Higher interest rates have poured a bucket of cold water over the UK housing market, and while homeowners are still sitting on valuable gains, the pace of sales in previously popular areas is glacially slow by most measures.
Bull points
- Simple, lean business model
- Consistent dividend payer
- Grows ahead of the market
- Potential move to FTSE 250
Bear points
- Risk of regulatory intervention
- Highly interest rate dependent
As rates slowly start to come down again, however, investors might want to play the property market – ideally without taking on the risk of potentially illiquid investments. One answer is to focus on the system’s financial plumbing, namely the advisory network that borrowers use to research and find new mortgages.