London housing market shows new bubble signs: report

[princess_morbucks]

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.

[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.

[thomaspaine]

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.

[EBD]

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?