UK Housing - Worst Value for Money in the World?
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- Опубліковано 16 тра 2024
- A look at the problems in the UK housing market, is it really the worst in the world? Why prices are so expensive and whether there is any hope for improved affordability.
00:00 Intro
1:00 Home Ownership Rates
2:10 Why the Young Can’t Buy
3:40 Prospect of House Price Falls
7:00 Supply of Housing
9:30 UK Supply vs Global
10:40 How UK Compares
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as a 26 Y/O software engineer, it seems like the best financial decision i can make is to simply leave the country
YEP - it 100% is - I live in Bulgaria - there is a bit S/W industry here or you could work for western countries on contract self emplyed. My rent is £130 on a beach side apartment in Burgas - feel free to look it up and tell me if your location is as nice - OH and 300 days of sun a year. 21C here today and Im about to walk my dog in shorts and shirt.
There are LOTS of places you can have a great life - you dont need to be stuck in the collapsing UK
I live in Spain where 1-bed oceanview top floor apartment costs EUR 200k and summer 365 days a year
I'm hoping to retrain and move abroad as well, if I was working in tech son, I would have moved a long time ago
@@john_dx correct got myself a 3 bedroom house 10 minutes tram from manchester city centre for 220k
It sounds selfish to leave your country if some problem comes
Because so many people overpaid for homes even while loan rates were low, I believe there will be a housing catastrophe because these people are in debt. If housing costs continue to drop and, for whatever reason, they can no longer afford the property and it goes into foreclosure, they have no equity since, even if they try to sell, they will not make any money. I believe that many individuals will experience this, especially given the impending mass layoffs and rapidly rising living expenses.
I advise you to invest in stocks to balance out your real estate, Even the worst recessions offer wonderful buying opportunities in the markets if you're cautious. Volatility can also result in excellent short-term buy and sell opportunities. This is not financial advice, but buy now because cash is definitely not king right now!
Soon, cheap homes won't be cheap anymore because prices today will look like dips tomorrow. I think inflation will cause panic until the Fed tightens its grip even more. You can't just pull the band-aid Off half way. Booms and busts are the ups and downs of the economy, and they will affect any investments. If you are at a crossroads or need honest advice on the best steps to take right now, it is best to get counsel from a financial expert.
I need a guide so i can salvage my port-folio due to the massive dips and come up with better strategies. How can one reach this advisor?
Finding financial advisors like ‘vivian jean wilhelm’ who can assist you shape your portfolio would be a very creative option. There will be difficult times ahead, and prudent personal money management will be essential to navigating them.
interesting! just copied and pasted her full name on my browser, found her site at once, and skimmed through her credentials, very much appreciate it.
Im a millienial professional and im actively looking to leave the UK. It's ridiculously expensive, you don't get much for it and seems like the government is hostile to us in all important policies (Brexit, housing, tuition fees, workers rights, bills, childcare, etc). I expect there to be a bit of a brain drain.
Already left to Spain
@@andreo3854 nice. I'm arranging to move to the Nordics. Will be nice to live in a functioning state.
I am not British but came to London in 2019. Left for Spain after 3 years of hard work, too. I did not see myself stand a change in the rat race to ever own a tiny moldy home there.
@@paulbo9033 Denmark and Sweden both have immigration sceptic governments.
@@georgesdelatour it's okay, I have a route in. Immigration sceptic doesn't mean no immigration.
I'd also point out it's the same dynamic in these countries as it is in the UK i.e. they can't function without a healthy supply of foreign workers so they can give it all the rhetoric they want, reality doesn't care.
Speaking about value for money, we should also take into consideration the quality of homes, which in UK is so poor. It costs a fortune to purchase a new property which requires repairs just after being bought. What a nonsense…
So true. The quality of new builds is just …
yeah exactly, you’re paying for the privilege to just maintain these old crap houses haha, many which need substantial changes to even be reasonably livable/attractive
It's probably the greatest scam in history, after central banking.
Mould eaten properties with poor ventilation and insulation properties. Uk building standards are a joke. Most of the houses like that in Germany fe would be marked as not suitable for living and mark for demolition. Yet here the same houses are sold for £250k+ and rent end for thousands. Absolute joke.
All repair works are covered by the builder, plus extended 10 year structural warranty. If you don’t push, you won’t get what you are entitled to. Simples 👍🏾
You’re not looking at the elephant in the room. Council tax.
An outdated unfit for purpose tax where a person who owns an 8 million pound property in Battersea power station pays the same as a 2 up 2 down homeowner in Hartlepool.
Also the general tax system is unfit for purpose. Sunak pays less tax by using various offshore schemes and capital gains than someone who works full time and earns a living wage.
That is wrong.
That's not true - an 8M property in Battersea would be in band H, while the small terraced in Hartlepool probably in band A, perhaps B. What you can argue is whether the tax is high enough on the hugely expensive London houses, but then many of these are not inhabited by millionaires but by ordinary people. A 3 bed house in London hovers around £1M these days. My view is that we should be bringing back rates, where it's the size of the house, not the value, that is taxed.
The elephant in the room is immigration mate....not the council tax. Importing 500k people a year whilst building v few houses....
Council tax is a mess and needs to be reworked to more aptly target wealth. I.e. The tax is a % of the property's value. It makes it more affordable in poor areas and more expensive in wealthy areas.
@@tancreddehauteville764
How about scrapping the CON tax altogether?
Council tax should be divided up equally between working age people in any particular town or borough. The current property tax is completely irrelevant and a nonsense. Properties don't cost councils money , people do. 1 person in a 2 million pound house costs no more or less than 1 person in a two hundred thousand pound house. Also the property value has no bearing on any person's ability to fund the charge. If a town costs a million pounds a week to run , and has a million working age adults, then everyone pays £1 a week. There's no other reasonable solution.
I am private renter and have been for over 17 years. It's not that I want to, it is that I cannot afford a property. Correction: the properties I can afford today are the ones I needed 10 years ago, i.e. a one bedroom. The property I need today, is the one I cannot afford i.e a two or three bedroom for me and my family. I have basically come to believe that this country and those in control, from gov to landlords just don't want me to settle here, they want to take all my money through rent and taxes until I give up and go home without a penny. Sorry for the defeatist post..
You aren’t alone. A lot of us feel the same; like the state is just trying to strip you instead of rewarding your productivity (in both working and raising a family). Looking to leave the country ASAP. What’s the point buying an expensive home only to be fleeced for driving, mugged of your watch on the way home from a restaurant and charged £120 for a family movie. No thanks.
20k invested in the Nasdaq 17 years ago returns 150k today. that's a hell of a deposit.
@@lawLess-fs1qx Which millennial or gen z had 20k to invest 17 years ago?
Education, plus higher paid jobs and smart investments are the way to go. Simples 👍🏾
You can thank the Bank of England for your predicament : ridiculously low interest rates , and the printing presses making all those pounds was never going to be a good idea .
My son was a school teacher in Lincoln, he paid £600pm for a room in somebody's house. He's leaving for Bangkok where his take home pay will be less but his lifestyle immeasurably better.
He should teach in China , free apartment plus good salary for teachers
Tell him not to. The South East Dream dies very quickly for foreigners (I am from the region). It’s all fun and games as a foreigner until you realise it’ll never feel like home
@@shosc16 He's only 24, left home at 18 to another city, he'll be fine.
@@shosc16home stops being home when it's hostile, expensive and leeching off you to subsidise the lifestyle of the rentier class.
I'm lucky enough to live in a council house at 26 years old. if it wasnt for that, i'd be screwed as i cant access the hostile private rental market. it's so dire I'm looking to leave the country as soon as i've saved up enough. it's not worth trying to build a life here.
So you have enough spare income to 'save' while the state subsidises your Council House! I don't think this was the reason Council Houses were provided so that you could start a slush fund for your eventual emigration! This is everything that is wrong with Britain!
Maybe obvious already but my wife is applying for an Irish passport based on grandparents because it's much harder since Brexit to live or work outside of this country in Europe, so worth considering if you have family from another country in the EU, see if your eligible for their passport.
Another issue might be WHERE the new houses are built. Oxfordshire is one of the building places where one US-style suburb after another is being built. One or two exits on an existing road, single or semi-detached throughout, with no access to public transport - especially rail - and usually of shoddy quality. No shops, surgeries, childcare, and typically long NHS waiting lists to get onto a GP roll. School places are generally far away due to overloaded local schools. The objective is to maximise the developer's profits, leaving bland, cookie-cutter, poor housing that can only be used in a car-centric way. Realistically speaking, each household needs to add at least two cars operating on roads that were at capacity 10 years ago. Where is medium-density housing served by public transport and walkable/cyclable amenities ... which would be more affordable to get young people at least on the housing ladder?
this is depressingly accurate. 0 investment in cycling infrastructure and the roads are beyond disrepair. But the developments keep coming and the cars must follow because no one has another option
I don't think it'd be popular, but I think that golf courses that are otherwise surrounded by urban or suburban land use should not exist. Build dense, townhouse style housing on them. They're already close to existing infrastructure. See Heaton Moor golf course in stockport as an example of what I'm talking about. Already close to school, frequent bus routes, train stations, amenities etc
I grew up in Oxfordshire. Moved to the European mainland in 2016. When I visit now I’m shocked by the construction that’s happened. It’s either small high end premium houses or poor quality estate type building. No thoughtful development. Knee jerk responses to a problem that needs careful planning and integration.
In 2024 England is still a feudal country, and a British said so: Guy Shrubsole ("Who Owns England?", 2019) « Half of England is owned by less than 1% of the population.. But the weirdest manifestations of enduring aristocratic influence are to be found in the villages where feudalism never died. »
Good book isn't it - a real eye opener. You forgot to mention that 92% of the land is out of bounds to the masses.
They just re-branded it "trickle down economics".
Nope. Its designed that way, both parties like it that way, they are beholden to the money markets, wealth is going up to the top, and no voting makes no difference.
So true - A lot of people just dot get this 😞
I literally just commented about this wealth transfer. People don't yet see it.... but in 20 years it will be blatantly obvious. The 90% will own nothing and be happy.
@@Decrepit_biker Yup the rug is being pulled out from under us. I dunno why more people don't see it? Maybe its the media lying for government or the people are in shock that our own leaders are stuffing us!!!??? Who knows??!!!!
Time for a revolution. This system doesn’t work. Basically slaves for the wealthy. No different from blacks being enslaved in America. Only difference is, this is classism not racism.
I wouldn't claim both parties. The Tories received 20% of donations from property developers, Labour don't. Tories have had 14 years to wreck the housing market for their own gain. Labour has not been in power for 14 years are were last seen taking the lead in correcting a global banking crisis created by US mortgages.
I live in South Devon, one of the worst places for lack of supply of any type of home, bought or rented. And the obvious feature here is the massive number of second & holiday homes (Airbnb etc). The priority appears to be to provide holiday accommodation over permanent living units. Some justify that by pointing out the income for the area from holiday makers. The balance feels off around here, and those holiday home owners will fight against any development to provide more housing for local people.
Keep voting Tory and applaud the spectacular failure that is Right to Buy
Airbnb is causing housing problems in many places across the planet.
trouble is those moving from london and birmingham to get away from immigration
@@stuartburns8657 they won't be doing that for a long time. South West is turning yellow ( or orange)
I'm also from South Devon and feel the pain of high rent and low quality housing. I see lots of barren land that could easily be developed but there is no incentive from the government for it to be developed.
Why anyone (family aside) who is under 35 would wish to stay in UK is pretty much beyond me. Couple of supplemental observations. London House Prices have largely been stagnant since 2018 - it is just not true to say that they are up, though they grew hugely in the preceding 10 year period (2008-2017). There are so many headwinds here, both economic and societal. GDP per capita simply has not grown (much if at all) since 2008. All that has grown is tax, debt, and deep societal divisions. Further, there is genuine lack of land France and Texas are 5 times bigger than England which has 85% of the UK population and circa 75% of England’s population is concentrated in under half of England. You get the picture. Finally there is immigration which has been huge under New Labour and the Tories and we simply don’t build enough to house the growth, let alone address any backlog.
You mention france... have you seen the immigration there?
I’m 26 living in London. Because it’s the only place in Europe that has work that relevant to me because the rest of Europe is realllly bad at it.
Any US city/ state can’t be compared cos it’s so car centric that I’d rather have a walkable city
Everywhere has its downsides… where else is there to go that doesn’t lack in areas where the UK doesn’t?
Stagnant in real terms which just means they are as expensive relative to income as they were in 2018 - i.e. still very expensive
Agreed - just wanted to make point that London market hasn’t gone anywhere for last 6 years
I'm a millenial, born and bred in the South of the UK and I hold a master in law. I will be taking my skill, expertise and experience out of the UK due to the housing crisis and cost of living crisis. Luckily I can work fully remotely. Best of luck to those that stay.
"skill, expertise, experience" lol
Good ridance....far too many blood sucking lawyers in Westminster and Britain as a whole.
Good luck. We already have too many lawyers. You lot do a lot to make living in the UK expensive.
Whip lash claims.
Employment Law.
Immigration law where you act for government and immigrant with tax payers footing both legal bills.
NHS forced to pay hundreds of
million to lawyers to defend agains actions from other lawyers.
Planning issues see lawyers acting for developers against lawyers employed by the state.
Pointless public enquiries carried out by overpaid lawyers who take years and cost us millions to reach a conclusion any sane person could have achieved before you started.
Please go and take the rest of the blood sucking lawyers with you so we can start again.
Good luck with your new venture. Don't take any notice of the stupid comments. You do what you feel is best for you.
We'll survive.
I managed to buy and pay off a flat before I was 30. But I had massive help from my grandad and my mum and I lived an extremely modest lifestyle and worked hard (no car, no holidays and no expensive material things). I was extremely disciplined and driven.
Looking back on it I don't know how I did it. But it meant I can enjoy life a lot more now. And I'm so grateful to my past self.
The sad thing is I don't think people should have to do what I did to own their own home. And every year it is becoming harder in the UK.
Since I bought my flat 5 years ago its value has increased by 20-30 percent. It's only getting harder for the younger generations. They deserve better ❤
There is a clear need for a mass council house building program and the end of 'Right to Buy'. The market has failed miserably but the Lib-Lab-Con Uniparty still persists in old strategies and are out-of-touch with peoples' needs.
Corbyn was offering that but the media are so biased in the UK no way was he going to get elected.
Agree
I learned yesterday that Singapore has a 60% tax at purchase for foreigners and 65% for an entity or trust. This needs to be replicated in the UK.
The UK is owned by foreigners already
You would have to overthrow the political class in this country to get it through.
We also need a special tax for foreigners (Chinese, Russian and Arab oligarchs/royals etc) who already own properties in the UK. And quotas limiting how much can be owned by foreigners within a particular area.
I agree if you mean foreigners who are not living, working, paying taxes in the UK.
@@annepoitrineau5650no, for ones here.
As per Singapore.
We can't have our domestic housing market open to global investors and migrants.
If migrants can't find a house then they can go home, but this IS our home and we have nowhere else to go.
I used to teach housing development and 30 years ago it was clear we do not build enough new houses. I live in a classic commuter village just outside Chester where there has been no new build since the mid 1980s. Depressingly the people who live here are vehemently opposed to any new build, especially, horror, of anything affordable for people on lower incomes
NIMBY
@@seawavechau Erm, completely the opposite if you can read what l wrote.
@@jontalbot1 ain't affordable homes for lower-income ppl bringing down the property value of the area?
@@seawavechau Affordable housing is a euphemism for houses developers are obliged to build as a condition of gaining planning permission. They are only affordable in the sense that they are not sold or rented at full market value. Developers do not like this as it is a form of disguised tax and from their perspective it is the governments job to provide affordable housing and l agree with them. They also believe that people buying at full market rates do not want people in affordable housing ( which is often not very affordable in any case) near them so they instead offer Councils the option of having them built elsewhere. As to the effect on resale prices, it is hard to tell since there are many factors which determine the price if housing such as school catchment, proximity to job opportunities, local income levels, location in a town/city/village, which part of the country, condition of house etc etc
The housing situation is so incompetent in the UK,nearly always focusing on the short term and on demand by politicians , it is tempting to think that housing could be used as a factor for social control. It focuses the mind as it is such a basic need. If it was easy how much different would attitudes be to life in general.
Good thinking.
I'm a millennial and I have spent more than 50 to 70% on rent at times in my life. And these aren't expensive places.
Life is just tough in somewhere where only 55000 people own over 85% of all assets and land
Its Terrible! Where did you live spending that amount on rent btw?
Where did you get that statistic from? I'm not questioning it's validity, I love being able to quote farcial statistics like this. Just shows a fundamentally unfit system which does not work.
+ millions of immigrants every year
@@davestevenson9080 We need those immigrants because of our demographic trends. e.g. diminishing number of people of working age. Otherwise the economy will nose dive.
@@kevinu.k.7042The economy has been nosediving for the last 2 decades, rampant immigration is not the answer it is just adding to future problems. Better if investment was put into development and infrastructure not static not poor quality new builds.
This country's sole purpose at present is to con you out of your hopes & dreams.
Once you get to your early thirties you realize it's never going to get any better & the elastic kind of snaps inside of you.
My message to anybody young is to leave & to make your living abroad. Hope to return in ten or twenty years, if anything ever changes.
This is no country for a young man or woman.
Watching this and looking around it is astonishing that this is not treated as a seriously critical issue, but there again the government seems quite happy for children to be left poorly fed.
The government want it this way though. Planning permission laws are the reason why houses are so expensive and anyone who doesn't believe me go on right-move and notice how an acre of field land is £10K then an acre of field with planning permission to build a house is selling for £400K.
@@arranf Yes.
Land speculation. The Crown Estates has been big into this for years. It goes like this.
Find land for sale where the Local Authority say that it is suitable for planning permission.
Buy it with no permission.
Sit on it. If it is big enough, rent it to a farmer while you wait.
It is British culture to always understate the nature of a problem and not be too serious or ‘intense’. So serious issues are casually joked about. Ask any Brit about the state of the economy and they’ll say something like it’s ’not great’ when the situation is actually dire. Not just the economy and housing, but rail, mail, utilities/energy, healthcare, water… the list is endless.
The French don’t take BS from their government while the English voluntarily seem to lie down and allow their politicians to walk all over them, and not just them but even their children!
@@thecrimsondragon9744 As soon as someone tries to generalise about a culture in such a caricatured manner, the truth leaves the room.
@@thecrimsondragon9744 it's quite impressive the US settlers had the guts to fight for independence when you think about it.
The fertility rate is less than 1.5 children per woman.
One would expect the population to be falling and with it the demand for the available housing.
But for some strange reason the population is increasing, and demand for housing is outstripping supply.
The Home Office issued 1.4 MILLION long-term visas last year, which corresponded to net immigration of 740 000.
That's an extra 2 000 people looking for housing EVERY DAY !!
Does anyone wonder that there is a housing crisis?
Great news for landlords who can keep upping rents faster than inflation, and evicting the previous tenants if they can no longer pay the ransom.
It might be better if the UK became a slowly declining backwater where nobody wanted to move to. Unfortunately there are really bad countries out there where even the UK looks favourable, and while politicians still want GDP to be maintained( ish) then mass immigration it is.
@@sfactory8253it is a declining backwater! No growth. Those who wish to live here will soon be aware.
Half those visas are for foreign students paying eyewatering fees. The rest are workers requested by your corporations.
I agree with everything but I'm a landlord and it isn't like that , most landlords are leaving coz it's misery with very little money gain , the government and rich are taking your money
It would take 20 years for decline in birth rates to have an effect, also UK population growth has been relatively constant and inline with the rest of the developed so why dont they have the same problem. German added a million people to is population in year and yet the video showed there house prices dropped by 25 in real terms and 35% in relative terms so how can immigration be the main factor? And holland has twice the population density of the UK
In East London ex RTB slummy one bedroom council flats sell for £300,000.00 minumum the average working class wage seems to be around £30,000pa if you are lucky
Broken Britain.
6:13 Comparisons with other countries don't help much. The French and Germans, for example, earn far more than the British and a comparison with the German market is like comparing apples and oranges. German houses are also newer and very well insulated. Only 50% heat with gas, in the UK it is almost 90%. So, additional costs burden Germans less than Brits. Germans are more inclined to rent than to buy, and rental apartments are also in very good condition. Since Germany's population is constantly growing (now over 84 million inhabitants) instead of shrinking as predicted, there is of course a lack of housing. However, the cost of renting or buying is lower than in the UK.
it's cos Germans hate oligarch banks and oligarch companies controlling their housing supply.
so they passed a lot of laws preventing them from exploiting the German people through housing and inflation.
Grass is always greener on the other side. Cost of renting in Germany varies greatly with location. Some places have become unaffordable.
@@comdo831 way worse in uk
@@comdo831 But in Germany, despite the larger population, there are fewer poor people. The grass in Germany is much much greener than on the island.
The richest 50 families in the UK hold more wealth than half of the UK population, comprising 33.5 million people. If the wealth of the super rich continues to grow at the rate it has been, by 2035, the wealth of the richest 200 families will be larger than the whole UK GDP.
It's a toxic formula of broken housing supply due to planning rules and developers limiting supply due maintaining prices of empty housing stock, immigration, no rent caps as governments are reluctant to intervene in free markets, sold off social housing offering no substitute as a form of managed rental prices. Shelter is an essential need on Maslow's hierarchy - with such instability on whether we're going to have an affordable bed to sleep in at the end of the day, no wonder UK productivity is so low. It's social- engineering our society into a permanent decline with households infantising young adult to stay with mum and dad, reduced child birth and exodus from inner city areas at a time when the only wealth is in inner-cities. High house prices lead to asset owners to extract any spare cash from the economy either through rents or mortgage interest which leads to no desire to invest in other forms of growth to earn money. The rich just sit on their housing portfolio and reel in the cash.
Housing has never been a "free market" because it is dependent on government controlled interest rates and credit regulations. It's a fraud.
Germany have 43million homes compared to 24miliion in UK .Germany have 1 dwelling per 1.9 people UK have 1 per 3. If we wanted to be at same ratio as Germany we'd need to build 9million more homes. Last year we built 190k while growing population by 700k.
Yes, crazy. Huge shortage in UK.
@@user-kq9hr2hk3c there are landlords that own 300 homes, and there are millions of old people who live not in one or two bedroom houses but 3 , 4 etc. ones and they can do nothing about it. House is a death trap for many.
@@swojnowski453 agree. Many older people live in houses that are too large for them to maintain. However, the alternative are the much hated retirement flats. No control over increasing service charges. We need smaller freehold homes. Lots more.
@@user-kq9hr2hk3c Here the stamp duty is also a stupid thing. Why would you have to pay a lot of money just to move into a smaller house? You sell a bigger house and you buy a smaller one. It costs you so much. So it's better to do nothing and stay in the bigger house. Absolutely stupid system.
@@gpsoftsk1 Yes it is. Profitable for some but for average person, diabolical system.
I rent a shitty 2 bedroom flat in South Wales for £400 a month, drive over an hour to work in Bristol most days, and I make it work...
It is possible, but its not fun...
400 a month for a 2 bed is quite reasonable, when I was renting my bedsit was 600 a month and one of my friends was 750
@@miyagiFTNS Yeah, it is reasonable, but most people would not be interested in driving over 2 hours every day.
I am not complaining, which is why I have lived in this dump for over 8 years, I count myself fairly lucky.
@@SubjectiveFunny that's the right way to look at things, it's all about the pros and cons. Unfortunately not everyone looks at them.
@@miyagiFTNS Indeed.. Have a great weekend!
@@SubjectiveFunny you to
It’s crazy, I live in the south of England so an expensive area. I’m 26 and earn around 31k a year, my partner earns around 34k. So for 26 years old we aren’t earning loads but certainly not doing too badly for our age. Affording a deposit, let alone mortgage payments once we do move , simply isn’t possible while also paying £1300 a month rent on a 1 bedroom flat.
Unless you have help from parents I don’t know how anybody in the south will get on the property ladder anymore unless they earn far above the average salary.
House builders have no incentive to achieve housing targets only to maximise profits. In the immediate post war period and associated baby boom, house building was seen as a necessity to rebuilding the economy. In recent years handing out gov (both Lab and Con) discounts for first time buyers only stimulates prices while benefiting very few. It would be more beneficial for any gov money to go directly into house building. Too many big business lobbies in gov and political dogma throttling any real solution.
Sounds easy however housebuilders are often blocked my the nimbies, over regulation, the market uncertainty, high inflation in materials. They have to get survey after survey on things like soil analysis. You wouldn’t want to be a housebuilder, check their annual profits, they’re barely making anything.
Fault is the government. They have failed to level up and think for the long term, whilst adding 10 million to the population in 20 years
income to house prices at over 8 times income but that banks won't give you a mortgage unless it's 4.5 times...
Thats the policy, inflate house prices, most politics have property portfolios.
And they made laws to have minimum tax on property profit.
They have increased demand by having extreme immigration and reduced supply by building less and more expensive houses
end they will be ejected this year because a substantial part of their electorate lives in care homes now and cares nothing about voting any more. They have a good reason, the care has taken pretty much all of their property wealth already. Never too late to learn you have been conned, but still can fight back while alive, even if it takes doing nothing at all ;)
Excellent content, well researched and presented.
Britain is "" Great place to be in "" only because you have to. My first Choice is. Spain 🎉🎉
UK houses are very small per square meter, had visitors from India first time they came to London, laughed and poked fun at the UK houses.
What is the average size of an average UK house?
@@Stinschen
Australia 2303
New Zealand 2174
United States 2164
Canada 1948
Denmark 1475
Luxembourg 1359
Greece 1356
Belgium 1293
Netherlands 1261
France 1206
Germany 1173
Spain 1044
Austria 1043
Japan 1023
Ireland 957
Portugal 902
Sweden 893
Finland 880
Italy 872
United Kingdom 818
@@Stinschen Ironically Luxembourg one of the smallest countries in Western Europe has the second largest house size in Western Europe.
@@32ukneil Thank you! I take it it is feet and not square metres? :)
@@32ukneil Ahh . But you're not taking into account the salaries of all those buearaucrats and government employees . Luxembourg has the highest median pay in Europe
Granted at its most rudimentary level current UK housing supply, one could and some do argue strongly, is actually entirely sufficient to meet current demand, its just who owns a disproportionate amount of that supply and gets to control the finances associated with it.
The 'drastic' 20% plus fall in house prices in Germany to me actually points to a far healthier, functioning market than what we're seeing in the 'plate spinning' UK.
Ultimately more healthy economically, socially and politically.
Got our mortgage in 2016 which was 104k. Nearly £500 a month for eight years and I currently owe £95,727 yet I have actually paid close to £48k.
"Buying is a great investment" I am told. I assume they mean for the bank? I dare think how much they will have rinsed me for in another 20years..
Is that due to interest then?
So you've learned how mortgages work? Congrats?
Mate all of this would have been in the mortgage paperwork, you'll always be paying at least double on payments on 30+ years agreements.
@alexgreenwood3179 obviously and yes. I am agreeing with the subject of the video about how the whole thing isn't that good of a value
Mortgage means death grip
You'll end up paying about 70k interest on the principle - Total cost will be around 180k
Quality content - thanks
Originally from Poland I can say that if offers much better quality of life than the uk right now, which can be shocking to many. Ah, the tax is also 12 percent, not 45. Free higher education, free health service, even child benefit is 2 times higher than in the uk 😂
Why are you here then?
@@StevenTaylorDrums can’t move out due to personal circumstances
Holiday Let's have been a disaster with so many houses unavailable for the purposes of being a home for a family. The Govt needs to clamp down on them further. Whole communities are deserted during the winter in Cornwall etc. Houses need to be homes first and foremost.
I moved to UK in 2011 from Pakistan and i don’t see difference between Both governments. The UK one is bit more sophisticated in their dirty work in shafting their population. Last year Home office distributed visas away like candys to everyone.
Economic investigator Frank G Melbourne Australia is following this informative content cheers Frank 😊
A century old planning permission system, coupled with a century old leasehold system have created this problem. Neither party wanted to change it in the last 40 years. Perhaps Labour will get rid of leasehold in the next term.
No money to get rid of it. Will stay the same forever. Pension funds and landlords need predictable income, you won't get it at FTSE ...
You're also missing the fact that due to the unaffordablity of housing relative to income, the sale of properties increases the flow of wealth to the very rich who are the ones who can actually afford the properties. They then rent these properties out, removing them from the market long term. This has even begun to bite the lower end of the landlord market, where most of their properties value is mortgaged as they find their margins reduced. When these lower level middle class landlords sell... these properties are again hovered up by those with large liquidity, IE ... THE MEGA RICH, again transferring the wealth from the poor and middle classes to the very very wealthy.
Yep. It's multiple home ownership and the size of the rental market that needs to be addressed.
The rental market ballooned in the last 30 years plus Mrs T put the kibosh on social housing builds along with her RTB policy.
We are where we are by design NOT by accident.
@@gerhard7323 there are landlords in this country that own 300 properties and agitate for the gov to build more properties. Everything above 2 properties owned should be taxed exponentially. third property = council tax ^ 3, fourth = council tax ^ 4th and so on.
As a white collar worker, my grandfather bought a new 3 bed semi in Hampshire for twice his annual salary in 1929.
He had a wife and two kids.
That house now would be 8 times the equivalent salary.
And on average the current house price is 13-15 times the annual average house price
This issue can't be truly understood by only looking at the "supply" side of the equation. We need to understand why demand for housing is increasing so rapidly and have an honest conversation about how unlikely it is that the rate of house building could possibly keep up with that.
On 70k a year salary and can only get a 300k mortgage when a decent home in 600k 🤦♂️ western culture and economy is going downhill. I wonder what’s next
Thank you Sir!
Couple housing affordability with net migration and a birth rate/ total fertility rate of 1.49 well bellow the 2.08 needed to maintain the population the UK's on the fast track towards longterm stagnation/ recession.
Japan, but without the industry.
There is no political incentive to fix this. Politicians and the boomers who do most of the voting have and continue to get very wealthy from property. Greed is a hard problem to fix
Problem is, now the society is eating it's own young. Look at the statistics for shares of wealth for youth (Millenials,Gen Z) etc. It paints a grim future picture. The leaders and politicians of England are impoverishing their own young. Like a parasitic animal that starts cannibalising it's own. You don't need to be a big brain genius to see this is going to crush the nation within 10-20 years.
Your videos are brilliant btw! Religiously watching them at the moment!
People are living like ants here in the UK. In fact, ants live better.
I have always said private renters are the ones that are getting hammered economically here in the uk, at the same time landlords in the private rented sector got hammered by liz truss and tories medsling with the economy. Poor political choices on the economy and fiscal policies, plus not building no where near enough homes has basically killed aspirations to buy a home or an apartment in the UK.
A political system which can't provide reasonably priced accommodation for it's people, has failed.
This isn't a new failure, it's been escalating for 70 years and all three political parties who have governed, are responsible.
I'm a 50yo who owns a small mortgage free property. I was going to say that I've made it, but I haven't, because where I live has above average crime, and I can't afford to move.
I despise the blight on people's lives that has occurred through lack of housing. Justice is coming.
Insightful comment. But where's the justice coming from?
@@sfactory8253 unless some party like Reform UK that might actually do something about these problems, nothing is coming and unfortunately all the mortgage / rent slaves are too busy paying their mortgages and rents to think to vote for a party other than the 2 that want everything to stay the same.
The best financial decision it seems is to leave thus country. Would not be surpised if people realise this in the next decades.
High housing costs and low salaries for my field (engineering) in UK. I switched to the USA and tripled my salary and at the same time housing costs dropped considerably. You can't find good bacon or pork pies for any price though; so there are some negatives.
I live in the northeast of England and house prices have doubled in the last few years. If there is another housing crash, which could happen, people are going to be left with negative equity and will never be able to sell their houses. That and the sale of leasehold properties sold now will cause the housing market to crash.
Without a shadow of a doubt the worst value for money on the planet. Even in countries that are theoretically significantly poorer than the UK, an average house looks better than houses of excecs in the UK.
Few mentions in the comments about moving out of UK. Could you please discuss brain drain in more detail and how data looks on that front?
what brain drain, who needs british graduates with their diplomas bought from businesses called universities ...
Seems our generation is doomed. Left my country only to leace this one too
House prices are up in the UK again. Prices are predominantly driven by demand and affordability here in UK, and that means its less about what people are willing to pay. So use monthly repayments as the guide to house prices. If interest rates fall, house prices will go up again as the repayments will fall a bit. I know this would seem obvious to most, but just see people saying things like house prices are stagnant. Low interest rates have done nothing to help house prices, and neither has help to buy imo. Help to buy helped developers rather than buyers... perhaps on a micro level, individuals were helped, but the big picture just as many got locked out as got brought in.
Great video 👍🏼
As someone trying to get on the property ladder who is just lookin for a small 1/2 bed flat the options are very slim. Of those that are available 20%-30% have a long standing tenant and another 40% are cash only. The rest are either in the £170k range or there is no open house and they will not let anyone in to look. There is a huge housing shortage for entry level properties. And that's before the oh its going to go to auction its £500 if you wish to participate but the last 3 times its not sold so good luck....
What about the energy efficiency of the UK houses?
just look at drain pipes on the walls, they will tell you everything what can happen if one day temperatures drop to -20 degrees centigrade ...
300,000 - 500,000 houses per year. So we're talking about building cities sized from Nottingham > Liverpool, each year to keep up with demand. Plus the projected increases in migration and the aging population; where are the jobs that'll pay for the minumum saleries needed.
9:34 no france is not a "similar " sized councry. They have twice our land mass and about the same population SO half the population dencity.
It’s worse than that. England is the main nation in UK, and the most populated, 57 million people living on a 130,000 sq km area: 438 per sq km. France (continental, not including overseas departments) is 4.25 times England’s area: 552,000 sq km, 65 million people: 118 per sq km.
@@happyslappy5203 yes I was comparing with the whole of the UK. 280 per s/mile against 110 in France. If I remember right.
My fix is to stop increasing the population by 600-800k a year. Stop pandering to employers who want pay the be the same as it was 15-20 years ago. Start training our own people rather than importing them. And get pay increasing at inflation rather than trailing it.
40-43k is where the average full time wage should be. Not 35k
I feel like this is misleading? The total amount of land in a given nation seems a bit besides the point given the human tendency to congregate in cities... and French cities tend to be denser than UK cities? Even the UK has a lot of nearly-empty land that people could move to if they want to... but that is never where the jobs, shops, amenities, and communities are going to be found, so people want to live in cities, so what matters is urban density and urban housing capacity.
@@wight1984 I am sorry but the fact is france has 110 people per s/mile we have 280 people per s/mile.
If 280 per s/mile is not to much, what's your limit 400? 500?
I am sorry but those are the facts.
Yes I know people "mass together " in cites and towns. But the fact is those cities and towns have over twice as much room to "Expand" in to, in France.
Let's face it the main reason most of them do not want to stay in France, Is that the french don't encourage them the way the UK dose.
To use the old analogy. The French have "taken down the bird feeder"
@@patdbean Again, it seems that you're focused on national population density, and not urban population density.
About 8% of UK land is for developed use, of which 2% is housing. The problem isn't that we don't have enough land. It's not even that we haven't given ourselves enough freedom to sprawl outwards (although the green belt restrictions don't exactly help matters). The problem is that our cities aren't as dense as other European cities. For example. the population density in Paris is much higher than in London.
When we compare French cities to English cities, it becomes very clear that the UK lacks the high density city centre areas that house a lot of people in equivalently sized cities, and that the UK has invested in too much low-density sprawl instead, which has caused the housing capacity in our cities to be lower than what might be otherwise expected. That's not a lack of land issue.
For example, compare the density of Marseille with Leeds: i.ibb.co/52K1bcT/Fplp54s-Xs-AIk-Cf-U.jpg
Or London with Paris: i.ibb.co/DRXDvF3/london-vs-paris.png
There's huge gains to be made in housing capacity just by increasing the housing capacity of existing urban areas to European levels.
Another insight to add which is relevant to most places outside of London; I have just abandoned an opportunity to build a house on a small plot instead of buying. A typical nothing fancy 3-bed 100SQM house pre-pandemic cost in the region of 110-140k to build. To my horror this is now 210k+ with most people quoting around £2100+ a SQM in my area. This is not even using a main contractor.
I simply cannot see house prices coming down to any good level now especially since we are in a time where people who don't own development companies may find it is now cheaper to buy out of current stock instead of build, and actual developers profits must be heavily shrinking due to material costs, increasing labour costs and typical bureaucracy issues. I think people want to see moderate houses for 100k again but you simply cannot currently build a house for anywhere near this cheaply anymore.
There will have to be an answer to this before the mass building could grow legs.
How many uk MPs are Landlords?
UK houses are built like shit as well. That was my second biggest shock after moving here following their questionable size. I consider them 2-story garages moreso than houses. No insulation, no damp barriers in the foundation, no basements, no attics that are strong enough to actually expand into, external doors with internal door locks, uninsulated hotwater plumbing.. the list of sins is endless
Another problem is most of the new builds are big blocks of scam leasehold flats and they usually never solve the housing issue. Most of them are being bought to be rented privately and after 15-20 years and a few changes of management companies they start to deteriorate.
5:20 - no chance with +700k net migration PER YEAR
I wonder if those price/income ration graphs would change if you took say London out of the UK or Lisbon out from Portugal? not that they should but I think it would be interesting to see
I have lived in both Uk and New Zealand. Properties in NZ are exceptional value compared to UK. You get x3 the space & size for 3/4 the cost (bedrooms / garden / garage / driveway). Auckland is different, with size and space on par with the south east here.
we need a ban on buy to let and rent controls, i dont care if i own my home. i just want to know i can live in it as long as i want and not be extorted. my grandfather in portugal has rented his apartment for 50 years.
I emigrated to the UK 3 years ago for a list of reasons. I'm not going to Brit bash because the UK has a lot of positive things compared to many other countries. I will however say that the property market is a mess. Apart from all the valid points you've raised the thing that astounds me the most is how unrealistic the prices are. If you look at older builds their selling prices do not equate to an average household income and that includes the fixer uppers even in less desirable locations. Then there's the new builds which are aesthetically beige and look like they're designed in a kindergarten class, in short what makes them overpriced is that they are just plain, boring and downright ugly. I think that the fact that the UK has explored so many buying model's is pure testament to knowing that the properties are grossly overpriced but not willing to budge. The bread can't be buttered on both sides so your properties never really sell and eventually those issues will come home to roost. It's about time government developer's, realtors and especially bank's grew up, got a grip and rejoined the real world.
700,000+ net (documented) extra people arrived in twelve months. Tens of thousands of undocumented people arrive alongside them.
The situation will keep getting worse as we have never built houses at anywhere near that rate Red/blue will not limit inward movement.
Supply and demand.
Blame the Shit politicians 😂😂
@rogerburn5132 absolutely.
@@mrmeldrew693 Thanks
Blame the people pulling their strings. The aristocracy, but business, the elite. All the same, all to blame.
They are likely to live in multi - occupancy homes i.e. 3 different familys in one house.
Whereas you have baby boomer english couples, in 3 bed council houses and all their children have left home.
The indians came and started of in multi - occupancy homes i.e. mother, uncle, cousins everyone, they saved and now are the group with the highest home ownership in the UK. What is your excuse? Go to YT and complain about immigrants like it will solve your problems.
The term 'housing market' has about as much credibility as the term 'the labour market'.
They're both 'markets' of sorts, but they're also heavily and endlessly manipulated in the interests of the relative few.
As long as enough people keep falling for the harsh-but-fair natural equilibrium narrative then so be it.
Greenlight planning permission then. I have a list of numerous people with perfect land waiting for development, over a decade battling with councils and developers still nothing! 😂
Good video. It seems the anglosphere as a whole has a housing problem, with New Zealand being the worst.
We need to cut low skill migration and really ramp up house building, and don't let interest rates fall back down below 3-4%
The ABSOLUTE WORST
Greater and a more secure income would be a large driver of housing development whether buying or renting. Locally built houses ( council houses) for rent and a proper privately rented housing sector is a must. Properly financed individuals or companies should face a financial stress test and other regulation before they build their own houses for rent. Self build and factory constructed accommodation are needed together with building locations. A reduction in the UK population is a long term requirement to facilitate any financial efforts in curing the housing problem.
Informative videos, but just to let you know in first seconds of the video where you are using data of 2017 it bit outdated. Like Lithuania, Estonia and Latvia got more expensive also. So if you could find never data as this is almost 7 years old data which is bit irrelevant
My rent has gone up 25% in the last 3 years it’s over the £1k per month threshold now, I’d love to buy but it’s hard to save up when rent goes up faster than your pay does
Very hard live uk rent too high
Housing benefit is the reason rent is through the roof. The government shoud put a cap on rent. I was lucky enough to by my house on the same road as a friend. His monthly rent was over double my mortgage for the same house.
friends ? and you you haven't invited him to live with you so that he can avoid paying the mortgage? What friends?
@@swojnowski453 he doesn't have a motgage, "he doesn't live there" and his partner gets the rent paid for because "she's a single mum".
Labour opened the floodgates to immigration in 1997 and the Tories haven't stopped it. Supply and demand will always be under pressure if there is the best part of a million people coming into the UK each year. All Politicians couldn't give a toss about the people, if Labour do win nothing will change except we will pay more tax.
And Labour will win. Personally, I'm planning on moving abroad. It's the only way I can afford a house and a family.
This is a deep state policy and applied to most countries around the world. Nothing to do with Labour or Tories
Education and healthcare for the public is also being destroyed by mismanagement and corruption, so that capitalism rears its ugly head again
@@pedalpusher2008 do you see the irony here , you are blaming immigrants and then you say you are moving abroad
Immigration hasn't helped but the affordability issue dates back all the way back to the mid 2000s and while it's nice to blame immigrants, I'd wager government policy has played a bigger hand as they've not encouraged house building to keep with the demand and the poor housing stock.
House prices also increased the most between the mid 90s to early 2000s but the effects of mass migration didn't really begin to take effect until about 2010. Furthermore, France and Germany have seen similar levels of net migration as Britain and this definitely hasn't happened there.
Why would you assume that attributing the cause of price hikes to migration is the same as blaming immigrants? There is no contradiction in saying 'this is part of why prices are high' and then saying 'I have to leave because its too expensive here.'
I'd like to have some accurate numbers on how many homes are actually being lived in. If I check AirBnB, there's literally thousands of apartments available in almost any part of London for any date in the future.
If you don't need your home, as signalled by your ability to rent it out at any given time, then you can't decide to keep it on for profiteering off of the housing crisis.
All government needs to do is change laws to reflect the policy.
Exchange rates and bank rates are major factors. The cost of a house in rural/suburban Japan is less than the deposit in UK for the equivalent house. So hate it and leave it Britisher pals.
Jack, the Japan Alps Brit
Issue in the uk is the government tops up rent, it’s the only country in the world to do so rather than topping up rent it would be better to have a rent cap. Of course rent will be expensive if the government is giving money to pay rents.
No it isn´t the only one.
Transition to rentier capitalism in the western world was decided after 2008. The economy is based on rents rather than producing physical goods. Feudalism is back!
@@ab-ym3bf yes it is I have lived all over the world and not one country I have lived in the government pays the rents of people
A lot of mps are landlords. So there you have it. The UK appears to be set up to a degree where public money is put into elites pockets. And poor are given a dole to keep them docile. This was paid for by the city of London and borrowing. Now after brexit well who knows?
@@terryj50 the fact that you have not lived in such a country doesn't mean it doesn't exist.
So the answer remains: no
"We found that the available evidence shows that quantitative easing has had a limited impact on growth and aggregate demand over the last decade. There is limited evidence that quantitative easing had increased bank lending, investment, or that it had increased consumer spending by asset holders." (c) House of Lords - Quantitative easing: a dangerous addiction?
A friend has bought an overpriced house that needs around 6 months renovations. It’s not liveable so she thought she’d rent for 6 months until she saw the price tag of £2500 a month. Now she’s contemplating buying a second hand caravan, stick it in the garden and live there. Then sell the caravan once they move into the house.
your dwellings per 1000 people is interesting...but in the UK, many of these dwellings stand empty (in need or rehabilitation or owned by investors who are not interested in renting). Empty properties is a real problem in the UK. Another real problem: landlords who do not keep the properties in a good state of repair, and no-fault evictions, both being the markers of a society where renters are scorned.
This is a good description of the housing market, but it does not cover Demand. The biggest failure was for the UK government to get to grips with pensions in the 1990s. Spent a decade faffing.. then decided to put a minimum private pension scheme in place for all employees. Whilst this was going on, people who had plenty of disposable income decided to "invest" in property for their pensions. You have to remember my generation (GenX) have been told there will be no government pension for us. So this demand was created. Its simply got out of hand, we have foreign buyers buying property, new housing being bought as 2nd homes and AirBND etc creating a bubble and restricting supply. Labour have said they'll build 1.2m social housing homes. Its a target they'll never achieve. There are simply not enough Builders (skills) or land to do this. Demand is the issue, and the government (Labour or Cons) need to address it.
The size of the housing benefit bill is going to be bloody impressive within the next couple of decades - even more wealth flowing into the hands of landlords - not only from workers’ wages, but in an ever larger share of tax receipts too. A rentier economy is a dead one.
I don’t think politicians have the will to weed themselves off their dependence on migration and higher taxes. So, no I don’t see it getting better.
Percentage of income spent on housing isn't relevant. The market is supply and demand, we will demand houses at an affordable cost but not necessarily much lower. It should be calculated as what we actually have left over after spending on what we need and quality of life. For an example, we pay tax to pay for NHS so don't need to spend on private insurance. We would expect where wages are good we would spend a higher percentage of income on houses.
The recent rise in unsustainable inward migration doesn't help.
I’m lucky enough (well, luck and the fact I have worked bloody hard) to be on a wage that is rather very good by UK median standards. Even then I’ll be working until 71 at the current projections…
To counter this me and my wife have aspirations to either relocate to the EU (I can attain an Irish passport) or instead of letting any savings be diluted by inflation(not that I have any) put it into bricks and mortar somehow. I’m less keen on a buy to let future but its the best way I can see to set us up for a more comfortable retirement.
Beautiful video but you can question everything shown in it by a very a simple question: is it the countries intention and plan to enable everyone who has an average income to also (immediately) be able to have their own house? This is the actual question that should be addressed. In the UK, new high density housing areas need to be created. This is a fact.