The Sunday Times February 6, 2022 7I bought, the lifestyle of easyJet flights,
coffee, gym memberships and Netflix
didn’t exist. I used to walk to work and
take my own sandwich. Interest rates
were 15 per cent; I was earning £11,500 a
year. Interest rates are much lower today.
Ask yourself, could you get a job, live at
home with your parents for three years,
and save every penny for a deposit? I’ve
seen people do it. They make enormous
sacrifices. It’s not impossible.What effects do you think interest rate
rises will have on the market?
Phil: In the short term it only affects
those on variable rates. If they climb
significantly over five years it could
cause big shocks. But even if interest
rates were to double they would still
be at historic lows.Kirstie: Inflation is more
worrying than a rise in
interest rates. You’re going
to be hammered on other
things: fuel costs and
food. Most people are on
such secure deals for a
while that rates would
have to go up quite a bit
to affect the market.The property boom
shows no signs of slowing.
Can prices just keep going up
for ever?
Phil: If a few more people put their house
on the market that would take the heat
out of it. It can’t carry on going up. It’s
deeply unhealthy. I don’t think it’s going
to crash either. We live on an island with ashortage of housing and an
increasing population. Long
term it can only go one way.
But we are in an uncertain
position at the moment. I
am concerned that we
feel a bit too chipper
about the economy. The
Treasury has to pay
everything back. We
haven’t felt the pain yet.Kirstie: I saw a statistic the
other day that the average age a
woman has her first child is now over 30.
That is staggering. We are totally changing
society as we know it. And a lot of it is to
do with high housing prices. People are
having fewer kids. We’re going to be living
in incredibly expensive houses with noWe d o n’ t
know what
the effects
of the
pandemic on
the economy
will be. We
are starting
to feel the
pinch now
and are
already a bit
scared”“ I think we
have passed
peak
countryside.
I think cities
will do well
in 2022:
London,
Manchester,
Liverpool”“ It can
be really
invigorating
to move
somewhere
new. If more
people did it,
it would free
up a lot of
bedrooms in
the country”PHIL
one to look after us. That’s where it will
end. We won’t need all this space. The
prices will come down because people
won’t make the next step on the ladder for
the bigger properties. I don’t know when
that will happen.Do you think the exodus to the
countryside will continue?
Phil: I think we have passed peak
countryside. I think cities will do well in
2022: London, Manchester, Liverpool.
The flat market is likely to improve as
people move back, if the situation with
the cladding debacle improves. All the
things that cities are brilliant for —
restaurants, clubs, theatres — are up
and running.Kirstie: I think it has been insane. I see it
all the time. “Oh, we’re going to move to
the countryside”, usually when the
children are 11 and 13. And then suddenly
you’re the taxi of mum and dad. If you
want to move to the country, do it when
they are tiny and you don’t have to ferry
them around. Phil’s wife got a repetitive
strain injury when they moved to the
country because she was spending so
much time in the car.Should you buy a leasehold flat?
Phil: When it’s well set up it’s no problem.
It’s for a solicitor to advise whether it is a
good lease and management company.Kirstie: You can get them cheaply at
the moment. A lot of things are
compromised. Someone offered me a
flat the other day for a ridiculous price.
It was because mortgage companies
wouldn’t lend on it so it was only open
to cash buyers. Why? It was a certain
type of staircase mortgage companies
don’t like. It was ridiculous. The mess
has to be sorted out. Michael Gove
[the housing secretary] has to get the
insurance companies and mortgage
companies in and bang their heads
together. It’s not just about the
developers. The idea that someone
suddenly can’t get a mortgage on a flat
with a wooden balcony is absurd.Any advice for downsizers, or baby
boomers who stay in their big houses?
Phil: Loads of people could or should
move. But it’s hard to leave behind
memories. And they have no incentive to
downsize. The powers that be need to
come up with a financial incentive. I’d say
don’t leave it too late. The older you are,
the more stressful it becomes. It can be
really invigorating to move somewhere
new. If more people did it, it would free
up a lot of bedrooms in the country.Kirstie: We have to incentivise people
to downsize. My father is 82. He had a
four-bedroom house in London that he
didn’t live in that much. I wanted him to
buy a two-bedroom flat near me. But the
stamp duty was ridiculous and he said,
“At this stage in my life I’m not paying
that stamp duty.” I say if you’re over 65
the stamp duty should be paid by your
estate. We must enable people to defer
stamp duty or pay it on a sliding scale
of age. Rishi Sunak should look into
that tomorrow.Love It or List It is on Wednesday nights on
Channel 4. For Phil’s expert property
advice, tips and services, see MoveiQ.co.ukIE UNFILTERED