Property within Capital City of London Found to be Overvalued
The UK housing market has been on an upward trajectory for months and no area has been on fire like property within the capital city of London has been on fire. This flurry of activity of increasing property values and high demand until recently has many experts in and around the housing market thinking this could lead to trouble. The issues facing the near future of the London property market have many bringing up the term “bubble.”
Property prices in the city of London have been on a vertical trajectory for months. Ever since 2013 they have been in double digit growth yearly, with little friction of any kind. Now, the Swiss Bank UBS is cautioning that a bubble could be on the horizon and the city of London could be in for a correction which could be ground shaking.
UBS commented recently on the current climate, saying: “London is by far the most overvalued market in Europe, at risk of a bubble as a result of the explosive price behaviour since 2013.”
UBS continued, saying: "Price-to-income and price-to-rent values have surged to all-time highs even as real earnings have fallen 7pc in London since 2007.”
This correction could lead to effects which could be present for months. This bubble will undoubtedly lead to many different types of buyers investigating the possibility of ever living in the capital city. The UBS report also noted that London is second to only Hong Kong in the list of most overvalued cities around the world.