London Houses Are Now the Second Most Costliest In the World

According to the UBS Global Real Estate Index, (a firm known to track the risk of housing bubbles in global financial centres), ever since the 2013, prices of houses in London have increased by twofold each year & has led it to be the second least inexpensive city in the world.

Property rates in cities within UBS’s bubble risk zone, including London, have heighten by 50% since 2011, against the 15% in other financial centres, putting such cities at the bump up menace of a cost amendment. As followed by London, Sydney, Stockholm, Hong Kong, Munich, Amsterdam, San Francisco, Zurich and Paris, Vancouver has topped the index by storm. The study has also showed that the European Cities with the exemption of Milan are overrated.

Over the last four quarters, the sharpest increase in the UBS Global Real Estate Bubble Index in Europe has been measured in Stockholm tracked by London, Munich and Amsterdam. Seeing this price, at the current scenario where the property prices in London has jumped so rapidly, a skilled service-sector worker will be able to buy a 60m2 dwelling by spending his/her 15 years of average earnings. Over the last four quarters the house process in UK capital have boosted by almost 10 years, jumping those in the rest of the UK by more than 7% and placing the London city steadily within the bubble-risk territory. As compared to the 2007 market peak, property prices in London are now 15% higher whereas the actual incomes are shockingly 10% lower. And as per the survey, it’s only Hong Kong demonstrating the shoddier affordability levels.

According to the UBS, the new record level house prices of London are primarily due to the Inflation in UK. Besides, the survey has also unexposed that the prices of high end properties in London are standing still, reflecting an end to the large-scale detonation for opulence properties.

UBS also stated that the downfall in the value of pound following the consequence of the EU referendum could be considered as the entry point for international buyer s in London market, but the expected financial ambiguity, adjoining the abundant supply of high tech developments should put off a rehabilitated luxury boom.

The report also suggested that the easing policy of Bank of England should also endow a support to the existing overrated market in the short term but UBS recommended caution, as the threat of generous price amendment is still highly doable as the demand of investment deteriorates. Though, in the coming seasons, UBS is not expecting any serious recession, it notified that the recession could close down the untenable price growth stimulated by the high liquidity and the limited supply.

Amaya Bell writing this article on behalf of Rentals London - a leading letting agency in London, who helped to find an apartment for rent in London which are quite affordable and may suit your budget.