Why is the UK PROPERTY MARKET the best in the world!!!

Why is the UK Property market the best in the world? This video is going to take you into a short history lesson covering why the UK Property market is the best! I could go on how hours about the history of the UK Property market and why the UK Property market is so good! Do you know much about the UK Property market? Has this video helped understand more about the UK Property market? Let mw know what you think in the comments!

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00:00 – intro
00:10 – Economy
02:37 – Marco Economics
06:20 – Interest Rates and Inflation
08:05 – Long Term Trends
12:16 – Government Legislation

ah is now a good time to buy property in the UK so first of all let me give you a little bit of background on how the economy works now there’s a lot of predictions on this but if you think about a full economic cycle we have something called a boom a bust and then we have sort of this stabilization before it goes back into growth and then goes back up now that’s what it looks like over a full cycle and typically this period will look like 15 to 18 years in the UK okay I don’t know about the rest of the world it’s not where I’ve researched but in general there’s around an 18-year property cycle here in the UK what that looks like on a smaller function is something like this so let’s say we’re starting here it will go like this so it will go up down up down up down up down up down up down and each of these is a full economic cycle that we’re going through okay so each of those is around an 18-year period and you might have heard things like on average property doubles every 10 years that’s not quite true it’s every sort of 10 to 13 years it’s obviously dependent on the location as well there are some areas that are doubled every eight years and that’s going back since the Doomsday Book to give you an idea if we go back to 1952 which is is a don’t know why 1952 it’s just a very accurate reading that we have the average property is 1,900 give or take about 20 quid so you could buy your average property in the UK for £1,900 what’s interesting is your average car in the UK which apparently looks like this that’s actually not too bad I’ll give I’ll take that he average car in the UK was actually worth more at around the equivalent of 22,000 000 now if you fast forward to today the average property price is Circa £ 292,000 and I don’t know the average price of a car but it ain’t bloody that and the reason for this is because of supply and demand economics and of course inflation through time so obviously the cost of building a car has gone down dramatically the cost of building a house has gone up dramatically with the cost of Labor bricks and wood obviously being a major contributor to that so the first thing we’re looking at is these macro economics and I really want to talk about what actually impacts that and where I think we are now when the market goes up we’ve got a lot of factors that drive that up and one of them is low interest rates we’ve got higher inflation and something called purchasing power which I’m going to put as PP so our purchasing power ends up going up there’s a lot of other factors by the way that really drive this but ultimately it’s these three main factors and what that ends up with is higher demand and lower Supply then what happens is we have something called a Black Swan event and Black Swan event could be covid it could be the liquidity crisis that we have with seed collateral debt obligations in America 20 7 and so on and so forth and we’ve got all of these things that happen that then create a recession now the average recession is between 8 and 11 months so when people say recession like oh my God this is terrible it’s really not like don’t get me wrong I know people lose their jobs I know it’s harder for everyone everything’s restricted it’s not that crazy like it’s really not that big of a deal okay and it only lasts for a certain amount of months 8 to 11 a depression is something different that is we are so that we’re not going to worry about what property price are everyone’s going through like crazy right then so we have this correction and the reason why I said I think stop being dramatic is I I know that’s maybe taking emotions out of this but it needs to happen like you cannot have it where property and prices just keep on going like that it’s absolutely insane we need something that corrects it so if we look at the most recent correction when we’re going through this what’s happened recently what’s happened recently is we’ve got brexit we’ve got Ukraine and Russia we’ve got the oil crisis that we had during lockdown we’ve got covid and then of course the interest rate Spike so the increase in interest rates now all of these fairly obviously is going to lead to a contraction where the market turns is that a bad thing no not really it’s just not that big of a deal brexit has pros and cons overall in my opinion a net negative for our country economically speaking Ukraine is bad for the world apart from maybe a few key players but we’re not going to get there um ultimately causes massive disruption let’s face it Russia threatening to us all up with their weapons that we don’t even know half the B just doesn’t bode well for a lot of us right oil obviously not great when all of that happened if you don’t know Russia supplies quite a lot of oil to the UK suddenly that was cut off we had massive supply issues we still had the demand prices went up crazy Co not ideal let’s face it what did covid cause apart from stress and panic well what it did was immediately cut off supply for 3 months if you think about a 3mon lockdown but the 3 months of demand of a country is still going on so the world lock down for 3 months no Supply chains whatsoever and you can’t just switch back on those Supply chains it takes time to build it up in fact 3 years is what it takes to get back to normal after 3 months so for each month that we had a full lockdown it’s going to take a full year to get back to normal not bloody good and then obviously interest rates as well now quick economics lesson on interest rates and inflation so when Supply inflation is just speed it’s acceleration that’s all it is it’s the economy growing bit of growth good too much growth things start breaking imagine you speeding in your car and it gets a little bit out of control we need to apply the breaks how does a country apply the breakes well this break is called interest okay inflation is the accelerator so when we’ve got inflation and we need to slow it down we put interest rates on which is the break and inflation starts getting smaller and smaller and smaller which is what we’ve gone through economics lesson for you okay so this is all interesting but what does it actually mean well first of all it helps to explain when there’s a retraction people going is property still a good investment it’s gone down in the last 12 months like yeah it’s meant to have it was a deliberate move like this is what baffles me it’s like interest rates have gone up because the bank of England decided to put them up why did they put them up to slow down the economy the e economy was going so fast that we’re starting to break the cost of living crisis is because we were growing too quickly it’s a problem for us hopefully sorry I’m venting at you now aren’t I but the reason I’m venting is like it’s like things happen in the economy and people don’t even question why it happens that’s why it happens so when the market has had this little dip here and people are going oh my God this is terrible it’s like no not only is it a good thing over the long term it also creates opportunity which I’ll get to in a second the more important thing we look at is the long-term trends we always say it Aspire if in doubt zoom out so let’s say we’re looking at a property and let’s say it’s had this sort of growth let’s say the purple lines represent a year and we in general it’s going up like this and then the last year it’s gone like that so you might go oh my God is this a good area well again if you’re focusing here and it’s all gone down like the whole all of the UK and we go oh my God this can’t be a good area look at the last 12 months it’s like yeah everything’s gone down stock prices have gone down like everything of tangibility has gone down very deliberately it’s like somebody here going right what we’re going to do is we do this and the sole purpose of us doing it is to drive the market down a bit and then it happens and we go ooh that doesn’t look good if in doubt zoom out so what we’re trying to do is look at the overall trend of this on where it’s going next is a bit more of a regional analysis all right you have to think if you’re looking at the UK which is obviously shaped like that perfectly right and you’re in London here versus leads or say Newcastle I realize that is awful Isn’t it I mean arist don’t insult me okay now obviously it’s regional so if we think about leads and then we’ve got the Northeast like Darlington so Darlington nice area good uh cash flow and in general over the last couple years had artificial Capital Growth and that’s because of covid and everything else but the thing is if you look at Darlington over the next 30 Years not knocking Darlington by the way it’s nice for a bit of cash flow it ain’t going to have the same Capital Growth obviously whereas if you’ve got leads and you’ve got all of this investment the channel 4 move in here it’s one of the uh economic zone so you’re going to get tax breaks by having a business here in leads and so on and so forth what then happens is all of the areas surrounding that which is going to be places like stainforth um pontif frat Castleford some areas of Bradford some areas of Wakefield some areas of Halifax all of those are going to have strong Capital Growth over the next 5 to 10 years in fact in our areas we’ve trebled people’s Investments over the last DEC decade and that’s through looking at local Regional analysis but with this you need to narrow it down a bit further so you can look at Manchester as a prime example and look at their economic cycle and then look at leads which is where we operate now the thing is we’re quite fortunate we live in leads as well we operate in leads but that’s not why we operate here yes we’ve got our office here but actually if you were listening to me just say 7 years ago I was talking about Manchester and the reason why is that Manchester was on this part of their growth curve whereas now they’re still on a growth curve they’ve probably got about this left and you can see it by the way if you look at time lapses of cranes in Manchester very good indication there are less and less cranes still loads by the way but less and less cranes in Manchester so whilst it’s a great investment area it is not going to have the same Capital Growth over the next 10 years compared to the last 10 years whereas if you look at the economic cycle of leads what we’re seeing is that same growth curve but it’s more about here so in leads we’re lucky we’ve got that sort of growth coming in and obviously this is a drawing in here might not seem like a lot by the way but essentially we’re going to look at leads now the same way we looked at Manchester 7 years ago and S years from now I might be on here on YouTube talking about I don’t know could be Nottingham it could be Derby it could be Newcastle I I don’t know because I’ll look at the economics of the time but ultimately this is why we are obsessed with Western South Yorkshire because of the South Bank development that’s coming in because of the level of cranes because of the local economics so the next things to think about and the final thing is government legislation government legislation is really important and I want you to think about what’s been happening over the last few years and why I think now is a great time to be investing in property again just my opinion I think this is one of the best times to be investing and it’s counterintuitive what do I look for when going heavy I look for bad news so I look for things like brexit I look for things like covid I look for things like section 24 um if you’ve heard of the Reform Act coming in I look for things like that now let me give two scenarios would you like to play your rods with all the competition you can imagine everyone’s got loads of money they’re throwing money at it and there’s going to be 30 people bidding on the same property that you want that’s scenario number one or if you believe in the longterm of property which I Do by the way and if you don’t you probably wouldn’t be watching this Channel or would you prefer scenario be where there’s still loads of people bidding because it’s a competitive area that you want to buy in right but now there’s only 10 people bidding for the property there’s less people with loads of money to compete with you which means you’ve got less competition which means you’re going to get the property at a competitive price which scenario would you want to buy him it’s kind of like if you were buying a stock would you like to buy it at this price or would you like to buy it at this price everyone would go number two instead of number one but what most people don’t get is they don’t understand what the market looks like in order for it to be this price instead of this price well it looks like what it looks like now if you go back preco we were here in the market we’ve then had this massive Surge and everyone was buy buy byy byy byy byy byy and now we’re at this correction piece why is this happened well during this thing we had section 24 we had covid we had brexit coming into play and all of this has a delayed impact inflation then went through the roof which again is the accelerator of the economy it got too fast and then we needed to slow it down and so we started putting interest rates up so it went up all the way up to a base rate of 5.25% in August 2023 and it’s remained at 5.25% all the way through up until filming this video so by the time you’re watching this I can near guarantee it’s still 5.25% and I guarantee I would put money on this that it will go down in 2024 so the reason why is because they’ve been applying the brakes and the car is slowing down now this is a really good indicator if the bank of England after meeting I think it’s eight times don’t quote me on that and they’ve kept it at the same amount of pressure it’s because it’s working it’s a good thing so whilst we are in this period of the reformat covid the impact the interest rates being higher it means that we are able to buy property at a genuinely good price now let me ask you okay if you understand economics we’ve got interest rates to bring down inflation there’s going to be people going yeah but it doesn’t actually impact it so yes it does and very factually look at inflation now on the government website vers 12 months ago doesn’t take a genius in my opinion but once inflation comes down to a reasonable rate around 3% in my opinion what then would you do if you were in the car and the speed is now reasonable you would then take your foot off the brake and then what would you do maybe apply more on the accelerator so for our economy what do you think then happens to the break I.E the interest rate they start bringing it back down once Finance gets cheaper again what what do you think happens do you think more people want to buy property or less more people obviously so when this happens and I’m not saying this is an overnight thing I’m not saying it might not even come down a little bit more but I promise you you ain’t going to time the market it was Warren Buffett that said time in the market will always be time in the market but I think this is a really good time to get in when the interest rates come down and the market goes back up and by the way you can be one of those that goes by to let dead I’ve been hearing it for the last 10 years no you’re rubbish Jamie we’ve got to Tumble down yeah been hearing that as well and the problem is you’ll be right in 18 years time when the market comes down again the problem is it’s had all of this growth again so let me know what you think in the comments but genuinely if you want to be a part of that with me put APG we’ve got fre one to one strategy sessions completely private we record them send them to you so you’ve got it to take away with you and maybe we can help you on your journey so put APG this has been valuable tap the like button hit the Subscribe and the notification Bell if not I’ll see you in the next video