princess_morbucks
03-02-14, 09:17
http://www.businesstimes.com.sg/breaking-news/world/london-housing-market-shows-new-bubble-signs-report-20140203
[LONDON] London's housing market looks like it is going into bubble territory as property prices soar compared with earnings, according to a report released on Monday.
Houses in the British capital cost an average of 11 times individual Londoners' income, a level last seen before the financial crisis, according to a report by forecasting group ITEM Club, which is sponsored by Ernst & Young.
That compared with a multiple of 6.5 times for Britain as a whole and represented "bubble-like conditions," the report said.
"House prices across most of the country remain well below their pre-crisis peaks and there seems little danger of a bubble developing," Andrew Goodwin, senior economic advisor to the ITEM Club said.
[LONDON] London's housing market looks like it is going into bubble territory as property prices soar compared with earnings, according to a report released on Monday.
Houses in the British capital cost an average of 11 times individual Londoners' income, a level last seen before the financial crisis, according to a report by forecasting group ITEM Club, which is sponsored by Ernst & Young.
That compared with a multiple of 6.5 times for Britain as a whole and represented "bubble-like conditions," the report said.
"House prices across most of the country remain well below their pre-crisis peaks and there seems little danger of a bubble developing," Andrew Goodwin, senior economic advisor to the ITEM Club said.