vary enormously by area and across the country.

Trills · 01/12/2011 09:24

I think this thread shows that the numbers they presented to us, while probably accurate are no use whatsoever because they do not enhance our understanding of anyone's financial situation.

I'd prefer to know "the middle 50% of people pay between XX and XX a week on rent/mortgage"

The categories were weird, too.
Housing, fuel, power £60.40
Other expenditure (inc mortgage payments, council tax) £67.30

Why are mortgage payments not housing? Does this mean that rent and mortgage payments come under separate categories?

NinkyNonker · 01/12/2011 09:31

We live in a terrace at the mo, still £200 odd k. If you want another bedroom (mainly 2 bed terraces) then you need at least a semi here.

acumenin · 01/12/2011 09:33

Trills, I linked the tables upthread so you can see the breakdown by decile group. They also break down into sharply defined areas: contents insurance, council tax, rent etc.

But the tables are "less allowances". I included allowances (housing benefit, tax credits, DLA etc) in my income and expenditure percentage breakdown and generally organised it differently so it's not a good comparison at all.

lesley33 · 01/12/2011 09:33

Do you live in the South in a well of area - ninkynonker?

StaceymAloneForver · 01/12/2011 09:46

my rent is £400 a week for a 3 bed semi :( i need to get out of surrey!!!

I want £67 a week housing costs!!

NinkyNonker · 01/12/2011 09:49

Yep, for our sins. We need to be here for DH's work which is very specialised. Lovely place though.

debtpenguin · 01/12/2011 10:23

We live in Scotland - rent for 1 week is around £120 (2 bed semi, very very very cheap for this area), CT works out at around £50 a week. gas/elec together around £19 a week via DD.

Wish we could spend £67 a week on all of that! :(

JjingleBeanplusPudalltheway · 01/12/2011 10:27

Our rents £650pcm for a 3bed
Electric is £40-50pcm
Gas is £30 per quater so far.
Council tax is £150pcm

Were in around £6000 debt which isn't much apparently Hmm

samandi · 01/12/2011 10:39

Good lord, for several years I paid well over that for a tiny room in a houseshare :-( That's rent only, never mind the council tax!

ladydeedy · 01/12/2011 10:51

bloody hell as my mortgage is about £1500 a month I am obviously doing something wrong!