I’m a property expert: Investment advisor Anna Clare Harper says Labour won’t

Property is a favorite British conversation topic. It feels as if everyone has an opinion on where house prices are heading, the next property hotspot or where homes should – and shouldn’t – be built.

But to get a true sense of what’s driving the market, it is worth listening to the people who live and breathe property day in, day out. 

In this new series, we will be putting an expert through their paces each month.

We want to know their view on all of the hot-button topics mentioned above as well as mortgage rates, buy-to-let and housebuilding.

We will even question them about their very own mortgage, and their best and worst investments to date.  

This month we spoke to Anna Clare Harper, chief executive of sustainable investment adviser GreenResi.

In the hot seat: Anna Clare Harper is a property investment expert and chief executive of sustainable investment adviser GreenResi

Anna hosts The Return property and investment podcast, which has 350,000 downloads, and has published three books on property investing.

She started investing in property on the side of her first office job, and now has her own buy-to-let portfolio. 

At GreenResi, she has advised property investors who own or manage a combined 70,000 homes on sustainability. 

1) What will house prices do over the next 12 months?

Anna Clare Harper replies: House prices will likely rise by an average of 2.5 per cent over the next year, though this will vary by area and in real terms (after inflation), they will be broadly stable. 

Demand is growing due to shrinking household sizes and population growth, while supply remains constrained. 

Unless there’s a surge in forced sales [when people default on their mortgages] most owners will hold out for strong prices, which will keep average house prices high.

2) What will happen to prices over the next decade?

Over the next decade, house prices will probably rise by around 2.5 per cent per year in nominal terms, driven by population growth and shrinking household sizes. 

The Office for National Statistics projects that there will be 1.6 million more households in England in the next 10 years. 

Add to this high net migration, which was 728,000 in the year to June 2024, and the pressure on housing supply will only intensify. 

We’re simply not building fast enough to keep up.

High demand: There will be 1.6 million more households in England in the next 10 years, according to the ONS, and Harper thinks this will sustain property prices

3) What is the biggest threat to house prices? 

Policy and tax. I don’t think we are likely to see taxes and regulations that deliberately negatively impact house prices, because this would be politically unpopular – but policy and taxes do influence prices indirectly. 

For example, the abolition of non-dom status will influence foreign investor demand.

4) Where will mortgage rates be in 12 months? 

Mortgage rates are forecast to fall slightly as inflation cools and base rate expectations edge down. 

I expect the most competitive five-year fixed rates to be around 3.5 per cent this time next year. 

Rates should fall, but they won’t return to ultra-low levels.

5) What mortgage do you have on your home? 

I have a five-year fixed-rate mortgage, which I took out in December 2024. 

I chose five years for peace of mind, especially as the price difference versus shorter-term products was marginal. 

It is a repayment mortgage, partly because that was the only option available from my lender.

6) What is the most urgent property crisis?

Over-regulation. In trying to improve the quality and safety of homes to protect vulnerable people, which is an admirable goal, we’ve put in place rules and regulations which have made it much harder and more expensive for investors and developers to build new, or upgrade existing, homes. 

We need to simplify and align regulation to meet a broader set of needs – including the need to build new and to upgrade existing homes quickly, so that we end up with more affordable, good quality, energy-efficient homes, not fewer. 

7) Will Labour hit its 1.5 million home target? 

No, I don’t think they’ll hit the target. 

It’s politically savvy to aim high and blame an outdated planning system for underperformance. 

Even with reforms, building 1.5 million homes requires much greater investment and capacity – for example, enough skilled tradespeople. 

Having a bold target is useful, as it sets the direction, but I don’t know anybody in the property industry who believes the goal itself is realistic.

No chance: Anna thinks the Government is set to fall short of delivering its promise to build 1.5 million homes by 2029

8) Is buy-to-let a good or bad investment today? 

It depends on your…