How London compares to global house price bubbles

Toronto and Frankfurt are heading for the steepest house price crashes as soaring interest rates threaten to burst the world's biggest housing bubbles, according to an investment bank. In total, nine major world cities are in high risk “bubble” territory, according to UBS's Global Real Estate Bubble Index: Zurich, Munich, Hong Kong, Vancouver and Amsterdam. London prices are not yet in bubble territory, but homes are “overvalued”. Overall, London ranked sixteenth in terms of risk, out of the 25 world cities analysed. London has some protections that other cities do not, however. House prices have climbed by 6% from mid-2021 – below the 10% average across the cities analysed. Rents also rebounded after the pandemic – reducing the risk of a buy-to-let investor sell-off. The bubble risk in London has therefore “slightly decreased” compared to last year, UBS said.  

The Daily Telegraph (17/10/2022)