March 27, 2006

London prices blow housing bubble bigger

by Brian Turner

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Property

Property prices in London have started going up again, pushing overall UK lending figures up on the month.

While it has been predicted already that house prices would see a small revival early 2006, few are optimistic that house prices will do anything but stagnate over the second half of this year.

It’s also worth noting that in the US, where a similar housing bubble has also formed along with the UK’s, there is a significant downturn in house sales.

And the European Commission is warning that the general housing bubble in Europe makes householders across the European Union susceptible to shocks.

A particular pressure on London is that, as the host of the 2012 Olympics, some investors may be pushing money into property there in the hope of reaping profits from the sporting event.

Speculation had already been rife that London house prices would increase due to the increased interest in overseas buyers.

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