London Housing Bubble Crash - When and Why

dktreesea

lawlie wrote: »

There are few things propping up the house prices. One that no one has mentioned yet is the lack of opportunities in other areas of the UK, which has led to people from other cities and other parts of the country seeking opportunities in London, where the employment market is still relatively more promising than somewhere like Newcastle or Belfast. This creates more demand for rental properties which exacerbates the situation. Anyone trying to rent a flat or move flat in London will know that the day a rental property goes on the market, it is pretty much gone by the end of the day, or within the week anyway.

The other point is that any crashing of the bubble may only apply to certain areas of London. In particular, the areas most likely to be affected will be those which have had a massive flux of new builds in the past 5 years. Areas like the boroughs of Westminster and Camden will probably safely stay in the average ridiculous >£1m mark, as most of these properties are purchased by people living in them for medium-long term.

The size of London households is growing, suggesting there was nowhere near enough housing built to accommodate the 100,000 plus growth per year in the population for the last decade. Newcastle and Belfast are also growing, in spite of the apparent lack of work opportunities. Not sure about Belfast but at least Newcastle City Council is doing something about it's expanding population, as in getting behind the building of new homes and refurbishment of existing buildings close to the city centre.

Exile_geordie

Id say south east london is going to have a rather nice property boom in the next 5 years with the advent of the crossrail programme coming to fruition. Nice and cheap large houses there so the influx will start soon