Future of UK House Prices - The Next Boom?

A look at prospects for UK house prices in both the short and long-term.

0:00 House Prices
1:42 Wealth Effect
5:18 Real House Prices
6:20 Good news
7:30 What do experts predict?
8:03 House Price Fall?
9:59 Unexpected Shock?
10:26 Will building reduce price?
11:36 Role of immigration
12:34 Should I wait to buy?

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ABOUT
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[Riggsnic_co]

Back in the day, when I purchased my first home to live-in; that was Miami in the early 1990s, first mortgages with rates of 8 to 9% and 9% to 10% were typical. People will have to accept the possibility that we won't ever return to 3%. If sellers must sell, home prices will have to decline, and lower evaluations will follow. Pretty sure I'm not alone in my chain of thoughts.

[JasonHain-zt]

I didn't become financially independent until I was in my late 40's, and I'm still in my 40's. In addition to having purchased my second home and earning money on a monthly basis through passive income, I've also achieved three out of five goals. I just hope this inspires someone to realize that it doesn't matter if you don't have any of these things yet, you can start today no matter your age. Change your future by investing! I made a rather big decision by investing in the financial market

[KathHarnell]

just sold a property in Portland and I'm thinking to put the cash in stocks, I know everyone is saying it’s ripe enough, but Is this a good time to buy stocks? How long until a full recovery? How are other people in the same market raking in over $200k gains within months, I'm really just confused at this point.

[veddyveng]

I’m young and have 2 daughters and I know for a fact I will have to contribute massively towards their first house if they ever finally move out.

[manelbosqued]

Don't see the glass half full, see the glass half empty. Nothing is really going up in price, it's fiat money that is losing its value because it is constantly being divided up to maintain the debt system. Now the limit has been reached, citizens no longer have the purchasing power to go into debt due to artificial inflation and the financial power is looking for other formulas to sustain its financial and monetary fraud. Currently, they are trying to condense the population through large masses of immigration to sustain a low supply in the real estate market and tourist housing in the main cities also contributes to causing a low supply. That is why the tourist sector is booming, all in the service of the interests of the financial power.

[saelaird]

It's about inequality.

As long as average monthly earnings have semblance of an affordability relationship to monthly housing cost (rent or mortgage)... it won't make a difference who owns the asset.

Get ready for property ownership status to be the deciding factor in your economic fortunes... haves vs. have-nots.

[hbytzzp]

More and more people might face a tough time in retirement. Low-paying jobs, inflation, and high rents make it hard to save. Now, middle-class Americans find it tough to own a home too, leaving them without a place to retire.

[Rahul-oybp]

I visited Netherland and found the country richer than UK and also found less asylum, immigrant, stabbing and rubbish on the roads. The house prices looked cheaper than the UK ( £1 mil property would be £650k in Netherlands). I dont know about the salary in banking, finance and IT sector.

[kalekold]

With an extra 750, 000 people entering the UK every year, house prices (and rent) will continue to skyrocket. Supply and demand, simple as that.

[wordysmith]

Down versus gold considerably in that period. The deed on my old 1895 Victorian 5 bed semi in Kent showed it first sold for 90 gold sovereigns. So at a time of sound money and industrial wealth, it was £45000 in today’s money. It still has a long way to go to equalise

[ekay]

The world is so fucked that housing is an asset rather than a right everyone should be able to afford

[kirkfriend]

One thing to consider also with more people going onto higher rates over the next year or so is people also coming down from the highs of 5-6% who fixed in for 2 years.

[justinstephenson]

As long as demand significantly exceeds supply prices will not fall in absolute terms. With a rise in wages in real terms prices are unlikely to fall even in real terms.

It really is as simple as that.

We have a very large shortfall in demand and thanks in part to net migration, we are seeing rising demand. As for the Govt.s plan to build 1.5m new homes over the next 5 years - it has absolutely no chance of succeeding.

[CharlieRabbit]

House prices when we’re talking actual transactions have fallen by about 10% in cities. It’s a buyers market out there but many sellers are too belligerent to lower their asking prices.

[AZ]

In my area there are a lot of buy to let and buy to holiday let properties coming on the market and they are not shifting that easily. Labour have announced a new Renters Rights Bill and there is a crackdown on the business rates/holiday let loophole. The writing is on the wall for landlords with greater regulation and capital gains tax coming down the line. Many are looking at their property holdings closely and feeling that gains in capital value are now looking unlikely. On the other side of the ledger, s21 regulations, proposed decent home standard costs and sharp rises in maintenance costs have made the investment unattractive. 2 year bonds are easily available at 4.5% which in many cases will exceed net yields without the headaches of managing residential property.
What this means for property values in anyones guess, it doesn't seem to be a particularly rational market!

[Drifter]

As someone who has been renting since their early 20s and has no access to family financial aid I have been consistently screwed and honestly the future continues to look bleak 🙃.

[Samtreee]

It's often hard to get skilled labour to build homes because a lot of the big construction companies want to pay tradespeople rock bottom prices. As a tradesperson, I would rather not do that type of work for the measly rewards of the hard work. Some people are happy smashing houses up all day and putting in the graft required to do it. But the budgets are tight. The prices of the properties do not reflect this. UK property is slowly beginning to feel not worth the money paid, in terms of what you receive for the amount they cost.

[Jac]

I think you are downplaying the impact of around 15 million additional people on the impact of the housing sector.

If the UK kicked out every single immigrant tomorrow the idea that housing prices wouldn't collapse by several factors is beyond absurd. An Economist should understand the affect of supply and demand. The extra demand 15 million people added to housing was likely the most important factor on price rises for at least the last 10 years if not the last 20.

[SarahWalker-Smith]

Has everyone noticed the desperate sellers trying to lure people in before the next downturn ? They’re everywhere. Things must be bad.

[peterwait]

Some Banks are intending to buy new build houses to rent them out.Supply is less than demand and rents are high, how do people save unless living in camper van . Population growth has exceeded house building for more than ten years.