A look at the current state of the housing market and what might happen in 2025. Are prices set to keep rising? What will happen to interest rates?
00:00 Intro
0:54 Outlook for 2025
4:07 Stamp Duty
5:24 What’s affecting prices
7:09 Why House Prices high
11:22 House Price Forecasts
12:37 House Price Falls?
13:41 Best time to buy?
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Sources:
https://www.economist.com/the-world-ahead/2024/11/20/interest-rates-will-come-down-sharply-in-2025
https://www.telegraph.co.uk/money/property/mortgages/lenders-raise-mortgage-rates-budget-market-jitters/
https://www.zoopla.co.uk/discover/property-news/house-price-index/
https://www.thetimes.com/life-style/property-home/article/when-is-the-perfect-time-to-buy-and-sell-your-home-in-2025-vflksk3mm
https://www.ons.gov.uk/peoplepopulationandcommunity/housing/datasets/ratioofhousepricetoworkplacebasedearningslowerquartileandmedian
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34 Comments
Rent matters. Inflation in terms of egg prices? The rent is more critical. The Henry George in 1879, the book Progress and Poverty, argues that Land Value Tax for public revenue of which surplus should return to people by basic income … ref. Peter Thiel or the Georgist Real Estate crisis, https://youtu.be/jsXNST2PC64
ref. 2 : Land Value Tax and virtually no homeless in Singapore, Denmark, Taiwan … ( https://youtu.be/Li_MGFRNqOE )
What goes up must come down, unless of course money printing goes brrr…. Then what goes up continues to go up.
So after 15 minutes of video, still don’t know without a crystal ball
"Make" money on house and spend it on shopping, what can go wrong?
House prices are never going down face facts its extremely hard to get a house, so if people continue snapping them up the demand is there, and quite obviously, these people can afford 322000 i dont know what they work as but i could only imagine these people will be paying debt not actually living
I think the following is likely
1. Economic Downturn: Reeves’ budget has severely impacted the economy, likely pushing us into a recession as of December 2024.
2. Lost Tax Revenue: The anticipated increase in tax revenue from the budget will likely be offset by widespread business closures and layoffs. This makes it difficult to fund the £2-4 trillion required for Net Zero (just five years away) without resorting to significant borrowing.
3. Inflation and Interest Rates: Borrowing £2-4 trillion for Net Zero will create persistent inflationary pressures, forcing the Bank of England to maintain high interest rates.
4. Housing Market Pressures: While high interest rates might slow the pace of rising house prices, the ongoing demand from migration will continue driving prices upward. This will leave more people unable to afford homes, exacerbating affordability issues.
5. A ‘Zombie Economy’: The likely outcome is a stagnant, ‘Zombie Economy’ where costs remain high, but wages and living standards fail to keep pace, leaving most people worse off.
6. I would expect to see little to no growth in the economy over the next 2-3 years
‘Pushed higher by rising rents’ – I thought you were an economics channel 😂 literally the reverse.
A recession might change things.
Labour are doing a good job creating one!
It's past time for UK property to go back to utility value and for us to start using the future global store of value which is BItcoin. You will get it at the price you deserve frankly.
The formula that your stupid politicians don’t understand is to stop funding other people wars and interference in other countries and spend that money on your own people.
Short term rate cuts maybe but long term rates are going up up up. RIP overpriced uk housing. What goes up…
Let’s be real,The politicians and riches in Uk have manipulated so sneakily the housing market exploding the houses prices so high ( mainly having allowed buyers to resell houses so higher and profit without being heavily taxed ) that it is now impossible for the ordinary people to access the market and live a decent life.but eh, Uk has always been like this, a high rich class and royault y on top, and the “ low complying people” on the bottom …. ,the riches must be laughing ….
In Europe, there are clear laws and heavy taxes to prevent rich buyers buying for making profit the following day, so the houses prices are very reasonable as a result,and therefore accessible to anyone who work.
I have poor quality infill land fully surrounded by houses with two access roads yet planning will not allow housing. Goverment must get councils to use green belt for genuine reason or we will just get not enough houses and higher prices
I will believe it when I see it! All these people flooding into this country all need a place to live. I’m no expert like yourself – let’s see what happens.
you have been forecasting falls for several years, but all we have are rises, it's a question of supply and demand, there are not enough houses being built, but more people needing them, a fall is very unlikely for the immediate future
If you can work online there is no point in staying in the uk hoping some day you will buy your dream terraced…
2 min. to understand, ref. economist Henry George, that “Georgist real estate catastrophe” (in USA, Britain, Canada, … ) , via Peter Thiel
https://youtu.be/jsXNST2PC64
Informative and clear – thank you!
With over a million coming every year….. Supply/Demand. Massive demand, creates massive inflation – inflation. Just forget it, as investors will keep buying. There's even government assured buy-to-let.
"You will have nothing and be happy" they said…..
Reading this today, after Rachel from accts is screwing the uk
very good video
Dual income households drove the price boom by far the most significant change, there are no third incomes coming outside of (parents) there is a limit. The markets reaching it.
Hi i was listening yo a property guru the other day and they were claiming that interest rates could/would rise to 9%,because of tighter bank lending criteria with the inception of basel 3.1,by 2030. Is this just scare mongering or does it have credance?Thanks nick
Question if the ONS keeps lying about house prices. Then because housing costs inc rent comprises over 65% of household spending. Then these rises in rents and mortgages should be included in the CPI data.😢 Up 9%
Every month it becomes more expensive to build a house the base costs plus the land will always ensure a rising market figure.I know.
You beeen saying property down from day you made the account bro go to sleep
It's a buyers market nowadays
Bad uk
It is immigration isn't it? Not migration. Migration is immigration/emigration or just moving to a new town! 😂
More people and not enough houses… what would you expect the market will do? Will keep being expensive
Can't believe you made a whole 14 minute video about house prices and first-time buying without once mentioning rising wealth inequality. Why are people always ignoring the main thing ghat changed in the economy over the last 5 years
It’s all false
You pay twice the amount of the house’s value.
You are stuck where you buy.
Stamp duty.
30 year mortgage is the illusion of owning.
Never see the money unless you live in a shoe box when you retire.
In my mind a big scam
If nobody can afford a house the prices have to go down…