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What is inflation going to do to my homes value?

I keep reading about how inflation is increasing at the moment. What does inflation mean for the value of the property?

Asked on Jul 11 2016, Home Finance in London | Report content

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  • It depends on the difference between property price inflation and general inflation. If property prices rise faster than general inflation (of prices and wages) theIf the property price increases is faster than the rate of inflation then in principle you n if you don't own property then it becomes harder to afford If you own property you may be gaining value, but it will cost more to move home unless you can downsize.

    Answered on Jul 12 2016, Report content
  • Hello there, Housing is usually a safe bet when inflation is increasing, as inflation will ultimately push up your house price. Property inflation is a bigger issue for renters however, and today the costs of being a tenant are almost 9 times higher than the rate of inflation. If you're a landlord though, then it can work in your favour, thanks to higher rents. You can get more information on inflation and its effect on rent prices in the article below. Many thanks, Dan

    Web reference:

    Answered on Jul 12 2016, Report content
  • Normal inflation doesn’t directly affect house prices which are a law unto themselves and might go down when there is high inflation or up when it’s low! The main link is that as inflation moves up, interest rates tend to increase and down, they decrease. This will affect anyone on a variable rate mortgage and may encourage/discourage people to buy. - Jeff

    Answered on Aug 9 2016, Report content

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