UK House Prices Will Not Stop Falling Until 2025? | Simon Zutshi

Want to learn how to kickstart and amplify your property sourcing business? Join some live online property training with Simon Zutshi here: https://property.isrefer.com/go/S&S/Youtube/

In this brand new Property Education video, Simon Zutshi addresses an article from The Guardian stating how UK House Prices Will Not Stop Falling Until 2025.

According to some property experts, the Housing Market Crash Can’t Be Stopped. With this Guardian Article showcasing a Lloyds Banking forecast, it is predicting UK House Prices to Fall Until 2025.

What is happening with the UK Property Market right now? Simon elaborates on what could potentially be in store for Buy to Let Property investors and answers the ultimate question, Is the UK Housing Market Going to Crash?

If you were wondering What’s Going to Happen to Property Prices, the reality is that nobody knows. You can however, understand what Property Investors can do during this massive uncertainty with the current Falling Property Market.

Whilst Simon doesn’t personally believe there will be a Property Market Crash, we may still experience Falling Property Prices going into 2024, because of there being no change with the Bank of England Interest Base Rate.

Interest Rate Hikes, investors with Negative Cash Flow, the impact of Section 24, Landlords Selling Up – are all contributing factors as to why UK Property Prices are currently coming down.

So what does all of this mean for you and your Property Investing?

Simon encourages you to learn How to Find Good Property Deals. By making use of Property Strategies such as HMO Property Investment and Serviced Accommodation, which both generate a high cash flow, it is still possible to get buy to let finance right now. By utilizing Rent to Rent and Lease Options, it is also possible to invest in property without needing a mortgage at all.

With the correct Property Training and knowledge, there is always a way to become a successful property investor, regardless of what is happening in the Housing Market.

Hello, it’s Simon Zutshi here and in this property education video I’m going to talk all about the UK property markets. What’s in store for buy to let property investors? Are we going to see a property market crash now? I’ve done videos like this before,

And so why am I doing this particular video right now? Well, this last week in The Guardian newspaper Lloyds Bank published a report saying they believe that UK house prices will not stop falling until 2025. That’s a very prominent other property educator.

I received an email this week saying he believes that property prices will actually crash by 15% in the next few months. Now, what’s going to happen to property prices? The reality is that nobody knows what’s going to happen, but I think those important factors

I want to talk about so you can understand what we can do in this time of massive uncertainty for the UK property market. So my name’s Simon Zutshi I’m the author of Property in the Amazon number one property best seller, which was first released back in February 2008.

And I must say the UK property market feels very much like it did back in 2008, which is when we had the last property market crash. Now, I personally do not think we are going to see a property market crash, but I believe that property prices will continue

To fall probably into 2024 because I don’t think we’re going to see a change in UK base rates. So it’s not going to come down. It might go up actually slightly, but it’s not going to come down probably until we get into 2024. And what’s happened over the last couple of years

We’ve seen as interest rate hikes, which means that for many people, many property investors, the amount they’re paying on their mortgage is actually more than they are getting in rental income coming in. So you got lots of investors who actually negative cash flow on their buy to let properties.

And that’s not a good situation to be in. Add that to the double whammy effects of section 24, which the government bought in April 2017, whereby we as property investors are now treated differently to other business owners. As I said in my last video, I think it’s very unfair.

In fact, discrimination against property owners. But the point is, if you own property in your own name, which most people did, about 2 million landlords in the UK, it was the most tax efficient way of doing it. And if you have a mortgage again for about 75% of properties in UK have mortgages

And if you’re a high rate taxpayer, which not all but many property investors are, it means you’re going to pay a lot more tax on your property income. So this is one of the reasons that many property investors are selling up, what their landlords are selling up,

And this means more property coming onto the market. The fact that there are more sellers than there are buyers, that’s why prices are coming down. It’s simple economics, really. Now what you have to remember is we live on this island with a limited amount of accommodation and an increasing population by laws.

But I was talking about the fact that Labor are saying that they are going to make it. They’re going to build 1.5 million homes over the next five years. If they get into power, that’s 300,000 a year. And by the way, that figures very close to what the Conservatives estimate.

They say we also need 300,000 a year. But the reality is we don’t build anywhere near that. We might get about 150,000 at the moment. And my question to both the Labor Party and also to the Conservative government is, well, where on earth

Are you going to get the skilled labor from to actually build these properties? Labor are talking all about having to work for the planning departments to relax the planning laws, and that might help a little bit, but you still need to find people to actually build the property.

Certainly better is the bedroom and actually it’s also the local councils need support in the planning departments, which are massively understaffed. Planning permission is taking a ridiculously large amount of time to get through at the moment. So there’s a lots of problems broken in the property market right now.

Now the government, to be fair to them, have been pretty good in terms of propping up the property markets. And obviously the reason they do that is because housing and retail are two of the main fundamental income streams in the UK. So if either those cops are we got big problems Now obviously

COVID in March 2020, we saw big problems when everything was shut down and suddenly retail they couldn’t operate. And actually for the very first time, many triple A rated businesses defaulted on their payments to their commercial landlords just because they didn’t have the income coming in.

So a lot of people had a bit of a wake up call thinking commercial property was a very safe, passive, stable thing to do. They had a bit of a shake up during COVID, and as far as property is concerned, the UK government stepped in and intervened by doing two things.

They introduced the stamp duty holidays, which stimulated the lower end of the market and also they had the bounce back in simple loans, which are designed to help support businesses. But a lot of that money wasn’t supposed to go into property, but I think it worked its way into the property market.

So this caused the unexpected boom in property prices during the COVID years. Now, in reality, the Bank of England’s predicted in May 2020 that property prices could come down by 16% because of COVID and the pandemic. And that’s why the government reacted.

And I think they did a pretty good job, to be fair, to actually stimulate the property market. So the question is, will the UK government do something to stimulate the market? Now they’re talking about this helping to support first time buyers

With this idea that they put down just 5% deposit and be some sort of insurance or government backed scheme to help them to get on that property ladder. And that is a great idea. I think that’s a really good thing. I don’t think it’s been that much uptake.

There’s not actually a new idea. But the point is it’s not just the deposit. The problem we have right now is the high interest rates, although the relatively high interest rates you see before the property crash, we had a situation where Bank of England base rate to about five and a half, 6%.

This was like mid 2000s and it’s only when we went into the last property market crash in the recession in 2000, 2009, that interest rates came down. Then we had a whole decade where interest rates were pretty much half a percent. And what happened?

Many buy to let landlords got very used having this very low interest rate. And now I have really good money on their investment properties. Now the challenges in 2022, when the interest rates started to go up because the Bank of England would use interest rates as a macroeconomic tool

To control inflation, inflation was over 10% and they had to put those rates up obviously, and it certainly worked. It slowed the economy down. That’s why they put interest rates up. But the question is whether interest rates are going to come down.

Now, personally, I don’t think we’re going to see interest rates come down until probably the beginning or maybe even halfway through 2024. So I can’t see having a slow down in this falling property market certainly until mid 2024. I’m not as pessimistic as the Lloyds Group who think it’s going to keep falling

Until 2025. Having said that, Lloyds do own Halifax, which is the biggest lender in the UK for mortgages. So they’ve got a pretty good insight into what’s actually happening in terms of borrowing and they’re seeing things slow down. A lot of spy agencies speak to say the market’s really slowing down.

There are some things selling, but fundamentally, if affordability is a problem in terms of mortgages, it means people aren’t going to be able to move forward. So what does all this mean for you and your property investing? Well, if there are less people buying property

Because the market’s coming down, a lot of amateur, amateur investors say, well, let’s wait and see what happens. It means there’s not as much competition right now. So, yes, there are some challenges. Yes, it’s not easy right now to get finance, but actually it’s very straightforward to find incredible deals

And what you should be doing as an investor. I think you should be getting out there and finding really great deals. And if you don’t know what to do, that might be a skill set you want to acquire because learning

How to find really great property deals in your area is probably the number one skill I think you need to adapt to become a successful investor. What it means is when you’re finding really good property deals, you can find great deals for yourself and obviously going to keep the best deals.

But here’s the point If you’re finding lots of deals, you only need to a certain number because you have a certain bandwidth capacity, a certain amount of money before you run out of deposit funds. So if you’re finding good deals that you don’t want,

You can take those deals and pass them onto other property investors. There are lots of people who want to invest, but they don’t have the time or the money or the knowledge on how to find great deals. Now, obviously, every board is having

A problem of mortgages taking a long time and affordability tests. But if you’re using strategies such as HMRC has a multiple occupation and serviced accommodation, which is a short time, lets they have very, very high income, so it is possible to get finance on those.

Right now there are also strategies where you don’t need to get mortgages such as rent to rent and the even better strategy purchase lease options when you’ve got cash flow and potential equity growth from a property that you don’t actually own.

So when you have the correct knowledge, there’s always a way for you to invest no matter what is happening in the property market. And in fact, if there’s uncertainty, there’s turmoil. That is actually a good thing for you because it means there’s less competition.

So that’s my message to you really in this video, I think you want to educate yourself, going to get out there and secure some fantastic deals, keep the best ones yourself, sell the ones you don’t want other people. Now, if you do sell deals,

You do need to be what’s called a compliance to your source. Very briefly, you should be registered. When someone like the PR asks the property read your scheme. You should be registered with the ICO, the Information Commission Officer. You should be registered with HMRC. You should do the anti-money laundering checks

If you’re accepting money from people and also you should have professional indemnity insurance in case you make any mistakes. If someone tries to sue you for mis selling your property to them. So the things you need to do if you’re going to be doing salsa,

There’s a lot of mystery around that as well. But again, once you know what to do, it’s actually pretty straightforward. And I said keep the very best deals yourself. Now, if you run out of your own deposits, you can sell deals to other people.

The fees you make, you can use those fees as deposits for the ones you want to keep. Or here’s another idea for you instead of selling deals that have really good deals, go to the people who you’d normally sell to and say to them, Hey, how would you like to joint venture?

A joint venture is where you might find a property deal. You found a really good deal. Someone else has the money, doesn’t have the time or energy to find the deals. So you work together. Now, a couple of caveats here. If you’re going to work together,

You need to make sure you know people really well. You don’t want to jump into bed with someone, metaphorically speaking, without getting to know them really, really well, because you’re entering into a business transaction. Obviously, you need to make sure everything is put down in writing.

So you’re very clear exactly who is doing what and you’ve got a contract in place. So if things do go wrong, which sometimes things do go in property, they go wrong and joint ventures, you know exactly who is doing what.

So please, if you wanna do joint ventures, make sure you do them correctly. Again, educate yourself around how you do that. But it’s a great way for you to move forward. Don’t think you need to have just your money.

However, if you’re going to put someone else’s money in, there’s got to be enough profit in there for you and also for them to make it worth their while. So it comes back again to make sure you’re finding really good property deals. If you’re not finding good property deals in your area,

It’s going to be very difficult to get other people to come and fund those deals for you because they need to make a profit from the boys. Let property as well as you need to make a profit. So I would recommend you spend some time educate yourself.

There’s lots of free videos on my YouTube channel. By the way, if you’re enjoying this video, please like the video, please comment below. You might agree or disagree. That’s fine. Just put your comments below. I’ll come and answer as many as I can

And then also make sure you subscribe to the YouTube channel and hit the ball away from. A lot of my videos are very topical time related videos, so I suggest you subscribe rather than find them six months later when they might be out of date.

So best thing to subscribe make you hit the bell icon and you get notified whenever a new video comes out. I said, Please do like it, because then that works. The algorithms and other people will find it and hopefully benefit from the free information I give on my YouTube channel.

I also have more training, a lot of online free training, and if you click on the link below this video, there’s actually links to further training, all about how you can become a really good deal source if you’re just finding deals for yourself

Or if you want to pass them on to other people. I’ll explain how that’s possible in a video. It’s got a bit more time to go into a lot more detail around that, so click on the link below. Come and join that training comment like the channel

And I’d love to hear your views about the property market. What do you think’s going to happen in the next, say, 12 months? Do you think we’re going to see property prices continue to fall certainly into 2025, which is what Lloyds think,

Or do you think we’re going to see prices leveling out in 2024? What do you think? We’re going to see property prices going up within the next 12 months? They will go up at some point because of the supply and demand,

But I think it’s going to be a little bit of time yet. They’re going to see prices come down a bit, then hit the bottom. And then once everyone thinks it’s hit the bottom and maybe finance has got a bit easier because interest rates have started

To come down as well, then we’ll see property prices go up again. Remember, we live on islands with a limited amount of accommodation and an increasing population, so property prices will go up again as long as the population continues to grow. However, no one knows when that’s going to happen.

You don’t know? I don’t know. Nobody knows. So stop trying to guess the market if you follow the golden rules. But I talk about in property magic, which is buying from motivated sellers, buying in our strong demand. Make sure you get cash flow

Before long term and have a cash buffer rule two, three and four. Are you buying another strong way to demand Make sure I’ve got cash on hold long term, it doesn’t matter what happens to the property prices short term, as long as you believe long term they’re going to go up.

It doesn’t matter if you buy something now and it’s six months later, you could buy it for slightly less money. Sometimes people wait to see what’s going to happen. The problem is it’s a bit like, you know, if you if you want a new coach,

We’re coming into winter time now and think what? I need a new winter coat. You could say, well, I could go to the shop when I see this problem, I see this great coat I want to buy. But you know what? I’m going to wait.

So I’m going to wait to the January sales to have a pound to be selling them cheaper. And yes, they might be selling some coach cheaper. But you know what happens, right? You get to the January sales and you look and your coat size is gone

Because you sat and thought about it too long. SIMON Property before the really good property deal. And it’s a good deal. You should be buying it now as long as it stacks up, makes cash flow and meets your personal investing criteria. Will prices be less in six months? 12 months? Yes, probably.

But they’ll also be a lot more people coming back into the market once the prices they hit the bottom and everyone knows they’re going to go up. It’s also going to be much harder to get sellers to be flexible on price all times once they think prices are going up

Because they’re going to have the hope and expectation that someone’s going to come and pay more for their property. So you want to be buying right now while property prices are falling and while property prices are continuing to fall, that’s when you want to be investing. I do hope you’ve enjoyed this video.

I’ve lined up another one for you. Do like share, do comment, make sure you subscribe and hit the buy local until next time. Remember invest with knowledge invest with skill. Hey, it’s Simon here. I do hope you’ve just enjoyed that video on YouTube.

I hope you took lots of notes and more importantly, you going to take action. And what I’d encourage you to do is click on the link in the description below the video. I’ve got some live online training that’s very relevant to the video just watched. Come and register for that training.

Join me live online and you can actually get your questions answered live as part of that training. So take the opportunity to come and join me live online, click on the link below and secure your spot before you miss the day. Take action.

Right now, as ever, I encourage you to invest with knowledge, invest with skill, enjoy the next video.