Podcast Summary
UK Government's stance on rent controls: The UK Government, represented by Angela Rayner, has no plans to impose rent controls on landlords in London, emphasizing the lack of supply as a significant factor in the housing crisis and deeming it an ineffective solution.
The UK Government, represented by Angela Rayner, has no current plans to impose rent controls on landlords in London, according to recent reports. This goes against previous rumors leading up to the election. The lack of supply being a significant factor in the housing crisis was also emphasized, with artificially capping prices being deemed an ineffective solution. The property industry received some positive news from this development. Additionally, the hosts of the property podcast, Rob and Rob, conducted a survey among their community through Property Pulse newsletter to understand their feelings towards the property industry, marking the first set of results.
Property Price Doubling Myth: Property prices do not double every 10 years as commonly believed, with the fastest doubling in 3 years and the longest taking 14 years. Investor intentions vary by location.
While property prices have doubled every 10 years as a popular belief, the data from the Nationwide Price Index reveals that the fastest property prices ever doubled in just three years during the 1970s, and the longest it took was 14 years from 1989 to 2003. These findings challenge the common assumption that property prices double every decade. Additionally, the Property Pull survey results showed that 60% of investors plan to buy this year, while only 19% plan to sell, with investors in London and Scotland being the most negative on house prices and inclined to sell. Overall, these insights highlight the importance of considering historical data and location when making property investment decisions.
UK Property Prices: Since the 1950s, UK property prices have roughly doubled every 10 years, but the current market is experiencing an unusually long period of growth with prices yet to double since the 2007 peak
While the average property price in the UK has roughly doubled every 10 years since the 1950s, the current market is experiencing an unusually long period of growth with prices yet to double since the previous peak in 2007 or the trough in 2009. This record-breaking era, which started after a decade of minimal growth from 1999 to 2009, has seen the majority of the growth occurring in the last four years. Despite common belief, property prices have not doubled since the 2009 trough and are still far from doubling for those who bought at the peak in 2007. The average growth rate of 10.10% every 10 years should be considered with caution as it masks significant variation in the market.
UK House Price Cycles: History shows that UK house price cycles eventually end, and a new cycle of faster growth is likely to follow the current period of low growth. Potential value lies outside London where prices have not kept pace with inflation.
The current period of relatively low house price growth is a result of the extremely aggressive growth experienced between 2004 and 2007. During that time, house prices doubled, and while they did not drop significantly after the crash, the subsequent years have seen disappointing growth. However, history shows that all cycles come to an end, and the current period of low growth is likely to be followed by a faster cycle with stronger growth. This means that there is potential value in UK property markets outside of London, where prices have not kept pace with inflation. While it's impossible to predict exact numbers, it's likely that house prices will eventually double again, and investors who position themselves correctly could benefit significantly from this trend.
Future of Real Estate Market: Despite historically boring market, speakers remain cautiously optimistic about future growth and potential rewards, but affordability data suggests it could still be several years before significant price increases occur.
The real estate market is expected to experience growth in the future, potentially leading to a new boom period. However, it's unclear whether this growth will be gradual or sudden, and how long the current period of steady growth will last. The speakers agree that the market has been historically boring compared to past cycles, but this could set us up for potential rewards in the future. Affordability data suggests that we may still be in the early stages of a new cycle, and it could be several more years before significant price increases occur. Overall, the speakers remain cautiously optimistic about the future of the real estate market, acknowledging that things can change quickly and that only time will tell what lies ahead.
Economic growth and health: Historically, new leadership and optimism can lead to economic growth. Prioritize health to be in the best position to benefit from potential growth.
The economic outlook is positive despite current uncertainties, with potential for a mini boom due to new leadership and optimism. This could be an opportune time for growth, and it's essential to prioritize health to be around to witness and benefit from it. The speaker discusses the potential for a new leader in the US and a new government, which historically brings optimism and stronger market cycles. Although there are concerns about ongoing wars and their potential impact on the economy, the speaker argues that these have not derailed the economy in the past. With the possibility of growth on the horizon, it's crucial to focus on health and wellbeing to be in the best position to reap the benefits. The speaker shares his experience using the Omnos service for health testing, praising its ease and the follow-up support provided when results reveal markers outside the normal range. By prioritizing health, individuals can ensure they are in the best position to capitalize on the potential economic growth ahead.
Blood work and health: Regular blood work is crucial for maintaining and improving health. It can reveal important health markers, inspire lifestyle changes, and lead to better overall well-being.
Getting regular blood work done is an essential investment in your health. The speaker shared his personal experience of using a blood testing service and seeing improvements in his health markers after making necessary lifestyle changes. He emphasized that everyone should prioritize their health, considering it their greatest asset. The process of getting blood work done and trying to improve health markers can be seen as a competition or a positive trigger, leading to better mental and physical health. The speaker strongly recommended getting blood work done, and while he was open about using different services, he particularly appreciated the one he mentioned for its end-to-end good experience. He also encouraged listeners to sign up for the Property Hub weekly newsletter for updates and insights.