TPP597: How often do property prices double? (Surprising data)
Aug 22, 2024
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The podcast tackles the myth that property prices double every decade, revealing surprising truths backed by data. It discusses the impact of recent political developments on the housing market, like proposed rent controls. A survey highlights varying public sentiments about property prices post-election, particularly in London and Scotland. The hosts emphasize the importance of understanding market cycles for investment success. Finally, they explore the intriguing link between personal health and financial growth, suggesting blood tests as a key to better investment outcomes.
24:44
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Quick takeaways
The recent decision against rent controls in London is viewed as a positive sign for property investors amidst ongoing housing supply concerns.
Historical data shows property prices are taking longer to double than previously expected, indicating a potential shift towards future growth.
Deep dives
Impact of Rent Control Policies
The discussion highlights the recent decision by Angela Rayner to stop a proposal for rent controls in London, emphasizing its significance within the property industry. A spokesperson from the Ministry of Housing made a firm statement indicating there are no plans to delegate rent control powers to local governments. This decision is seen as a positive development, as implementing rent controls is believed to exacerbate the housing crisis rather than provide a solution, given the greater concern of housing supply. The hosts suggest that while politicians can change their position, this current decision signals good news for property investors.
Market Sentiment and Community Insights
The podcast shares the results from a survey conducted among the property investment community, revealing largely optimistic sentiments towards the market. A significant majority of respondents believe property prices will rise in their investment areas, with only a small percentage foreseeing declines. Interestingly, 60% of participants indicated plans to purchase more properties, while only a few are considering selling. This highlights a general optimism, particularly outside London and Scotland, where investor sentiment tends to be more cautious due to current market dynamics.
The Reality of Property Price Doubling
A foundational claim that property prices double every 10 years is scrutinized, revealing that while this is generally true, significant variations exist over different periods. Historical data indicates that the fastest property price doubling occurred in the 1970s due largely to rampant inflation, with modern cycles taking longer and yielding less consistent results. Currently, it has been established that the market is experiencing the longest doubling period on record since 2009, yet prices have not doubled as anticipated. This prolonged cycle suggests that while growth has been slow, it indicates potential future increases as the property market adjusts.
You often hear that property prices double every 10 years, a claim that encourages us to invest in property and buy our own homes - but is it actually true? Rob & Rob have dug deep into the data to investigate this popular belief, and it turns out we’re living in highly unusual times! Tune in to find out what they uncovered…
(0:50) News story of the week
(5:40) Does property really double every 10-years?