29 August, Thursday, 2024
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HomeFinanceThe house price bust will turn to a boom. This stock offers...

The house price bust will turn to a boom. This stock offers the chance to capitalise on it

Questor share tip: a solid financial position and low valuation make this company a highly attractive long-term investment

Years of seemingly unstoppable house price growth lulled many investors into a false sense of security. 

Property, though, is just like any other asset. It experiences “booms” and “busts”. Following 14 consecutive interest rate rises, an extended period of rampant inflation and anaemic ­economic growth that has at times ­teetered on recession, house prices are now finally on a downward trend.

Indeed, they have declined by about 5pc over the past 11 months. Further falls would be wholly unsurprising, since additional interest rate rises may be needed to quell an inflation rate that still stands at more than three times the Bank of England’s 2pc target.

In Questor’s view, falling house prices present a buying opportunity for investors who can look beyond short-term hype. Just as house prices never rise uninterrupted ad infinitum, they are extremely unlikely to perennially decline. 

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