House price growth is often discussed as a headline figure but context matters more than the number itself.
Not all growth is created equal.
Key distinctions investors must understand:
• Nominal vs real growth: Inflation adjusted growth tells a very different story from headline price rises.
• Growth driven by scarcity vs speculation: One is sustainable, the other fragile.
• Owner occupier demand vs investor demand: Each behaves differently in rate-sensitive environments.
London, for example, may show modest price growth, yet deliver poor real returns once inflation and holding costs are considered. Meanwhile, regional markets with lower entry prices can outperform in real terms; even with smaller headline gains.
The danger lies in mistaking short-term price movement for long-term value creation.
At DXXV, we separate signal from noise by analysing price growth alongside rental yields, affordability ratios, and employment trends. Sustainable portfolios are built on aligned fundamentals, not optimistic charts.