TPP181: Is UK property unaffordable?

The Property Podcast

Rob Bence & Rob Dix

News, Education, Business, Investing, Business News

4.8 • 2K Ratings

🗓️ 1 September 2016

⏱️ 23 minutes

🔗️ Recording | iTunes | RSS

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Summary

Depending on who you listen to, it's either the perfect time to invest in property or it's horrendously overvalued and ripe for a crash. This week, we look at the data behind the claims that UK property is unaffordable – and show how easy it is to cherry-pick one measure to support an agenda. We look at affordability through the lens of: Actual house prices (and see the shocking impact of inflation over the long-term) Prices after adjusting for inflation, to identify the specific extent of house price inflation The price of houses as a multiple of earnings, and whether this is historically high The ongoing affordability of housing, looking at the monthly cost of a mortgage as a percentage of income There are some fascinating stats – as well as some really important insights into how affordability varies across regions, and where value might be found. See omnystudio.com/listener for privacy information.

Transcript

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0:00.0	Rob B here back with Rob D for the Property Podcast it's episode 181 and this week we're looking at
0:06.6	is UK Property Unaffordable? Yeah, I'm really looking forward to getting into this. I love topics like this because you see so many claims made all over the place about what
0:25.5	property is doing, what it means, and often these points are wheeled out to support certain
0:31.1	agendas, what we're going to do today is actually get into the data
0:33.8	and look at different ways of slicing it to get to the answer to this question.
0:39.0	By the end of this episode, we will have answered the question, amazingly.
0:41.9	Is UK property unaffordable? Well, we will find out.
0:45.6	So I think it's going to be a really interesting episode. We'll get into it very shortly.
0:50.7	But first Rob, if you are interested in property property we've got a few places where you
0:54.1	might want to be hanging out tonight we have it's the Property Hub meetups hoora they're
0:58.2	free to go to so get your ticket they're all over the place including overseas as well. So go to Property Hub.
1:05.6	Net. all over the place so we're about to be close to somewhere near where you live unless you're on a remote
1:14.8	island somewhere but if you're anywhere on mainland UK we've probably got a meet up near you and I am staying
1:21.6	near me because I'll be at the Kings Cross meet up again again.
1:25.0	But I have two new starters at the R&P office that day and the Kings Cross meet-up is over the road so I'll be taking
1:35.9	them to experience their first ever meet-up which should be great say hi to them be
1:40.4	nice to them which I know you all will be when you meet them so I will go to the Kings
1:45.2	Cross meet up however just to stop me going again if I go to the Kings Cross meetup again this year
1:50.8	2016 I will buy everybody drinks all night which will definitely stop
1:55.4	me going now so there you go I've said that publicly so I can no longer go to Kings Cross
1:59.7	Meetup after tonight again this year there we go that'll stop me. I was worried we're
2:04.0	going to have to get security on the door to keep you out but that promise will do
	...

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