Ask almost anyone you know and they will tell you that their rent or mortgage payments is the largest bill that they have, along with the other associated costs of having a roof over your head like utilities, council tax and repairs.... The fact that OOH is sitting at 8% is actually insane, it's crippling peoples wages ! But as always, no matter whos in power they always report on the smallest number to try and gaslight us into thinking we're better off than we actually are
When your own people can not afford an house and if they can it means both of them working so most don,t have children . The country can only go one way . All caused by so called educated people who know better .
Exactly how I see it, people have sold out there own countryman to line there pockets but long term they are destroying the future of the UK! There is no future generations to make the UK the place it was! They will be replaced with economic migrants because they won't need to work or live like normal people instead they can just rough it in a hotel or have a gay slumber party! No normal family will live like labourers building Dubai 🤷🏻♂️
Depends what part of the Country though, anything in London and surrounding areas or near national parks etc is extortion due to greedy sales in the past and due to the gazumping rich brigade etc ! Gaz Yorkshire.
It’s part of the plan to keep people like Tony Blair Sunak Cameron rich they put there worthless paper money in buildings and thoses sore up in value while normal nobody can afford them and are surfs this is what thacher did in the 80s buy selling council flats off and not replacing them they have cornered the housing market ask your self in U.K. only 6 percent of the land is built on 94 percent land is green space why would the elite lose there value by building on 6 more percent of the land and increase 15 million more homes that would make everyone a home owner and decrease the value of the elite stock Next they will corner all business and commodities and everything untill 97 percent of U.K. population are surfs and peasents Nigel Farage and Donald trump are in this category Ask your self if you was in that category would you want to lose value in the wealth you have got hell no fook the poor freaks
So how can the greatest empire on the planet cannot afford to house their planet ...??? After all isnt it a first word country with the best human rights lawyers????
Don't simply retire from something; have something to retire to. Start saving, keep saving, and stick to investments. Building wealth involves establishing routines, like consistently setting aside funds at regular intervals for smart investments
It's really heartbreaking to see how inflation and recession impact low-income families. The cost of living keeps rising, and many struggle just to meet basic needs, let alone save or invest. It's a reminder of the importance of finding ways to create financial opportunities. You've helped me a lot sir Jihan! Imagine i invested $50,000 and received $190,500 after 14 days
Some persons think inves’tin is all about buying stocks; I think going into the stock market without a good experience is a big risk, that's why l'm lucky to have seen someone like mr Jihan Wu.
Jihan Wu Services has really set the standard for others to follow, we love him here in Canada 🇨🇦 as he has been really helpful and changed lots of life's
I'm favoured, 90K every week! I can now give to the locals in my communities and also support God's work and the church. God bless America,, thank you Mr Jihan Wu😊🎉
That is the biggest Problem which many People do not understand. Increased Goverment Spending, Tax Cuts or low Interest Rates are the main Cause for Inflation. And the People that are effected the most by Inflation are the People that own no Assets.
Our governments are manipulating the population and the hard working and productive people. The goal in life is to make things easier, less expensive, and to have a lower cost of living, so we can spend more time doing other things than just working, with our families and friends, and have nicer things. Instead, our governments, politicians, educated elite, have had a different plan. How many times have I heard that "deflation" is something to be afraid of, and how harmful it would be to our economy, and we had to do everything we could to prevent it from happening. This was an excuse, to continue printing more money, so they can finance their power dreams, buy votes, and pat themselves on the back for being so generous, and securing their positions. They know we wouldn't put up with the tax increases that it would take. This is a more underhanded way. We've been deceived and now their grand ponzi scheme is unraveling. How much will we have to suffer until we all figure it out.
@@johnyysimmerz Idk about the entire comment, but I do agree with the first portion of it. All of us deserve to be able to live like we're Tolkien's Hobbits in The Shire.
How quickly people forget how absurdly low interest rates were during the pandemic versus historical interest rates. Look at the 80s and the high rates they had back then and we'll see this is an adjustment back to the norm. This is a separate issue from how responsible the banking industry and home buyers were when money was almost being given away for free, FULLY aware that fixed-term mortgages would rollover eventually.
The reason for the rock-bottom interest rate was to drive more borrowing and lending, to spur economic growth after the financial crisis. So the banks and borrowers were doing exactly what the BoE and the Treasury wanted, sacrificing long-term stability for short-term benefit.
@wtfroflffs It is true but industry got drunk off the quantitative easing and convinced politicians to keep the taps open far past the point of preventing a crash. This fueled the mortgages with looser and looser requirements so banks could find ever more customers.
UM QUANTITIVE EASING HAS DEVALUED THE CURRENCY TO FUCK ALL AND KEPT THE CASINO RUNNING NOW WE CANNOT KICK THE CAN DOWN THE ROAD STOP DRINKING THE KOOL AID
It's not just rising "housing costs", that is the cost of running a household. It is also the rising values of housing and, with it, the out-of-reach deposits required. Out of reach even for those who may be able to take on mortgage repayments. Everyone knows also that Labour's promise of 1.5 million additional houses added to the market wont go anywhere. We are stuck with our supply current situation. Everyone knows also that Labour will fail to stem the demand of a million additional people looking for housing every year. In other words we're f.....d
Just heard about someone who is having to sell-up and move to a cheaper part of the UK. Putting house on market etc etc. If she puts up the tax on fuel in March this will add directly to inflation - especially food inflation. Looting and rioting are not far below the surface - this could just tip things over. But we have every confidence in Rachel - right !
I agree with resistance, but what in particular can it fix in the UK trying to curb inflation with increased mortgage rates? Maybe I'm not seeing some option, because it feels like the damage is already done and now it's the "find out" phase. Perhaps forcing them to report "real inflation" would be a step but what else?
It's stupid of the govt to not include price of housing, food and fuel in inflation numbers. At least that's how it is in Canada. Like, no wonder they say 2-5% instead of the real value of like... umm... wanna say +30% in the last 2 years comparing what my (same) salary used to get me then, and what it gets me now.
Exactly. So, when they say in the UK that inflation in the US is higher than in the UK it is not really true because housing is included in the US inflation. If you include housing in UK inflation it will be at least 100bps to 200bps higher.
We will be the new North Korea within a year! ''Red Terror' Angela Rayner is bringing in an anti free speech law soon. People are already going hungry and old people are freezing to death and the Govt is watching our bank accounts. There are camera's and microphones everywhere listening and watching our every move. In fact North Korea is less of a surveillance state than the UK. People are getting punished and even locked up for having an opinion! Elon for Prime Minister I say! Rant, Rave, Drool etc.........
When I purchased my home in 1997 I had a great professional career and excellent credit And the interest rate on my mortgage was 7.5%. The world has simply become far to comfortable with cheap money for far too long
7.5% on what kind of purchase price? 7.5% on a 50k mortgage is not going to be the same as 4% on 250k House prices have grown much greater than the inflation of wages over 30 years hence the disparity.
Tend to agree - when I bought my 1st ever house, (not in uk) local interest rates were 13.5%, and I made sure I could afford 16.5%. the "financial advice" of everyone used to trott out of "buys the most expensive house you can afford, because it will go up, and payments go down" is (imho) to blame for a lot of this. I'm now 51, own 2 houses, 1 in UK, and 1 outside, and I'm SO thankful to be mortgage free. I don't speculate - the house outside UK has family members staying in it, and my family and I have been in current place for 13 years, and intended to be for another 14 years at least.
The UK’s sky-high house prices are like an anchor dragging down every sector of the economy. Think about it: when people spend the bulk of their income on rent or mortgages, they’ve got less left to spend elsewhere. For manufacturers, this means higher wages are needed just to cover basic living costs, making UK goods more expensive and less competitive globally. It’s like a hidden tax on productivity. Housing prices are also like currency-artificially inflated, creating an illusion of wealth while squeezing younger generations and renters. This imbalance stifles mobility, innovation, and even entrepreneurship because people are too weighed down by housing costs to take risks. Politicians avoid tackling this because, let’s face it, upsetting homeowners is electoral suicide. But ignoring it only deepens the problem. Until the UK stops treating homes as speculative assets and starts addressing affordability, the economy will keep losing its edge....
Thanks buddy. But I bet you ain’t half as concerned as the people that live here. Stuck with this evil government for 5 years. I don’t think they are as stupid as they appear. I bet this is being done on purpose. I suspect you’ll see a financial melt down and CBDCs being introduced by force.
Always made me squirm when something went up more than an expected norm it was left out of the inflation calculation. Governments covering up yet again.
Morgage rate average is a fixed 3.5% in France for 20 years and that is considered high...😅, I have friends who got mortgage at fixed 1.1% on 20 years...
It's a trick of how they announce the news of it. Assume over 3 years prices did 10% 1 year, 10% next year, then 2% last year. The news announces "only 2% inflation last year!" But failing to include the years before making a real 22% inflation in my example
I’ll ask a stupid question as a dumb colonist (American): America, the colony, offer a 30y fix interest, 30y adjustable but with a safety limit…….i assume Canada, that other colony, has something similar to America, too. If England was able to colonize and import next practice from all around the world; then, why isn’t there some form of “30y fix” or “30y adjustable with safety brakes in case interest EXPLODE”….? If politicians are this incompetent; then, I like to offer myself as a technocrat….a minister of England.
UK economy will crash. European Union 🇪🇺 is moving its money out from London. Casino 🎰 on the river Thames must go. UK has lots of money. But only important thing with that is that it is ours 🇪🇺 London will not have any money of ours. We are absolutely not happy about that freaking 🤡 🎪 So don’t waste your time. We have warned them since the year 2015.
As a US based investment advisor who has a lot of UK expat clients this is my absolutely favorite channel on the UK economy. It seems the level of financial education in the UK is sort of lower than the US. So many other UK channels have a political bent (either left or right) or try and lead you to a conclusion that the data does not support. Joe is transparent with what his charts are and are not showing. The lack of bias tells me he knows what he's doing. Excellent.
@Joe, thanks for covering another country besides Russia and China. Enjoyed your report and detailed analysis and picked up a couple new insights that I greatly appreciate. Keep up your great work and please diversify your analysis and reports.
I believe housing is the only true measure of inflation. Land is finite and people will always need homes. Everything else can be influenced by changes in trade, consumer habits and government policy.
The problem with that is that investing in real estate by a relatively small number of big land owners drives up prices waaay more than just the need for housing.
thanks for the CPIH numbers. Ridiculous that you can't get a 10 year fixed mortgage in the uk. Forcing interest rate risk on to joe public is criminal. the whole system is so lopsided in the banks favour and the politicians are paid to help the banks
Of course you can get a 10 year fixed rate mortgage. But you'll be paying a higher rate. If you were looking for a 25 year fix then you'd have to be looking at a speciality deal via a mortgage broker, but even the likes of Halifax advertise 10 year fixes direct to consumers.
'I read in the paper...' The UK has the absolute lowest trust ratings of print media in Europe. There are countries where some media are owned by political parties, and even they are trusted more than the UK's papers. In the Guardian (if you trust them: see above) there was an article stating that low and middle income families in the UK are far poorer than their OECD counterparts. The cost of housing is 44% higher in the UK than in the OECD. German families are 21%, or £2300 better off per year; Dutch families even 39%. Google for 'UK low- to middle-income families far poorer than OECD counterparts - study' to read the article. During the pandemic, our income remained the same, but our expenses went down drastically. So we paid off the house, way before the ECB started raising the base rate. It's incredible what peace of mind it gives to pay off your house. The UK's woes are not solely due to Brexit, but my goodness, it certainly didn't help.
It tickles me that the UK Government both Tory and Labour celebrate GDP growth of 1% and lower. That's a pathetic number. 😂 I'd barely call it growth at all.
The Inflation Rate data has always traditionally not included Housing. The Rate is from a basket of goods + utilities and no services such as rent or debt. The UK's all government debt is less than the GDP. The US's all government debt is more than 33 Trillion dollars, and equates to more than 110% of GDP.
In any other sphere of life, people understand monopolies and cartels are not good. They encourage complacency & apathy. Look at the car industry in the soviet union or east germany. Same, unimproved product for decades on end because there were only a few companies and they never had to deal with upstarts. FPTP prevents any upstart political movement getting anywhere, and the compliant, servile attitude of the British public treats any outsider, be it the greens on one side or UKIP on the other as something to be stopped. The red/blue alliance never changes because they know they'll get voted in regardless. So, over the last 100 years, only two parties have been in power, and jointly in that time they have reduced us from the number one power to a laughing stock. I honestly don't know how people can live with themselves after voting either red or blue.
Thank you joe, for finaly saying this. An inflation figure that dose NOT include housing costs is meaningless. Unless you are among the few who own their own home outright.
Im ok im not worried but I don't invest in anything or buy anything large in the UK it's easy really, there's a lot of silly greedy people here who keep buying crap they don't need, you got people who own loads of homes for some weird reason yet they only can live in one! People buying expensive crap they are the ones who will suffer, me I'm good and looking forward to the summer eating ice creams and going out on the water and going abroad to enjoy the sun! Remember the film "fight club" the famous quote "the things you own end up owning you" that's how British people are living there life! I haven't worked since November yet I'm not worried 💪 have a nice day
How the hell any government managed to sideline the cost of housing from inflation is beyond me , probably why the cost of housing is so high look at the figures for self build it is 30% less than the likes of main housebuilders and shows where the real problem in the UK is .
After watching a lot of these videos over the past few days I decided to sell off all my UK investments, I hope I did the right thing. Good luck to the UK people.
Finally the UK has joined Turkey, India, Cuba and many other third world countries. Welcome to the club! My prediction is bad things will happen in the next 6-9 months like many other bold predictions that never happen!
It's never been the citizens of this country that have fucked up year on year, we go about our business working like mad and not doing anything financially crazy but yet every year we are at the mercy of those in charge. It's about time those clowns start taking responsibility instead of turning to us and looking for more ways to shift us. There might not be any money in Westminster but there is definitely no money left in ordinary folks bank accounts.
It's completely in line with the Bank of England's prediction made last year. You can manipulate the figures as much as you want but at the end of the day, only the figures of the Bank of England matter.
Home buyers should have factored in the possibility of interest rate rises when borrowing instead of inflating their expectations beyond what they could actually afford.
I thought that the stress testing lenders were supposed to be carrying out after the GFC were to prevent this happening......... again!!! If a borrower can't work out whats affordable amounts to borrow for their income, then the lender was supposed to stress test this at higher interest rates to protect people getting into the same mess as 2007-2008
I just went to buy a small box of maltesers, last week they were £2.70, today they were £3.50 and in some places over £4, this seems a little over 2. 5%
Not sure if your giving an overall summary of UK financial health or trying to make some political statement. Most of the housing cost damage was done by the last government with Liz Truss pushing up mortgages by scaring the financial community with unfunded tax reductions and by George Osbourn for the rental market by section 24. The current housing pain is Tory made, not that I am a fan of Labour as I am fed up with them blaming each other.
Fear not. Though this may be potentially the worst ever financial crisis the UK has ever faced - existential even - we have our very best minds on the case 😂 soon as Rachel has finished reading “accounting for dummies” we’ll be taking bold action.
Housing ( and rental) costs will increase further this year. The swap rates are already increasing and Virgin have increased their mortgage rates with immediate effect. Rents will increase due to changes Labour have already made ( landlords will likely need to register and pay a fee, plus the renters reform bill increases landlords risk therefore lead to increased costs and insurance).
I'm sure the Ukrainians like the illegal immigrants will want to return when they see how much of a failure the UK is! I will hide my eyes when they find out I will feel embarrassed 🥴🥴 sorry dudes that's my government 🤷🏻♂️😬 don't blame me 😂
@Joe Bloggs it would be interesting to correlate this with the population pyramid like how you have done with Russia and the US to see if these rising costs that have been happening for some time now are potentially causing an unstable population within the UK as this will cause further issues going down the line with the Boomers retiring.
Nanny State, Social Democracies are hard pressed to deliver on promises as the global financial outlook grows bleaker. The Banking, Insurance and Pension Systems are under growing pressure and need to honest and forthcoming about their challenges. Governments need to be honest. People need to prepare for coming austerity as we work through the processes needed to keep people in their homes at affordable rates.
many countries have rent caps and energy subsidies. it makes economic sense to get rid of this bottleneck to allow people to spend more of their income on goods and services. Nobody is,going to invest their business with rent and energy prices through the roof.
Ah yes, classic :) we don't like the data so let's adjust measuring method so the results are what we want them to be. We have done that in Eeast Europe many times in the last decades. Here is another tip: If you want to fix the budget hole you just create some form of agency and transfer all the debt there, or let's say put NHS on debt and not count it as a budget, you'll be able to say that budget is ok, it will also skip all the safety guards regarding debt/gdp ratio.
UK housing is expensive if you are unfortunate enough to be paid in pounds. Less so in a lot of other currencies. In 2007, a UK house was about £200,000 or about $400,000 US. In 2025, a UK house is £300,000, or about $360,000 US. So, great news if you are Blackrock and other finance houses lobbying Reeves for more presence in UK residential...you pay less now than 18 years ago. Housing might fall in cost for foreigners, as sterling weakens further, but not sure I see big falls for local buyers.
I just looked at 3 main site selling homes... 700,000 was the least expensive "House". And not even a house... it was literally part of 10 other houses....
@@Clutch275 Perhaps in London. Most places are nearer 300/400k. All I know is its a lot more competitive than 25/30 years ago, and that is not going to change. The indians are here to stay and put down roots, not like the eastern europeans who would generally save some money to build a house back in poland and not distort the UK housing sales (if not rental) market. Even where I worked last year, where wages werent much above minimum wage, £14-15 per hour for most, you had literally hundreds of indians come to this country to work there, and within 12-18 months they are already buying houses. They do the standard 35 hours a week, £600, plus another 35 hours of overtime, a mix of 1.5 & double pay, so another £800 in overtime, typically earning £1400 a week (before taxes). That is bottom end, entry level warehouse jobs. So after christmas bonus + cost of living payments, easily grossing £70k a year. (overtime is plentiful) Thats one warehouse for one company. They all have side hustles for every minute they are not working their main job. Uber, deliveroo, even wheeling and dealing on marketplace. For the first year or 18 months they are here they room share, carpool literally live on pennies a day, putting everything towards a sizeable house deposit, whilst the British youth, whining about house prices, go off travelling & rarely bothered turning up for overtime.
Ask almost anyone you know and they will tell you that their rent or mortgage payments is the largest bill that they have, along with the other associated costs of having a roof over your head like utilities, council tax and repairs.... The fact that OOH is sitting at 8% is actually insane, it's crippling peoples wages ! But as always, no matter whos in power they always report on the smallest number to try and gaslight us into thinking we're better off than we actually are
same in the usa. good post
you used to be able to be a shoe maker and afford 2 cars, a new home and could afford multiple kids. they took this from us, how is noone caring?
Hellish place
Ivanka's shoe line was made in China as recently as 2018. You can ask her and her daddy all about it.
When your own people can not afford an house and if they can it means both of them working so most don,t have children . The country can only go one way . All caused by so called educated people who know better .
Exactly how I see it, people have sold out there own countryman to line there pockets but long term they are destroying the future of the UK! There is no future generations to make the UK the place it was! They will be replaced with economic migrants because they won't need to work or live like normal people instead they can just rough it in a hotel or have a gay slumber party! No normal family will live like labourers building Dubai 🤷🏻♂️
Depends what part of the Country though, anything in London and surrounding areas or near national parks etc is extortion due to greedy sales in the past and due to the gazumping rich brigade etc !
Gaz Yorkshire.
It’s part of the plan to keep people like Tony Blair Sunak Cameron rich they put there worthless paper money in buildings and thoses sore up in value while normal nobody can afford them and are surfs this is what thacher did in the 80s buy selling council flats off and not replacing them they have cornered the housing market ask your self in U.K. only 6 percent of the land is built on 94 percent land is green space why would the elite lose there value by building on 6 more percent of the land and increase 15 million more homes that would make everyone a home owner and decrease the value of the elite stock
Next they will corner all business and commodities and everything untill 97 percent of U.K. population are surfs and peasents Nigel Farage and Donald trump are in this category
Ask your self if you was in that category would you want to lose value in the wealth you have got hell no fook the poor freaks
13 years of Tory rule comes to effect, and I dont see them as "educated" or skilled.
So how can the greatest empire on the planet cannot afford to house their planet ...??? After all isnt it a first word country with the best human rights lawyers????
Don't simply retire from something; have something to retire to. Start saving, keep saving, and stick to investments.
Building wealth involves establishing routines, like consistently setting aside funds at regular intervals for smart investments
It's really heartbreaking to see how inflation and recession impact low-income families. The cost of living keeps rising, and many struggle just to meet basic needs, let alone save or invest. It's a reminder of the importance of finding ways to create financial opportunities. You've helped me a lot sir Jihan! Imagine i invested $50,000 and received $190,500 after 14 days
Some persons think inves’tin is all about buying stocks;
I think going into the stock market without a good experience is a big risk, that's why l'm lucky to have seen someone like mr Jihan Wu.
Jihan Wu Services has really set the standard for others to follow, we love him here in Canada 🇨🇦 as he has been really helpful and changed lots of life's
His guidance allowed me to restructure my retirement plan, resulting in an estimated $700,000 more by the time I retire.
I'm favoured, 90K every week! I can now give to the locals in my communities and also support God's work and the church. God bless America,, thank you Mr Jihan Wu😊🎉
Can't spend your way out of inflation
That is the biggest Problem which many People do not understand.
Increased Goverment Spending, Tax Cuts or low Interest Rates are the main Cause for Inflation.
And the People that are effected the most by Inflation are the People that own no Assets.
Won't that be a surprise for these disgusting clowns later on
Just get yourself a buttload of cash and sit it out, just like what Warren Buffett is doing now. 💰🙃🤣
@gOtze1337 exactly. Just about the only tool left is loosening up regulatory burdens.
@@vincentyeo88inflation eats away at that cash. Not a great idea. Buffet will be hedging that cash with something like gold or it’s just losing value.
Our governments are manipulating the population and the hard working and productive people. The goal in life is to make things easier, less expensive, and to have a lower cost of living, so we can spend more time doing other things than just working, with our families and friends, and have nicer things. Instead, our governments, politicians, educated elite, have had a different plan. How many times have I heard that "deflation" is something to be afraid of, and how harmful it would be to our economy, and we had to do everything we could to prevent it from happening. This was an excuse, to continue printing more money, so they can finance their power dreams, buy votes, and pat themselves on the back for being so generous, and securing their positions. They know we wouldn't put up with the tax increases that it would take. This is a more underhanded way. We've been deceived and now their grand ponzi scheme is unraveling. How much will we have to suffer until we all figure it out.
Well, majority voted for Brexit and this is now the result. You get what you vote for.
Do people actually believe this? Unhinged lol.
@@johnyysimmerz Idk about the entire comment, but I do agree with the first portion of it. All of us deserve to be able to live like we're Tolkien's Hobbits in The Shire.
@@dutchbavarian you never had a vote - come on this all part of the global plan - to make uk bust to bring in the reset
@@TheForeignGamer yes im with you there but when the pulled the 2020 stunt - and you do basic research then this is really bad where we are going
Thank you for covering this subject, which, as you say, is not getting the attention it deserves.
How quickly people forget how absurdly low interest rates were during the pandemic versus historical interest rates. Look at the 80s and the high rates they had back then and we'll see this is an adjustment back to the norm. This is a separate issue from how responsible the banking industry and home buyers were when money was almost being given away for free, FULLY aware that fixed-term mortgages would rollover eventually.
The reason for the rock-bottom interest rate was to drive more borrowing and lending, to spur economic growth after the financial crisis. So the banks and borrowers were doing exactly what the BoE and the Treasury wanted, sacrificing long-term stability for short-term benefit.
@wtfroflffs It is true but industry got drunk off the quantitative easing and convinced politicians to keep the taps open far past the point of preventing a crash. This fueled the mortgages with looser and looser requirements so banks could find ever more customers.
UM QUANTITIVE EASING HAS DEVALUED THE CURRENCY TO FUCK ALL AND KEPT THE CASINO RUNNING NOW WE CANNOT KICK THE CAN DOWN THE ROAD STOP DRINKING THE KOOL AID
Minds of fish
It's not just rising "housing costs", that is the cost of running a household.
It is also the rising values of housing and, with it, the out-of-reach deposits required. Out of reach even for those who may be able to take on mortgage repayments.
Everyone knows also that Labour's promise of 1.5 million additional houses added to the market wont go anywhere. We are stuck with our supply current situation.
Everyone knows also that Labour will fail to stem the demand of a million additional people looking for housing every year.
In other words we're f.....d
Just heard about someone who is having to sell-up and move to a cheaper part of the UK. Putting house on market etc etc. If she puts up the tax on fuel in March this will add directly to inflation - especially food inflation. Looting and rioting are not far below the surface - this could just tip things over. But we have every confidence in Rachel - right !
🎉 Who is Rachel?
@@verttikoo2052 A tea lady that used to work for a bank.
@@verttikoo2052 you know - Rachel from customer services.
I agree with resistance, but what in particular can it fix in the UK trying to curb inflation with increased mortgage rates? Maybe I'm not seeing some option, because it feels like the damage is already done and now it's the "find out" phase. Perhaps forcing them to report "real inflation" would be a step but what else?
She has a GCSE in accounting so I’m sure we’ll be fine.
It's stupid of the govt to not include price of housing, food and fuel in inflation numbers. At least that's how it is in Canada.
Like, no wonder they say 2-5% instead of the real value of like... umm... wanna say +30% in the last 2 years comparing what my (same) salary used to get me then, and what it gets me now.
OOH is the figure your talking about. The ONS does include it but they try and distract everyone from it as it’s a scary line that keeps going up
Exactly. So, when they say in the UK that inflation in the US is higher than in the UK it is not really true because housing is included in the US inflation. If you include housing in UK inflation it will be at least 100bps to 200bps higher.
The UK is finished as an investment centre, and it's heading for a financial reset. The rest of the world is now referring to the UK as the new Cuba😂
A small island run by authoritarian communist marxists? I mean it's pretty bang on comparison
We will be the new North Korea within a year! ''Red Terror' Angela Rayner is bringing in an anti free speech law soon.
People are already going hungry and old people are freezing to death and the Govt is watching our bank accounts.
There are camera's and microphones everywhere listening and watching our every move. In fact North Korea is less of a surveillance state than the UK. People are getting punished and even locked up for having an opinion!
Elon for Prime Minister I say! Rant, Rave, Drool etc.........
Sad because we have all the ingredients for growth just really bad goverment policy.
A small island nation run by authoritarian marxists? Sounds similar
When I purchased my home in 1997 I had a great professional career and excellent credit
And the interest rate on my mortgage was 7.5%. The world has simply become far to comfortable with cheap money for far too long
the problem is the purchase price of the home, not the interest rate. my home is valued 3X greater than what I paid for it
@@curie3938 that is called inflation and real estate market development
7.5% on what kind of purchase price?
7.5% on a 50k mortgage is not going to be the same as 4% on 250k
House prices have grown much greater than the inflation of wages over 30 years hence the disparity.
Tend to agree - when I bought my 1st ever house, (not in uk) local interest rates were 13.5%, and I made sure I could afford 16.5%. the "financial advice" of everyone used to trott out of "buys the most expensive house you can afford, because it will go up, and payments go down" is (imho) to blame for a lot of this. I'm now 51, own 2 houses, 1 in UK, and 1 outside, and I'm SO thankful to be mortgage free. I don't speculate - the house outside UK has family members staying in it, and my family and I have been in current place for 13 years, and intended to be for another 14 years at least.
Fractional reserve banking ended capitalism.
I like your short video format it gets to the point quickly .
Thanks Joe! We could do with a UK report EVERY DAY please, thanks.
People in government may be shocked the the man on the street has watched inflation incrementally rise by the day,
Buildings and Contents insurance renewal this month rose by 20%!
Insurance companies always makes sure that they raise the prices with the inflation. If they hike the price with 20% then that is the real inflation.
Real inflation and what the government says are two seperate things
@@Maggiemay1942 It is just divided monthly when insurance company can change their price only once a year.
it is NOT 2.5% it is more, easily manipulated figures from the ONS
Imagine using a figure for inflation that doesn't include the most important cost no wonder the UK is failed state.
The UK’s sky-high house prices are like an anchor dragging down every sector of the economy. Think about it: when people spend the bulk of their income on rent or mortgages, they’ve got less left to spend elsewhere. For manufacturers, this means higher wages are needed just to cover basic living costs, making UK goods more expensive and less competitive globally. It’s like a hidden tax on productivity.
Housing prices are also like currency-artificially inflated, creating an illusion of wealth while squeezing younger generations and renters. This imbalance stifles mobility, innovation, and even entrepreneurship because people are too weighed down by housing costs to take risks.
Politicians avoid tackling this because, let’s face it, upsetting homeowners is electoral suicide. But ignoring it only deepens the problem. Until the UK stops treating homes as speculative assets and starts addressing affordability, the economy will keep losing its edge....
Thanks a lot, I appreciate how you're helping me understand more about so many areas.
it’s going to take a long time to fix the damage of previous government.
hah, if only it were that simple. Forget the blame game and focus what you can do to improve your lot and those around you in your community.
I am getting increasingly concerned for our English cousins
Thanks buddy. But I bet you ain’t half as concerned as the people that live here. Stuck with this evil government for 5 years.
I don’t think they are as stupid as they appear. I bet this is being done on purpose. I suspect you’ll see a financial melt down and CBDCs being introduced by force.
Always made me squirm when something went up more than an expected norm it was left out of the inflation calculation. Governments covering up yet again.
Morgage rate average is a fixed 3.5% in France for 20 years and that is considered high...😅, I have friends who got mortgage at fixed 1.1% on 20 years...
Lucky sods lol
In the US its currently over 7%...go figure.
My cost of living has gone up 35% over the last 3 years. Inflation may be lower but the prices aren’t coming down are they ??!!!
The inflation is high in the UK. The Tories were good in hiding it and the stacked system still speaks of unicorns.
It's a trick of how they announce the news of it.
Assume over 3 years prices did 10% 1 year, 10% next year, then 2% last year. The news announces "only 2% inflation last year!" But failing to include the years before making a real 22% inflation in my example
And they never will.
It is really amazing to me that you have never heard of Brexit, Joe.
Joe, it’s not as simple as you say. What you’re quoting is the standard variable rate, not the rate you get mortgage offers at.
I’ll ask a stupid question as a dumb colonist (American):
America, the colony, offer a 30y fix interest, 30y adjustable but with a safety limit…….i assume Canada, that other colony, has something similar to America, too.
If England was able to colonize and import next practice from all around the world; then, why isn’t there some form of “30y fix” or “30y adjustable with safety brakes in case interest EXPLODE”….?
If politicians are this incompetent; then, I like to offer myself as a technocrat….a minister of England.
UK economy will crash. European Union 🇪🇺 is moving its money out from London. Casino 🎰 on the river Thames must go. UK has lots of money. But only important thing with that is that it is ours 🇪🇺 London will not have any money of ours. We are absolutely not happy about that freaking 🤡 🎪 So don’t waste your time. We have warned them since the year 2015.
I started to watch you because you talk about horrible difficult issues and then end up with a smile on your face😁
As a US based investment advisor who has a lot of UK expat clients this is my absolutely favorite channel on the UK economy. It seems the level of financial education in the UK is sort of lower than the US. So many other UK channels have a political bent (either left or right) or try and lead you to a conclusion that the data does not support. Joe is transparent with what his charts are and are not showing. The lack of bias tells me he knows what he's doing. Excellent.
He has an EU loving slant at all times , dont let facts and figures fool you _ they can be selective too.
UK fund managers are not selling UK bonds. BoE is selling government bonds and fund managers are buying them.
Good podcast,amazing that housing costs are not included in the inflation rate.It is in the US.
You should see What the standard shopping bag contains in the inflation calculation.
Thanks for the shout out for tenants, who mostly don't benefit from the inflation-proofing that comes with rising house prices either.
@Joe, thanks for covering another country besides Russia and China. Enjoyed your report and detailed analysis and picked up a couple new insights that I greatly appreciate. Keep up your great work and please diversify your analysis and reports.
I believe housing is the only true measure of inflation. Land is finite and people will always need homes. Everything else can be influenced by changes in trade, consumer habits and government policy.
The problem with that is that investing in real estate by a relatively small number of big land owners drives up prices waaay more than just the need for housing.
The value of housing is also dependent on government policies and consumer behaviour…..looking at one metric to gauge inflation isn’t wise.
Same with bubble loans on cars.
thanks for the CPIH numbers. Ridiculous that you can't get a 10 year fixed mortgage in the uk. Forcing interest rate risk on to joe public is criminal. the whole system is so lopsided in the banks favour and the politicians are paid to help the banks
101 to become a Tory millionaire.
Of course you can get a 10 year fixed rate mortgage. But you'll be paying a higher rate. If you were looking for a 25 year fix then you'd have to be looking at a speciality deal via a mortgage broker, but even the likes of Halifax advertise 10 year fixes direct to consumers.
What those figures won't include is the cost of repairing a house when it inevitably needs it.
'I read in the paper...'
The UK has the absolute lowest trust ratings of print media in Europe. There are countries where some media are owned by political parties, and even they are trusted more than the UK's papers.
In the Guardian (if you trust them: see above) there was an article stating that low and middle income families in the UK are far poorer than their OECD counterparts. The cost of housing is 44% higher in the UK than in the OECD. German families are 21%, or £2300 better off per year; Dutch families even 39%. Google for 'UK low- to middle-income families far poorer than OECD counterparts - study' to read the article.
During the pandemic, our income remained the same, but our expenses went down drastically. So we paid off the house, way before the ECB started raising the base rate. It's incredible what peace of mind it gives to pay off your house.
The UK's woes are not solely due to Brexit, but my goodness, it certainly didn't help.
Informative video with great explanations. Thank you for sharing the understanding of the UK mortgage process and its impact on the overall economy.
The Problems as you see are debt, poor growth, lack of investment and criminality in the political class
Good explanation Joe.
It tickles me that the UK Government both Tory and Labour celebrate GDP growth of 1% and lower. That's a pathetic number. 😂 I'd barely call it growth at all.
The Inflation Rate data has always traditionally not included Housing. The Rate is from a basket of goods + utilities and no services such as rent or debt. The UK's all government debt is less than the GDP. The US's all government debt is more than 33 Trillion dollars, and equates to more than 110% of GDP.
really good analysis
Who to blame? The Tories? Starmer? Blame the people who voted them into power. That's right, you get the government you deserve.
The tories 100%. Almost 2 decades of chronic mismanagement. Labour cant fix those issues in just a few months.
Exactly
Voters can only vote for the candidates up for election. If they are all idiots your vote is not worth using.
In any other sphere of life, people understand monopolies and cartels are not good. They encourage complacency & apathy. Look at the car industry in the soviet union or east germany. Same, unimproved product for decades on end because there were only a few companies and they never had to deal with upstarts. FPTP prevents any upstart political movement getting anywhere, and the compliant, servile attitude of the British public treats any outsider, be it the greens on one side or UKIP on the other as something to be stopped.
The red/blue alliance never changes because they know they'll get voted in regardless. So, over the last 100 years, only two parties have been in power, and jointly in that time they have reduced us from the number one power to a laughing stock.
I honestly don't know how people can live with themselves after voting either red or blue.
@@Nick-io9uk “meet the new boss… same as the old boss”
Thank you joe, for finaly saying this. An inflation figure that dose NOT include housing costs is meaningless. Unless you are among the few who own their own home outright.
Still no mention of Brexit.
In the US most people get 30 year mortgages not 5 year mortgages like the UK
Sounds like lots of people in UK made lots of bad financial decisions. Those bad bets and leads to lots of losers.
Im ok im not worried but I don't invest in anything or buy anything large in the UK it's easy really, there's a lot of silly greedy people here who keep buying crap they don't need, you got people who own loads of homes for some weird reason yet they only can live in one! People buying expensive crap they are the ones who will suffer, me I'm good and looking forward to the summer eating ice creams and going out on the water and going abroad to enjoy the sun! Remember the film "fight club" the famous quote "the things you own end up owning you" that's how British people are living there life! I haven't worked since November yet I'm not worried 💪 have a nice day
If you exclude all the things which have become more expensive, inflation is zero 🤣😂🤣
Its like these jokers have adopted Hollywood accounting
How the hell any government managed to sideline the cost of housing from inflation is beyond me , probably why the cost of housing is so high look at the figures for self build it is 30% less than the likes of main housebuilders and shows where the real problem in the UK is .
Imagine living in a capitalist society that has privatised everything and asking the government to help.
Lol, lmao even.
Thank you so much for your support
In Denmark it’s not only inflation, take the prize of butter and milk. This has nothing to do with inflation but the producers earn much more
Well done, good points well made.
I remember paying 15% when Margaret Thatcher was PM.
Need to increase rents and evict all the tenants now before its too late
Thanks Joe for the update , and all the info you provided … 💙💛💙
People are just not confident and have little trust in this current government.
Surely inflation hasn't increased 'by' 2.5%, it has increased 'to' 2.5%?
This is a blip, it will rocket up soon due to pound falling, fuel prices increasing, food prices, etc
It’s not the stats that are misleading, it’s the way they are reported
Owners' equivalent rent is a metric to monitor costs but does not increase what owner occupiers actually pay.
Thanks for a very educational youtube video.
I'm sure there are many countries around the world that would like the UK's "Deep trouble"
Yup, Ukraine, Syria, North Korea, Iran, Argentina, South Sudan, Venezuelan, Zimbabwe, Myanmar......
After watching a lot of these videos over the past few days I decided to sell off all my UK investments, I hope I did the right thing. Good luck to the UK people.
Wouldn't be surprised if Reeves has an emergency budget
Don't lock in a mortgage at these rates, wait for the rates to drop.
I don`t think Labour planned the reduction. It`s just a fact when no one is spending.
Joe … it’s LEGACY MEDIA …not mainstream. Do yourself a favor and get it right. 😂🤣😂🤣
Finally the UK has joined Turkey, India, Cuba and many other third world countries. Welcome to the club! My prediction is bad things will happen in the next 6-9 months like many other bold predictions that never happen!
Great video Joe
It's never been the citizens of this country that have fucked up year on year, we go about our business working like mad and not doing anything financially crazy but yet every year we are at the mercy of those in charge. It's about time those clowns start taking responsibility instead of turning to us and looking for more ways to shift us. There might not be any money in Westminster but there is definitely no money left in ordinary folks bank accounts.
It's completely in line with the Bank of England's prediction made last year. You can manipulate the figures as much as you want but at the end of the day, only the figures of the Bank of England matter.
9:18 Lol, Someone once had the temerity to announce that "There are lies, damn lies & statistics." 😁😁
Leave Broken Britain while you can
UK has an economy when did this happen ??
Home buyers should have factored in the possibility of interest rate rises when borrowing instead of inflating their expectations beyond what they could actually afford.
I thought that the stress testing lenders were supposed to be carrying out after the GFC were to prevent this happening......... again!!!
If a borrower can't work out whats affordable amounts to borrow for their income, then the lender was supposed to stress test this at higher interest rates to protect people getting into the same mess as 2007-2008
Yep we are in a lot of trouble.
I just went to buy a small box of maltesers, last week they were £2.70, today they were £3.50 and in some places over £4, this seems a little over 2. 5%
Why the Tories called an election in spring!!
Oooops Summer Election!
Not sure if your giving an overall summary of UK financial health or trying to make some political statement. Most of the housing cost damage was done by the last government with Liz Truss pushing up mortgages by scaring the financial community with unfunded tax reductions and by George Osbourn for the rental market by section 24. The current housing pain is Tory made, not that I am a fan of Labour as I am fed up with them blaming each other.
If you look at his video history, you won't find anything regarding the troy government.
Fear not. Though this may be potentially the worst ever financial crisis the UK has ever faced - existential even - we have our very best minds on the case 😂 soon as Rachel has finished reading “accounting for dummies” we’ll be taking bold action.
A mortgage rate doubling or tripling does not equate to the monthly payment amount doubling /tripling. I don't think this was outlined very clearly.
Housing ( and rental) costs will increase further this year. The swap rates are already increasing and Virgin have increased their mortgage rates with immediate effect. Rents will increase due to changes Labour have already made ( landlords will likely need to register and pay a fee, plus the renters reform bill increases landlords risk therefore lead to increased costs and insurance).
Excellent as always! Thank you Joe!!! Slava Ukraine 🇺🇦!!!
Sending money to Ukrainistan is weakening the Headquarters of the East India Company. Great Game.
I'm sure the Ukrainians like the illegal immigrants will want to return when they see how much of a failure the UK is! I will hide my eyes when they find out I will feel embarrassed 🥴🥴 sorry dudes that's my government 🤷🏻♂️😬 don't blame me 😂
I agree with the video but mortgage rates aren't at 7%? They're at 4-5%
I agree. 4.2% is the norm. I checked yesterday and now, at any LTV.
@Joe Bloggs it would be interesting to correlate this with the population pyramid like how you have done with Russia and the US to see if these rising costs that have been happening for some time now are potentially causing an unstable population within the UK as this will cause further issues going down the line with the Boomers retiring.
Nanny State, Social Democracies are hard pressed to deliver on promises as the global financial outlook grows bleaker. The Banking, Insurance and Pension Systems are under growing pressure and need to honest and forthcoming about their challenges. Governments need to be honest. People need to prepare for coming austerity as we work through the processes needed to keep people in their homes at affordable rates.
We've had enough austerity. It doesn't work.
many countries have rent caps and energy subsidies. it makes economic sense to get rid of this bottleneck to allow people to spend more of their income on goods and services. Nobody is,going to invest their business with rent and energy prices through the roof.
Figures are the easiest factor for successive governments to manipulate to make things look good on the surface of things.
Never mind the quality, feel the width.
So now you are all into GB and Starmer thumbnails ? Ignoring the damage done by the previous administration ? C ya.
Ah yes, classic :) we don't like the data so let's adjust measuring method so the results are what we want them to be. We have done that in Eeast Europe many times in the last decades. Here is another tip: If you want to fix the budget hole you just create some form of agency and transfer all the debt there, or let's say put NHS on debt and not count it as a budget, you'll be able to say that budget is ok, it will also skip all the safety guards regarding debt/gdp ratio.
Was waiting for a property market update from you 🫡
The UK is a tax hell. Get out while you can!
I like it here so I'll stay, thanks.
The point is, it's still going up, year on year.
UK housing is expensive if you are unfortunate enough to be paid in pounds. Less so in a lot of other currencies. In 2007, a UK house was about £200,000 or about $400,000 US. In 2025, a UK house is £300,000, or about $360,000 US. So, great news if you are Blackrock and other finance houses lobbying Reeves for more presence in UK residential...you pay less now than 18 years ago.
Housing might fall in cost for foreigners, as sterling weakens further, but not sure I see big falls for local buyers.
I just looked at 3 main site selling homes... 700,000 was the least expensive "House". And not even a house... it was literally part of 10 other houses....
@@Clutch275 Perhaps in London. Most places are nearer 300/400k.
All I know is its a lot more competitive than 25/30 years ago, and that is not going to change. The indians are here to stay and put down roots, not like the eastern europeans who would generally save some money to build a house back in poland and not distort the UK housing sales (if not rental) market.
Even where I worked last year, where wages werent much above minimum wage, £14-15 per hour for most, you had literally hundreds of indians come to this country to work there, and within 12-18 months they are already buying houses.
They do the standard 35 hours a week, £600, plus another 35 hours of overtime, a mix of 1.5 & double pay, so another £800 in overtime, typically earning £1400 a week (before taxes). That is bottom end, entry level warehouse jobs. So after christmas bonus + cost of living payments, easily grossing £70k a year. (overtime is plentiful) Thats one warehouse for one company. They all have side hustles for every minute they are not working their main job. Uber, deliveroo, even wheeling and dealing on marketplace.
For the first year or 18 months they are here they room share, carpool literally live on pennies a day, putting everything towards a sizeable house deposit, whilst the British youth, whining about house prices, go off travelling & rarely bothered turning up for overtime.