My Italian boyfriend is 28 earns a relatively normal salary, has a netflix subscription, has an alfa romeo, goes to the gym, goes out with friends, goes rock climbing etc. and is in the process of buying a house. He will only require a small mortgage (normal there) and does not need to rely on his parents unlike nearly everyone here. He couldn't believe how ridiculously expensive it is to live here. It's not people failing, it's the govt failing people.
@blackola7559
5 ай бұрын
It’s because there are a lot of properties on the market over there, even more in Spain
@annepoitrineau5650
5 ай бұрын
@@blackola7559 Not so sure about Spain, because there are so many people who choose to live in Spain when they retire. Moreover, buying in Spain can be risky if the government/local authority decides to buy you out to build stuff. Houses in France are definitely cheaper, but many are in areas with insufficient infra-structure. Houses with good links so that you can go to work etc are more expensive (still less than in the UK).
@floro7687
5 ай бұрын
Mammoni?
@sharonramsey715
5 ай бұрын
@@blackola7559 Let’s give the party in power at the moment credit for our lack of housing. Also let’s not forget our private Landlords who will sell their property’s under your feet for quick money when they get cold feet over the economy.
@maureenstarr5744
5 ай бұрын
These governments are disgrace
@johngreen6191
5 ай бұрын
You are right there. It seems like it is all about survival in the UK. Nothing has changed for me over the last 50 years.
@1292liam
5 ай бұрын
not right kzitem.info/news/bejne/zISLtIZoh4yneYI
@martinburn
5 ай бұрын
Enjoyed your thoughts, unchecked corruption and greed has finally come home to roost, unfortunately it will be average Joe or Jane who will suffer, thanks Michael.
@bortstanson2034
5 ай бұрын
The same people who vote Tory whilst claiming "they're all the say".
@MikesterCurtis
5 ай бұрын
This peculiar housing ratio problem was bothering me around 2003. And no government did anything to help people with the ratio. Interesting how many MPs are landlords.
@TheChodax
5 ай бұрын
Yep, all the new MP's coming through are middle class and will be part of the landlord class as well. They are not going to hurt their own vested interests.
@aacmove
5 ай бұрын
I worked in the UK from 1983 to 2001 and I could never afford to buy a 1 bed flat on my own. Moved to France and on a slightly bigger salary bought within 4 years. People in the UK didn't look for homes. They've always looked at profit. And when you don't build enough, you make the conditions ripe for speculation and greed. Hasn't changed on 40 years.
@TheChodax
5 ай бұрын
@@aacmove it has changed in sofar as a lot of pensioners now own multiple properties and use the rents as their pension pots. You also have the additional pressure of Airbnb landlords removing even more homes from the available pool of long term rentals and to buy. The same conditions exist but they have definitely gotten worse, especially when you factor in migration pressures.
@aacmove
5 ай бұрын
@@TheChodax Not my parents and not anyone of the 100s of members of their very large extended families. In fact I don't know a single person who has multiple properties. It is not as widespread as you believe. It is a phenomenon that began a few decades ago with the likes of some TV shows like "Under the Hammer". Some prospectors found a way to make some fast cash. But I can tell you that my parents never had any extra cash to play with as they were too busy saving it, and were of a generation who were undereducated and careful with their money. So don't tar every single pensioner with the same brush as a few people who took exceptional chances to improve their lot. In 2022, around 4.61 million people were living in buy-to-let properties. There are 25 Million residential properties in the UK. There are no statistics on how many of those owners are pensioners, and how many are young, upwardly mobile developers.
@TheChodax
5 ай бұрын
@@aacmove yet I know more than a dozen people in that situation so it is definitely happening. Just a month ago one person took the tax free 25% drawdown on his pension to pay the deposits on two buy to let investment properties. This is not rich person, probably just about regarded as lower middle class. He has a worked for 25 years at major utility provider in a call centre but has always paid into his company pension with his contributions twice matched by his employer. He's built a very nice pension pot and is now diversifying. That is exactly what the pensioners I mentioned above did as well, took some of the risk out of their pensions which are linked to stocks and shares.
@ukmarsadelaide
5 ай бұрын
I remember talking to an arrogant young Tory Estate Agent once and he said prices will just keep going up its Land and population that is keeping the prices up. I gave him a little history lesson about a place with a very high population and very little available land. In fact just the land value of one property alone in this city was worth more than the total land in the suburbs of Los Angeles. The country where this city was had well paid people. Bit the bubble burst and property prices crashed some 80 percent yes not joking 80 percent and it took some 20 years before they started to recover. He assumed I was talking about the sub prime USA market, no I said this crash happened in a G7 western nation. The country was Japan and the City was Tokyo, that very quickly took the smile away from him...Unlike the UK Japan made products the world needed the UK just does money laundering....
@patdbean
5 ай бұрын
That is all true, but Japan has had a stagnant or falling population since the 1990s while the UK population have increased from 58 million in 2001 to 67.7 million today.
@robricketts340
5 ай бұрын
@@patdbean Yes, exactly, as copiously not mentioned in the post above
@patdbean
5 ай бұрын
@@robricketts340 I am not trying to say that house prices "can't" fall, of cause they can. But we are unlikely to have large/ sustained falls, all the time our population is increasing by 400-600k a year , year in year out.
@robricketts340
5 ай бұрын
@@patdbean Slight confusion, I meant 'copiously not mentioned in @ukmarsadelaides' post above'. I was fully agreeing with your comment, apologies.
@patdbean
5 ай бұрын
@@robricketts340 sorry I read to quick and missed the NOT.
@adamlasry5225
5 ай бұрын
I trust Gary Stevenson’s analysis: houses will keep going up as the super rich will buy them. Wealth inequality is to blame.
@windyworm
5 ай бұрын
We’ve rented a one bedroom flat in a popular East German town, overlooking a small market place, near shops and rail/bus/tram connections including large living room, large bedroom, bathroom, utility room, large kitchen diner, cellar room, bicycle house at a cost of €390(£330)/month all-in. Such a hard life in the EU. Did I mention the clean rivers, cheap gas, good healthcare……..
@Nine-Signs
5 ай бұрын
A wonderful life to look forward to under the AFD rising due to mass de-industrialisation of Germany resultant from US sanctions on Europe's primary external energy supplier for the last 70 years for the high crime of doing a tenth of what the USA and UK have done over the last 25 years despite Russia having far more legitimate reasons for doing such than the US and UK ever had. Germany, a nation whose police just this week, stormed a peace congress on human rights, shut off its power, brutalised its speakers, and banned several of its speakers from entering/returning to Germany, one of which was Yannis Varoufakis. Nice rent and all friend, but lets not pretend its all a bed of roses shall we, the far right is on the rise across Europe, centrists and the right in all forms are subservient to US foreign policy and US economic policy, with German centrists and the conventional right having paved the road to the far right via their complicity with capitalism and their working together night and day to ensure the actual anti capitalist and by extension anti war left, is kept as far away from debate as possible, never mind political office. Which is a similar case in numerous other EU nations and in the UK the centre right starmer will pave the road to a hard right tyrant/demagogue that rises to lead a reformed Tory or some other nationalist party once his tenure is done, if of course he does not become a full on right wing authoritarian himself given he has all the indicators of being such already. No such thing as Utopia today my friend. The entire western world is in decline as a result of capitalism, which a thousand brexits nor a thousand remains, could never alter the trajectory of.
@dannyboywhaa3146
5 ай бұрын
haha keep telling yourself that buddy... 😂
@robricketts340
5 ай бұрын
House price inflation and high cost of renting in the UK is largely a UK problem and existed long before the referendum. Not really to do with jolly old brexit ..Non sequitur, ..Arf Arf
@dannyboywhaa3146
5 ай бұрын
@@robricketts340 lol they actually quoted cheap gas 😂 can’t write this stuff 🙈
@robricketts340
5 ай бұрын
@@dannyboywhaa3146 well spotted lol
@thomaspowell2043
5 ай бұрын
I think the problem now is that large corporations are the only ones that can buy houses - and they are doing. That will keep prices high, and they keep rents high. I don't see a crash on the horizon.
@TheChodax
5 ай бұрын
The crash comes when the rents and mortgages are so high as to be unsustainable, when working people just can't stretch the budget any further. It'll be mass evictions and repossessions. Maybe at that point we will finally see a political party made up of real working people and not politics students looking for a ride on the gravy train before it derails. Starmer is loading the Labour Party up with the later right now, all young people from middle class families and no idea of what it's like to live on a council estate.
@zetectic7968
5 ай бұрын
Under Thatcher a house was no longer a home it was an investment. With inflation the cost of the mortgage dropped & the property over time increase more than inflation. People started speculating: moving every 5 years into a bigger more expensive house.
@TheChodax
5 ай бұрын
Totally agree, the housing market has been used to supercharge the stock markets, pension and hedge funds.
@mannymistry68
5 ай бұрын
Was that Thatcher or people and their greed. Any government can tell me that a home is an investment and I can buy and sell and profit from the “property ladder” (ridiculous term that most people use all the time) - but I don’t have to buy into that ethos do I? Even that people call them properties instead of homes. We always blame politicians and they are corrupt and hopeless - but who continues to vote them in? I think it was Churchill who said that the best argument against democracy is a 5 minute conversation with the electorate
@tonyprice1526
5 ай бұрын
Instinct tells me you're right. However, I've been thinking there would be a crash for years. Institutional investors and asset ownership companies are now buying into the market, so if that trend continues, it may cushion any downward trend. That said, with so many people feeling the pinch and the unaffordable rents being asked for something has to change. I would welcome a 30% drop, and though I own my own house, it's my home, not an investment as such, so it wouldn't worry me. If this lets more people in and gets some of the hostile landlords out, it can only be a good thing. However, the whole system needs changing. Why is a home of £16m exempt from any tax at sale? My son is building high-rise luxury apartments in Central Manchester, which he will never be able to afford. We really are in a mess.
@billywhizz6483
5 ай бұрын
One difference from Belgium and the UK is the way houses are built. In Belgium, you're likely to just buy a (cheap and plentiful) plot and a small local building company/architect will build something for you. In the UK, large house building companies (I'll say nothing about political affiliations) land bank and drip feed (bland, rabbit hutch) housing stock on estates that keep prices high.
@HelenaMikas
5 ай бұрын
Hello Michael and thanks for a fascinating video Spot on as always .I owned my own house in UK and was glad to be rid .when I relocated to Berlin . .Living in apartments , is the norm and renting is well managed.By the way had to smile when you mentioned common sense , that plus dry humour are two reasons I enjoy your channel .Common sense is in short supply and beats any fancy university degrees .Westminster has MP's who are devoid of common sense .They are empty vessels making a lot of noise :Have an enjoyable weekend :-)
@MichaelLambert1
5 ай бұрын
Thank you Helena 😊
@snowman2970
5 ай бұрын
Prices for housing in the UK have always been much higher than in most of the world, don't think that's going to change anytime soon.
@Jonnyicey
4 ай бұрын
I think a lot of us want a crash to happen but the people in power wont let it happen.
@peterjhillier7659
5 ай бұрын
Thank you Michael, a very interesting Critique on the bloated cost of Housing which makes it almost impossible for many to own their own Homes.
@sheelaghquigley3555
5 ай бұрын
Thanks for another very informative post. Keep up the great investigative work, we need it.
@MichaelLambert1
5 ай бұрын
Thank you 😊
@dagatha3982
5 ай бұрын
I think the term „property ladder “and the concept behind the term is unknown to most people in Europe. We buy a house (or have one build to our specifications) and stay there most of our life. I have seen British TV programs, where people buy houses, renovate them and sell them for a much higher price a few month later. They made a living out of doing that, but why would anybody buy a house, that’s been done up by someone else?
@spencer2721
4 ай бұрын
Council tax is fucking joke seriously needs to be looked at! My. 110k flat pays £1500 and 55 million house pays £3000, how the fuck is that fair? Seriously WTF
@eldwdubu6968
5 ай бұрын
In the USA, real estate companies buy 10s of thousands of homes and lease them out, which greatly appreciates homes for sale. The rich are trying to force the middle class into renters and move that sector of wealth building just for themselves. People must live somewhere; landlords can raise the rent until it hurts. Affordable urban homes are in huge demand. I bet the same thing is happening in the UK.
@TheChodax
5 ай бұрын
Yes, Gary Stevenson is saying exactly that, this is about all the assets eventually being owned by less that 1% of the population. A return to feudal times.
@shorunqualtec2070
5 ай бұрын
Belgian here Many pubs and restaurants are packed now because many went bust before. The empty ones are gone, that's why you don't see them The restaurants that are left are packed, but those are not the common worker, those are high earners. You won't see the common man in such a place because they can't afford it, so it looks like full of happy people, but that's the top of society, not the bulk. The bulk is at home, because they got no money.
@31415926535ism
5 ай бұрын
I never dreamed that the Uk would become this broken in my lifetime.
@CollapseWatch
5 ай бұрын
I mean technically all that money spent on rent/mortgage has to go SOMEWHERE right? someone somewhere is benefitting. I just get the impression that these landlords making bank aren't spending it at the local highstreets.
@darrylshamrock
5 ай бұрын
Thanks Michael. Bon weekend à vous......tous!
@johnphilip2439
5 ай бұрын
In Sydney we have been predicting a house price crash for 10years + for all the same reasons. But government just keeps increasing the level of immigration. Government will not let house prices collapse under any circumstances. The very stability of our financial system relies on house prices continuously rising.
@garethwilliams4467
5 ай бұрын
exactly. Thick people talk about supply/demand/affordability. Smart people see that the housing market is a rigged market.
@richardweatherald7745
5 ай бұрын
The selling of council houses and not building anymore is causing a lot of the issues
@seamus7054
5 ай бұрын
Lets see how this pans out: the working classes find that they can't afford a home, so have to rent. However, rent goes up, meaning they need to pay a higher percentage of their salary as rent, which means they need to work more hours, resulting in more tax for the Government - whose MPs tend to be landlords. So it's more work into old age for the majority of people and more income and a better life for the privileged MPs & their donors. I can foresee major upheaval in the years to come.
@neilketley840
5 ай бұрын
They haven’t got any council houses in America!
@Ant.Gib.
5 ай бұрын
Great video again, Michael. Very informative, as usual. Keep up the good work.
@MichaelLambert1
5 ай бұрын
Thanks Ant 😊
@dominicdavison8590
5 ай бұрын
I’ve heard this before many times. If they haven’t crashed by now after the last three years of high inflation, Covid, Ukraine, interest rates etc. Then I think the trend is rising prices.
@chromatec4311
5 ай бұрын
Thanks Michael - The Tories created the shortage of housing to make vast profits for their landlord buddies and they have done everything since to sustain prices and maintain profits.
@clarecrawford9677
5 ай бұрын
Many MPs are themselves landlords, e.g. Jeremy Hunt, owner of seven flats in Southampton.
@madameversiera
5 ай бұрын
I'm lucky in London since I have a decent house sharing with good flatmates, but I pay a lot, around 850 (for a room). Other people I know pay the same and live in horrible, small and crowded apartments. I looked for cheaper rents but to be honest it was not worth it, since I would have to travel far from London to work and the transport would cost so much that it would be more reasonable to pay higher rent and be closer. We are coming back to the victorian age when they had to live all crammed in Whitechapel.
@StantonRich
5 ай бұрын
Banks and the government won’t allow that to happen.
@lemongrabloids3103
5 ай бұрын
Another fantastic video Michael, thank you for the work that you do in bringing this information to the public who otherwise would probably continue to believe the nonsense written in the tabloids.
@MichaelLambert1
5 ай бұрын
Many thanks Lemon 😊
@justjacqueline2004
5 ай бұрын
The average worker barely earns enough to own a home in the UK.
@terrapyn99
5 ай бұрын
Not in the South East.
@xelakram
5 ай бұрын
This is a great synopsis of the madness that is the British economy today. The synopsis is very informative and very interesting but, it must be said, very depressing too. Michael, you are a master of common sense! It is always such a pleasure, and always enriching, to hear what you have to say on any topic you touch. Thank you! And good morning! Wishing you and your family a very lovely weekend.
@MichaelLambert1
5 ай бұрын
Thank you very much @xelakram - much appreciated 😊
@xelakram
5 ай бұрын
@@MichaelLambert1 👍🏻
@malthusXIII-fo3ep
5 ай бұрын
If it ain't broke....don't fix it. Labour's a busted flush.....useless and clueless.
@stephen25uk
5 ай бұрын
We have been predicting house price crashes for years, but as long as demand exceeds supply it won´t happen, and governments ensure the status quo as they would otherwise lose too many voters.
@3bebles
5 ай бұрын
This problem is looming very large indeed... Inheritance and the link to inflated property value will cause untold damages of family rifts, elderly care, lease purchasing (total misnomer) and primary residence 'time shares', multi-generational use of properties, intra family 'loans', shortening of study cycles and acceleration of early earning capacity, absence of disposable income, hesitancy over having children... IT DOES NOT BEAR TO THINK! and yet you are raising the issue. Thank you Michael!
@rodneyshepherd9120
5 ай бұрын
Hi have a look at Gary does Economics. Property prices will never fall here because of the huge disparity between ordinary working people and the few very wealthy who should really face massive taxation. As the Basic Tax Free income allowance has not increased in recent years everyone is paying more tax to prop up this country. The allowance used to be index linked to inflation. This is something the Tories like to ignore! Keir Starmer's labour party will just be more of the same. Not very bright people who all thought that Brexit would be a good idea! So "fear" about corruption in the EU when we are a sort of "World Leader" in that respect. So much for great britain.😅
@georgeatkinson759
5 ай бұрын
Asset prices are being kept artificially high by rich investors...these people cannot afford to lose but will steadily sell these assets as the true cost of Brexit comes to light...The UK economy is in a downward spiral...but the speed of decline is being controlled...
@alphabetaxenonzzzcat
5 ай бұрын
The housing bubble in the UK is caused by several things : the money printing that went, the selling off of social housing(which I now think was a massive mistake), the big property developers are massive donors to the Tory party(hence the reason why they are wedded to this system), there was also that "buy to let" stuff that happened under Blair and Brown(causing more pressure on housing), then there's the mass immigration and fundamentally I think all the mainstream parties are wedded to the type of housing policy that we have(keeping it scarce, mass immigration, etc.).
@abcxyz3028
5 ай бұрын
If only!! I've been hearing this for the last 10 yrs and it just kept rising. I took the plunge when rent prices kept increasing from £600 per month to £900++. Even worst is southerners are buying properties for rental income up north catering to students as it'll bring them at least £1600 per month based on the area I used to live in.
@punditgi
5 ай бұрын
Always good to hear your thoughts. Let's hope the worst doesn't come to pass.
@billpugh58
5 ай бұрын
Most UK wealth is built on house ownership. It’s a bubble that housebuilding for younger buyers will destroy. Bring it on!
@amcc5887
5 ай бұрын
Good morning micheal,am a 27 year old dundalk lad from Ireland, a big Irish town on the border ,hour drive up the road from Dublin,standard average 3 bedroomed house in dundalk area is €250,000,needless to say am still living at home with parents, it's next to impossible to get on the property market here in Ireland, I'd need €18,000 for a deposit, and that's just for starters,I reckon am going to be living with mam and dad for a while yet,love the videos, andrew,dundalk, eire,,,
@MichaelLambert1
5 ай бұрын
Thanks Andrew 😊
@actualfacts1055
5 ай бұрын
Better than throwing money down the drain renting.
@williamk9490
5 ай бұрын
there's a small minority who own more than one house, some of them own many house but the majority own no houses - you only need one house to live in...(at any one time)
@pauls3204
5 ай бұрын
I own two , I’ve worked my balls off and bought near ruins and spent ten years maki g them habitable and valuable , not my fault that many have no realistic work ethics .
@RealMash
5 ай бұрын
Quantitative Easing. Money was printed, went to the rich via clever means, and they had to do something with it. They bought properties. So the prices went up. Until they are taxed or the whole system breaks down, nothing will change.
@andrewf7754
5 ай бұрын
Excessive property prices, either to buy or to rent, are not just restricted to the UK, it is affecting all major/popular cities around the world. The problem is too much disposable wealth in the hands of too few people. I helped my brother move within London two years ago and his story confirms the situation related here. My Austrian daughter in law husband had to move out of their one bed flat in Salzburg last month because the owners were selling up (to buy another second home). The asking price for the old flat was EUR 800,000 - totally unaffordable even for two professional young people. One hears frequent news about the property crisis in Berlin - unaffordable rental costs and attempts to control rent rises. While several local authorities in Austria are trying to restrict second homes, because it is pushing out the local younger generation. I was in Malta last month and the capital Valletta is just one big construction site as the super rich bring their often ill-gotten gains to the island. The oligarchs have not just come to London. Only when population starts stabilising and demand falls will house prices drop - alternative you need to start taxing the super rich. I do believe, however, London is an extreme example of the flow of wealth of the world's super rich. Following Thatcher's deregulation of financial markets and the sell off of council homes and public services, the UK gave up on manufacturing, and sucked in enormous financial flows through the City, bringing with it "innovative" ways of laundering grey or dark money. The result has been a highly affluent southern England amongst certain segments of society, with astronomically expensive property prices for all.
@Chris-f7s2y
5 ай бұрын
Thanks for your weekly talk Michael. One small observation, the scenario you described so well is I believe peculiar to London alone where the scale of the problem is many times worse than any other location in the Uk.
@qeitkas594
5 ай бұрын
Don't forget money printing to keep everything afloat. Decades of near 0 interest rates means money was for free. House prices adjusted themselves to what owners could borrow. This is the real nasty side effect of QE which is not UK or Europe specific but a global phenomenon. BTW Liege is probably the most deplorable city in Belgium. It suffered a lot from the collapse of the steel and coal mining industry. So if your perception is that this place is quite good then it puts the comparison with the UK in a even worse perspective.
@edshoe3172
5 ай бұрын
there is no quality of life in very expensive Britain.
@youngian
5 ай бұрын
Been reading property price crash predictions from reasonable people with informed arguments for over two decades but it never happens.
@TheChodax
5 ай бұрын
yes, because they keep printing money and borrowing against the future. The question is, can do they that forever or does the price eventually have to be paid?
@neilketley840
5 ай бұрын
Two decades is a very short period of time. But now the country’s broke!
@Jonnyicey
5 ай бұрын
"there's no reason why house prices should be so expensive" Yeah there is... its called supply and demand.
@anthonyduncalf-uk
5 ай бұрын
Years of low interest rates have distorted how the economy works and we are now seeing the result which is everywhere boarded up but house prices costing a fortune. It's not a good way to run society.
@philipelstone6171
5 ай бұрын
I do not think house prices will crash Because of the vastly unequal distribution of wealth and the fact that the middle class and poor are seeing living standards plummet while at the same time the super rich have increased there, incomes many times over and will carry on doing so under the evil governments that are supposed to represent us , it will continue to be that less and less of us will be able to afford mortgages and the super rich will keep buying houses and renting them out at exorbitant prices . Thanks Michael for another excellent watch.
@oneoflokis
5 ай бұрын
That's possible..
@MichaelLambert1
5 ай бұрын
Thanks Philipe 😊
@oneoflokis
5 ай бұрын
@@TruthWillOut-hb9vc 💯
@ruthguthrie1099
5 ай бұрын
Good morning Michael 👋
@DanielEdwards-
5 ай бұрын
Property prices won’t crash. Rich people’s money is currently sitting gathering interest because of the high rates. As soon as that’s over they’ll invest their cash in property pushing prices up. This is what’s driving inequality right now.
@SWEETBOATER
5 ай бұрын
This is why.
@lynnB3159
5 ай бұрын
The system is not broken its designed this way .
@ianh.6825
5 ай бұрын
The property market is like the banking industry, too big to be allowed to fail. The government will do anything and everything to sustain it. The cynic in me could also highlight the the number of multiple property owning MPs.
@jonaen24
5 ай бұрын
An ideal well-run economy would be run for its citizens' quality of life; a badly run economy would seek an in-group of "owners" to sneer and subjugate the less fortunate - guess which of those Sunak likes the sound of?
@raypickles537
5 ай бұрын
Thatcher created the problems with housing, buying or renting, you know what she did without me saying. In the 70s we bought our first house in Derbyshire, a large 3 bed semi for 9,000.
@brianferguson7840
5 ай бұрын
The Tory's "Right to Buy" Did not exist in the 1970s !!! The Housing Act 1980 gave the first limited right to purchase council accommodation with reductions based on length of previous tenancy.
@kennylogue7947
5 ай бұрын
Thankyou Michael. You always speak 100% sense
@MichaelLambert1
5 ай бұрын
Thank you Kenny 😊
@deadby15
5 ай бұрын
Affordable housing should be a human right.
@MrSmegfish
5 ай бұрын
Why should I buy you a house ?
@MrSmegfish
5 ай бұрын
Security
@sososoprano1
5 ай бұрын
@@MrSmegfish- I think you’ll find people want to buy their own houses, or at least pay reasonable rents, rather than buy their landlords another house.
@neilketley840
5 ай бұрын
We have got affordable housing.Tents aren’t that expensive. But of course, if you want something more luxurious you have to pay for it.
@KiwiCatherineJemma
5 ай бұрын
NO, UK house prices are NOT about to collapse. The houses will simply be bought up by wealthy "investors" who will rent the houses back to UK folks at huge rents. The wealthy landlords will sometimes be people and sometimes huge overseas owned corporations. It is like this because governments have enabled policies and tax laws to enable and encourage this.. Same thing happening in Australia, New Zealand and Eire, and also to a certain extent in Canada and USA also. We need substantial "Capital Gains Taxes" (of 50% minimum, sometimes higher) and/or laws which restrict how many houses or home units individuals and corporations can own. Look, for the greater good of society we limit how many Cannons and Machine Guns a person can own (usually zero), and we limit ownership of Nuclear Reactors to a handful of specially licenced corporations, or government departments. At the stroke of the government's pen, Houses and home units could be subject to similar laws and regulations. When I hear of landlords with 300 houses, I think of the 299 people that couldn't buy a home of their own, as they had to try to outbid the landlord land-hoarder.
@martee4297
5 ай бұрын
100%
@11abrook
5 ай бұрын
Corruption
@philiphayton8261
5 ай бұрын
I don’t think you know what your really on about - a far far larger proportion of houses are owned by owner occupiers than rented and not everyone wants to buy and not all properties are suitable as owner occupiers home - for example a flat over a shop - would you buy that as your family home?
@martee4297
5 ай бұрын
@@philiphayton8261 Mate... Rich people buy assets... what's a good asset... your house..
@TheNobbynoonar
5 ай бұрын
Yep! Pretty spot on. Housing in the UK has gone from being seen by governments and local authorities as a social responsibility requirement, to a business in the last 45 years. The average citizen will never be able to outbid a rich landlord or investment fund. Unfortunately, I really don’t see any government changing this anytime soon.
@geirarnesen6531
5 ай бұрын
Thanks a ton for the most important perspective on the UK/London property market. Where the majority have no relevant experience or knowledge of the past history, there will be costly mistakes. Such an important video, thanks again.
@MichaelLambert1
5 ай бұрын
Thank you very much @geirarnesen6531 😊
@geirarnesen6531
5 ай бұрын
@@MichaelLambert1 You're very welcome. I took the liberty to pass your video on to Charlie Lamdin. He has the same view and is fighting hard to enlighten those that will be trapped and effected. @movinghomewithcharlie
@MichaelLambert1
5 ай бұрын
@@geirarnesen6531 Thanks very much 😊
@lesliewatts7537
5 ай бұрын
you do know what you're talking about even if it's bloody depressing.................... many thanks.
@MichaelLambert1
5 ай бұрын
Thank you 😊
@fanfeck2844
5 ай бұрын
Property prices won’t fall much, it at all. We live in a tiny country that already can’t feed itself, and you’re in competition with the rest of the world when you try to buy a house here. Could try closing the borders to outside buyers
@joline2730
5 ай бұрын
Prices will continue to rise all over the UK - since we all know there are not enough houses to buy or rent. However, salaries can only stretch so far and until salaries go up, people will look for alternative ways to live - boats, tents or caravans for example, but nowhere is cheap ‼️
@paulwilson7234
5 ай бұрын
Another in a nutshell video with plenty of food for thought.
@rufuscollis303
5 ай бұрын
1972 small London suburb semi 6000GBP...Now over 1 million. 150x in 50 years. They have debased the currency to worthlessness.
@jackdanielsamarreto
5 ай бұрын
Good afternoon Michael this is while people live on the streets.
@MD-qt1jh
4 ай бұрын
The prices are certainly ridiculous, but it has always been like this and keeps going up and up and up. Buying a detached house in bristol requires 1 million pw, and even that, you need another 100k to renovate it as they are literally selling you junk, not a house. I am one of the top earners 200k plus, and even I can not afford these crazy prices, let alone ordinary people. Funny is that these houses fly off the market which is bunkers.
@TheEvertw
5 ай бұрын
When the price of something has lost any relation with the replacement cost, that has all the signs of a bubble. As with any bubble, the sooner it pops, the better.
@patdbean
5 ай бұрын
So what is the replacement cost of land? I think they have stopped making it, so all the time we go on making people......
@TheEvertw
5 ай бұрын
@@patdbean The value of land is a function of the value it can produce. I.e. what a person using that ground can make off it. So, if it cuts 1 hour from my commute, its value is 2 times 1 hour of my time per working day, over 2 years. Because capital investments should pay themselves back in less than 2 years.
@patdbean
5 ай бұрын
@@TheEvertw paying back in 2 years is very optimistic. At a rental yield of 5-7% before costs. I would say 15+ years is often more realistic. I know of rental homes baught in the late 1990s who's cost (buy + renovate + maintenance+ insurance etc ) that HAVE only paid back their total cost in the 2010s! Look at all these trillion $ companies that pay little or NO dividend. Amazon, Google , Tesla , Facebook , Netflix etc etc
@petrovonoccymro9063
5 ай бұрын
Love your contributions to national debate Michael. Many thanks. Always look forward to your erudite and considered views.
@MichaelLambert1
5 ай бұрын
Thank you very much 😊
@craigroberts1957
5 ай бұрын
Property prices can’t collapse when demand outstrips supply.
@dunkbull
5 ай бұрын
Demand is the desire to purchase with the ability to pay. I might desire a Ferrari but I cant afford one. Supply of houses currently exceeds demand (backed by money)
@craigroberts1957
5 ай бұрын
@@dunkbull Rental prices are sky high, and people are paying. If they weren’t paying, the prices would be lower. Demand is outstripping supply so prices can’t crash.
@SilverWong-yo5iu
Ай бұрын
When you haven't got enough money (cost of living crisis, interest rates much higher than zero, real wage decrease), more retirees, demand for properties will fall
@sghodder
5 ай бұрын
Thatcher helped turn property into an investment 40 years ago. Then every time the cost of houses exceeds what people can afford, rather than letting the market settle back, the banks came up with new lending schemes to facilitate the new higher prices. up until the late 90's single people weren't buying houses. It is now considered a right. We only have ourselves to blame because we all indulge in the wonder of having an asset that you can't do anything with but knowing its gone up in value. houses are homes.
@jonb5493
5 ай бұрын
This insanity started long before ol' Mag arrived on the scene.
@Withnail1969
5 ай бұрын
I heard this in 2005 and what a mistake it was to listen. I could have bought somewhere.
@Guitar6ty
5 ай бұрын
The only way house prices will drop is if a huge amount of our population decides to leave devils island.
@suzannelooms7658
5 ай бұрын
Inheritance? You forget all the overseas buyers: people who offshore wealth stolen from their own country; those who want a bolt hole in case of regime change back home, as well as those intent on subverting our political system from the inside. We now have relatives of the Queen consort enabling such purchases, by smoothing the way with tame accountants/lawyers etc. One high street bank is in the top 5 list of institutions that enable money laundering. They treat fines as a cost of doing business.
@jonzu217
5 ай бұрын
Then there is the world's main laundry, the City of London.
@oldskoolmusicnostalgia
5 ай бұрын
Exactly. And corporations buying housing.
@russmarkham2197
5 ай бұрын
what about the non-doms leaving already though? Losts of cash leaving the UK.
@ruthguthrie1099
5 ай бұрын
Great vid thanks Michael. Interesting.
@MichaelLambert1
5 ай бұрын
Thank you Ruth 😊
@anaruizguti
5 ай бұрын
Nevermind energy bills which are sometimes £400 a month!!!
@sallywest5634
5 ай бұрын
Such a sad state of affairs. How can we ever bounce back from this I worry for my children and grandchildren. Thankfully my modest little cottage is now mine and mortgage free, but so many are not so lucky and with things set to get even harder, it's scary to even think about it.
@BenRobinson1974
5 ай бұрын
People have been saying this for 40 years...
@markstill515
5 ай бұрын
It’s not only the price, it’s maintaining it year after year, as the cost of everything is shooting up. Leaseholders are paying huge fees to managing agents going up and up
@metamorphosis8813
5 ай бұрын
agreed with every word, Michael.
@susanmorgan3104
5 ай бұрын
Very interesting...not sure if this will be the case in Yorkshire. The housing market has been reasonably stable. Possibly in the South there will be a drop in price as London has been extremely high to buy or rent for many years. As a retired nurse I can see that it was impossible to have worked at a prestigious hospital like Great Ormond Street.even as far back as the 1980's living costs too expensive.
@jujuUK68
4 ай бұрын
I can confidently say you're wrong There's no crash on its way. As society gets more divided, and the rich get richer, and the poor get poorer, then all that happens is fewer people, with more money, buy assets, and get richer. All we are doing is forcing the poor to rent, and the rich to buy multiple homes, keeping the market strong . The same bodies occupy the same houses, but supply is choked by the rich. We've never had so many people with multiple houses - AirB&B's, holiday homes second homes, - and barriers to entry of high prices being so hard to overcome for people without established wealth. ~And fewer people will benefit from the bank of mum and dad, as we have failed to get to grips with old age and care requirements, and so those cash rich, asset poor pensioners will simply sell, to the rich, to pay care fees, and not pass down the wealth. This will happen over the next generation or so. Until something fundamentally changes to alter restribution of wealth, house prices are only going one way. Thats the bigger picture.
@paulrumbold2436
5 ай бұрын
Hi Michael . Fantastic video , I’m so interested in this subject . I’m a carpenter of 40 years , it amazes me how it went all so wrong ? As a 16 year old in 1982 I saw the infliction of margret thatcher ? I could not buy a h Ouse in my village ? So much to talk to you about ? Common sense is not common anymore ? Money will kill us all . Many thanks indeed
@TheBinaryUniverse
5 ай бұрын
Yes, I've been saying this all my life regarding the alleged rich south east compared to the poor north of England. The south east is only rich on paper when to take into account the asset value of property. The plain fact is we are poor in the south because all our income goes into paying the mortgage or the rent, whereas in the north, they have more money for beer, chips and football. Your comparisons are just as valid here in the UK and have been so all my adult life, (68 years).
@garryferrington811
5 ай бұрын
We have thousands of unused houses in California which are just held as investments. Same with apartments as well.
@gwynhyfer
5 ай бұрын
Our mortgage doubled in 12 months. Fortunately hubby began to receive a pension with a lump sum and we managed to pay off a secured loan but we had hoped to be able use that monthly payment to pay that extra on the mortgage to get it paid off. We were lucky over that because at least we were able to keep up with the mortgage but we can't afford to keep our heating on to a level that anyone could remotely call warm. This government have done nothing to improve the lives of anybody from the cradle to the grave - why on earth people keep voting them back in is completely beyond me. Not sure Labour will be much better but tbf they will be coming back into government with their arms tied behind their backs.
@billfromgermany
5 ай бұрын
Surely one of the most important factors is that tory governments have encouraged people to see their house, not as just somewhere to live, but as a store of wealth. Maintaining a shortage of housing has enabled them to keep a generation of house owners voting for them. I’ve lived in Germany for 32 years. Twenty years ago I built a house in a suburb of Berlin. It took exactly one hour, door to door, to my job in the centre of Berlin using public transport. The house is in a really pleasant area, with a 1,000 sq meter plot and a large garden. Three bedrooms, 1 and 3/4 bathrooms, full cellar with central heating and an attached garage. Cost including plot was €300,000. Now retired and living in a cottage on the Baltic. Renting out the house for €1,400 per month, plus a charge for insurance erc of €100 per month. What a contrast to the rents in the UK. Incidently, as a landlord, if you are unlucky enough to have bad tenants, you are stuffed. No-fault evictions? What are they? That‘s why we take considerable care in checking the financial status of potential tenants.
@rickparkinmoto
5 ай бұрын
My worry is that people will lose their homes. The houses will be be bought up by the billionaires who accrued unimaginable extra wealth under Covid and then rented back to the people who lose their homes. Rental costs will remain cripplingly expensive. Billions in a bank is incredibly vulnerable. Billionaires will be looking to invest, and hoovering up repossessed homes is a great investment for those with more money than morals.
@martinbennett2228
5 ай бұрын
Predictions of a crash in house prices have been with us for the last 25 years, but have not happened. There have been a few pauses, but the upward trend has been relentless.
@Mark1405Leeds
5 ай бұрын
Build council housing with secure tenancies [yours for life] and abolish the right to buy!
@Geffo555
5 ай бұрын
This is the consequence of letting market forces dictate to society. It's a blind system that eventually becomes chaotic. And we have passed the absurdity threshold.
@CountProsper
5 ай бұрын
Thanks. The idea that a few billionaires affect UK house prices is implausible. If you have net inflows of almost 1 million people per year, and struggle to build much more than 139,000 houses per year you have a problem. And not just with housing cf hospitals, sewage etc.
@Julleisa
5 ай бұрын
In Copenhagen you have to document that you are living in the house/appartment at least half the year. Very simple.
@14Unow
5 ай бұрын
Not overseas people, investors, or companies should be allowed to own housing stock. Rented ones should have rent restrictions on them like the one I rented in London in 1980's.
@Julleisa
5 ай бұрын
@jahonain Well, I have lived here for over 40 years. And I'am a teacher. Here you can't just bye a expensive house if you live in another country, and let it stand uninhabitable. London were made for kapitalist by your politicians through corruption. Everybody knows that.
@garyfilmer382
5 ай бұрын
Thank you, Michael, I agree with so much that you say. If we look back at our economic history, it’s often the housing market which is one of the first pillars of our economy to crash in a recession, however, it doesn’t always happen that way. This time around, despite our economic woes, the housing market remains strong, and is holding on, for a while! I suspect that the spiralling decline of our economy will mean that the next big blow to our economy will be the need for our Government to ask for an IMF loan, because the National Debt is continuing to climb so high, standing at 3 trillion £’s plus, at the moment. There is absolutely no prospect of a fall in the rate of inflation, the two reasons for that are, the cost of our imported goods continues to soar, and Brexit Britain has not been able to make any trade agreements with the other nations of the world, which are economically beneficial to Britain (apart from the TPPT, which is has only minor economic benefits, compared to what we had as an EU member). It’s not even worth mentioning the trade deal with Australia, as it is clearly detrimental to Britain, having no economic benefit to our economy at all - and has often been the butt of Australian jokes on their television broadcasts. With the increasing personal cost of borrowing money in Britain, and the unremitting climb in personal levels of debt too - these will become unsustainable, and there will be another banking collapse, followed sharply by a property market collapse, that’s how I think it will happen, and it will be a Labour Government which has to deal with this monstrous mess! The Tory Party finally lost their illusory political reputation for ‘sound economics’ by embracing Brexit, it is their downfall. Brexit broke Britain! Vote the Tories out of power!
@jackliv23
5 ай бұрын
excellent video as always Michael,keep saying it
@MichaelLambert1
5 ай бұрын
Thanks 😊
@SoloSi2024
4 ай бұрын
Trouble is the open door policy to foreigners buying property forced up the prices. John Lennon bought his first Surrey mansion in 1964 for £20,000. That's around half a million in today's prices. Think about it.
@simonroyle2806
2 ай бұрын
That £1m would buy a very average place in Weybridge now. He was in St George's Hill which would be many times that!
@suewilkinson910
5 ай бұрын
Another interesting talk Michael. I hope it doesn't crash too quickly as I'm selling Mum's house for her at the moment and we have a buyer! She lived in it for 65 years. They had a mortgage, or Dad did, but it was for a few thousand pounds, and he had paid it off in a few years, before I was born. Mum stayed home after I came along and Dad worked as a toolmaker for Rolls Royce in the factory. He wore a brown overall to work and his wages were paid in a brown paper packet with a see-through crinkly window in it. By which I mean he was just a manual worker with a stay at home wife and yet he owned his own 3 bed house in a city before his first child was born. They never went out much and holidays were camping, so he had a nice little nest-egg. When he took early retirement he used some of that savings fund to dabble in a few shares and increased his savings nicely. So although his Rolls Royce pension was much less than he expected and than it should have been due to someone cocking-up when he did his 2 years National Service, they were comfortably off. No worries about the heating or eating. Mum was left with enough money for us to build her a new one bed self-contained barn conversion in our garden for her twilight years. He was just a factory worker. Sadly they never did much at all to the house other than paint it so it is now in dire need for rewiring, plumbing, kitchen extension, better heating and plaster replacement. But it's a 3 bed house. Due to the work it needs it's valued at the bottom of it's band and we have accepted an offer of £181k. We had the usual property developers offering for it, but we've gone with a first time buyer. I really hope the sale goes all the way and he gets a house he can afford and can work on to improve because the rest of the property in the area for sale is over £220k and that's getting hard for first time buyers. There's just nothing for the bottom rungs to help people get on the ladder.
@MichaelLambert1
5 ай бұрын
Thank you for this Sue - very interesting - good luck 😊
@benjaminhuston1390
5 ай бұрын
The UK has a rigged housing market. As Donald Macloud ( from Grand Designs) informed me on the radio, in this country you only have around 9 big developers doing the majority of the building , around 60% whereas abroad, like in Germany there are thousands of small builders, I guess the reason is the big UK developers have deep pockets to landbank then push forward planning to cash strapped local authorites. They also have learn't their lessons from the past ( the last crash around 1991 i think) and so now only build in phases as to never oversupply the market...all rigged in the UK, I could go on to bore you
@edwardbernthal160
5 ай бұрын
another reason could be a 200,000- shortage of construction workers.
@jonzu217
5 ай бұрын
True, I remember a housing estate which was built in phases over five years.
@mikepowell2776
5 ай бұрын
A friend in Spain bought a property last month. It’s in a town in the north-west. The town has all facilities including supermarkets, independent shops, two markets, a hospital, police station and a railway station - all of which are open. The apartment has two bedrooms, a garage, boat space, en-suite and separate bathroom and sea views all in a modern building three years old. It cost €66,000. We are denied such privileges by the ‘Berlin Wall’ erected by the Brexit liars, presumably largely to prevent us discovering that the grass actually is greener.
@patdbean
5 ай бұрын
Spain has a population density of 96 per s/km against 280 per s/km in the UK. So why do you think housing is more costly? I will give you a clue, had the same relative population density before Brexit, so I don't think Brexit is the issue.
@mikepowell2776
5 ай бұрын
It’s not. Spanish towns and cities typically have a greater population density than their equivalents in UK. So, your point?
@patdbean
5 ай бұрын
@@mikepowell2776 no you are deliberately misunderstanding. I am talking about the "national" population density, not within cities and towns. In 2024 spain has 47.5 million people while UK has 68 million. And Spain is over double the size of the UK. You can look the facts up the same as I just have.
@mikepowell2776
5 ай бұрын
I’m not disagreeing with you. Neither am I blaming Brexit for the differential. I’m simply saying that the event precludes taking advantage of it. We probably have different theories about the reason for the differential and either or both of us may be right.@@patdbean
@TheNobbynoonar
5 ай бұрын
Nothing stopping you from emigrating to Spain and investing in Spanish property. Pretty much all governments welcome those who have a healthy bank balance and can support themselves financially. The problem with the UK is that we’ve allowed in too many from within the EU and outside the EU to walk into the UK with empty pockets. This has driven down wages for British workers (a deliberate government policy) pushed up property prices, put more stress on our various institutions (schools, NHS etc…) and led to those who have come here to send large amounts of money abroad while at the same time, not been paying into the ‘system’ for decades. All ruinous for the average native British citizen.
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