The Telegraph reports that UBS warns “explosive” house price growth since 2013 has fuelled an overvalued market that could see prices crash within three years.
Source: London on course to become next house price bubble fatality, warns UBS – Telegraph
Whilst this article is not surprising, it is still very alarming.
Like always, it will be the highly leveraged young people with massive mortgages who are most at risk.
This warning from UBS is just so much alarmist nonsense because for at least the past 350 years London house prices have risen.
Indeed, we now have such a shortage of bricklayers, carpenters, painters and decorators that the Government’s house building targets cannot be met and construction firms are now importing Portuguese bricklayers on wages of £50,000 GBP a year.
Around London areas of Green Belt land are being bought up by speculators in Hong Kong and by offshore corporations, so even if people move out of London, building will have to occur on very scarce land.
The population of the UK is already 71 million if the illegal immigrants already here, totalling 7 million are factored in. On ONS projections, this will rise to 80 million by 2039 from their incorrect figure of 64.5 million. They admit their projections have been underestimated, so we could be looking at up to 90 million and that assumes no further refugee influxes.
67% of the UK population lives in London and the SouthEast plus East Anglia where I live and that is set to continue.
London’s prices are, of course, governed by flows of criminal, laundered money from drug barons, Russian oligarchs, wealthy Chinese, Singaporeans and others, not local wage rates nor mortgage availability.
Indeed, the Government is clearing Housing Benefit recipients out of London, resettling them in places as far afield as Manchester, and then re-letting the flats at £500GBP a week to wealthy foreigners.