The Progressive Property Podcast Don't Believe The Headlines
A protip one should remember when online: Be careful of click baits and fake news stories!
In today’s episode the Progressive Property Podcast, Peter dissects and points out how misleading the latest article from a well-known tabloid is for its readers. It was tackling on the ‘fall’ – well, that’s what this tabloid sees – of the property market. For one, their interpretation wasn’t backed with enough evidence for it to be credible. So, listen in to discover from Peter himself how stable the property market is right now according to RICS, the concept of ripple theory, what indices should you look at, and how to stay away from non-credible sources!
KEY TAKEAWAYS
- How true is the Daily Mail’s latest article on the ‘fall’ of the property market?
- The article is entitled “As property sales fall across the UK, are house prices set to take a tumble?” which was published last August 16, 2018.
- It says property market run out of steam. It will lead to a crash. Houses are losing value. Property Market is in a bubble and it will burst soon.
- The whole article is questionable because there weren’t enough sources to support it.
- Ripple Theory. London value goes up. Values near London increase also.
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TRUTH/FACTS from RICS UK Residential Market Survey for July 2018
- the number in the new letting sector is going down
- the number of landlords bringing properties have decreased quite significantly since Section 24 implementation
- +2% increase in rents in over 12 months AND +15% increase is expected in 2023
- Daily Mail forgot to mention that London Price balanced edged from +3% to 4% last July - not big but not an indication of a crash.
- It’s saying the market is STABLE.
- Despite the fact that buyers are scared because if interest rates, the number of buyers increased by 2. very little because the number of properties available hasn’t increased.
- Don’t just read the headline and think it must be through. Find credible sources. Get a hold of RICS monthly residential market survey.
BEST MOMENTS
- "There's been a curious game of cat and mouse with buyers and sellers."
- "What I think is happening here is as often happens, as I said right in the beginning, the Daily Mail – they gotta sell papers, they’re trying to be dramatic…”
- "The RICS is confirming that that [Stamp Duty Land Tax] and Section 24 are beginning to bite in the investment market and in the buy-to-let market overall."
- "If you're thinking: is it the time to be in property? Maybe that's suggesting that now is the time to be in property."
- "Do your own interpretation. Don't let the Daily Mail or the press or anybody else interpret the data for you."
VALUABLE RESOURCES
ABOUT THE HOST
Peter Jones is a Chartered Surveyor, an author and a serial buy-to-let property investor. He has been involved in property for over 35 years and now owns 78 letting units. He is still actively involved in buying and renovating a property, and regularly flips properties for profit. Peter has written a number of successful property books. The first, An Insider’s Guide to Successful Property Investing, was first published in 2000 and was one, if not the very first, book of its kind which was written for what we’d now call buy-to-let investors.
On the back of its success he was invited to be a guest writer for Property Secrets, and wrote Spanish Property Secrets, French Property Secrets, and Portugal Property Secrets. He has since written a number of other successful titles dealing with UK investing including 63 Common Defects in Investment Property and How to Spot Them, the highly acclaimed The Successful Property Investor’s Strategy Workshop and The Property Renovator’s Workshop, in which Peter describes step-by-step how he built his own property portfolio, starting with virtually none of his own money.
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