House prices in London are rising at an alarming rate, prompting speculation that the capital may be facing another housing bubble. While rising house prices after a recession are usually an encouraging sign of an economy in recovery, the startling speed of their increase in London at present is of concern to many economists: some parts of the city have seen housing prices rise by a startling 18% in just twelve months. 1 Such an increase is clearly unsustainable, and this has led many experts to warn that a housing bubble is beginning to form. And these rising prices are not only confined to the capital. According to figures published by The Royal Institute of Chartered Surveyors (RICS), property prices across Britain reached a six-year high in the first quarter of 2014 2 .
Such rising prices are due in no small part to the elevated level of demand and shortage of property in the country to meet that demand. It is estimated that 15 prospective buyers are vying for every available property, with the ‘open house’ method of selling becoming more commonplace than the traditional private viewing of a property due to the sheer volume of …read more
Source: Property show rooms