Inflation, Property, and What’s Really Going On

 
Money’s supposed to grow with you, but lately it’s been slipping through everyone’s fingers. Prices keep rising — that’s inflation — and while your bank balance might look the same, what it buys quietly shrinks.

When Inflation Hits
A loaf of bread that costs £1 today might be £1.20 next year. That extra twenty pence isn’t the bread getting better — it’s the pound getting weaker. It’s why cash sitting in the bank loses power over time.

Right now, UK inflation sits around 3.8% — almost double the Bank of England’s 2% target. Even core inflation, which ignores food and fuel, is 3.6%. The biggest price pressures are coming from housing and household services — things you can’t easily skip.

Why Property Seems to Rise
Inflation pushes up the cost of materials and labour. If it’s more expensive to build, existing homes automatically look more valuable. Investors see property as a safer place to park money while cash melts.

Across the UK, house prices are still up 2.8% compared to last year, but growth is slowing. In London, some of the flashier postcodes like Kensington and Chelsea are down around 2.5% — proof the correction has started.

The Correction Has Started
Sellers aren’t walking away with what they once did. Average profits have dropped to their lowest in a decade, and many deals now close far below asking. This isn’t panic — it’s gravity. Prices are coming back to earth.

The Smart Money Waits
When markets tighten, those with cash win. The rich aren’t smarter; they’re patient. They hold liquidity while everyone else scrambles to cover loans.

BlackRock’s shift from Bitcoin to cash isn’t fear — it’s strategy. Cash becomes power when assets drop. Warren Buffett’s sitting on more than $300 billion for the same reason — waiting for value to reappear.

What Comes Next
The UK’s walking into a strange mix — high debt, sticky inflation, and rising taxes. The next few years won’t be about chasing fast gains; they’ll be about holding ground, protecting capital, and having liquidity ready when opportunity shows up.

When everyone’s focused on “what’s next,” the real question stays simple:
Who’ll still have cash when it counts?