Logo

    TPP594: Has the 18 Year Property Cycle failed us?

    enAugust 01, 2024
    What is the new yearly house building target for the UK?
    How has London's house building target changed recently?
    What factors might affect the success of the housing initiative?
    What impact has COVID-19 had on the property market?
    Why might the 18-year real estate cycle not apply now?

    Podcast Summary

    • UK house building targetsThe UK government has mandated councils to build 370,000 new homes annually, but it's uncertain if this target will lead to a decrease in house prices or even be met, as London's target has been reduced, and success depends on private builder cooperation and council development facilitation.

      The UK government has made house building targets mandatory for councils, aiming for 370,000 new homes each year. This is a significant increase from previous years and could potentially impact the property market. However, it remains uncertain whether this ambitious target will be met, and even if it is, it may not lead to a noticeable decrease in house prices due to the concentration of targets outside cities. London, for instance, has seen its target reduced. The success of this initiative will depend on the cooperation of private builders and the ability of councils to facilitate development. Keep tuned for updates on this developing story and other property-related news.

    • Property CycleThe 18-year property cycle's current status is causing uncertainty among investors due to delayed rent reform news and the predictable sequence of boom and bust.

      The 18-year property cycle, which is believed to govern property price fluctuations, continues to be a topic of uncertainty. Rent reform news has been delayed until October, adding to the uncertainty. The property cycle, which includes a predictable sequence of boom and bust, has generated more questions than answers for investors. Despite its promise of predictability, the cycle's current status is causing doubts. In less than a minute, the 18-year property cycle refers to the idea that property prices experience regular booms and crashes, with an entire cycle lasting 18 years. The cycle consists of four years of falling prices, seven years of mild price rises, a mid-cycle wobble, and a final aggressive seven-year period of rapid price growth. Currently, investors are uncertain about where they stand in this cycle and whether recent events will impact it. Stay tuned for a full episode dedicated to discussing the property cycle and the doubts surrounding it.

    • Real Estate CycleThe real estate market follows an 18-year cycle of growth and correction, but the reliability of this cycle is being questioned due to potential market shifts and external factors.

      The real estate market follows an 18-year cycle of growth and correction, with each cycle starting from a higher point than the previous one. This cycle, popularized by economist Fred Harrison, has held true for many years, providing a sense of calm during market fluctuations. However, despite Harrison's prediction of a 20% price rise followed by a crash in 2026, some question the reliability of the 18-year cycle due to potential accelerated market changes. I, for one, have doubts about the cycle's consistency due to the possibility of increasingly rapid market shifts and the potential for external factors to significantly impact the cycle. Regardless, the 18-year property cycle remains an intriguing concept that offers valuable insights into real estate market trends.

    • Real Estate BoomDespite recent growth, current property market does not align with historical markers of a real estate boom due to moderate growth rates and real value decrease over last 5 years, as well as pandemic uncertainty

      Despite some recent growth in property prices, we are not currently experiencing a real estate boom. The last boom occurred around the turn of the century, with annual growth rates exceeding 10% for several consecutive years. Since then, property prices have not seen such aggressive growth. Additionally, when considering inflation, property values have actually decreased in real terms over the last five years. While there have been some solid years of growth, none have approached the levels seen during the last boom. Furthermore, the COVID-19 pandemic has introduced significant uncertainty into the market, making it even more difficult to predict a boom. Overall, the current state of the property market does not align with the historical markers of a real estate boom.

    • Real Estate Cycle InterventionHistorical real estate cycles may not follow the 18-year pattern due to increased economic intervention, leading to potential market instability

      The 18-year real estate cycle, which includes phases of growth and decline, may not be playing out as expected due to increased economic intervention. Historical data suggests that a boom is necessary for a bust, but the current economic landscape, with its high financialization and frequent interventions, may be preventing the natural cycle from unfolding. While some argue that the 18-year cycle is an average and not an exact science, others suggest that the current level of intervention could be a major factor in why the cycle is not occurring as predicted. Ultimately, while the concept of real estate being cyclical remains valuable, the specific 18-year timeframe may need to be reconsidered or expanded to account for these new economic realities.

    • 18-year property cycle disruptionThe 18-year property cycle, a long-held belief in real estate markets, is being questioned due to the COVID-19 pandemic, and may no longer be a reliable indicator of market trends.

      The 18-year property cycle, a long-held belief in real estate markets, is being questioned due to the unexpected disruption caused by the COVID-19 pandemic. The speakers in the discussion agree that the cycle, which typically includes a seven-year run-up followed by a seven-year downturn, has been derailed and may not return to its original form. Some believe that the cycle could still be in effect, but with a delayed timeline, while others argue that it has been broken entirely. The speakers also share their personal perspectives on the significance of the 18-year property cycle and how its disruption might impact their investment strategies. Ultimately, the consensus seems to be that the cycle, as we know it, may no longer be a reliable indicator of real estate market trends.

    • 18-year property cycle theoryThe speaker, a proponent of the 18-year property cycle theory, is now questioning its relevance and may shift to making investment decisions based on current market conditions

      The speaker, who has been a strong advocate of the 18-year property cycle theory, is now questioning its relevance and considering stepping away from it. The speaker believes that the cycle may not exist this time around and plans to make investment decisions based on current market conditions instead. The speaker acknowledges that this is a significant shift in perspective and feels emotional about it, but is open to revisiting the theory in the future. The speaker invites listeners to share their thoughts on the matter through a poll on Property Hub UK's social media channels.

    • Amazon price trackingCamelcamelcamel.com is a useful website for tracking Amazon item prices and setting alerts for price drops, allowing consumers to save money on regularly purchased items

      There's a useful website called camelcamelcamel.com that can help consumers save money on regularly purchased items from Amazon by tracking price history and setting alerts for price drops. During the discussion, the hosts shared their thoughts on the current state of the property market and encouraged listeners to share their opinions through polls on social media. They also mentioned a resource called camelcamelcamel.com, which is a price tracker for Amazon items. By inputting the URL of a product, users can view its historical price data, including the highest and lowest prices, and set alerts for when the price drops below a desired threshold. This tool can be particularly beneficial for those who use certain items regularly and are not in a rush to purchase them. The hosts emphasized the importance of being patient and taking advantage of price drops to stock up for the future. They also reminded listeners to sign up for their newsletter and tune in for upcoming episodes.

    Recent Episodes from The Property Podcast

    TPP600: September Market Update

    TPP600: September Market Update
    In this special market update celebrating an incredible 600 consecutive episodes, Rob & Rob look into the latest market news – unpacking everything from diverse house price trends to how potential changes in capital gains tax may be influencing landlords’ decisions. Plus, there’s some good news on the mortgage front and a surprise twist in this week’s Hub Extra!  (0:48) What’s going on with house prices  (6:28) Are landlords selling up?  (10:20) There’s movement on the Renters’ Rights Bill  (12:02) Some positive updates about mortgages  (13:46) The latest from the world of politics   (16:25) Hub Extra (with a twist!)  Links mentioned:  Halifax: UK house price growth approaches two-year high  Nationwide house price index  Concern over housing costs hits record high across rich nations  Rise in ex-rental properties listed for sale before Budget  Rental sales appraisals rise amid landlord CGT fears  Renters’ Rights Bill set for Parliament this week  Rental bidding wars set to be banned  Lloyds Bank raises borrowing limit for first-time buyers  Coventry lowers BTL rates  James Cleverly: I would abolish stamp duty  Our Greatest Fear —Marianne Williamson  Enjoy the show?  Leave us a review on Apple Podcasts - it really helps others find us!  Sign up for our free weekly newsletter, Property Pulse  Find out more about Property Hub Invest
    The Property Podcast
    enSeptember 12, 2024

    ASK445: How do I convert growth into cash? PLUS: Can I get my lender to recognise improvements I've made?

    ASK445: How do I convert growth into cash? PLUS: Can I get my lender to recognise improvements I've made?
    Happy Tuesday! Rob & Rob are back and they’re answering two new listener questions!  (0:44) Owen’s curious about how you extract the cash from a capital growth-focused property portfolio. He understands that capital growth creates more wealth in the long run compared to high rental yields, but he's unsure how to access that wealth when the time comes. He turns to Rob & Rob for guidance on the best approach and whether he should rethink his overall strategy. (4:08) James wants to know if he can request a full re-evaluation of his property from the mortgage company to reflect the improvements he’s made, which could potentially increase its value.  Enjoy the show?  Leave us a review on Apple Podcasts - it really helps others find us!  Sign up for our free weekly newsletter, Property Pulse  Send us your question by calling us on 013 808 00035 and leaving a message with your name and question (normal UK call rates apply) or click here to leave a recording via your computer instead.  Find out more about Property Hub Invest
    The Property Podcast
    enSeptember 10, 2024

    AOB: How 5% extra effort can double your results

    AOB: How 5% extra effort can double your results
    In today’s inspiring AOB, Rob & Rob discuss the simple yet effective ways to stand out in business – whether you're an entrepreneur, employee, or a property investor. Sharing their own real-life experiences, they reveal how these principles helped them build a top-performing podcast and a £100m property business.    Enjoy the show?    Leave us a review on Apple Podcasts - it really helps others find us!  Give us your feedback on Instagram – Rob Bence & Rob Dix  Find out more about Property Hub Invest
    The Property Podcast
    enSeptember 06, 2024

    TPP599: What would we do if we started again?

    TPP599: What would we do if we started again?
    Rob & Rob rewind the clock on their property journeys to share what they did, and what they’d do differently knowing what they do now. There’s plenty to learn from their experiences and mistakes, wherever you are on your property journey.  (0:58) News story of the week  (2:27) What would The Robs do if they started again?  (3:08) How did Rob & Rob get started in property investment ?  (11:11) Looking back, what changes would they make?  (15:10) What would they do the same?  (17:27) What they still do today  (19:40) Their biggest lightbulb moments  (22:39) Rob & Rob’s advice and guidance for you  (30:48) Hub Extra    Links mentioned:  Mortgage approvals hit highest level in two years: BoE  Enjoy the show?  Leave us a review on Apple Podcasts - it really helps others find us!  Sign up for our free weekly newsletter, Property Pulse  Find out more about Property Hub Invest
    The Property Podcast
    enSeptember 05, 2024

    ASK444: Is this Labour rumour true? PLUS: Does my refinancing plan work?

    ASK444: Is this Labour rumour true? PLUS: Does my refinancing plan work?
    It’s time for your latest round of Ask Rob & Rob, and we’ve got some cracking ones this week!  (0:37) Andy's come across an interesting article about Labour potentially tweaking the renter's reform bill. It mentions they might introduce a French-style hardship test. Is there any real substance to this or is it just rumour mill chatter?  (3:11) Tom's got a chunk of capital and is considering a strategy to buy houses outright, refurbish them, and then remortgage to withdraw much of his initial investment. Now he’s wondering how banks will assess his remortgage applications; will it solely be based on the rental income or is there more to it?   Enjoy the show?  Leave us a review on Apple Podcasts - it really helps others find us!  Sign up for our free weekly newsletter, Property Pulse  Send us your question by calling us on 013 808 00035 and leaving a message with your name and question (normal UK call rates apply) or click here to leave a recording via your computer instead.  Find out more about Property Hub Invest
    The Property Podcast
    enSeptember 03, 2024

    TPP598: Is property the ultimate investment for our new economic era?

    TPP598: Is property the ultimate investment for our new economic era?
    When interest rates began to rise around the world in 2022, a 30-year trend of ever-cheaper money came to an end. It’s clear that we’ve entered a completely new financial era...  And the one question on investors lips, is does property still stack up?   (0:50) News story of the week  (2:31) What is this new financial era?  (7:40) What should we be investing in?  (10:50) Asset classes we MIGHT invest in  (10:58) The stock market  (14:17) Gold  (16:31) Bonds  (18:18) Bitcoin  (20:30) How does property stack up?  (28:19) Hub Extra  Links mentioned:  10 Minute Mail  Enjoy the show?  Leave us a review on Apple Podcasts - it really helps others find us!  Sign up for our free weekly newsletter, Property Pulse  Find out more about Property Hub Invest
    The Property Podcast
    enAugust 29, 2024

    ASK443: How do I convince my husband to invest? PLUS: What should I do when I move abroad?

    ASK443: How do I convince my husband to invest? PLUS: What should I do when I move abroad?
    Get ready for this week’s Ask Rob & Rob as the guys answer two more listener questions!  (0:40) Sam’s husband has £90K available from his pension fund, and she’s eager to persuade him to invest the money in property to help secure their financial future, rather than using it to pay off existing debt. She turns to Rob & Rob for their expert advice on how to grow their pension pot and make smart investment choices.  (4:49) Rich is planning a move to Dubai, he currently owns one buy-to-let property, with plans to rent out his current home once he relocates. With £200K coming his way next year, he’s weighing his options: should he use the money to pay off some or all of the capital on his existing properties, or invest in another property to grow his portfolio?  Enjoy the show?  Leave us a review on Apple Podcasts - it really helps others find us!  Sign up for our free weekly newsletter, Property Pulse  Send us your question by calling us on 013 808 00035 and leaving a message with your name and question (normal UK call rates apply) or click here to leave a recording via your computer instead.  Find out more about Property Hub Invest
    The Property Podcast
    enAugust 27, 2024

    TPP597: How often do property prices double? (Surprising data)

    TPP597: How often do property prices double? (Surprising data)
    You often hear that property prices double every 10 years, a claim that encourages us to invest in property and buy our own homes - but is it actually true? Rob & Rob have dug deep into the data to investigate this popular belief, and it turns out we’re living in highly unusual times! Tune in to find out what they uncovered…  (0:50) News story of the week  (5:40) Does property really double every 10-years?  (8:00) The shocking discovery…  (13:50) What lies ahead?  (21:30) Hub Extra    Links mentioned:  Sign up for our free weekly newsletter, Property Pulse  Angela Rayner stops Mayor’s plan to impose rent controls on landlords  Omnos  Enjoy the show?  Leave us a review on Apple Podcasts - it really helps others find us!  Sign up for our free weekly newsletter, Property Pulse  Find out more about Property Hub Invest
    The Property Podcast
    enAugust 22, 2024

    ASK442: How do I use the 18 year cycle when remortgaging? Is now the time to buy my freehold?

    ASK442: How do I use the 18 year cycle when remortgaging? Is now the time to buy my freehold?
    Ready for this week’s Ask Rob & Rob? We’ve got two new listener questions lined up…  (0:45) How do you use the UK’s position in the 18-year property cycle to influence your decision making with your mortgage and portfolio strategy? That’s exactly what Phillip wants to know, so he turns to Rob & Rob for their expert advice. What will they say?  (4:05) Last year, James had the chance to buy the leasehold on his property for £185K, but now the price has dropped to just £30K! He’s curious if this drastic reduction is due to potential legal changes affecting ground rent, or if there's another reason his landlord might be eager to sell.  Enjoy the show?  Leave us a review on Apple Podcasts - it really helps others find us!  Sign up for our free weekly newsletter, Property Pulse  Send us your question by calling us on 013 808 00035 and leaving a message with your name and question (normal UK call rates apply) or click here to leave a recording via your computer instead.  Find out more about Property Hub Invest
    The Property Podcast
    enAugust 20, 2024

    TPP596: The silent property crash: one year later

    TPP596: The silent property crash: one year later
    In our most popular episode of last year, we revealed a phenomenon many had overlooked - the silent property crash. It's arguably the biggest concept in property right now, affecting everyone’s wealth – but if you don’t fully grasp what’s happened, it’s nearly impossible to take the right action. Join Rob & Rob as they share the latest developments one year later and discuss what you should be doing as an investor.   (1:05) News story of the week  (6:16) The silent property crash update…  (7:15) Let’s recap what the silent property crash actually is  (9:03) What does the data tell us?  (13:14) What should you do as an investor?   (19:30) Rob & Rob’s conclusion  (20:49) Hub Extra    Links mentioned:  Halifax house price index  Landlords face £11,000 higher CGT bill if rumours true  TPP541: The silent property crash  TPP571: Update on the silent property crash  The silent property crash of 2023  Enjoy the show?  Leave us a review on Apple Podcasts - it really helps others find us!  Sign up for our free weekly newsletter, Property Pulse  Find out more about Property Hub Invest
    The Property Podcast
    enAugust 15, 2024