Podcast Summary
Challenging the belief of rent increases due to landlords leaving the market: Despite claims, rents have remained stable, and landlords don't automatically increase rents due to tax increases or leaving the market.
It's essential to acknowledge the sensible arguments from all sides in the ongoing debate about property investment and its impact on rents. This week, the nonprofit organization Generation Rent provided some economic analysis that challenged the common belief that landlords leaving the market would significantly increase rents. Instead, the evidence suggests that rents have remained relatively stable, and it's crucial to avoid making dishonest or unrealistic claims to support an argument. The housing market affects people's lives significantly, and it's important to approach the discussion with a serious and informed perspective. Additionally, the claim that landlords will automatically increase rents due to tax increases is also unfounded. Most landlords do not undercharge the market, and the market forces will ultimately determine rental prices.
Market Determines Rent Levels, Not Greedy Landlords: The market, not landlords, sets rent levels based on demand and supply. Urban Splash focuses on creating modern, customizable houses with high-quality design elements to cater to those who prefer traditional houses.
The market, not landlords, determines rent levels in different areas. Tom Blockson, the chairman and founder of Urban Splash, emphasized this point during his interview on the podcast. He explained that the misconception that landlords in certain areas are more greedy and charge higher rents is a fallacy. Instead, the market dictates the rent levels based on various factors, including demand and supply. Tom also shared his thoughts on modular housing and its potential role in the UK housing market. He noted that a significant portion of the population prefers old, Georgian or Victorian houses over new builds due to their unique design features. Tom and his team at Urban Splash aim to address this issue by focusing on creating modern houses with high-quality design elements that can be easily customized. By doing so, they hope to become a reputable designer brand in the housing industry. Overall, Tom's insights provide valuable perspectives on the UK property market and its future trends. His emphasis on the importance of quality design and the role of the market in determining rent levels are essential considerations for property investors and homebuyers alike.
Exploring the Future of Home Building with Modular Technology: Modular technology offers improved quality, personalization options, and potential for mass production and cost savings in home building, but faces challenges in attitude, economics, and technology.
The construction industry is exploring new methods to build homes more efficiently and affordably, with modular technology being a promising solution. Traditional methods using brick and labor have become outdated and expensive, leading companies to consider building houses in factories instead. This approach offers several advantages, such as improved quality, personalization options, and the potential for mass production and cost savings. However, there are challenges to overcome, including attitudes towards prefab housing, economic factors, and technological limitations. Despite these hurdles, there is optimism that modular construction will become more mainstream in the UK and help make housing more accessible and better designed. The speakers also expressed their continued enthusiasm for property markets and developments in cities like Liverpool and Manchester, acknowledging their maturity but recognizing their potential for growth and affordability.
UK Property Price Disparity Narrowing, Regions Offer Opportunities: Expert predicts narrowing city-suburb price gap, emphasizes UK regional investment opportunities, and highlights Birmingham's Port Loop project as a community-focused development.
The disparity in property prices between city centers and suburbs in various UK cities, such as Liverpool, Manchester, Birmingham, and others, is significant. However, this expert believes that this discrepancy will narrow, making city centers more valuable. He also emphasizes that the UK is overly centralized towards London and that regions offer good investment opportunities. Birmingham's Port Loop project, which focuses on creating a community-oriented development with a canal running around it, is an example of their approach. The expert looks for political leadership, vision, and good transport hubs when considering new sites for their modular housing scheme. The rental market's growth is acknowledged, and they are adapting to cater to this market with their housing solutions.
The UK's Residential Rental Market: Complex History and Growing Demand: The UK's rental market is expanding due to societal trends and institutional dominance, but individual landlords can compete by focusing on quality, longer leases, and customer service.
The UK's private rental market has a complex history shaped by legislation and societal needs, but it's still smaller compared to other countries. The trend of more people moving for work and increased stamp duties have led to a larger residential rental market, which is increasingly being dominated by institutions. However, there's a growing demand for well-designed homes, whether for rent or sale. Our company aims to cater to this demand by offering high-quality, well-designed homes through a residential fund, which will eventually be accessible to retail investors. For individual landlords looking to compete with institutions, it's crucial to focus on buying and maintaining good properties, offering longer leases, and treating tenants as customers. The future of residential real estate lies in offering flexible, high-quality options for renters and buyers alike.
Creating high-quality properties and focusing on existing customers: Investing in city centers, focusing on design, long-term commitment, and customer satisfaction leads to successful property development and business.
Focusing on existing customers and creating high-quality properties is key to long-term success in both property development and business. Tom Blocksby, with his experience in property development through Urban Splash, emphasizes the importance of design, long-term commitment, and customer satisfaction. They aim to build properties that stand the test of time, curate tenants to create vibrant communities, and market their properties effectively. In the future, Urban Splash aspires to expand its modular housing production, create accessible investment opportunities, and continue restoring listed buildings. A simple yet impactful lesson from this discussion is the value of investing in city centers, where the most expensive properties lie.
Trend of property prices shifting to city centers: In some major cities, property prices are rising in city centers, defying the usual trend of cheaper prices there. Manchester and Birmingham are examples of this trend. Modular housing could also make housing more affordable and efficient.
The trend of property prices in many major developed cities around the world is shifting, with the most expensive areas moving from the outskirts to the city centers. This is unusual for the UK market, where prices are typically cheaper in the city center and more expensive on the outskirts. However, this trend could change in the future, particularly in cities like Manchester and Birmingham, where prices are already rising. Another intriguing point discussed was the potential for modular housing to make housing more affordable and efficient, as technology and innovation have made other consumer goods cheaper and better over time. It will be interesting to see how these trends develop over the next decade. Overall, the discussion provided fascinating insights into the future of property markets and the potential for innovation to address affordability and convenience.
Learning from Reality TV: $1,000,000 Listing New York: Discover unexpected insights into high-end apartment sales in NYC from reality TV shows and agents like Ryan Serhant, enhancing skills and feeling less guilty about watching TV.
Educational value can be found in unexpected places, such as reality TV shows. The Property Hub team recommends the TV show $1,000,000 Listing New York, which provides insights into the world of selling high-end apartments in New York City. One agent featured on the show, Ryan Serhant, has also written a book and given a talk at Google, which offers valuable sales secrets and lessons on mindset and organization. By learning from these sources, one can enhance their skills and feel less guilty about watching TV. The interview with Ryan Serhant can be found on YouTube and the show notes for this episode at thepropertyhub.net/tom2. Remember, every Friday morning, Property Hub members receive the Hub Extra email with additional resources, tips, and quotes to help them in their property investing journey.
