The Long Housing boom is over - No More Easy Wealth 

We know it but the UK is run by a cabal and I cannot see that changing until they are removed

Until private banks are stopped from creating currency out of thin air through loans & Governments are able to deficit spend…nothing will change of that i can assure you..

Same as that but in Bristol. I've just cancelled the rightmove email alerts and wont be looking at it again until I need to move. I've followed the market for almost 4 years after the flat I was trying to buy then in 2020 fell through during covid and I saw prices skyrocket. I've finally had a offer accepted and I've gone for a flat I could easily afford rather than maxing out. After following the market so long and being obsessed with interest rates and the economy I've come to think we can only hope for prices to stagnate rather than drop enough to become truly affordable. We don't have enough housing to go round sadly and it will take decades to catch up. Although many wages have not risen, others have risen considerably and enough to cause competition over the housing that is available in the areas people want to live. I don't see prices rising as quick as they once did but I just can't see 20/30% drops coming for places that are priced properly for the areas that they're in.

@@matty506im in Bristol too, I almost got a flat but after seeing service fees for most places that wasn't a conversion it was better to buy a freehold house. Its quite literally the worst house on one of thr better streets so I'll spending a lot of fixing it. Which I prefer over losing money on the black hole that's renting

@@koldwolf I was hoping to do that but my max budget of 250k just didn't cut it unless I wanted to move to hartcliffe or go further out to yate or weston. I'm managed to find a alright 1bed for 180k and its a shared freehold with £60pm service charge. Some other places I saw for way more money with a 95y lease and £200pm service. I'm quite glad I didn't max out now as it's so cheap I'm planning to take a few months off work to travel, My mortgage plus bills comes to slightly less than I've been paying to rent a bedroom in a HMO 🤣. Hope you're happy in your place and well done for getting there in this crazy market.

This comes about from developers which have no imagination and some do not even employ qualified architects, built to a cost and a planning system that lets quite a few disasters through and a customer base that believes there is no alternative/has no imagination.

100% true

False. Large Edwardian semis and Georgian terraces are some of the most beautiful built environments in the world. Anything built since the 1930s though, I'd have to agree with you

Not ugly, just low quality. Once finished it's already falling apart.

​@@paulmitchell-gears6765 What's crazy is Edwardian houses tend to be cheaper than the other houses too! Sure they need a bit more love but are beautiful houses.

The wealthier a society gets, the smaller the families. A worldwide effect. The projection 20 years ago was way lower, families are now larger than estimated. Because of immigration. But that's a different topic.

@@Eunegin23 What are you smoking lol? Extortionate house prices and rent means LESS household money...obviously. The 'average' UK worker is NOT "wealthy"...quite the opposite !!!

@@ChrisM541 I referred to a society, and the longterm effect, not individuals. Unfortunately it's going downhill and we didn't even realize how privileged we were in the past. And: being polite won't hurt....

@@Eunegin23 Anyone on an 'average' UK salary an not being able to afford a house due to those sickening prices is not something that encourages politeness. Quite the opposite. You might not be in that position but way too many are. Our society in the UK is most certainly not getting wealthier. Clearly.

@@johntbaxter (that's quite off-topic, unless you're trying to justify your own expensive house!)...and that is supposed to quell the fact successive governments DELIBERATELY ignored effective mortgage controls? The reason housing prices are so sickeningly extreme is because buyers have been given more(!!) money - thus(obviously) - sellers WILL raise prices. The average(!!) "2.5 x salary multipliers at 21yrs payback" is long, long gone! Uncontrolled skyrocketing of those two simple variable caused all this damage.

Many landlords are selling as quickly as they can because property is becoming a toxic asset. Inflation, and the necessarily higher interest rates to control it, are reducing affordability for both mortgages and renters alike. If people can't afford to rent, would-be landlords will not invest in housing. Cause and effect.

​@@jakemorgan9275that's more true if they're buying property with debt. Keep in mind the wealthy are resourced to have a higher debt/equity ratio from the get-go & can back that debt up against assets they already own, so their rates & costs are much more favourable than to the ordinary person or smalltime landlord.

@@jakemorgan9275 I doubt it, if I was a landlord id be charging rents of 500£ -1000£ a month on each of my properties, then take that income and put it in other assets. For them it doesn't make sense to sell. People always NEED a house so basically I can charge whatever I want and still get paid. If you wanna fix this problem then I suggest government intervention on putting a Maximum price which would lower rents however, that wont happen due to parliament having loads of people that own properties and etc.

​@@jakemorgan9275 Interest rates are just a temporary issue. They change a lot of rules to make it harder and more expensive to have a flat to let: higher taxation, HMO regulation, minimum energy standards. And guess what - these are renters always paying the price. The only that can afford to meet the rules are those with pockets/businesses big enough to incorporate.

​@@jakemorgan9275 It depends on how wealthy the investors are. Small scale landlords are definitely leaving the market, because they depend on borrowing. Investors who already have the money can still make a perfectly sound business in the current conditions. People still need a place to live, it's not a choice. Meanwhile, the split between the super wealthy and the rest of us is getting bigger every day.

If house prices don’t crash then what you pay for houses with, will.

@@wattbenj yes money loses buying power, but those that benefit from QE i.e the super rich will keep buying assets. It's an unfair system that will continue until the the ruling class are dealt with. The future divide is assets vs no assets

@@parabob2359Yes true. I think in the short to medium term, the consumer will be completely tapped out. This is the only thing I can see happening that may bring the ruling class to ground. As they'll owe so much in interest and in council tax and the like, but their dividend streams may run dry. Still several years to go though, I agree. Lots of liquidity in the system, though it's with the wrong people. I think there is likely one more crash with a round of QE to follow in this long term debt cycle. The crash after that one will be the big one that goes down in history.

@@wattbenj my worry since 2014 is that the movie Elysium is a serious prediction of the future.

When Boris Johnson was Prime Minster the Conservative party received millions of pounds from the big developers. The party still gets healthy donations from them. Something like 20% of Conservative party MPs are landlords or, have financial interests in some aspect of renting out properties. Corruption has long been normalised.

Also the majority of voters in Australia are still either home owners or on the property ladder themselves - or their superannuation is tied up in 'safe' real estate investment funds. Whether a reduction of on-paper wealth, similarly intense NIMBYism mirroring the UK but more a result of cowboy developers throwing up shoddy skyscrapers right over low density housing areas rather than mid-density redevelopment, or everyone tied to an immense mortgage with a terrifying pit of negative equity - there isn't a recipe for the political will to change this at the voter level until a majority of voters are themselves beholden to the private rental market. A large majority of Millennials & Gen Z rent, but their participation rates are lower, their political outlook with a deliberately fostered despondency by the conservative & neoliberal dominated Aussie media, and they aren't a majority of the population yet. Unfortunately we need the situation to continue worsening because conservatives tend to vote for personal interests over national interests, and property owners tend to heavily lean conservative.

That conspiracy stuff is junk UK politicians are often poor ! Property developers are NOT owned by the same people.. You are spreading disinformation...

@@InnuendoXP Gen Z are only interested in lip enhancement, bottom enhancement, tattoos, cannabis and iphones. They don't marry but have kids anway...

The Tories in the UK already did this with Help To Buy.

You forgot a load of illegals from Pakistan, Iran, Sudan, Somalia, Syria, Iraq, Albania, Kosovo etc

If your younger lot were educated you would not need others Google to see what uk sold .jaguar range rover,weetabix Hamleys, tetley tea, The hard, harrows, selfridges, Heathrow, Gatwick and lots more . Sainburys 25% owned by Arabs , Nost companieshave foreign shares .7o % of brits work in full owned or part owned brit companies .

​​@@manjeetgill1 they sold jaguar range rover,hamleys,tetley, selfridges,harrods Gatwick and Heathrow airports ,half of HSBC. Bentley and rolls Royce cars, 68% of companies sold to keep uk afloat and they cry.

In this country is the case. But go to France and your rental agreement is 3-years minimum and you can redecorate as your heart pleases. Renting has to be regulated and normalised in this country, and landlords should not be able to dictate the cost of rent because their mortgage has gone up. That practice is illegal in France and even in Dubai.

Rental properties are essential for a modern, successful economy. I own many rental properties and every single one of my tenants are in a transient stage of life, either relocated for schooling or work. They either don’t want to but immediately but need a good rental property to live in until they are certain that that wish to settle long term. Or, they are professionals, in some cases surgeons or medical consultants who have started a new role in the area and only wish to buy once they are certain that their new employment is suitable. I have one tenant who moved to Canada to help set up a charity, it was a five year role. She returned to the UK, but realised that her previous London based living situation was no longer suitable. She rents a property from me until she has found an ideal house in the area and her daughter is settled in her new school. My point is that people like I describe, let’s call them temporally ‘transient’, do not want to buy immediately. Where would they be housed if there are no rental properties available? Must the government house them? Another tax burden? May I add that I have paid enormous amounts of SDLTax in acquiring my properties, plus the tax I paid over many years while building a business to earn the money to buy my properties. I am proud to be a landlord. My properties are very well maintained and I am proud to serve my tenants and work with them to ensure comfortable, happy accommodation until they are ready to buy. I’m sorry to respectfully disagree with you but you are wrong. The rental sector is essential!

@@sftmol never said to remove the rental sector, you have jumped to that conclusion. Has always been rentals but the issues lie with properties being used as an investment, lots of people abroad buying houses especially in london which drives up prices. Air BNB which even tho regulated has increased? someone explain to me how that happened, most estates being built now are building mainly 5 bed detached houses. I work in alot of them and 80-90% of these 5 bed houses are elderly couples....which have decided to buy giant houses for a investment. Short term rentals are actually good (short term as in 6 months to a year, this can give the person a return and its for the people that can afford it. But rentals now are forever homes for people as they cant afford anything else and now they cant afford that as landlords are putting up for there mortagages. You can't blame them if the mortagages go up they have to pay that but the system is wrong for putting people in those positions. What we need is social houses built, people that are staying and working in a area can get affordable houses, rentals are short term and used how they should be for short stay for transition which also means they can be more expensive as that is there point.

I wonder why he felt the need to be so defensive, perhaps to alleviate the guilt he feels for contributing to the mess no matter how "selfless" his intentions.

Could you elaborate on 2:23 if the population continues to grow, therfore low birthrate is countered by continued immigration then would the UK continue to be one of the worst performers?

👏 I couldn't make it any more simple. The same is with a burger, I recommend checking the Big Mac index - it's unbelievable what inflation does to working people and explains exactly why 30-40 years ago you could support a family with just one income.

But that one house is worth a hell of a lot more than no house.

​@@franekspeak953 people lived more frugally. 1 car per household, no mobiles, no internet, no holidays abroad etc

@@MrJeffHead no Netflix but lots of crumpet that was not overweight.

@@MrJeffHead A house in 1960 cost 4 times an average salary. Now it's more like 8.5 times. That is a massive difference in affordability. And then all these things (cell phones for everybody in the family, Internet etc.) come on top of that, because you literally can't live a normal life without them. There is plenty of wealth. It just ends up on fewer and fewer hands. That's the real issue here.

Nope

You're just jealous of their good fortune. You just need to work hard like they did, and buy the council house you were given for 6 pence in the pound

@@JSmith19858🔔👈 end!

It won't impact them as they won't be born in the first place

Does investing in something reduce supply? No. Not the fault of investors

Real estate and stock investments may be good decisions, especially if you have a solid trading strategy that can see you through prosperous days.

You're not doing anything wrong; the problem is that you don't have the knowledge needed to succeed in a challenging market. Only highly qualified professionals who had to experience the 2008 financial crisis could hope to earn a high salary in these challenging conditions.

​ *@lilyhershey1* Recently, I've been considering the possibility of speaking with consultants. I need guidance because I'm an adult, but I'm not sure if their services would be all that helpful.

Well, there are a few out there who know what they are doing. I tried a few in the past years, but I’ve been with Gertrude Margaret Quinto for the last five years or so, and her returns have been pretty much amazing.

I appreciate you sharing this. When I looked up the woman you named and read through her credentials, it was obvious that she was a complete professional. I just need her to respond to the message I wrote her.

Landlords own the property . You pay for the use of it .

​@sarahann530 but it's not the renters' problem that the landlord bought the property on flexible rate morgage

Fyi all mortgages in France are fixed rate, which is why nobody is selling: people would have to trade a 2020 rate mortgage for a 2024 rate mortgage if they changed.

@UnipornFrumm If the cost of flour goes up the bakery charges the supermarket more for the bread and they then pass on that increase to you. That's life ,

Because you will lose your place to live when your landlord goes broke, obviously

Sounds about right.

Shame the author the video doesn’t even mention reducing immigration as something that could help. Blame the nimbys for not wanting to concrete over the beautiful countryside is the common best partial solution i see. But you can just, you know, reduce the demand side by not, oh i dont know, importing nearly a million people per year legally and giving social housing to millions of illegals. The author must be shocked to think of this solution

I don't think though it's only politicians that have property portfolios - sadly imv, it does make them less likely to do anything radical.

Irresponsibly collapsing your economy by blocking legal immigration that's absolutely required to pay for the welfare state means adding more to your portfolio of problems, not solving housing. The answer is simple. Encourage legal migrants to stay temporarily and build them purpose built housing to ease pressure on the private housing market.

It’s not super low - it’s 28 percent. The problem is that tax on labour is even higher.

A plot of land near me sold for £70,000. And that`s in Lincolnshire. I bought mine which is the same size for £28,000 in 1996. And mine had a house built on it already. It`s a joke mate for the younger people.

@@damianbutterworth2434 it’s quite cheap to be honest, I was looking for a piece of land around London and found only one 2000 sq f for over 600k pounds 🙂 but even in my home country Poland a piece of land to build a house on is about 100k gbp or more. Property prices went up by a staggering 28 percent YoY. It’s horrible now and will only get worse for our kids everywhere on this planet.

@@vonder7 Yak sure mash. I don`t know how to spell hello in Polish :) . Most of my mates at work are Polish in Lincolnshire. Your a great asset to the UK. Work hard. Clean houses and gardens. I respect Polish more than any other country. You should look at prices up here and perhaps travel to London on the train if you can. :)

@@damianbutterworth2434 thank you for the kind words. You are right the only place in the uk where it’s still somehow affordable is the north and I was thinking about that especially that I work from home. To buy a detached house in London similar to the one I grew up in I would have to have a salary of 200-300k gbp which is insane. I even viewed a few properties around Manchester but in nicer areas in the south of the city or in Cheshire it wasn’t cheap, around 600k. A lot of Poles went back home in the recent years and pretty much no one is coming now after Brexit, the ones still left are those who bought properties, have kids etc. I feel bad for the British people who are young now or didn’t buy when it was cheaper. On the flip side I know people in ordinary professions who bought their properties around 2007 for 250k and their properties are now worth 1M so they were lucky and become de facto millionaires. Such a crazy market these days. It’s also a generational thing.

We live in a regulated market economy. It’s no longer just supply and demand.

BTL landlords have fallen by hundreds of thousands in the last 10 years

The days of slaves are ending.

@@keithchapman1477 the days of slaves to government socialism is just beginning

The two are interwoven. Rental affordability fell off a cliff once Thatcher and her New Labour heirs encouraged buy to let and purchase of council housing. Which took affordable rental units off the market while no new housing was being built.

4:30 said housing yield is lower now than at any time in recent history. In many areas, and on average, a landlord who takes out a mortgage to rent out a property is going to be losing money each month. I understand emotions is one thing but the math aint mathing

A fun fact. 800,000 houses are second homes. This means they are likely empty 95% of the time. Maybe a policy is needed in big cities to stop foreign investors from speculating on properties (not that any politician would ever stop his friends buying up London).

Absolutely. And imagine if all the capital that had been sunk into economically inactive property had been invested in businesses

Rental properties are essential for a modern, successful economy. I own many rental properties and every single one of my tenants are in a transient stage of life. Either relocated for schooling or work. They either don’t want to but immediately but need a good rental property to live in until they are certain that that wish to settle long term. Or, they are professionals, in some cases surgeons or medical consultants who have started a new role in the area and only wish to buy once they are certain that their new employment is suitable. I have one tenant who moved to Canada to help set up a charity, it was a five year role. She returned to the UK, but realised that her previous London based living situation was no longer suitable. She rents a property from me until she has found an ideal house in the area and her daughter is settled in her new school. My point is that people like I describe, let’s call them temporally ‘transient’, do not want to buy immediately. Where would they be housed if there are no rental properties available? Must the government house them? Another tax burden? May I add that I have paid enormous amounts of SDLTax in acquiring my properties, plus the tax I paid over many years while building a business to earn the money to buy my properties. I am proud to be a landlord. My properties are very well maintained and I am proud to serve my tenants and work with them to ensure comfortable, happy accommodation until they are ready to buy. I’m sorry to respectfully disagree with you but you are wrong. The rental sector is essential!

@@sftmolI do agree that there are responsible landlords. I also think there should be a space for landlords to exist. Yet a significant proportion of the housing supply should be owned by local governments that rent them at near cost amounts. That would mean your properties will compete with the state, dragging prices of rents down. This works in many European countries and cities, the best case example in Vienna, leading to far more prosperous and dynamic economies.

I absolutely agree, I think this 'investor' money could be spent elsewhere such as our domestic businesses which would help boost the economy while also freeing up housing space for the younger generation which will further boost economic growth and productivity since they have their basic necessities covered.

Its a funny thing how every home owners thinks of there home as an investment its a british thing which will not change

Fortunately we are about to have a Labour government who are planning to tax the wealthy baby boomers who wrote the rules (easy mortgages when they were young and gold plated rpi linked pensions). A great opportunity for wealth redistribution is only months away!

Would have been the same with any government. 15 years of 0% and foreign money buying up houses has caused the problem. And the COVID madness melting everyone's brains.

@@EnergyUnithe problem in the uk is the sky high taxation on income, to the point that it doesn’t make sense to work harder because you will have to give over half of that income to the government to support those who don’t want to work. Labour will only make it worse, they will attack the middle class even more.

@@vonder7 Labour do not Attack. They set up the NHS and believe in fairness by nationalisation so that money doesn't just go into private pockets. Taxation from the wealthy to redistribute to the poor is the honourable thing to do. People were duped into voting Tory by the myth that all our money was going off to the EU - ignoring the massive benefits being in the EU gave us. Hopefully by being more aligned with the EU rather than attacking it we might be able to recover some lost status in the world.

@@vonder7 Look at other countries, will ya'? Almost every other country in Europe is doing better than the UK economically (Ukraine is the one exception) and many have higher taxes on income than the UK. The problem is lack of public investment. Austerity killed the economy, and types like you want more of it ...

our economy is such a failure, 33 and you don't have a house, How is this possible? How did it get this bad?

Fair enough, no grandchildren for them either.

@@maksimso5300 Late stage Capitalism. Half the property is owned by less than 2% of people. We were born too late. Now all the property, land and assets have already been hoovered up by the rich elite. Only a peaceful political change (Voting) or a violent rebellion can now change this status quo. The problem is, the rich elite have made peaceful change almost impossible buy buying the politicians of both major parties.

They will cave , it's impossible to get a nice detached house without help

Make sure you tell them that you look forward to the day they've both kicked the bucket and in the meantime insist on vetting the will.

787 is just the interests, you also have to pay the capital so it s’more like 1200. But I agree 100 percent. Unfortunately it’s always better and cheaper to buy than rent.

I think Vienna is the only outlier - we pay 655€ for 70 m2 (renting). Much cheaper than buying.

⁠@@vonder7just get a 35 year mortgage and it will be 900

@@SapereAude1490 I think I Vienna you have controlled rents because it terms of buying it’s one of the most expensive European capitals

@@vonder7 Oh yes, rent controls and social housing. Goes back a century when social democrats decided to fix housing.

The problem is not BTL, in virtually every country you can buy and let a property on a mortgage. The problem is the mass migration to this tiny overpopulated island and the laws that make it impossible to buy some land and build your own house . Even in London there are hundreds of golf courses, forests etc and not enough land.

@ michaelwilliams3232 In a lot of cities and towns all over the world, ‘Buy to Let’ is now ‘Buy or Evict to AirBnB’. Housing is being taken out of the town’s population housing market and transferred into the holiday letting market, creating massive housing shortages for the local permanent population, and turning smaller villages into winter ghost towns. I live in a beautiful town in the West Country and many small, old houses are being bought by wealthy Londoners to become AirBnB holiday lettings. There are a few streets that are all holiday lets. The worry is that rental prices for local residents will sour to match the £500 a week a holiday letting can make, or we’ll be forced out of the town due to a lack of permanent housing for the town’s population. AirBnB investors are the elephant in the room that everyone is ignoring right now. But the future is bleak for towns and villages in areas of beauty.

@@vonder7 The problem is the capital that the post war generation have. Those in their mid 50s got free education, cheap house prices and their wages were not hit as hard by inflation (although they had high interest rates). A house was around 3.5x salary. Now house prices are over 10x salary, degress cost £9k a year and wages have stagnated and your money is worth less due to QE from the central bank. Interest rates give a return of 4-5% at the moment but housing and assets outstrip that by a huge margin, so people with capitalwill buy assets rather than allowing thewir money to be devalued sitting in a bank. BTL should be limited so that no one can own more than two houses

@@silvafox7719 yeah let’s only allow to have one pair of underwear as well Mr Lenin.

It started under the thatcher govt and inherited by labour under Blair and continued until this day

Labour will only increase the already sky high taxation, that’s all they do.

@@vonder7 only for the rich. Remember it was Labour who helped prevent mass evictions (as happened in the US) in 2008 when Northern Rock collapsed. They have always genuinely helped the traditional Northern Working Towns rather than the greedy south east commuter belts.

@@EnergyUni how do you define rich? Because I earn over 100k and will probably be defined as “rich” while in reality I can barley afford a 2 bed flat. Yet I’m being taxed almost 50 percent, plus alll the council taxes, road taxes and so on. I don’t have any wealth Yet for some I’m the rich who needs to be taxed heavily. I know people who earn 30k but own a 1M plus properties and are 10 times more wealthy than I am. Yet I will be taxed heavily just trying to provide a better future for my child. Ridicolous.

@@vonder7 over 100k - stop moaning- that's a hell of a lot more than 98%+ of the population. Check for yourself on ONS. People ALWAYS think they are poorer than the next man because they look only at the people who earn 3ven more.

@@EnergyUni haha yes I knew that - I’m the rich to be taxed. I studied hard I worked hard and I live in London. 100k is only 5500 gbp, the flat itself is 2500 on a 30 years mortgage. If I was in another country I would own a nice detached property. I will never be able to afford that in the uk. Yes eat the rich like me, 100k doesn’t go far in London. And yes I know there are poorer people. But many of them own properties and have substantial wealth. It’s not the middle class or 100l earners that need to be heavily taxed. It’s those with 10M plus in wealth. Those Rishi Sunaks who have 700M in wealth. Not someone who earns 5500 pounds per month through hard work and spend half of it on mediocre accommodation. Uk is doomed with this leftist thought that we need to tax and punish everyone and I will never vote labour.

It was also common for people to die in poverty at the age of 60

@@fakename45 At the age of 40.

Really, unless you have money you've had it in the UK.

It remains perfectly normal in countries like Germany (45% of renters) where renters are protected against arbitrary rises and where you don't have politicians who decide overnight they don't like social housing and would prefer it to be privatised.

Fully agree, we will never see rates of less than 2% again as 'they' want you to own nothing and rent forever. I can forsee mortgages becoming a thing of the past eventually for the upcoming generations if we allow this to happen

Oh they will drop very low again, though nobody knows when and for all the wrong reasons: -heavily indebted economies like the UK, USA and France can't cope with the higher costs of debt servicing that come with higher interest rates. So their central banks will go back to lower interest rates, try to inflate away their debts or a combination of both -majority of people are simply not earning enough to consume and prop up the economy, hence the only way to resolve that is cheap credit and loans via low interest rates

Higher interest rates are the ONLY way to force sellers to lower house prices, simply because fewer and fewer buyers could afford their sickening prices. Remember, the government allowed this to happen (high salary multipliers + 35+ year payback lengths). It really is that simple. Initial pain, yes, but it's the only way.

No sh#t Sherlock ;)

They will in ur head if you a asleep.

Yes, they might increase over time. But if they do so under the inflation rate it is still a decrease in real terms.

Are you Gypsy Rose Lee ?

Spot on mate.

It wasn't really "the public", it was a pretty narrow section of Thatcher's cronies who bought up most of the former social housing stock. Only a tiny amount of the public ever benefitted in any way from privatisation of housing stock.

They'll have you blaming vulnerable immigrants families before you dare to ever blame your corrupt government and your own social and industrial elites.

Property prices are STILL rising, unfortunately.

Recommend pausing it.

0% in not normal, 3.5 to 7 are historically normal

Interest rates are not high and hopefully not temporary either. You must be under 40 years old.

​the person could equally tell you, "you must be very old". Because what was the debt to GDP ratio in the years you are referring to? And that's the thing: there is so much government debt in places like the US and the UK that governments have a big stake in pressuring central banks to cut interest rates: they need it to keep the cost of servicing debt low. Plus there is the mantra of "cutting interest rates is needed" to meet the obsession with growth. This is not the 1970s anymore, you folks need to wake up.

@@pritapp788 seems like you're the one that needs to wake up. Rates being cut again will only make everything worse.

You need to remember that if a pensioner downsizes or rents out their home, they still need to find another, cheaper property, and the way rents are, they'll likely be in a worse situation. Is this what you are talking about?

Not really. A lower pound will mean a lower economy and job losses...

Average house prices should/must ALWAYS be compared to the average UK salary. When you do that, and look back over the last 50 years, your jaw will drop in shock. THAT is today's issue - housing and rentals are 100% destroyed.

But the question is- why?

Try 70s

@@keithchapman1477 Inflation increased 3.5 times in the 70s, house prices certainly were not up that much in real terms ( only sightly over wages) nothing like Gordon Brown's quadrupling against the backdrop of low inflation. Indeed the twin post war lows on wage multiples were 1985 and 1997. If it were the case that houses prices ran amok during the 70s it is strange we had a post war low by 1985. I'm afraid Brown destroyed the UK Economy and we have had to have artificial props ever since under his boom. I'm sorry to say but the guy that runs this channel will never admit when the damage was done. In 1997 houses were cheap and there was no intergenerational unfairness, I bought a house in 96 for 77k and I sold in 06 for 300k. There lies the problem, Gordon Brown's madness. You cannot fight undisputed 100% correct historical facts. Clearly the guy that runs this channel is too young to remember just how good the Market was in the late 90s for young buyers. The problem with the charts shown on this channel is they are not wage adjusted. A wage adjusted house price index would show a peak in 2007 and post war troughs in 1985 and 1997.

@stewartfearn3473 @@keithchapman1477 You're both wrong. The graph of real house prices is featured 15 seconds into the video. The postwar low was clearly in the mid to late 1950s.

What went wrong? WHY were mortgage salary multipliers and payback lengths (the only 2 variables that matter) allowed, by successive governments, to get so sickeningly out of control...more money being lent out means higher and higher house prices. Sellers will ALWAYS take advantage!

If you want your own property the right time to buy is always now. My biggest regret in life is not buying a home when I could afford one, now I can't afford one, and I worry about where I can afford to rent when I retire. If I owned a house I wouldn't be that concerned.

Wait as long as you can stand to live with your parents.

Make sure to INVEST, money in a bank is losing money. Look at the s&p500 index fund.

@@ridethelakes tell that to people who bought it in 2022. Your house deposit needs to be safe, 5% is just fine for it. Split it amongst several banks and maybe a bit of gold.

You mean Eastern Europe?

@@zuzanazuscinova5209 Well, to begin with I wrote Hong Kong, but You Know Who Tube deleted my comment twice. I guess Eastern Europe would also fit ...

@@zuzanazuscinova5209 Eastern Europe has the highest property ownership in the whole world thanks to this. (80-98 percent are home owners) unlike in the uk where 40 percent of population rent rooms in overpopulated shared households spending half of their salary on this. And to be fair those kind of tower blocks flat are not much worse than 19 century terraced houses in the uk. They have far better isolation and energy efficiency. It’s just not sustainable for every one to live in a house, especially in the most densely populated country in Europe - England.

@@vonder7 I have a 2 acre garden and a triple garage... Effort and brains got me it.

@@SunofYork in central london. And your name is Charles.

The regulations is there to prevent buying a house that will fall apart.

We just had a super boom in house prices. The peak was about 2 years ago.

@@jasonbaxter3658 Yeah, in 10 years time you’ll marvel at how cheap prices were today

It's not stability if people take on excessive debt in the process.

And where exactly did you get his quote from? Cite your sources please.

Yes! Finally someone gets it. I have seen firsthand an elderly relative having to sell their home to find their care. So essentially in this country we stress ourselves our whole working lives to pay for a house and then get it taken away from us. I’ve vowed never to let that happen to me. I’m moving to Spain where you aren’t expected to sell your home

That's absolutely hilarious!

@@AM_o2000 I agree!

34% of first time buyers had family money to help them buy their property in 2017. In 2023, that figure was 37%. Family money includes cash gifts from parents, but also grandparents and inheritances.

And tough luck for people like me who don’t have wealthy family to gift me money to get me on the property ladder. Saving for a deposit is now impossible, unless I eat ice cubes for every dinner every night, and never go outside when I’m not at work - and do this for a few decades.

You're right, many commentators focus on individual landlords. They completely ignore corporate landlords who're the real problem and unaffected by most issues that individual landlords are.

It's expensive because it's the best way to keep your money safe from inflation. It's the safest investment. You can't build more houses in the city center where the demand is the highest. But you could introduce a wealth tax so that it wouldn't be such a great inflation defence anymore.

@@franekspeak953 The stock market is perfect for inflation problems. Stock market automatically adjusts for inflation

@@franekspeak953 I mean i think there are other alternatives to keep your money safe from inflation such as stocks and shares or even gold. The only reason you buy houses are for passive income from rents. Houses have generated quite shite returns in recent years so the main way of making money off them is through rents

That's definitely the way things are headed, and it's all deliberate too ! Goodbye England, it's been nice knowing you !

I think you are correct, this overpopulated island has massive pent up demand and renting is too insecure. It's just a matter of time until it booms again.

@@ridethelakes it will Boom inflation is a property investors best friend just sit tight and watch it happen