UK Property Becoming More Affordable at Fastest Pace In Decades

UK Property Becoming More Affordable at Fastest Pace In Decades

Exciting news for UK property enthusiasts! Discover how the landscape of UK real estate is rapidly becoming more affordable, marking a historic trend. Join us in this video as we delve into the details of this remarkable development and what it means for potential homeowners and investors. Don’t miss out on this significant update on the affordability of UK property. Watch now and stay informed about the changing dynamics of the market!

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Hey my name is James Nicholson welcome to my YouTube channel in this video I want to talk about house prices are getting more affordable at the fastest rate in decades now I know when I say a statement like that that we’re going to get absolutely hammered in the comments

Saying house prices are unaffordable people just can’t afford them and that could be right for a lot of people however stick with me because I want to share with you some data to show you that it is improving it might not perfect the only real solution that

We’ve got to get house prices affordable is the government to build more properties we need 300,000 properties built in the UK every single year we’ve never hit that Target for a long long long long time and that means that house prices will be difficult to afford for a

Lot of people and so these things that are happening are making things better but I do understand like I said we do need to do that excess building in order to make it better faster for a lot of people so while we jump into this data if you haven’t done already do subscribe

To the channel over there and hit the Bell notification that really helps me we’re on the journey to 20,000 subscribers you can see around this video how close we are to that so do smash that subscribe button while you’re here and smash the like button or tickle

The like button do something to the like button guys that really helps me with the YouTube algorithm collect ly we’re trying to get 5 million views this year we did 2 million last year that’s our lofty goal for the year so what’s going on to improve house prices or not

Necessarily prices but affordability well what’s gone on in the last few years actually made houses less affordable so we had the pandemic then the government turned on the money printer and printed money for bounceback loans for Furlow schemes cost of goods got really expensive as it was hard to

Move stuff Energy prices went up and inflation really hit us in the last 12 months we peaked inflation at 11.1% I think it was and that meant the bank of England had to step in and do something now how they deal with inflation they don’t have many tools

That they can use and one is to increase interest rates that then puts stress on people to borrow money makes it harder to borrow money it means that maybe they should spend less that’s their goal and they want to push us close to a recession but not into a recession in

Order to crush inflation so they put the interest rates up 14 times in a row which was really really difficult for a lot of people that made affordability even worse because if you were a bolet landlord as an example and you were paying interest only you could have got

A 2% rate and every £100,000 that means you’d pay £2,000 back in a year then the rates went to 6% that meant that you’d pay £6,000 back in a year which is three times affordability dropped significantly now a repayment mortgage which a residential person would have a

First time buy for example you’re not hit as hard but it’s still significantly more payments went up around 25% meaning you couldn’t afford the mortgage so what’s improved and is it going to keep keep improving that’s the most important thing well wage growth has really helped

A lot of people and so I know some of you are going to say you haven’t had a pay rise always happens in the comments and that’s cool let me know did you have a pay rise that was more than inflation some sectors did Financial Services got

Paid really well some sectors didn’t I’d like to know if you’re employee did you actually get a pay rise yourself do comment below and let me know and if you know have to let me know your salary but let me know roughly how much was it was

It 2% 4% 6% 8% that’ be interesting to see but wage uh growth has actually gone up and it’s more than the rate of inflation at the moment so that’s getting people to catch up uh with those L few years now some data sources are saying house prices dropped last year so

We go with the Nationwide data uh that we’ve got Nationwide said that house prices dropped one .8% that makes a difference right so if the house price is cheaper you don’t need to borrow so much you don’t need that many of a multiple of your earnings

In order to achieve it so that’s good news house prices did drop a little bit now some of you in the comments are going to say house prices are down way more not actually because maybe asking prices are down some of you might be seeing asking prices down this is sold

Prices completed listings uh and that average with Nationwide uh 1.8% next interest rates a year ago they were crazy high and so you would look at a rate you wouldn’t see it below 6% some were seven some were eight we even saw I saw someone on uh question time or

Something like that that was a snippet used on social media and they were talking about a 10% interest rate that has dropped massively this year particularly the back end of 2023 this year 2024 is also dropping and you can get rates now of 4% so that’s possible that means you

Need a big deposit more for remortgages but if you’re a firsttime buyer you can get rates in the 5 something uh percent which is really really really positive news and that gets affordability up it’s not perfect it’s not down to 2 3% that we had but it’s moving in the right

Direction so you got to take all of this into account wages are up house prices are down interest rates are dropping they will continue to drop as well house prices might also drop a little bit this year and that’s going to uh make a massive difference one other motivation

For people to actually buy now is rents on average are up 6.2% that’s a significant jump that’s more than inflation in fact I’ve seen in some of the areas I deal with so I invest in dking in Su Hastings London and Doncaster all of those I’ve seen rents

Going up more than 10% in those areas particularly dwking and particularly Doncaster rents increase significantly in those areas now what does that mean that means that people are more motivated not to wait not to keep saving because there are some people that want to buy a house they’re waiting for

Prices to go down they’re waiting to save a little bit more deposit but it motivates them if their rent goes up significantly to actually pull the trigger and go and buy a property so that really helps them move forward as well so look this isn’t perfect by any

Means it needs to be better and like I said at the beginning of this video the only real way to sort the housing crisis in the UK is to build more properties we’ve got tons of empty commercial units tons of empty offices we don’t need necessarily more buildings of course we

Do need some but we could convert stuff that’s not used into flats and accommodation that people could use and that will make a massive difference to people’s affordability it’s a supply and demand thing we don’t have enough supply of property we have more people coming in from immigration we have more people

That are living longer the country is getting more and more crowded and if we don’t build enough properties this will just continue house prices will just keep going up at record rates rents will continue to go up at record rates so this is some sort of rest bike and if

You time this well if you wait for the market maybe if the market goes down another 2% and you get another pay rise at work and the interest rates come down a little bit more then you’ve got a triple whammy there that’s really going to help you invest in that first

Property let me know your thoughts on all of this do you think this is all a load of rubbish this is taken off a bloom article uh so do comment below your thoughts do smash the like button guys share this with some people that you know that want to buy some

Properties do subscribe do check out some other content on my channel maybe go and start with this video right here