Something Huge is Happening in the Housing Market
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- Опубликовано: 28 сен 2024
- Something huge is happening in the housing market. Whether you’re a homeowner now, still living at home with your parents or are in rented - this video is for you. I’m going to explain what’s happening, the massive problem that it is creating and why I think the wheels might be about to fall off this thing.
Link to Guardian article:
www.theguardia...
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#housingmarket #realestate
We bought with a 5% deposit using the help to buy scheme when we were 32 (8 years back). A smallish 3 bed in Bucks. We had to move out of our “mates rates” rented house in Surrey because we couldn’t buy there since the “affordable housing” being built there was £450k.
Our house was around £225k, but the interest rate on Help to Buy was 5.49% for 5 years.
We got our rate down after 5 years to 1.89%, locked in for 3 years. Just remortgaged again at 3.25%ish for two years.
But here’s the difference. We now earn a lot more, have two kids, lots of childcare costs, and two cars we’re paying off.
We need to move asap to a bigger house, ideally in a nearby village where our eldest goes to school. But house prices there are £550K+ for the size of house we are looking at (3-4 bed semi-detached/detached). We simply cannot afford it right now. With energy prices going up, saving will become difficult, and more importantly, if I get asked to commute back to the office again (since I wfh), it will be completely unaffordable and might leave me without a job for a month or so.
Despite the fact we might lose money on our house, I’m praying for a crash/reset as house prices come down as a percentage meaning we might be able to afford somewhere. Our kids are now 6 and 2 and in a couple of years, the youngest will need more space than a tiny box room.
It feels almost like anyone born in the 80s is shafted financially. Jobs don’t pay decent pensions now unless in education or healthcare, no houses, shit mortgages, rising energy costs. And my parents tell me, “we’ve been through hard times too” like we should be putting up with it because it’s just the way it is.
One day, I hope to look back and laugh at the cluster fuck that is the 2020s. But I doubt I will.
A local estate agent near me has just gone bust, apparently as they couldn't get enough sellers to list their homes in the past 2 months. So even if demand falls due to a harder deposit saving environment and higher interest rates, supply is crashing too as people are choosing to stay put during this crisis. So overall I think supply and demand market will shrink and prices will still grow, although much slower.
Good
An excellent video. I believe that there was one single major event which has caused a vast majority of the issues regarding both housing and society. When the financial institutions abolished their lending policy of lending between 3-3.5 times salary, this opened the floodgates! This allowed property prices to rise purely on the principle of supply and demand, those who could afford it got it. The 3 times salary kept house prices low and affordable. With the disparity between wages and house prices, this required the previous stay at home mother to go out to work to assist with the finances of the home. Both parties now working full time, coming home tired and not wanting to cook started the reliability of pre-prepared foods to feed their family. The additional preservatives, sugar and salt within them leading to obesity crisis we now have. With parents being out at work all day trying to earn money, parental supervision, guidance and teaching has become greatly reduced resulting in the behavioural issues with some of the youth today. I believe that this single change in policy has affected so many areas within both society and the family, especially regarding what was once the norm in owning ones own property.
Thanks for the comment Jonathan - loads to think about there.
Whilst it’s great that women are now being offered better opportunities at work, what was sold as better opportunities for women has become an expectation that both mum and dad will work to afford a house in order to complete with everyone else. Put children into a child minder until they can get away from work, eat sleep and repeat.
I agree with most of this! Removing the multiplier was a catastrophic move and should have been fixed by law... But we don't have the smartest politicians do we! We have rich fa(r)t cats running the show regardless of whether it's actually good for society as a whole - it very definitely usually isn't! Capitalism and greed will always follow the money regardless of the suffering it causes to others.
Frankly, we need a law banning the purchase of second homes. The buy to let scam is totally out of control! The rich are getting ever richer out of it and the poor ever poorer. Stop rich people buying second third etc house to rent out at above the cost of the mortgage!
Yes, it is in large part banks lending too much - they know they are 'too big to fail' - so they lend too much. And they get to collect on the higher interest payments, get bonuses etc, allowing the gov (i.e taxpayer) to take all the risk if the economy collapses. Even if the bank does go down, those at the top will be multi-millionaires, so what do they care?
@@lindathefish7736 - this is the flip side and knock on effect if women entering the workforce . Don’t get me wrong I am not against it . But the single breadwinner determined the economics of home ownership prices etc with the expectation that it is 2 x incomes now. ….plus plus . My father was the primary bread winner in a family if 4 boys . Only after we were all in school did my mother venture out part time. They built 4 houses over the period and he was blue collar . There is no way you could do that now 🤷🏻
I have to say your content is very well put together. Informative, balanced, well supported and easy to watch with the light-hearted jokes and style of delivery. Keep up the good work!
Price is determined by supply and demand. For the rate of growth or indeed for a fall in prices to occur demand needs to reduce.
There are variety of factors that cause this, the most obvious being rising interest rates which translates into greater borrowing costs.
For first time buyers and those needing large mortgages, affordability is more important than the actual price of the property.
There is little point in delaying buying a property in the hope that the price will fall if the cost of borrowing will be greater than previously.
There are no easy answers, but we all need to live somewhere.
No.. the most obvious is uncontrolled mass immigration. Its like the QE artificial stimulus for property prices.
With thousands of new households arriving by dinghy every week and a government willing to borrow money to house them house prices will only continue to rise
There were plenty of properties out for sale during the credit crunch twelve years ago. Once the home prices begin to fall you’ll see all the speculative owners flooding the market in panic again like twelve years ago.
Brilliant video! Loved it, enjoyed comparing my scenario to your stats was of particular interest! For reference to your stats I'm now 43 (I was late to the "I want my own home" party!), and my wife and I bought our first home in Sept 2020 (Lincs) for £195,000. It's a 4 bed detached but needed some TLC hence the lower price. Combined we make above average household income but not obscene amounts of money (sadly!) so we grinded away for 3 years to save a £50k deposit upfront. We got accepted by Halifax for a 5yr fixed term mortgage almost instantly (mid-pandemic) since we had more than a 25% deposit, at a rate of 1.84%. This gave me peace of mind that we would be able to absorb any financial stress should interest rates start climbing. We dodged the stamp duty (thanks Rishi), and have been steadily upgrading and modernising the house ever since. We have 1 car between us because reading between the lines told me it was a money sink and I can WFH so it worked out nicely. I would say I'm in a good place right now but the energy crisis is certainly cause for concern before I even contemplate other financial standpoints - I locked us into a 2 yr deal last Oct at £167pcm as I could see what was on the horizon, and I've watched it systematically borderline cripple friends and family now it's tripled (and more). We are fortunate in that we have no intention to upgrade to another house - so a crash wouldn't necessarily hurt us as we've got no intention of moving anyway, but getting by week to week, month to month is certainly something we're watching on the horizon. I feel bad for those who are stuck unable to save due to high rent, yet unable to afford to buy - we just about managed it on our own but it took 3 years of grafting and living at home (embarrassingly) to make it happen.
The other side of the coin you didn't touch on, is that with the ever increasing age of first time buyers, they'll only be able to mortgage up to their retirement (typically) - so at 41 (when I purchased) I was only just able to fall into the 25 year mortgage category. First time buyers older than 43-44 will start to be hit by a shorter mortgage duration which again, increases monthly outgoing cost because they have to pay back the mortgage in a shorter timeframe.
This country is in a horrendous downward spiral and like you, I genuinely cannot see a way out. All I could do (and have done) is insulate my family as much as I can from the impending financial hits by saving as much as I can up front, not borrowing money for things I didn't need and a generous helping of luck coupled with good timing. Sadly, good financial saviness can't help with timing or luck.
Keep up the great work and thanks for reading! Keep well all.
Really solid findings. Thank you. I think we are seeing a spike at the moment primarily because interest rates are rising rapidly - we’ve known they will for a while. It created a rush to get a move completed at a ‘lower’ interest rate (this is also compounded after people have reassessed their needs post pandemic).
House prices have reflected the increase in demand - many selling the day they listed.
Ultimately the rate of increase can’t continue. House prices will likely steadily come down as interest rates go up and affordability drops.
I have been looking to move for the past 6 months, recently found a place and am midway through the mortgage process - my repayments are scary. But I feel for first time buyers desperate to get on the ladder, those on lower incomes or at younger ages (as you mentioned) are being priced out.
Hi Richard, firstly good luck with the purchase - hope it all goes through OK. You’re right, stuff has been selling so quickly and many resulting in bidding wars pushing prices up and up. People just get over excited. I think the market will calm down - but I’m not so sure it will ‘crash’.
@@ThatFinanceShow Agree. And thanks for replying 🙂. Good luck to you too with you holiday let, would love to do the same.
I stumbled across your yt channel looking at your extension price up. Since then I’ve found your content to be really well thought out and very clear and easy to follow - brilliant 👏🏻👏🏻👏🏻keep it up!
But in three years time when the fixed rate is gone people will lose out and have to rent ofcourse nothing to rent as only few die hard Lanlords left so institutions will build high rises its already started , look around they'll house you but rents will be astro.
I can’t back this up but I’d guess there was a surge of first time buyers last year due to lockdown, and not being able to go out and spend money. Now that this surge is (at a guess) calming down, the number of first time buyers will vastly decrease, which will in turn stall the market.
If I didn’t have a young family to support, I’d be selling my house right now, and moving back in with my parents, or a cheap rental, because I can’t see anything other than a crash. Might not be as severe as 08/09, but I believe it’s about to stall/subside. IMO.
A big factor in the market is short term letting developments being built that hike up rents in a location to levels that make the location attractive to other (usually large) landlords and leave the ordinary punters out in the cold. Involvement of financial heavyweights like hedge funds, as purchasers, make the situation worse because of the depth of their pockets. They sometimes buy off plan or before completion and don't always get captured in national statistics so the problem is underestimated. They also have a habit of leaving developments unlet because the asset appreciation looks good on their balance sheet and it's not worth their while staffing up, putting maintenance in place, paying insurance, tidying up between tenancies and dealing with the great unwashed.
I can see a price drop on the way. Affordability with increased interest rates, mortgage like utility bills and increased food and fuel costs mean that even those with a healthy deposit just won’t qualify through the stress tests.
Also, looking at the prices of homes compared to what you are actually getting for the money, in the areas that they are selling them.. it doesn’t match. Value has gone out of the market.
So a lack of affordability, a strain in confidence in terms of the affordability of cost of living and the lack of value for money, means I can’t see anything but a stall and most likely a drop in house prices in the next 12 months
Yep a lot of truth in all of this. The stress tests the lenders do though only look at credit commitments really so I’m not sure this will be quite the direct effect you might think. But I agree, it will surely calm down these rises at least.
@@ThatFinanceShow thanks, good to know. Great video as always!
I'd agree with all that, but the threat of a 'burst' has been touted for as long as I've been around.
It started with Thatcher selling social housing and making building new social housing illegal by the council. So, we should start there and then the knock on effect would be that there would be less private renters, so there would be less people making a business out of a house.... and then house prices would come down.
You ignore a process that's been going on for the last few decades: concentration of the house property in fewer hands. This is similar to what's happening in US, with the difference that in UK is mostly in the hands of private citizens, whereas in US funds and corporations. In the end is what was envisaged in Davos this year: you will own nothing and you will rent everything. This is the plan, you believe it or not.
A lot of the 409000 first time buyers are also assisted by parents who have either paid off their significantly lower mortgages already or have benefited from rises in property values over the years
There's also the thorny issue of mass immigration. At the low end of the economic scale, the constantly imported excess labour force is stagnating wages as workforce supply outweighs job demand, and means ever more people want homes, driving prices ever higher in turn.
On the high end of the economic scale we have foreign investors and elites (also part of that first time buyer group, artificially making that number seem healthier), who either want a holiday home, monetary investment or can simply afford to buy luxury homes in Great Britain when moving here for work. This also makes the prices in desirable locations like cities higher as they can afford to out bid locals, with the knock on effect of those native elites moving to other areas, being able to outbid those poorer locals, and drive up prices in places like the Cotswolds, which are where the native elite want to move to from cities, further driving up prices.
It's all fundamentally just supply and demand. There's simply an excess supply of people, and that has a major effect on the housing market and wages.
Surely this is more than offset by the fact that the number of working age adults in the UK is falling by c400k each year due to demographics?
Immigration didn't cause stagnating real wages, it was austerity that did that. Real wages rose by 33% a decade from 1970 until the 2007-08 financial crisis and haven't risen at all since.
Totally agree that immigration has been used as one of many excuses for failure of the economic system to adequately reward workers for their time and efforts… plenty of value is being created, but how it is shared out has let billions of people down
Accusations of racism are used by the wealthy to suppress any critique.
@@mattgs1671 - it did at the bottom end for low skill labour . The ONS and Parliamentary Committee’s confirmed this with knock on effects on housing and rental costs. In essence low skill labour that was reliant on taxpayer subsidies such as HB and tax credits
You failed to mention the air b&b situation that is engulfing much of the country. Houses are now seen by many as investments because of the profit involved. Houses are for living not investing. As soon as the uk realises this it will improve.
Also estate agents and banks are distorting figures / being dishonest to inflate the prices to increase profits.
Basically it comes down to greed.
Realistically with the severe supply demand imbalance I cannot fathom the idea that house prices will drop regardless of any other factors because this is the most important factor unless the a significant percentage of the population choose to leave the country and live elsewhere!
Does this makes sense?
I reckon another big factor in terms of younger people still buying houses is Help To Buy, effectively just buying a share of a house (a lot of the time a small percentage too) and mortgaging that, almost stat padding if you will.
It's not just one thing that is causing this causing this issue in the housing market and won't say I understand but what I can say is what I have experienced. I am renting and have been trying to get onto the property ladder. My salary wasn't that great and took a long time to save for a deposit of 7.5% +. As we saved the prices would rise and we were always chasing the deposit. Then Covid happened and in the rental market it went absolutely bonkers. Rental prices have ballooned to dizzying heights and my rent was no exception and we were told to accept the increase or move out.
For the last 6 months, we have been forced to pay the increase which is now eating into our savings deposit. We have also been looking for another property to move into and that's its own problem as it's a landlord's market. We have had to fill out so many applications and prove that we can afford the rent and if you are accepted you are then invited to view the property.
We have now secured a property (but not the type we need) but at least it gets me and my family away from this toxic environment we find ourselves in.
While spending the better part of this year trying to move and read up I did find out that AirBnB is also a major cause for the lack of properties.
The government are now also scrapping the 3% stress test on mortgage applications, which again is just kicking the can down the road and not solving the root cause of the problem, but rather fuelling the demand for housing and further amplifying the problem. Absolute madness
Interesting video. Definitely agree with the point about the government not fixing the problem. Offering free stamp duty during Covid was insane; these funds could have been put to far better use. Think it's time for a much needed reset!
If they put higher tax on buy to let, no more property investor and force them to sell. That is it
They are pretty heavily taxed already to be honest!
I spoke with my local agent at Your Move. The manager advised me to be more 'realistic' about asking prices and as such I've reduced by a whopping 10%. That in turn means I'll be seeking out bargains and making lower offers. Once this gets going it'll lead to a crash/correction/plateau, insert your own experience.
Blimey this is interesting. Market is still red hot by me - there is no bloody discounts!
This is because mortgage companies are not valuing house as much for loan purposes
First time viewer here. Really enjoyed the video. Thankfully both my kids are on the housing ladder but I feel really sorry for those guys who just can't bridge the gap between deposit and house price!
Fantastic video. Private landlords are a big issue. Landlord gravy train needs to be stopped. One house per person/couple for ownership, rest state owned/council owned. No foreign ownership unless you live there 6 months plus a year.
Bring in rent control and security of tenure in private rented sector, use the benefit savings to help fund social rented new build, scrap absentee holiday rentals, remove banks from mortgage market and return to building societies only, change treasury rules to fund building via a public works loans board again ...
Hi John, yep totally understand some of these points. The difficult thing is leaving a market to naturally set prices through supply and demand when in reality, there are so many factors that push it one way or another. We definitely need more homes to be built whatever the solution.
What is a first time buyer ?
We lost our house after the 2008/9 crash and have rented ever since.
If I try to buy now would I be considered a first time buyer and does it mater
There is a simple solution to the lack of supply, above every abandoned high street retailer is property that could become flats. Could instantly fix the lack of council houses/adorable housing
What would be left of high streets then though Jack? Already a dying breed, this would kill them off - would be a shame.
@@ThatFinanceShow I meant atop of shops, not the shops themselves
An old person remembers what happened, which is very handy as no one seems to be able to work it out.
My first property was a small, typical, first time buyer property and I was surrounded by other first time buyers.
BTL came on line in the early 1990s.
The next boom did not need first time buyers; BTL landlords were buying up what were first time buyer properties.
The bottom rung of the housing ladder could now rise in price above what first time buyers could afford.
House prices are just hyper inflated, and there needs to be intervention soon. If a typical home is 13x the average wage, that just is'nt right 🤬
Never been more unaffordable than right now, I feel for first time buyers.
Finished high school right in the 08 crash. Went to college a few years later and finished up in 2019... now I want to buy a house. It’s like everything is fucking against me
I think you missed a factor in your video about the first time buyers rise...the first time buyers currently are NOT British citizens!...that's why it doesn't make sense about low wages and first time buyers....all the housing stock is being brought by foreigners for renting out!..but great video... thanks!
Hang on, isn't that what Brexit was meant to stop? Not being sarcastic btw.
@@michaelkelly339 comes under a different law....yes it should've...but the current government are happy to have international money's... flowing inwards....I got a mate who is renting a house and his landlord lives in South Africa!...wtf!...
@@richardlyd7450 I had exactly that when I lived in London 🙄 I lived in a house on Durban Road near Brixton and my landlord had an address in Durban near the Indian Ocean. You couldn't make it up. Mind you, SA is commonwealth, not EU so Brexit wouldn't make any difference.
House prices don't rise. Priced in gold, the average price of house in the UK is not far of what it was in the 60s. Gold puts on 8.5% year; you're looking a fiat currency inflation and a shortage of supply due to 60 years of increased in planning regulations and Govt. pandering to the NIMBY lobby. The problem is all man made.
I'm working as a real state agend working for a company in Birmingham and I hope it doesn't crash broo
Interesting, well thought out but one point r garding the not in our back yard complainers. The reason why my area in East Sussex people are objecting to recent planning applications is the infrastructure is inadequate and the service at the top of the list is drainage with sewage being deposted in rivers and into the sea. Not to mention we are in a hose pipe ban due to so called drought, of schools, big queues at the doctors and the local chemists. Transports not so good.petrol is not cheap I could go on but simply the country is in a mess it is falling apart.
buy to let no. buy a plot of land with planning and build your own . 30% mark up and you can reclaim the VAT
I just had a look at Right Move and 15 houses out of 35 have been reduced.
Last year there were maybe 4 at most.
There were also around 60 to 70 homes for sale in our area of interest/price range.
The housing market where we are is stalling, prices are dropping and fewer homes are coming onto the market.
No one wants to buy and no one wants to sell.
Such an informative video! You have put all my thoughts into one structured video (with graphs) Thanks!
What I know for certain is people will only sell their houses for a cost lower than what they brought it out for either of the following:
- Mortgage defaulting
- Moving up the chain
Based ONS (Office National Statistics) only 28% of households in the UK are mortgaged, with 83% on fixed contracts as of 2022 (financial times). So even with increasing interest rate hikes this is still a very low amount of households that could default on their payments which could cause a housing market crash.
As with moving up the chain, this usually occurs when families are made or expanded upon, and are desperately willing to sacrifice wealth for a better standard of living. And people will, naturally, want to have families over time but will only likely drop prices for first time homes.
Nice comment.
As a small business in the removal industry we have seen our customers change since 2008 we used to move nurses police now these people cant afford our services they are moving them shelves the average home is 350k where I am and the average wage is 22k
Our work level has dropped dramatically this year in Norfolk and I have contacts up and down the country reporting to me same thing which to me says that we are already in a recession and the housing market is in affordable and unsustainable and will crash soon due to the interest rate hike the fac to that the bank of England has just scrapped the affordability checker show how desperate to he government are to prop up the market
Thanks for this, really interesting insight from someone who actually lives and breathes this industry. I was surprised to see the affordability checks get relaxed for sure
Great video Tom. I am lucky enough to own a home, if I was a first time buyer now I wouldn't have been able to do it. I really feel for everyone in that situation.
Interestingly we are stuck in our terrace house. We would love to move up the housing ladder but with the cost of a 3 bed semi being over 200k more than this home it feels even harder!
Our only option is to overpay as much as possible and hope one day we will have enough. Good luck to everyone.
Nothing has been said about foreign investor’s purchasing 1/3 of all the UK housing stock, thus keeping the house prices high.
I agree with much of this but the elephant in the room remains the rapid growth in population. Back in 2004 Lord Andrew Green predicted we need to build 3 cities the size of Birmingham (population 1 million) just to house migrants. How many new towns have been built since 2004? Zero. Of course we need to build more genuinely affordable housing but without effective border control it is futile. Former leader of the Labour party, Jeremy Corbyn promised to build a "million new homes" over a 4 year parliament but the only problem with that was net migration was running at nearly 300,000 pa. Do the math. Why are all the so called "experts" ignoring the big elephant?
It's outside the Overton window
Great video again, Tom. Currently waiting and hoping for those house prices to drop, albeit with tempered optimism.
Thanks Nick. I don’t see them crashing, just growing at a slower rate. Could be wrong though…
@@ThatFinanceShow No, I think you're probably right. Any wobble that we have could be accelerated by the inevitable energy price cap increases that we've got coming up. It adds another piece to the chessboard of affordability at least.
If all land allocated on LDP ( local development plan) were taxed as if there was a building on it (after say a 2 year grace period) then developers holding vast land banks would be incentives edge to sell plots for building or build themselves. This would drastically increase the supply of land and hence the number of houses built. It would also make land and property speculation significantly more risky, which would again promote the building of houses as homes. However at the same time we need to reevaluate the way we build in the UK to incorporate modern standards of factory built super efficient houses with can be erected in a few days . This could speed up the planning and construction phases by using pre approved designers with incorporate the latest efficiencies. ( SEE Neath Port Talbot- homes as powerstations)
-Limit buy to let
-Stricter limitations for landlord (rent caps, epc requirements, stronger tenant rights)
-Much higher taxes on 2nd and more homes.
-More rights for building homes and mixed use urban planning.
-Build a lot more homes.
None of this will likely happen because most MPs are landlords...
FTB'ers were rushing in to get a fixed rate mortgage before the BoE pushed up the base rate.
Another fantastic, informative, topical video Tom. It’s a rough time out there that’s for sure.. and loved seeing the shot of the cash from the Instagram “issues”.
Thanks Steve, glad someone spotted the shot. Nearly broke my neck climbing up to get that 4 seconds of footage 😂
Thank you! We are selling and looking to buy at the moment. Considering micro and macro economic context of the near future in the UK, I can’t see how house prices can NOT fall significantly.
Economic fundamentals just don’t support affordability for the majority of the population here.
But what will happen to market £1.5 mln+ I wonder? Surely this one will take some hit too?
The problem all starts with usury and money printing or Quantitative Easing as they call it.
Yep defiantly a big part of the puzzle
So odd to hear this, i am in Aberdeen and the prices have only just started going up
The buy to let boom is definitely a culprit, solution is a mind bender right now with so many things on the horizon still waiting to shaft us.
Great video by the way. 👏🏻👍🏻🏴
A good video Sir. Your conclusion that a lack of supply is unfortunately correct. However this is only because it can't keep up with Demand. My counter argument to this is that demand outstripping supply can be tracked back to increasing net migration to the UK since the late 1990's. Natural UK birth rates are enough to maintain its current population at any time at best, in fact it might even be just below replacement levels. Therefore the failure of social policy to control net migration this has brought this on. The failure has been a lack of planning for the high net migration levels that we have experienced. It has been to the tune of 100,000's per year, sometimes as high as 300,000 per year.
These levels have consequences. What your video discusses in just one of them. The answer is not to build houses endlessly over everything. The world is a fragile place as the Ukraine conflict has shown us. This should mean we begin taking more seriously the issue of domestic food production in case the imports we rely upon are disrupted. Keeping land free for this use will be very important in future.
The answer should be for the government to use social and economic policy to reduce net migration and give the housing market a chance to catch its breath after the last 20 years, coupled with a higher interest rate environment to help curb prices. This should help in theory but i wouldn't hold my breath in them happening as there doesn't seem to be the political will to handle such a hot potato issue.
Sadly i would argue a market "crash" is required in order to help younger buyers, they are our future after all and need the right environment to begin their young adult lives and have the spaces to start families at an earlier age. 1st time buyers average age of 32 is simply not good enough.
Hi Joseph thanks for watching and the detailed comment. Lots of people discussing migration - I will look into this in more detail for a follow up video.
I believe it was around the million mark in net migration for 2021 which would make it the highest in recorded history for the British Isles.
I can't afford prices to shrink, least I run the risk of owing more on my mortgage than the home's actually worth!
Some great topics you've thrown in there. Tbh house prices need to go back to 2020 just before covid in all honestly.
I don't know what the hell has happened in less than two years but say there is a crash and they go back to 2020 prices to me there has been no crash because houses simply shouldn't have gone up the way they did or if there is a drop but still up say 5% or so more than 2020 that would be a ready increase and a realistic increase .
I feel for the younger generation I personally own my property I brought in 2011 but if the market crashes like a stone like 2008 I'd be overjoyed for the youngsters tbh.
Yes good point, they certainly have gone bonkers since Covid haven't they.
Only solution is a huge building of social housing. The stripping of social housing stock since the 1980s has not been replenished forcing people into the private rental market which is fueled by Buy to Let profiteering… leading to poor value high rentals
The only way is to Saturate the market with affordable rentals for sale after 5 years of tenancy
Hi buddy, great video. What are your feelings on right to buy for Housing Association tenants, would it just be another Thatcherite sticky plaster or would it help to open the market?
A nicely balanced presentation. My bet is that the housing market will stall but not crash. There will be a substantial drop in transactions with small price reductions until earnings inflation catches up with the current imbalance between house prices and average incomes. There is too much demand for a major crash.
I've just sold my house and it has been "down-valued" by £15k by the buyers bank. Could this be a sign that the banks are expecting the prices to crash?
We are all doooomed, the end is nigh ! My garden shed is bigger than your house lol
I think the ONF should class any property worth north of a million in their own exceptional class and then take an average of the housing market. Theres no doubt house prices are skewed by the ultra rich. A £281,000 house up north would buy you a very comfortable 3-4 bed house more akin to a second time buyer. Not a first time.
Most up here would be looking for property a hundred grand less than that for a first time house.
I find it strange initially when you mentioned that a tenant is paying rent that is higher than mortgage payments but the banks won't lend. But I guess banks do have to cover their bases by scrutinising personal annual incomes before lending. My take is that prices of land, materials and labour are all increasing so developers will have to price their offerings higher if they want to make any profit. Doubt that any of them are charity organisations.
Good point about land and labour. When it comes to new development there's lots of other issues that are pushing prices up. Lack of road capacity, lack of sewerage capacity, lack of quantifiable sustainable transport options as bus services get cut, lack of power capacity meaning new sub stations and bigger cables to be laid, rivers already at bursting point, higher sustainability aspirations meaning less plots can be built on a certain site. All of these costs gets passed back to the developer, who pass them onto the consumer. They still seem to sell quickly enough mind. But I always laugh when people say 'just build more houses' as if developers deliberately stunt demand to keep prices high, not the case at all.
Fantastic video as always Tom! I know a lot of people are hoping/expecting a crash but I really struggle to see it. I do think we won’t see much growth over the next couple of years and things will plateau, but I really don’t see house prices plummeting. But of course just my opinion 😊
Yep agree with you I think Dee. I just don’t see demand dying off enough to make them crash.
Second properties should be banned.
Or the rent charged should only match the mortgage repayments at most. Renting is too expensive and it's preventing people from saving enough to buy.
If they banned it, what would people rent?
@@ThatFinanceShow buy instead. More houses for sale means prices come down.
@@tom7676 even in a perfect system there is a place for renting
@@ThatFinanceShow agree. Keep up the great vids!!!
I just can’t see there being a crash,
Too many people looking to buy and too many people waiting for a crash who will inevitably just get fed up and buy when there isn’t one.
HMOs near me in Bristol are filling up with people who have £100k saved up which is a great deposit for a house. They just aren’t wanting to spend it right now.
We have a really healthy deposit but really just don’t know what to do!
I've heard house builders are more interested in buying up land than they are actually building houses. It's more profitable for them to sit on empty land, watch it's value increase, stop other companies building on it while drip feeding houses on to the market. Rather than keeping up with market demand.
We do not need to build more homes necessarily, we just need to stop a small number of people owning more than one home in the first time buyer range and Council & Housing Trust homes?
I saw video today by Phil (who presented on TV with Kirsty) talking to someone about rentals about 3 months ago saying how terrible it was that Buy to let owners had starting selling their properties. Surely this is just what we need? More first time buyer homes available to buy rather than rent, more supply will bring the prices down. Yet they did not touch on that benefit at all. I put the following together below a year of so ago. Am I so wrong in what needs to be done? In the early 80's I worked for an Agent just before the crash then. He was the only Agent who did lets in the town and there were only 2 available. There were almost no rentals then, it was all about buying your own. They brought in buy to Let in the nineties during that crash as no properties were selling, now it has ruined the property market for the many couples who want a home. After the 2007 crash first time buyers were only allowed Repayment mortgages, yet buy to let purchasers could get interest only mortgages which were much cheaper monthly payments, and with only a salary of £25'000 could obtain any amount of property I believe. So Buy to let landlords were given yet another unfair advantage over those who just wanted a home. We have made first time buyer homes a form of business model to make a few people rich instead of every couple having a home of their own that would gain in equity and help their family also to have a home. This was further compounded by selling council homes which were built to allow those starting out in life, a home on a low rent that they could then save and buy on the private market, or to allow those who could never do that, to have a decent home. Now many of these Council homes are in the private market, and Michael Gove is suggesting we do the same with Housing Trust properties. This must be for short term political gain yet again, as I cannot see their reasoning, they are surely making the same errors.
It was reported in 2018 that 2 million private landlords owned 5 million homes on "buy to let". www.theguardian.com/society/2018/jun/25/home-ownership-out-of-reach-for-2-million-uk-families-says-thinktank. The main reason why we have a shortage or homes to buy (which increases the demand to rent), is that too many people own more than their "fair share" of "first time buyer" price range of homes. Worse than this, rich foreign investors are buying them en masse from "Buy to let" landlords We need a law preventing this and that all "buy to let" are sold individually when put on the market, and perhaps only sold to UK passport holders. I have known visa holders with their visa due to expire in 6 months to purchase a first time buyer property. A "fair share" is one property per couple/person, instead, now a few clever individuals have 2 to 100 first time buyer range homes, or more, a person in Kent where I come from bought 1000 "buy to let" homes over 20 years, which he then sold en masse to 2 overseas investors. That is a 1000 young couples without a home to buy. Buy to let has been curtailed a little, but it needs to be stopped completely as there are many companies dealing just in "Buy to let"., depleting "first time buyer" priced homes www.thisismoney.co.uk/money/buytolet/article-3352735/Britain-s-biggest-buy-let-tycoons-strike-deal-sell-900-strong-property-empire-Kent-Arab-investors-250m.html // www.simplybusiness.co.uk/knowledge/articles/2022/01/huge-rise-in-buy-to-let-property-companies. If "Right to Buy" of Council AND Housing Trust properties continues, we will compound the Housing shortage yet again. These homes were designed for those who could not afford to buy, but so they could access low rents, decent homes and have security. If they reach high salaries of £50'000 then they need to buy law vacate their council home and buy or rent privately, unless they are a key worker.A new survey indicates that first times buyer numbers have fallen from 33% to 22% and buyers of second homes has doubled. The second homes are also probably via "buy to let" Mortgages. Such a buyer only needs a salary of £25'000 and they can buy infinite homes on buy to let, though some Building Societies cap it at 5 now I think now, even that is too many and it is not a law anyway I do not think.
We should consider the following and activate a change with immediate affect, it costs nothing in building, but releases millions of first time buyer homes and protects them being sold to a few clever people, or overseas investors:
1) Stop "right to buy" of Council and Housing Trust properties (Michael Gove is currently now advocating "right to buy" for Housing Trust properties, compounding the housing problem yet again)
2) If a Council or Housing Trust tenant has a £30'000 or £50'000 salary they must vacate the property (unless a key worker), these homes are for those who cannot generate that sort of salary. This would release homes for the less well off. The RMT Union Deputy Leader has a salary of £78'000 but lives in a Council Home. This is not right.
3) Create a law that "buy to let"mortgages of first time buyer homes up to £500'000 are illegal/not allowed.
4) Create a law that "Buy to Let" homes must be sold singly and not en masse to 1 or 2 investors and must be sold to those with a British passport, at least at first time buyer range anyway (i.e up to £500'000)
5) Encourage Buy to Let owners to sell their properties by giving a tax exemption from capital gains tax for 1 or 2 years, or some other incentive to get some of these 5 million (probably more now) homes onto the property market again for couples/individuals and not investors. This might bring the rental and sale price of property down again due to more supply and less demand.
6) It could be considered that foreign investors are no longer allowed to buy property in the UK, so that builders build for the home market with cheaper smaller less luxurious property, rather than luxury homes that stand empty and owned by overseas investors. Perhaps designed for couples with 1 to 2 children maximum as we need discourage large families which leads to poverty for the family and the nation. We currently have 89'000 children in council care and this figure has doubled in the last 10 years. It is key for global warming issues, less population leads to better educated children with a better life, less demand on the planet. Africa is due to double in population by 2040, the UK only by 3%, but not if we cannot stop the flow of immigration of cultures that have large families without thinking of the consequences.
Wow! last time I saw many of those ideas they were being expounded by a little fat guy with a funny haircut and a fetish for firing rockets over Japan. Soe of them make sense but many encroach on people's rights a bit too far, for example trying to impose limits on family size.
You touched a nerve. The cause of the problem is not what most people think it is. We don't have the supply to match demand and this is why :- House building companies would crank out property much faster if they could. Like any business, the more product they make, the more profit. Sitting on land is not as profitable as producing buildings. The problem is that there just isn't land available that we are allowed to build on. From first hand experience, getting permission to build is extremely hard. Planning can take years. Objections come from everywhere and the planning system is very very slow. There are huge compulsory bureaucratic costs such as planning application costs, sound surveys, bat surveys, highways surveys, insurance, party wall agreements, ecology surveys, local searches, tree preservation orders etc. Other costs like planning consultants, service connections, architects, valuer, building power efficiency constraints, green energy considerations etc all add up. Imagine having to pay someone 2k to tell you if bats are present on a site. If they are there then kiss goodbye to another chunk of change and another 6 months. You can be balls deep in cost before you get out the ground and will have had a lot of money tied up for years. You can't even get finance unless you have all permissions in place. If you want to build a lot of houses, its even worse. I once had to pay for an EPC survey on a building before it was sold even though it was being demolished. Hundreds of pounds up the swanny to feed the UKs bureaucratic machine.
These costs and delays are really significant before you even put a spade in the ground. Guess who pays for all this in the end? Whoever buys the finished property, that's who. I'm all in favour of building control so we don't build gettos but the level of difficulty to building anything is beyond a joke. Most of the problems I describe didn't exist years ago so it was easier for supply to match demand.
Bottom line is that if it was easier to build then supply would easily meet demand and we wouldn't have this huge spiralling problem. Permitted development gets round some of this but not everyone wants to or could live in a flat above a shop.
Steve, some really valid points here. I’m currently working on a follow up to this video and I will cover this.
Perpetual growth, average houses cost 9.3X average income today (3.3X 1980)
Seems like foreigners with big lump sum of cash getting into housing market, they movie here or doing international investment which creates huge demand. I don't know what other nationalities but I can see Chinese (inc. Hong Kong) coming over and looking for houses recently.
One total fallacy is that if you attack landlords it will help the poor when it is the total opposite. Only half as many homes are available to be rented on rightmove as in 2018 as there has been a mass exodus of landlords and now only 10% of purchases are rentals when it used to be 20% so how has this helped the poor? Have they been buying houses as the regs and tax made landlords cash out? No they have all become second homes and airbnbs but mostly second homes oh and third homes. One barrister I know says there is hardly a decent barrister with fewer than 3 homes, and some live between far more than that. I have double figures properties but that is as a landlord but often its cheaper say to to split an apartment building into one house than comply with all the infinte rules in additional HMO licencing of 257s with fireboarding lathe plaste hallways, new electrics usually, new doors, new call point fire alarm systems and more its way cheaper to evict the families in the block and make them street homeless and sell the block as a single house to a rich barrister as his 2nd or 3rd home . Why does it matter so much about all these million regs when rented but non matter at all even any of the standards for insulations or electrics in owner-occupiers? These straight attacks of landlords killed the sector, there are now about half as many properties for rent as 5 years ago on rightmove (Which is huge) and rents are rising every week and so too will homelessness. Remind what the issue was that meant a homeowner should not even be able to rent out rooms without planning often or convert a house to flats that did not exist in the 1980s. Anyway the attacks on landlords all backfired as the renters are now sleeping under bridges whilst the rich lawyers and doctors have second homes where they used to rent
When did anyone expect to buy an average home as their first home? Surely a single person who is a first time buyer has always bought a small flat in a cheap, “upcoming” area.
I think the solution is fairly simple. As the private builders are incapable of building for the people (preferring to build for the shareholders) we need to undo the damage caused by "right to buy". Solution: build more government sponsored social housing. It was the government that messed it up forcing people into private rental which only pays the landlords mortgage. Change the dynamics. Make it easier to rent socially sponsored housing, take the pressure off the private rental market, that would release more cheaper houses as landlords get out of the market and return us to a more sensible less "i must buy a house" mentality. Most people only feel they have to buy as they are already paying a private landlords over inflated mortgage...
Housing is a multifaceted problem, and it won't be solved easily. We need lots and lots more houses built each year to satisfy the demand, but that won't happen because nobody wants these big estates blotting the local landscape. Younger people want to move out from their parents house to live independently so will rent a property but then be unable to afford to save. Far too many immigrants coming into this country who qualify for hangouts and are entitled to a place to live before councils consider local population. I believe in the rest of Europe and elsewhere in the world most people actually rent and don't buy, but in the UK we want to own a house! I don't think there's anything wrong with that, but it's a mindset instilled in us from a very young age and is seen as a part of growing up, but why do other countries think the opposite? Can't blame any landlords for investing in properties as it's been a good investment for hundreds of years so why not. We don't have a very good future ahead of us if we have to live off just a state pension, that the government's seem to want to play fast and loose with the funds that should be put aside and ring fenced. I think that there should be more apartment style buildings build to accommodate more people per square mile, but built to a high quality and at reasonable rents, possibly subsidised, but for people to use as a stepping stone so they can leave the family home but still manage to save for their own house. And I do also think that interest rates charged by mortgage lenders should be capped. God knows they make plenty of money as it is without milking it for the people can afford it the least. And finally stamp duty! Why is it that we have to pay out a lump sum of money to the government when we buy a house, when we pay so much tax on the money we earn in the first place before it even gets to our savings account. We get taxed and taxed and taxed. And the benefit brigade get all the perks for free for being bone idle, and the people who work hard to get ahead are constantly being pulled down.
How about doing away with Air B&Bs and second homes so that more properties become available. I suspect there are more unoccupied properties out there than we imagine. If their owners wont sell or occupy them then I think they should be bought by government/local council and sold on.
This is silly no one is buying an average house first time they are buying a flat - £143K lent would easily get you a flat in a great amount of the UK
Hi dear I hope you have a lovely day.could you please let me know that how much would be the price of property in 2023 or 2024 thanks
No idea sorry! Can't predict the future.
You need to look further back,Property prices have always been boom and bust, nothing new.
Globally realestate has increased from Wenzhou City to NY. U.K is not unique in that. Devaluation of papee will increase values of physical assets.
Separate issue is 350k landlords BTL less stock highier rents. i
Wow, that was a nice video - well done for the presentation ;)
I think it's madness, though I may be polite in describing it - I think in general, people are believing the idea that if there is a bad turn, the state will intervene (at all costs) to prevent house price decline and house repossessions. Hence, why people are committing ever larger sums to purchase poor quality houses (being realistic, many do seem to require work).
The repercussions for society from this will be severe (building families, etc), but no one seems to be thinking about it, and it is madness thinking that I will be the one changing the tide of what is happening just with my thoughts and actions only.... The amount that you have to spend for what you get is also quite uninspiring - some of the houses/flats for don't have enough space for a healthy and sane existence :/
Hey thank you, put lots of effort into this video so glad you enjoyed. Yeah the prices of some places are outrageous, especially down in London and other ‘elite areas’. Then again, people always have the choice of where to live.
This is the argument that a lot of my professional peers take, that the government will intervene to protect property prices. This has been the case for years though this time around I don't think they can afford to as there is a bigger underlying problem at hand which they really can't ignore. The gamble is basically on whether they will choose to push the problem onto the next government or tackle it head on and sadly there is a history of problems being pushed onto future generations.
@@northyrs7240 always easier to kick the can down the road isn’t it
The wheels are running on Chinese rubber.And the car just failed the mot on balled tires.And that's justifies on the list.The u ow u has come to the base ball bat approach.Called a big depression that will lead to mass conflict.They been pumping money into a project and telling lies to get it completed.And it starts now.
Brilliant video, subscribed
I always get a bit suspicious about the axis cut offs used on graphs. I really wonder how the analysis would stand up if it went back 10-20 years more. I mean I get it that you have to make a video that packs a punch, but I just don't like not knowing. Its just how my mind works.
Problem is sadly what you have not understood and that is that you assume 1 family 1 home and so unaffordability means they should fall. Totally bogus as I personally have double figure houses and most decent lawyers in London live between at least 3 and often 4 homes and many single people have a second home in fact most of Central London and the South Coast are just second homes and that is how it is with those with assets accumulating more and more and those without stuck and more and more hopeless. The unaffordability doesn't mean prices will fall it just means different groups of people are buying. London is falling because there is now a huge supply of poor quality flats that flooded the market and that are terrible places to live and only sold well when the blocks were new and decent properties in London are surging it price as much or more than in any other region of the UK eg most freehold houses are up over 20% since the pandemic. Do you know how many house are next to my houses that are just storage units for some middle class man or some quasi land banked property or some second home that is rarely visited? More than there are family homes with kids near whre I am. In fact I have a flat in a block of mostly housing association places and what I realised is that half the housing association tenants have since bought houses and retained their housing association places as second homes lol
I am a low-income renter, and I pay a fortune for mould and spider-infested studios...Soon to be paying more for energy than for the rent itself..
If would be interesting to see a graph based on % of equity over time.
I think a lot are being part funded by the bank of mum & dad.
I see this as I working for a solicitor. Lots of clients are getting family help. Who are taking funds out of there own home.
Yeah I think you are definitely right. And no problem with parents wanting to help their kids. I think without help - so many couldn’t get on that first rung.
I think this would be valuable data. It is commonplace now for parents who can afford to fund their children's deposit to do so. Therefore it becomes less about the deposit itself and more about the affordability of the parents if there is a high proportion of bank of mum & dad loans.
@@northyrs7240 see this all the time as I deal with money coming in to a solicitors bank account. Drives me nuts as additional ID & ML checks have to be done.
Wish they would just transfer it to the child to send direct themselves
So I guess I can give some perspective as a prospective first time buyer - We're in probably the best position you could be right now - we both work full-time and have a 2yr old boy - we moved in with her parents while saving for a deposit and live close to my mother so we've got no rent, bills, or childcare costs. We've got £20k saved so far in two LISA accounts, plan to have £30k by the end of the year, and we live in the North East where you can still get a decent 3-bed semi for £150k.
So even given those extremely fortunate circumstances and a nice 20% deposit, we're still extremely cautious and worried about the cost of living. My commute alone to my new job is £3k per year and will probably go up next year due to insane rail ticker prices (it's a half hour journey!). Couple that with increases in fuel up to £3k per year, increasing food costs and a whole bunch of other things and THEN consider we have no idea what our interest rate will go up to once our fixed term ends.. yeah it's STILL surprisingly hard to balance the books. We are absolutely waiting on a crash, or at least to see how things pan out while we get a bigger deposit saved.
You've got two groups here though - firstly there's potential first-time buyers, most of which are now dealing with soaring rents, transport, childcare costs, energy bills, food, you name it - combined with stagnant wages. Most of these people aren't in my privileged/lucky position where they can actually save for a deposit. Quite a lot of them live in areas where £150k might get you a cardboard box under a bridge. Short of surprise inheritance or rich parents gifting them the money, they're not even gonna scratch the deposit on a starter home, even in the cheapest areas.
Then you've got a large group of first-time homeowners, who over the past few years have been getting huge mortgages out over much longer than usual terms - no one's really talking about the length of mortgages as a lot of folk are taking out 30-35yr terms instead of 20 or 25 years, which means they both pay more interest overall despite lower monthly repayments. This second group is extrremely vulnerable to interest rate hikes. We're likely seeing a delayed effect right now as most new mortgages are going to be fixed for at least 5 years if they're sensible, so the current sales have some level of buffer - but there's still a lot of people who bought in the past 2-5 years who are effectively relying on extremely low interest rates.
Someone with a £250k mortgage from a few years back on a fixed rate of say 2% and a 30yr term would be paying around £925 a month. If that term runs out next year and interest rates from banks are hitting 4% (still very low historically), they're now on about £1200 a month. Now they might be able to absorb that £275 extra, but couple that with all the other increases in cost of living and you're going to see a lot of people getting repossessed.
The other source of property supply is going to be small-time buy-to-let landlords, who themselves are going to find it harder to make money off their investments due to a combination of new legislation requiring them to invest more money in their properties (and give tenants more rights), and the aforementioned rising interest rates. They can jack the rents up, but they're going to inevitably find the cost of living crisis coming the other way and tenants being increasingly unable to pay. Many are selling up already.
The big concern however is that corporate entities swoop in as cash buyers - completely immune to interest rate rises - and use everyone's homes as long-term rental investments. Which is already happening in some places. Many first-time buyers who can afford it right now are being outbid by cash investors at every turn.
Thanks for this comment. Loads to think about here, I am thinking of doing a follow up on this video to discuss ideas, this comment will feature. Thanks again and good luck with everything.
@@ThatFinanceShow awesome, would love to hear your perspective on these points. This video was quite refreshing really as most made on house prices on RUclips are usually solely from the perspective of investors, and not first-time buyers.
I have 30+ years of real estate experience....There will be a crash for these reasons:- Supply Side....Factor 1.....record housebuilding over past 5 years was necessary, this is because the baby boomers born 1945-1950's still own a sizeable chunk of the UK housing stock, ( as we have an old population) but they will start dying off this decade through to about 2035......so the tight supply we have experienced will swing to high supply over the next decade with an abundance of probate housing stock available ..Factor2... Approximately 850,000 mortgage borrowers have a tracker rate mortgage currently: UK Finance estimates that a rise in the Bank Rate of 0.15 percentage points will lead to an average increase in repayments by £15.45 per month... a lot of borrowers bought interest only tracker mortgage in the early noughties which are now maturing (25 years) , many of these will be forced to sell as instead of paying off their loan they've been spending their equity, and they won't be able to refinance..Factor 3 ...Demand depletion.......with energy bills soaring and cost of food increasing there is simply less disposable income to service debt/mortgages.......looks like a perfect storm and a buyers market will return....add to this the trend of a warming world and there are .lots of reasons to be wary and stay in cash for coming few years......
Thanks for this insight. Supply is so far away though, they haven’t built enough houses any year for as long as I can remember. It’ll take some going for that to catch up.
@@ThatFinanceShow In my area theres been a huge amount of housebuilding, the little town i live in has grown 30% in the past 10 years through property development
@@monkeytennis2482 interesting, don’t think that’s the norm across the country though
SAD NEWS ,even in the 1970,s one had to save hard and sadly give up going out . Bungalow £4, 500 and deposit off £ 650 , wages £ 25 a week , you think times are hard now ?🤔🙃😉
I agree, its really tough being a first time buyer myself, and daunting knowing all the turbulance we are currently going through... surely prices must come down
however one statistic shocked me and its plausible to believe house prices will continue to rise
its mortgage term length... in Japan in 1989 term lengths was expanded out to 120 YEARS
120 years, crazy right. Inter generational mortgages, they are coming here too…
@@ThatFinanceShow crazy to think as the higher prices go the more unproductive debt is developed the weaker structural growth and the economy is
The price of everything is subject to supply and demand.
Very worrying times a head
I feel for younger people trying to get started
My comments; First time buyers do no buy average price houses. They start at the bottom with more affordable properties. After that I was suspicious of your argument, and then you quoted the Gaurdian, at which you lost me. Sorry. You seem like a nice guy too.
The cynical part of me thinks tge financial markets have too much invested interest in keeping house prices high and will do anything to keep them that way artificially keeping them high to give the illusion of greater demand to drive demand.
The way things are at present dont add up, something is rotten.
Totally unacceptable that young people are being screwed by ppl renting out properties . One thing for sure is they are certainly not lords
Free markets at play combined with basic supply and demand dynamics. We've allowed foreign investors to buy our housing stock un-checked combined with not building enough new homes has caused rampant inflation of prices. What 50 years ago where just bricks and mortar in demand with a local population has transformed into a global commodity in demand with pension funds in countries as far as China. Successive Labour and Conservative governments have sold our and future generations ability to live a 'normal' life end enjoy things that we took for granted such as home ownership. It goes much further, my parents had enough spare money to save to buy a car without the need for credit. Now it's just if you can afford the monthly payment! The 'average' UK resident is a slave to capitalism and it's just going to get worse. We live in a meritocracy, no point complaining now just fight for the most income you can and play the game as you see it. Sadly what's right or fair doesn't come into it anymore, they aren't really values that exist in our political and economic system anymore, let along social. Good luck all!
I wonder how many politicians own multiple properties and/or landlords with a buy-to-let portfolio, in short they have a vested interest in maintaining high prices...
I think if any one person could only own 2 houses max it would go a fair way to ease demand and therefore prices. It is becoming less attractive to own rental properties, but all the time property is seen as a safe place to invest ££ there will be investors buying rentable properties. Obviously just my opinion and may be a bit socialist for some people.
Yes absolutely a restriction on buy to let would impact the market hugely. Would be politically and practically difficult to pull off.
Nothings changed, it’s always been hard getting on the ladder. There will be a crash when the interest rate rocket. The market is self regulating. Simple
The market isn't self-regulating though. That's why successive govt's have had to put in things like 'Help to Buy' and 25% ISAs for first time buyers. That's why the talk now if of 50 year mortgages that can be handed on to your children. As soon as we reach the tipping point where prices will level off or drop (the market self-regulating) strategies are put in place to keep it climbing. So no, not simple.
@@mikeakachorlton help to by are scams. A way of government stealing equity. If can’t afford property then property stops selling. The fact that property is selling like now is a clear indication that people can afford. Interest rates despite the recent rises are still at an all time low, chuck them up to 10% and believe me prices will fall. This is self regulation all based on affordability
@@mikeakachorlton spot on.
@@mikeakachorlton Get back to me when we see 10% interest rates. They’ll be an avalanche of availability
Really good video this👍
Thanks Louie - appreciated!