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The Property Podcast

TPP380: Inflation v Deflation - Part 2

The Property Podcast

Rob Bence & Rob Dix

Education, Business News, Business, News, Investing

4.82K Ratings

🗓️ 25 June 2020

⏱️ 20 minutes

🧾️ Download transcript

Summary

It’s the second episode in our two-part series on the important topic of inflation and deflation. Last week in the first episode Rob & Rob looked at how inflation and deflation impacts you as an investor. So this week they’re going to look at those impacts and see what it means for the future.  It’s another episode where Rob & Rob are being bold, so hold onto your hats for this one. And it turns out, at the time of recording these episodes, The Robs were also predicting the future.  They talk about quantitative easing and said they wouldn’t be surprised if the Bank of England would pump more money into the economy. And low and behold, a recent news story appears ‘Coronavirus: Bank pumps £100bn into UK economy to aid recovery’.  Even before this announcement, the amount of money that has already been pumped into the economy this year alone is more than the financial crash back in 2008! Which means the information from this episode has just become even more important than ever! Last week The Robs demonstrated why inflation is good for investors and how deflation could be damaging. So there’s one question we now need to ask: Are we currently heading towards a period of inflation or deflation? Tune into this jam packed episode to find out.   This week we’ve got a couple of news stories for you, the first coming from The Times and the headline reads ‘tougher times for buy-to-let landlords’. The article is stating that Barclays have said they’re going to stop giving mortgages to landlords who buy through limited companies, which seems crazy since all other big lenders seem to be getting back on track with mortgages.  But that wasn’t the most shocking news to Rob B - he didn’t even realise that Barclays did buy-to-let mortgages, but that’s probably down to the fact that they only offer 65% LTV on an interest only basis. So this probably won’t have too big of an impact on investors.  The second news story is ‘court of appeal sides with landlords in landmark case ruling’ and it’s in line with Section 21, when you want to end a tenancy without your tenants having done anything wrong.  In previous times, to evict a tenant you had to provide them with a gas safety certificate before they moved in. If you didn’t you could never use Section 21. Now, things have changed - find out why by listening to today’s episode.    For Hub Extra this week we’ve got a few resources that Rob & Rob used to help them put together these episodes, and they’re likely to help you in your understanding of everything that’s been covered over the past two weeks.  So, we have:  A lengthy article that isn’t as daunting as it looks A podcast on inflation and deflation Another podcast A YouTube video from the Bank of England on quantitative easing Hopefully these will help you in your continued learning.   We’d love to hear what you think of this week’s Property Podcast over on Facebook, Twitter or Instagram. You might even have a topic you’d like us to cover in the future - if so, pop us a message on social and we’ll see what we can do. Make sure you’ve liked and subscribed to our YouTube channel where we upload new content every week!  If that wasn’t enough, you can also join our friendly property community on the Property Hub forum. See omnystudio.com/listener for privacy information.

Transcript

Click on a timestamp to play from that location

0:00.0

Hey everyone, Rob B here with Rob D and you are listening to the Property Podcast.

0:07.0

Now this is part two of a two-part episode.

0:10.0

Last week we looked at inflation and deflation and how it massively impacts you as a property investor.

0:16.5

Well as it impacts you so much, this week we're going to look at what's going to happen in the

0:20.9

future.

0:21.9

With so much at stake and so many opinions out there

0:25.1

were brave enough to share a few of our own.

0:27.3

Welcome to the Property Podcast where every Thursday morning Property Investors come to be

0:37.4

informed and inspired. In this week's episode, yes, we are going to be giving

0:40.8

you our view on whether we think inflation or

0:43.1

deflation is more likely to play out but more important than that we're going to be

0:46.8

giving you the reasons why so you can come to your own judgment and make sure you stick

0:50.8

around to the end for hub extra because we've got even more resources to share to boost your understanding of this critical area.

0:57.0

So we have a couple of new stories for you this week and the first one comes from the Times and you would think with it being in the Times and it being about Barclays, a big bank and Bitalet lending that this is a huge story.

1:10.0

The headline reads, Tupper rules for Bightlect Landlords.

1:13.4

And it goes on to say that Barclays is to stop giving mortgages

1:16.1

to buy to like landlords who buy properties through their limited companies.

1:19.6

From there it goes on to talk about other tighter measures.

1:22.2

Now this is quite strange because it goes against the tighter measures. Now this is quite strange because it goes

1:24.4

against the current momentum of most other lenders coming back to the market

1:28.9

opening up their products again. And with it being Barclays, this is a headline that could probably spook

1:34.4

some by to let investors. So that's why we want to talk about it. Because the news to me was that Barclays

...

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