Podcast Summary
Property market update: Beyond the sensational headlines: While property prices decreased slightly, fear-mongering media headlines about interest rates, inflation, and recession can create unnecessary anxiety. Stay informed and maintain a balanced perspective.
While property prices did experience a slight decrease of 1.3% in August, the media's portrayal of a full-blown property market collapse is an exaggeration. The market update from Rob and Rob on the Property Podcast emphasizes the importance of looking beyond the sensational headlines and understanding the nuances of the situation. The media's fear-mongering about interest rates, inflation, and recession can create unnecessary anxiety, but it's crucial to remember that there are various perspectives to consider. The team at Property Hub encourages subscribers to access their location guide and other resources for valuable insights into the property market. Overall, the market update serves as a reminder to stay informed and maintain a balanced perspective in the face of market fluctuations.
Misleading headlines about a property crash: The recent drop in asking prices doesn't mean a property crash, as it's based on Rightmove data and market dynamics indicate a cooling down but still strong market
The recent headline about a 1.3% drop in asking prices for houses being a sign of a property crash is misleading. The data comes from Rightmove, which reports on asking prices, not actual sales prices. Furthermore, when comparing the current market to pre-pandemic levels, there is a significant decrease in available housing stock (39%) and an increase in buyer inquiries (20%). These market dynamics suggest that the market is cooling down but remains strong, despite the economic challenges and the cost of living crisis. The market was particularly hot in the first half of the year, with double-digit property price growth. Therefore, even if the market growth slows down, it has already experienced a strong year. The sensational headlines about a property crash should be taken with a grain of salt and not be the sole determinant of the current state of the housing market.
Tenants preferring to renew leases, leading to decreasing vacancies: Tenants are renewing leases instead of moving due to rising rents and limited availability, resulting in fewer vacancies for landlords.
According to the latest data, tenants are preferring to renew their leases rather than move, leading to a decrease in vacancies for landlords. This trend is being driven by rising rents and a lack of available properties on the market. In the Property Hub community poll, it was found that a large number of investors believe that property prices will end the year higher than they currently are. The results of this poll will be published in the upcoming newsletter. Additionally, agents have reported an increase in the number of tenancies renewing over the past year, which is beneficial for landlords as it reduces the cost and hassle associated with vacancies. This trend is expected to continue due to the current market conditions with high demand and limited supply.
Historic lows in rental voids and rising rents: England's rental market is seeing record lows in vacancies and increasing rents, but mortgage rates are uncertain and rents aren't keeping up with inflation. Consider market dynamics before discussing price freezes.
The rental market in England is experiencing historic lows in void periods, while rents are rising but not keeping pace with inflation. This suggests that there is potential for rents to continue increasing in the near future. Meanwhile, mortgage rates are on the rise, but the longer-term outlook remains uncertain. Despite calls for a rent freeze due to rising living costs, it's important to note that rents are actually lagging inflation. The dynamics of the market should be considered when discussing price freezes, rather than singling out one category. Overall, the property market is experiencing changes, and investors should stay informed about the latest trends and developments.
Considering Mortgages in Current Market Conditions: Investors should evaluate their circumstances and goals before deciding on mortgage fixation or renewal, as margins are high for lenders but deals can still be found in the market.
This is an opportune time for investors to be active in the property market, taking advantage of the current market conditions. However, when it comes to mortgages, the situation is more complex. Margins in mortgage products are currently high, with lenders borrowing at lower rates than they're selling to consumers. Investors should carefully consider their individual circumstances and goals before making a decision on whether to fix or renew their mortgages. Despite the challenges, there are deals to be had in the market, and many developers are looking to make deals with savvy investors. Overall, it's essential to stay informed and adaptable in the current market climate.
Market uncertainty and holiday lets: Consider shorter-term investments due to market uncertainty. Holiday lets are popular but may face increased regulation and negative community impacts.
The speaker believes that due to market uncertainty, it might be more beneficial to invest in shorter-term products, such as 2-year fixed mortgages, rather than longer-term ones. He also mentions that holiday lets have become increasingly popular, leading to potential negative impacts on local communities and resulting in increased political interest and potential regulation. It's important to note that this is not investment advice and everyone should value their own financial situation and priorities. The speaker also mentions the potential negative effects of holiday lets on local communities, and the increasing regulation and media attention surrounding this issue. In summary, the uncertainty in the market and the growing popularity and potential regulation of holiday lets are two key takeaways from the discussion.
New regulations for holiday let market: Leeds Building Society introduces new mortgage policies for second homes and holiday lets, and a new political party proposes tougher measures against landlords, signaling potential changes for the holiday let market.
The holiday let market, which was once a small and niche sector, is now gaining significant attention and regulation is likely to follow. The Leeds Building Society has already started implementing new mortgage policies for second homes and holiday lets, and it's possible that other lenders may follow suit. Additionally, a new political party called Breakthrough has emerged, promising tougher measures against landlords, including rent controls, higher taxes on property income, and the scrapping of buy-to-let mortgages. These developments underscore the importance of staying informed and adaptable in the ever-changing world of property investment.
UK Political Landscape and Entertainment Recommendations: The UK political climate poses challenges for landlords, with new parties emerging but uncertain impact. Entertain yourself with 'This is Wrexham' or Property Hub UK's weekly episodes for property insights.
The political landscape in the UK seems to present challenges for landlords, with some parties appearing less favorable to their interests. However, it remains uncertain whether newer political entities will make significant inroads into the established three-party system. On a lighter note, a new TV series, "This is Wrexham," about Hollywood stars Ryan Reynolds and Rob McElhinney's purchase of Wrexham Football Club, is an entertaining recommendation for viewers, even if they're not football fans. Additionally, Property Hub UK releases a new episode every week on Disney+ and other platforms, providing market updates and discussions on property-related topics. Don't forget to follow the show and leave comments for a chance to interact with the hosts. For those interested in investing, the Property Hub UK fund portfolio offers more information at portfolio.co.uk. Tune in next Thursday for more insights.
