A leading housing market analyst says the sales market is increasingly determined by the acts of buy to let and other property investors.
Doug Shepherd, director of the listings platform Home and the author of a monthly market index, says his analysis of the market indicates it works like this.
“Prices rise to the point where rental yields are unattractive. This, in turn, triggers a surge in supply as investors try to cash out. The supply surge puts an end to price growth and buyers become hesitant. Demand falls and prices steadily correct without disastrous consequences.