This is what you call an abject failure of government. Kiss goodbye to any productivity improvements while this demotivating, unsustainable situation continues.
And people wonder why young people aren't having children. Talk to childless people in their late 20s and 30s. A lot of them want children but can barely survive on a full time salary. Even with two people working full time it's never enough to more than just survive.
This is the story of life in America as well. A lot of us wanted to raise families but the jobs we were promised didn't materialize upon graduation and then the 08 crash happened. It's a cruel joke that was played on two generations now.
Your 💯 as this part of the plan of the millionaires and billionaires classes who do not want the poor and working class to bred child sounds evil and it someways it is as with University fees going up even further puts a nail in the coffin ⚰️ in many young people having children so sad..
Not sure about how many % is true, we do not have any studies on it. But it did make it looks like the youngs think the older generation stole their opportunities.
@eruketo3969 political choices stole opportunities from the kids. The older generations just tried to muddle through- the boomers didn't know they had the best conditions, they would have expected continued improvements for future generations. Wars in the middle east/mass migration/QE/foreign aid/selling off critial infrastructure to other countries to profit off......too many things to list.
I saw a programme worst house on the street and a young couple bought a house in W Bridgeford Nottingham, a complete dump and only a terrace house for £270K. 30 years ago that would have been £20k tops. They spend £90k on it (the programme didn't say where they got this money) and the house was revalued at £480k. On what planet can a young couple afford a £480k terrace house? My first 3 bed terrace house was £27k in 1987 and I added a loft conversion to make 4 bedrooms.I sold it for £35k in 1995.
When you pump a dead financial system with liquidity in 2008/9 onwards, and then in 2020, that liquidity has to find a home, asset prices will inflate as they have and continue to. The problem is the bubble needs to keep being pumped up, liquidity is draining rapidly, we're gonna need one hell of a crisis to justify the next cycle of money printing, some are predicting late autumn this year. Hold on it's gonna be one hell of a ride.
@@cleanhit777 just out of interest, what is the prediction for late autumn ? Nearly eveyone I know is financed up to their eyeballs right now ! people are paying silly money for cars they probably cant afford and mortgage rate increases have crippled spending habbits of old.
@@TheEnduringCitizen it's quite technical, but all the indicators are that financial conditions in the US are coming together to cause a crash, probably this autumn. The fed is going to have to step in, or it's curtains. The problem is that there's a chance they won't be able to save the day, or that it will only be temporary. Just listening to this video tells you the system is broken and that a total reset of the financial system is inevitable now, whether or not we'll like what we get, we'll all find out very soon. If you want to get into the technical side I'd recommend George Gammon ( rebel capitalist) he is very good
@@eddieharris6004even as an engineer you don't get paid more than £40k , a mid grade doctor doesn't get paid more than £50k. If a doctor on a permanent contract can't afford a house who can ?
I appreciate the video, very insightful. Regarding your optimistic comments in the final minute, I'm not convinced. Young people might have opportunities that previous generations didn't have. But the cost of such opportunities is so high that unless you are from a wealthy family, it doesn't really make any difference.
@@jamble7k not sure I quite understand what you're referring to. Regardless there are some useless degrees and some probably would benefit from not going to university. A degree in gender studies does not hold the same value as one in Law or Medicine etc. But if you really want one in virtue signalling I'm sure there's one out there for you aha.
Another factor you've missed is poor job security. Most young people will find themselves in occupations where they're on temporary and zero hours contracts. Even if they're in a graduate job. You can't commit to a mortgage in those situations. I was resentful when I was in the workplace where I got layed off when I knew I was more productive than other workers who were on more secure contracts. Purely because of the timing that they entered their occupation. The solution is to reform contract law, but the unions would be dead against that.
"Is overgloom exaggerated?" No, it's underappreciated. The key thing is not well understood by most people is the percent of their earnings that goes to all sorts of pockets just to pay for the basic access to life in the UK.
I cant believe that when interest rates were low for years that the Government didn't set up a scheme to build affordable houses in bulk. The could have borrowed the money on very low rates and the rents on the properties would certainly have covered the interest payments. The capitol could have been written off over say 50 years and the Country would have ended up with millions of extra homes. What ever is done it is impossible to build enough to supply the vast numbers of immigrants adding to the population every month.
You hit the nail right on the head there, it had to have been a deliberate plan as a blind man on a galloping horse could see that was the logical and ethical course of action. They chose to inflate asset prices rather than help the electorate and enrich the nation as a whole.
My understanding is that a sizeable proportion of MPs at this time held property portfolios so there could have been a conflict of interests. Added to this, there is also a significant influence from rich donors who again had their own agendas. Personally I think that politics needs to be cleaned up but I seem to be alone here.
@@garyb455 the Conservatives hate the concept of social housing, and ultimately any social housing would be built by local authorities who have barely got the funding to keep essential services running. Add to that any new build housing being stuck on the planning system for years whilst every NIMBY has there say the model for low cost housing falls apart.
According to a report from Nationwide, real average house prices are the same as they were in 2004- that’s 20 years ago. So the problem is not house prices , rather that real wages have been in decline. Add the cost of living crisis of recent years, rises in general taxation and you can explain why house prices seem expensive. Lots of manufacturing jobs have shifted into ASIA as the production of goods was outsourced there. While this benefited the public through lower consumer prices, it pushed UK wages down while at the same time it produced extraordinary profits for the big corporations. These profits have been mainly recycled into financial assets and that that in turn has led to increased amounts of wealth concentration at the top. I do not believe that the housing market has failed new generations, I think is the economy as a whole that has failed them.
I am a millennial and own my own home, as well as an investment property overseas. My 3 keys to success: 1) Inherit s 6 figure sum 2) Be in the top 1% of income 3) Marry someone with 1+2 themselves If you don’t do those three you’ve only got yourself to blame /s
@@jayc342009no worries the poor will conquer the world so you can imagine the bright future the rich individuals will have by getting beaten on the way, unless people completely stop having children on this underworld predatory heaven called Earth
@@lightweightben I'm a millennial and I'm a self made decamillionaire and oven over 150 units. I've never inherited a penny. I do agree with you in that being on the property ladder or not being on the property ladder is a choice for 95% of the adult population.
A price to income ratio of 7.6 is pretty sweet. It's closer to 11 in the Netherlands. The average house is like 480K Euros these days. 300K Euros would get you a dump.
If a stake in society has been put out of reach, what incentive do you have to contribute towards it? The answer is you have no incentive, nor do you have any incentive to contribute towards the next generation of tax payers. The data indicates this is the case, with a substantial increase in the number of people who are economically inactive and a declining birth rate.
This is a great point and perfectly underscores why you tend to hear all the " End capitalism" rhetoric on campuses and amongst young people these days. Obviously politicization, (particularly that of the left) has always been prevalent at universities, but something has genuinely changed for the reasons you described. The moral failure of the system is pushing more and more young people towards extreme forms of groupthink and at times verging on outright Communist talking points. I think the point itself is rubbish and an example of an over corrective attitude which is sadly omnipresent in British politics these days. I think the conversation needs to move towards efficiency in the system. I also think that for too long the landlord types have gotten away with absolute murder when it comes to making crude arguments based solely on market value. The unwillingness to ever consider discussing housing as a moral field as well as a financial one speaks volumes. Additionally, The level of in your face mockery the young people have had to face throughout this crisis has been astonishing. There is, sadly, a spoilt greedy Karen class in our society that in particular loves to tell people how there are no issues with the system whatsoever, while owning multiple homes and charging extortionate rents. The denial is the worst part, there are so many middle-aged types who the minute they hear young people complain about anything brand them as lazy free loaders, there are millions of young people across Europe working more hours than any generation since working standards and labour movements first began. Either we reject the Karen and publicly shame them which is the only language they will ever understand or we face a slide into a dickensian Britain. A Britain where destitution is the norm.
Perfectly valid point. If a young person cant get onto the lowest rung of the housing ladder and raise a family then who can blame them for spending on foreign holidays, Taylor Swift concerts or the proverbial avocado toast.
This guy blames landlords leaving the private rental market (due to changes in tax rules) for increasing average rents, but fails to backup this claim with any graphic. Why? The size of the PRS (private rental sector) in England has grown in size from 10% of all housing in 2001 to 19-20% of housing in 2016, where it has remain static at 19%. He seems to have swallowed the propaganda put about by the landlord industry that landlords are “leaving in their droves”, and this is driving up rental prices. When this is completely untrue. The reality is that 20% of housing are out of the market (to buy) and this has reduced availability and helped to push up prices (to buy). And when many of these renters reach retirement without being able to buy, who will pay to keep them housed? Taxpayers will face a hefty bill. Also, there is no mention of the insecurity faced by private renters (10 million people) in England and how no fault evictions are the biggest cause of homelessness in London. And this guy is implying that the private rental sector needs to grow further?! How big would be optimal for you? 25% or 30% of all housing? Or 50%? Madness economics.
Im 28, and still living with my parents. I've been house searching for more than a year, and just seems so exhausting, as house prices are too much. I need to have a salary of 40K or more around Manchester.
That chart at the 5 minute mark says it all really......from a rough average of 150,000 council houses per year to zero in two decades.....from 3000 brand NEW constructions entering the public rental space each WEEK for decades to it becoming entirely privatized......it's taken some time but the mess is now on display for all to see and it will require a multi-generational reset to fix. Ideology gone berserk with little attention paid to consequences and systemic effects. And then there's turbo-immigration to add fuel to the fire.I wonder how Rory Stewart & Alistair Campbell over at the "Rest Is Politics" would explain (spin) this? Brilliant content BTW....but don't feel compelled to end on a "positive note".....it's not your fault UK is such a mess......objectively revealing the grim truth in charts and without an obvious axe to grind is is a good deed....you're the UK's equivalent of Scott Galloway (author of the brilliant book "Adrift").
Don’t blame a lack of socialism because it’s socialism that got us here. It always is. Town and Country planning act prevents people from building and has done nothing to better building quality 😂 The British fascination of keeping up with the Jones’, or rather, holding back the Jones’ if you can’t keep up is what has created this.
@@josephedlin2172 "The British fascination of keeping up with the Jones’, or rather, holding back the Jones’ if you can’t keep up is what has created this" literally this! and the boomers desire to sweat their kids for additional income via buy to lets and taxing workers to pay for the things they want - their parents never did that to them but they are very effective at doing that to us.
@@josephedlin2172 how is it socialism that got us here? Thatcher started selling off the social housing - she was by no means a socialist! The lack of new affordable housing over the last fifteen years happened under tory governments, who - again - are as far from socialism as you can get
The government built council houses to support people coming back from the war. This was a crutch that was used far too long. We let people have free housing at the expense of working people for too long. I'm happy that we no longer subsidise as many people in houses paid for by the rest of us. You are your responsibility. Council housing that does exist should be means tested so that those who are really in need get those houses. When this happens I'd support building more council houses, but I wager my own house that we won't need as many as you think to support the needy.
Agree with everything you said. Want to emphasise your point on young people getting into a trade (plumber, electrician, carpenter, builder, etc) as a great or even better alternative than university for a lot of people.
I spent 10 years at uni and have three degrees including a PhD and have what is considered to be a good office based job. All my friends / family who do a trade job earn more than I do. :D
Hi get a trade I've been in the building industry for thirty years and have seen it go from the wages being that bad that you got paid more for staking shelf's . but because they have not had any apprentices for about ten+years there's a big shortage of trades people in this country. As we need to build so many houses and don't have the people to build them trades are getting paid so highly for their skills. The only problem is this generation because of technology are not used to hard work and one thing the building industry is is hard work . thanks John.
@@mariog1051 hi thanks for your reply the point I was making is because we are now in a computer age all young people are addicted to phones .I do understand that you have to more with technology and in a lot of cases technology has been a great thing for the modern world. But the building industry has not changed that much it's still a very physically demanding job and the younger generation would rather do a computer related jobs because they are a lot less physically demanding (I do understand that you can have mentally demanding jobs which are hard) this means we are going to struggle to build the House's we need and the experience trades are now getting old with know one to replace them thanks John.
Maths grad here on 40k working as a research and data analyst in London. I'm just going to leave the UK next year, there is 0 chance of buying a house here and I'm just tired of the private rental sector to be frank.
London is the issue. Get a job where you can work remotely as soon as you can and move somewhere with cheaper houses. It's the only hope for most of us to have a house paid off by retirement age.
I’m closing in on my retirement and I’d like to move from Newry to a warmer climate, but the prices on homes are stupidly ridiculous and Mortgage prices has been skyrocketing on a roll(currently over 5%) do I just invest my spare cash into stock and wait for a housing crash or should I go ahead to buy a home anyways?
Considering the present situation, diversifying by shifting investments from real estate to financial markets or gold is recommended, despite potential future home price drops. Given prevailing mortgage rates and economic uncertainty, this move is prudent, particularly due to stricter mortgage regulations. Seeking advice from a knowledgeable independent financial advisor is advisable for those seeking guidance.
This is precisely why I like having a portfolio coach guide my day-to-day market decisions: with their extensive knowledge of going long and short at the same time, using risk for its asymmetrical upside and laying it off as a hedge against the inevitable downward turns, their skillset makes it nearly impossible for them to underperform. I've been utilizing a portfolio coach for more than two years, and I've made over £800,000.
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My wife is a landlord, her rental property rent is £420 per month, £100 lower than comparable properties in the UK. Her tenant is elderly and my wife wants her tenant to feel secure in her home, my wife is aware that her tenant cannot afford the average rent in the area. She wants rent control, and commented on such on the Conservative home website, her comment was heavily criticised. How can people afford such outrageous rents? Before Reagannomics and thatcherism, banks lent only on one salary for a mortgage, after deregulation of the banks, they lent based on two salaries, house prices have soared. And of course thatcherism reduced social housing. All of these factors have led to misery for our young.
Eerily similar to how the Canadian government abandoned building social housing in the 1980s as well. Painfully ironic they stopped at a point in history where we need it more than ever.
@Lookup2Wakeupcorrect. The bank bailout meant there was no crash, when there really should have been. QE and help to buy have then pushed asset prices up.
papers like the guardian have been talking about a crash my whole life - the politicians won’t let the system collapse; it’s the only thing standing between them and anarchy across the country!
Keep up demand? People are not going anywhere, there is no incentive for real estate developers to meet demand when it benefits them to keep demand high. Consistently.
Whilst overall net migration and a general shortage of housing is a factor, you miss the main point of why housing in the UK is so expensive. It's not only a bit beyond peoples means, but it's an order of magnitude over what they can afford. Why is that when the largest group of potential buyers are in the working population and they can't afford to buy or rent? I'm going to give you a thumbs down for your analysis, or should I say observations, and I'll tell you why: We have a two tier tax system that provides a raft of tax deductions for rental property ownership expenses. More so if rental properties are put under a company umbrella. This provides even more benefits including freedom from stamp duty when buying an 'uninhabitable' property to relief from capital gains tax when rolling the proceeds of a sale into another project or property purchase. The tax system that benefits rental property owners is directly inflating house prices to sums beyond ordinary earnings and provides those rental owners with tax derived profits that ae not open to people on PAYE. Consequently they buy up more properties thus further inflating the market. The reason why affordability has now dipped below x9 average wages is because mortgage interest tax relief has been withdrawn from buy to let mortgages (George Osbourne), but there is still plenty to made leaving a property purchase beyond the means of ordinary buyers. You also have to remember that in general migrants are not buying properties, they are renting. Those rents and the rents of the unemployed and working poor are supported by Government housing benefit payments. The increasing demand for rented homes means that landlords already benefiting from significant tax breaks on their investments, can put up the rent without market resistance. In many inner city areas where the poorest in society live the extra rent demands are paid with housing benefit from the public purse, which is why social security payments have gone up. Rental owners are benefiting from two sides of the tax and benefits system. People on PAYE are quite literally subsidising wealthy property owners, and the tax burden is going up as a result whilst private home ownership goes down, alongside ever increasing burdens on the state. Please provide a better analysis, you don't need a PhD to work it out!
Spot on! The private rental sector has been allowed to grow too big over the last 20 years, from 10% of all housing in 2001 to 19% now. If we’re not careful we are going to turn into a nation of renters rather than homeowners. …And taxpayers are going to be paying £10,000,0000,000s more annually when the renters, who can’t afford to buy, eventually retire and have to depend on housing benefits. A ticking time bomb for future generations.
Low interest rates are not the real problem, the issue is Supply and Demand. If supply is lower than demand price rise, it's that simple. House builders know this and so they starve the supply, holding onto land bought cheap from councils and leaving it undeveloped. Imagine the boom to the economy and home ownership if they built on all the land they own and have planning permission for.
UK is so messed up economically. But even pre-Brexit, young people were not leaving in droves to try and earn a living elsewhere. I suppose employment is still pretty high. Now compare this to many foreigners I've met in the EU hailing from Italy, Egypt. Some skilled, some unskilled. We really need to boot out globalism. Politicians are complicit but globalism is at the root of nearly all our problems.
I left the UK in 1996. Boarded up factories, joke courses at college, £1 an hour jobs and a never ending dole queue just wasn't worth it. Worst decision I made? Coming back to the UK 6 years later!
WE ALL live in a globalised economy. There is no getting away from this unless you feel the North Korean model makes a good choice. Young people are not leaving in droves because it is very difficult for young people to set up a life abroad anymore, thanks to Brexit. I do sometimes wonder if the idea behind Brexit wasn't to keep immigrants out, it was to trap the British on this island.
2 unforeseen events 08 crisis and covid have completely wiped out UKs productivity, look at the flattening of 08 crisis, so id expect even worse productivity for the next 10 years after covid, if any at all. UK is GG, thanks for playing, it was fun.
Also 2008 collapse and money printing plus low interest rates means more money is chasing what assets are left. If one bank will lend you 100k but my bank will only lend me 80k you will purchase the asset not me and so the escalation of asset prices continues. It’s been a perfect storm!
Lots of houses being built but too expensive!!!...Croydon Council have bought up houses in nice areas on the south coast plus put people who would never be able to afford them in them.These people are completely terrorizing the area in their hooddies
Eldest daughter has already left this prison island. Eldest lad doing his apprenticeship, but working full time through the summer, then he'll be leaving too. Possibly joining my daughter in South East Asia, or maybe finding somewhere different for himself. I'm hoping to leave as soon as I turn 46 (that's 30 years I've put into the state pension), so just 6 more months of this draconian hellhole to go.
@@platinum11110 Thailand, South Korea, Guyana, Slovenia, Paraguay...there's a few. It's just having the gumption to go and do it. My pal has gone to Guatemala. He's in his mid thirties, has a bog standard job working 3 to 4 days a week and has no plans to return to the UK.
@@jonathanjonathan7386 I did reply but surprise surprise my comment was deleted! So I'd love to tell you my thoughts on having to spend another 5 years in this hole, but sadly I can't.
One of the biggest scandals of our time. A generation and more will be lost and for those unfortunate enough to have no where to go, they will be on the streets.
A low percentage of young people going into creating and building professions (builders, carpenters, etc) leads to fewer physical assets available to more people in the long term. Houses have a 'birth rate' too
lets understand something, we are at a level where high quality houses can be made on a production line and delivered on a flat bed to a site where the base is ready and all services can be hocked up in just a few hours . the problem is is that they would be very low cost , the powers that be want you in debt struggling to pay for your 250.000 house for 35 years with money the bank spun out of thin air . a house that would drop in value by half if low cost housing was implemented by government . so as pepole with money invested in property and rubbing shoulders with bankers and other pepole who have large numbers of property in there portfolio.they done want a solution to a problem that effects us plebs and benefits them massively.
38yr old living with family paying half of what I would in rent for an apartment. US based no hope for a house unless I go to Japan and buy an abandoned home.
Not saying everyone should go to uni, but the reality of the current student loans system is a graduate tax. Noneed to pay it til you reach a certain income threshold. Then it's 9% of everything over that income. For a good degree I don't think it's a bad deal, especially with a year in industry option.
It’s a penalising tax bracket - and when it never goes away you will start to really resent it when you realise you paid more for 3yrs at uni than you did into your pension you’ll really resent it. There is HUGE profit being made from these loan books due to ridiculous interest rates!
@@TobotronPrime Spot on. Its predatory lending to young people who won't have the concept of compound interest for another decade or so, by which point it's too late. This country truly is a pit of corruption today.
@intent7705 It's definitely more than that. I'm on plan 2 threshold and previously earning more than the current minimum wage on past jobs. In my current role, I'm now repaying that debt since its past the threshold. You have to be earning more than 27/28k a year to start paying back student loans on plan 2.
This rental issue can be resolved at any point by phasing in ever increasing standards. The whole sector is ridiculous, it's made worse by the idiocy of things like trying to get rid of no fault evictions rather than solving it. Out of all the issues we have this is one of the easier ones to fix.
@@redbruce1999 let's ask a different question. Are people suggesting that if you invest in property you can not exit at your choosing? Because unless that is catered for in another way it's a drastic change. What exactly will be the method a landlord can use when they want to exit? Can it be blocked? Blocked for how long? What about that delay to market impacting return?
@@3d1e00answering a question with a question? The Renters Reform Bill (for example) specifically included provisions for A) LLs wanting to sell their property and B) Wanting to move into their own property. So to answer your question, even after banning no fault evictions (RRB), there would be nothing to prevent LLs choosing to sell their property. So you still haven’t explained why banning no fault evictions would be idiocy. Also, a ban on no fault evictions has been on the cards since 2017, so it shouldn’t come as much of a surprise to any LL.
No because they are going into the hotels that people can't afford. Have you seen how much a premier inn costs these days £80 a night! No offence to premier inn but its the same with Holiday Inn and Hampton by Hilton... Imagine 3 days in Blackpool for £240 lol no thanks. Give it to the migrants.
@@Dr23rippa not really, a quick googling will show the net immigration to the UK EVERY YEAR is close to the total number of hotel rooms in the country.
@@PeterT-i1w Yes ok that's true one overall statistic from ONS however we know that each individual isn't going to have their own room. There could be 5 people to one room in most cases or 3 in one room. Also take into account not every migrant will be in a hotel, some might actually have friends or family to stay with. There are tons of pubs in the country that have been converted into flats or HMO's also let's not forget prison cells. I'm sure there are a fair share in there too. To imply that each migrant would have one hotel room to reach your equation of number or migrants = number of hotels is absurd.
@@Dr23rippa that number of immigrants flowing in each year, and if you put 3 migrants into each hotel room, then you run out hotels in 3 years. I'm not sure why do you disagree that millions of people flowing in over the years will create housing shortage. Even if a new home would be built for each immigrant, where does it all end?
Called Diachronic competition.previous generations extracted ..used..resources. leaving very little to their progeny. Carrying capacity deficits,in a world of 8100 milion
Labour needs to keep this in mind. Young people who may inherit to help get roof over their head Goverment cannot do much but they will not family help
This video is so far wide of the mark. Very disappointed. Housing is not an economics 101 subject of supply and demand with a few microeconomic variables. This is about the land, fixed in time and space, completely unique, as Churchill said (paraphrased), 'the mother of all monopolies'. No mention of Buy-To-Let mortgages in 1997, nothing about the 1988 end of rent control and the consequences, or even how, in 1910, 10% of the population owned 90% of the property (i.e. 90% rented off the Private Rental Sector PRS) and by the 1970s that had dropped to 93% of people not renting from the PRS leaving only 7% PRS that is a crash of over 80%! How and why did that happen, and wasn't there a cry in the 1970s for more PRS? Well, no, just more houses to buy or social rented housing. We now have 21% PRS if we reduce the back to 7%, that over 4 million properties either back on the market for sale or for local authorities to buy and rent at social rates. In the 1950s-60s, the land value of a house (the other being the build value) was between 3-15%. Now, on average, 70%! For what? A commodity via initiated debt markets via Big Bang (1986) de-regulation. It really doesn't have to be this way. How did this happen between 1915-1988? Rent controls. This forced governments into building social housing as there was no yield value in the PRS, killing land values, meaning the government could buy land (ref 1947 Housing Act), and house builders just got profit from building, not land value uplift. Also, there was no future value in land due to taxation on uplift. This was no utopia, as a later act in 1956 led to slum rentals so landlords could kick tenants out and get an uplift, which was repealed by the 1965 act. It was a constant battle, but by the 1970s, the UK showed signs of a housing surplus! None of this came without a fight; it took WW1 for a strike by the armaments industry, which started in Glasgow and spread throughout the country. The government either gave in to the landlords and forced tenants to pay or put a rent Freeze in place during the war (backdated to 1914). They chose the latter. Rentier landlords gain rent from extracting an asset from the market and causing scarcity by that extraction, thus putting up rents. This is not about 'passive income'; it's exploiting working people's potential to own a home. This is just the tip of the iceberg or one of many elephants in the room. Finally, this video concludes that this will continue if the graph shows a downward trend. Proof? Bond yields go down as interest rates go down, and land again becomes attractive for yield, i.e., 2010-2019. When you hold no debt and debt is cheap, then to create scarcity via cheap loans on a fixed asset that cannot be made is a no-brainer unless that asset is taxed (via Henry George's idea of Land Value Tax LVT 1890 that even Churchill, Keynes and even Hayek agreed on) or has Rent Control placed upon it. Decommodify land so that no rentier landlord (who does no productive work) can no longer own it. We all should work and graft; passive income in this context is theft. Thus, the Game of Monopoly (called initially The Landlords Game) is based on Henry George's LVT to show how landlordism works and is always ultimately destructive for the majority.
Wow, that’s a lot of housing knowledge, you seem to be a real expert on housing policy for the last 100 years. I think you have a bit more knowledge than the producer or this video, who is obviously no housing expert. I also called him out on apparently blaming a reduction in the size of the PRS (for increasing average rents) but failed to backup this claim with any graphic. Fuelled by BTL, the size of the PRS increased from 10% of all housing in 2001 to 19% now. How high does he think it should go 25%, 30%, 50%? Madness.
@@redbruce1999@redbruce1999 The last comment is spot on; the previous time it reached 90% (1910), then war and revolution. Just saying. Thanks. I've been at this for at least seven years and am finishing my master's dissertation on the subject. I may progress further, but I often end up spending too much time on poorly argued RUclips videos based on econ 101 when the issue of land cannot be applied (land is a fixed asset in time, space, and place and at the core of all governmental law, i.e., the protection of land rights). As for the past 100 years, it is again frustrating when empirically we can see what happens when Rent Controls have been introduced and also the consequences when they are relinquished. I.e. improved national equality with RC and inequality without because of the nature of land as a commodity. Books; Out of the many I've read, one of the most powerful concerning the bigger picture is Mariano Mazzucato's 'The Value of Everything' a very accessible read with loads of jaw-dropping facts; one of my favourites is the evaluation of GPD; if you own your house you rent it to yourself creating GDP value! Bonkers. Only recently have rentier landlord incomes been included in GDP (they shouldn't because they are renting an asset and extracting an income for someone else's productive labour; they are not creating new money or a 'product'). A more recent book by David Madden 'In Defence of Housing, and an infuriating read 'Who Owns England' by Guy Shrubsole, a very similar style to Danny Dorling (All That is Solid) and my tutor Anna Minton (Ground Control and Big Capital, both really informative if distressing reads) Piketty's Capital of the 21st Century and Chapter 10 onwards of 'Capital and Ideology'. Brett Christophers, 'Rentier Capitalism'. Marx, Das Kapital Vol 1 just read where unfettered capitalism ends up for the bottom 90% who died at an average age of 42, and some places were below 20! People worked to their early death. That is the end game of unregulated capitalism; if regulated with a safety net of welfarism (including health, education and retirement care), you can have the best of both worlds, but always in constant flux (which should be in a healthy democracy) as each generation wrestles with the consequences of the former, as Keynes concluded, in economics, no one can predict the future with modelling human variables let alone planetary ones thus the Black Swan Event. So his theory of Uncertainty is still the best; it predicts the very near future and government intervention when those pesky Black Swans arrive (google it if you have time). Conclusion; This subject is not for the faint-hearted and is way more complex than the ' well, build more houses' crowd. They never reply or engage as they quickly move on to their next clickbait video with assumptions and half-truths from the mouths of others, such as other RUclipsrs (it reminds me of the faults of AI: You only get spat out what has been retrieved from the internet; what could possibly go wrong)! The only way is to graft with many books, papers, and trusted news articles with a record of citations to check. Then, walk and connect the dots, listen to people from all walks of life, further ponder, look at other countries (in my case, the Nordics), and try to find a base to work from that has good outcomes for the majority. And thanks for your kind comments! Ref; housingresearch (dot)solutions
Declining UK birth rates are completely linked to the fall in living standards, mass immigration and rises in house prices. This will continue to get worse as long as people continue to vote labour, conservatives or any other parties that will continue these patterns.
This goes back to the entire European concept of "Land Ownership" and applies to all countries conquered by Europeans. But also why isn't accounting/finance mandatory in high schools when Adam Smith wrote "read, write and account" multiple times in Wealth of Nations. The book has been free on the Internet since 2001. Anybody can check. He used the word 'education' Eighty Times though 50% of Brits were illiterate in 1776.
A 22% rise in rents in the past 3 years. In those years ( and before of course ) MASSIVE influx of LEGAL immigration, coupled with a low rate of new housing being built. Strong demand outstrips supply, house prices go up and rent rises follow the same trend. There's a strong correlation between all these factors. Cutting the huge inflows of immigration will mitigate the acute shortage of demand for all types of accommodation- or does that statement now make me a far right racist? NO, IT'S JUST COMMON SENSE.
Let us talk about the old dream of home ownership that the video referred to, it is a very modern phenomena. Home ownership only passed 50% of household in the early 1970s, so this idea that most people should be home owners is at best 50 years old. That means that people in the late 20s or early 30s, it wasn't even the dream of their parent's generation that most people should own their home. I know this is a very unfashionable view but the reality is that across great swathes of the UK, private landlords are not expanding supply because they cannot make a sufficient return on their investment to make it worthwhile. Overall a useful video, even handed and informative.
Well, you would better have a house before you retire, otherwise you will be penniless once old. You may be able to afford few years of rent from what you have saved over your working life, but that won't cover the 20+ years many expect. So if you want to have a good life even once you are old, you do need to think about it now and try to get a property.
Easy economics. Immigration at record levels,most paid for by the British taxpayers. Demand is outstripping availability. We are paying for people to take the available homes. Madness!!
Selling council housing was a cynical attempt to stop working class striking as they would loose their homes. Housing Associations charging 80 percent of market value has helped push up housing benefit bill estimated 30 billion. Banks are now looking to buy newbuild to rent which will make problems worse along with population increase exceeding housebuilding !
We just need a national house building company, that builds houses, instead of allowing company's to bank land and not build to keep prices high, if wimpy wont build, then we should just build them with a new gov building company.
@user-yi6ui6pn4i State funds to start it of, then profits from home sales to keep it going and then any profits can go into nation coffers, as for strikes what happens now when wimpy staff go on strike? It would be a house building company not an arm of the state, so they would just be on same TCS as builders are now.
That's insane. We don't need to spend our tax money on building houses for immigrants. Close the borders, reduce demand for housing. 700,000 net immigrabts a year currently. We cant concrete over the entire countryside to house the world.
The public has had a choice and has voted for austerity, increasing wealth inequality, Brexit, increasing personal debt etc. Since the 1980s the UK has lost most of the industry that it owned, its housing stock etc. Much of this is now owned by the wealthy including foreign investors and there is an increasing drain on the earning capacity of the public within the country, and on the country itself. This could be turned around but there seems to be no interest in doing so at present.
80s houses were affordable. What happend in the 90s. That would massively increase the demand during a time of supply stagnation. Oh yeah, labour got into power, and opened the border, which has remained open ever since. Basic economics. Supply and demand
No hope for anyone now, people wrongly believe all oldre people have it made, however💩 can happen to anyone. We thought we had it made, but life does not play fair, I know that more than anyone, we did all the right things, worked hard, bought a house and still, through no fault of our own ended up renting again. Do not be fooled, life is deceptive.
Ugh....in the 80's the UK economy was horrible. However... One major change in the last 30 years....the privatization of social housing and the lack of building new affordable homes. But this is what voters wanted...this is what the Tories promised and delivered.
Ridiculous. The major historically unprecedented change with the importation by force of millions of foreigners who are living in British homes. Iron law of supply and demand. It's basically a law of physics.
7:14 3k or 4k a month... thats before tax... which means you get left with not too much.... 4100/month pretax is 50k/year Graduate positions do not offer that at all
@@jimmyyue238 You got that inside out. The price of gold has been under market manipulation to keep it supressed. That era is coming to an end. If you mean governments will try to fix the price of gold, that is something they try to do with everything else when inflation is out of control. There is official prices and real prices for everything sold in any economy experiencing hyperinflation. Real prices are the only ones that matter.
You mention house prices going up faster than salaries. The plot of house prices in terms of salaries over the last 200 years is really interesting - we had nearly a century where the baseline affordability of housing was a flat 4.5 years of a salary (average) from around 1910 to, as you point out, the end of the 1990s. This means that whatever happened at the end of the 90s was a much stronger effect than people often recognise.
The neo liberal economic obsession that started with thatcher. Everything has to be privatised because apparently it's better, more productive or some other fallacy.
@@David-bi6lf lmao no it was globalist driven immigration pushing up demand for housing faster than housing stock can be built. Net Immigration went from 10-50k to 100-500k after 1998 without warning. Our country has unsuccessfully been playing catch up with the influx of population since 1998 in basically every service and essential asset like housing.
@@dominicestebanrice7460 Thatcher did a lot more than just set the ball rolling. Every MP thereafter was economically right wing and just continued on with the neoliberal order.
"You may be better off becoming a plumber" I'm guessing that's why the Super Mario Brothers went into the plumbing business. They figured it had better long-term career prospects than going into the coin-counting business or joining the Koopa Troopers.
Great video, very informative, I won’t give my opinions on how things should change as there are far smarter people than me that study this area. Again great video
This is misleading. You need to compare house prices and wages in real terms (adjusted for inflation), this is a school boy error. House prices in real terms have gone no where since 2013. Wages in real terms have declined. Why? Well greedy corporations have been keeping your wages down. Why doesn't anyone talk about this? Everyone is obsessed with house prices. Oh - what about rent prices well you can firmly blame the Section 24 act by the Tories in 2016. This caused a massive exodus of landlords from the market, hence the reduction in supply, but increasing demand - thus soaring rents. It's not rocket science.
Do you have any data to backup your claim of a “massive exodus of landlords”? All of the data I have seen suggests the size of the PRS in England has risen from 10% in 2001 to around 19-20% in 2016 where it has remained. In absolute numbers, it has risen since 2016.
@@redbruce1999 OK Maybe "mass exodus" is a little exaggerated. However, Section 24 was introduced in 2016 and the PRS has not grown since then, i.e. Rental supply has not grown with demand due to an increase in population. Thus soaring rents.
@@0runny quite a difference between “mass exodus” and “hasn’t grown” though? For every one extra rental on the rental market is one less property for an owner-occupier. Even if size of the PRS were to reach 100% of all housing (from 19% now) do you imagine it would resolve the rental crisis? If not, why not?
@@redbruce1999 That''s a naive way of looking at it. Not everyone wants to buy a house. Yes it's true. Some would rather rent. With today's job insecurity people want flexibility. Everyone seems to be obsessed with house prices. It's part of the problem, but look at wages (in real terms) they have been woefully lacking in growth, way behind inflation. No one talks about this. It's a real outrage. We need to look at the cause not the symptom.
@@0runnyI 100% agree with you about average wages in the past 14 years, not keeping up with inflation, and that has an impact on affordability, and I have to agree that not enough has been said about this by the experts, governments and the media: But I also have to call out false claims put about mainly by the landlord lobby, blaming a “mass exodus of landlords” for the high average rents, when this is simply untrue. And increasing the supply of private rentals isn’t the answer as there is just one place these will come from. Yes, the private rental market forms an important part of the housing sector, where people need the flexibility, but it has been allowed too grow big over the last 20 years. The problem now is that there are many people in the private rental sector not because they want to be there (they want to buy but can’t afford to). Landlords try to gaslight the public into thinking the PRS needs to grower even bigger. But that will just result in trapping yet more people in the PRS, pushing up prices, creating a vicious cycle of more and more people forced to rent, who want to buy. If we’re not careful we will turn into a nation of renters rather than homeowners, with the taxpayer picking up the £10,000,0000,000s annual bill when the renters who can’t afford to buy eventually retire and have to claim housing benefits. A ticking time bomb for future generations.
House price rises was a deliberate Labour policy by Blair’s government. This was a major driver of the growth that fuelled their proliferate spending. Funny you show a graph of council house building with irrelevant large numbers that falls to detail the total lack of council house building under Labour. Just 450 in one year and total council houses built in their entire time in office less than the average annual council houses built during thatchers time. There was nothing wrong with selling off the council houses but the money should have been ring fenced for replacement houses. Labours failure to replace the council tax was a deliberate avoidance of policy that would provide balance to house prices because they were purposefully driving house prices up by policy. You nailed it with right to buy propping up house prices, idiotic policy increasing government risk for little reward. What we need to do is build more houses in the midlands and the north via a nationalised house building force with government run education centres turning out good quality skilled tradesmen, working on government built, well designed cities with good rail and road links to London. I am very anti Labour and generally more of a free marketer but this policy is a 10-20 year turnaround policy to stop the south getting over developed and put more of the money from house building in the midlands and the north but improve transport like to London where a great deal of the money is generated.
£3-4k Month net graduate jobs in London that's terrifying ... does show how the rest of the uk is very poor (mississippi) as i would struggle to get any where near that as an experienced (17yrs at present) composite aerospace structural engineer as a staff job which is on the jobs shortest list .. things are very weird ... good thing i sold my soul to become a freelancer :)
As a parent of three kids the best thing I ever did was to learn about Investing , taught myself , useing that and a good dose of common sense I grew a relativly small pot of money into a medium sized one and one by one , with each of them saving their own money as well , we managed to get them all into their own homes...they all had to ditch iphones etc for a while......It's not easy but it can be done....now we are grandparents
Every other article in my local rag is nimbys complaining about 5 or 10 more homes being built where they live. It is not as simple as a government issue.
@@kinggeoffrey3801 never seen any vacant new builds around me, they all get snapped up pretty quickly. Also if developers were having trouble selling their developments then prices would come down.
The government needs to start building significant amounts of social housing again. It's the only way the issue is going to start getting addressed. Just reforming planning regulation so that private companies hopefully build substantially more homes isn't going to cut it.
@@michaele8896@michaele8896 Because we aren't a communist state fortunately, chairman Mao didn't approve of who owned property also and looks how that turned out. And the UK wouldn't survive without outside investment because we don't produce anything and the government focused on financial services instead of producing. People around the world invest money into the UK housing market because it's stable, if we make it unstable they will go elsewhere, it's the rich who pay for the NHS not Bob the plumber down the road on 40k a year. It's also worth noting the international and UK investors generally are buying blocks and developments, they aren't buying 2 bed terrace houses on council estates or competing with first time buyers.
Housing is, in depth, inferior in size and superior in expense in the UK than pretty well anywhere else, for everyone in the UK.The average home sizes in the Netherlands, France, Germany and Spain come well above the UK average. But it’s not just size where these nations are beating the UK when it comes to bricks and mortar. The average price of a home in the UK is currently £351 per square foot, far higher than the average price of property in Germany (£236), Canada (£218), France (£212), Australia (£208), Spain (£141) and the United States (£126).
Yeah but a lot of properties in Europe are old and need modernization. I live in France I see a lot of properties and buildings with literal black mold on their exterior. Properties in France may be cheaper but that's because most of them are shit
@@Vagabondonabike That may be France but not generally elsewhere. Germany: Known for its robust construction standards and emphasis on energy efficiency. No pre war housing in the cities due to RAF and USAF demolition. Switzerland: Renowned for its high-quality construction, beautiful landscapes, and attention to detail. Scandinavian countries (Sweden, Norway, Denmark): These nations prioritize sustainable living, energy efficiency, and modern design. Austria: Offers a blend of traditional charm and modern comfort. Other Notable Countries Japan: Famous for its innovative housing solutions, earthquake resistance, and efficient use of space. Australia: Offers a mix of modern and traditional housing styles, with a focus on outdoor living. Canada: Known for its spacious homes, high quality of life, and energy efficiency.
Glad you are not preaching that you must go to University, to your students. When, I went it was all paid for by the state. But now, young people have to work out if it is worth the debt mountain it creates. Of course, many are too young to truly do that and I'm not sure if all schools advise them well.
Only in Britain do we think not being educated to a university standard is a good thing. Immigrants on the other hand hold education in very high regard
@@paulbo9033 Tejvan, never said that University, education was not a good thing. He said that he told his students that they may have been better becoming a plumber rather than going to University. Cost vs benefit. My Father, was a plumber and his education (apprenticeship) was over several years and gave him a good living. Maybe immigrants do value education. But most, who are arriving do not have an education and are unskilled. Of course, many do come specifically to get that education. They may not plan to stay.
@@philipjamesparsons we should raise our sights higher. Nothing wrong with plumbers but we've moved up the economic value chain. Let immigrants do this job and we focus on the high end, high value add jobs that require sophisticated engineering not breaking up turds in toilets. In short we don't need more plumbers we have Polish people that can do it. What we need are people in roles where there is no one else to do it, strategically important sectors that require a very high degree of specialisation like advanced chip manufacturing. There are many many sectors like this that we need developing in the UK.
@@paulbo9033Well, I don't disagree. But we also need to build houses and that is partly why house prices are unaffordable. We are in a desperate shortage of skilled trades. Dad, never broke up turds, he was involved in building houses and factories. He trained for years to do this. Finding good apprentices was not easy. Most of the Poles have gone home and the immigrants may not be suitable for a long apprenticeship. This is why trades people are often better paid than white collar workers.
People who don't think this is an issue, when the birthrates drop even more than they have and we have too many old people and no young workers...yeah that's going to be very bad for us.
What benefit to the tax payer who buys a private home is social housing? When you say ‘free’ or ‘subsidised’ switch the word in your head each time to taxpayer funded.
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This is what you call an abject failure of government. Kiss goodbye to any productivity improvements while this demotivating, unsustainable situation continues.
Soros Schwab hand rubbing intensifies
Totally deliberate
Root cause....UK massively over-populated from 1997 when Blair came in. It was deliberate.
@user-yi6ui6pn4i that's the racist argument, that is false
We don't make anything....
And people wonder why young people aren't having children. Talk to childless people in their late 20s and 30s. A lot of them want children but can barely survive on a full time salary. Even with two people working full time it's never enough to more than just survive.
This is the story of life in America as well. A lot of us wanted to raise families but the jobs we were promised didn't materialize upon graduation and then the 08 crash happened. It's a cruel joke that was played on two generations now.
So true ...now add the prospect of AI being able to do many of the jobs in the future people will be even less motivated to have children
@@Tommyleini By design
Your 💯 as this part of the plan of the millionaires and billionaires classes who do not want the poor and working class to bred child sounds evil and it someways it is as with University fees going up even further puts a nail in the coffin ⚰️ in many young people having children so sad..
It feels as if the social contract between the young and old has been broken…
The young and government you mean. Most older people have children/grandchildren they care about.
Not sure about how many % is true, we do not have any studies on it. But it did make it looks like the youngs think the older generation stole their opportunities.
@eruketo3969 political choices stole opportunities from the kids. The older generations just tried to muddle through- the boomers didn't know they had the best conditions, they would have expected continued improvements for future generations.
Wars in the middle east/mass migration/QE/foreign aid/selling off critial infrastructure to other countries to profit off......too many things to list.
@@mrmeldrew693 not care enough to stop with their NIMBYism by the look of it...
@@mikez2779 700,000+ net a year should be addressed before claiming NIMBYism.
I saw a programme worst house on the street and a young couple bought a house in W Bridgeford Nottingham, a complete dump and only a terrace house for £270K. 30 years ago that would have been £20k tops. They spend £90k on it (the programme didn't say where they got this money) and the house was revalued at £480k. On what planet can a young couple afford a £480k terrace house? My first 3 bed terrace house was £27k in 1987 and I added a loft conversion to make 4 bedrooms.I sold it for £35k in 1995.
When you pump a dead financial system with liquidity in 2008/9 onwards, and then in 2020, that liquidity has to find a home, asset prices will inflate as they have and continue to. The problem is the bubble needs to keep being pumped up, liquidity is draining rapidly, we're gonna need one hell of a crisis to justify the next cycle of money printing, some are predicting late autumn this year. Hold on it's gonna be one hell of a ride.
@@cleanhit777 just out of interest, what is the prediction for late autumn ? Nearly eveyone I know is financed up to their eyeballs right now ! people are paying silly money for cars they probably cant afford and mortgage rate increases have crippled spending habbits of old.
@@TheEnduringCitizen it's quite technical, but all the indicators are that financial conditions in the US are coming together to cause a crash, probably this autumn. The fed is going to have to step in, or it's curtains. The problem is that there's a chance they won't be able to save the day, or that it will only be temporary. Just listening to this video tells you the system is broken and that a total reset of the financial system is inevitable now, whether or not we'll like what we get, we'll all find out very soon. If you want to get into the technical side I'd recommend George Gammon ( rebel capitalist) he is very good
Get a better job?.....heard that advice somewhere.....🤔
@@eddieharris6004even as an engineer you don't get paid more than £40k , a mid grade doctor doesn't get paid more than £50k. If a doctor on a permanent contract can't afford a house who can ?
All well and good having a job but it's no use if you're the working poor, which people who aren't homeowners are these days.
They're in effect serfs
People with no assets are robbed of their purchasing power as a result of money printing and increased money supply.
Unfortunately, the same problem across almost every industrial country on the planet.
I can verify this is true in America. There's not much optimism here.
Not in Russia. Housing is relatively expensive in Moscow but it’s absolutely not a reason to not get children.
I appreciate the video, very insightful. Regarding your optimistic comments in the final minute, I'm not convinced. Young people might have opportunities that previous generations didn't have. But the cost of such opportunities is so high that unless you are from a wealthy family, it doesn't really make any difference.
50% going to uni. What a waste of time and money.
Not a waste of time depending on the career you want. But even then it's still harder nowadays even if you've had higher education.
Trades..a better way to go!
@@gisgoss Sure, uni is very important for some careers
@@gisgoss where else would i be able to pursue a career in virtue signalling 😂
@@jamble7k not sure I quite understand what you're referring to. Regardless there are some useless degrees and some probably would benefit from not going to university. A degree in gender studies does not hold the same value as one in Law or Medicine etc.
But if you really want one in virtue signalling I'm sure there's one out there for you aha.
Another factor you've missed is poor job security. Most young people will find themselves in occupations where they're on temporary and zero hours contracts. Even if they're in a graduate job. You can't commit to a mortgage in those situations. I was resentful when I was in the workplace where I got layed off when I knew I was more productive than other workers who were on more secure contracts. Purely because of the timing that they entered their occupation. The solution is to reform contract law, but the unions would be dead against that.
"Is overgloom exaggerated?" No, it's underappreciated. The key thing is not well understood by most people is the percent of their earnings that goes to all sorts of pockets just to pay for the basic access to life in the UK.
I cant believe that when interest rates were low for years that the Government didn't set up a scheme to build affordable houses in bulk. The could have borrowed the money on very low rates and the rents on the properties would certainly have covered the interest payments. The capitol could have been written off over say 50 years and the Country would have ended up with millions of extra homes. What ever is done it is impossible to build enough to supply the vast numbers of immigrants adding to the population every month.
You hit the nail right on the head there, it had to have been a deliberate plan as a blind man on a galloping horse could see that was the logical and ethical course of action. They chose to inflate asset prices rather than help the electorate and enrich the nation as a whole.
@@cleanhit777you will own nothing and be happy, the evil must be in plain sight
My understanding is that a sizeable proportion of MPs at this time held property portfolios so there could have been a conflict of interests. Added to this, there is also a significant influence from rich donors who again had their own agendas. Personally I think that politics needs to be cleaned up but I seem to be alone here.
@@lonevoice you're not alone, this past four and a half years we've been learning a lot of new things, knowledge is power
@@garyb455 the Conservatives hate the concept of social housing, and ultimately any social housing would be built by local authorities who have barely got the funding to keep essential services running. Add to that any new build housing being stuck on the planning system for years whilst every NIMBY has there say the model for low cost housing falls apart.
According to a report from Nationwide, real average house prices are the same as they were in 2004- that’s 20 years ago. So the problem is not house prices , rather that real wages have been in decline. Add the cost of living crisis of recent years, rises in general taxation and you can explain why house prices seem expensive. Lots of manufacturing jobs have shifted into ASIA as the production of goods was outsourced there. While this benefited the public through lower consumer prices, it pushed UK wages down while at the same time it produced extraordinary profits for the big corporations. These profits have been mainly recycled into financial assets and that that in turn has led to increased amounts of wealth concentration at the top. I do not believe that the housing market has failed new generations, I think is the economy as a whole that has failed them.
I am a millennial and own my own home, as well as an investment property overseas.
My 3 keys to success:
1) Inherit s 6 figure sum
2) Be in the top 1% of income
3) Marry someone with 1+2 themselves
If you don’t do those three you’ve only got yourself to blame /s
we don't all have the ability to inherit lots of money, i didn't and many others don't. How exactly is that our fault though?
@@jayc342009no worries the poor will conquer the world so you can imagine the bright future the rich individuals will have by getting beaten on the way, unless people completely stop having children on this underworld predatory heaven called Earth
@@jayc342009 I think that user was sarcastic.
@@lightweightben I'm a millennial and I'm a self made decamillionaire and oven over 150 units. I've never inherited a penny. I do agree with you in that being on the property ladder or not being on the property ladder is a choice for 95% of the adult population.
@@jayc342009They were being sarcastic...
A price to income ratio of 7.6 is pretty sweet. It's closer to 11 in the Netherlands. The average house is like 480K Euros these days. 300K Euros would get you a dump.
Maar echt, ik zoek naar een huis in Utrecht. 400k voor 45m2😢
If a stake in society has been put out of reach, what incentive do you have to contribute towards it? The answer is you have no incentive, nor do you have any incentive to contribute towards the next generation of tax payers. The data indicates this is the case, with a substantial increase in the number of people who are economically inactive and a declining birth rate.
Yup, why play the game if you know you can't win?
@@shanefrancis651 not even win, but make a start.
@@shanefrancis651 That's what I always say when my family calls me downstairs for a game of Monopoly.
This is a great point and perfectly underscores why you tend to hear all the " End capitalism" rhetoric on campuses and amongst young people these days. Obviously politicization, (particularly that of the left) has always been prevalent at universities, but something has genuinely changed for the reasons you described.
The moral failure of the system is pushing more and more young people towards extreme forms of groupthink and at times verging on outright Communist talking points.
I think the point itself is rubbish and an example of an over corrective attitude which is sadly omnipresent in British politics these days.
I think the conversation needs to move towards efficiency in the system. I also think that for too long the landlord types have gotten away with absolute murder when it comes to making crude arguments based solely on market value.
The unwillingness to ever consider discussing housing as a moral field as well as a financial one speaks volumes.
Additionally, The level of in your face mockery the young people have had to face throughout this crisis has been astonishing.
There is, sadly, a spoilt greedy Karen class in our society that in particular loves to tell people how there are no issues with the system whatsoever, while owning multiple homes and charging extortionate rents.
The denial is the worst part, there are so many middle-aged types who the minute they hear young people complain about anything brand them as lazy free loaders, there are millions of young people across Europe working more hours than any generation since working standards and labour movements first began.
Either we reject the Karen and publicly shame them which is the only language they will ever understand or we face a slide into a dickensian Britain. A Britain where destitution is the norm.
Perfectly valid point. If a young person cant get onto the lowest rung of the housing ladder and raise a family then who can blame them for spending on foreign holidays, Taylor Swift concerts or the proverbial avocado toast.
The worst thing could happen for young people is fight for first house which cost so much and has low quality compare to other country's standards.
private rental sector was unprepared?
Oh, they were fully prepared to profiteer out of this situation as much as they possibly could...
‘Struggling to keep up’ with immigration levels.
This guy blames landlords leaving the private rental market (due to changes in tax rules) for increasing average rents, but fails to backup this claim with any graphic. Why?
The size of the PRS (private rental sector) in England has grown in size from 10% of all housing in 2001 to 19-20% of housing in 2016, where it has remain static at 19%.
He seems to have swallowed the propaganda put about by the landlord industry that landlords are “leaving in their droves”, and this is driving up rental prices. When this is completely untrue.
The reality is that 20% of housing are out of the market (to buy) and this has reduced availability and helped to push up prices (to buy).
And when many of these renters reach retirement without being able to buy, who will pay to keep them housed? Taxpayers will face a hefty bill.
Also, there is no mention of the insecurity faced by private renters (10 million people) in England and how no fault evictions are the biggest cause of homelessness in London.
And this guy is implying that the private rental sector needs to grow further?! How big would be optimal for you? 25% or 30% of all housing? Or 50%?
Madness economics.
Im 28, and still living with my parents. I've been house searching for more than a year, and just seems so exhausting, as house prices are too much. I need to have a salary of 40K or more around Manchester.
If you weren’t on the ladder by 2000, you’d missed the boat. Prices doubled literally overnight. Now a pipe dream.
That chart at the 5 minute mark says it all really......from a rough average of 150,000 council houses per year to zero in two decades.....from 3000 brand NEW constructions entering the public rental space each WEEK for decades to it becoming entirely privatized......it's taken some time but the mess is now on display for all to see and it will require a multi-generational reset to fix. Ideology gone berserk with little attention paid to consequences and systemic effects. And then there's turbo-immigration to add fuel to the fire.I wonder how Rory Stewart & Alistair Campbell over at the "Rest Is Politics" would explain (spin) this? Brilliant content BTW....but don't feel compelled to end on a "positive note".....it's not your fault UK is such a mess......objectively revealing the grim truth in charts and without an obvious axe to grind is is a good deed....you're the UK's equivalent of Scott Galloway (author of the brilliant book "Adrift").
Tejvan's jokes aren't as smutty though.
Don’t blame a lack of socialism because it’s socialism that got us here. It always is.
Town and Country planning act prevents people from building and has done nothing to better building quality 😂
The British fascination of keeping up with the Jones’, or rather, holding back the Jones’ if you can’t keep up is what has created this.
@@josephedlin2172 "The British fascination of keeping up with the Jones’, or rather, holding back the Jones’ if you can’t keep up is what has created this"
literally this! and the boomers desire to sweat their kids for additional income via buy to lets and taxing workers to pay for the things they want - their parents never did that to them but they are very effective at doing that to us.
@@josephedlin2172 how is it socialism that got us here? Thatcher started selling off the social housing - she was by no means a socialist! The lack of new affordable housing over the last fifteen years happened under tory governments, who - again - are as far from socialism as you can get
The government built council houses to support people coming back from the war.
This was a crutch that was used far too long.
We let people have free housing at the expense of working people for too long.
I'm happy that we no longer subsidise as many people in houses paid for by the rest of us. You are your responsibility.
Council housing that does exist should be means tested so that those who are really in need get those houses. When this happens I'd support building more council houses, but I wager my own house that we won't need as many as you think to support the needy.
What goes up eventually comes down, sad thing is at that low price people wouldn't able to afford then.😢
They would if they had real assets outside the fiat system
Agree with everything you said. Want to emphasise your point on young people getting into a trade (plumber, electrician, carpenter, builder, etc) as a great or even better alternative than university for a lot of people.
People should invest in crypto and take more risks to get out of there situation
I spent 10 years at uni and have three degrees including a PhD and have what is considered to be a good office based job. All my friends / family who do a trade job earn more than I do. :D
Hi get a trade I've been in the building industry for thirty years and have seen it go from the wages being that bad that you got paid more for staking shelf's . but because they have not had any apprentices for about ten+years there's a big shortage of trades people in this country. As we need to build so many houses and don't have the people to build them trades are getting paid so highly for their skills. The only problem is this generation because of technology are not used to hard work and one thing the building industry is is hard work . thanks John.
@@JohnBowman-ut4dztechnology is hard work, most people cannot understand how computers are programmed
@@mariog1051 hi thanks for your reply the point I was making is because we are now in a computer age all young people are addicted to phones .I do understand that you have to more with technology and in a lot of cases technology has been a great thing for the modern world. But the building industry has not changed that much it's still a very physically demanding job and the younger generation would rather do a computer related jobs because they are a lot less physically demanding (I do understand that you can have mentally demanding jobs which are hard) this means we are going to struggle to build the House's we need and the experience trades are now getting old with know one to replace them thanks John.
Maths grad here on 40k working as a research and data analyst in London. I'm just going to leave the UK next year, there is 0 chance of buying a house here and I'm just tired of the private rental sector to be frank.
Do you have a country in particular in mind? I too planning to leave but don't know where
London is the issue. Get a job where you can work remotely as soon as you can and move somewhere with cheaper houses. It's the only hope for most of us to have a house paid off by retirement age.
move somewhere cheaper than London?
I was making more than 3x what you get and it wasn't really worth it in London.
I know the house market is hella unaffordable. I'm suprised to hear that earning 40k is still not enough to afford buying a house in the UK. Yikes
I’m closing in on my retirement and I’d like to move from Newry to a warmer climate, but the prices on homes are stupidly ridiculous and Mortgage prices has been skyrocketing on a roll(currently over 5%) do I just invest my spare cash into stock and wait for a housing crash or should I go ahead to buy a home anyways?
Considering the present situation, diversifying by shifting investments from real estate to financial markets or gold is recommended, despite potential future home price drops. Given prevailing mortgage rates and economic uncertainty, this move is prudent, particularly due to stricter mortgage regulations. Seeking advice from a knowledgeable independent financial advisor is advisable for those seeking guidance.
This is precisely why I like having a portfolio coach guide my day-to-day market decisions: with their extensive knowledge of going long and short at the same time, using risk for its asymmetrical upside and laying it off as a hedge against the inevitable downward turns, their skillset makes it nearly impossible for them to underperform. I've been utilizing a portfolio coach for more than two years, and I've made over £800,000.
@@joshbarney114 I appreciate the implementation of ideas and strategies that result to unmeasurable progress. Being heavily liquid, I'd rather not reinvent the wheel, thus the search for a reputable advisor, mind sharing info of this person guiding you please?
Finding financial advisors like Marisa Breton Dollard who can assist you on things like investing, insurance, making sure retirement is well funded, going over tax benefits, ways to have a volatility buffer for investment risk would be a very creative option. There will be difficult times ahead, and prudent personal money management will be essential to navigating them.
Thank you for this tip , I must say Marisa, appears to be quite knowledgeable. After coming across her webpage, I thoroughly went through her resume, and I must say, it was quite impressive. I reached out to her, and I have booked a session with her.
My wife is a landlord, her rental property rent is £420 per month, £100 lower than comparable properties in the UK. Her tenant is elderly and my wife wants her tenant to feel secure in her home, my wife is aware that her tenant cannot afford the average rent in the area. She wants rent control, and commented on such on the Conservative home website, her comment was heavily criticised. How can people afford such outrageous rents? Before Reagannomics and thatcherism, banks lent only on one salary for a mortgage, after deregulation of the banks, they lent based on two salaries, house prices have soared. And of course thatcherism reduced social housing. All of these factors have led to misery for our young.
Eerily similar to how the Canadian government abandoned building social housing in the 1980s as well. Painfully ironic they stopped at a point in history where we need it more than ever.
I thought house prices will crash as people default on mortgages. Where’s the house price reduction?
@Lookup2Wakeupcorrect. The bank bailout meant there was no crash, when there really should have been. QE and help to buy have then pushed asset prices up.
papers like the guardian have been talking about a crash my whole life - the politicians won’t let the system collapse; it’s the only thing standing between them and anarchy across the country!
It's inevitable. It jsut going to be 20 times stronger
Keep up demand? People are not going anywhere, there is no incentive for real estate developers to meet demand when it benefits them to keep demand high. Consistently.
Same in France, capitalism is really at its late stage. A Great reset is more than necessary.
I'd like to see this for Americans. I bet it's worse because we don't have social housing or council flats like you blokes do in the UK.
It's grim up north... and the south is even grimmer
But at least the weather down south is slightly less grim.
Whilst overall net migration and a general shortage of housing is a factor, you miss the main point of why housing in the UK is so expensive. It's not only a bit beyond peoples means, but it's an order of magnitude over what they can afford.
Why is that when the largest group of potential buyers are in the working population and they can't afford to buy or rent?
I'm going to give you a thumbs down for your analysis, or should I say observations, and I'll tell you why:
We have a two tier tax system that provides a raft of tax deductions for rental property ownership expenses. More so if rental properties are put under a company umbrella. This provides even more benefits including freedom from stamp duty when buying an 'uninhabitable' property to relief from capital gains tax when rolling the proceeds of a sale into another project or property purchase.
The tax system that benefits rental property owners is directly inflating house prices to sums beyond ordinary earnings and provides those rental owners with tax derived profits that ae not open to people on PAYE.
Consequently they buy up more properties thus further inflating the market. The reason why affordability has now dipped below x9 average wages is because mortgage interest tax relief has been withdrawn from buy to let mortgages (George Osbourne), but there is still plenty to made leaving a property purchase beyond the means of ordinary buyers.
You also have to remember that in general migrants are not buying properties, they are renting. Those rents and the rents of the unemployed and working poor are supported by Government housing benefit payments. The increasing demand for rented homes means that landlords already benefiting from significant tax breaks on their investments, can put up the rent without market resistance.
In many inner city areas where the poorest in society live the extra rent demands are paid with housing benefit from the public purse, which is why social security payments have gone up.
Rental owners are benefiting from two sides of the tax and benefits system.
People on PAYE are quite literally subsidising wealthy property owners, and the tax burden is going up as a result whilst private home ownership goes down, alongside ever increasing burdens on the state.
Please provide a better analysis, you don't need a PhD to work it out!
Spot on!
The private rental sector has been allowed to grow too big over the last 20 years, from 10% of all housing in 2001 to 19% now.
If we’re not careful we are going to turn into a nation of renters rather than homeowners.
…And taxpayers are going to be paying £10,000,0000,000s more annually when the renters, who can’t afford to buy,
eventually retire and have to depend on housing benefits.
A ticking time bomb for future generations.
Low interest rates are not the real problem, the issue is Supply and Demand. If supply is lower than demand price rise, it's that simple. House builders know this and so they starve the supply, holding onto land bought cheap from councils and leaving it undeveloped. Imagine the boom to the economy and home ownership if they built on all the land they own and have planning permission for.
UK is so messed up economically. But even pre-Brexit, young people were not leaving in droves to try and earn a living elsewhere. I suppose employment is still pretty high. Now compare this to many foreigners I've met in the EU hailing from Italy, Egypt. Some skilled, some unskilled. We really need to boot out globalism. Politicians are complicit but globalism is at the root of nearly all our problems.
Egypt?
I left the UK in 1996. Boarded up factories, joke courses at college, £1 an hour jobs and a never ending dole queue just wasn't worth it.
Worst decision I made? Coming back to the UK 6 years later!
WE ALL live in a globalised economy. There is no getting away from this unless you feel the North Korean model makes a good choice. Young people are not leaving in droves because it is very difficult for young people to set up a life abroad anymore, thanks to Brexit. I do sometimes wonder if the idea behind Brexit wasn't to keep immigrants out, it was to trap the British on this island.
2 unforeseen events 08 crisis and covid have completely wiped out UKs productivity, look at the flattening of 08 crisis, so id expect even worse productivity for the next 10 years after covid, if any at all. UK is GG, thanks for playing, it was fun.
Since 1997, housing prices have risen at twice the pace of incomes......hmmmm, something must have happened.
Blair. Borders.
The left will blame business owners lol. Like the millions of extra people on benefits don’t matter at all.
@capri2673 Blair: The most cynical politician of all times and peoples
Also 2008 collapse and money printing plus low interest rates means more money is chasing what assets are left.
If one bank will lend you 100k but my bank will only lend me 80k you will purchase the asset not me and so the escalation of asset prices continues.
It’s been a perfect storm!
@capri2673 I think Keir Stalin is challenging him for that position now.
Lots of houses being built but too expensive!!!...Croydon Council have bought up houses in nice areas on the south coast plus put people who would never be able to afford them in them.These people are completely terrorizing the area in their hooddies
Eldest daughter has already left this prison island. Eldest lad doing his apprenticeship, but working full time through the summer, then he'll be leaving too. Possibly joining my daughter in South East Asia, or maybe finding somewhere different for himself. I'm hoping to leave as soon as I turn 46 (that's 30 years I've put into the state pension), so just 6 more months of this draconian hellhole to go.
Where? I don't see many good options.
u need 35 for full pension
@@jonathanjonathan7386 no way I'm sticking this open prison for another 5 years!
@@platinum11110 Thailand, South Korea, Guyana, Slovenia, Paraguay...there's a few. It's just having the gumption to go and do it. My pal has gone to Guatemala. He's in his mid thirties, has a bog standard job working 3 to 4 days a week and has no plans to return to the UK.
@@jonathanjonathan7386 I did reply but surprise surprise my comment was deleted! So I'd love to tell you my thoughts on having to spend another 5 years in this hole, but sadly I can't.
One of the biggest scandals of our time. A generation and more will be lost and for those unfortunate enough to have no where to go, they will be on the streets.
A low percentage of young people going into creating and building professions (builders, carpenters, etc) leads to fewer physical assets available to more people in the long term. Houses have a 'birth rate' too
Hi i have dissertation on same topic. What are the solutions and can manufacturing of 3d printing of houses be a solution?
Compare net immigration with houses built yearly and you have your answer.
Simple supply and demand.
Your voice is soothing.
Immigration, central bank money printing.
Yep
No, Right-To -buy ruined this country.
Should stop outsourcing for clearance of the Bills.
Its common across the globe
Because most modern countries adopted neoliberalism. Nevertheless, its still a problem that each affected nation needs to correct.
The government are not addressing this, they’re more interesting in ensuring that people who want to identify as Batman are given the right to do so.
and this is why more and more young people will leave the country.
Quantitative easing via insane levels of immigration
lets understand something, we are at a level where high quality houses can be made on a production line and delivered on a flat bed to a site where the base is ready and all services can be hocked up in just a few hours .
the problem is is that they would be very low cost , the powers that be want you in debt struggling to pay for your 250.000 house for 35 years with money the bank spun out of thin air .
a house that would drop in value by half if low cost housing was implemented by government .
so as pepole with money invested in property and rubbing shoulders with bankers and other pepole who have large numbers of property in there portfolio.they done want a solution to a problem that effects us plebs and benefits them massively.
38yr old living with family paying half of what I would in rent for an apartment. US based no hope for a house unless I go to Japan and buy an abandoned home.
Arizona?Colorado?
Had the gentleman said there are far too many people on these islands , it would sum up a lot of what he said , very good ,though , it was .
The market is heavily taxed and constrained by the State... real free market lowers the price of everything by increasing supply.
Not saying everyone should go to uni, but the reality of the current student loans system is a graduate tax. Noneed to pay it til you reach a certain income threshold. Then it's 9% of everything over that income. For a good degree I don't think it's a bad deal, especially with a year in industry option.
Student debt is really just a new tax bracket. The absolute dent amounts dont matter for most students, it'll be written off after 30 years.
And added to the national debt.
The minimum wage is almost the threshold for the plan 1 student loan.
The minimum wage is only £3,000 behind the plan 2 repayment threshold.
It’s a penalising tax bracket - and when it never goes away you will start to really resent it
when you realise you paid more for 3yrs at uni than you did into your pension you’ll really resent it.
There is HUGE profit being made from these loan books due to ridiculous interest rates!
@@TobotronPrime Spot on. Its predatory lending to young people who won't have the concept of compound interest for another decade or so, by which point it's too late. This country truly is a pit of corruption today.
@intent7705 It's definitely more than that. I'm on plan 2 threshold and previously earning more than the current minimum wage on past jobs.
In my current role, I'm now repaying that debt since its past the threshold. You have to be earning more than 27/28k a year to start paying back student loans on plan 2.
Australia doesnt have long term rental private 1year lease thats it.
Australia's even more fucked than uk for rentals and housing trust me. Everywhere is going to be as bad as anywhere else in the west.
This rental issue can be resolved at any point by phasing in ever increasing standards. The whole sector is ridiculous, it's made worse by the idiocy of things like trying to get rid of no fault evictions rather than solving it. Out of all the issues we have this is one of the easier ones to fix.
Can elaborate on why trying to ban no fault evictions was/is idiocy?
@@redbruce1999 let's ask a different question. Are people suggesting that if you invest in property you can not exit at your choosing? Because unless that is catered for in another way it's a drastic change. What exactly will be the method a landlord can use when they want to exit? Can it be blocked? Blocked for how long? What about that delay to market impacting return?
@@3d1e00answering a question with a question?
The Renters Reform Bill (for example) specifically included provisions for A) LLs wanting to sell their property and B) Wanting to move into their own property.
So to answer your question, even after banning no fault evictions (RRB), there would be nothing to prevent LLs choosing to sell their property.
So you still haven’t explained why banning no fault evictions would be idiocy.
Also, a ban on no fault evictions has been on the cards since 2017, so it shouldn’t come as much of a surprise to any LL.
The increase in demand has surely nothing to do with the arrival of the boat people.
Am I gonna get arrested now?
No because they are going into the hotels that people can't afford. Have you seen how much a premier inn costs these days £80 a night! No offence to premier inn but its the same with Holiday Inn and Hampton by Hilton... Imagine 3 days in Blackpool for £240 lol no thanks. Give it to the migrants.
@@Dr23rippa not really, a quick googling will show the net immigration to the UK EVERY YEAR is close to the total number of hotel rooms in the country.
@@PeterT-i1w Yes ok that's true one overall statistic from ONS however we know that each individual isn't going to have their own room. There could be 5 people to one room in most cases or 3 in one room. Also take into account not every migrant will be in a hotel, some might actually have friends or family to stay with. There are tons of pubs in the country that have been converted into flats or HMO's also let's not forget prison cells. I'm sure there are a fair share in there too. To imply that each migrant would have one hotel room to reach your equation of number or migrants = number of hotels is absurd.
@@Dr23rippa that number of immigrants flowing in each year, and if you put 3 migrants into each hotel room, then you run out hotels in 3 years.
I'm not sure why do you disagree that millions of people flowing in over the years will create housing shortage.
Even if a new home would be built for each immigrant, where does it all end?
Called Diachronic competition.previous generations extracted ..used..resources. leaving very little to their progeny.
Carrying capacity deficits,in a world of 8100 milion
Labour needs to keep this in mind. Young people who may inherit to help get roof over their head
Goverment cannot do much but they will not family help
This video is so far wide of the mark. Very disappointed. Housing is not an economics 101 subject of supply and demand with a few microeconomic variables. This is about the land, fixed in time and space, completely unique, as Churchill said (paraphrased), 'the mother of all monopolies'. No mention of Buy-To-Let mortgages in 1997, nothing about the 1988 end of rent control and the consequences, or even how, in 1910, 10% of the population owned 90% of the property (i.e. 90% rented off the Private Rental Sector PRS) and by the 1970s that had dropped to 93% of people not renting from the PRS leaving only 7% PRS that is a crash of over 80%! How and why did that happen, and wasn't there a cry in the 1970s for more PRS? Well, no, just more houses to buy or social rented housing. We now have 21% PRS if we reduce the back to 7%, that over 4 million properties either back on the market for sale or for local authorities to buy and rent at social rates. In the 1950s-60s, the land value of a house (the other being the build value) was between 3-15%. Now, on average, 70%! For what? A commodity via initiated debt markets via Big Bang (1986) de-regulation. It really doesn't have to be this way.
How did this happen between 1915-1988? Rent controls. This forced governments into building social housing as there was no yield value in the PRS, killing land values, meaning the government could buy land (ref 1947 Housing Act), and house builders just got profit from building, not land value uplift. Also, there was no future value in land due to taxation on uplift. This was no utopia, as a later act in 1956 led to slum rentals so landlords could kick tenants out and get an uplift, which was repealed by the 1965 act. It was a constant battle, but by the 1970s, the UK showed signs of a housing surplus!
None of this came without a fight; it took WW1 for a strike by the armaments industry, which started in Glasgow and spread throughout the country. The government either gave in to the landlords and forced tenants to pay or put a rent Freeze in place during the war (backdated to 1914). They chose the latter. Rentier landlords gain rent from extracting an asset from the market and causing scarcity by that extraction, thus putting up rents. This is not about 'passive income'; it's exploiting working people's potential to own a home.
This is just the tip of the iceberg or one of many elephants in the room.
Finally, this video concludes that this will continue if the graph shows a downward trend. Proof? Bond yields go down as interest rates go down, and land again becomes attractive for yield, i.e., 2010-2019. When you hold no debt and debt is cheap, then to create scarcity via cheap loans on a fixed asset that cannot be made is a no-brainer unless that asset is taxed (via Henry George's idea of Land Value Tax LVT 1890 that even Churchill, Keynes and even Hayek agreed on) or has Rent Control placed upon it. Decommodify land so that no rentier landlord (who does no productive work) can no longer own it. We all should work and graft; passive income in this context is theft. Thus, the Game of Monopoly (called initially The Landlords Game) is based on Henry George's LVT to show how landlordism works and is always ultimately destructive for the majority.
Wow, that’s a lot of housing knowledge, you seem to be a real expert on housing policy for the last 100 years.
I think you have a bit more knowledge than the producer or this video, who is obviously no housing expert.
I also called him out on apparently blaming a reduction in the size of the PRS (for increasing average rents) but failed to backup this claim with any graphic.
Fuelled by BTL, the size of the PRS increased from 10% of all housing in 2001 to 19% now.
How high does he think it should go 25%, 30%, 50%?
Madness.
@@redbruce1999@redbruce1999 The last comment is spot on; the previous time it reached 90% (1910), then war and revolution. Just saying.
Thanks. I've been at this for at least seven years and am finishing my master's dissertation on the subject. I may progress further, but I often end up spending too much time on poorly argued RUclips videos based on econ 101 when the issue of land cannot be applied (land is a fixed asset in time, space, and place and at the core of all governmental law, i.e., the protection of land rights).
As for the past 100 years, it is again frustrating when empirically we can see what happens when Rent Controls have been introduced and also the consequences when they are relinquished. I.e. improved national equality with RC and inequality without because of the nature of land as a commodity.
Books;
Out of the many I've read, one of the most powerful concerning the bigger picture is Mariano Mazzucato's 'The Value of Everything' a very accessible read with loads of jaw-dropping facts; one of my favourites is the evaluation of GPD; if you own your house you rent it to yourself creating GDP value! Bonkers. Only recently have rentier landlord incomes been included in GDP (they shouldn't because they are renting an asset and extracting an income for someone else's productive labour; they are not creating new money or a 'product').
A more recent book by David Madden 'In Defence of Housing, and an infuriating read 'Who Owns England' by Guy Shrubsole, a very similar style to Danny Dorling (All That is Solid) and my tutor Anna Minton (Ground Control and Big Capital, both really informative if distressing reads)
Piketty's Capital of the 21st Century and Chapter 10 onwards of 'Capital and Ideology'. Brett Christophers, 'Rentier Capitalism'.
Marx, Das Kapital Vol 1 just read where unfettered capitalism ends up for the bottom 90% who died at an average age of 42, and some places were below 20! People worked to their early death. That is the end game of unregulated capitalism; if regulated with a safety net of welfarism (including health, education and retirement care), you can have the best of both worlds, but always in constant flux (which should be in a healthy democracy) as each generation wrestles with the consequences of the former, as Keynes concluded, in economics, no one can predict the future with modelling human variables let alone planetary ones thus the Black Swan Event. So his theory of Uncertainty is still the best; it predicts the very near future and government intervention when those pesky Black Swans arrive (google it if you have time).
Conclusion;
This subject is not for the faint-hearted and is way more complex than the ' well, build more houses' crowd.
They never reply or engage as they quickly move on to their next clickbait video with assumptions and half-truths from the mouths of others, such as other RUclipsrs (it reminds me of the faults of AI: You only get spat out what has been retrieved from the internet; what could possibly go wrong)! The only way is to graft with many books, papers, and trusted news articles with a record of citations to check.
Then, walk and connect the dots, listen to people from all walks of life, further ponder, look at other countries (in my case, the Nordics), and try to find a base to work from that has good outcomes for the majority.
And thanks for your kind comments!
Ref; housingresearch (dot)solutions
Thank you for all this information. It is indeed one of many elephants in the room today.
Declining UK birth rates are completely linked to the fall in living standards, mass immigration and rises in house prices. This will continue to get worse as long as people continue to vote labour, conservatives or any other parties that will continue these patterns.
This goes back to the entire European concept of "Land Ownership" and applies to all countries conquered by Europeans.
But also why isn't accounting/finance mandatory in high schools when Adam Smith wrote "read, write and account" multiple times in Wealth of Nations. The book has been free on the Internet since 2001. Anybody can check. He used the word 'education' Eighty Times though 50% of Brits were illiterate in 1776.
A 22% rise in rents in the past 3 years. In those years ( and before of course ) MASSIVE influx of LEGAL immigration, coupled with a low rate of new housing being built. Strong demand outstrips supply, house prices go up and rent rises follow the same trend. There's a strong correlation between all these factors. Cutting the huge inflows of immigration will mitigate the acute shortage of demand for all types of accommodation- or does that statement now make me a far right racist? NO, IT'S JUST COMMON SENSE.
Let us talk about the old dream of home ownership that the video referred to,
it is a very modern phenomena. Home ownership only passed 50% of household in the early 1970s, so this idea that most people should be home owners is at best 50 years old. That means that people in the late 20s or early 30s, it wasn't even the dream of their parent's generation that most people should own their home.
I know this is a very unfashionable view but the reality is that across great swathes of the UK, private landlords are not expanding supply because they cannot make a sufficient return on their investment to make it worthwhile.
Overall a useful video, even handed and informative.
Brilliant post. Well said. 👍
Hate even more on landlords, got it. 👍
@@TheMrgrafixablethey’re simply a middle man. Unless they develop sites and build they are nothing more.
@@thomasdwalker9696 Its called ransom
Well, you would better have a house before you retire, otherwise you will be penniless once old. You may be able to afford few years of rent from what you have saved over your working life, but that won't cover the 20+ years many expect. So if you want to have a good life even once you are old, you do need to think about it now and try to get a property.
Easy economics. Immigration at record levels,most paid for by the British taxpayers.
Demand is outstripping availability. We are paying for people to take the available homes.
Madness!!
Happening in Australia too. RIP the west.
Selling council housing was a cynical attempt to stop working class striking as they would loose their homes. Housing Associations charging 80 percent of market value has helped push up housing benefit bill estimated 30 billion. Banks are now looking to buy newbuild to rent which will make problems worse along with population increase exceeding housebuilding !
We just need a national house building company, that builds houses, instead of allowing company's to bank land and not build to keep prices high, if wimpy wont build, then we should just build them with a new gov building company.
And where would this nationalised company get the money from?
And where do they get the labour from....and what happens if they go on strike?
@user-yi6ui6pn4i State funds to start it of, then profits from home sales to keep it going and then any profits can go into nation coffers, as for strikes what happens now when wimpy staff go on strike? It would be a house building company not an arm of the state, so they would just be on same TCS as builders are now.
That's insane. We don't need to spend our tax money on building houses for immigrants. Close the borders, reduce demand for housing. 700,000 net immigrabts a year currently. We cant concrete over the entire countryside to house the world.
The public has had a choice and has voted for austerity, increasing wealth inequality, Brexit, increasing personal debt etc. Since the 1980s the UK has lost most of the industry that it owned, its housing stock etc. Much of this is now owned by the wealthy including foreign investors and there is an increasing drain on the earning capacity of the public within the country, and on the country itself. This could be turned around but there seems to be no interest in doing so at present.
80s houses were affordable.
What happend in the 90s. That would massively increase the demand during a time of supply stagnation.
Oh yeah, labour got into power, and opened the border, which has remained open ever since.
Basic economics. Supply and demand
No hope for anyone now, people wrongly believe all oldre people have it made, however💩 can happen to anyone. We thought we had it made, but life does not play fair, I know that more than anyone, we did all the right things, worked hard, bought a house and still, through no fault of our own ended up renting again. Do not be fooled, life is deceptive.
Ugh....in the 80's the UK economy was horrible. However...
One major change in the last 30 years....the privatization of social housing and the lack of building new affordable homes. But this is what voters wanted...this is what the Tories promised and delivered.
Ridiculous. The major historically unprecedented change with the importation by force of millions of foreigners who are living in British homes. Iron law of supply and demand. It's basically a law of physics.
You are a hero,Tevjan. Please keep creating these videos, this public service
7:14
3k or 4k a month... thats before tax... which means you get left with not too much....
4100/month pretax is 50k/year
Graduate positions do not offer that at all
@Lookup2Wakeup not if your out of uni and you got student loans... 🤣
@Lookup2Wakeup i know what i get payed...
Plus the point was that its not a graduate salary...
Graduate starting salary is closer to 35k
Yet big 👽 migration.
Young people could buy gold. When the recession kicks in proper, all the asset bubbles will pop but gold will be as good as .... well, gold.
This is true! And can buy in tiny increments too.
But then the gold will be subjected to price control and the price of gold fall significantly and force the goal horder to suffer losses.
@@jimmyyue238 this is true, but it will never go to zero. As opposed to fiat currency.
@@jimmyyue238 You got that inside out. The price of gold has been under market manipulation to keep it supressed. That era is coming to an end. If you mean governments will try to fix the price of gold, that is something they try to do with everything else when inflation is out of control. There is official prices and real prices for everything sold in any economy experiencing hyperinflation. Real prices are the only ones that matter.
Unemployment is not low. Figures will catch up with reality.
You mention house prices going up faster than salaries. The plot of house prices in terms of salaries over the last 200 years is really interesting - we had nearly a century where the baseline affordability of housing was a flat 4.5 years of a salary (average) from around 1910 to, as you point out, the end of the 1990s. This means that whatever happened at the end of the 90s was a much stronger effect than people often recognise.
The neo liberal economic obsession that started with thatcher. Everything has to be privatised because apparently it's better, more productive or some other fallacy.
@@David-bi6lf lmao no it was globalist driven immigration pushing up demand for housing faster than housing stock can be built. Net Immigration went from 10-50k to 100-500k after 1998 without warning. Our country has unsuccessfully been playing catch up with the influx of population since 1998 in basically every service and essential asset like housing.
This was intentional by Tories to prop up EXISTING TORY's house prices.
Tony Blair was as bad as any Tory on this; Thatcher set the ball rolling and Blair gave it a massive push.
@@dominicestebanrice7460 .. 20 years ago, really ?
@@dominicestebanrice7460 Thatcher did a lot more than just set the ball rolling. Every MP thereafter was economically right wing and just continued on with the neoliberal order.
"You may be better off becoming a plumber"
I'm guessing that's why the Super Mario Brothers went into the plumbing business. They figured it had better long-term career prospects than going into the coin-counting business or joining the Koopa Troopers.
Neoliberalism...
Great video, very informative, I won’t give my opinions on how things should change as there are far smarter people than me that study this area. Again great video
Then they wonder why people didn’t vote in big numbers or for Labour.
This is misleading. You need to compare house prices and wages in real terms (adjusted for inflation), this is a school boy error. House prices in real terms have gone no where since 2013. Wages in real terms have declined. Why? Well greedy corporations have been keeping your wages down. Why doesn't anyone talk about this? Everyone is obsessed with house prices. Oh - what about rent prices well you can firmly blame the Section 24 act by the Tories in 2016. This caused a massive exodus of landlords from the market, hence the reduction in supply, but increasing demand - thus soaring rents. It's not rocket science.
Do you have any data to backup your claim of a “massive exodus of landlords”?
All of the data I have seen suggests the size of the PRS in England has risen from 10% in 2001 to around 19-20% in 2016 where it has remained.
In absolute numbers, it has risen since 2016.
@@redbruce1999 OK Maybe "mass exodus" is a little exaggerated. However, Section 24 was introduced in 2016 and the PRS has not grown since then, i.e. Rental supply has not grown with demand due to an increase in population. Thus soaring rents.
@@0runny quite a difference between “mass exodus” and “hasn’t grown” though?
For every one extra rental on the rental market is one less property for an owner-occupier.
Even if size of the PRS were to reach 100% of all housing (from 19% now) do you imagine it would resolve the rental crisis? If not, why not?
@@redbruce1999 That''s a naive way of looking at it. Not everyone wants to buy a house. Yes it's true. Some would rather rent. With today's job insecurity people want flexibility. Everyone seems to be obsessed with house prices. It's part of the problem, but look at wages (in real terms) they have been woefully lacking in growth, way behind inflation. No one talks about this. It's a real outrage. We need to look at the cause not the symptom.
@@0runnyI 100% agree with you about average wages in the past 14 years, not keeping up with inflation, and that has an impact on affordability, and I have to agree that not enough has been said about this by the experts, governments and the media:
But I also have to call out false claims put about mainly by the landlord lobby, blaming a “mass exodus of landlords” for the high average rents, when this is simply untrue.
And increasing the supply of private rentals isn’t the answer as there is just one place these will come from.
Yes, the private rental market forms an important part of the housing sector, where people need the flexibility, but it has been allowed too grow big over the last 20 years.
The problem now is that there are many people in the private rental sector not because they want to be there (they want to buy but can’t afford to).
Landlords try to gaslight the public into thinking the PRS needs to grower even bigger. But that will just result in trapping yet more people in the PRS, pushing up prices, creating a vicious cycle of more and more people forced to rent, who want to buy.
If we’re not careful we will turn into a nation of renters rather than homeowners, with the taxpayer picking up the £10,000,0000,000s annual bill when the renters who can’t afford to buy eventually retire and have to claim housing benefits. A ticking time bomb for future generations.
House price rises was a deliberate Labour policy by Blair’s government. This was a major driver of the growth that fuelled their proliferate spending.
Funny you show a graph of council house building with irrelevant large numbers that falls to detail the total lack of council house building under Labour. Just 450 in one year and total council houses built in their entire time in office less than the average annual council houses built during thatchers time.
There was nothing wrong with selling off the council houses but the money should have been ring fenced for replacement houses. Labours failure to replace the council tax was a deliberate avoidance of policy that would provide balance to house prices because they were purposefully driving house prices up by policy.
You nailed it with right to buy propping up house prices, idiotic policy increasing government risk for little reward.
What we need to do is build more houses in the midlands and the north via a nationalised house building force with government run education centres turning out good quality skilled tradesmen, working on government built, well designed cities with good rail and road links to London. I am very anti Labour and generally more of a free marketer but this policy is a 10-20 year turnaround policy to stop the south getting over developed and put more of the money from house building in the midlands and the north but improve transport like to London where a great deal of the money is generated.
£3-4k Month net graduate jobs in London that's terrifying ... does show how the rest of the uk is very poor (mississippi) as i would struggle to get any where near that as an experienced (17yrs at present) composite aerospace structural engineer as a staff job which is on the jobs shortest list .. things are very weird ... good thing i sold my soul to become a freelancer :)
At least we live in the "Free World" . . FAB!
😂
As a parent of three kids the best thing I ever did was to learn about Investing , taught myself , useing that and a good dose of common sense I grew a relativly small pot of money into a medium sized one and one by one , with each of them saving their own money as well , we managed to get them all into their own homes...they all had to ditch iphones etc for a while......It's not easy but it can be done....now we are grandparents
Aaaa whats the point in doing anything anymore 😱😱😅😅🤪🤪🤪🤯🤯🥶🥶🥶😰💥
Draughty?
Mate the word is draughty. Ie "drafty"
And you're an oxbridge graduate?
The market didn’t fail our generation, the government’s did by a policy of restricting housing construction.
Every other article in my local rag is nimbys complaining about 5 or 10 more homes being built where they live. It is not as simple as a government issue.
There are tens of thousands of new builds empty all over the country. People just can't afford them. It's a complete myth there isn't enough houses.
@@David-bi6lf I agree. But the government gives them power over the land owner.
@@kinggeoffrey3801 never seen any vacant new builds around me, they all get snapped up pretty quickly. Also if developers were having trouble selling their developments then prices would come down.
@@kinggeoffrey3801 Shared ownership is another reason why so many empty houses. Who would buy a house/apartment that they can never own?
The government needs to start building significant amounts of social housing again. It's the only way the issue is going to start getting addressed. Just reforming planning regulation so that private companies hopefully build substantially more homes isn't going to cut it.
@@michaele8896@michaele8896 Because we aren't a communist state fortunately, chairman Mao didn't approve of who owned property also and looks how that turned out. And the UK wouldn't survive without outside investment because we don't produce anything and the government focused on financial services instead of producing. People around the world invest money into the UK housing market because it's stable, if we make it unstable they will go elsewhere, it's the rich who pay for the NHS not Bob the plumber down the road on 40k a year.
It's also worth noting the international and UK investors generally are buying blocks and developments, they aren't buying 2 bed terrace houses on council estates or competing with first time buyers.
The government needs to close the borders and stop letting, 700,000 net immigrants a year. We can't build a new city every year.
@@quillo2747 correct
Housing is, in depth, inferior in size and superior in expense in the UK than pretty well anywhere else, for everyone in the UK.The average home sizes in the Netherlands, France, Germany and Spain come well above the UK average.
But it’s not just size where these nations are beating the UK when it comes to bricks and mortar.
The average price of a home in the UK is currently £351 per square foot, far higher than the average price of property in Germany (£236), Canada (£218), France (£212), Australia (£208), Spain (£141) and the United States (£126).
Yeah but a lot of properties in Europe are old and need modernization. I live in France I see a lot of properties and buildings with literal black mold on their exterior. Properties in France may be cheaper but that's because most of them are shit
@@Vagabondonabike That may be France but not generally elsewhere.
Germany: Known for its robust construction standards and emphasis on energy efficiency. No pre war housing in the cities due to RAF and USAF demolition.
Switzerland: Renowned for its high-quality construction, beautiful landscapes, and attention to detail.
Scandinavian countries (Sweden, Norway, Denmark): These nations prioritize sustainable living, energy efficiency, and modern design.
Austria: Offers a blend of traditional charm and modern comfort.
Other Notable Countries
Japan: Famous for its innovative housing solutions, earthquake resistance, and efficient use of space.
Australia: Offers a mix of modern and traditional housing styles, with a focus on outdoor living.
Canada: Known for its spacious homes, high quality of life, and energy efficiency.
Glad you are not preaching that you must go to University, to your students. When, I went it was all paid for by the state. But now, young people have to work out if it is worth the debt mountain it creates. Of course, many are too young to truly do that and I'm not sure if all schools advise them well.
Only in Britain do we think not being educated to a university standard is a good thing. Immigrants on the other hand hold education in very high regard
@@paulbo9033 Tejvan, never said that University, education was not a good thing. He said that he told his students that they may have been better becoming a plumber rather than going to University. Cost vs benefit. My Father, was a plumber and his education (apprenticeship) was over several years and gave him a good living. Maybe immigrants do value education. But most, who are arriving do not have an education and are unskilled. Of course, many do come specifically to get that education. They may not plan to stay.
@@philipjamesparsons we should raise our sights higher. Nothing wrong with plumbers but we've moved up the economic value chain. Let immigrants do this job and we focus on the high end, high value add jobs that require sophisticated engineering not breaking up turds in toilets. In short we don't need more plumbers we have Polish people that can do it. What we need are people in roles where there is no one else to do it, strategically important sectors that require a very high degree of specialisation like advanced chip manufacturing. There are many many sectors like this that we need developing in the UK.
@@paulbo9033Well, I don't disagree. But we also need to build houses and that is partly why house prices are unaffordable. We are in a desperate shortage of skilled trades. Dad, never broke up turds, he was involved in building houses and factories. He trained for years to do this. Finding good apprentices was not easy. Most of the Poles have gone home and the immigrants may not be suitable for a long apprenticeship. This is why trades people are often better paid than white collar workers.
Cue gaslighting from older generations
And landlords
Looking good with that haircut
People who don't think this is an issue, when the birthrates drop even more than they have and we have too many old people and no young workers...yeah that's going to be very bad for us.
This.
@Lookup2Wakeupand still nowhere near enough on our current trajectory of aging population and declining birth rate
The family unit and affordability has been hijacked. We reap what we sow.
What benefit to the tax payer who buys a private home is social housing? When you say ‘free’ or ‘subsidised’ switch the word in your head each time to taxpayer funded.