London housing market shows new bubble signs: report

http://www.businesstimes.com.sg/brea...eport-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.

http://www.businessinsider.com/aband...res-row-2014-2

I saw this article in the Guardian.

Seems likely pressure will be brought to stop this kind of "investment" taking place. It's ultimately destructive.

I wonder if the UK govt will copy Singapore cooling measure on tax relief on unnoccupied property. Maybe they already do but are too damn rich to care.

Quote:

---

Originally Posted by EBD

http://www.businessinsider.com/aband...res-row-2014-2

I saw this article in the Guardian.

Seems likely pressure will be brought to stop this kind of "investment" taking place. It's ultimately destructive.

I wonder if the UK govt will copy Singapore cooling measure on tax relief on unnoccupied property. Maybe they already do but are too damn rich to care.

---

These are the blue blood and ultra rich. Probably don't even take a penny of loan.

What can the British government do? Singapore style cooling measures unlikely to stop these buyers who just want to park their money this way.

Quote:

---

Originally Posted by thomaspaine

These are the blue blood and ultra rich. Probably don't even take a penny of loan.

What can the British government do? Singapore style cooling measures unlikely to stop these buyers who just want to park their money this way.

---

No doubt - but buying a property and lot it rot seems pretty horrific.

There is plenty the British govt could do. But do they want to?