Podcast Summary
Landlords blamed for low property supply and rising house prices: Low supply of properties due to long-term holding by investors causes house price increase
Landlords are being blamed for the rising house prices in Britain. According to a recent report by Rightmove, the housing market saw a 2.1% increase in prices in January. The reason for this, as per Rightmove, is the low supply of properties on the market. The cause of this low supply is the high demand from property investors, who tend to hold onto their properties for longer periods than residential occupiers. This results in fewer properties being available for sale, leading to an increase in prices. The property podcast, hosted by Rob Benz and Rob Dicks, discussed this topic in their latest episode, where they also shared their thoughts on the best places to invest in property in 2015. They encouraged listeners to check out their property tips book, which has been a huge success since its launch and is currently the number one property book in the UK.
The UK housing crisis: Causes and debates: The housing crisis in the UK is a complex issue, driven by underinvestment in new housing stock and affordability concerns for first-time buyers.
The housing crisis in the UK is a complex issue with various contributing factors. While there is blame being placed on landlords for the lack of properties available on the market, the root cause may be the chronic underinvestment in new housing stock over the last decade. The percentage of housing stock owned by landlords is small compared to owner occupiers. The housing crisis exists, and building more homes is a solution, but it's easier said than done. The current state of the UK housing market, particularly in London and the southeast, is a topic of debate. Some believe prices will continue to rise, while others think a crash is imminent. Regardless, the affordability of properties versus average salaries is a significant concern for first-time buyers.
House price to earnings ratios can be misleading indicators of affordability: Consider disposable income, affordability, and infrastructure when deciding to invest in property, not just house price to earnings ratios.
House price to earnings ratios can be misleading when it comes to determining whether it's a good time to invest in property. Economist David Smith argues that disposable income is a better indicator of affordability. For instance, in the 1980s, house price to earnings ratios were low, but it wasn't a good time to buy due to high interest rates and inflation. The hosts also discussed their past criticisms of certain cities, such as Burnley and Norwich, but emphasized that transport links are an important factor to consider when deciding where to invest. First-time buyers may feel apprehensive about making their first investment, but it's crucial to look beyond single data points, such as house price to earnings ratios, and consider other factors, like affordability and infrastructure.
London's high property prices make it less attractive for investment: Consider the North of the UK for investment with reasonable prices and promising growth potential, especially in Manchester and Leeds.
While London has strong fundamentals, its high property prices make it less attractive for investment. The North of the UK, on the other hand, offers more reasonable prices and promising growth potential, with Manchester and Leeds being key areas to consider. These cities have strong fundamentals and have shown signs of growth, making their commuter satellite towns attractive investment opportunities as well. Transport infrastructure and employment opportunities are crucial factors when considering property investment. While London's fundamentals are well-known, the North offers a more balanced investment opportunity.
Investing in UK property beyond the southeast: Consider Liverpool, Sheffield, Nottingham, and the Northeast for strong investment opportunities with good yields and potential for growth. Look for areas following the property cycle with favorable conditions for growth.
Outside of the traditional hotspots in the southeast, there are other areas in the UK, such as Liverpool, Sheffield, Nottingham, and even the Northeast, that offer strong investment opportunities with good yields and potential for growth. These areas follow the property cycle and have the fundamentals in place, making them worth considering for investors. While some cities like Manchester and Leeds may already be well-established and more challenging to find value in, there are still opportunities to be found in the middle ground where affordability is good and all the necessary factors are present. Ultimately, it's about striking a balance between potential returns and the level of risk one is willing to take on. The key is to follow the fundamentals and look for areas where the conditions are favorable for growth.
Commuter belts outside London to see growth: The outer commuter belts of major cities, offering good transport links and strong fundamentals, are expected to see growth this year. While yields may not be as high as in city centers, there's potential value in these areas and in the inner commuter belt.
The outer commuter belts of major cities, specifically those 30 to 60 minutes outside of London, are expected to see growth this year due to the natural ripple effect from the inner commuter belt's growth in previous years. These areas offer good transport links and strong fundamentals, making them attractive investment options. However, it's important to note that the yield may not be as high as in the center of towns. Additionally, there is still potential value in the inner commuter belt areas, especially if the deals are particularly strong. The discussion also mentioned the possibility of Sydenham and Sutton as potential investment areas due to their strong transport links and growing desirability.
Consider yield and fundamentals in property investment: Focusing solely on capital growth can be risky in property investment. Instead, prioritize both yield and strong fundamentals to mitigate risk and potentially identify areas for growth.
When it comes to property investment, focusing solely on capital growth can be risky. Instead, it's essential to consider both yield and fundamentals. The speaker warns against getting swept up in the hype of potential capital growth and neglecting the importance of a healthy yield. Strong fundamentals and a respectable yield can indicate an area with potential for growth, although it's not a guarantee. The speaker also mentions the "Waitrose effect," suggesting that the presence of high-end businesses in an area can be an interesting data point, but should not be the sole basis for investment decisions. Ultimately, it's crucial to keep an eye on both yield and fundamentals when making property investment decisions.
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Oomph is a user-friendly logo generation website that offers a decent selection of logos for businesses looking for a quick and affordable solution. By inputting the name and a few keywords related to your business, you can browse through various logo options and customize them to your liking for £25. Although the logos may not be as good as those designed by professionals, they are a good option for businesses starting out or testing the waters. The site offers a vast selection of logos, some of which are impressive. Additionally, the podcast "Property Podcast with Rob and Rob" received another five-star review from a listener named podcast sftw, who praised the informative and entertaining content and requested more daily episodes. Overall, Oomph is a valuable resource for logo creation, and the Property Podcast with Rob and Rob continues to receive positive feedback from listeners.
New episodes every Thursday, apologies for past delays: Consistent new podcast episodes every Thursday, delays resolved, upcoming focus on saving for a deposit, check show notes for resources, join mailing list
The Property Geek Podcast is now consistently releasing new episodes every Thursday morning at 7 AM for listeners to download for their commute or convenience. Apologies were made for any previous delays due to technical issues with iTunes, which have been resolved. Additionally, an upcoming episode will focus on strategies for saving for a deposit for a new investment property, whether it's a first or subsequent one. Listeners are encouraged to check out the show notes at propertyhub.net/bestplaces2015 for links to relevant resources. The podcast team appreciates 5-star reviews and invites listeners to join their mailing list at thepropercypodcast.com.
