London at real risk of housing bubble

7th February 2014

The EY ITEM Club has warned that the influx of super-wealthy buyers has created bubble-like conditions in the London property market.

Andrew Goodwin, the ITEM Club's senior economic adviser, said: "House prices across most of the country remain well below their pre-crisis peaks and there seems little danger of a bubble developing. But London, which is suffering from a combination of strong demand and a lack of supply, is increasingly giving us cause for concern." EY's head of real estate, Dean Hodcroft, added that London is now so popular with the super-rich that it would be hard for policymakers to intervene and cool the market.

Source:   Financial Times