Article 083 - The Ability to Pay for Architecture in Britain in 2014
The Ability to Pay for Architecture in Britain in 2014
Since 2007; when the economic failure of the World Bank accrued too much debt to sustain value; the debt risk associated with the production of Architecture has increased.
This has had the following effects on the ability of the general public to pay for Architecture.
The Available Money
Based on the amount of metal and paper money in circulation; in order to isolate the volatile value factor; the amount of actual money in the British economy that could be used by the general public was as follows.
M0 and M1 money notes and coins = £47,000,000,000,000
M4 Money – Assets = £ 2, 700,000,000,000
Source: Bank of England 2010
The Population and Working Numbers
In 2013 the population of Britain was = 63,700,000
Amount of potential money per person = £737
In 2014 the working population was = 30,400,000
Amount of potential money per working person = £1544
Income levels
The top 10% of the working population earn = £60,000 p.a
The bottom 10% of the working population earn = £8,600 p.a
The average working population earn = £23,000
Source: ONS
Mortgages
The following are comparisons of incomes, purchase ability by location, mortgage ability, house cost and house values for sections of the population of Britain.
A couple with 2 children would have an income of £151,400 per annum
This would allow them access to 96% of the housing market in Britain.
Source: theguardian.com, Tuesday 25 March 2014 12.58 GMT
If they have a 4-5P 2 storey house they
could put a deposit of = £50,000
Allowing for mortgage payments per month = £2000
Allowing for a repayment over = 12 years
Allowing for a fixed rate mortgage = 4.69%
Allows them to have a house of total cost = £272,003
Allows them to have a house of total value = £284,759
A couple with 2 children would have an income of £19,700 per annum
This would allow them access to 22% of the housing market in Britain but only in the north of Britain
Source: theguardian.com, Tuesday 25 March 2014 12.58 GMT
If they have a 4-5P 2 storey house they
could put a deposit of = £10,000
Allowing for mortgage payments per month = £700
Allowing for a repayment over = 33 years
Allowing for a fixed rate mortgage = 4.69%
Allows them to have a house of total cost = £272,003
Allows them to have a house of total value = £284,759
Several of the groups can be shown to have the same issues of income to purchase ability to location to mortgage ability to house cost and to house values.
Source: theguardian.com, Tuesday 25 March 2014 12.58 GMT
A single adult with 1 child would have an income of £ 10,000 to £77,000 per annum
Two adults with no children would have an income of £13,300 to £88,500 per annum
Two adults with 1 child would have an income of £15,300 to £113,400 per annum
This would allow these groups access to 1% of the housing market in Britain but only in the north of Britain
If they each have a 4-5P 2 storey house they
could put a deposit of = £3,000
Allowing for mortgage payments per month = £700
Allowing for a repayment over = 33 years
Allowing for a fixed rate mortgage = 4.69%
Allows them to have a house of total cost = £272,003
Allows them to have a house of total value = £284,759
Welfare Payments
Welfare payments are paid to 20.3 million families in Britain in 2013.
Source: The Observer, Saturday 6 April 2013
Allowing each family a house. Allowing for 27,000,000 houses in Britain. Allowing for 3 people per house. This accounts for some 60,000,000 people out of a population of approx. 63,700,000.
Welfare payments for a couple = £500 / week = £26,000 / yr.
Welfare payments for a single adult = £350 / week = £18,200 / yr.
Source: https://www.gov.uk/benefit-cap
Conclusions.
From the money levels per person in the economy there is no ability to pay for construction or Architecture in Britain.
There is simply not enough cash and notes money in the economy.
From the amount paid to each person the only way to pay for a property is by accessing the ‘value economy of consumerist belief’.
This is achieved by bank loan, mortgage and so debt and repayments.
This is a popular ‘buy now but pay later’ theory.
It is a positive incentive used by the state to maintain a working population.
It allows debt to be passed through families by inheritance and so cause debt to create loans to create repayments to create growth in future economies.
This economic growth is a consumerist policy that neglects the future resources and environment.
This is the form of consumerist economy that ended in 2007 when the world bank accrued too much debt to sustain value and the American Housing market collapsed and brought down banks that had supported its values.
The current consumerist earning level only allows repayments for a standard detached house value. It determines where people live in the Britain. It supports families with children more than single adults. It is supported by the ultimate consumerist product, Welfare.
The current earnings cause the potential fee repayments to construction professions to be extended over a number of years to pay for any construction work or Architecture.
In the current context of climate change and resource depletion Architecture must adapt to remain as a functional art of a society.
Architecture is therefore unable to be paid for financially, and also in energy, resource or environment terms in Britain in 2014.
Ian K Whittaker
My websites:
https://sites.google.com/site/architecturearticles
Email: iankwhittaker@gmail.com
24/07/2014
14/10/2020
967 words over 3 pages