House prices grew by 13.6% in the year to August, fuelled by shortage of supply and long-term growth in demand.

This data is the most reliable of all house price indices since it reflects the whole of the market from official government figures. However, it’s also the slowest of the house price indices, and as we have seen, a lot can happen in a few short weeks. 

As a result of what has happened since in terms of interest rates and confidence, going forward, the pace of house price growth is likely to slow. This will be driven in particular by interest rate rises, affecting the circa two million property owners on, or soon to be on, variable or standard rates on their mortgages. However, the largest tenure of housing in the UK is owner-occupied homes owned outright, meaning interest rate rises cause no pressure to sell. That said, the cost-of-living crisis affects us all, and constraints purchasing power for homeowners and private investors alike. 

There is much talk of a house price crash. If the past is anything to go by, a correction in the pace of growth in the short to medium term is likely. However, we still have a severe shortage of quality, energy-efficient housing – both for sale and for rent. The fundamentals have not changed: we all still need a roof over our heads.

There is an opportunity for professional investors to step in and re-capitalise the market, upgrade the quality and energy performance of existing housing, and benefit the people and their communities who still need a place to call home.

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