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worzel

Five Reasons Why The London Property Bubble Will Burst

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London loves business spam my inbox most days,and usually get deleted, but an article on a housepricecrash caught my eye.

Have a read at the link. Nice to see more and more people entertaining the possibility of a crash

5 reasons why London property bubble may burst

MAY..........WILL

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If prices never correct relative to earnings then it is not a bubble, it's a permanent move higher - a new paradigm.

I have never known on an relatively cheap to construct relatively infinite resource becoming permanently expensive, with the small exception of cigarettes.

Another thing is we have now had a decade of high prices, in a decade time there will nto be many people left who have gained from high prices and millions screaming for affordable housing.

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1390243882[/url]' post='1102452442']

I have never known on an relatively cheap to construct relatively infinite resource becoming permanently expensive, with the small exception of cigarettes.

Dude if you have a infinite supply of available building land inside of zone 3 then by all means throw up some cheap houses...

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Dude if you have a infinite supply of available building land inside of zone 3 then by all means throw up some cheap houses...

I am not talking about inside of Zone 3 particularly, however if the authorities granted permission outside London for homes to be built and those homes were serviced by a good transport system then you would never be in a situation clambering to enter zone 3.

the destruction of the UK's public transport system is really all about supporting London's overpriced deteriorating housing stock.

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If prices never correct relative to earnings then it is not a bubble, it's a permanent move higher - a new paradigm.

Edinburgh had one of those new paradigm do-das till about twelve moths ago.

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Hidden away in rightmove's figures was an 8.3% fall in asking prices in Westminster and a 7% fall in Kensington and Chelsea. Will this crash ripple out - or be reversed in February when people return from their lengthy winter breaks.

http://www.standard.co.uk/business/business-news/london-house-prices-tower-hamlets-beats-kensington-as-it-sets-property-prices-pace-9071273.html

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There is no new London paradigm - all the numbers I've seen (most heat is 900K+ band, most transactions are cash, high levels of overseas investment etc.) indicate London property is being used as an international financial instrument.

However you look at it - the ceiling must be close now - when 40 year old professional couples (surgeons, lawyers etc.) have to live like students to afford an ex-LA flat miles from work - how much future growth in prices can their be.

Let's hope it corrects before we get an exodus out of Britain - I realised the other day that half the people I know have emigrated to US (and a few to Asia). With the standard of living and size of house they now have for the same job - none want to come back.

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