Generation rent, cost of living is so high it's impossible to save for a decent deposit, stuck in poverty for rest of your life unless the bank of mum and dad come into play
The current uni-party paradigm in government would never allow it, they need you to be educated enough to contribute tax but dumb enough to never develop critical thinking, content like this & basic financial education underminds the latter.
Definitely, I’m in a long term relationship but I don’t want to have kids until I’ve got a stable housing situation. It’s been bad enough financially having pets during these times let alone having kids!
Of course. I never wanted kids and neither did my mrs. We bought a house last year and as soon as we did we both changed our tune. It’s probably the sense of stability. After all these years of saving (we’re both around the 40 mark) we’re finally stable in where we live. 20 years too late when it comes to having kids though.
Could you do a video on Shared Ownership? It is probably my only chance to buy a property but the whole idea of only buying a percentage and having to pay both rent and a mortgage is really putting me off. Would love to hear your thoughts on if it is worth it
You should see the TED talk from years ago about immigration with gum drops... It's literally pointless to bring people in by the millions as they are multiplying in their own countries by a rate that is not even a drop to the amount we bring in.
I think a good personal example is my parents were interested in buying a holiday home in wales in the 1990s which was 40,000, which was is a lot of money. Although below their yearly combined wage. Now that same property is worth 270,000 pounds and is over double their combined wage and they are both in higher positions in their respective employment than they were back then. Of course them missing out on a holiday home is much less of an issue than the locals who will not be able to afford anywhere around there. Reducing the number of local people which strains the local economy massively and a much worse quality of life for the propel who do stay.
Great vid. I bought my first place in Feb (lil 2 bed in the south) and have been really contemplating how different the future is likely to look compared to the last few decades. I think the boom is going to slow down somewhat. That being said, I'm immeasurably pleased I managed to snag my own place, as a single millennial no less. Ultimately, I always had the goal on the basis that I didn't want to be under the thumb of a Landlord, and that I'm building equity and that the money I pay every month is actually going somewhere.
I live in a council house in a small rural village in Scotland. Would love to buy my own home and I have enough to do so, but everytime I run the numbers it puts me off. Currently paying
@@shabbos-goy9407 I'm investing the difference between what my rent is Vs what a mortgage would cost me as an extra into my portfolio. Equities will outperform houses IMO. So the money will be there if I need to buy a house. Alternatively, my portfolio should be able to fund my living costs including rent.
buying is always better in the long term. in the short term, yes - your mortgage might be bigger. but that mortgage will be roughly the same in 10 years... 20 years... ( actually, it normally gets lower as your equity gets larger). The rent at the same time? it'll be far higher. ...and, added bonus, you'll have a big chunk of capital if you can, then do it.
I managed to get myself onto the property ladder (I worked myself to sickness to have enough money working >40h weeks with overtime) . At 24 years old, I managed to get a property. Two years later, the interest went up, meaning, I now can't afford to move into a house, and when I do move, the fees are what scares me off, £7500 in stamp duty just thrown away to the Gov... All because I couldn't afford the house in the first place. We're being penalized for wanting to move on. I'd happily sell my apartment at the same value I bought it for, but due to stamp duty, I'm left, selfishly, wanting more to pay for the stupid stamp duty. 👀👀
As a British native I don’t feel I can afford children, mainly due to the financial burden of accommodation. This causes decrease in birth rate. We then import low skilled immigrants to make up for low birth rate that further increases costs of accommodation. Reduce immigration and the native population will have more children?
You’re making a very valid point. 700 people arrived on rubber boats yesterday. Just in one day. As a British native my husband, and myself, we had 2 children because that’s all we could afford. Looking back if I was at that age again now, I’d have one or none. Even 2 is just the replacement rate. Responsible people don’t have children or have less children because of the cost of living, and accommodation is a significant factor. So is taxes, working hard isn’t rewarded because you just pay most of it in higher taxes. That too puts people off.
It's not about the cost, the current western culture is rotten and highly likely doomed. The people with values that align better with the procreation will replace it. That's why there is such a scale of immigration in basically all Western countries I guess.
This argument would be valid if reducing immigration would lead to higher wage and lower housing costs for local people. However, it is difficult to square the circle unless you believe the low skilled immigrants have taken up the higher paying jobs in the economy. Yes, immigrants would have increased the overall demand for housing in this country, but once you had a look at the living conditions and how much those people who are just "off the boat" are paying for housing, you might reach other conclusions. One solution is to create a two rail housing markets (like the one in Singapore). Foreigners are only allowed to purchase expensive condo/villa with extremely high stamp duty, whereas locals can purchase HDB flats are more affordable prices.
@@fan_Ginkyo the formula is very simple. Less immigration = less demand on housing. Also we pay millions weekly to spend on the new arrivals, that money all comes from taxes. We could have higher wages if we paid less taxes. Not really rocket science. Less demand on housing = house prices can stop going up We pay less tax and keep more of our wages - our take home salaries go up.
As an American, I love your videos Damien. Even when your videos are specific to Europe, they are great. You are an amazing story teller. alright now F*** off I've given you enough praise.
Can't deal with all this speculation hoping it'll get better. In my 20s and planning to leave the country before I turn 30, seems like the way to have more control over my future 👍
I’m 47, my friend leave this country. Yes there are opportunities here but there are opportunities elsewhere as well, this country is essentially broke and has been for many decades. All that Britain appears to be able to do is keep paying interest on national debt. You and I as tax payers are the ultimate backers of this debt and all that can be done is to keep devaluing the £ and in turn your efforts. Go.
@@sjt627 I live somewhere where zero of my friends can live close to. I don't care about equity. I want my community back. Everyone around me is rich(er) on paper only.
I had a look and the Dow Jones Industrial index between 1952 and today is around x153 difference, not far from your x151 for UK house prices. Also I would say saving for a house deposit in a currency which is devaluing by the day is like trying to fill a bucket of water with a hole in the bottom, anyways good luck.
Yes Dow lo es goes head to head with house price. But Dow you can just contemplate it grow. Instead a house you would have made a life in it. Growing kids and grandkids. Or renting it out.. That would be a lot of money in all those years
Hi, I’ve been following your channel for a while now and just wanted to say how much I love your videos. You don’t just educate, you entertain - I loved the peas 😂. Some channels just give boring monologues, but you put so much more work and effort into your videos. Keep up the great work. BTW I’m also enjoying your Making Money podcast 😀💷
I was always baffled when I first came to London how low its overall skyline is given its size and population trends.Not a fan of the idea of living in a tower block for sure but even something a few storeys above the predominant terraced houses seemed like a trend begging to happen.
In central London there are very strict viewlines to avoid blocking historic buildings, that's why we have such funky shaped skyscrapers - all to avoid blocking viewlines. London also sits on, aptly named, London Clay, which doesn't lend itself to tall development without the use of piled foundations as clay can change volume through the year as moisture levels change so it would be really bad if your skyscraper started leaning because part of the soil has swollen in one area more than another. That's why most higher rise developments are generally either very high end, where the costs to build can be recouped, of further out of the city where planning viewlines aren't blocked
Rory and Alastair (Rest is Politics) have both agreed we need to be open to gentle density like our some of our European neighbours have been comfortable with for decades.
They are in some areas of London, although not improving infrastructure at the same time, so they are easing living pressure (often with build to rent so you can't either buy the home) but putting a strain on everything else. I'm more baffled by why they are allowing the population trends to happen in the grand scheme of things.
Not really. We had tower blocks, and they were in many cases poorly built, poorly maintained, and were knocked down. Most of the towers in London are empty, because those properties have been bought by investors just riding on the hope of asset price inflation. There's no need for apartment blocks, when land use is so poorly managed. Medium-density housing is far better for both those who live in them and the owners. But we don't have enough construction workers to build even those. And there's problems with landlords properties extorting leaseholders. Indeed the last government promised to get rid of leasehold, but that promise was broken as landlords run the Conservative party. And then there's Grenfell... So more tower blocks are not wanted. Everyone wants the security of freehold, and I can't blame them.
Will property prices keep rising? Yes. Simple answer. The UK property market is given anti-gravity powers by central and retail banks and Government housing and immigration policy. The supply is artificially squeezed, the amount of available lending is abundant and the number of people wanting to borrow to buy is ever growing. It's a pyramid scheme on which the nation is built. Next question.
Also big corps are buying them up as assets, they can afford the higher prices as the return will come over a longer time horizon. To compete with that we are now looking at multi generational mortgages. Land (that the property sits on) is a finite resource and therefore has no upper limit on its value. Having said that, the rate of growth will likely slow. One of the big drivers in house prices was it being normal for the majority women to work full time. This meant people were now competing with 2 salaries rather than one. We have likely seen that increase happen over a long time as first they joined the work force and then migrated from low paid jobs to more and more professional and executive roles, giving the couple much more money to compete for houses, hence driving the prices up. I don't t
I don't think you can import enough immigrants to offset the demographic decline. And if you did your country would resemble sub Saharan Africa, since that is the main source of the imports
@@Jaime-eg4eb I suspect that the declining birth rate is due to few people being able to afford a house until they are in the 30s and needing two wages to pay the mortgage then.
How do we buy houses? With debt. Massive debt. What is that debt? Creation of money from thin air and airdropped into the money supply. Every time we buy a house, we immediately contribute to inflation. So until we all stop buying things with debt, house (and other hard asset) prices are 100% increasing foreverrrrrr. The great house price crash is never coming (in nominal terms), last one to buy is the loser.
Absolutely, but debt cannot continue forever. Sooner or later, it becomes unaffordable and then there is a reckoning. This has always happened in history for one simple fact - mathematics. Nothing that we know of in the universe can grow forever, and interest compounds so it speeds up every faster until it's upon us, and the reckoning catches most people by surprise.
Private debt is backed by a creation of a good or service. Increasing money in circulation isn't a problem as long as a tangible product is created that can back the increase in money. The issue is public spending.
@@craigcrowther8074 New housing supply as a % of current housing stock is around 1:5 in terms of of financial transactions (probably even less). So whilst what you're saying is true, it's applicable to just 20% of the UK's housing market sales. The remaining 80% is new debt to facilitate resale of existing stock.
In real terms, UK house prices have gone sideways since 2000. Prior to that, the growth was on the back of increased availability of finance and more dual income households.
I don't follow your logic, I'm afraid. UK house prices went ballistic between 2000 and 2007/8. However, I agree that since then, with artificially low interest rates and inaccurately recorded inflation data, prices have more or less gone sideways.
The South East had high house price growth since 2012 until 2022 (e.g., 2x value vs 1.3x inflation), and because the media is SE centric, this is what was reported. Elsewhere, houses rose more in line with inflation. Indeed my current house bought in 2023 was cheaper in real terms than the previous time it sold in 2007, and that is in a fairly warm but not SE market.
Something that is often overlooked when it comes to looking at prices of individual things over time is what income is left after buying everything needed other than that item and what that left over cash can afford (e.g pension savings, emergency funds (and what that buys) and leisure spending)
Just saw a video on another channel about homes for sale in Italy, which showcased a 3-story townhouse in Abruzzo for 29k. It needed some plastering and a kitchen and bathroom fitted, but the price just seemed pea-nuts compared to UK house prices. I've long since given up the idea of getting on the housing ladder. It will really take a lottery win to make it a reality.
@@vldgrs It depends. The ones on the channels I watch are NOT the 1-euro homes in remote villages that need a complete rebuild. If you look at channels like Rossini&Co and A Home in Italy, there are some nice gems, often under 100k for at least 2-3 bedrooms. If you can work remotely, it's worth considering the move.
@@notmenotme614 sure, because they are so charitable and eager to make giveaways. Our maybe because of the market demands... Italy is a difficult county to live for an average family, it's that simple.
Second home ownership plus multi property owner via landlords have added to the increase in demand and value, hopefully with the new laws over landlords there should be a small but significant increase in property coming back to the market. This should help bring prices down to a much more manageable amount but only interest rates stay roughly the same, which unfortunately I can’t see happening.
@@rene-rv6pp reductionist reply! almost every thing is speculation, especially this video that being said in the month since I commented on this video there has been an increase of second homes coming on the market especially here in the southwest.
Really brilliant work as always Damo. I’m starting to understand things a lot more now. Just recently bought my home and I didn’t do it to make money I bought it because rents and landlords are seriously taking advantage of renters. I also did it so that I know I have relative security. The reason this is a thing - Is people can’t afford to have kids anymore. Children a very expensive and younger generations don’t want to have children to give them a crappy standard of life. Unless prices come down. It’s just going to stagnate all round.
That's why extinction is allready in place. Well I mean the original population. That's has been reduced to a little percentage of the toral population. There is nothing to do about because all these are economic waves that comes from the highest leves
Of course they'll keep rising, its simply a case if how wide a viewpoint you take. Nothing goes up in a straight line. Hose prices will be higher over time.
I'm a property owner but think it's incredibly unfair on the younger generation how it's almost impossible to buy a property if they are in average circumstances. Mass immigration has been a big mistake and successive Government's have failed the country by not having more family friendly policies to encourage a stable population. This constant obsession with national economic growth doesn't align with happiness. We are now seeing young people either living with their parents for longer and longer or having to spend most of their wages on rent and not being able to save for a home, it's just wrong.
Mass immigration wasn't a mistake. What was a mistake was not planning for it. And that's down to short-termism inherent in governments that last only 5 years. What we need is to decouple long term strategies away from political cycles and put it into the hands of planners. Have political oversight over them, but not political control.
@@CuriousCrow-mp4cx Of course mass immigration has been a mistake, just how much more populated does this country need to be. There is no planning and there won't be either, everything is getting overburdened from housing to infrastructure because Government's have decided to import almost 10 million people in a couple of decades.
@CuriousCrow-mp4cx mass migration was a mistake, they are not integrating and if this carries on we will have more and more divided communities within the UK.
@@johnbuffaloiam9741 speak for yourself, almost 10 million people in two decades, the numbers don't lie. You make it about origin, I'm talking about numbers.
Close to buying my first house with some friends. A house we plan to rent out in the future but the news has been scary lately, this makes the whole purchase feel slightly un-easy but we’d keep the property long term and as you said, that will pay off. 😊
It's is simple laws of supply and demand that mean in the long term house prices and rents will continue to go up. Yes there will be dips here and there but the overall trend will be upwards. Housing is like anything else, if you have something that is high demand but low supply, then the price goes up. Sad truth is you can streamline planning all you like but there simply isn't the capacity in the house building industry to build enough new houses to even keep up with the increase in demand of an increasing population let alone tackle the backlog of the millions of homes we are already short of. We simply don't have the numbers of bricklayers, plumbers, electricians, carpenters etc to keep up with the demand for new houses. This means restricted supply of a thing in high demand. Hence the price goes up. A young work colleague of mine recently bought a small new build. It is costing him all but 50% of his net wages per month just in mortgage repayments. People are just going to keep extending themselves further and further to get on that first rung of the housing ladder.
They need to solve the supply problem. In the 1950s the got industry to churn out pre-fabs. In some places like Ipswich they are still seen as desirable residences.
@@MrDuncl yes, on the continent they use prefab much more, but it’s seem as less desirable here and building regs are mostly against them. They could change the regs but then the traditional builders would lose out as houses would be imported. Maybe there has been lobbying to prevent this. The old bricks and mortar houses seem too good and in America, many houses are timber. With good fire protection these are viable in the U.K. also. So a house that lasts 50 to 100 years from timber should be considered. Most flats are steel frame with brick clad and this is another option for houses that can utilise a cheaper prefab construction. There’s no way the Gov will build enough houses the traditional way
The supply is artificially restricted by people purchasing multiple properties as assets. This means those with capital squeeze those without. Restrictions/Dissincentives could be introduced to make multiple property ownership unattractive as an investment, increasing supply and reducing costs.
I think you missed the point of the video Stuart. It's not about whether prices will continue to trend up, barring any significant market corrections of course they will, and the video doesn't suggest otherwise. It's about the rate at which they trend up, and whether it's reasonable to expect the performance of the past 70 years to be matched over the next 70 years. And the simple answer is it pretty much can't possibly happen unless wages somehow rise astronomically.
This question has been asked since the late 90s when prices started rising rapidly. Everyone said they couldn't keep rising like that for long. I really wouldn't hold your breath on them dropping anytime soon.
You sure that isn't the media just making up more stuff in the information void before a budget? Although I will say that 99% of people don't get anywhere near their 20k ISA cap or 60k pension cap. Dropping them to 10k and 20k would not affect the vast majority of people (although I would argue that they should have a longer window of previous year caps to use, e.g., 3 years for ISAs and 5 for pensions instead of none and 3).
Unfortunately the gov won't offer incentives for people to get into the trades. If instead of burdening the housing market with an influx of people they could be spending money on getting economically inactive citizens into the building sector.
If they're economically inactive, then they're lazy and won't be very productive. Judging by the quality of native born tradespeople I've dealt with later, I'm wishing the Polish would come back!
Thanks Damo, really enjoyed this one - especially as I'm house hunting at the moment and getting to grips with the prospect of taking on a mortgage for the first time.
What seems to be a big misunderstanding in my book is that the whole mess of housing and immigration is a revolving door, there was a huge increase in housing prices from around 1997 pretty much when Blair opened the countrys doors to mass migration. The huge increase in housing costs has completely put the younger generation off from having children due to the costs of living and being able to afford a home. Couples not wanting to start a family till they can afford a home but now instead of being able to afford a home in their early twenties they arnt able to buy a house until the mid to late 30s. So due to a high migration rate we now have a low birth rate, which in turn they say we need more migration for jobs. Basically the government havent got a clue what they are doing
idk this sounds like you did 2+2=3 when there are tons of reasons why people aren't having kids anymore. economy or not being able to support is one of them but it's not the definitive answer nor is migration entirely to blame. there are still plenty of people having children who rent, in contrast all my friends own properties and do not have children. people are more content without the stereotypical nuclear family and it tends to be the more well off and educated who are just now choosing to not have children, especially women established in their careers. by far the opposite in recent few decades lower classes in the UK have historically been the ones to have more children. migration for jobs has been a long running thing in the uk happening since wartime as opposed to some new phenomenon, there were periods before as you mention such as 1997 increase in migration, or 2009, etc that didn't stop people from having children so it is more just a general society shift though yes of course cost of living plays some minor role in it. it's just never that simple imo and it's easy to just blame migration for absolutely everything. but personally and speaking to my friends in my circles, it seems to be a similar general western world increase in less desire for families and children and women no longer wanting children (south korea is a good example) and us living in a more self sufficent society where we don't care about relationships anymore and just fending for ourselves. modern society has become less of a society and more 'selfish', which in turn results in more reclusivity meaning less relationships, less families, less desire for children, more desire to just exist individually.
I completely agree. In the 1970s a single wage doing something like plumbing was enough to buy a large house in an upmarket Bristol suburb and support a wife and four children. I have just described a schoolfriend's family but that was the norm back then.
Let's get real. Nobody can tell what the future brings. And a government running for only 5 years, is naturally only able to have a short-term effect. The problems we have are a combination of long and short-term factors, which no government by itself in 5 years can change. And also, we must remember that the electorate has changed, because neoliberalism wasn't only an economic experiment, it was a social one too. From the time social housing was broken up and retarded, the effect has been to condemn families unable to secure earnings growth large enough to buy a home, to staying that way in the following generations. In short, neoliberalism has seen the biggest transfer of wealth from the employed to the asset wealthy. And even the lucky ones who did buy, with the sub-inflation wage growth and the loss of inflation-proofed pensions, are facing having only the roof over their head as their only appreciating asset. This means that eventually more homes will be owned by the asset wealthy than the asset-limited workers simply by factors such as death and generational transfers leading liquidation of that one asset, i.e. selling the family home. Neoliberalism has in effect created economic apartheid. If the only asset you have is a pensuon, and your wages aren't keeping up with inflation, you will be stuck either renting or living with relatives. So starting a family will be either very much delayed or impossible. And just stopping immigration won't prevent that. Why? Time. Even if we had a baby boom right now, those additional workers won't begin to appear in the labour force for at least 18 years, and so won't contribute to economic growth or tax revenues until then. So, it has taken decades to get to this point, and it will take decades of sustained change to reverse these demographic changes. And... The earnings of workers needs to exceed inflation for a sustained period of time for them to be able to get on the property ladder. Is that likely to happen? Well, no-one can be sure, so this is a guess, but unless wage growth becomes positive for several decades, nothing's going to change.
Wages have not stagnated since 2008. They've fallen sharply. They've stagnated only when tracked against inflation. But inflation does not include the rising price of purchasing a house outright, nor the rising price of land, nor the rising price of S&P 500 shares. Everything that constitutes actual WEALTH is conveniently excluded from the inflation calculation. Economists know this, but actively choose to use misleading terminology like 'stagnated' because they don't want transparency. They believe the system works in our best interests - despite it surreptitiously slashing our wages. They believe this system is threatened by an incomplete layman's understanding of it. They lie for our benefit as they slash our wages.
Very good video. I think you need to factor in annual costs of running/maintaining existing properties. That house purchased for 5k in 1970 would have had a mortgage at circa 15%. It may have been remodelled 2/3 times. It may have had a an extension/loft conversion/new roof. Leaseholds flats would have paid ground rent/service charges for 54 years. Renewal of lease term etc. Lots of cost which don’t necessarily get factored in to the “growth” numbers.
I honestly think that a lot of these things are being managed so houses only lose value in real terms, but not in absolute terms, so we don't get a negative equity problem like previously (or more likely, so the government doesn't get too unpopular with falling house prices). House prices will increase, but under inflation, for a good few more years to come.
One thing I rarely see people talk about, not even this channel, is that the imported labours are also part of the net migration too. They are not like coming to work from 9 - 5 and then go back to where they are from after work. They needs housing, school, access to NHS, access to public fundings, and using public facilities. The more labours you import, the bigger the problem becomes.
Yes. Foreings are hardened in the sense that they can be poor and still have 3. Or 4 child's. I can't imagine a modern guy used to no effort and be all ways compfortable doing that. He is just not capable of any sacrifice
I brought my house in mid 2002 when according to your chart was the crossover of house price rises and interest rates falling. I paid 100k and now worth 500k, nuts!
@@aerial558 So what, if it's affordable do it and then when it becomes easier, do it again. Thats how you work your way up the property ladder and one day you will own it outright.
But it's not affordable. You're assuming that you'll be able to buy something similar down the line if you move, and that isn't true. Definitely not in a high inflation part of the economic cycle. So good luck. You'll need it.
Hi damien love your videos would be interested to see a video discussing what you think are the most likely changes in the october budget and how they might impact wealth creation
Growing the population by net migration of low skilled workers (this is not an insult, it’s a description, nothing dishonourable about it) will not solve future tax needs because great numbers of these are not net fiscal contributors. Need investment in technological solutions to deal with many of these issues instead.
Policy solution triple whammy is planning reform (time to Build), skills and training and a more sensible migration system. Then maybe houses will become homes again rather than speculative growth assets
In the 1970s two big concerns (often on the news) were "The Money Supply" and "The Brain Drain" (to places like the USA and Australia. They don't seem to be bothered about either now.
It’s no coincidence this happened when we went away from the gold standard. You see this in monopoly. Eventually you pay a whole lot because there is more money in circulation. You don’t feel wealthier though because you’re not.
Not to mention that it was government policy to increase house prices as an indicator of economic success. We used taxes to artificially increase the value of housing.
I bought my house in 2005 and it has barely kept pace with inflation against the price I paid, let alone with the £120K of improvements I've done since then. However, my index fund portfolio has generated enough over that same period that I no longer need to work (and the mortgage is paid off). I never include the value of my house in my net worth calculation.
Many people still think houses are a great investment. Index funds have done far better for me. There is an element of opportunity cost in housing. Having a huge mortgage makes it hard for many to find money for investing in markets.
@@philipjamesparsons The issue is that no building society will lend against an index fund. In contrast in the noughties anyone with a £10K of savings was being bombarded with the idea of taking out a BTL mortgage and building up a property portfolio.
I'm currently looking for my first home and this is exactly the reason I don't want to clean out my investments and max out my mortgage. I'm going for a property price that's roughly half of what the bank will lend me, I'd rather use the rest of my income to overpay the mortgage and invest in an ISA. It baffles my friends who are in the same position and are now living paycheck to paycheck to pay their mortgage
All depends where and when you bought. We bought in London zone 5 in 2010 when the market was cheap. We could sell now for double if we wanted to sell. Over 200k difference.
I bought an apartment in Rome in 2014 for what was a fair price at the time. Meanwhile, the area became better in every parameter including a new metro line. The price of the apartment today is exactly the same as 10 years ago becoming the worst investment of my life by far. Take home message: Property market is high risk and highly unpredictable. Also, price does not always go up
If we wanted to fix it we could stop taxing productivity and switch to land value tax to lower land price inflation, but we (collectively) don't, people want affordable housing AND property to build wealth, which are ultimately irreconcilable goals as it's a zero sum game which causes damaging boom and bust cycles (18.6 years on average as per Fred Harrison).
In spent 1989 to 1999 in a house that wasn't worth what I paid for it. It took Tony Blair promising "things can only get better" to break the eight year decline in prices. There is a huge amount of "positive feedback" in the housing market. If you don't understand "positibve feedback in a control theory sense look it up on Wikipedia. Interestingly the first photo in the article is a queue of people wanting to withdraw their money from Northern Rock.
That is why capital gains tax is a con. No inflation effect is taken into account against the gain. I know we get an allowance per year, but they are still effectively stealing. That's why the ISA allowance is so important. Thanks for your videos. It's helped me educate myself on maintaining my wealth
@@SkamGame your comment was very uncalled for. It’s not a gain when you lose significant monetary value via inflation at the same time, so OP is making a very valid point.
I hate that way of framing the increase in property prices, it's so insincere. Inflation increased the property prices by ~30x in the past 70 years and 'real price change' increased them by a mere ~4x. You'll see the issue if you reverse the "Inflation accounts for £45.000 of the £242.000 house price"-statement, because by the same logic 'real price increase' would account for only £8.000 of the £242.000 house price (£242.000/30).
That section was dealing with housing as an asset. It's the correct way to look at the problem, because nominal prices don't reflect real affordability. Look at it like this. I've lived in the same area since 1971. At that time, a one-way bus fare into town was £0.02. 53 years later, the same bus ride costs £2.50. My wages never grew to the extent that this bus journey was as affordable as it was in 1971. Why? Inflation combined with below inflation wage growth. Same thing applies with houses, and that isn't going to change overnight, if at all.
Somehow, older houses tend to have been built better, just see the state of any new build... but yeah it's insane how expensive it is just to have a roof over your head
The reason that everyone strived for home ownership is because of appalling renter's rights. People wanted to own their own place, because they do not want to get kicked out on 2 months notice. This created a situation, where renting is not a life style option, but a transition period until you can afford your own place. This mentality is so ingrained in Britain, that it feels impossible to change, but it does not have to be like that, as it is a case in different countries.
In regards to housing, my town is filled with empty houses that are left to slowly deteriorate. They’ve been empty for years and make the area look ugly. Despite this, a few minutes down the road they are building new homes. Anyone know why this is allowed to happen? I assume wealthy people own these house and just don’t care what happens to them 🤷♂️🤷♂️
If you had used 1kg bars of gold (instead of plastic blocks) , you would find a decrease: In 1970 then 10 bars of gold buys a house. In 1988 then 7 bars. In 2024 you would only need 6 bars to buy the same house! I am sure this would make a good broadcast for you. 😊
It ia all about timing, both gold and the stock market have been something of a rollercoaster....when you enter the market and sell is cherry picking. However imo gold today unlike many other assets looks a good long term bet.
When interest rates go up, house prices go dowm as the total amount borrowed has to adjust the new reality. If interest goes dowm, its cheaper ro buy. The sellers raise prices to take bite on the available profits. It os early to see a proper trend of pricing falling. If wages or populattion fall a lot, the pricing would really fall (that is seem in some places of southern Europe, the us rust belt and Brazil for exemple).
I've spent the past decade living abroad and began to feel I was in exile, because UK house prices shot up in my absence. By the skin of my teeth, and thanks to all kinds of serendipity, I've at last found a little place to buy that I can afford. I can't tell you how excited I am to "come home" again. For all its problems, the UK is an island full of magical places and astonishing people. I think my lesson learned is that when you feel safe and comfortable somewhere, don't take that for granted; and when you do find your happy place, four walls and a roof over your head is enough.
One of the biggest issues we have in building new homes is planning restrictions in the UK. In the 1920s you could basically just ask the local council about a permit to build almost anything and 95% chance of getting it. The over the 20th century the dept of T&CP put in more nad more regulations, more green belts, more eco concerns, more space concerns to the point that it costs hundreds of thousands just to get a permit for a few houses and that has to be recouped by selling the new properties. My mate has been waiting 2 years for the local council to progress is request to add an extension to his house, he's now so pissed off waiting he's started writing to his MP and consulting legal people to force a decision from the council.
Can we add in the effect of empty investment properties that are a blight across london and other major cities? The criminalisation of squatting domestic property (David Cameron) led to property investors not needing to rent them, to sit on them empty to take advantage of a peak in prices without the bore of having tenants to evict. This created a shortage of rentals, pushing rents sky high and in turn making buying a more attractive prospect. Thus pushing the values up with a flood of new buyers. Southwark alone has 25000 empty properties. I’m not saying we should allow squatting again but there should be more measures and penalties to force homes to be filled and used. It’s not gold or stocks, housing is an essential component to life and a functioning economy. We lost sight of that.
Compare salaries of Architects and Engineers to that of IT and Finance jobs and you'll quickly realise why it's difficult to find construction professionals when their wages have remained stagnant over the past 20 years. Baring in mind that these are some of the most difficult degrees to study and jobs to perform.
Peas in my bowl, green and bright, They're like tiny investors, full of delight! I planned to save them, grow my stash, But they keep slipping away, like disappearing cash! 'Invest in peas,' they said with glee, But the property market's the place to be! The peas bought land and built a home, Now they’ve got equity in a garden dome! So next time you're cooking, think twice, please, Your next financial advisor might just be peas! (I had a chat with Ai) 🤣🤣🥰
I think you missing the point- many people not just can't afford to buy they don't want to buy overpriced crap! Half of what on sale is just unfit for human habitation! And the prices for simple homebase/b&q renovation and the labour is just ridiculous. Recently I found the 2 bed flat I can afford to buy but I was quoted £80k.for renovations and it's just killed the deal for me. Ripoff Britain...
Anyone can buy their own home now. The outlook in the 80s was that you had to find your own way and the bank of mum and dad didn’t exist for anyone but the rich. But you had to work 2& 3 jobs, buy a run down place ( I had to change the floors, roof, plumbing, wiring , kitchen, bathroom & windows) in a bad area; then leapfrog to a better place. Interest rates were about 15% and you could easily go into negative equity. So it was risky. Yes, earnings to house prices have changed, but I think younger people generally expect to own a house and expect it to be nice, in a nice area and to pay less for it comparatively - that’s unrealistic. I sacrificed holidays, leisure and my youth for what I have today and I’m not ashamed of it.
I do hear you, but I don’t think you understand the current situation. The wage of 2-3 jobs vs bad area (and associated poor job opportunities) & cost of materials (for refurbishing), add on deposit size (related to those 3 jobs) isn’t an option as food/gas/insurance inflation with stagnant wages, physical drag tax etc are destroying any disposable income. Your thinking is out of date, just reconfiguring is needed, not apologies.
@@Bfg12327 I did it with no knowledge of how to renovate a place. Plus I needed a 10% deposit and mortgages were very strict on borrowing. Not all houses are hundreds of thousands of pounds. There are places where you can buy for £50k for a terraced house that’s habitable, so it is possible. My wages for my first house was well below the poverty line ( pre minimum wage), I’ve bought property since and have multiple properties. I know how much places cost & the bills etc. So my view is that some things are easier, some harder but it is achievable still to buy a house.
@@Bfg12327 no he's right. The youth have incredible expectations. you can buy a run down terrace in Burnley for £50K and commute anywhere in the country whislt balancing working from home.
I am only 4 mins in but I hope you also mention the quality of houses too, the cheap lumber lego houses that are sold at a premium today boggles the mind. Hoping to buy a house in the near future when my gold/silver/btc allows but I won't be touching anything built after 1990
Price is determined by supply and demand. Demand exceeds supply due to demographic growth ( 30% since early 1950’s) and housing stock is increased only by 1-2% pa. Therein lies much of the problem and we have a finite amount of land. Property prices increased dramatically from the 1980’s with the financial services revolution and the availability of credit unleashed then. Property inflation is quite separate from general inflation.
It's hard to find a job in places with affordable housing. Many houses are empty in areas where the local economy is weak. Buying a cheap house is pointless if you have to spend a lot on travel to work or shops. Our economy is out of balance and not working well. Manufacturing used to provide jobs everywhere, but services, especially finance, don't. Artificial intelligence will likely take away more jobs in services. Our planning for industry and the economy has been poor. Markets react to things, they don't plan for the future. That's why houses in Sunderland are so cheap. If you don't mind travelling far for basic things like a shop, doctor, or chemist, then buy one.
Property prices have hardly budged. They are still pretty close to where they were pre interest rate increase back in 2021. Well in the south east anyway.
Great video Damien. For years landlord's, like myself have been bashed by governments and blamed for increasing property prices and rents. Landlords have been selling up in their droves for the past few years now. So where's all these cheap houses?
I've had my house now for 6 years and I am happy to say that the value in just 6 years has gone up by 41% I'm over the moon with that increase, For me it's not the resale but the mortgage as the LTV will go in my favor and give me a better rate when I remortgage. I did start paying a little extra off here and there but after watching yourself I have now changed that up and buy stocks with that little extra instead :)
As far as I can see, this is only heading one way: to a quasi-feudal renter system, with housing increasingly owned by a powerful few. In this case, corporate landlord companies. Blackrock in the US are already on the march, and Lloyds Bank are seeking to do this here. And, even if banks upped the lending amounts, I'm not sure I'd want to take it. Because, you still don't own anything, and owe everything. The only sign you should look for is houseprice-to-earnings ratios. Everything else is just a debt prison.
The growth in house prices and living costs in general vs wage growth has really pea'd me off.
Generation rent, cost of living is so high it's impossible to save for a decent deposit, stuck in poverty for rest of your life unless the bank of mum and dad come into play
@@andy_xtr3861 Do what my ex wife did, marry someone who already has it all.That's why she now has a nice paid for house.
Took me a while 😂!
“You will own nothing and be happy” - cars and motoring next
@@jonathanpadgett8258 yes you will own nothing but you won't be happy.
Your content should be used in schools. Simple, engaging, spot-on economics.
@@jamesforeman5744 thank you 😊
The current uni-party paradigm in government would never allow it, they need you to be educated enough to contribute tax but dumb enough to never develop critical thinking, content like this & basic financial education underminds the latter.
The government/s will never allow that. They need to keep people stupid enough to keep voting them back in.
I think high house values is one of the factors affecting birth rates. Certainly influenced my life and relationships.
Definitely, I’m in a long term relationship but I don’t want to have kids until I’ve got a stable housing situation. It’s been bad enough financially having pets during these times let alone having kids!
Of course. I never wanted kids and neither did my mrs.
We bought a house last year and as soon as we did we both changed our tune.
It’s probably the sense of stability. After all these years of saving (we’re both around the 40 mark) we’re finally stable in where we live. 20 years too late when it comes to having kids though.
And older and crass people will say people in Africa or in the past had lots of children and were still poor.
Agreed, I'm not gonna have a kid if i can't afford a home and am constantly keeping up with increasing rent
Its all by design orvwe woukd be offered much better taxes and support to have families.
Could you do a video on Shared Ownership? It is probably my only chance to buy a property but the whole idea of only buying a percentage and having to pay both rent and a mortgage is really putting me off. Would love to hear your thoughts on if it is worth it
Don't envy you having to clean up all those peas. But powerful demonstration
Thank you! Overall I think it was worth it
It pead me 😂
Next time use Pee. Gallons of it
It was an absolute pea take
You should see the TED talk from years ago about immigration with gum drops... It's literally pointless to bring people in by the millions as they are multiplying in their own countries by a rate that is not even a drop to the amount we bring in.
The production quality of your videos is peanominal and I look forward to you hitting 43m subs!
The pea centage rise in cost price! Love it
I think a good personal example is my parents were interested in buying a holiday home in wales in the 1990s which was 40,000, which was is a lot of money. Although below their yearly combined wage. Now that same property is worth 270,000 pounds and is over double their combined wage and they are both in higher positions in their respective employment than they were back then. Of course them missing out on a holiday home is much less of an issue than the locals who will not be able to afford anywhere around there. Reducing the number of local people which strains the local economy massively and a much worse quality of life for the propel who do stay.
I love Peas !
Love the commitment with the peas 🤣
i am still finding them
🫛
Consider it a pod cast.
😂
lksMoney
What northern accent is this? It hilarious 😂 I am from Guildford
The audio quality on this video is amazing well made video mate
This makes me happy thank you!
I cant comprehend the peasy mess you hsd to clean up. Youre srill going to find peas in thst room in a years time.
Great video!
I love your video, what you didn’t include is the impact of inherited property on house prices… I’d love to see you do a video on that
Great vid. I bought my first place in Feb (lil 2 bed in the south) and have been really contemplating how different the future is likely to look compared to the last few decades. I think the boom is going to slow down somewhat. That being said, I'm immeasurably pleased I managed to snag my own place, as a single millennial no less. Ultimately, I always had the goal on the basis that I didn't want to be under the thumb of a Landlord, and that I'm building equity and that the money I pay every month is actually going somewhere.
I live in a council house in a small rural village in Scotland. Would love to buy my own home and I have enough to do so, but everytime I run the numbers it puts me off. Currently paying
What happens when you retire?
@@shabbos-goy9407 I'm investing the difference between what my rent is Vs what a mortgage would cost me as an extra into my portfolio. Equities will outperform houses IMO. So the money will be there if I need to buy a house. Alternatively, my portfolio should be able to fund my living costs including rent.
buying is always better in the long term.
in the short term, yes - your mortgage might be bigger.
but that mortgage will be roughly the same in 10 years... 20 years... ( actually, it normally gets lower as your equity gets larger).
The rent at the same time? it'll be far higher.
...and, added bonus, you'll have a big chunk of capital
if you can, then do it.
@shabos in simple terms he'll be fcked
Buy that house mate And pay it off ASAP You should be much better off unless labour screw you over
houses are not selling at asking prices in berkshire - they are trying but they are reduced before they sell
Asking price is irrelevant, always was.
I managed to get myself onto the property ladder (I worked myself to sickness to have enough money working >40h weeks with overtime) . At 24 years old, I managed to get a property. Two years later, the interest went up, meaning, I now can't afford to move into a house, and when I do move, the fees are what scares me off, £7500 in stamp duty just thrown away to the Gov... All because I couldn't afford the house in the first place. We're being penalized for wanting to move on. I'd happily sell my apartment at the same value I bought it for, but due to stamp duty, I'm left, selfishly, wanting more to pay for the stupid stamp duty. 👀👀
As a British native I don’t feel I can afford children, mainly due to the financial burden of accommodation. This causes decrease in birth rate. We then import low skilled immigrants to make up for low birth rate that further increases costs of accommodation. Reduce immigration and the native population will have more children?
You’re making a very valid point. 700 people arrived on rubber boats yesterday. Just in one day.
As a British native my husband, and myself, we had 2 children because that’s all we could afford. Looking back if I was at that age again now, I’d have one or none. Even 2 is just the replacement rate. Responsible people don’t have children or have less children because of the cost of living, and accommodation is a significant factor. So is taxes, working hard isn’t rewarded because you just pay most of it in higher taxes. That too puts people off.
It's not about the cost, the current western culture is rotten and highly likely doomed. The people with values that align better with the procreation will replace it. That's why there is such a scale of immigration in basically all Western countries I guess.
@@MsJustice4everall by design. Agenda 2030
This argument would be valid if reducing immigration would lead to higher wage and lower housing costs for local people.
However, it is difficult to square the circle unless you believe the low skilled immigrants have taken up the higher paying jobs in the economy.
Yes, immigrants would have increased the overall demand for housing in this country, but once you had a look at the living conditions and how much those people who are just "off the boat" are paying for housing, you might reach other conclusions.
One solution is to create a two rail housing markets (like the one in Singapore). Foreigners are only allowed to purchase expensive condo/villa with extremely high stamp duty, whereas locals can purchase HDB flats are more affordable prices.
@@fan_Ginkyo the formula is very simple. Less immigration = less demand on housing.
Also we pay millions weekly to spend on the new arrivals, that money all comes from taxes. We could have higher wages if we paid less taxes. Not really rocket science.
Less demand on housing = house prices can stop going up
We pay less tax and keep more of our wages - our take home salaries go up.
The flow of this informative video has been second to none - well done for explaining things so constructively
As an American, I love your videos Damien. Even when your videos are specific to Europe, they are great. You are an amazing story teller. alright now F*** off I've given you enough praise.
They're about the UK. Not that relevant to Bulgaria or Belarus
Can't deal with all this speculation hoping it'll get better. In my 20s and planning to leave the country before I turn 30, seems like the way to have more control over my future 👍
I’m 47, my friend leave this country. Yes there are opportunities here but there are opportunities elsewhere as well, this country is essentially broke and has been for many decades. All that Britain appears to be able to do is keep paying interest on national debt. You and I as tax payers are the ultimate backers of this debt and all that can be done is to keep devaluing the £ and in turn your efforts. Go.
I just bought a house. But I hope to sweet jesus house prices come down. The UK cannot function properly like this.
Will that put you in negative equity?
@@sjt627 It will in the short term, but he's saying he'd take the hit if it's benefits wider society.
@@sjt627 I live somewhere where zero of my friends can live close to. I don't care about equity. I want my community back. Everyone around me is rich(er) on paper only.
Yeah right. If you didn't buy in 2021 its over . That door closed
you absolutely don’t want prices to come down now that you’re an owner because then you can’t afford to move house should you need to
The commitment to this video!!!!!!!!!!!!!!
I had a look and the Dow Jones Industrial index between 1952 and today is around x153 difference, not far from your x151 for UK house prices. Also I would say saving for a house deposit in a currency which is devaluing by the day is like trying to fill a bucket of water with a hole in the bottom, anyways good luck.
what should be done with the money instead if you don't mind me asking?
Yes Dow lo es goes head to head with house price. But Dow you can just contemplate it grow. Instead a house you would have made a life in it. Growing kids and grandkids. Or renting it out.. That would be a lot of money in all those years
Smashed it again Damo, there’s loads of videos on YT about property values but this one just pees all over them.
Hi, I’ve been following your channel for a while now and just wanted to say how much I love your videos. You don’t just educate, you entertain - I loved the peas 😂. Some channels just give boring monologues, but you put so much more work and effort into your videos. Keep up the great work.
BTW I’m also enjoying your Making Money podcast 😀💷
As long as demand is higher than supply, prices will overall keep rising. Just slower.
Demand is driven by affordability X Want.
Interest rates and wages determine affordability.
I was always baffled when I first came to London how low its overall skyline is given its size and population trends.Not a fan of the idea of living in a tower block for sure but even something a few storeys above the predominant terraced houses seemed like a trend begging to happen.
One issue is how wet the ground is I think whereas newyork is built on very hard rock
In central London there are very strict viewlines to avoid blocking historic buildings, that's why we have such funky shaped skyscrapers - all to avoid blocking viewlines.
London also sits on, aptly named, London Clay, which doesn't lend itself to tall development without the use of piled foundations as clay can change volume through the year as moisture levels change so it would be really bad if your skyscraper started leaning because part of the soil has swollen in one area more than another. That's why most higher rise developments are generally either very high end, where the costs to build can be recouped, of further out of the city where planning viewlines aren't blocked
Rory and Alastair (Rest is Politics) have both agreed we need to be open to gentle density like our some of our European neighbours have been comfortable with for decades.
They are in some areas of London, although not improving infrastructure at the same time, so they are easing living pressure (often with build to rent so you can't either buy the home) but putting a strain on everything else. I'm more baffled by why they are allowing the population trends to happen in the grand scheme of things.
Not really. We had tower blocks, and they were in many cases poorly built, poorly maintained, and were knocked down. Most of the towers in London are empty, because those properties have been bought by investors just riding on the hope of asset price inflation. There's no need for apartment blocks, when land use is so poorly managed. Medium-density housing is far better for both those who live in them and the owners. But we don't have enough construction workers to build even those. And there's problems with landlords properties extorting leaseholders. Indeed the last government promised to get rid of leasehold, but that promise was broken as landlords run the Conservative party. And then there's Grenfell... So more tower blocks are not wanted. Everyone wants the security of freehold, and I can't blame them.
Will property prices keep rising? Yes. Simple answer. The UK property market is given anti-gravity powers by central and retail banks and Government housing and immigration policy. The supply is artificially squeezed, the amount of available lending is abundant and the number of people wanting to borrow to buy is ever growing. It's a pyramid scheme on which the nation is built. Next question.
Also big corps are buying them up as assets, they can afford the higher prices as the return will come over a longer time horizon.
To compete with that we are now looking at multi generational mortgages.
Land (that the property sits on) is a finite resource and therefore has no upper limit on its value.
Having said that, the rate of growth will likely slow. One of the big drivers in house prices was it being normal for the majority women to work full time. This meant people were now competing with 2 salaries rather than one. We have likely seen that increase happen over a long time as first they joined the work force and then migrated from low paid jobs to more and more professional and executive roles, giving the couple much more money to compete for houses, hence driving the prices up.
I don't t
I don't think you can import enough immigrants to offset the demographic decline. And if you did your country would resemble sub Saharan Africa, since that is the main source of the imports
@@Jaime-eg4eb I suspect that the declining birth rate is due to few people being able to afford a house until they are in the 30s and needing two wages to pay the mortgage then.
Klaus Schwab of Davos World Economic Forum says "you will own nothing and you will be happy."
Then why did we have crashes in the 1970s, 1990s, 2008/9 and now?
How do we buy houses? With debt. Massive debt. What is that debt? Creation of money from thin air and airdropped into the money supply. Every time we buy a house, we immediately contribute to inflation. So until we all stop buying things with debt, house (and other hard asset) prices are 100% increasing foreverrrrrr. The great house price crash is never coming (in nominal terms), last one to buy is the loser.
Not many understand this....maybe 0.01%.
Absolutely, but debt cannot continue forever. Sooner or later, it becomes unaffordable and then there is a reckoning. This has always happened in history for one simple fact - mathematics. Nothing that we know of in the universe can grow forever, and interest compounds so it speeds up every faster until it's upon us, and the reckoning catches most people by surprise.
Private debt is backed by a creation of a good or service. Increasing money in circulation isn't a problem as long as a tangible product is created that can back the increase in money. The issue is public spending.
@@craigcrowther8074 New housing supply as a % of current housing stock is around 1:5 in terms of of financial transactions (probably even less). So whilst what you're saying is true, it's applicable to just 20% of the UK's housing market sales. The remaining 80% is new debt to facilitate resale of existing stock.
In real terms, UK house prices have gone sideways since 2000. Prior to that, the growth was on the back of increased availability of finance and more dual income households.
Which is interesting, as rates were much higher during this period, then they were during 2000 to now.
I don't follow your logic, I'm afraid. UK house prices went ballistic between 2000 and 2007/8. However, I agree that since then, with artificially low interest rates and inaccurately recorded inflation data, prices have more or less gone sideways.
The South East had high house price growth since 2012 until 2022 (e.g., 2x value vs 1.3x inflation), and because the media is SE centric, this is what was reported. Elsewhere, houses rose more in line with inflation. Indeed my current house bought in 2023 was cheaper in real terms than the previous time it sold in 2007, and that is in a fairly warm but not SE market.
Something that is often overlooked when it comes to looking at prices of individual things over time is what income is left after buying everything needed other than that item and what that left over cash can afford (e.g pension savings, emergency funds (and what that buys) and leisure spending)
Just saw a video on another channel about homes for sale in Italy, which showcased a 3-story townhouse in Abruzzo for 29k. It needed some plastering and a kitchen and bathroom fitted, but the price just seemed pea-nuts compared to UK house prices. I've long since given up the idea of getting on the housing ladder. It will really take a lottery win to make it a reality.
There are reasons, why those houses in Italy are so cheap
@@vldgrs It depends. The ones on the channels I watch are NOT the 1-euro homes in remote villages that need a complete rebuild. If you look at channels like Rossini&Co and A Home in Italy, there are some nice gems, often under 100k for at least 2-3 bedrooms. If you can work remotely, it's worth considering the move.
@@vldgrs are houses cheap in Italy because they’re not greedy?
@@notmenotme614 sure, because they are so charitable and eager to make giveaways. Our maybe because of the market demands...
Italy is a difficult county to live for an average family, it's that simple.
Second home ownership plus multi property owner via landlords have added to the increase in demand and value, hopefully with the new laws over landlords there should be a small but significant increase in property coming back to the market. This should help bring prices down to a much more manageable amount but only interest rates stay roughly the same, which unfortunately I can’t see happening.
That's only speculation. You can only count what you have now
@@rene-rv6pp reductionist reply! almost every thing is speculation, especially this video that being said in the month since I commented on this video there has been an increase of second homes coming on the market especially here in the southwest.
10:30 the population goes up rapidly all our quality of living goes down.
For sure the house prices will continue to grow so exponentially as till now.
What iwill keep crushing is the buying power of your money. And wages
Really brilliant work as always Damo.
I’m starting to understand things a lot more now. Just recently bought my home and I didn’t do it to make money I bought it because rents and landlords are seriously taking advantage of renters.
I also did it so that I know I have relative security.
The reason this is a thing - Is people can’t afford to have kids anymore. Children a very expensive and younger generations don’t want to have children to give them a crappy standard of life.
Unless prices come down. It’s just going to stagnate all round.
That's why extinction is allready in place. Well I mean the original population. That's has been reduced to a little percentage of the toral population. There is nothing to do about because all these are economic waves that comes from the highest leves
Of course they'll keep rising, its simply a case if how wide a viewpoint you take. Nothing goes up in a straight line. Hose prices will be higher over time.
Damiem your videos are always gold mate. Fantastic production value.
I wrote my MSc dissertation on this subject. The lack of supply and increased demand means only thing... prices keep going up!
I'm a property owner but think it's incredibly unfair on the younger generation how it's almost impossible to buy a property if they are in average circumstances. Mass immigration has been a big mistake and successive Government's have failed the country by not having more family friendly policies to encourage a stable population. This constant obsession with national economic growth doesn't align with happiness. We are now seeing young people either living with their parents for longer and longer or having to spend most of their wages on rent and not being able to save for a home, it's just wrong.
Mass immigration wasn't a mistake. What was a mistake was not planning for it. And that's down to short-termism inherent in governments that last only 5 years. What we need is to decouple long term strategies away from political cycles and put it into the hands of planners. Have political oversight over them, but not political control.
@@CuriousCrow-mp4cx Of course mass immigration has been a mistake, just how much more populated does this country need to be. There is no planning and there won't be either, everything is getting overburdened from housing to infrastructure because Government's have decided to import almost 10 million people in a couple of decades.
@@jellymulderyou sound very ignorant of foreign people
@CuriousCrow-mp4cx mass migration was a mistake, they are not integrating and if this carries on we will have more and more divided communities within the UK.
@@johnbuffaloiam9741 speak for yourself, almost 10 million people in two decades, the numbers don't lie. You make it about origin, I'm talking about numbers.
Close to buying my first house with some friends.
A house we plan to rent out in the future but the news has been scary lately, this makes the whole purchase feel slightly un-easy but we’d keep the property long term and as you said, that will pay off. 😊
You are buying a house with your friends? You serious?
It's is simple laws of supply and demand that mean in the long term house prices and rents will continue to go up.
Yes there will be dips here and there but the overall trend will be upwards.
Housing is like anything else, if you have something that is high demand but low supply, then the price goes up.
Sad truth is you can streamline planning all you like but there simply isn't the capacity in the house building industry to build enough new houses to even keep up with the increase in demand of an increasing population let alone tackle the backlog of the millions of homes we are already short of. We simply don't have the numbers of bricklayers, plumbers, electricians, carpenters etc to keep up with the demand for new houses.
This means restricted supply of a thing in high demand. Hence the price goes up.
A young work colleague of mine recently bought a small new build. It is costing him all but 50% of his net wages per month just in mortgage repayments. People are just going to keep extending themselves further and further to get on that first rung of the housing ladder.
Saves me writing this. Thanks 😊
They need to solve the supply problem. In the 1950s the got industry to churn out pre-fabs. In some places like Ipswich they are still seen as desirable residences.
@@MrDuncl yes, on the continent they use prefab much more, but it’s seem as less desirable here and building regs are mostly against them. They could change the regs but then the traditional builders would lose out as houses would be imported. Maybe there has been lobbying to prevent this.
The old bricks and mortar houses seem too good and in America, many houses are timber. With good fire protection these are viable in the U.K. also. So a house that lasts 50 to 100 years from timber should be considered. Most flats are steel frame with brick clad and this is another option for houses that can utilise a cheaper prefab construction. There’s no way the Gov will build enough houses the traditional way
The supply is artificially restricted by people purchasing multiple properties as assets. This means those with capital squeeze those without. Restrictions/Dissincentives could be introduced to make multiple property ownership unattractive as an investment, increasing supply and reducing costs.
I think you missed the point of the video Stuart. It's not about whether prices will continue to trend up, barring any significant market corrections of course they will, and the video doesn't suggest otherwise. It's about the rate at which they trend up, and whether it's reasonable to expect the performance of the past 70 years to be matched over the next 70 years. And the simple answer is it pretty much can't possibly happen unless wages somehow rise astronomically.
This question has been asked since the late 90s when prices started rising rapidly. Everyone said they couldn't keep rising like that for long. I really wouldn't hold your breath on them dropping anytime soon.
Labour talking about putting cap amount on Isas now. Dreading this budget in October
You sure that isn't the media just making up more stuff in the information void before a budget?
Although I will say that 99% of people don't get anywhere near their 20k ISA cap or 60k pension cap. Dropping them to 10k and 20k would not affect the vast majority of people (although I would argue that they should have a longer window of previous year caps to use, e.g., 3 years for ISAs and 5 for pensions instead of none and 3).
Recently bought a house in Wigan so appreciate the Wigan reference!
did you move to wigan or where you already living there?
Unfortunately the gov won't offer incentives for people to get into the trades. If instead of burdening the housing market with an influx of people they could be spending money on getting economically inactive citizens into the building sector.
If they're economically inactive, then they're lazy and won't be very productive. Judging by the quality of native born tradespeople I've dealt with later, I'm wishing the Polish would come back!
@@mike-A299 you're completely delusional.
@@mike-A299tell us your a middle class remoaner without telling us your one 😂
Thanks Damo, really enjoyed this one - especially as I'm house hunting at the moment and getting to grips with the prospect of taking on a mortgage for the first time.
What seems to be a big misunderstanding in my book is that the whole mess of housing and immigration is a revolving door, there was a huge increase in housing prices from around 1997 pretty much when Blair opened the countrys doors to mass migration. The huge increase in housing costs has completely put the younger generation off from having children due to the costs of living and being able to afford a home. Couples not wanting to start a family till they can afford a home but now instead of being able to afford a home in their early twenties they arnt able to buy a house until the mid to late 30s. So due to a high migration rate we now have a low birth rate, which in turn they say we need more migration for jobs. Basically the government havent got a clue what they are doing
idk this sounds like you did 2+2=3 when there are tons of reasons why people aren't having kids anymore. economy or not being able to support is one of them but it's not the definitive answer nor is migration entirely to blame. there are still plenty of people having children who rent, in contrast all my friends own properties and do not have children. people are more content without the stereotypical nuclear family and it tends to be the more well off and educated who are just now choosing to not have children, especially women established in their careers. by far the opposite in recent few decades lower classes in the UK have historically been the ones to have more children. migration for jobs has been a long running thing in the uk happening since wartime as opposed to some new phenomenon, there were periods before as you mention such as 1997 increase in migration, or 2009, etc that didn't stop people from having children so it is more just a general society shift though yes of course cost of living plays some minor role in it. it's just never that simple imo and it's easy to just blame migration for absolutely everything. but personally and speaking to my friends in my circles, it seems to be a similar general western world increase in less desire for families and children and women no longer wanting children (south korea is a good example) and us living in a more self sufficent society where we don't care about relationships anymore and just fending for ourselves. modern society has become less of a society and more 'selfish', which in turn results in more reclusivity meaning less relationships, less families, less desire for children, more desire to just exist individually.
Bit simplistic that, have house prices not risen in counties with lower levels of migration?
I completely agree. In the 1970s a single wage doing something like plumbing was enough to buy a large house in an upmarket Bristol suburb and support a wife and four children. I have just described a schoolfriend's family but that was the norm back then.
Reverse unskilled immigration, wages will rise, house prices growth will slow.
Let's get real. Nobody can tell what the future brings. And a government running for only 5 years, is naturally only able to have a short-term effect. The problems we have are a combination of long and short-term factors, which no government by itself in 5 years can change. And also, we must remember that the electorate has changed, because neoliberalism wasn't only an economic experiment, it was a social one too. From the time social housing was broken up and retarded, the effect has been to condemn families unable to secure earnings growth large enough to buy a home, to staying that way in the following generations. In short, neoliberalism has seen the biggest transfer of wealth from the employed to the asset wealthy. And even the lucky ones who did buy, with the sub-inflation wage growth and the loss of inflation-proofed pensions, are facing having only the roof over their head as their only appreciating asset. This means that eventually more homes will be owned by the asset wealthy than the asset-limited workers simply by factors such as death and generational transfers leading liquidation of that one asset, i.e. selling the family home. Neoliberalism has in effect created economic apartheid. If the only asset you have is a pensuon, and your wages aren't keeping up with inflation, you will be stuck either renting or living with relatives. So starting a family will be either very much delayed or impossible. And just stopping immigration won't prevent that. Why? Time. Even if we had a baby boom right now, those additional workers won't begin to appear in the labour force for at least 18 years, and so won't contribute to economic growth or tax revenues until then. So, it has taken decades to get to this point, and it will take decades of sustained change to reverse these demographic changes. And... The earnings of workers needs to exceed inflation for a sustained period of time for them to be able to get on the property ladder. Is that likely to happen? Well, no-one can be sure, so this is a guess, but unless wage growth becomes positive for several decades, nothing's going to change.
Wages have not stagnated since 2008. They've fallen sharply.
They've stagnated only when tracked against inflation. But inflation does not include the rising price of purchasing a house outright, nor the rising price of land, nor the rising price of S&P 500 shares. Everything that constitutes actual WEALTH is conveniently excluded from the inflation calculation.
Economists know this, but actively choose to use misleading terminology like 'stagnated' because they don't want transparency. They believe the system works in our best interests - despite it surreptitiously slashing our wages. They believe this system is threatened by an incomplete layman's understanding of it.
They lie for our benefit as they slash our wages.
Very good video. I think you need to factor in annual costs of running/maintaining existing properties. That house purchased for 5k in 1970 would have had a mortgage at circa 15%. It may have been remodelled 2/3 times. It may have had a an extension/loft conversion/new roof. Leaseholds flats would have paid ground rent/service charges for 54 years. Renewal of lease term etc.
Lots of cost which don’t necessarily get factored in to the “growth” numbers.
You had your finger on the pulse with this one.
what Gary's economics couldnt grasp you did so well. well done Damien
Goldman Sachs said this week UK base rate will be 3% in September 2025. Inevitably prices will go again on cheap credit.
I honestly think that a lot of these things are being managed so houses only lose value in real terms, but not in absolute terms, so we don't get a negative equity problem like previously (or more likely, so the government doesn't get too unpopular with falling house prices). House prices will increase, but under inflation, for a good few more years to come.
Love your content, Damien. Simple, easy to follow and impactful. Thank you.
One thing I rarely see people talk about, not even this channel, is that the imported labours are also part of the net migration too. They are not like coming to work from 9 - 5 and then go back to where they are from after work. They needs housing, school, access to NHS, access to public fundings, and using public facilities. The more labours you import, the bigger the problem becomes.
Yes. Foreings are hardened in the sense that they can be poor and still have 3. Or 4 child's.
I can't imagine a modern guy used to no effort and be all ways compfortable doing that.
He is just not capable of any sacrifice
the secret ingredient is debt. if everybody still bought their home with hard earned cash like in the good ol days it woudnt have skyrocketed
the 30 year mortgage is an american invention of the 50's. Not long until 40 or longer will be the norm.
I brought my house in mid 2002 when according to your chart was the crossover of house price rises and interest rates falling. I paid 100k and now worth 500k, nuts!
That fine! But if you want to buy something bigger you be looking at 700k+ more debit and longer to pay it off 😂
Not nuts, but peas 😂
@@aerial558 So what, if it's affordable do it and then when it becomes easier, do it again. Thats how you work your way up the property ladder and one day you will own it outright.
But it's not affordable. You're assuming that you'll be able to buy something similar down the line if you move, and that isn't true. Definitely not in a high inflation part of the economic cycle. So good luck. You'll need it.
Lucky!! 🍀
Hi damien love your videos would be interested to see a video discussing what you think are the most likely changes in the october budget and how they might impact wealth creation
Growing the population by net migration of low skilled workers (this is not an insult, it’s a description, nothing dishonourable about it) will not solve future tax needs because great numbers of these are not net fiscal contributors. Need investment in technological solutions to deal with many of these issues instead.
Policy solution triple whammy is planning reform (time to Build), skills and training and a more sensible migration system. Then maybe houses will become homes again rather than speculative growth assets
@@JW20236 bingo, totally another agenda, amazed so many can't grasp it yet.
In the 1970s two big concerns (often on the news) were "The Money Supply" and "The Brain Drain" (to places like the USA and Australia. They don't seem to be bothered about either now.
don't worry about insulting people. It's true
Immediate regret at @1:22
Awww shit I was born too late
This explains everything brilliantly.
I keep telling my family and friends.. it's not that your home value has gone up, it's the purchasing power of your currency has gone down.
That would be true if it wasn't happening all over the world as well, it's just supply/demand and the rich have all the supply.
Both are true
Agreed: currency has lost its value. A house doesn’t suddenly grow bigger on its own does it
It’s no coincidence this happened when we went away from the gold standard. You see this in monopoly. Eventually you pay a whole lot because there is more money in circulation. You don’t feel wealthier though because you’re not.
thats not true for london
I welcome this very human perspective in a finance-focused channel.
For me in banking on my inheritance of a 300k house but I plan on selling up and moving abroad as I don't see anything good with the uk
Not to mention that it was government policy to increase house prices as an indicator of economic success. We used taxes to artificially increase the value of housing.
I bought my house in 2005 and it has barely kept pace with inflation against the price I paid, let alone with the £120K of improvements I've done since then.
However, my index fund portfolio has generated enough over that same period that I no longer need to work (and the mortgage is paid off). I never include the value of my house in my net worth calculation.
Many people still think houses are a great investment. Index funds have done far better for me. There is an element of opportunity cost in housing. Having a huge mortgage makes it hard for many to find money for investing in markets.
@@philipjamesparsons The issue is that no building society will lend against an index fund. In contrast in the noughties anyone with a £10K of savings was being bombarded with the idea of taking out a BTL mortgage and building up a property portfolio.
I'm currently looking for my first home and this is exactly the reason I don't want to clean out my investments and max out my mortgage. I'm going for a property price that's roughly half of what the bank will lend me, I'd rather use the rest of my income to overpay the mortgage and invest in an ISA. It baffles my friends who are in the same position and are now living paycheck to paycheck to pay their mortgage
All depends where and when you bought. We bought in London zone 5 in 2010 when the market was cheap. We could sell now for double if we wanted to sell. Over 200k difference.
I bought an apartment in Rome in 2014 for what was a fair price at the time. Meanwhile, the area became better in every parameter including a new metro line. The price of the apartment today is exactly the same as 10 years ago becoming the worst investment of my life by far. Take home message: Property market is high risk and highly unpredictable. Also, price does not always go up
If we wanted to fix it we could stop taxing productivity and switch to land value tax to lower land price inflation, but we (collectively) don't, people want affordable housing AND property to build wealth, which are ultimately irreconcilable goals as it's a zero sum game which causes damaging boom and bust cycles (18.6 years on average as per Fred Harrison).
In spent 1989 to 1999 in a house that wasn't worth what I paid for it. It took Tony Blair promising "things can only get better" to break the eight year decline in prices. There is a huge amount of "positive feedback" in the housing market. If you don't understand "positibve feedback in a control theory sense look it up on Wikipedia. Interestingly the first photo in the article is a queue of people wanting to withdraw their money from Northern Rock.
In bucharest now flats are even 400k,yes, regular flats, and some people say London is overvalued. Dayummn
That is why capital gains tax is a con. No inflation effect is taken into account against the gain. I know we get an allowance per year, but they are still effectively stealing.
That's why the ISA allowance is so important. Thanks for your videos. It's helped me educate myself on maintaining my wealth
Then go buy a property in Timbuktu for no CGT.
@@SkamGame your comment was very uncalled for. It’s not a gain when you lose significant monetary value via inflation at the same time, so OP is making a very valid point.
18 year property cycle. It crash’s every 18 years, back dated 200 years. Last time was 2008. Usually property fomo kicks in before crash.
I hate that way of framing the increase in property prices, it's so insincere. Inflation increased the property prices by ~30x in the past 70 years and 'real price change' increased them by a mere ~4x.
You'll see the issue if you reverse the "Inflation accounts for £45.000 of the £242.000 house price"-statement, because by the same logic 'real price increase' would account for only £8.000 of the £242.000 house price (£242.000/30).
That section was dealing with housing as an asset. It's the correct way to look at the problem, because nominal prices don't reflect real affordability. Look at it like this. I've lived in the same area since 1971. At that time, a one-way bus fare into town was £0.02. 53 years later, the same bus ride costs £2.50. My wages never grew to the extent that this bus journey was as affordable as it was in 1971. Why? Inflation combined with below inflation wage growth. Same thing applies with houses, and that isn't going to change overnight, if at all.
@@CuriousCrow-mp4cx You don't get it.
I don't think it's necessarily insincere, but if your analysis is correct then it is wrong. I'm thinking about this now .. 🤔
@@paulmitchell-gears6765 Get back to me when you've thought about it.
Need to improve infrastructure too. Ie more roads , doctors surgeries and schools too.
I think that a 1950s house should cost around 45 to 60k. House prices are overvalued.
Irrelevant. If this is your mindset you will never own anything but each year the rent you pay someone else will increase.
Somehow, older houses tend to have been built better, just see the state of any new build... but yeah it's insane how expensive it is just to have a roof over your head
This is cracking economics. Fantastic!
The reason that everyone strived for home ownership is because of appalling renter's rights. People wanted to own their own place, because they do not want to get kicked out on 2 months notice. This created a situation, where renting is not a life style option, but a transition period until you can afford your own place. This mentality is so ingrained in Britain, that it feels impossible to change, but it does not have to be like that, as it is a case in different countries.
In regards to housing, my town is filled with empty houses that are left to slowly deteriorate. They’ve been empty for years and make the area look ugly. Despite this, a few minutes down the road they are building new homes. Anyone know why this is allowed to happen? I assume wealthy people own these house and just don’t care what happens to them 🤷♂️🤷♂️
Empty houses are often used as investment
We need to collectively and aggressively invest in uk based REITS, development and building companies. Money will flood to these companies.
Quite funny seeing your content now v when you started. Editing aside your camera presence and humour are 10x better. Well done sir
Cheers fella
If you had used 1kg bars of gold (instead of plastic blocks) , you would find a decrease:
In 1970 then 10 bars of gold buys a house.
In 1988 then 7 bars.
In 2024 you would only need 6 bars to buy the same house!
I am sure this would make a good broadcast for you. 😊
It ia all about timing, both gold and the stock market have been something of a rollercoaster....when you enter the market and sell is cherry picking. However imo gold today unlike many other assets looks a good long term bet.
Fake gold
It's completely irrelevant. Why look at the value of one particular asset when you can look at the economy as a whole?
When interest rates go up, house prices go dowm as the total amount borrowed has to adjust the new reality. If interest goes dowm, its cheaper ro buy. The sellers raise prices to take bite on the available profits. It os early to see a proper trend of pricing falling. If wages or populattion fall a lot, the pricing would really fall (that is seem in some places of southern Europe, the us rust belt and Brazil for exemple).
I've spent the past decade living abroad and began to feel I was in exile, because UK house prices shot up in my absence. By the skin of my teeth, and thanks to all kinds of serendipity, I've at last found a little place to buy that I can afford. I can't tell you how excited I am to "come home" again. For all its problems, the UK is an island full of magical places and astonishing people. I think my lesson learned is that when you feel safe and comfortable somewhere, don't take that for granted; and when you do find your happy place, four walls and a roof over your head is enough.
Where did you buy? What is your budget?
Well said!
@@johnbuffaloiam9741 more to the point, who is his dealer, I need some of that stuff!
One of the biggest issues we have in building new homes is planning restrictions in the UK. In the 1920s you could basically just ask the local council about a permit to build almost anything and 95% chance of getting it. The over the 20th century the dept of T&CP put in more nad more regulations, more green belts, more eco concerns, more space concerns to the point that it costs hundreds of thousands just to get a permit for a few houses and that has to be recouped by selling the new properties. My mate has been waiting 2 years for the local council to progress is request to add an extension to his house, he's now so pissed off waiting he's started writing to his MP and consulting legal people to force a decision from the council.
Can we add in the effect of empty investment properties that are a blight across london and other major cities? The criminalisation of squatting domestic property (David Cameron) led to property investors not needing to rent them, to sit on them empty to take advantage of a peak in prices without the bore of having tenants to evict. This created a shortage of rentals, pushing rents sky high and in turn making buying a more attractive prospect. Thus pushing the values up with a flood of new buyers. Southwark alone has 25000 empty properties. I’m not saying we should allow squatting again but there should be more measures and penalties to force homes to be filled and used. It’s not gold or stocks, housing is an essential component to life and a functioning economy. We lost sight of that.
Compare salaries of Architects and Engineers to that of IT and Finance jobs and you'll quickly realise why it's difficult to find construction professionals when their wages have remained stagnant over the past 20 years. Baring in mind that these are some of the most difficult degrees to study and jobs to perform.
Peas in my bowl, green and bright,
They're like tiny investors, full of delight!
I planned to save them, grow my stash,
But they keep slipping away, like disappearing cash!
'Invest in peas,' they said with glee,
But the property market's the place to be!
The peas bought land and built a home,
Now they’ve got equity in a garden dome!
So next time you're cooking, think twice, please,
Your next financial advisor might just be peas!
(I had a chat with Ai) 🤣🤣🥰
Brilliant and informative, I hate to think how long you spent dreaming up pea puns too.
I think you missing the point- many people not just can't afford to buy they don't want to buy overpriced crap! Half of what on sale is just unfit for human habitation! And the prices for simple homebase/b&q renovation and the labour is just ridiculous. Recently I found the 2 bed flat I can afford to buy but I was quoted £80k.for renovations and it's just killed the deal for me. Ripoff Britain...
And then they'll wonder why there aren't enough young workers to pay taxes, young people are f***ed if they want families.
Heeey, i also like that APY calculator. Use it every week to marvel at the power of compound interest.
Anyone can buy their own home now.
The outlook in the 80s was that you had to find your own way and the bank of mum and dad didn’t exist for anyone but the rich. But you had to work 2& 3 jobs, buy a run down place ( I had to change the floors, roof, plumbing, wiring , kitchen, bathroom & windows) in a bad area; then leapfrog to a better place. Interest rates were about 15% and you could easily go into negative equity. So it was risky. Yes, earnings to house prices have changed, but I think younger people generally expect to own a house and expect it to be nice, in a nice area and to pay less for it comparatively - that’s unrealistic. I sacrificed holidays, leisure and my youth for what I have today and I’m not ashamed of it.
I do hear you, but I don’t think you understand the current situation.
The wage of 2-3 jobs vs bad area (and associated poor job opportunities) & cost of materials (for refurbishing), add on deposit size (related to those 3 jobs) isn’t an option as food/gas/insurance inflation with stagnant wages, physical drag tax etc are destroying any disposable income.
Your thinking is out of date, just reconfiguring is needed, not apologies.
@@Bfg12327 I did it with no knowledge of how to renovate a place. Plus I needed a 10% deposit and mortgages were very strict on borrowing. Not all houses are hundreds of thousands of pounds. There are places where you can buy for £50k for a terraced house that’s habitable, so it is possible. My wages for my first house was well below the poverty line ( pre minimum wage), I’ve bought property since and have multiple properties. I know how much places cost & the bills etc. So my view is that some things are easier, some harder but it is achievable still to buy a house.
@@Bfg12327 no he's right. The youth have incredible expectations. you can buy a run down terrace in Burnley for £50K and commute anywhere in the country whislt balancing working from home.
I am only 4 mins in but I hope you also mention the quality of houses too, the cheap lumber lego houses that are sold at a premium today boggles the mind. Hoping to buy a house in the near future when my gold/silver/btc allows but I won't be touching anything built after 1990
Damien, you've got to focus on how Government is causing "shortages & price hikes" failure to do this, misses the Elephant in the room
Price is determined by supply and demand. Demand exceeds supply due to demographic growth ( 30% since early 1950’s) and housing stock is increased only by 1-2% pa. Therein lies much of the problem and we have a finite amount of land. Property prices increased dramatically from the 1980’s with the financial services revolution and the availability of credit unleashed then. Property inflation is quite separate from general inflation.
It's hard to find a job in places with affordable housing. Many houses are empty in areas where the local economy is weak. Buying a cheap house is pointless if you have to spend a lot on travel to work or shops. Our economy is out of balance and not working well.
Manufacturing used to provide jobs everywhere, but services, especially finance, don't. Artificial intelligence will likely take away more jobs in services. Our planning for industry and the economy has been poor. Markets react to things, they don't plan for the future.
That's why houses in Sunderland are so cheap. If you don't mind travelling far for basic things like a shop, doctor, or chemist, then buy one.
Jesus must be kicking himself now for not getting in on UK houses way back then.
🤣
Jesus died 2024 years ago. Had he not, imagine the growth he would have seen over his time?
Property prices have hardly budged. They are still pretty close to where they were pre interest rate increase back in 2021. Well in the south east anyway.
Great video Damien. For years landlord's, like myself have been bashed by governments and blamed for increasing property prices and rents. Landlords have been selling up in their droves for the past few years now. So where's all these cheap houses?
Great video mate!!! 🙏
I posted several comments whilst watching …..only to delete again as you covered them 😂
I've had my house now for 6 years and I am happy to say that the value in just 6 years has gone up by 41%
I'm over the moon with that increase, For me it's not the resale but the mortgage as the LTV will go in my favor and give me a better rate when I remortgage.
I did start paying a little extra off here and there but after watching yourself I have now changed that up and buy stocks with that little extra instead :)
Well done fella
As far as I can see, this is only heading one way: to a quasi-feudal renter system, with housing increasingly owned by a powerful few. In this case, corporate landlord companies. Blackrock in the US are already on the march, and Lloyds Bank are seeking to do this here. And, even if banks upped the lending amounts, I'm not sure I'd want to take it. Because, you still don't own anything, and owe everything. The only sign you should look for is houseprice-to-earnings ratios. Everything else is just a debt prison.
And all in all Equates to massive wealth inequality
True, just make sure you are on the right side.