The hosts dive into their bold property predictions for 2025, assessing house prices and rental dynamics in various cities. They unpack potential interest rate changes while reflecting on the historic context. The discussion doesn't stop there, as they explore ambitious FTSE 100 and Bitcoin forecasts with market influences and AI predictions in mind. To lighten things up, they even toss in some spirited chat about the Premier League season ahead. Plus, goal-setting tactics for the new year keep the motivation high!
39:46
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Quick takeaways
The hosts predict a positive trend in house prices for 2025, estimating growth between 2% to 5% across various forecasts.
Anticipating modest interest rate cuts, the hosts foresee a range of 4% to 4.5% by the end of the year.
Deep dives
House Price Predictions
House price forecasts for the year show a more optimistic trend compared to the previous year's negative outlook. Various organizations predict growth, with estimates ranging from 2% to 4% by sources like Savills and Hamptons. The discussion highlights that despite this positive sentiment, the hosts express concern about their own predictions aligning too closely with those of the experts, having performed better than them in the past. Ultimately, one host predicts a growth range of 4% to 5%, positioning himself as an outlier among the forecasts.
Choosing Cities for Capital Growth
Identifying cities for capital growth has become a significant part of the hosts' predictions, especially given their previous performance in this category. This year’s selections include familiar names like Manchester, Birmingham, and Sheffield, with the latter showing promise based on its affordability. Interestingly, Newcastle is included as a wild card, hoping to leverage its low prices and rising rents for better growth. Both hosts agree on Manchester and Birmingham, reinforcing their belief in these cities as strong investment options.
Rental Market Insights
In the previous year, the rental market experienced significant growth, with average private rents in the UK increasing by 9.1%. For the upcoming year, predictions indicate a potential slowdown, with estimates suggesting an increase in rental prices around 4%. The hosts acknowledge the impact of supply challenges on the rental market and anticipate that demand will continue to outpace supply, particularly in areas affected by government regulations. As a result, one host adopts a conservative approach while the other is slightly more optimistic regarding future rental growth.
Interest Rates and Broader Market Predictions
Interest rates are a central theme in this year's predictions, with expectations of modest reductions throughout the year. One host predicts two base rate cuts, bringing rates down to approximately 4.25%, while the other suggests a range of 4% to 4.5%. Additionally, the conversation touches on predictions for the FTSE 100 and Bitcoin, showcasing a mix of bullish and bearish sentiments. Despite varying opinions, both hosts aim to provide balanced insights on the potential market trajectory, ensuring they maintain an engaging dialogue around uncertainties.
It’s that time of year again - Rob & Rob are back with their 2025 property predictions! Drawing on many years of experience and knowledge from running a £100m property business, they’re putting their reputations on the line once again. Will they go big or play it safe? Press play to find out!