Rents are cheap and I am holding out for house prices to drop, even if its slow.

My partner and I continue to save into a cash ISA; we already have a reasonable amount for a deposit.

I can only see it being lost through high inflation, but think I am already hedged against that. Inflation would very likely cause interest rates to go up which would almost certainly cause a house price crash.

Is this a sound argument and do I have my savings in the right place? I'm not after big returns and certainly don't want to take risks even in the short term.

I'm doing the same thing, first I max out my mini-cash Isa. Which I've just done, now I plan on doing the same with mini-share Isa (cheap tracker), but shared with high-intrest saving accounts. Ie. for every 100 I put in the isa, I put a 100 in a non-tax free high intrest account. It gives me tax-free higher gains potential, with taxed inflation busting safety.