{"id":1444,"date":"2015-11-04T16:39:11","date_gmt":"2015-11-04T16:39:11","guid":{"rendered":"http:\/\/poseidon-gp.com\/property\/?p=1444"},"modified":"2015-11-04T16:39:11","modified_gmt":"2015-11-04T16:39:11","slug":"london-property-market-approaching-bubble","status":"publish","type":"post","link":"https:\/\/poseidon-gp.com\/property\/london-property-market-approaching-bubble\/","title":{"rendered":"London property market ‘approaching bubble’"},"content":{"rendered":"

Another new analysis of the UK property<\/a> market has concluded that London prices<\/a> are entering a bubble and could be set for a crash.<\/p>\n

According to Lancaster University’s UK Housing Market Observatory report, London<\/a>prices are ‘very close to entering an exuberant phase’ – in other words, a bubble<\/a>.<\/p>\n

According to the report, the average London home now costs \u00a3443,400 – up 83% on the first quarter of 2009 and 11% more than this time last year. Some of the biggest growth was in suburban areas where price rises have in the last tended to lag behind.<\/p>\n

If London prices carry on rising at this sort of rate – 2.75 per cent every three months – the researchers say that a bubble is likely to hit in early 2017.<\/p>\n

And, they warn, “Historical evidence suggests that phases of exuberant house prices are often followed by a sudden crash, leaving home buyers with large mortgages<\/a> and negative equity.”<\/p>\n

Things look more stable for the time being in the rest of the country, despite the fact that prices are now higher than in 2007 – the peak before the last house price crash. There’s still no sign of bubble-type behaviour outside the capital, the report’s authors say.<\/p>\n

However, this could change, they warn.<\/p>\n

“There is evidence that London is leading the UK national housing market – the so-called ripple effect – and there is therefore a risk of bubble-type behaviour spreading to surrounding regions, and from there to the rest of the UK,” they write.<\/p>\n

“Such concerns are supported by the indicators of the London outer metropolitan area, which have been increasing over the past year.”<\/p>\n

The Housing Market Observatory report is to be published four times a year, and is based on a calculation of real house prices against real personal disposal income<\/a>.<\/p>\n

And this first report echoes the findings of research<\/a> published by UBS last week, which also cited London’s explosive growth. UBS rates London ‘by far’ the most overvalued market in Europe, and similarly predicts a bubble followed by a crash, some time in the next three years.<\/p>\n

<\/div>\n","protected":false},"excerpt":{"rendered":"

Another new analysis of the UK property market has concluded that London prices are entering a bubble and could be set for a crash. According to Lancaster University’s UK Housing Market Observatory report, Londonprices are ‘very close to entering an exuberant phase’ – in other words, a bubble. According to the report, the average London […]<\/p>\n","protected":false},"author":9,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3,1],"tags":[],"class_list":["post-1444","post","type-post","status-publish","format-standard","hentry","category-news","category-uncategorized"],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p9PjAq-ni","_links":{"self":[{"href":"https:\/\/poseidon-gp.com\/property\/wp-json\/wp\/v2\/posts\/1444","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/poseidon-gp.com\/property\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/poseidon-gp.com\/property\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/poseidon-gp.com\/property\/wp-json\/wp\/v2\/users\/9"}],"replies":[{"embeddable":true,"href":"https:\/\/poseidon-gp.com\/property\/wp-json\/wp\/v2\/comments?post=1444"}],"version-history":[{"count":0,"href":"https:\/\/poseidon-gp.com\/property\/wp-json\/wp\/v2\/posts\/1444\/revisions"}],"wp:attachment":[{"href":"https:\/\/poseidon-gp.com\/property\/wp-json\/wp\/v2\/media?parent=1444"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/poseidon-gp.com\/property\/wp-json\/wp\/v2\/categories?post=1444"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/poseidon-gp.com\/property\/wp-json\/wp\/v2\/tags?post=1444"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}