What Is Happening To The UK Housing Market!?

This is a good macro explanation, but the uncomfortable or slightly unethical bit is what happens after the viewer accepts the thesis.

Yes, UK rental demand is structurally strong. Yes, institutions are buying income. Yes, small landlords are being squeezed.

But a lot of retail investors are not buying the same thing institutions are buying. They are often being sold off-plan flats through a distribution chain where large commissions are built into the price.

That is the part rarely discussed: the UK property case can be right, while the product being sold to the investor is still wrong.

NO. It’s STUPID, commercially illiterate LABOUR who are absolutely effing up the rental property market : the BIG commercial private equity giants are swooping in, buying up all the rental properties dumped by desperate small landlords ( because of all the DRACONIAN measures introduced by Starmer and his LABOUR goons who have ZERO understanding how the Property market functions and responds in the REAL , COMMERCIAL world : the uber giant private equity giants ( e.g., Blackrock , et al) ) will hoover up these ex- rental properties at cheap prices , and Labour’s goons will be absolutely pulverised by the UK rental property blowback which will be carefully engineered by these American private equity giants ! Absolute disaster for the UK rental property market - notably, for UK renters who are unable to buy , and still need to rent a home to live in !! .

So institutions buy properties, then let them to the government for boat people, the tax payer foots the bill!

Tell me this in a year's time. Liquidity is tightening. We're at 1991 sentiment. Properties are already being offered at auction for 50% of their 'current market value'. Just watch the total collapse of the flat and apartment market in over-inflated areas such as London and Manchester over the next year.

I've long known that your channel is biased but this one takes the cake. UK property isn't a "flat market" when prices have been down in real terms for some time. You then strategically cherry pick your dates for rental increases, completely ignoring that 5 years ago was the peak of Covid pandemic when rent prices where artificially depressed due to the pandemic....Then you claimed that institutions are "buying up" housing stock meanwhile institutions own just 2% of UK property.. It's truly embarrassing

Own nothing and be happy..

every decent area house ive viewed been snapped up selling over askin price by quite a bit even full renovaters

There is also the small factor of people fixing their mortgage. Lots of home owners saw which direction interest rates were heading and fixed them. Those people will be buffered from this.

Corporations should not be allowed to buy houses for people. Government should help 1st time buyers, to get onto property ladder, not to pay housing element which goes to greedy corporations or landlors who are already rich...

"Amateurs out" and "consolidate the market". - I find your use of the word amateurs demeaning to genuine people who legitimately were renting out a property for a small additional income. Now the market as you suggest is being consolidated into what? big corporations, who my guess is: don't have the welfare of their tenants as their number one priority, no their priority is profit. This is bad for the market. We want many more amateurs owning and renting out property's than not, in my opinion.

All planned and orchestrated

What?? Has crashed in London, south and some other places. Increased a little in already cheap places to begin with. There is no floor for property because of demographics. Boomers gradually "moving on" in the next few years will eventually leave much housing stock without demand

Completely different story in Glasgow right now my daughter is just about to secure a flat there fingers crossed everything goes smooth because we've signed every document ticked every box keys should be exchanged later this week and it was murder trying to get anything there

In the last 5years UK house prices: about +25% nominal, but slightly negative in real terms over five years.

That’s if you believe the official (CPI) numbers.Its more like CPLie

If you can get a cheap mortgage then use this leverage. Expecting house prices to rise from these prices is irrational long term. Cost of rent versus cost of mortgage is the measure to consider.

It´s all about margin of houses for sale. The forced sales haven´t come to fruition. 60% of sales now are falling through. I´m a landlord, I cannot increase my rent it´s simply not going to take it. How have prices got this high? There must be manipulation!

Already happened,

What you missed was the emphasis on the fact that the property owners now are going to be corporations and not people... that's why the property rates are not falling, that's why rental market is skyrocketing. The days of sugar coating everything are gone you have to be blunt and bitter so that the fact lands right. Peace ✌

SW London prices down 8-10% in a year. One problem with expensive houses is they will drop the most as the buyers are always limited. My previous house creeped from 550k to 950k in 10 years and it was very hard to find buyers at this price level.

Keep in mind we've had like 20% inflation since 2021, so a flat market is in some ways a bit of a crash

It’s so obviously all planned for the big institutions to monopolise the market. They want to make it as difficult as possible for landlords

Our rent went up £300 two years ago. We now pay £1350 a month. Any further rises and we will be looking elsewhere - or be homeless.

Another words if you can’t afford to buy a house, your fucked thank you for making people feel shit where there in a hole they have no escape as rents are too high and still increasing

Learning the hard way.

I got caught out in the UK’s 1980s/1990s real estate boom and bust.

Property had been rising in price throughout the 1980s, and I thought this can’t go on, but it did.

I was getting older, and wanted to buy my own place, but I was wary as I thought this boom couldn’t last.

The removal of dual tax relief on mortgages forced my hand.

If I didn’t buy now, I would never be able to afford it.



There was one last sharp upswing before the crash.

My property was falling in price, the economy was in recession and the threat of redundancy wasn’t far away.

This went on for years.

The only consolation being there were plenty of other people in exactly the same boat.



I had mistakenly believed prices were linked to income, but prices are actually linked to what you can afford to borrow.

As interest rates rose sharply at the end of the 1980s, it crashed the housing market.



This is the problem.

Money is being borrowed to afford ever rising prices, and this allows prices to reach eye watering levels before the inevitable crash.

Everyone thinks they can make some easy money from rising prices, and will borrow whatever they can to cash in.

Apart from me of course, who realised this just can’t go on.



It was only after 2008 that I discovered that this has always been the problem.

What is the fundamental flaw in free market theory?



The free market thinkers of the 1930s realised it was the bank’s ability to create money that had upset their free market theories.

Henry Simons and Irving Fisher supported the Chicago Plan to take away the bank’s ability to create money.

“Simons envisioned banks that would have a choice of two types of holdings: long-term bonds and cash. Simultaneously, they would hold increased reserves, up to 100%. Simons saw this as beneficial in that its ultimate consequences would be the prevention of "bank-financed inflation of securities and real estate" through the leveraged creation of secondary forms of money.”

https://www.newworldencyclopedia.org/entry/Henry_Calvert_Simons

That was the problem with free market theory then, and it’s the same now.



They had been borrowing money from banks to purchase assets and pump up asset prices.

When those inflated asset prices collapsed, so did the banking system.



The IMF re-visited the Chicago plan after 2008.

https://www.imf.org/external/pubs/ft/wp/2012/wp12202.pdf



Free market theory has always been fundamentally flawed.

The bank’s ability to create money has always been the problem.

This is where it all goes wrong.



What was happening behind the scenes?

The UK eliminated corset controls on banking in 1979, and the banks invaded the mortgage market.

https://www.housepricecrash.co.uk/forum/uploads/monthly_2018_02/Screen-Shot-2017-04-21-at-13_53_09.png.e32e8fee4ffd68b566ed5235dc1266c2.png

The corset controls had directed bank credit for productive purposes so debt grew with GDP.

When bank credit was used to fund the purchase of assets, like real estate, the debt in the system started to rise unsustainably.

Policymakers never realise the money to push up asset prices is coming out of the banking system, where the claims on future spending power pile up out of sight and out of mind.



That’s why house prices started roaring away in the 1980s.

See the dip?

That was the crash I experienced.

Then they came up with BTL to get the real estate economy going again.

It was full steam ahead until 2008.



House prices are linked to what you can afford to borrow.

As interest rates rise it crashes the housing market.

I learnt the hard way.

Actually, if there is a mass corporate insolvency event, those holding morgatges and those renting will be wiped out. The govt may have created a system that's handcuffed the housing market but that only works while people are employed.

Watch a 30% incoming.

Buy it in the North, he will sell you his/his clients portfolio ❤😂

Garys economics explains the true reasons why prices will never fall and only go up. Billionaires are competing will billionaires for housing now, normal people aren’t involved anymore. Most people watching this need to explain to their kids that they won’t be able to own a home as mummy and daddy didn’t revolt and just let it happen. lol

Mrs Reeves….genius. Thanks for nothing labour.

What do you know about the RESIDENTIAL HOUSING market? ??
The only buyers on the Road I love only OOVERSEAS INVESTOR LANDLORDS are buying - no one on this Road can afford the rent - HOUSING BENEFIT pays the exorbitant rents. Buying is out of the equation because they would need £60,000 deposit and 20 times their income to purchase a 2 bed room house.

Been watching a few channels with expert advisors who tell buy buy buy . Being older experience tells me we have a fair way to go before it slides to the bottom . Those forced sellers are piling up in my area 3 times more properties over the last 2 years on RM and reduced reduced reduced .

Yes it did. 30-40 percent down in parts of London. Large country houses and flats down 30 percent. Sales price's are 30 percent below average asking price. It's the statistics that are manipulated. New builds offing free car, BTL mortgages as low as 2 percent. Less than inflation. Eventually the truth will be impossible to hide

Thank Labour

The new feudalism is here. Be a slave and be happy. Time for a popular revolution.

Amazing that once again he hasn't discussed the fundamental driver of house prices. Wages. These haven't increased in real terms for 20 years and this is also true of property. Prices won't go up again until wages start to increase, which won't happen soon.

Here in the SE house prices have dropped by about 10% over last 2/3 years in nominal terms. But we have also had significant inflation over the same period, so in real terms there has been quite a significant correction in the housing market.